The overall South Bay Los Angeles real estate market continues to moderate, with the average number of days a property is on the market, the price per square foot, and the discounting from listing price all moving in a negative direction . The average number of days on the market has reached about 40 days, an increase of just over 30 days from last August. Properties over $1 million have an average days on market approaching 50 days, while lower priced properties average in the mid 30 days on the market range. The average price per square foot of properties sold has pulled back slightly from $556/sf to about $545/sf in December. The average price per square foot, however actually increased in the Beach Cities, remained stable for the Palos Verdes Peninsula, and continued a three month declining trend in Torrance. The average discounting of the list sales price is now approx. 2.85%, the highest in over a year. Discounting is most pronounced in properties in excess of $1 million.
It is difficult to determine if the slow down in the market is due to normal seasonal activity or due to a general decline in the residential real estate markets many pundits have been predicting. We should have a better read on the direction the market is taking in the early spring, however the overall market still seems to be remaining relatively stable.
The number of properties sold on the Palos Verdes Peninsula for the full year 2005 decreased approx. 11.5% from the same period in 2004 (605 units sold in 2005 versus 684 units sold in 2004), however the average price per square foot increased approx 18% to $563/sf. The rate of increase in price, however, is moderating, as the average price per sq. ft. for properties sold in the Palos Verdes Peninsula increased only approx. 1.4% in the fourth quarter of 2005. The largest percentage increase in price per square foot over 2004 occurred in the Valmonte (32% increase) and the Monte Malage (30% increase) neighborhoods.
Source: Ron Becker of RB Innovations, an appraisal firm, and Remax Palos Verdes research