House the market? Scherb Homes Group - June 2024
Hello, Scherb Homes Family!
We hope you all are enjoying the beautiful summer days as much as we are. We’ve had a lot of exciting things happening lately! Clover just celebrated her 5th birthday, and we had a wonderful Mother’s and fathers Day, celebrating all the incredible moms and dads out there. With the school year wrapped up, we’re looking forward to some fun summer trips, including a visit to Brooksville, Maine.
Here’s a quick overview of what’s happening in the South Bay real estate market:
Key Takeaways:
1. Inventory Dynamics: Inventory levels are fluctuating, with some cities experiencing increased listings while others remain low.
2. Price Trends: Prices remain strong, but growth is slowing in some areas as buyers navigate higher interest rates.
3. Buyer and Seller Strategies: It’s a strategic time for both buyers and sellers to act, depending on their specific market dynamics.
Now, let’s dive into the details for each city in the South Bay, listed from highest median price to lower:
Rolling Hills
• Median Price/Sq FT: $1,415
• # of Homes: 12
• Median List Price: $5,745,000
• Average Days on Market: 39
• Price Reductions: 33%
• 1-Year Market Forecast: 6.9% increase
Cliff’s Notes: Price per square foot is at a near all-time high. Inventory is low, and median prices are slightly lower. The average days on market have come down substantially. Forecast points to higher prices throughout the rest of the year, nearly 7%.
Manhattan Beach
• Median Price/Sq FT: $1,498
• # of Homes: 89
• Median List Price: $4,150,000
• Average Days on Market: 37
• Price Reductions: 45%
• 1-Year Market Forecast: 2.6% increase
Cliff’s Notes: Inventory is the highest we’ve seen in 1.5 years, with nearly half of all homes on the market seeing price reductions. It’s a great time to find a home at an improved price.
Hermosa Beach
• Median Price/Sq FT: $1,510
• # of Homes: 32
• Median List Price: $3,147,500
• Average Days on Market: 38
• Price Reductions: 35%
• 1-Year Market Forecast: 2.6% increase
Cliff’s Notes: Price per square foot is stable over the past six months. Inventory is stable but low. Days on market is lower than the past six months’ average as the market bubbles up with new inventory.
Palos Verdes Estates - Scherb Homes Group - Just listed and now in escrow!
• Median Price/Sq FT: $1,218
• # of Homes: 45
• Median List Price: $3,750,000
• Average Days on Market: 43
• Price Reductions: 25%
• 1-Year Market Forecast: 6.9% increase
Cliff’s Notes: There are more homes on the market, but it’s usual for this time of year. Homes are taking slightly longer to sell since last month. The market forecast is still for a robust growth near 7%.
Rolling Hills Estates
• Median Price/Sq FT: $927
• # of Homes: 14
• Median List Price: $2,217,500
• Average Days on Market: 16
• Price Reductions: 29%
• 1-Year Market Forecast: 10% increase
Cliff’s Notes: Very few homes on the market. Buyers shouldn’t expect major price reductions. The median days on market are a blistering 16 days. Sellers can sell quickly and generally for market price on command.
Rancho Palos Verdes
• Median Price/Sq FT: $862
• # of Homes: 95
• Median List Price: $2,099,000
• Average Days on Market: 30
• Price Reductions: 34%
• 1-Year Market Forecast: 9.5% increase
Cliff’s Notes: Rancho Palos Verdes has the most inventory on the “hill.” This might indicate a softening in the near future. Buyers may find a new opportunity to get a home at a discount.
Hollywood Riviera
• Median Price/Sq FT: $1,053
• # of Homes: 7
• Median List Price: $2,500,000
• Average Days on Market: 30
• Price Reductions: 22%
• 1-Year Market Forecast: 6.9% increase
Cliff’s Notes: Limited inventory. Buyers should be ready to act fast if they find what they want. Sellers are still in command, though the market is not as competitive as before.
Redondo Beach
• Median Price/Sq FT: $857
• # of Homes: 88
• Median List Price: $1,698,750
• Average Days on Market: 37
• Price Reductions: 22%
• 1-Year Market Forecast: 9.1% increase
Cliff’s Notes: Inventory is increasing. The median days on market is increasing from last month’s check. The overall market forecast is a strong 9% price increase over the next 12 months.
Torrance
• Median Price/Sq FT: $665
• # of Homes: 96
• Median List Price: $991,500
• Average Days on Market: 11
• Price Reductions: 35%
• 1-Year Market Forecast: 9.1% increase
Cliff’s Notes: Inventory is picking up. The median list price is down a bit, but homes are selling very fast (under 11 days). Buyers should be ready to act quickly.
San Pedro
• Median Price/Sq FT: $598
• # of Homes: 77
• Median List Price: $848,000
• Average Days on Market: 28
• Price Reductions: 31%
• 1-Year Market Forecast: 4.6% increase
Cliff’s Notes: San Pedro is at an all-time high in terms of price per square foot. The median list price is down the most over the past 10 months. The days on market are normal, with steady growth in price appreciation year over year.
South Bay Market Summary
• Median Sold Price: $1,717,017
• Cost Difference in Past 12 Months: -$839
• % Change in Sale Price from a Year Ago: 0.00%
• Number of Homes for Sale: -2.80% from last month
• Number of Homes Sold This Month: -3% from last month
• Months of Inventory (MOI): 2.6
• % of Homes Under Asking: 46%
• % of Homes At Asking: 15%
• % of Homes Sold Over Asking: 40%
• AVG Days on Market This Year: 30
• Sold < 30 Days: 73%
• Sold in 30-90 Days: 17%
• Sale Time > 90 Days: 10%
• Interest Rate (30yr fixed): 6.59%
• 10yr Treasury: 4.39%
• Spread Between Interest Rates vs. 10yr Treasury: 2.20% (historical average is 1.7%)
Cliff’s Notes on the Market: Higher interest rates mean less competition on average for most homes, making it a good time for buyers to find a home. Sellers are still in a strong position to sell and can get top dollar, but the rise in home prices may slow down.
If you are considering selling your home or buying in the next several months, reach out to us for a detailed home selling report or to learn about current options coming to the market. We’re here to help you navigate this dynamic market!Warm regards,
Cliff Scherb - The Scherb Homes Group
