Each quarter I mail out a newsletter to my clients with a recap of the South Bay real estate market. Now that the third quarter of 2018 has come to an end, I thought I would give all my readers a sneak peek and show some interesting data points from the MLS.
Palos Verdes Peninsula
Affordable homes have been trending in Palos Verdes the past few years. Rancho Palos Verdes tends to offer some of the most affordable real estate on The Hill and was on fire during the first three quarters of 2017. This year, Rancho Palos Verdes price gains seem to be decelerating and up only 3 percent.
After price declines for the past three years, Rolling Hills jumped 20 percent on significantly higher sales through the first three quarters of 2018 compared to the same period in 2017. The city “Behind the Gates” has a limited affluent market, so using long term trends is always best. That said, this increase was much needed for this sub-market.
Redondo Beach
North Redondo Beach prices were up 11 percent through the first three quarters of 2018 versus the same period in 2017. Again, affordable real estate is in high demand and climbing in price. That said, sales dropped by a shocking 28 percent, which could suggest weakness…or perhaps limited inventory?
South Redondo Beach had two record (standard lot) sales on The Avenues at $3.4 and $3.2 million. Even with those sales, South Redondo still had four one-bedroom condo sales in the $400k range and five two-bedroom condo sales in the $500k range. Redondo Beach is a city that truly offers housing for all income levels.
Hermosa Beach
According to the data, Hermosa Beach is a tale of two asset types: single-family homes and condos/townhomes.
Single-family home prices are down 7 percent. There were 24 percent less sales through the first three quarters of 2018 when compared to the same period in 2017. Conversely, condo/townhome prices are up a whopping 22 percent on stronger sales based on the same period as the single-family homes.
Manhattan Beach
The Hill Section remains one of the hottest sub-markets in Manhattan Beach. Up an astonishing 34 percent year over year through first three quarters of 2018 versus first three quarters of 2017, the Hill Section confirmed that buyers are loving real estate in this area.
Perhaps even more interesting, the Sand Section was not only down 5.7 percent, but on 21 percent stronger sales during the same period. With a strong sales pace driving prices down, the market might be telling us prices are too high. That said, things can change quickly in this sub-market.
Conclusion
Expect to see more in-depth detail in my newsletter coming out soon. If you are not on the quarterly mailer, please contact me to get on the list: richard(at)manhattanpacific(dotted)com.