Rancho Palos Verdes
Real Estate Market Update | June ’23

Overview

Rancho Palos Verdes, 90275, real estate experienced a decrease in average home sale price (-$315,0000), sold inventory (-5 units), and days on the market (-13) for June 2023. However, overall pricing is still trending up. Let’s get into the details:

SFR & Condos | Sold Inventory | RPV – June ’23

June’s average home sale price decreased by roughly $315,000, from $2.177M in May to $1.861M for June. The number of homes sold also decreased, but only by 5 homes, down to 37. Despite this lower sale average, the housing market in Rancho Palos Verdes is still trending upwards. With home prices this high, it will be interesting to see if the summer months will maintain these levels, as it tends to be the busiest time of the year.

SFR & Condos | Home Sale Duration | RPV – June ’23

How long does it take to sell a home in Rancho Palos Verdes? In June, the average days on the market dropped from 33 days in May to 20 days in June; a significant drop given that rates and the number of homes sold were similar. Interest rates saw a slight increase this month as well, but overall have remained below 7%, as can be seen in the red line above.

SFR & Condos | Affordability | RPV – June ’23

The red bars and left axis represents the average sale price for housing for the given month, which has hovered between $1.7M 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 began to drop about a year ago, in June of ’22, reaching their lowest point this past November with an average home price of $1,570,577. Back then, the average mortgage for a home in the area would have been just over $8,300/month.

The last few months have experienced significant increases in housing prices, going from $1.7M in February to over $2.1M in May. June actually saw a decrease in average price, settling down near the $1.86M range. We believe the increase is largely due to the lack of inventory in the real estate market, not only in Rancho Palos Verdes, but the entire Los Angeles area. With limited inventory on the market, we are beginning to see homes sell for OVER ASKING since MULTIPLE buyers are competing for the few homes available. A 2 bedroom condo we listed at a fair market price (based on comparable sales) just went into escrow for 10% over asking. Not $10,000 over asking, 10%! For sellers, this is definitely a positive! For buyers, things are getting more competitive in the market, so be prepared to compete!

Let’s dive into the specific property types below.

Single-Family Homes | Avg. Sale Price: $2.033M

SFR | Sold Inventory | RPV – June ’23

Single-family homes for sale in Rancho Palos Verdes experienced a dip in average price, from $2.288M in May to $2.033M in June. With sold inventory decreasing by 8 units, prices continue to fluctuate with the market and interest rates.

SFR | Home Sale Duration | RPV – June ’23

Mortgage interest rates have held steadily in the mid to high 6% range since peaking in November. Although the steep rates caused days on the market to approach 60 days, buyers are finding themselves competing over very little inventory, which caused prices to go up and days on the market to decrease, down to just 19 days for June ’23.

SFR | Affordability | RPV – June ’23

Condos & Townhomes | Avg Sale Price: $971,667

The average sale price for a condo or townhome in Rancho Palos Verdes increased this month (+$233k), going from $738K in May to $972k in June. 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).

Condos & Townhomes | Sold Inventory | RPV – June ’23

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 finishings location. However, since most first-time-home-buyers in Rancho Palos Verdes will often consider a condo, this segment tends to be very competitive for buyers, especially when there are only 3 – 9 homes sold in the entire month!

Condos & Townhomes | Home Sale Duration | RPV – June ’23

The average time it takes to sell a condo or townhouse in Rancho Palos Verdes decreased to 26 days in June. Unlike May, June saw five of the six condo units sell in 25 days or less, with the last unit selling in 95 days. Demand for entry-level housing appears to be strong.

Condos & Townhomes | Affordability | RPV – June ’23

The drastic increase in the average sale price for condos this month caused the estimated mortgage payment to creep into the $5,000/month range.

Outlook

Moving forward, we are expecting rates to stay consistent, likely in the high 6% to low 7% range. 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 past 3 months. 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 still a phenomenal time to be a buyer. 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. 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!

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