2022 Real Estate Market Recap: Rancho Palos Verdes

As we welcome the new year, we can now take a complete look at what the real estate market did in Rancho Palos Verdes (RPV) for 2022. Last year we saw interest rates double and home prices actually did end lower than a year ago, but not before hitting new highs in the summer months! Although homes did not sell as fast as they were a few years ago, sellers are still moving, buyers are still looking to buy, and prices are still increasing in San Pedro. Read below for an in-depth look!

2022 Market Recap | Residential Avg Sale Price: $1,847,698

In 2022, interest rates increased tremendously, going from 3.2% in January to 6.5% or more by December. The increase caused many potential buyers’ estimated monthly payments to increase dramatically, in some cases so much so that they were forced to downsize their search or put their house hunt on hold. As a result, the drop in buyers caused properties to sit on the market for longer periods:

SFH & Condo DOM vs Rates – RPV 2022

Interest rates, shown in red, began the year in the low 3% range, but quickly got to over 6%. Average Days on Market (DOM), which is the time a home sits on the market before being sold, started the year around 30 days and decreased to only 10 days in May. However, once the rates went above 5%, DOM began to increase steadily, increasing steadily as rates went above 6%. By December, DOM for homes sold was averaging over 50 days.

SFR & Condo Avg Sale Price – RPV 2022

As mentioned previously, RPV saw home sale prices decrease for 2022. However, sale prices for homes sold at the beginning of the year and through August averaged above $1.9M, trending upwards as seen in the bar graph above. However, once the rates went above 5.5% the market struggled and prices began to drop.

SFR & Condos Real Estate Stats – RPV 2022

Average sale prices for single-family homes and condos/townhomes in RPV have decreased slightly, but are still averaging well over $1.8M per unit since the beginning of 2022. See single-family and condo stats below for more details.

Single-Family Homes | Avg. Sale Price: $2,147,849

Single-family home sales in RPV were pretty consistent throughout 2022, though they were inevitably affected by rates. Although rates quickly went from 3 to 5 percent from March to May, the number of homes sold rarely dipped below 25 units per month until September, when rates went over 5.5%. DOM also stayed relatively steady, averaging about 20 days for much of the year until the last quarter, when DOM averaged 40+ days for sold homes!

SFR Real Estate Stats – RPV 2022

Despite the increasing rates and DOM, average home prices remained steady, averaging about $2.050M through August. However, the last quarter saw a considerable drop in sale price and units sold.

SFR average sale price – RPV 2022

Overall, single-family homes in RPV saw a slight decrease in sale prices for 2022, but look to be leveling off, with the average sold price in December 2022 coming in at $2,147,849.

Condos & Townhomes | Avg. Sale Price: $817,417

The real estate market experienced a ‘soft decent’ for condos and townhomes in RPV for 2022. DOM was consistent, averaging around 20 days or so up until December when it shot up to 40 days. Similarly, the number of units sold stayed consistent, starting the year with about 10 units per month until rates went above 5%, significantly dampening the number of units sold. Again, you can see the bars in the “Count of Sale Price” column steadily decreasing as the year went on and rates continued to increase.

Condo & Townhouse Real Estate Stats – RPV 2022

The most dramatic changes to price and DOM were again likely caused by a sharp change in interest rates. Months with lower rates sold the most units for the highest average prices. Also, the number of units sold dropped drastically when rates went above 5%. However, even when rates went above 6.5% in the last quarter of the year, condos were still selling relatively quickly, especially in October and November.

Condo & Townhouse Avg Sale Price – RPV 2022

Similar to single-family homes, condos and townhouses in RPV saw a slight DECREASE in sale prices for 2022, with the average sold price in December coming in at $817,417.

Conclusion & 2023 Real Estate Market Outlook

Even with interest rates in the mid and high 6% range, buyer interest seems to be ramping up for 2023. Both condo and home sale prices are trending slightly downwards for RPV, but we expect to see them level off or even increase slightly as long as rates do not get overly volatile.

Buyers still have plenty of leverage to negotiate with in 2023. Asking for repairs, closing cost credits, and other items are much more likely to lead to concessions compared to only a year ago. There simply are not the same amount of buyers in the market today as there have been in recent years, so buyers have fewer buyers to compete with. The challenge will be committing to a property and coming to terms with a seller.

If you are selling in 2023, you can expect to be on the market for at least three to four weeks. Great listings will always sell fast, but every component must work in unison: presentation, price, and promotion. Even then, we are seeing some listings sit for several weeks, so patience is key. Although prices are increasing, be cautious when setting a price. It is important not to over-price in changing markets, such as the one we are in. The market can be intimidating to some buyers, and potentially scaring away the few that are left with a high sale price may not be a wise decision if you really need to sell. Properly presented listings will always command a higher sale price and sell faster than unprepared homes. In other words, this is not the market to cut corners! Make sure your home looks as good as it can if you are selling.

Considering buying or selling in 2023?

Contact us to get started today for Award-Winning Service!

Get my home value!

Search Homes

Ready to get Started?

For our Buyers:

Added Benefits When Working With Us

Contract Knowledge

The Residential Purchase Agreement is 10 pages of terms and conditions that stipulate every aspect of the purchase, and we know exactly how to use them to your complete advantage!

Expert Negotiators

As experienced Full-Service Realtors, we know how to leverage you buying and bargain power. Whether competing to get your offer accepted or negotiating repairs, our goal is to get you a great deal!

Team = Always Available

The added benefit of working with The Prestige Team is that one of our Real Estate Professionals is always available to help. No missed opportunities!

On Every Listing:

Need Additional Assistance? We Specialize in that!

Decluttering & Emptying Properties

Need help with decluttering? Whether you need a few boxes and an extra set of hands, have a house full of items that need to go, we have the resources in place ready to assist with your needs!

Schedule Management

Schedule Management is crucial if you have a time frame in mind for the sale of your home. Let us use our experience to ensure every aspect of preparing your home for the market stays on schedule!

Team = Always Available

The added benefit of working with The Prestige Team is that one of our Real Estate Professionals is always available to help. No missed opportunities!

Latest Posts