Palos Verdes Peninsula and South Bay Los Angeles 2011 Year End Real Estate Market Report

 
The following is my market report for the year ended December 31, 2011 for the South Bay Los Angeles and the Palos Verdes Peninsula:

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

Palos Verdes Peninsula City and Individual Neighborhood 4th Quarter 2011 Detailed Real Estate Activity

Palos Verdes Peninsula 2011 Year End Market Information

Manhattan Beach and Hermosa Beach 2011 Year End Market Information

Redondo Beach 2011 Year End Market Information

Torrance 2011 Year End Market Information

San Pedro 2011 Year End Market Information

 
 

 

 

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

 

The real estate market sales activity for the Palos Verdes Peninsula continued to improve during the 4rth quarter 2011, with overall sales volume up about 22% and the inventory of homes for sale down 28% compared to the fourth quarter 2010 sales, which is equal to only about 4 months of inventory. Pricing has continued to deteriorate, and  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. 88% of list price, a steep drop from the 92% of list price last quarter. The average price per sq. ft. for Palos Verdes homes sold in the fourth quarter 2011 compared to the fourth  quarter 2010, decreased approx. 8% overall, but varied city by city. Prices per sq. ft. are down approx. 25% on the Palos Verdes Peninsula from their peak in 2007 of approx. $600 per sq. ft..  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 figures included in the table below are only for the three months in the 4th Quarter :

 

   Palos Verdes and    South  Bay Los Angeles       4th Qtr. 2011
  Location 2011 4th Qtr Sales – Price Per
Sq. Ft.
2011 4th Qtr # of Houses Sold  Sales Price Per Sq. Ft.  % Change from 4th Qtr 2010 Sales Volume  & Change from 4th Qtr. 2010      Months Inventory
Palos Verdes Estates            $499       36         ( 12%)       3%              3
RPV, RHE & PVP              417       95          (   5%)      33%              4
Rolling Hills              749        4            21%      N/C            10
Manhattan Beach/Hermosa              572      79           ( 12%)     ( 10%)              3
Redondo Beach              431      65              3%     (  4%)              3
Torrance              333    197          (  5%)       14%              2
San Pedro              274     82           ( 10%)      23%              4

The total inventory of single family homes for sale in the cities listed above is down approx. 35% compared to the prior year, the sales activity is up 10%, and there is only 3 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. Average price per sq. ft. for homes sold in the 4th quarter 2011 for the cities listed above is down approx. 8& overall compared to the 4th quarter of 2010.

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. 3.9%, approx. .5% lower that at the end of last quarter.  Rates for loans between $417,000 and $625,500 (conforming jumbos) are approx. 4.0% ( a reduction of about .5% from last quarter end. 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 $625,500) have an average rate of approx. 4.5 to 4.75%, approx. the same as 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 11/15/2011, and assume a 20% down payment, no points and a FICO score of at least 740.

 

Fourth  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. 13% compared to the fourth  quarter of last year, and averaged $295 per sq. ft. during the 4th quarter 2011.. Prices in a few projects , such as the Palos Verdes Bay Club have fallen more than this.  Pricing during 2011 for condos and townhomes has  fluctuated widely, between $279 and $356 per sq. ft.

The inventory of condos and townhomes for sale  of 42 units at the end of the 4th quarter of 2011 continues to fall dramatically from its peak in March 2011 ( a 54% decrease) and is 37% lower than a year ago. Sales volume for the quarter ws also 11% higher than last year, which has resulted in a reduction to only a 4 month inventory of condos and townhomes for sale.

 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

 

 

 

 

 

For more information about Palos Verdes and South Bay Real Estate and buying and selling a home on the Palos Verdes Peninsula, visit my website at http://www.maureenmegowan.com . I try to make this the best real estate web blog in the South Bay Los Angeles and the Palos Verdes Peninsula. I would love to hear your comments or suggestions.

 

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. Bookmark the permalink.

2 Responses to Palos Verdes Peninsula and South Bay Los Angeles 2011 Year End Real Estate Market Report

  1. Do you think pricing will continue to fall in the upcoming year? There seems to be no end to this.

    • mmegowan says:

      I think that prices are definitely stabilizing. The market seems to be very hot now in the South Bay and Palos Verdes Peninsula with low inventory and a lot of showings and offers being made. The better parts of Torrance are also very hot now.

      Maureen Megowan Remax Palos Verdes Realty Your Real Estate Consultant For Life 310-541-6416 / 310-259-7124 (cell) http://www.maureenmegowan.com DRE Licensed # 01368971 Take a Seat. I’ll do the rest!

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