In 2009, Palos Verdes homes sales increased 19% with 462 single family home sales compared to 388 in 2008. Palos Verdes homes experienced a 16% decline in 2009 average sales prices compared to 2008. It did not feel like double digits so I researched further.
The sales mix changed significantly which is reflected in the lower average sales price. In 2009, 38% of Palos Verdes homes sold were under $1,000,000 compared to only 28% in 2008. In addition, in 2009 the high end, over $2,000,000, fell to 10% from 16% in 2008. The very high end, over $5,000,000, was only 1% of Palos Verdes home sales compared to 2.5% in 2008. In other words, we had more low end homes sell in 2009 and less high end sales which contributed to the overall decline in average sales price.
Did the entire Palos Verdes Peninsula which is comprised of 4 different cities (Palos Verdes Estates 90274, Rancho Palos Verdes 90275, Rolling Hills and Rolling Hills Estates) experience a 16% decline in price? Absolutely not. As a matter of fact, 2 neighborhoods actually showed an increase in average sales price – Monte Malaga in Palos Verdes Estates with an average sales price of $2,247,246 ($2,067,647 in 2008) and the city of Rolling Hills with an average sales price of $2,600,412 ($2,515,752 in 2008). Pricing is really determined by the neighborhood, location and condition of the home.
My next article will be on the sales statistics for the month of December 2009. Entire charts can be accessed by clicking here or on the “Statistics” tab above.