San Pedro Real Estate
Market Recap | Apr ’23

The San Pedro housing market for April 2023 saw a decrease in the average sale price for homes, with inventory and interest rates falling slightly.

This month’s average sale price decreased by $40,000, going from $820,000 in March to $779,000 in April. Inventory in San Pedro has been consistent over the last three months though it is trending downward.

The time it takes to sell a home in San Pedro has decreased for the third month in a row, down to 23 days compared to 32 days in March. Interest rates saw a slight decrease this month, but overall have been basically flat since December, as can be seen in red line above.

Single-Family Homes | Avg. Sale Price: $920,583

Single-family homes in San Pedro experienced a slight decrease in sale price, down to $920,000 compared to $928,000 in March. This lower average is now pushing the trend line negative, meaning prices in San Pedro may be starting to drop. However, if inventory continues to decline, we expect prices to increase. That may be exactly what is starting to happen, as the time it takes to sell a home continues to fall, according to the chart below.

Days on the market for single-family homes continue to fall, down to 23 days for April compared with 39 in March. With less time on the market and less inventory to choose from, buyers will find themselves looking at higher prices simply because there is more demand than supply. A look at condos and townhomes specifically will tell a similar story.

Condos & Townhomes | Avg. Sale Price: $638,328

The average sale price for a condo or townhome in San Pedro increased by over $60,000 this month, going from $576,000 in March to $638,000 in April. Condo inventory also picked up, with six additional closings for a total of 18 units in April.

With April’s average San Pedro’s condo prices are trending even, though we expect them to increase over the next few months.

The time it takes to sell a condo in San Pedro increased slightly this month, going from 14 days in March to 24 in April.

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.

Buyers

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.

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!