As 2026 is moving along at what feels like hyper speed, it’s worth taking a quick pause to reflect on how our South Bay real estate markets actually performed last year. There were plenty of shifting narratives throughout 2025, but now that the full calendar year is behind us, we have a clear data set that tells the real story.
Here is the breakdown, city by city, looking at the 12-month rolling data from December 2025 compared to December 2024.
Manhattan Beach
Median Price: $3,325,000 → Up 9.9%
Closed Sales: 325 → Up 6.9%
Manhattan Beach came roaring back in 2025. Nearly 10 percent price appreciation and more homes sold compared to the year prior is no small accomplishment in a high-rate environment. This market was hit by some volatility in 2023, saw partial recovery in 2024, and then made a full statement in 2025. Demand came back strong, and buyers proved they are still willing to pay a premium for prime coastal property.
Hermosa Beach
Median Price: $2,402,500 → Up 6.8%
Closed Sales: 154 → Down 8.3%
Hermosa remained steady and strong, although not as active. Prices continued their slow and steady climb, but fewer transactions took place. This feels like a classic case of tight inventory, where demand was still present but opportunities to buy were limited. Sellers likely held onto their homes, and buyers had fewer chances to make a move.
Redondo Beach
Median Price: $1,590,000 → Up 4.8%
Closed Sales: 640 → Up 11.7%
Redondo Beach was one of the busiest markets in the South Bay. A nearly 12 percent jump in sales is impressive on its own, and paired with nearly 5 percent price growth, it shows just how much activity this market saw. Redondo continues to attract buyers looking for value and diversity in housing, and 2025 proved that it still has plenty of runway.
Palos Verdes Estates
Median Price: $2,566,500 → Down 7.0%
Closed Sales: 154 → Up 6.9%
Palos Verdes Estates was one of the few cities to see a decline in pricing last year. After a big rebound in 2024, the market cooled. Even so, more homes sold, which suggests that buyer interest did not disappear. Instead, the price pullback may have opened the door for more cautious buyers to finally make their move.
Rancho Palos Verdes
Median Price: $1,753,750 → Up 0.8%
Closed Sales: 396 → Up 5.6%
Rancho Palos Verdes was the picture of balance. Price appreciation was mild, and sales volume rose at a healthy pace. The steady pace of this market reflects its appeal to buyers looking for space, value, and lifestyle without the premium pricing of some neighboring cities. It is not flashy, but it is solid.
Rolling Hills Estates
Median Price: $1,795,000 → Up 7.9%
Closed Sales: 78 → Down 11.4%
Rolling Hills Estates had one of the strongest price performances on the Hill. A nearly 8 percent gain shows strong demand, even as sales dipped. Like Hermosa, this was likely more about limited listings than lack of interest. Buyers were clearly willing to pay a premium when the right homes hit the market.
Rolling Hills
Median Price: $3,600,000 → Down 28.0%
Closed Sales: 21 → Up 23.5%
Rolling Hills saw the largest drop in pricing, but context matters here. This market is extremely low volume, and just a handful of sales can swing the numbers dramatically. After an exceptional 2024, prices simply recalibrated. Interestingly, more homes did sell, which is a rare outcome for this exclusive gated community.
Final Thoughts
The 2025 South Bay housing market showed broad strength with only a few soft spots. Manhattan Beach and Redondo Beach stood out for both price growth and transaction volume. Hermosa and Rolling Hills Estates posted quiet but meaningful gains. Palos Verdes Estates and Rolling Hills saw pricing pull back, but activity remained healthy.
Despite high mortgage rates and affordability concerns, the market proved resilient. Buyers were still making moves, and well-located homes continued to command strong prices.
As 2026 unfolds, we will be watching closely to see whether this momentum continues, especially if interest rates shift or inventory trends change. Based on what we just saw in 2025, South Bay real estate remains in a strong position.
Richard Haynes
DRE: 01779425
For more South Bay real estate insights, subscribe and follow Richard’s social channels below:
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]