San Pedro
Real Estate Market Recap | May ’23

San Pedro real estate experienced an increase in home sale prices (+$30k), inventory (+4 units), time on the market (+1 week), and interest rates (+.1%) compared to last month. Let’s get into the details:

SFR & Condos | Sale Price VS Homes Sold – San Pedro May ’23

May’s average sale price increased by approximately $30,000, from $779k in April to $809k in May. Inventory increased by roughly 10%, from 36 homes sold in April to 40 in May. Although rates have dramatically increased, prices are nearing the same levels as when rates were still under 4% back in March ’22.

SFR & Condos | DOM VS Interest Rates – San Pedro May ’23

The time it takes to sell a home in San Pedro has increased for the first time in three months, increasing by a week to a full month, 30 days, compared to 23 days in April. 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.

One new metric I wanted to share this month is the estimated monthly mortgage payment graph, which can tell us a bit about how affordable housing is (or isn’t).

SFR & Condos | Avg Sale Price Vs Mortgage Payment – San Pedro May ’23

The blue line and left axis represents the average sale price for housing for the given month, which has hovered between $700k and $950k per unit. The red columns and right axis represent the average mortgage payment with 20% down (does not include HOA fees, taxes & insurance).

Technically speaking, prices have come down since interest rates started increasing last year, going from a high of $950,000 in June ’22 to just over $800,000 as we enter the summer. It is pretty astonishing to think that if two buyers purchased at each of these times, they would likely have identical mortgage payments due to the difference in interest rates. So a difference of roughly $150,000 in the sale price can be the same as a rate change of 1.5% (5% to 6.5%).

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. 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 specifics below.

Single-Family Homes | Avg. Sale Price: $808,865

SFR | Avg Sale Price VS Units Sold – San Pedro May ’23

Single-family homes in San Pedro experienced a slight increase in sale price, up to $930,000 compared to $921,000 in April. This average is still pushing the trend line negative, meaning prices in San Pedro may be leveling off. However, recent sales on our team have resulted in multiple offers, especially starter properties so if inventory continues to remain low, we expect prices to increase further.

SFR | Avg DOM VS Interest Rates – San Pedro May ’23

Though interest rates and days on the market increased compared to last month, the time it takes to sell a home is still relatively short, coming in at just 28 days.

SFR | AVG Sale Price VS Mortgage Payment – San Pedro May ’23

Condos & Townhomes | Avg Sale Price: $660,700

The average sale price for a condominium or townhouse in San Pedro increased by approximately $22,000 compared to last month, going from $638k to $661k. Condo sold inventory was identical to last month with 18 units sold.

With this higher average, our trendline is now even, and will likely continue to trend upward as we predicted last month.

Condos | Avg DOM vs Interest Rates – San Pedro May ’23

The time it takes to sell a home in san pedro increased slightly for condos and townhomes, going from 24 days in April to 33 in May, which can be considered significant since rates increased.

Since Condos & Townhomes are typically the most affordable properties, there is often more demand for them from buyers. 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. Inventory will be key in determining what direction the market will head. Keep a close eye on inventory, as that will likely determine which way the market goes; regardless of rates!

Buyers

Buyers in this market should be negotiating deals, but if you’re a first time home buyer, expect competition. 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. 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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