Sometimes it is interesting to break statistics apart to analyze the sum of their parts. For instance, the real estate market for single family homes on the Palos Verdes Peninsula has different dynamics depending on the price range of the homes. There are currently 101 homes listed for sale on the Palos Verdes Peninsula as of the end of February:
The number of months of inventory of homes for sale as of the end of February was 2.3 months based on February sales. This indicates an overall very tight market.
If these statistics are broken out by sales levels into three categories, for sales less than $1.5 million, $1.5 to 2.5 million, and over $2.5 million, the statistics tell a different story. For properties listed for less than $1.5 million at the end of February, there are only 43 properties listed for sale:
This is equal to only a 1.3 month inventory of homes, much lower than even the very low 2.3 months of inventory overall.
For homes listed for sale between $1.5 and $2.5 million, there are 24 properties listed for sale:
This is equal to a 3 month inventory, much higher than the 1.3 months inventory for homes less than $1.5 million:
There are 34 properties over $2.5 million listed for sale at the end of February:
This is equal to a 8.5 months worth of inventory, which is much higher than the 3 months of inventory for homes less than $2.5 million. This shows how much longer it takes to sell a higher priced home, as home sales for homes greater than $2.5 million have averaged only 4 homes sold per month.
This analysis shows that the market for homes less than $1.5 million is substantally hotter than for more expensive homes, particularly for those homes priced in excess of $2.5 million.