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Palos Verdes and South Bay Real Estate Market Report for Third Quarter 2010

Following is my 3rd Quarter 2010 Real Estate Market Report for the Palos Verdes Peninsula and South Bay Los Angeles Beach Cities: 

       

ClLICK ON THE MARKET REPORT DESIRED BELOW:

Palos Verdes Peninsula 2010 Nine Months Market Information

Palos Verdes Peninsula Neighborhood 3rd Quarter Detailed Real Estate Activity

Manhattan Beach and Hermosa Beach 2010 Nine Months Quarter Market Information

Redondo Beach 2010 Nine Months Market Information

Torrance 2010 Nine Months Market Information

San Pedro 2010 Nine Months Market Information



2010 Third Quarter Market Report Palos Verdes Peninsula and South Bay Single Family Homes 

The real estate market activity for the Palos Verdes Peninsula and Beach Cities slowed in the third quarter 2010, with sales volume down 8% compared to the prior year. This decrease is generally attributed to the expiration of Federal and California tax incentives to purchase homes as well as ongoing consumer concerns about the economy. 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. Lower priced homes are selling, with buyers taking advantage of significant discounts and record low interest rates.

PRICE CHANGES:

Properties, on average, in the South Bay are selling for approx. 97% of list price. The average price per sq. ft. for South Bay homes sold in the third quarter 2010 compared to the third quarter 2009, increased approx. 4% overall but varied city by city. The median price of homes in Los Angeles County has been increasing lately due to an increase in the number of more expensive homes being sold because of the improving market for jumbo loans.

The following is a chart of the sales price per sq. ft. for homes on the Palos Verdes Peninsula:


The figures included in the table below are only for the three months in the 3rd Quarter for each year:

 

 

%

 

  Location

     2010 3rd Qtr.

Sales Price Per Sq. Ft.

2010 3rd Qtr.

# of Houses Sold

Sales Price Per Sq. Ft.

 % Change from 3rd

      Qtr. 2009

    Sales Volume

% Change from 3rd

       Qtr. 2009

 

  Months

 Inventory

Palos Verdes Estates               $535      41            ( 3%)        ( 2% )           6
RPV, RHE & PVP                 470    106               9%          7%           5
Rolling Hills                 531        3               ---            --           6
Manhattan Beach/Hermosa                 613    118               1%          4%           5
Redondo Beach                 451      91               0%         30%           4
Torrance                 376    162               3%       ( 29%)           5
San Pedro                 296      75             ( 8%)       (   8%)           5
 

INVENTORY - The total inventory of single family homes for sale in the cities listed above is significantly higher compared to the prior year but still averages only 5 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 in the higher priced markets have also been selling faster than the higher priced

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. 3.9 %.  Rates for loans between $417,000 and $729,750 (conforming jumbos) are just slightly higher. 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 $729,750) have decreased substantially over the last several quarters to an average rate of approx. 4.9-5.1%. Jumbo loans require a higher down payment of 25 to 30%. 7 year variable rate loans are available for jumbo loans at rates of approx. 4.25%. All rates quoted above are as of 10/15/2010, and assume a 1 point fee and a FICO score of at least 700.

Third Quarter 2010 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 about 8-9% the last few years,  Prices in a few projects , such as the Palos Verdes Bay Club have fallen more than this, but generally prices for condos and townhomes are now relatively stable. The Price per sq. ft. for condos and townhomes sold over the last six months has held relatively steady, and showing no signs of additional declines.

 

 

  Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago
  Sep. 10 Aug. 10 % Change Sep. 10 Sep. 09 % Change Jul. 10 to Sep. 10 Jul. 09 to Sep. 09 % Change
Avg. Sq. Ft. Price 363 355 2.1% 363 410 -11.5% 354 382 -7.3%

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. $355 per sq. ft.  I would not consider this price to be significantly less than replacement cost including the cost of the land. Homes in this area have fallen much less than other areas because there has been so little new construction here,  and much fewer foreclosures than in many other areas.  This market is now considered a stable market by loan underwriters.

The following is a chart of condos and townhomes for sale and sold the last two years:

 

  Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago
  Sep. 10 Aug. 10 % Change Sep. 10 Sep. 09 % Change Jul. 10 to Sep. 10 Jul. 09 to Sep. 09 % Change
For Sale 56 59 -5.1% 56 60 -6.7% 57 52 8.9%
Sold 11 11 0%     11 15 -26.7% 10 18 -42.6%
Pended 14 11 27.3% 14 15 -6.7% 13 17 -22%

Over the last 6 months,  an average of 13 units have sold each month and there are currently 56 units for sale, which is only a 4 month inventory and the number of units for sale is actually down significantly over the last two years from it's peak of 82 homes for sale 2 years ago.  Because of this, I do not believe that there will be any significant, if any, drop in prices over the near term.  With record low interest rates, and the fact that the spring and summer sales season is coming to an end and sellers are now very anxious to do a deal, I really believe that now is an incredible opportunity to buy in this market. 

 

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:  Palos Verdes - Townhomes / Townhouses and Condos . This will give you a good idea of what is available in your price range.

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 http://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.

Comment balloon 0 commentsMaureen Megowan • November 12 2010 03:28PM
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