Third Quarter 2011 Market Analysis for Palos Verdes Peninsula Condos and Townhomes

Third Quarter 2011 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 fallen approx. 7% compared to the third quarter of last year. Prices in a few projects , such as the Palos Verdes Bay Club have fallen more than this. Pricing has improved for condos and townhomes during the third quarter of 2011 after dropping significantly during the prior quarter.

As far as picking up condos in this market for less than construction costs, the average price per sq. ft. paid recently for condos and townhomes in Palos Verdes has been approx. $327 per sq. ft. I would not consider this price to be significantly less than replacement cost including the cost of the land.

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

Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago Sep. 11 Aug. 11 % Change Sep. 11 Sep. 10 % Change Jul. 11 to Sep. 11 Jul. 10 to Sep. 10 % Change For Sale 53 57 -7% 53 73 -27.4% 56 74 -24.3% Sold 9 15 -40% 9 11 -18.2% 13 10 30% Pended 14 10 40% 14 8 75% 13 10 30%

The inventory of condos and townhomes for sale continues to fall dramatically from its peak in March 2011 ( a 37% decrease) and is 24% lower than a year ago. Sales volume is also 30% higher than last year, which has resulted in a reduction to only a 4 month inventory of condos and townhomes for sale.

I have been very involved in the condo and townhome market on the Palos Verdes Peninsula. You can see that by “Googling” the search term ” Palos Verdes Condos” and you will see that my website is the first listing on page one of the search results. 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