I received the following email from a visitor to my website today about what is going on with the real estate market for conods and townhomes on the Palos Verdes Peninsula:
I am currently looking at condo units in the Palos Verdes/90274 zip code area and ran across your website during my search. As you seem to be an expert in the area, I was wondering if you might be able to help me out by answering a few questions?
So far I have conducted a preliminary search on Trulia and really like the area, but am nervous about purchasing a condo in today's market. It appears that prices have declined quite significantly over the course of the last two years. What is your experience with this condo market? I have heard that people are able to pick up condos for less than construction costs. Do you think that is the case in this market? How many unsold condos are you seeing in todays market? Is there still so many that we can expect prices to decline further?
I look forward to hearing from you.
The following was my response to him:
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
|1 month||1 year||2 years|
|Jun 10||Jul 10||% Change||Jul 09||Jul 10||% Change||Jul 08||Jul 10||% Change|
|Avg. Sq. Ft. Price||367||343||-6.7%||365||343||-6%||376||343||-8.7%|
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.
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. $350 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:
Over the last 6 months, an average of 13 units have sold each month and there are currently 54 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. 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.
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.