2013 2nd Quarter Market Report Palos Verdes Peninsula and South Bay Los Angeles

2013 2nd Quarter Market Report Palos Verdes Peninsula and South Bay Single Family Homes

The real estate market sales activity for the Palos Verdes Peninsula continued to improve during the 2nd quarter 2013 but has slowed recently, with overall sales volume up about 5% and the inventory of homes for sale down 21% compared to the second quarter 2012 sales, which is equal to a bit more than 2 months of inventory. Pricing has started to increase, and buyers who can get financing are actively looking and aggressively offering where they see a deal. Sellers who are motivated to move are pricing their homes to sell. Buyers are taking advantage of significant discounts and continuing record low interest rates. Buyer demand has led to many homes receiving multiple offers.

PRICE CHANGES:

Properties, on average, on the Palos Verdes Peninsula are selling for approx. 96% of list price. The average price per sq. ft. for Palos Verdes homes sold in the second quarter 2013 of $520 compared to the second quarter 2012, increased approx. 8% overall, but varied city by city. Prices per sq. ft. are down approx. 13% on the Palos Verdes Peninsula from their peak in 2007 of approx. $600 per sq. ft.. Prices in the South Bay, however, have decreased much less than other areas in Southern California due to the relative few number of foreclosures compared to other inland areas.

The following is a chart of the sales price per sq. ft. for homes on the Palos Verdes Peninsula. ( Note: I prefer to analyze average price per sq. ft. trends as the more often quoted “median” sales price is highly dependent on the mix of homes sold between less expensive homes and higher-end homes):

The following is a chart of the number of single family homes for sale, sold, and currently in escrow ( Pended) on the Palos Verdes Peninsula. Sales volume has increased to an average of 64 homes sold per month during the 2nd Quarter, a 5% increase over the 2nd quarter of 2012. There are 74 homes in escrow at the end of the second quarter 2013.

The total inventory of single family homes for sale in the cities listed above is down approx. 27% compared to the prior year, and sales activity is down 1%, and there is less than 2 months of inventory. For most of the last two decades, L.A. County has averaged an 8 month inventory. Homes in the lower end of the price range have also been selling faster than the higher priced homes. Average price per sq. ft. for homes sold in the 2nd quarter 2013 for the cities listed above is up approx. 12% overall compared to the 2nd quarter of 2012.

FINANCING (See our web blog at http://mmegowan.activerain.com/for rate updates):

Interest rates for Conforming Loans ($417,000 and below) are at approx. 4.25%, up about .8% from the end of the first quarter 2013. Rates for 30 year loans between $417,000 and $625,500 (conforming jumbos) are approx. 4.6% up approx. 1% the last 3 months, and 15 year loans are at approx. 3.7%.Conforming loans generally require a 20% down payment (less for FHA or VA loans). Interest rates on Jumbo 30 year fixed rate mortgages (loans in excess of $625,500) have an average rate of approx. 4.7%. All of these rates are still historically very low. The spread in interest rates between conforming loans and jumbo loans has narrowed considerably over the last year or so as more banks are participating in making jumbo loans. All rates above are APR rates as of 7/24//2013, and assume a 20% down payment, no points and a FICO score of at least 740. Rates can vary significantly between lenders.

Second Quarter 2013 Market Analysis for Palos Verdes Peninsula Condos and Townhomes

The average price per sq. ft. for townhomes and condos on the Palos Verdes Peninsula has increased approx.11% compared to the second quarter of last year, and averaged $369 per sq. ft. during the 2nd quarter 2013.

The following is a chart of Palos Verdes Peninsula condos and townhomes for sale and sold over the last year

To check out the various condo and townhome projects on the Palos Verdes Peninsula, see the following link on my website: PV Condos & Townhomes / Townhouses. Each of these project descriptions have an analysis of recent prices paid for sales in each project. You can also see the latest listings for condos and townhomes in Palos Verdes on my website at the following link: MLS Listings – South Bay and PV

For additional detailed market reports for each of the cities on the Palos Verdes Peninsula, see the following link: Market Reports