The Rancho Palos Verdes housing market for February 2023 continues to experience a decline in the average sale price of homes, indicating that rates are putting pressure on home prices, despite low inventory. See below for all the details, including single-family homes and condos!
Interest rates increased very slightly in February by only .10%. However, this month’s average sale price (solid blue line) plummeted by more than $80,000, topping January’s decline of $57,000 compared to December. However, more homes sold in February (red bars) than in the last 3 months.
Interest rates have held somewhat steady, in the 6.5% range over the last three months. Similarly, the amount of time it takes to sell a home in Rancho Palos Verdes has also remained consistent over the last three months, at just over 50 days.
Next, let’s take a look at single-family homes specifically.
The average price for a single-family home in Rancho Palos Verdes has increased by $190,000 compared to January’s average of $1,853,878. As can be seen from the trend line (dotted blue), prices are declining in RPV. It is also important to note that the number of homes sold (red bars) has been very low since November when rates hit 7%.
The time it takes to sell a house in Rancho Palos Verdes has been steadily increasing since the start of summer last year, going from just over two weeks to 50+ days in February ’23. With the exception of the summer months (June – August), days on the market and interest rates have had an almost direct correlation, seeming to only decrease when rates go down or stay somewhat consistent.
Next up, let’s look at condominiums and townhouses.
February’s sale price average for condos and townhouses decreased compared to January, but still averaged just over $1,000,000. Condo sales in RPV range drastically in price since there are several high-end luxury condominiums and/or townhomes on the PV peninsula. This is the reason average sales price can vary drastically from month to month, often swinging by $100,000 to over $200,000 from month to month.
Despite the lower sale price average, February still managed 9 condos sold, which is comparable to the first half of 2022 when interest rates were below 5%. The average sale price trend line (dotted blue line) is showing an upward trend, but it will be interesting to see if that changes in the coming months.
The amount of time it takes to sell a condo or townhouse in Rancho Palos Verdes decreased significantly this month, down to 48 days from 85 days in January, which was due to a few luxury condos that took hundreds of days to sell. This month is much more in line with what the market is actually doing.
Since Condos & Townhomes are typically the most affordable properties, we expect demand for condos and townhouses to remain competitive since the inventory is still low.
Moving forward, we are expecting rates to stay somewhat consistent which should help gain some confidence in the housing market. Keep a close eye on sharp increases in interest rates, as more are scheduled to happen this year according to the FED.
Buyers in this market should be negotiating deals, as sellers have lost much of their leverage over the past 12 months. But keep in mind that inventory remains low for ALL of Los Angeles and much of the state. If buying real estate is one of your goals and you were a buyer in the market over the last 2 years but ultimately gave up because of stiff competition from conventional buyers, now is a phenomenal time to be a buyer because of the leverage you have on sellers. In this market, sellers will welcome FHA offers, VA offers, seller credits, repairs, and loan buy-down programs in order to sell you their home.
Sellers in this market should be doing everything they can to distinguish their homes from others on the market. Presentation and condition are extremely important, so preparing your home for sale and making sure it looks and functions as best as it can is of vital importance if you want a successful sale. Doing so may result in multiple offers on your property, which would significantly boost your leverage with buyers. And yes, we can help with all of this, all included in our standard commission! Learn more by visiting our Concierge Real Estate Services page.
If you’re ready to start your real estate journey, contact us today!
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