House the fall market? Scherb Homes Group Report 2023

Hello Scherb Homes Family!

We hope this report finds you well as we transition into the beautiful season of fall. It's been an eventful time for us at Scherb Homes. We've been hard at work fixing up our own home and making some improvements. As school resumes, we're settling into our weekly routine, saving our weekends for pumpkin picking, hayrides, and Halloween adventures. Fall is indeed our favorite season, and we're cherishing these moments with family and friends.

But let's dive into what you're all here for: the real estate market in our beloved South Bay. Below is a high-level overview of the market with three key takeaways for the entire region:

South Bay Market Overview:

Interest Rates and Inventory: Interest rates have surged above 7%, slowing overall buying and selling activity. Low inventory is driving competition, with 1-3 offers on most homes.

  1. Slight Seller's Advantage: Sellers are in a good position, however, we're seeing signs of a softening market as rates stabilize giving more power back to buyers.

  2. Cost of Waiting: Buyers waiting to buy could find it to be costly as rates may rise again.  Low inventory will continue, so buyers who can find a desirable home now may benefit.  Sellers may want to act sooner than later before the market turns south with current trends.

Now, let's delve into each specific market area;

Rolling Hills:

  • Median Price/Sq FT: $1,374

  • # of Homes: 5

  • Median List Price: $4,925,000

  • Avg. Days on Market: 55

  • Homes with Price Reductions: 67%

  • 1-Year Market Forecast: +2.50%

Cliff's Notes: Recent limited inventory in Rolling Hills makes it challenging to assess, but more price reductions and the highest price per square foot for the year stand out.

Manhattan Beach:

  • Median Price/Sq FT: $1,439

  • # of Homes: 70

  • Median List Price: $4,170,000

  • Avg. Days on Market: 26

  • Homes with Price Reductions: 33%

  • 1-Year Market Forecast: + 2.20%

Cliff's Notes: Higher inventory, the lowest days on market all year, and a lower median list price indicate it's more of buying opportunity.

Hermosa Beach:

  • Median Price/Sq FT: $1,621

  • # of Homes: 24

  • Median List Price: $3,397,000

  • Avg. Days on Market: 81

  • Homes with Price Reductions: 14%

  • 1-Year Market Forecast: +2.00%

Cliff's Notes: Hermosa Beach offers little room for discounts, with low inventory and rising median prices suggesting a strong seller's market.

Palos Verdes Estates:

  • Median Price/Sq FT: $1,052

  • # of Homes: 46

  • Median List Price: $3,474,000

  • Avg. Days on Market: 40

  • Homes with Price Reductions: 33%

  • 1-Year Market Forecast: +2.50%

Cliff's Notes: It's a good time to buy in Palos Verdes Estates, assuming you can find the right home. Inventory has nearly doubled since spring, but days on market remain stable.

Rolling Hills Estates:

  • Median Price/Sq FT: $897

  • # of Homes: 13

  • Median List Price: $1,645,000

  • Avg. Days on Market: 47

  • Homes with Price Reductions: 40%

  • 1-Year Market Forecast: +3.30%

Cliff's Notes: Sellers in Rolling Hills Estates might have missed the peak, with more price reductions and doubled days on market since April.

Rancho Palos Verdes/Rolling Hills Estates:

  • Median Price/Sq FT: $849

  • # of Homes: 63

  • Median List Price: $1,999,000

  • Avg. Days on Market: 40

  • Homes with Price Reductions: 30%

  • 1-Year Market Forecast: +3.0%

Cliff's Notes: RPV homes still command top dollar, but there are more homes on the market, sitting for slightly longer.

Hollywood Riviera:

  • Median Price/Sq FT: $1,000

  • # of Homes: 15

  • Median List Price: $2,100,000

  • Avg. Days on Market: 19

  • Homes with Price Reductions: 25%

  • 1-Year Market Forecast: +2.80%

Cliff's Notes: Homes are selling faster and for more money in Hollywood Riviera. Inventory is scarce, and prices are rising.

Redondo Beach:

  • Median Price/Sq FT: $855

  • # of Homes: 85

  • Median List Price: $1,449,000

  • Avg. Days on Market: 26

  • Homes with Price Reductions: 25%

  • 1-Year Market Forecast: +2.80%

Cliff's Notes: Low days on market but rising inventory. Median list prices are slightly lower than they were in June.

Torrance:

  • Median Price/Sq FT: $639

  • # of Homes: 94

  • Median List Price: $1,014,000

  • Avg. Days on Market: 15

  • Homes with Price Reductions: 18%

  • 1-Year Market Forecast: +3.00%

Cliff's Notes: Torrance is the high-performing market of South Bay in 2023, with rapid sales and rising prices.

San Pedro:

  • Median Price/Sq FT: $551.7

  • # of Homes: 77

  • Median List Price: $899,000

  • Avg. Days on Market: 34

  • Homes with Price Reductions: 28%

  • 1-Year Market Forecast: +2.50%

Cliff's Notes: Act quickly in San Pedro; low days on market. Median list prices are getting closer to Torrance levels.

If you're looking to sell or buy in the coming months, reach out to us for a detailed home selling report or to explore current options coming to the market. We're here to help you navigate this dynamic real estate landscape. Thank you for being a part of our Scherb Home family!

All the very best,

~Cliff

Scherb Homes Group



Hermosa Beach, Palos Verdes Estates, Palos Verdes Peninsula, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Torrance, San Pedro, Manhattan BeachCliff ScherbMarket Report, Buying your home, Selling your home, 2023