San Pedro Housing Market Recap | Feb ’23

The San Pedro housing market for February 2023 saw significant changes to the average sale price of homes, indicating that rates may be putting pressure on home prices, despite low inventory.

SFR & Condos | Avg. Sale Price VS Homes Sold – San Pedro Feb ’23

Interest rates increased very slightly, only .10%. However, this month’s average sale price plummeted by more than $130,000. Despite the massive drop in the sale price, more homes sold in February (41) than the last 5 months and up significantly over January’s low count of 25 homes.

SFR & Condos | Avg Days on Market VS Interest Rates – San Pedro Feb ’23

Interest rates have held somewhat steady, in the 6.5% range over the last three months. Although days on market dropped for January, February experienced an increase, sending the time it takes to sell a home in San Pedro to 41 days, almost double the average time it would have taken to sell a house in 2020-2022.

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

Single-Family Homes | Avg. Sale Price: $908,952

The average price for a single-family home in San Pedro has decreased for the first time since September ’22.

SFR | Avg Sale Price VS Homes Sold – San Pedro Feb ’23

With February’s sale average price dropping, we can see the 12-month trend line is nearly level.

SFR | AVG Days on Market VS Interest Rates – San Pedro Feb ’23

The time it takes to sell a house in San Pedro has been steadily increasing since June ’22, going from just over two weeks to 53 days in February ’23. With the exception of the summer months (June – August), days on the market and interest rates have had an almost direct correlation, seeming to only decrease when rates go down or stay somewhat consistent. This was not the case in February, as rates only increased slightly, but days on market soared compared to last month.

Next up, let’s look at condominiums and townhouses.

Condos & Townhomes | Avg. Sale Price: $581,863

The average sale price for a condo or townhouse in San Pedro decreased compared to December ’22.

Condos & Townhomes | Avg Sale Price VS Units Sold – San Pedro Feb ’23

February’s sale price average for condos and townhouses leveled the trend line for sale prices, decreasing by over $30,000 compared to last month. With the new average, prices are trending evenly, even though the number of condos sold more than doubled from 9 to 19 condos sold.

Condos & Townhomes | Avg Days On Market VS Interest Rates – Feb ’23

The amount of time it takes to sell a condo or townhouse in San Pedro increased slightly this month, after falling by nearly half in January. Even though last month’s drop seemed like an anomaly, February’s average seems to be more in line with other months compared to the interest rate.

Since Condos & Townhomes are typically the most affordable properties, there is often more demand for them from buyers. This could be the reason why days on the market and sale prices, although affected negatively, were not nearly as bad as what we saw with single-family homes. We expect demand for condos and townhouses to remain competitive since the inventory is still low, countering the effect of higher interest rates.

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!

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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