The third quarter of 2025 is officially in the books, and the South Bay market showed a blend of resilience and sector-specific variation. While some neighborhoods saw dramatic price increases, others experienced minor pullbacks. Overall, the market tilted positive, reflecting a seasonal rhythm more in line with traditional expectations after a topsy-turvy first half of the year.
In this quarterly blog, I’ll explore each South Bay city and its top submarkets, spotlighting the highest and lowest sales to reveal where demand is growing and momentum is shifting.
Manhattan Beach
Manhattan Beach’s median sale price jumped a remarkable 26.9% to $3,425,000, driven by extraordinary strength in the Tree Section (+56.9%) and Hill Section (+40.7%). In contrast, the Sand Section experienced a modest decline of 4.7%, illustrating selective softness at the higher end.
- Highest Sale: 108 The Strand at $16,750,000, underscoring The Strand’s commanding position as the prime luxury corridor and the city’s top sales for the quarter.
- Lowest Sale: 1311 Manhattan Beach Boulevard Unit #2 at $955,000, offering a rare affordable entry point amidst a high-value market.
The Strand’s dominance increased sharply this quarter, grabbing the top four highest sales in Manhattan Beach and making a clear statement about buyer priorities in luxury oceanfront living.
Hermosa Beach
Hermosa’s market was more fragmented with an overall slight dip of 2.2%. The East Section led the decline at -6.2%, yet the Sand Section held strong with an 11.8% increase, and the Valley surged 55.3%, revealing pockets of intense demand even in smaller neighborhoods.
- Highest Sale: 1932 The Strand at $14,400,000, marking Hermosa’s premium offerings as increasingly competitive on a luxury scale.
- Lowest Sale: 848 1st Street at $850,000, demonstrating available affordability near the coast.
This mixed performance highlights Hermosa’s diversity, where buyers can find both upscale gems and more attainable homes within close proximity.
Redondo Beach
Redondo Beach maintained steady momentum, posting a 9.1% year-over-year gain. North Redondo and Golden Hills led the appreciation, climbing 10.4% and 14.6%, respectively, while South Redondo followed with a solid 7.5%. This consistent upward movement reflects ongoing demand across entry-level homes and premium view properties alike.
- Highest Sale: 631 Paseo De La Playa at $9,700,000, a blufftop estate capturing panoramic ocean views.
- Lowest Sale: 2750 Artesia Boulevard Unit #362, $487,500, serving as one of the market’s more budget-friendly options.
Redondo’s broad price range continues to attract a diverse buyer base looking for variety in both price and lifestyle.
Palos Verdes Peninsula
The Peninsula showed a more mixed picture:
- Palos Verdes Estates (PVE): Median price fell significantly by 12.7% to $2,400,000. The quarter’s high sale at 603 Paseo Del Mar at $9,700,000 contrasted with a more modest low sale at 2322 Palos Verdes Drive W Unit #201 for $902,000.
- Rancho Palos Verdes (RPV): A modest rise of 1.7%, with highs at 20 Via Del Cielo ($5,120,000) and lows at 630 Ravenspur Drive Unit #209 ($545,000), showing stability amidst broader shifts.
- Rolling Hills Estates (RHE): Median declined 2.0% to $1,850,000. The highest-priced sale was 42 Empty Saddle Road at $3,450,000, while the lowest closed at 3605 W Hidden Lane Unit #118 for $499,000.
These varied movements reflect submarket-specific factors including price tier sensitivity, inventory constraints, and buyer preferences in luxury versus mid-tier segments.
What This Means Going Forward
The Q3 2025 data paints a South Bay market in motion—but with clear pockets of strength balanced by selective softness. The impressive gains in neighborhoods like Manhattan Beach’s Tree and Hill Sections, as well as Hermosa’s Valley area, reveal where demand is concentrated, especially among buyers seeking views, upgrades, and privacy.
Additionally, affordability edges remain at play, seen most notably in entry-level sales across Redondo and certain condo sectors, offering opportunities for diverse buyer groups.
As interest rates remain a key wild card and affordability challenges persist, the market is continuing its seasonal adjustment. As pent-up demand and limited inventory are still shaping transactions, expect continued selective price growth and a broad spectrum of activity in the coming quarters.