Rancho Palos Verdes Real Estate Market Update | Dec ’23

DECEMBER 2023: Rancho Palos Verdes, 90275, real estate experienced a significant decrease in average home sale price (-$170,000), sold inventory (-4 units) and interest rates (-.8%), with an increase in days on the market (+2) for November 2023. Let’s get into the details:

Residential (Houses & Condos) | Avg. Sale Price: $1.980M

The average sale price for a home in Rancho Palos Verdes increased by roughly $320,000, from $1.660M in November to $1.980M in December, though an $11,000,000 sale is mostly responsible for that. Without that sale, the average would be closer to $1.650M. The number of homes sold also increased to 29 units for the month. With the higher average, the housing market in Rancho Palos Verdes continues to trend downward.

How long does it take to sell a home in Rancho Palos Verdes in December? The average number of days on the market for December was 65. Look for that number to drop next month.

The red bars and left axis represent the average sale price for a home in that given month, which has hovered between $1.6M and a bit over $2M per home. The blue line and right axis represent the average mortgage payment with 20% down (does not include taxes, insurance, or HOA fees).

Prices in Rancho Palos Verdes are at about the levels they were a year ago, but with higher interest rates, affordability is not what it used to be. The average mortgage in RPV for the month of December was roughly $10,118/month.

Let’s dive into the specific property types below.

Single-Family Homes | Avg. Sale Price: $2.369M

Single-family homes for sale in Rancho Palos Verdes experienced an increase in average sale price for December, though the chart number is skewed due to a large sale that closed. Inventory continues to be an issue in Rancho Palos Verdes, and days on the market may be a clear indicator of that. Since the peak in May with 37 homes sold, inventory has dropped every month, down to 17 sales in both August and September. Luckily, the last three months of the year all stayed above 20 homes sold.

Days on market climbed significantly in December, mainly because 7 listings closed with more than 90 days on the market. Look for this number to drop below 30 for the coming months.

Based on the average sale price for the month, the average house mortgage in RPV has decreased. For December 2023, the average mortgage for a house in RPV was roughly $10,000, the $12,000 number on the chart is skewed due to a large sale that closed.

Condos & Townhomes | Avg Sale Price: $961K

The average sale price for a condo or townhome in Rancho Palos Verdes increased in December (+$26k). Condo inventory in Rancho Palos Verdes has been very low since the start of the year. From January ’23 to June ’23, only 27 condo/townhouse units have been sold in RPV, which is half of what was sold in the same time frame last year (54 units). Only 8 condos sold in Rancho Palos Verdes in December. Condo sellers are receiving the most attention from buyers right now.

Condo and townhouse prices tend to be a bit erratic, as a 2-bedroom condo in Rancho Palos Verdes can range from $500k to over $1M depending on its location and condition. However, since most first-time home buyers in Rancho Palos Verdes often buy a condo as a first home, this segment tends to be very competitive, especially when there are only 3 – 9 homes sold in the entire month!

The average time it takes to sell a condo or townhouse in Rancho Palos Verdes for December was roughly 23 days. Demand for entry-level housing appears to be strong, as days on market continue to fall despite higher rates, lower inventory, and higher housing prices.

The decrease in the average sale price and interest rates for condos in December caused the estimated mortgage payment drop under $4,910/month; about $200 less than in November.

Outlook

The winter months tend to have less real estate activity and we are definitely seeing that these days. We appear to be moving towards a more ‘normal’ real estate cycle, though the markets can change quickly under the right circumstances. We are expecting rates to stay consistent, likely in the 7% range or lower. If rates can stay consistent, buyers and sellers should gain confidence in the market, and hopefully, that will lead to more inventory on the market.

Buyers

Buyers in this market should be prepared to compete, especially if you’re a first-time home buyer. Sellers have gained much of their leverage over the year. 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, we recommend buying when you can afford it. Housing is only getting more expensive year after year. Be ready to compete.

Sellers

Sellers in this market should be doing everything they can to distinguish their homes from others on the market. Even though there is not as much competition, cutting corners when listing your home is never a good idea. 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. Some homes are still selling fast, but buyers are pickier than they’ve been in the last 5 years. 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!

Who is The Prestige Team?

Rancho Palos Verdes Realtor Broker Associate Karen Anderson, along with her Real Estate Team, The Prestige Team, has been selling residential real estate in the South Bay, including Rancho Palos Verdes, San Pedro, and far beyond LA County for over 27 years and is ranked in the top 1% of realtors in Rancho Palos Verdes.  We specialize in transforming homes into impeccably presented real estate listings that command top dollar in the shortest amount of time!  

Learn more about us below!

Before After

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!

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