The San Pedro housing market for March 2023 saw an increase in the average sale price of homes, indicating that low inventory may be putting pressure on home prices, despite increasing rates.
This month’s average sale price increased by more than $60,000, up to $820,000 from $757,000 last month. 39 homes sold in San Pedro in March, just 2 less than last month.
Rates have been somewhat consistent over the last 3 months, staying between 6.40% and 6.75%. If rates remain in this range for the spring and summer, look for buyer confidence to increase, resulting in a stronger market.
Next, let’s look at single-family homes specifically.
The average price for a single-family home in San Pedro has increased compared to last month.
With March’s average sale price, San Pedro’s tend line for home prices shows a slight downward trend, something we had not seen for years.
The time it takes to sell a house in San Pedro decreased this month, coming in at 39 days compared to 53 for February. It is worth noting that last month’s average was skewed a bit due to some listings that were on the market for a very long time. 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. With rates staying somewhat consistent, days on market seems to be settling near the 40-day range. It will be interesting to see how the single-family market responds to demand, rates, and inventory moving forward.
Next up, let’s look at condominiums and townhouses.
The average sale price for a condo or townhouse in San Pedro decreased slightly compared to February ’22.
March’s sale price average for condos and townhouses kept the trend line level for sale prices, decreasing by about $5,000 compared to last month. With the new average, prices continue trending evenly, even though the number of condos sold more than declined from 19 to 12 condos sold.
The amount of time it takes to sell a condo or townhouse in San Pedro decreased this month, falling to just 14 days compared to 34 days in February.
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. This can be confirmed by the trend lines for both property types.
We expect demand for condos and townhouses to remain competitive since the inventory is still low, countering the effect of higher interest rates.
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 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. Don’t forget to look into the new loan programs available for first-time buyers!
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!
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