San Pedro Real Estate Market Recap | Oct ’23

OCTOBER 2023: Real estate in San Pedro, 90731 & 90732, experienced a slight increase in average home sale prices (+$15k), a decrease in days on the market (-3), and decrease in number of homes sold (-9) while seeing an increase in interest rates (+.40%) compared to September. Let’s get into the details:

Residential (Houses & Condos) | Avg. Sale Price: $839k

October’s average home sale price increased by approximately $15,000, from $824k in Sept to $839k for october while the number of homes sold decreased by 9 to 29 properties. Sold Inventory has stayed consistent since February, but this is the first 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 decreased, down to 17 days for October. The average has been decreasing since peaking at 42 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 increase in October as well, and are now well into the high 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 $839k for October 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 $4,880/month (+$250).

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: $994K

Single-family homes in San Pedro experienced a slight increase in average sale price for October 2023, up to $994k compared to $985k in September. The decline of this average in recent months is beginning to push the trend line into a neutral position, meaning prices in San Pedro may be leveling off. Although prices are about the same now in San Pedro as they were a year ago, interest rates have increased by nearly 2%.

Although interest rates increased compared to last month, the time it takes to sell a house in San Pedro stayed consistent over the last two months. July came in at 45 days due to a number of new construction homes that were on the market for a very long time. Ignoring those, the average would have been 25 days, which shows that inventory is selling. September home sales averaged 20 days on the market, and October came in at 20 days for single-family homes, matching the 12-month low.

The average price for a house in San Pedro had stayed above $1M from June to August, but in October the average sale price for a house was again close to the $1M mark, coming in at $994K. The estimated mortgage for a house sold in October is roughly $5,790/month, or $255 more than in the previous month.

Condos & Townhomes | Avg Sale Price: $619K

The average sale price for a condo or townhouse in San Pedro increased by approximately $71,000 in October compared to September, going from $548K to $619K.

Condo and Townhome sold inventory also decreased, going from 14 units in September to 12 units sold in October. 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 decreased by a week in October compared to September, going from 20 to 13 days. This average is a new low in the 12-month moving average for days on the market for San Pedro condos, which is usually around 32 days. 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 October 2023 was roughly $3,600. 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 interest rates to stay somewhat consistent, which should help gain some confidence in the housing market. We are already in the 7.5% range, but perhaps the upcoming election will cause them to decrease. 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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