2014 4th Quarter Market Report Palos Verdes Peninsula and South Bay Single Family Homes
The real estate market sales activity for the Palos Verdes Peninsula maintained solid activity during the 4th quarter 2014 with overall sales volume up about 4% and the inventory of homes for sale up 53% compared to the fourth quarter 2013 sales, which is equal to about 3 months of inventory. Pricing has been increasing, however, 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 continuing low interest rates.Buyer demand for renovated homes has led to some homes receiving multiple offers.
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 fourth quarter 2014 of $586 compared to the fourth quarter 2013, increased approx.10% overall, but varied city by city. Prices per sq. ft. for the Palos Verdes Peninsula are near the peak in 2007 of approx. $600 per sq. ft..
Sales volume has averaged 52 homes sold per month during the 4th Quarter, a 4% increase over the 4th quarter of 2013. There are 144 homes listed for sale as of the end of December, up 35% compared to the same time last year. There are 46 homes in escrow at the end of the 4th quarter 2014.
The total inventory of single family homes for sale in the cities listed above is up approx. 30% compared to the prior year, and sales activity is also up 13%, and there is about 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 4th quarter 2014 for the cities listed above is up approx. 13% overall compared to the 4th quarter of 2013.
FINANCING (See our web blog at http://mmegowan.activerain.com/ for rate updates):
Interest rates for Conforming Loans ($417,000 and below) as of 1/15/2015 are at approx. 3,6%. Rates for 30 year loans between $417,000 and $625,500 (conforming jumbos) are approx. 3.75% , and 15 year loans are at approx. 2.9%. 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. 3.9%. All of these rates are historically very low. The spread in interest rates between conforming loans and jumbo loans has disappeared over the last year as more banks are participating in making jumbo loans. All rates above assume a 20% down payment, no points and a FICO score of at least 740. Rates can vary significantly between lenders.
For detailed market reports for each city in the South Bay and the Palos Verdes Peninsula, go to my market report web page at http://www.maureenmegowan.com/Pages/market-reports.aspx