2014 1st Quarter Market Report PV and South Bay Homes

2014 1st Quarter Market Report Palos Verdes Peninsula and South Bay Single Family Homes

The real estate market sales activity for the Palos Verdes Peninsula slowed down during the 1st quarter 2014 with overall sales volume down about 26% and the inventory of homes for sale up 35% compared to the first quarter 2013 sales, which is equal to about 3 months of inventory. Pricing has been increasing, however, 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 continuing low interest rates ( although interest rates have risen about 1% over the last year).Buyer demand has led to some homes receiving multiple offers.

PRICE CHANGES:

Properties, on average, on the Palos Verdes Peninsula are selling for approx. 94% of list price. The average price per sq. ft. for Palos Verdes homes sold in the first quarter 2014 of $555 compared to the first quarter 2013, increased approx. 17% overall, but varied city by city. Prices per sq. ft. are down approx. 8% 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 averaged 40 homes sold per month during the 1st Quarter 2014, a 26% decrease over the 1st quarter of 2013. There are 66 homes in escrow at the end of the first quarter 2014.

The figures included in the table below are only for the three months in the 1st Quarter :

The total inventory of single family homes for sale in the cities listed above is up approx. 41% compared to the prior year, and sales activity is down 7%, 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 1st quarter 2014 for the cities listed above is up approx. 15% overall compared to the 1st quarter of 2013.

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. 4.4%. Rates for 30 year loans between $417,000 and $625,500 (conforming jumbos) are approx. 4.5% , 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. 4.4%. 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 and are essentially equal as more banks are participating in making jumbo loans. All rates above are APR rates as of 4/24/2014, and assume a 20% down payment, no points and a FICO score of at least 740.Rates can vary significantly between lenders.

2014 First Quarter Palos Verdes Peninsula Condos and Townhomes Real Estate Market Analysis

The average price per sq. ft. for townhomes and condos on the Palos Verdes Peninsula sold during the 1st Quarter of 2014 has increased approx. 5% compared to the first quarter of last year, and averaged $367 per sq. ft. during the 1st quarter 2014.

The inventory of condos and townhomes for sale of 38 units at the end of the 1st quarter of 2014 is a 12% increase from this time last year.The increase in inventory has resulted in an increase to about 4 months inventory of condos and townhomes for sale based upon the average monthly sales over the last quarter of 9 units sold. This is still historically quite low.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 detailed market reports for each of the cities and neighborhoods on the Palos Verdes Peninsula, click on the following link: Market Reports