|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 ) :
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.
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.
|Palos Verdes and||South Bay Los Angeles||4th Qtr. 2011|
|Location||2011 4th Qtr Sales – Price Per
|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|
|Manhattan Beach/Hermosa||572||79||( 12%)||( 10%)||3|
|Redondo Beach||431||65||3%||( 4%)||3|
|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.
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.