Rancho Palos Verdes
Real Estate Market Recap | Apr ’23

The Rancho Palos Verdes real estate market for April 2023 continues to experience an increase in the average sale price of homes, indicating that inventory shortages may be putting pressure on home prices, despite high-interest rates. See below for all the details, including single-family homes and condos!

April ’23 | Residential Avg. Sale Price: $2,071,686 (up from last month)

The average price for a residential home in Rancho Palos Verdes experienced a significant jump for the month of April, increasing by over $300,000 on average. This new average of $2.072M is the highest monthly average in the last 12 months, surpassing the summer months of 2022. It is worth noting the low volume, with only 22 homes sold in the entire month. Only January of this year came in with a lower sale count, with 20. Last month we mentioned that the lack of inventory was beginning to put upward pressure on homes, and it looks like that is what is happening now.

Inventory, or the lack thereof, is likely the cause for the jump in average sale price. Many sellers are holding off with listing their properties for sale, and that is only making matters worse for buyers who are currently looking to enter the market. Another factor that buyers are monitoring closely is the interest rates for mortgages.

Interest rates in April stayed consistent, dropping slightly from 6.75% in March to 6.48% in April. This puts us in the same interest rate range we saw in December ’22 and the first quarter of this year, as depicted by the flat red line in the above graph. Days on the market for the month of April increased by more than double, going from 23 days to 50 days on the market for April.

Next, let’s look at single

Single-Family Homes | Avg. Sale Price: $2,213,954

The price for a single-family house in Rancho Palos Verdes increased this month, matching the average prices we experienced during the summer months of June, July, and August of 2022. Although the average price is similar to that of the summer months, the number of units sold is down significantly with only 20 units sold when the summer months averaged 32 homes sales.

Days on the market increased this month by more than double for single-family homes in RPV. It is worth noting that only 4 (all single-family homes) properties stayed on the market for longer than 120 days, averaging 150 days on the market, while the remaining 18 units averaged only 25 days on the market. This leads us to believe that the time it takes to sell a typical home is likely closer to 25 days rather than 50 as depicted by the data. This can be more easily seen in the next section which covers condos and townhomes.

Condos & Townhomes | Avg. Sale Price: $649,000* (Misleading)

The average price for a condo in RPV can fluxuate drastically, especially on months with fewer homes sold. Only two condo or townhouse units sold in the month of April and they were both small, non-luxury units, averaging $649,000. Although this figure is very low, January also had only two condo sales, but they were luxury units and averaged a sale price of $1,155,000. Although this month’s average was much lower than previous months, we expect next month’s average to bounce back, especially since there were only two units sold.

Days on the market for condos increased slightly to 40 days. Although only two condo units sold last month, this is likely closer to what the actual market is doing as opposed to the graphs above that include Single-Family Homes. Since Condos & Townhomes are typically the most affordable properties, we expect demand to remain competitive since 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. Inventory will be key in determining what direction the market will head. 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!