Rancho Palos Verdes Real Estate Market Update | Oct ’23

OCTOBER 2023: Rancho Palos Verdes, 90275, real estate experienced an increase in average home sale price (+$170,000), sold inventory (+8 units), interest rates, and days on the market (+7) for October 2023. Let’s get into the details:

Residential (Houses & Condos) | Avg. Sale Price: $1.831M

The average sale price for a home in Rancho Palos Verdes increased by roughly $170,000, from $1.66M in August to $1.83M. The number of homes sold also increased by 8 homes, up to 32 units for the month. With the higher average, the housing market in Rancho Palos Verdes continues to trending upwards. With home prices this high, it will be interesting to see if the winter will bring significant changes, as rates tend to be relatively lower during an election year, but rates in late October were in the 7.9% range!

How long does it take to sell a home in Rancho Palos Verdes? The average number of days on the market for October was 27, compared to 20 days in September. Interest rates saw an increase this month as well, but overall are in the mid-7 % range as of early November.

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 October was roughly $10,660/month.

Let’s dive into the specific property types below.

Single-Family Homes | Avg. Sale Price: $1.887M

Single-family homes for sale in Rancho Palos Verdes experienced a drop in average sale price, from $1.974M in September to $1.887M in October. 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, October was a solid home for closed sales in Rancho Palos Verdes with 30 units.

Mortgage interest rates have approached the 8% range as of Oct. Even with the recent higher rates, days on the market has remains at about 3 weeks or so, with 23 for the month of October.

Based on the average sale price for the month, the average house mortgage in RPV has decreased. For October 2023, the average mortgage for a house in RPV was roughly $10,990.

Condos & Townhomes | Avg Sale Price: $990K

The average sale price for a condo or townhome in Rancho Palos Verdes increased in October (+$90k), going from $899k in September to $990K in October. 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 2 condos sold in Rancho Palos Verdes in October.

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 increased in October but largely due to the small sample size. Of the two units sold in October, one sold in 20 days and the other in 156 days, hence the 88-day average.

Demand for entry-level housing appears to be strong, as days on market continue to fall despite rising rates, lower inventory, and higher housing prices.

The increase in the average sale price and interest rates for condos in October caused the estimated mortgage payment to soar to $5,760/month; about $700 more than in Sept, though the substantial increase in mortgage rates played a large role.

Outlook

The winter months tend to have less real estate activity and we are anxiously waiting to see what will happen in the last quarter of the year. 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 7.5% 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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