Summary: Rising inventory, homes are selling faster, and sellers are listing at realistic prices
Real Estate for the first quarter of 2017 in Valmonte has started out hot out of the gate. Compared to Q1 of 2016 we are seeing the following trends in Valmonte:
- New listings are up 62% YOY
- Closed sales are up 56% YOY
- The median sales price is stable at $1.47m
- Homes are selling 25% faster than compared to a year ago
- Homes are selling at 99% of the list price, with 6 of 13 selling over the asking price
The same trends are in line throughout PVE – sales are up, median home prices are slightly higher, and homes are selling faster than in Q1 2016.
***YOY – year over year
First Quarter 2017 Valmonte Sales
|SOLD||Address||Sold Price||List Price||Sales to List %||Price/foot||Beds||Bath||House||Lot||DOM||Sold Date|
|3700||Palos Verdes Drive N||$1,070,000||$1,175,000||91.06%||$587||3||2||1822||7630||4||2/28/2017|
|3705||Via La Selva||$1,476,000||$1,490,000||99.06%||$609||4||3||2423||6358||42||3/30/2017|
|3213||Paseo Del Campo||$1,508,500||$1,335,000||113.00%||$688||3||2||2193||14727||9||2/17/2017|
|3325||Palos Verdes Drive N||$1,531,000||$1,549,000||98.84%||$695||3||3||2203||8633||0||1/18/2017|
Luxury Markets Are Shining
We are seeing an uptick in pending sales in the luxury markets across the entire LA area, including Palos Verdes Estates, Manhattan Beach, and the Westside. The chart below illustrates the quarterly market changes in the South Bay since 2008 (note the steep increase in Manhattan Beach, possibly signaling a new rally in home prices). We attribute this to several factors – increasing confidence in the economy, buyers “getting off the fence” to get ahead of rising mortgage rates, and sellers pricing homes closer to the perceived market value. In Valmonte, the lowest priced sale is currently $1.070m, compared to $900k in 2016, and there are currently 8 homes sold or in escrow over $2m, compared to 10 total home sales priced $2m or greater in all of 2016. Price points near or below the median in each area are seeing heavy buying activity, often with multiple offers at prices above the asking price.
2017, Is This the Year to Sell?
While 2016 gave us new record prices, sales were down slightly compared to 2015, but 2017 appears to be on track to be one of the best years for sellers since the last bull market from 2002-2006. According to economists at Deutsche Bank, “We expect the housing sector to remain on firm footing despite the increase in interest rates, due to the health of the labor market and household balance sheets, and the easing of lending standards for residential mortgages.” Locally, with continued low inventory and eager buyers, this may be the best time to sell that we’ll see for a while.