Summer is in full swing, and I hope all our readers, old and new, enjoyed a safe and fun 4th of July holiday!
We are officially in the second half of the year, and with that, the conclusion of quarter two. It is now time to breakdown those South Bay Q2 home market numbers for you data nerds!
I believe there are mostly positive surprises when it comes to values. And while year-over-year three-month quarterly datasets are not massive numbers to compare, it does give you a nice glimpse into how our most important season, spring selling season, performed in 2024.
Manhattan Beach
Manhattan Beach is showing volatile quarterly movement that we are not used to by the beach. After median prices fell by 10.5% in Q1, Manhattan Beach has now reversed course and jumped 14.5%.
- Manhattan Beach Q2 Median Price: UP 14.5%
o Q2 of 2024: $3,250,000
o Q2 of 2023: $2,837,500
As you can see, Manhattan Beach not only jumped over $400,000 year-over-year, it also grew nearly three quarters of a million dollars sequentially.
Let’s check-in on closed sales…
- Manhattan Beach Q2 Closed Sales: DOWN 3.8%
o Q2 of 2024: 75 sales
o Q2 of 2023: 78 sales
Sales are down ever so slightly, where it is really a non-event as long as you know sales are on the lower side historically but they have been lower.
Active inventory is about as high as we have seen it over the past three years, however, it is still low, but with the caveat that sales have held steady despite inventory challenges.
Palos Verdes Peninsula
Palos Verdes Estates home prices surged significantly much like Manhattan Beach, while Rancho Palos Verdes and Rolling Hills Estates turned in disappointing performances seeing their median prices fall.
- Palos Verdes Estates Q2 Median Price: UP 21.6%
o Q2 of 2024: $3,100,000
o Q2 of 2023: $2,550,000 - Rancho Palos Verdes Q2 Median Price: DOWN 1.5%
o Q2 of 2024: $1,800,000
o Q2 of 2023: $1,827,500 - Rolling Hills Estates Q2 Median Price: DOWN 18.4%
o Q2 of 2024: $1,387,500
o Q2 of 2023: $1,700,000
Palos Verdes Estates popped by 21.6% year-over-year finally shaking off its funk from a very disappointing 2023. What’s more, prices are growing sequentially in a big manner and just under quarterly record high similar to Manhattan Beach.
Rancho Palos Verdes also turned in a small drop, but surprisingly, it was up against a year-over-year number that was close to a quarterly record. We’ve seen disappointing quarters out of Rancho Palos Verdes as the city’s home listings have battled higher interest rates, but this quarter, Rancho Palos Verdes sits just about 3% off its all-time quarterly highs.
Rolling Hills Estates is down significantly by 18.4%. As longtime readers know, RHE is volatile due to its huge sales prices in the luxury enclave of Rolling Hills Country Club and very affordable condo sales around $500k in The Estates.
I am debating throwing out Rolling Hills Estates stats to just first half and full year numbers, much like Rolling Hills, since both markets are smaller and hard to gauge quarter-to-quarter.
Now onto the sales numbers…
- Palos Verdes Estates Q2 Closed Sales: DOWN 2.3%
o Q2 of 2024: 43 sales
o Q2 of 2023: 44 sales - Rancho Palos Verdes Q2 Closed Sales: UP 15.7%
o Q2 of 2024: 118 sales
o Q2 of 2023: 102 sales - Rolling Hills Estates Q2 Closed Sales: DOWN 31.3%
o Q2 of 2024: 22 sales
o Q2 of 2023: 32 sales
Again, Palos Verdes Estates is seeing its quarterly statistic mirror Manhattan Beach, with sales down just slightly. Where the comparisons stop is that active inventory seems to be steadily rising in PVE since early in 2022.
While Rancho Palos Verdes turned in muted price growth, its sales are up nicely at 15.7%. Even more interesting, active inventory is now at the highest it has been since the start of the pandemic in the middle of 2020. It is encouraging to see the inventory rise and sales jump as a result, but supply is still historically low by a long shot.
Again, Rolling Hills Estates is down huge over 30% for its sales adding more fuel as to why I should throw this city out unless we have larger datasets.
Hermosa Beach
Hermosa Beach was down by 4.1% in Q1 year-over-year; however, it is up against tough comps in 2023. In fact, it is off its quarterly record highs by just $150k back in May 2023.
- Hermosa Beach Q2 Median Price: DOWN 4.1%
o Q2 of 2024: $2,349,000
o Q2 of 2023: $2,450,000
The price drop is not what we want to ultimately see, but prices are actually quite strong in the small but mighty beach city.
Let’s take a look at sales…
- Hermosa Beach Q2 Closed Sales: FLAT
o Q2 of 2024: 47 sales
o Q2 of 2023: 47 sales
Sales are flat year-over-year, so more of the same transaction action while the inventory data is on the historically low end. So it is still a tough market for buyers in Hermosa Beach.
Redondo Beach
*Please note, these calculations 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 that trend continued into Q2 up 8.6%. The price growth dynamics in Redondo Beach are strong in 2024.
- Redondo Beach Q2 Median Price: UP 8.6%
o Q2 of 2024: $1,560,000
o Q2 of 2023: $1,437,000
What’s more, this Q2 quarterly price is nearly an all-time record high.
Sales are also gaining steam…
- Redondo Beach Q2 Closed Sales: UP 7.6%
o Q2 of 2024: 170 sales
o Q2 of 2023: 158 sales
Last quarter sales were slow, but Redondo has now bucked the trend and has seen its Q2 closed sales pop. Closed sales are also trending significantly higher with active inventory holding steady which is a fairly good sign.
Final Thoughts
You can’t fight the numbers! And I am glad to have the Q2 South Bay home market results finally in for us to study.
Overall, it looks like median prices are strong, even in the areas that are down.
- Manhattan Beach, Palos Verdes Estates, and Redondo Beach all had fabulous quarters for price growth.
- And while cities like Rancho Palos Verdes and Hermosa are down, their prices are still close to records.
Inventory is still trending near its historical lows across the South Bay, and closed sales differ from city-to-city and move quarter-to-quarter so not much to glean from that information.
In all, prices are climbing or remain high, and this market continues to shake off high interest rates. It is truly amazing.
See you next time.
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]