San Pedro Real Estate Market Recap | Sept ’23

SEPTEMBER 2023: Real estate in San Pedro, 90731 & 90732, experienced a decrease in average home sale prices (-$50k), days on the market (-2), and homes sold (-4) while seeing an increase in interest rates (+.20%) compared to August. Let’s get into the details:

Residential (Houses & Condos) | Avg. Sale Price: $824k

September’s average home sale price dropped by approximately $50,000, from $875k in Aug to $824k while the number of homes sold also decreased by 4 to 38 properties. Sold Inventory has stayed consistent since February, averaging about 38 home sales per month. August went over the average, but we are back in the high 30s and expect this number to fall further over the next few months.

The time it takes to sell a home in San Pedro has decreased for the second month in a row, from 42 days in July to 22 in August, and 20 for September. 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 September as well, and are now well into the 7.5% range, possibly approaching 7.75% or above.

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 $825k for September 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 September decreased slightly to $4,600/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: $984K

Single-family homes in San Pedro experienced a decrease in average sale price for September 2023, down to $984,747 compared to $1,038,000 in August. The continued decline of this average is beginning to push the trend line into a neutral position, meaning prices in San Pedro may be leveling off. Although prices are lower now in San Pedro than 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 continues to fall. 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. August home sales averaged 25 days on the market, and September came in at 20 days for single-family homes, a new 12-month low.

The average price for a house in San Pedro had stayed above $1M from June to August, but in September the average sale price for a house was just under $985,000. The estimated mortgage for a house sold in September is roughly $5,530/month, or $185 less than in the previous month.

Condos & Townhomes | Avg Sale Price: $548K

The average sale price for a condo or townhouse in San Pedro decreased by approximately $87,000 in September compared to August, going from $635K to $548k, a new 12-month low.

Condo and Townhome sold inventory also decreased, going from 17 units in August to 14 units sold in September. Condo prices in San Pedro look to be in slight decline with the lower averag, but could bounce back quickly, as this segment sees the most demand from buyers.

The time it takes to sell a condo in San Pedro had a slight increase in September compared to August, going from 19 to 20 days. This average is significantly lower than 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, August and September have both resulted in average mortgage payments above $3,000/month even with the lower sale price average. 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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