Rancho Palos Verdes Housing Market Recap | Mar ’23

The Rancho Palos Verdes housing market for March 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!

March ’23 | Residential Avg. Sale Price: $1,744,441 (up from last month)

The average price for a homes in Rancho Palos Verdes went up by about $45,000 compared to February, easing the downward trend of home prices, but still falling overall when compared to the last 12 months. The number of homes sold has steadily increased since January, but overall significantly lower when compared to 12 months ago.

Interest rates increased in the month of March by more than a quarter percent. Interestingly enough, days on market dropped by more than half, from 52 days in February to just 23 days in March. This may be an indication that the lack of inventory is starting to play a role in home prices. Low supply = higher prices, and with new loan programs making it easier for first-time home buyers to get into a home, competition could be heating up as we progress into spring.

Next, let’s take a look at single family homes specifically.

Single-Family Homes | Avg. Sale Price: $1,881,788

This month, the average price for a single-family home in Rancho Palos Verdes has decreased by about $160,000 compared to February’s average of $2,047,611. As can be seen from the trend line (dotted blue), prices for houses continue to decline in RPV. It is also important to note that the number of homes sold (red bars) has been very low since the start of the year, but March had a big jump with 28 homes.

The average time to sell a house in Rancho Palos Verdes had steadily increased since May ’22. However, in March we saw days on market drop by more than half, going from 54 days to only 22 days.

The market for single-family houses in RPV remains resilient to rates, especially when there is low inventory to choose from. We expect next month’s rates to improve, and days on market to increase slightly, but not by much.

Next, let look at condos and townhouses.

Condos & Townhomes | Avg. Sale Price: $975,300

The average sale price for a condo or townhouse in RPV decreased by about $30,000 when compared to February ’23, settling at just about $975,000. Only 5 units this month, the fewest since January, making March the month with the second-fewest condo sales in the last 14 months. Despite this, the trend line for price is still trending upward, though the average can be volatile from month to month due to RPV’s mixed inventory of ordinary and luxury condos/

However, the low unit count and lower average sale price did cause the amount of time a condo sits on the market to further decrease, from 48 days to 32.

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.

Outlook

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

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

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!