2012 Third 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 3rd quarter 2012, with overall sales volume up about 4% and the inventory of homes for sale down 39% compared to the third quarter 2011 sales, which is equal to only about 3 months of inventory. Pricing has started to stabilize, 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. 93% of list price. The average price per sq. ft. for Palos Verdes homes sold in the third quarter 2012 of $465 compared to the third quarter 2011, increased approx. 1% overall, but varied city by city. Prices per sq. ft. are down approx. 23% 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 total inventory of single family homes for sale in the cities listed above is down approx. 49% compared to the prior year, the sales activity is up 20%, and there is less than a 2 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 3rd quarter 2012 for the cities listed above is down approx. 2% overall compared to the 3rd quarter of 2011.
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. 3.25%, a significant decrease from 3.5% last quarter and 3.9% the previous quarter. Rates for 30 year loans between $417,000 and $625,500 (conforming jumbos) are approx. 3.5% , and 15 year loans are at approx. 3.0%.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 $625,500) have an average rate of approx. 4.2%. All of these rates are at or near record lows. 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 10/15/2012, and assume a 20% down payment, no points and a FICO score of at least 740.
Third Quarter 2012 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 increased approx. 1% compared to the third quarter of last year, and averaged $329 per sq. ft. during the 3rd quarter 2012. Average monthly price per sq. ft. appears to have stabilized over the last 4 months.
The inventory of condos and townhomes for sale of 36 units at the end of the 3rd quarter of 2012 continues to fall dramatically from its peak in March 2011 of 91 units ( a 60% decrease) .Sales volume for the quarter was also 13% higher than last year, which has resulted in a reduction to only a 2 month inventory of condos and townhomes for sale based upon the average monthly sales over the last quarter.
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.