Quarterly Real Estate Market Report for the Second Quarter 2011 for the Palos Verdes Peninsula and the South Bay Beach Cities

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Real Estate Agent with Remax Estate Properties - BRE #01368971 DRE #01368971

The following is my Quarterly Real Estate Market Report for the Second Quarter 2011 for the Palos Verdes Peninsula and the South Bay Beach Cities 

Simply Click on the Market Report Desired Below ( Note that Market Information Reports are Year to Date Figures ) :


Palos Verdes Peninsula 2011 2nd Qtr. Market Information

Palos Verdes Peninsula Neighborhood 2nd Quarter 2011 Detailed Real Estate Activity

Manhattan Beach and Hermosa Beach 2nd Qtr. 2011 Market Information

Redondo Beach 2nd Qtr 2011 Market Information

Torrance 2nd Qtr 2011 Market Information

San Pedro 2nd Qtr Market Information


2011 Second Quarter Market Report Palos Verdes Peninsula and South Bay Single Family Homes 

The real estate market activity for the Palos Verdes Peninsula continued to stabilize during the 2nd quarter 2011, with overall sales volume almost identical compared to the second quarter 2010 sales.  Buyers who can get financing are actively looking and aggressively offering where they see a deal. Sellers who are motivated to move are pricing their homes to sell. Buyers are taking advantage of significant discounts and continuing record low interest rates.

PRICE CHANGES:

Properties, on average, on the Palos Verdes Peninsula are selling for approx. 94% of list price. The average price per sq. ft. for Palos Verdes homes sold in the second quarter 2011 compared to the second quarter 2010, increased approx. 2% overall, but varied city by city. Prices per sq. ft. are down approx. 18% on the Palos Verdes Peninsula from their peak in 2006.  Prices in the South Bay, however, have decreased much less than other areas in Southern California due to the relative few number of foreclosures compared to other inland areas.  This market is now considered a stabile market by loan underwriters.

The following is a chart of the sales price per sq. ft. for homes on the Palos Verdes Peninsula. Prices do seem to have stabilized. ( Note: I prefer to analyze average price per sq. ft. trends as the more often quoted "median" sales price is highly dependent on the mix of homes sold between less expensive homes and higher-end homes):
 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

Jun. 11

May. 11

% Change

Jun. 11

Jun. 10

% Change

Apr. 11 to Jun. 11

Apr. 10 to Jun. 10

% Change

495

490

0.9% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

495

493

0.5% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

497

489

1.6% http://www.trendgraphix.com/FactsAndTrends/images/up.gif


The following is a chart of the number of single family homes for sale, sold, and currently in escrow ( Pended)  on the Palos Verdes Peninsula. The number of homes for sale on the Palos Verdes Peninsula is down approx. 8 % compared to this time last year.  Sales volume appears to have stabilized however pending sales ( properties in escrow ) are up.

 
 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jun. 11

May. 11

% Change

Jun. 11

Jun. 10

% Change

Apr. 11 to Jun. 11

Apr. 10 to Jun. 10

% Change

For Sale

280

289

-3.1% http://www.trendgraphix.com/FactsAndTrends/images/down.gif

280

306

-8.5% http://www.trendgraphix.com/FactsAndTrends/images/down.gif

283

305

-7.2% http://www.trendgraphix.com/FactsAndTrends/images/down.gif

Sold

52

60

-13.3% http://www.trendgraphix.com/FactsAndTrends/images/down.gif

52

50

4% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

51

51

0%    

Pended

67

52

28.8% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

67

52

28.8% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

61

50

22% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

 

The figures included in the table below are only for the three months in the 2nd Quarter :

     

 

  Location

2011 Sales Price Per
Sq. Ft.

2011 # of Houses

Sales Price Per Sq. Ft.

% change from 2010

Sales Volume

% change from 2010

  Months Inventory
Palos Verdes Estates               $586      49              7%        ( 9%)           5
RPV, RHE & PVP                 433      99            ( 2%)          5%           5
Rolling Hills                 647        7            ( 5%)        40%           6
Manhattan Beach/Hermosa                 881    127             49%        11%           4
Redondo Beach                 450      81             (1%)        (7%)           4
Torrance                 346    203             ( 6%)       (10%)           4
San Pedro                 283      86             (11%)           6%           4

The large increase in price per square foot for homes sold in Manhattan Beach and Hermosa Beach noted above is due to a large increase in the number of homes sold in the very expensive "sand sections" of these two cities, an increase from 21 homes sold in the second quarter of 2010 to 54 homes sold in these areas during the second quarter of 2011. The homes in these areas close to the beach are often over $1,000 per sq. ft.

INVENTORY - The total inventory of single family homes for sale in the cities listed above is down approx. 16% compared to the prior year and averages only 4 months of inventory. For most of the last two decades, L.A. County has averaged an 8 month inventory. Homes in the lower end of the price range have also been selling faster than the higher priced homes.

FINANCING   (See our web blog at http://mmegowan.activerain.com/ for rate updates):

Interest rates for Conforming Loans ($417,000 and below) are at approx. 4.75%, approx. the same as of end of last quarter.  Rates for loans between $417,000 and $729,750 (conforming jumbos) are approx. 4.9- 5.0%. Conforming loans generally require a 20% down payment (less for FHA or VA loans). Interest rates on Jumbo 30 year fixed rate mortgages (loans in excess of $729,750) have an average rate of approx. 5.3%, an improvement over the prior quarter.  The spread in interest rates between conforming loans and jumbo loans has narrowed considerably over the last year or so as more banks are participating in making jumbo loans. Jumbo loans require a higher down payment of 25 to 30%. All rates above are APR  rates as of 6/15/2011, and assume a 20% down payment, a 1 point fee and a FICO score of at least 700.hange
ange

Second  Quarter 2011 Market Analysis for Palos Verdes Peninsula Condos and Townhomes

The average price per sq. ft. for townhomes and condos on the Palos Verdes Peninsula has fallen approx. 7% compared to the second quarter of last year. Prices in a few projects , such as the Palos Verdes Bay Club have fallen more than this.  Pricing has improved for condos and townhomes during the second quarter of 2011 after dropping significantly during the prior quarter.

 

 

 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jun. 11

May. 11

% Change

Jun. 11

Jun. 10

% Change

Apr. 11 to Jun. 11

Apr. 10 to Jun. 10

% Change

Avg. Sq. Ft. Price

334

304

10% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

334

363

-7.8% http://www.trendgraphix.com/FactsAndTrends/images/down.gif

327

352

-7% http://www.trendgraphix.com/FactsAndTrends/images/down.gif

 

As far as picking up condos in this market for less than construction costs,  the average price per sq. ft. paid recently for condos and townhomes in Palos Verdes has been approx. $327 per sq. ft.  I would not consider this price to be significantly less than replacement cost including the cost of the land.

The following is a chart of Palos Verdes Peninsula condos and townhomes for sale and sold over the last year
 

 
 

Curnt vs. Prev Month

Curnt vs. Same Month 1 Yr Ago

Curnt vs. Same Qtr 1 Yr Ago

 

Jun. 11

May. 11

% Change

Jun. 11

Jun. 10

% Change

Apr. 11 to Jun. 11

Apr. 10 to Jun. 10

% Change

For Sale

68

73

-6.8% http://www.trendgraphix.com/FactsAndTrends/images/down.gif

68

73

-6.8% http://www.trendgraphix.com/FactsAndTrends/images/down.gif

76

75

1.3% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

Sold

17

12

41.7% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

17

16

6.3% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

13

15

-13.3% http://www.trendgraphix.com/FactsAndTrends/images/down.gif

Pended

19

15

26.7% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

19

10

90% http://www.trendgraphix.com/FactsAndTrends/images/up.gif

17

15

13.3% http://www.trendgraphix.com/FactsAndTrends/images/up.gif


I have been very involved in the condo and townhome market on the Palos Verdes Peninsula. You can see that by "Googling" the search term " Palos Verdes Condos"  and you will see that my website is the first listing on page one of the search results. To check out the various condo and townhome projects on the Palos Verdes Peninsula, see the following link on my website: PV Condos & Townhomes / Townhouses.  Each of these project descriptions have an analysis of recent prices paid for sales in each project.  You can also see the latest listings for condos and townhomes in Palos Verdes on my website at the following link:  MLS Listings - South Bay and PV

 
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