House the market? Scherb Homes Group - September 2024
Hello Scherb Homes Family!
I hope this report finds you well and enjoying the start of fall. It’s been a great summer for the Scherb family, filled with beach days, swimming, and watching our daughter Clover start kindergarten. Time seems to be flying by, but the sunsets remain as stunning as ever here in California. We’ve also been busy helping clients navigate the South Bay real estate market, which has shown some interesting shifts recently—especially as we head into the fall.
Whether you’re a buyer watching interest rates closely or a seller considering timing, we’ve got key insights to help you navigate the market in the months ahead.
Key Market Takeaways:
1. Buyer Advantage with Rate Drops: Buyers gain 10% more purchasing power with every 1% drop in interest rates. This is driving renewed interest in the market.
2. Price Adjustments Across Cities: Many homes have seen price reductions, with some cities experiencing up to 50% of listings lowering prices.
3. Homes Taking Longer to Sell: Homes are taking longer to sell across the South Bay, with average days on market rising—beneficial for buyers looking to negotiate better deals.
South Bay Real Estate Overview
• Median Sold Price (South Bay): $1,757,833
• Cost Difference (Past 12 months): $58,433
• % Change in Sale Price (Y/Y): +3.40%
• Number of Homes for Sale: -2.80% from last month
• Number of Homes Sold: -11% from last month
• Months of Inventory (MOI): 3.4 months
• Under Asking: 40%
• At Asking: 23%
• Over Asking: 37%
• Average Days on Market: 26 days this year vs 24 last year
• Interest Rate (30yr fixed): 5.82%
• 10yr Treasury: 3.72%
• Spread Between Interest Rates vs. 10yr Treasury: 2.10% (historical average: 1.7%)
Rolling Hills
• Median Price/Sq Ft: $1,376
• # of Homes: 13
• Median List Price: $4,995,000
• Average Days on Market: 80
• Price Reductions: 55%
• 1-Year Market Forecast: +4.30%
Cliff’s Notes: Rolling Hills has softened slightly, with more inventory and price reductions than last year. Sellers should be patient, as homes are taking longer to sell—averaging 1-2 months. Growth in price is forecast to remain flat.
Manhattan Beach
• Median Price/Sq Ft: $1,467
• # of Homes: 78
• Median List Price: $3,999,500
• Average Days on Market: 53
• Price Reductions: 32%
• 1-Year Market Forecast: +0.40%
Cliff’s Notes: Manhattan Beach has seen a slight price drop per square foot, though the number of homes on the market has increased. Buyers are finding more deals, and sellers need to be mindful of realistic pricing.
Hermosa Beach
• Median Price/Sq Ft: $1,539
• # of Homes: 36
• Median List Price: $2,750,000
• Average Days on Market: 48
• Price Reductions: 37%
• 1-Year Market Forecast: +0.40%
Cliff’s Notes: Inventory has increased since early 2024, and while median prices have stayed stable, homes are now taking 70 days to sell. Over 50% of homes have seen price reductions.
Palos Verdes Estates
• Median Price/Sq Ft: $1,139
• # of Homes: 42
• Median List Price: $3,624,500
• Average Days on Market: 71
• Price Reductions: 57%
• 1-Year Market Forecast: +4.30%
Cliff’s Notes: Inventory is slowly rising, but prices remain high. Sellers still hold the upper hand in this prestigious area, but buyers should act fast if they find something they like.
Rolling Hills Estates
• Median Price/Sq Ft: $927
• # of Homes: 20
• Median List Price: $2,049,000
• Average Days on Market: 45
• Price Reductions: 15%
• 1-Year Market Forecast: +6%
Cliff’s Notes: A great opportunity for buyers here—over 50% of homes have seen price decreases, and the price per square foot is as low as last year.
Rancho Palos Verdes
• Median Price/Sq Ft: $804
• # of Homes: 113
• Median List Price: $1,899,000
• Average Days on Market: 57
• Price Reductions: 53%
• 1-Year Market Forecast: +5.80%
Cliff’s Notes: Prices have gone up in Rancho Palos Verdes, but homes are taking longer to sell. Buyers should move quickly on desirable properties.
Redondo Beach
• Median Price/Sq Ft: $1,142
• # of Homes: 126
• Median List Price: $1,595,000
• Average Days on Market: 42
• Price Reductions: 33%
• 1-Year Market Forecast: +7.60%
Cliff’s Notes: Inventory in Redondo Beach has nearly doubled from last year, offering more options for buyers. It’s a great time to enter the market, but sellers should be mindful of increased competition.
Torrance
• Median Price/Sq Ft: $847
• # of Homes: 118
• Median List Price: $999,495
• Average Days on Market: 32
• Price Reductions: 34%
• 1-Year Market Forecast: +7.60%
Cliff’s Notes: Torrance is experiencing higher inventory and lower price per square foot compared to last year. Buyers have more options, and sellers may want to act before more homes flood the market.
San Pedro
• Median Price/Sq Ft: $564
• # of Homes: 103
• Median List Price: $900,000
• Average Days on Market: 34
• Price Reductions: 37%
• 1-Year Market Forecast: +2.80%
Cliff’s Notes: Buyers in San Pedro are price-sensitive, but homes are still selling quickly. With inventory doubling since spring, it’s a good time for buyers to act before rates increase.
Closing Thoughts
If you’re thinking about buying or selling in the next few months, now is the time to get a detailed home selling report or contact me for current market opportunities. With interest rates in flux and inventory rising, it’s important to stay ahead of the market trends.
Reach out to me anytime for a friendly chat or real estate advice—I’m here to help!
Cliff
