Scherb Homes Sellers and Buyers Market Report - January 2024
Greetings, Scherb Home Family!
I hope this report finds you well after the festive season. The Scherb family had a wonderful holiday, surrounded by friends and family, and we're excited for what 2024 has in store. Clover is kicking off soccer in the winter, and Kimberly and I are taking advantage of the SoCal weather with beach days – gotta love living here! We're also planning some short trips to the desert and a getaway to Sedona and St. George, Utah.
Market Overview - Key Takeaways
Shift in Sentiment: According to the National Housing Survey, only 14% of consumers believe it's a good time to buy a home, a new survey low. However, with interest rates falling nearly a full percentage point since last fall, we expect buyer sentiment to improve in 2024.
Motivated Market: The market is transitioning from a slow stalemate to one that is now motivated. Buyers are showing increased activity with falling interest rates, while sellers are more likely to sell for major life events or significant lifestyle changes. We anticipate a modest increase in inventory in Q1 2024.
Price Outlook: Home prices are expected to rise steadily by 3-5% over the year, a more moderate increase compared to recent highs. Competition for homes will intensify, but the market should remain strong.
South Bay Market Overview as of December 2023
Cliff's Notes on Specific Markets
Rolling Hills
Highest price per square foot in the past year.
Median price is at its highest, but nearly half of homes have seen a price reduction.
Modest activity expected in 2024.
Manhattan Beach
Highest price per square foot in the past 12 months.
Homes sitting longer on the market, but only 38% have seen a price decrease.
Modest increase in home prices projected.
Hermosa Beach
Price per square foot remaining low.
Few homes reduced in price, expecting a modest increase in home prices.
Palos Verdes Estates
Very little inventory.
Median list price bottomed out; days on market increased.
Strong market demand with a 4.4% increase in home prices forecasted.
Rolling Hills Estates
Highest one-year forecast (7% increase).
Fewer homes seeing price decreases.
Expecting a strong and desirable market in 2024.
Rancho Palos Verdes
Stable inventory with good buying opportunities in December and January.
6.5% increase in home prices forecasted.
Hollywood Riviera
Home prices came down; average days on market increased.
Modest increase in home prices projected.
Redondo Beach
Market heating up with increasing prices and dwindling inventory.
Buyers should be ready to act quickly; sellers in the driver's seat.
Torrance
Median list price continues to rise.
Fewer homes seeing price decreases.
4.5% increase in home prices forecasted.
San Pedro
Modest one-year forecast of increasing home prices.
Opportunities to buy in the first quarter before potential market heat-up.
Whether you're looking to sell your home or buy in the next few months, reach out for a detailed home selling report or contact us for current options coming to the market. Wishing you all a fantastic 2024!
Best Regards,
~Cliff
