It is hard to believe we’re already in the fall season and have just wrapped up the third quarter of 2024. This year has flown by! If you’re a data enthusiast like me, you probably look forward to this quarterly blog post as much as I do.
Please note, the data below reflects a rolling three-month snapshot, compared year-over-year, to provide a comprehensive view of the quarter. This approach allows for a more accurate comparison with the same period in 2023, especially given the seasonal nature of residential real estate.
There are few surprises in this quarter’s report and not much negativity to speak of throughout. Let’s dive in…
Manhattan Beach
Manhattan Beach experienced the most volatility of any city on our list this year. In Q1, prices declined, followed by a rebound in Q2. However, in Q3, we’ve seen another downturn in prices.
- Manhattan Beach Q3 Median Price: DOWN 3.7%
- Q3 of 2024: $2,750,000
- Q3 of 2023: $2,805,000
What’s interesting is the 2023 baseline median home price did not really move up or down, it is this 2024 quarter’s number that saw a fairly significant drop sequentially that brought us to a depreciating number in Manhattan Beach.
All that said, it is a small percentage drop for one of the South Bay’s most expensive cities and not overly concerning.
Sales were also down slightly in MB. See below:
- Manhattan Beach Q3 Closed Sales: DOWN 3.6%
- Q3 of 2024: 81 sales
- Q3 of 2023: 84 sales
Manhattan Beach was basically flat on Q3 sales.
Active inventory is currently within its three-year range, but it stands at a higher level compared to 2022 and 2023. This is definitely a trend to monitor as we approach the end of the year.
Palos Verdes Peninsula
Surprisingly, the whole Palos Verdes Hill saw median prices rise across the board with both Palos Verdes Estates and Rancho Palos Verdes up double-digits.
- Palos Verdes Estates Q3 Median Price: UP 17.0%
- Q3 of 2024: $2,750,000
- Q3 of 2023: $2,350,000
- Rancho Palos Verdes Q3 Median Price: UP 17.2%
- Q3 of 2024: $1,770,000
- Q3 of 2023: $1,510,000
- Rolling Hills Estates Q3 Median Price: UP 4.9%
- Q3 of 2024: $1,887,500
- Q3 of 2023: $1,800,000
Palos Verdes Estates jumped by 17% year-over-year, keeping with the sequential trend from last quarter. After a disappointing 2023 when it comes to median prices, Palos Verdes Estates has really come back strong in 2024.
Rancho Palos Verdes flipped a small drop from last quarter to a large gain of 17.2%. What’s more, Rancho Palos Verdes is just a few small percentage points away from all-time highs in median price.
Rolling Hills Estates is also up, albeit in the single-digit range, but nonetheless, a nice change in course after being down over 18% sequentially last quarter.
Now onto the sales numbers:
- Palos Verdes Estates Q3 Closed Sales: DOWN 10.8%
- Q3 of 2024: 33 sales
- Q3 of 2023: 37 sales
- Rancho Palos Verdes Q3 Closed Sales: UP 19.8%
- Q3 of 2024: 97 sales
- Q3 of 2023: 81 sales
- Rolling Hills Estates Q3 Closed Sales: DOWN 4.0%
- Q3 of 2024: 24 sales
- Q3 of 2023: 25 sales
The data presents a mixed picture, and we’ll have to wait until year-end to see how it unfolds.
Inventory across the Palos Verdes Peninsula remains historically low; however, Rancho Palos Verdes is showing a significant upward trend that if it continues, could have an impact on the home market.
Hermosa Beach
Steady Hermosa Beach completed a nice end to the third quarter.
- Hermosa Beach Q3 Median Price: UP 3.9%
- Q3 of 2024: $2,250,000
- Q3 of 2023: $2,165,000
This trend reflects a gradual yet steady increase in the small beach city. With inventory levels remaining historically low, the supply-demand imbalance persists, driving prices upward over time.
Let’s now look at sales:
- Hermosa Beach Q3 Closed Sales: UP 9.3%
- Q3 of 2024: 47 sales
- Q3 of 2023: 43 sales
More deals compared to the same time last year, which is another healthy sign for this smaller beach-side home market.
Redondo Beach
Please note, these calculations also include Hollywood’s Riviera’s Redondo PO which is technically Torrance.
The South Bay’s most affordable beach city saw its prices surge higher in Q1 and Q2, and while “surge higher” is not the correct term for this quarter, Redondo Beach continued its growing median price trend, if ever so slightly.
- Redondo Beach Q3 Median Price: UP 1.7%
- Q3 of 2024: $1,460,000
- Q3 of 2023: $1,435,000
These are the sales numbers below:
- Redondo Beach Q2 Closed Sales: UP 0.6%
- Q3 of 2024: 155 sales
- Q3 of 2023: 154 sales
Redondo Beach has had an impressive 2024, and this quarter’s data reinforces that positive outlook. Inventory levels remain consistent with the city’s long-term average and are beginning to trend slightly upward. As always, the year-end figures will provide the most insight into the overall market direction.
Final Thoughts
It’s a positive narrative all around! Median home prices in our South Bay cities have increased, with the exception of Manhattan Beach—an encouraging sign overall.
The local housing market appears to be on solid ground, and if interest rates continue to decline, it could provide further stability despite the significant affordability challenges we face. And while I didn’t include the inventory numbers in this post (that will be covered in a future blog), I can confidently say there’s no surge in supply relative to long-term trends.
In conclusion, this quarterly report was solid—if a bit uneventful—which is actually a good thing as we move toward the end of the year. Here’s hoping for continued stability in our markets.
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]