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Manhattan Beach

Real Estate Market, Valmonte Homes

Prices are up, Inventory is down, but the Summer Selling Season Gives Buyers Hope

May 24, 2016
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Let’s face it, if you are a buyer looking to move to Palos Verdes Estates, and you don’t have over $2 million, it’s a tough market out there.  The same goes for buyers in Manhattan Beach, Hermosa Beach, and increasingly Redondo Beach.  As for the beach cities, there are at least several lower priced options including condos and town homes that will get you location, views, and that coveted beach zip code many buyers are looking for (may I recommend 446 Palos Verdes Blvd) But if you don’t want to hear your neighbor’s toilet flush or their phone ring, buyers looking to “the Hill” are facing steep competition at the lower entry points to each neighborhood.

Taken as a whole, inventory is down compared to a year ago throughout the South Bay and Palos Verdes.  On the other hand prices are up over 4% in the general area and over 10% in the most popular neighborhoods.  If you are shopping at the entry point to any neighborhood, the competition is stiff, especially under $1.5m. However, there is an interesting trend recently reported by CoreLogic that we are seeing – rising inventory and fewer sales in the higher price ranges.  To illustrate this, look at Manhattan Beach where list prices are averaging $4.3m.  Compared to a year ago, available inventory (and months supply) has nearly doubled from 61 homes to 115 homes.  On the other hand, the number of closed sales remains steady around 31/month.  In Valmonte, where sold homes averaged $1.67m (3 month rolling average), inventory is down over 40% from a year ago and closed sales are up on a monthly basis.  Hmmnnn, are we starting to see signs of a bubble on the high end?

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2517 Via la Selva in Valmonte – ask $1,999,000, SOLD $2,067,000

Fortunately there is some hope on the horizon for those eager buyers as summer approaches.  In the past Valmonte has averaged around 12-13 available homes during the summer months . This summer bump is true for the beach cities as well.  But as prices climb, the buyer pool tends to shrink and homes sit on the market longer.  As a result, prices drop, typically as we head into the holidays and unsold inventory sits.  Is this what we have in store for our market?  Only time will tell, but for now, my buyers are still looking for that perfect Valmonte home for their family and there isn’t much available for them.

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101 Via Colusa – ask $1,250,000; SOLD $1,352,500!

If you are thinking of buying or selling a home, please contact Kyle Daniels, Ericson Beach Real Estate, 310.483.3998 or kyle@kyledanielsrealestate.com for a confidential consultation.

Valmonte Homes

3rd Quarter Valmonte Real Estate Market Report: Spoiler Alert: Prices Are Reaching New Highs!

October 16, 2015

Is it really fall?  It’s hard to believe amidst 85 degree weather that we’re getting ready for the days to slow down, stocking up on candy for the trick-or-treaters, and thinking about the coming holidays.  But like the weather, the real estate values in Valmonte are headed towards all-time highs.  The average sales price through September 30th is a record $1.546m – up over 14% from 2014.  On top of that, there have already been 45 sales through September 30th this year, compared to 34 homes sold in all of 2014.  Historically speaking, on a price/foot basic, prices have rallied 28% from market lows set in 2012 ($509/foot); however, the average price/foot is off 11% from market highs set in 2005 ($729/foot) and 2006 ($728/foot).

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Ericson Beach Real Estate Listing – 3025 Palos Verdes Drive North

How long does it take for a house to sell?  Average days on market (DOM) for sold homes is trending downward to 42 days for listings sold in the last three months.  This is down from an average of 102 DOM in January.  This decrease in DOM can be attributed to seasonal averages.  However, compared to 2014, the DOM has actually increased.  The longer days on market can be attributed to higher overall prices for the area as well as more available inventory.  Closing prices compared to asking price have returned to 98% of asking, an indicator that on average, houses are being marketed at fair prices.  Year over year this number has improved from 94%.

What’s ahead? Locally, demand remains steady, and as high prices in the South Bay beach cities continue to price out buyers, Palos Verdes Estates and surrounding areas can expect to see continued buyer interest.  What are the potential challenges? Price growth in the short term may face headwinds with rising mortgage interest rates and a limited number of qualified buyers as prices continue to climb while wages and job growth wane.  The result – we’ll likely see a leveling off in prices until more qualified buyers enter the market.

Valmonte Market Statistics

# of Homes Price Range Ave $/foot Average price
Active listings 10 $1.338m – $2.295m $770/foot $1,714,200
In Escrow 3 $1.475m – $1.699m $620/foot $1,574,333
Sold 45 $799k – $2.625m $656/foot $1,546,067
2014 Sales 34 $865k-$2.299m $656/foot $1,354,569