House the market? Scherb Homes Group - November 2024
Hello Scherb Homes Family,
We’re diving into November, and as usual, the South Bay is treating us to beautiful weather. Clover’s soccer season is in full swing, and Halloween was a blast with all the neighborhood festivities. With Thanksgiving around the corner, we’re looking forward to some family time and quality moments with friends. Life’s good, and we’re grateful!
Market Overview:
The South Bay housing market has had an interesting year. While consumer sentiment around home buying is rising, home prices and rates are still high. Buyers and sellers are both navigating a shifting market, with more inventory and price adjustments creating new opportunities. Here are the top takeaways:
1. More Choices for Buyers – Rising inventory levels across the South Bay mean more options for buyers.
2. Longer Listing Times and Price Reductions – Homes are staying on the market longer, with many experiencing price adjustments.
3. Forecasts Show Mixed Growth – Some cities are set for modest growth, while areas like Torrance and Redondo Beach show stronger potential for 2025.
Below, I’ve detailed each city in order of median price, from Rolling Hills to San Pedro.
South Bay Market Summary
The South Bay remains a slight seller’s market, with a median sold price of $1,813,735, reflecting an increase of $137,074 over the past year. Year-over-year, sale prices are up 8.2%. A significant portion (59%) of homes sold below asking price, with 13% selling at asking and 29% above. Homes are averaging 40 days on the market, up from last year’s average, with 58% selling in under 30 days.
Interest rates are holding high, with the 30-year fixed mortgage averaging 6.6%, while the 10-year treasury rate is 4.42%. The spread between the two is 2.18%, above the historical average, indicating continued caution in the market.
City Insights and Forecasts
Rolling Hills
Rolling Hills remains a high-end but slightly slower market. The median price per square foot is $1,261, with homes on the market for an average of 117 days. About half of the listings have seen price reductions, providing opportunities for buyers. The one-year forecast is modest, with anticipated growth of 1.7%.
Manhattan Beach
Manhattan Beach has seen a slight increase in listings, with the median price per square foot at $1,493. The average list price is around $4,350,000, and roughly 37% of homes have had price cuts. Properties spend about 42 days on the market. The forecast indicates a small decline of 1.7% over the next year, giving buyers a bit of an edge.
Hermosa Beach
Hermosa Beach’s market has slowed, with homes averaging 55 days on the market and a median price per square foot of $1,444. About 31% of listings have experienced price reductions. The one-year forecast suggests a minor decrease of 1.7%, making it a good time for buyers to explore options.
Palos Verdes Estates
Palos Verdes Estates has seen a boost in inventory and holds a median price per square foot of $1,156. Homes here typically spend 86 days on the market, with 37% seeing price reductions. The growth forecast is 1.7% over the next year, indicating a stable but modestly appreciating market.
Rolling Hills Estates
Rolling Hills Estates is favorable for buyers, with the median price per square foot at $849. The median list price is approximately $1,567,890, and homes are on the market for an average of 43 days. With 64% of listings seeing price cuts, buyers have negotiating room. The one-year forecast shows 2% growth, suggesting a promising future.
Rancho Palos Verdes
Rancho Palos Verdes is a strong market for buyers, with the median price per square foot at $812 and a median list price of $1,935,000. Homes spend about 48 days on the market, and 38% of listings have price reductions. The forecast shows a 2.3% increase in prices over the next year, making this an attractive area for buyers seeking value.
Hollywood Riviera
Hollywood Riviera remains competitive, with the median price per square foot at $1,010 and homes selling in an average of 34 days. Only 30% of listings have reduced prices, and the one-year forecast suggests growth of 3.3%, showing this area’s continued appeal for buyers and sellers alike.
Redondo Beach
Redondo Beach has seen significant inventory growth. The median price per square foot is $831, and the median list price is $1,599,000. Homes are averaging 44 days on the market, with 30% seeing price cuts. The one-year forecast is robust, with 5.7% anticipated growth, making it a good time for both buyers and long-term investors.
Torrance
Torrance offers more breathing room for buyers, with inventory nearly doubling over the year. The median price per square foot is $732, and homes sell in about 35 days. Approximately 37% of listings have price reductions, favoring buyers. The one-year growth forecast is a healthy 5.7%, a promising sign for both buyers and sellers.
San Pedro
San Pedro, with a median price per square foot at $558, offers a more affordable entry into the South Bay market. Homes have an average list price of $922,000 and typically spend around 55 days on the market. Nearly half (47%) of listings have seen price reductions, presenting favorable conditions for buyers. The one-year forecast is for modest growth of 0.7%, indicating steady but slower appreciation.
In Closing
If you’re thinking about buying or selling in the coming months, I’d be happy to provide a personalized report or discuss your options. We have some exciting new listings hitting the market soon, so reach out if you’re ready to make a move.
All the very best,
Cliff
