San Pedro Real Estate Market Recap | Nov ’23

NOVEMBER 2023 RECAP: Real estate in San Pedro, 90731 & 90732, experienced a slight increase in average home sale prices (+$43k), days on the market (+4), and a decrease in number of homes sold (-5) and interest rates (-.60%) compared to October. Let’s get into the details:

Residential (Houses & Condos) | Avg. Sale Price: $882k

November’s average home sale price increased by approximately $43,000, from $839k in Oct to $882k for Nov while the number of homes sold decreased to 24 properties. Sold Inventory has stayed consistent since February, but this is the second time since January that the number of homes sold has dipped below 30.

The time it takes to sell a home in San Pedro has inched up to 21 days for November compared to 17 in October. The average has been decreasing since peaking at 43 days in July. Lower inventory will likely result in higher demand for homes, so they could continue to sell with less than 3 weeks on the market. Interest rates saw an decrease in November as well, and are now well in the lower 7% range.

Looking at the chart above, the red bars and left axis represent the average sale price for housing for the given month, which has hovered between $750k and $950k per unit, but that was up until June when the average was approaching $1M. However, the following months have resulted in lower average sale prices in San Pedro, down to $882k for November 2023.

The blue line and right axis represent the average mortgage payment with 20% down (does not include HOA fees, taxes & insurance). With the drop in home sale prices, the average monthly mortgage for October increased slightly to $4,814/month.

With limited inventory, we are seeing more homes sell for OVER ASKING since MULTIPLE buyers are competing for the few homes available. For sellers, this is 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: $1.170M

Single-family homes in San Pedro experienced a sharp increase in average sale price for November 2023, up to $1.170M compared to $994k in October. The increase in average is due to the fact that 9 of the homes sold were over $1.050M and the two highest sales were each over $1.50M. This new average is a new high for the year!

The time it takes to sell a house in San Pedro stayed consistent over the last few months. November came in at 16 days, another new low for the year. More than half of the sold properties for November sold in less than two weeks.

With the exception of September and October, the average price for a house in San Pedro has stayed above $1M since June. The estimated mortgage for a house sold in November is roughly $6,386/month, or $595 more than in the previous month.

Condos & Townhomes | Avg Sale Price: $594K

The average sale price for a condo or townhouse in San Pedro decreased by approximately $26,000 in November compared to October, going from $619K to $594K.

Condo and Townhome sold inventory also has been flat for most of the year, hovering around 12 units sold, which is exactly what was sold in November. Condo prices in San Pedro look to be in decline with the averages swinging by $50k or more in either direction, as this segment sees the most demand from buyers.

The time it takes to sell a condo in San Pedro increased to 25 days for November compared to October. Interesting to see that number climb when rates dropped, though the winter season tends to slow down. Keep an eye on days on the market; the lower the number of days it takes to sell a property, the higher the demand for property.

Since Condos and townhomes are typically the most affordable properties, there is often more demand for them from buyers in this segment. Although July saw the average mortgage for a condo/townhouse fall below $3,000/month, the last few months have resulted in average mortgage payments above $3,000/month. The average mortgage for a condo in San Pedro for November 2023 was roughly $3,240. We expect demand for condos and townhouses to remain competitive since the inventory is still low, and should only get more competitive if interest rates continue to drop.

Outlook

Moving forward, we are expecting interest rates to stay somewhat consistent, which should help gain some confidence in the housing market. We are already in the 7.00% range as of early Dec, but perhaps the upcoming election will cause them to decrease further. 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 ready to compete, especially if you’re a first-time home buyer. Sellers have gained much of their leverage because there are plenty of qualified buyers and just not enough inventory. 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 but you will need to compete.

Sellers

Sellers in this market should be doing everything they can to distinguish their homes from others on the market. Cutting corners when selling your home is not advised, no matter what kind of market we are in. 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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