Palos Verdes Source

February 2010 statistics for Palos Verdes real estate again indicate a very strong month compared to February 2010 with sold/closed escrows almost triple of that in February 2009 (32 homes in Feb 2010 vs 12 homes in Feb 2009).  Pending sales more than doubled (47 homes in Feb 2010 vs 22 homes in Feb 2009).  192 Palos Verdes homes were for sale in February 2010 compared to 311 in February 2009.  With these low inventory numbers we are experiencing, demand is staying up.

The average sales price in February 2010 was $1,368,000 which is higher than February 2009 at $1,110,000 and a bit higher than January 2010 at $1,297,000 but right in line with the average for the past 12 months ($1,323,000).  Months of Inventory (months it would take to sell existing inventory at the current rate of sale for February was 6 months down from 6.7 months in January. Sold to list price in February fell to 93% from a high of 97% in January.  In February, average Days on Market increased to 107 from a low in January of 70 days.  Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 188 Palos Verdes home for sale.  Additionally 101 homes are in escrow (55 homes have pending sales and 46 homes are accepting backup offers).  One third of homes for sale are in escrow!  And the Spring selling season is still in front of us.  Additionally, 18 homes have sold/closed escrow in the first 10 days of February.

Owners of Palos Verdes homes will be pleasantly surprised to know that the answer is “Yes” according to Kenneth R. Harney in a recent Los Angeles Times article.  I think this is great news and don’t understand why it was buried on the 12th page of the Business section.

“According to the Fed’s most recent ‘flow of funds’ survey, homeowners’ net equity grew by nearly $1 trillion from the recession’s nadir in the first quarter of 2009 through the third quarter. From June 30 through Sept. 30, equity rose by $418 billion….After three years of unprecedented shrinkage in home equity – and three years of rapid expansion in the number of underwater borrowers with negative equity – there are signs the down cycle may be shifting.”

I believe this is another sign of of our real estate market stabilizing.  For recent statistics on our Palos Verdes real estate market click here or on the “Statistics” tab above.

January 2010 statistics for Palos Verdes real estate again indicate a very strong month compared to January 2009 with sold/closed escrows up 66% (30 homes versus 18 in Jan 09) and pending sales more than doubled (52 homes versus 18 in Jan 09).  200 Palos Verdes homes were for sale in January 2010 compared to 293 homes in January 2009.   Buyers seem to be back in the market with most of the agents I speak to commenting on how the market has picked up and they are busier than they have been for the last two years.

Sold to List Price was 97% in January which is another indication of a stable market (along with the lower than average inventory).  January 2010 shows  the average Days on Market fell to 70 days from 84 in December 2009.  The average sales price in January 2010 was $1,297,000 which is higher than January 2009 at $1,135,000.(December 2009 was $1,555,000 which included several high end sales).  Months of Inventory (months it would take to sell existing inventory at the current rate of sale for January was 6.7 up from the low of 4.2 months in December. Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 183 Palos Verdes homes for sale.  Additionally 47 homes have pending sales, 48 homes are in escrow accepting backup offers and 11 homes have sold/closed escrow in the first 11 days of February.

December 2009 statistics for Palos Verdes real estate indicate a very strong month for single family residences compared to December 2008 with both sales and pendings doubled.  45 Palos Verdes homes sold/closed escrow in December 2009 compared to 25 in December 2008.  38 Palos Verdes homes had pending sales in December 2009 compared to 16 in December 2008.  Additionally, in December 2009 there were 190 Palos Verdes homes for sale compared to 275 in December 2008 .  This is good as a decrease in supply coupled with a consistent demand keeps prices stable.

The average price for single family Palos Verdes homes that sold in December was $1,555,000 which is up from November at $1,122,000.  (7 homes sold over $2,000,000 – including one at $6,400,000 and one at $5,920,000).  Average price per square foot for Palos Verdes homes was also up in December 2009 at $517.  Average Days on Market in December increased to 84 days from 76 days in November.  Months of Inventory (months it would take to sell existing inventory at the current rate of sale for December was 4.2 which was a month decline from November.  Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 190 Palos Verdes homes for sale.  Additionally 40 homes have pending sales, 39 homes are in escrow accepting backup offers and 13 homes have sold/closed escrow in the first 15 days of January.

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.

What home improvements and remodeling projects give the greatest return on their investment?  For owners of Palos Verdes homes (and the rest of  Los Angeles County who choose upscale remodeling), the answer for 2009-2010 is siding replacement, window replacement and a grand entrance according to an article in the latest National Association of Realtor’s magazine which came from a survey by Remodeling magazine.

“The majority of the 10 remodeling projects with the best return on investment nationally are a testament to pragmatism.  Six of the 10 projects – siding and window replacement using a variety of materials – involve home maintenance that costs less than $14,000…Additional data prove the value of restraint.  Upgrading kitchens and baths is still a smart bet.  However, home owners will recoup the greatest share of their costs by foregoing super-deluxe projects in favor of mid-range kitchen and bath remodels.  A mid-range kitchen remodel brings an average 72.1 percent return on investment (93.7 in L.A. County), while an upscale kitchen re-do returns only an average of 63.2 percent of the money invested” (78.7 in L.A. County).  That’s a 15 point spread.

Owners of Palos Verdes homes remodel for different reasons, like the need for more space, to improve the functionality of specif rroms and to update them.  Kitchen and bathrooms are usually the most expensive remodel as plumbing and/or appiances need replacing.  There is no specific report for Palos Verdes real estate but there is a Cost vs Value Report for Los Angeles Countywhich is broken down into Midrange priced projects and Upscale priced projects (Reports can be accessed by clicking here on the link above).  When you click on the porject name (i.e. Major Kitchen Remodel) you can then read the features of that price range to compare to your own.

Remodeling just for resale rarely nets you a dollar for dollar return.  Most remodels are done for the enjoyment of the homeowner (who still wants to maximize their return when they do sell).  My experience is that most buyers are looking for newer kitchens, bathrooms, master suites and nice yards.  Curb appeal is important because it is the buyer’s first impression of the home.

Statistics for the month of November 2009 for Palos Verdes real estate are now available and again we show strong sales numbers for single family homes when compared to this time last year.   Palos Verdes homes for sale decreased again to 219 (from 243 in October).  This is good as the a decrease in supply coupled with a consistent demand keeps prices stable.  42 Palos Verdes homes Sold/closed escrow in November and 47 homes have Pending Sales.  As you can see from the chart above, this is twice the activity we saw in November of 2008.

The average price for single family Palos Verdes homes that sold in November was $1,130,000 which is down from October at $1,260,000.  There have been more sales in the low end of the Palos Verdes real estate market in 2009  Average price per square foot for Palos Verdes homes in November was $480 which is  the average for the prior six months.  Average Days on Market in November fell to 76 from 112 in October.  Months of Inventory (months it would take to sell existing inventory at the current rate of sale) for November was 5.2 which was a one month rise from October.  Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 202 Palos Verdes homes for sale.  Additionally 47 homes have pending sales, 40 homes are in escrow accepting backup offers and 18 homes have sold/closed escrow in the first 14 days of December and one home sold for $6,400,000!

Statistics for the month of October 2009 for Palos Verdes real estate are now available and they again indicate stability in our market.  The Active number of homes for sale in Palos Verdes have continued to decrease to an all time low (in the last 15 months) of 292 homes currently available for sale.   66 homes Sold/closed escrow in October and 76 homes have Pending Sales which is twice as many as October 2008 yet consistent with the prior five months of 2009.  Our sales have been holding. 

The average price for all homes (including townhomes/condos) that sold in October was $1,140,000 and average price per square foot was $471 which is about average for the prior 6 months.  Average Days on Market in October spiked to 110 days from 73 in September.  Months of Inventory (months it would take to sell existing inventory at the current rate of sale) for October was 4.4 months down from 14 months for October 2008 and consistent with the prior three months.  Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 273 homes for sale on the Palos Verdes Peninsula.  Additionally 64 homes have pending sales, 59 homes are in escrow accepting backup offers and 23 homes have sold/closed escrow in the first 13 days of November.

   Yes, we do have foreclosures in Palos Verdes real estate.  Currently there are 2 active single family residences and 1 condo that are REOs (or bank-owned properties).   669 Via Del Monte, Palos Verdes Estates, is a 4 bedroom, 3 bath, 3,469 square foot home listed for $1,449,900.  4053 Via Pavion, Palos Verdes Estates, is a 4 bedroom, 3 bath, 2,336 square foot home listed for $999,900.  3601 W Hidden Lane #121, Rolling Hills Estates, is a 2 bedroom, 2 bath, 1,131 square foot condo listed for $415,000.

Although Palos Verdes is not immune to foreclosures, our rate is much lower than most of Los Angeles County.  Since the beginning of the year, 10 single family residences and 10 condo/townhomes that have sold were REOs.  There are currently 2 single family residences and 1 condo/townhome that have pending sales and are bank-owned.

According to the Los Angeles Times, “Signs are emerging that a much feared escalation of California home foreclosures may not happen, as banks respond to government pressure and scale back their repossessions of troubled properties.”  It appears the banks are working with homeowners allowing loan modifications and short sales.  This will assist in the stabilization of the real estate market.

Graph courtesy of LA Times

More good news for Palos Verdes real estate! Southern California median home prices rose again for the fourth straight month as reported in the Los Angeles Times this week. “And although home values are still dropping in many neighborhoods, rising home sales and median prices are “all symptomatic of a bottoming out” and the worst days of the housing market are probably over, Leamer said.” (UCLA economist Edward Leamer)

For the Palos Verdes housing market, the month of August (as reported in my September 11 article) showed solid gains. For the second month in a row, the numbers shifted in the sales mix. Sales in our mid-range for single family homes in Palos Verdes ($1,000,000 to $2,000,000) increased to 62% while sales under $1,000,000 dropped to 29%. During the first six months of this year, the reverse was true. It is a good sign that sales in our mid range are returning to normal. To view statistics for Palos Verdes for the past 15 months, click here or on the “Statistics” tab above.