House the market? Scherb Homes Group - May 2024

Scherb Homes SELLER AND Buyer's Market Report

Hello Scherb Homes Family,

We hope this report finds you well! We've had a busy few months here at Scherb Homes. Cliff’s family had a wonderful visit from back east, with Clover's cousins enjoying beach days, hikes, and a lovely lunch at Terranea. We cherish these family moments and aim to gather every few months despite the distance.

Here's a high-level overview of the current South Bay real estate market:

  • Market Sentiment: The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased to 71.9, showing increased pessimism about mortgage rates.

  • Sales Dynamics: More inventory and activity in Q2 compared to Q1. Homes priced correctly are selling quickly.

  • Interest Rates: With the 30-year fixed rate at 6.78%, buyers are cautious, but sellers remain in a strong position.

Below is a detailed look at each specific market area in the South Bay, listed from the highest to the lowest median price:

Rolling Hills

  • Median Price/Sq FT: $1,250

  • Number of Homes: 12

  • Median List Price: $6,490,000

  • Average Days on Market: 98

  • Homes with Price Reductions: 22%

  • 1-Year Market Forecast: 6.80%

Cliff’s Notes: With few homes available, Rolling Hills has seen an increase in prices. Buyers should be prepared for longer market times and limited options. Sellers can capitalize on the high demand and low inventory.

Manhattan Beach

  • Median Price/Sq FT: $1,591

  • Number of Homes: 77

  • Median List Price: $4,295,000

  • Average Days on Market: 59

  • Homes with Price Reductions: 42%

  • 1-Year Market Forecast: 1.90%

Cliff’s Notes: Prices per square foot are high, but homes are taking longer to sell. Buyers have a good chance of negotiating lower prices. Sellers should adjust their expectations for market times.

Hermosa Beach

  • Median Price/Sq FT: $1,490

  • Number of Homes: 28

  • Median List Price: $2,849,450

  • Average Days on Market: 40

  • Homes with Price Reductions: 35%

  • 1-Year Market Forecast: 1.90%

Cliff’s Notes: Hermosa Beach remains competitive. Buyers should act quickly as homes sell fast, but price reductions are common, offering good negotiation opportunities.

Palos Verdes Estates

  • Median Price/Sq FT: $1,185

  • Number of Homes: 40

  • Median List Price: $3,741,500

  • Average Days on Market: 31

  • Homes with Price Reductions: 21%

  • 1-Year Market Forecast: 6.80%

Cliff’s Notes: This market is hot with quick sales and few price reductions. Buyers need to be decisive, while sellers can expect robust activity.

Rolling Hills Estates

  • Median Price/Sq FT: $715

  • Number of Homes: 14

  • Median List Price: $1,474,000

  • Average Days on Market: 29

  • Homes with Price Reductions: 0%

  • 1-Year Market Forecast: 9%

Cliff’s Notes: Prices are expected to rise significantly. Buyers should move quickly, and sellers are well-positioned to command high prices.

Rancho Palos Verdes

  • Median Price/Sq FT: $883

  • Number of Homes: 78

  • Median List Price: $2,035,000

  • Average Days on Market: 21

  • Homes with Price Reductions: 26%

  • 1-Year Market Forecast: 9.40%

Cliff’s Notes: This market is heating up with quick sales and significant price increases expected. Both buyers and sellers need to be agile.

Hollywood Riviera

  • Median Price/Sq FT: $922

  • Number of Homes: 9

  • Median List Price: $2,550,000

  • Average Days on Market: 52

  • Homes with Price Reductions: 50%

  • 1-Year Market Forecast: 5.40%

Cliff’s Notes: With limited inventory, buyers have fewer choices, but the chance for price negotiations is high. Sellers should be prepared for longer market times.

Redondo Beach

  • Median Price/Sq FT: $824

  • Number of Homes: 78

  • Median List Price: $1,664,500

  • Average Days on Market: 25

  • Homes with Price Reductions: 50%

  • 1-Year Market Forecast: 8.30%

Cliff’s Notes: The market is strong with quick sales and significant price reductions available. Buyers should move fast, and sellers are in a good position.

Torrance

  • Median Price/Sq FT: $685

  • Number of Homes: 87

  • Median List Price: $1,125,000

  • Average Days on Market: 20

  • Homes with Price Reductions: 34%

  • 1-Year Market Forecast: 8.80%

Cliff’s Notes: Torrance is the standout market with rapid sales and strong price growth. Buyers need to act quickly, and sellers can expect favorable conditions.

San Pedro

  • Median Price/Sq FT: $561

  • Number of Homes: 63

  • Median List Price: $895,000

  • Average Days on Market: 27

  • Homes with Price Reductions: 24%

  • 1-Year Market Forecast: 4.90%

Cliff’s Notes: San Pedro is seeing solid growth with quick sales. Buyers should be ready to move fast, while sellers can take advantage of the rising prices.

Closing Remarks from Cliff:

If you're considering buying or selling a home in the next few months, reach out for a detailed home selling report or to explore current market options. We're here to help you navigate the market and make the best decisions for your real estate needs.

Warm regards,

Cliff Scherb



Hermosa Beach, Palos Verdes Estates, Palos Verdes Peninsula, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates, Torrance, San Pedro, Manhattan Beach, Redondo BeachCliff ScherbMarket Report, Buying your home, Selling your home, 2024