Following is my summarized real estate market report for the 1st quarter of 2013 for the Palos Verdes Peninsula and South Bay Los Angeles areas. I have been fortunate to sell over $13 million of properties on behalf of my clients in 2012, earning me a spot in the top 15 of over 600 agents in Remax Estate Properties, and selection to the Remax Hall of Fame as well as the Remax Platinum Club.
The current real estate market is dominated by the extremely low level of inventory of homes available for sale.This market is a “Perfect Storm” of factors that make now an amazing time to sell a home. These factors include record low interest rates for buyers, the lack of competitive properties for sale making for less competition to sell your home, and an improving economy. Many homes are receiving multiple offers. Sales prices are expected to be relatively stable over the near term, however there is some downside risk. There is a threat that Congress may limit certain real estate deductions such as mortgage interest or property taxes. In addition, when the economy improves and interest rates increase, this will also lead to pressure on home prices. All in all, I believe that now may be the best time to sell a property in the foreseeable future. If you may be considering selling your home in the near future, I would be happy to discuss your homes value with you.
2013 1st 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 1st quarter 2013, with overall sales volume up about 35% and the inventory of homes for sale down 41% compared to the first quarter 2012 sales, which is equal to less 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. 94% of list price. The average price per sq. ft. for Palos Verdes homes sold in the first quarter 2013 of $474 compared to the first quarter 2012, increased approx. 4% overall, but varied city by city. Prices per sq. ft. are down approx. 18% 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 54 homes sold per month during the 1st Quarter, a 35% increase over the 1st quarter of 2012.There are 75 homes in escrow at the end of the first quarter 2013.
The figures included in the table below are only for the three months in the 1st Quarter :
|
Location |
2013 1st Qtr. Sales |
% Change from 1st Qtr. 2012 |
Months Inventory |
||
|
Sales Price Per |
# of Houses |
Sales Price Per Sq. Ft. |
Sales Volume |
||
|
Palos Verdes Estates |
$567 |
33 |
6% |
( 8%) |
2 |
|
RPV, RHE & PVP |
436 |
124 |
7% |
52% |
1 |
|
Rolling Hills |
631 |
4 |
(14%) |
25% |
6 |
|
Manhattan Beach/Hermosa |
787 |
78 |
15% |
( 5%) |
1 |
|
Redondo Beach |
485 |
73 |
10% |
28% |
1 |
|
Torrance |
362 |
162 |
9% |
( 1%) |
1 |
|
San Pedro |
278 |
85 |
3% |
22% |
2 |
The total inventory of single family homes for sale in the cities listed above is down approx. 44% compared to the prior year, the sales activity is up 15%, 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 2012 for the cities listed above is up approx. 5% overall compared to the 1st 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. 3.4%, unchanged from the end of 2012. Rates for 30 year loans between $417,000 and $625,500 (conforming jumbos) are approx. 3.625% , and 15 year loans are at approx. 3.0%.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. 3.9%. All of these rates are still near record lows. 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. Jumbo loans require a higher down payment of 25 to 30%. All rates above are APR rates as of 1/17/2013, and assume a 20% down payment, no points and a FICO score of at least 740.
First 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 first quarter of last year, and averaged $349 per sq. ft. during the 1st quarter 2013. Average monthly price per sq. ft. has increased in each of the last 3 months.
The following is a chart of Palos Verdes Peninsula condos and townhomes for sale and sold over the last year
The inventory of condos and townhomes for sale of 34 units at the end of the 1st quarter of 2013, a 24% decrease from this time last year, and continues to fall dramatically from its peak in March 2011 of 91 units ( a 63% decrease) .The decrease in inventory has resulted in a reduction to only a 3 month inventory of condos and townhomes for sale based upon the average monthly sales over the last quarter.
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
Simply Click on the 2013 1st Quarter Remax Market Report Desired Below (Note that Market Information Reports are Year to Date Figures)
Palos Verdes Peninsula 2013 1st Quarter Market Information
Manhattan Beach and Hermosa Beach 2013 1st Quarter Market Information
Redondo Beach 2013 1st Quarter Market Information
Torrance 2013 1st Quarter Market Information
El Segundo 2013 1st Quarter Market Information
San Pedro 2012 Year End Market Information
Most recent Palos Verdes Peninsula city market reports:
City of Rancho Palos Verdes 2013 1st Quarter Single Family Real Estate Market Report
City of Rolling Hills Estates 2013 1st Quarter Single Family Real Estate Market Report
City of Palos Verdes Estates 2013 1st Quarter Single Family Real Estate Market Report
City of Rolling Hills 2013 1st Quarter Single Family Real Estate Market Report
Palos Verdes Peninsula ( All Cities) 2013 1st Quarter Condo and Townhome Real Estate Market Report
For more information about Palos Verdes and South Bay Real Estate and buying and selling a home on the Palos Verdes Peninsula, visit my website at https://www.maureenmegowan.com . I try to make this the best real estate web blog in the South Bay Los Angeles and the Palos Verdes Peninsula. I would love to hear your comments or suggestions.
