South Bay and Palos Verdes Quarterly Market Update

The mortgage meltdown and huge volatility in the stock markets (the Dow down 2,400 points in one week, then up nearly 1,000 points today ) has obviously had a significant impact on the sale of homes. The average price per sq. ft. for homes sold in the third quarter 2008 compared to the peak in the third quarter 2007, has fallen much less in the South Bay beach cities, however, than in most markets in Southern California , especially on the PV Peninsula and Manhattan Beach & Hermosa Beach.  

 

Location

2008 3rd Qtr. Sales

% Change 3rd Qtr. 2007    

Days on Market

Months Inventory

 

Sales Price

Per Sq. Ft.

# of

Houses

Sales Price

Per Sq. Ft.

Sales Volume

 

 

 

Palos Verdes Peninsula     

 

                        

 

$549               

  

   113

 

( 9% )                    

 

( 29% )    

 

    57 

    

       9

Manhattan Beach/Hermosa

 

  688 

   104

( 12% )                 

( 2% )      

    57

       7

Redondo Beach

 

  457

     63

( 12% )                 

( 22% )    

    75

       5

Torrance

 

  412

   169

( 17% )                

( 1%)       

    52

       4

San Pedro

 

  351 

     55

( 18% )                

( 27% )    

    57

       11

 

For most of the last two decades, Los Angeles County has averaged an 8 month inventory, therefore for most of the South Bay; the number of months of inventory is not unusually high. Properties, on average, in the South Bay are selling for approx. 96% of list price. For detailed Market Reports by submarket / neighborhood, visit my website.

Communities where homes were primarily financed with no down payment variable rate loans, have seen the most loan defaults and resulting price declines, such as San Bernardino, where median home prices are down 40% compared to a year ago.

WHAT ARE MORE IMPORTANT – LOWER PRICES OR LOWER INTEREST RATES?   Hypothetically, if a home’s price fell an additional 10% from $500,000 to $450,000, but interest rates went up 1% point, your mortgage payment would be the same. Any advantage gained by waiting for prices to fall can easily be offset by a rise in interest rates. Inflationary pressures continue to increase, due to increases in gas and food prices. With increased inflation, come higher long term interest rates.

About mmegowan

I am a realtor with Remax Estate Properties in Palos Verdes Estates. Visit my website at http://www.maureenmegowan.com
This entry was posted in Uncategorized and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s