As we bid farewell to the first quarter of 2025, the South Bay real estate market has shown mixed but promising signs of growth.
The quarter has wrapped up with substantial price increases in many cities, while others have faced declines or more modest changes. Whether you’re buying or selling, it’s important to understand the landscape across the various cities to make informed decisions.
The data provided here represents a rolling three-month period, compared year-over-year (Q1 2025 vs. Q1 2024), offering a clear view of trends and shifts. This approach allows for a more accurate comparison, accounting for the seasonal nature of real estate markets, and ensuring that we capture the most reliable snapshot of the market.
Let’s jump into the numbers…
Manhattan Beach
Manhattan Beach continues to dominate the South Bay market with significant price increases and a surge in closed sales.
Q1 Manhattan Beach Median Price UP 33.7%
- Q1 2025: $3,350,000
- Q1 2024: $2,505,000
The median home price has significantly increased, bringing it up to $3.35 million. And while the number is impressive, last year’s number is a fairly easy comp considering prices fell due to sky-high interest rates. Regardless, this is a strong indicator of ongoing demand in this upscale beach city where interest rates are still high.
Q1 Manhattan Beach Closed sales UP 45%
- Q1 2025: 87
- Q1 2024: 60
Sales activity in Manhattan Beach is also strong, with a whopping 45% increase in closed sales compared to last year. The recent L.A. wildfires have likely played a major part in the city’s demand, as it is a suitable substitute for many who lost their home in the Pacific Palisades.
Overall, Manhattan Beach’s home market is showcasing its strength. The fires without question boosted the early quarter, along with the early year enthusiasm from the stock market. The combination of near record high median prices and soaring sales suggests that Manhattan Beach’s market remains vibrant, resilient, and highly competitive.
Hermosa Beach
Hermosa Beach is also seeing strong performance in 2025, with big jumps in both median price and sales numbers.
Q1 Hermosa Beach Median Price UP 41.6%
- Q1 2025: $2,910,000
- Q1 2024: $2,055,000
Hermosa Beach had its “coming out party” as a major player in the South Bay real estate market, with a significant 41.6% year-over-year increase in median home prices. Again, up against easy come in Q1 of 2024, not only did Hermosa jump higher but it flew by its all-time record pricing by almost $400,000. At $2.91 million, Hermosa’s median price is quickly approaching that of its prestigious neighbor, Manhattan Beach, while offering a slightly more accessible price point for buyers. The price jump is astonishing and also potentially a result of fire-displaced buyers.
Q1 Hermosa Beach Closed sales UP 12.5%
- Q1 2025: 36
- Q1 2024: 32
Sales in Hermosa Beach are growing, albeit at a more moderate pace compared to Manhattan Beach. The 12.5% increase in closed sales suggests healthy buyer interest, although there may be less urgency than in the pricier Manhattan Beach market. Still, Hermosa Beach remains a hot ticket for buyers.
Redondo Beach
Redondo Beach presents a more stable picture, with slower price growth but impressive activity in terms of sales.
Q1 Redondo Beach Median Price UP 0.6%
- Q1 2025: $1,600,000
- Q1 2024: 1,590,000
Redondo Beach presents a more balanced picture. The median home price has only increased by 0.6%, signaling a market that each Beach City market is truly local and that buyers might be more affected by interest rates here and that fire-displaced buyers were mostly un-interested in Redondo Beach.
Q1 Redondo Beach Closed sales UP 44.7%
- Q1 2025: 136
- Q1 2024: 94
Where Redondo Beach shines is in its sales activity, which saw an impressive 44.7% increase in closed sales. This is one of the most significant jumps in the South Bay this quarter, signaling that buyers are still very active in the area due to its affordable price point relative to other beachside home offerings.
Palos Verdes
The Palos Verdes Peninsula showcases a more varied performance in Q1 2025, with some areas experiencing solid price growth, while others face significant downturns.
Q1 Palos Verdes Estates sales DOWN 8.4%
- 2025: $2,484,000
- 2024: $2,712,500
Q1 Rancho Palos Verdes UP 6.6%
- 2025: $1,746,000
- 2024: $1,637,500
Q1 Rolling Hills Estates UP 30.4%
- 2025: $2,200,000
- 2024: $1,687,500
The Palos Verdes Peninsula reveals a conflicting market in quarter one. Rancho Palos Verdes and Rolling Hills Estates are standing strong with price increases, with a major highlight going to RHE surging to its third highest median price on record, easily the stand-out city on The Hill. On the other hand, Palos Verdes Estates is facing some softness.
Q1 Palos Verdes Estates Closed sales DOWN 20.0%
- 2025: 32
- 2024: 40
Q1 Rancho Palos Verdes Closed sales UP 3.0%
- 2025: 68
- 2024: 66
Q1 Rolling Hills Estates Closed sales UP 5.0%
- 2025: 21
- 2024: 20
Inventory remains tight across the Palos Verdes Peninsula, with some areas experiencing minimal growth. Palos Verdes Estates has seen a decline in closed sales and inventory, which may be contributing to downward pricing trends. In contrast, Rolling Hills Estates has seen stable sales growth, even amid the price surge.
Final Thoughts
The first quarter of 2025 paints a picture of both growth and moderation across the South Bay. While Manhattan Beach and Hermosa Beach are seeing surging prices and growing sales, Redondo Beach and the Palos Verdes Peninsula offers a more varied outlook, with some areas showing resilience and others facing challenges. The dramatic impact of the recent wildfires cannot be overlooked, particularly in Manhattan Beach, where displaced buyers have driven demand well-beyond normal levels.
Will demand from the fire-displaced buyers continue?
Do high interest rates and tariff fears pour cold water on the market in Q2?
There are a lot of questions for the remainder of the 2025 South Bay housing market. I will continue to update here and on my podcast local market dynamics in real-time and broader economic factors that might shape the second quarter and beyond.
Have a great April!
Richard Haynes
DRE: 01779425
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The Richard Haynes Real Estate ShowA leader in South Bay real estate for the better part of a decade, Richard thrives as an advisor to his clients with over $248 million in sales as a broker or investment principal at his boutique agency, Haynes. Richard is known for his keen local market insights which have been featured in the L.A. Times, The Street, and Forbes, along with his weekly South Bay real estate blog. [read more]