June 2010 statistics for Palos Verdes real estate indicate a possible slowing compared to both May 2010 and June of last year.  49 single family homes sold/closed escrow in June 2010 compared to 57 in May and 54 in June 2009.   However, 17 Palos Verdes homes sold/closed escrow since July 1, 2010 which is nearly 2 1/2 times as many as this time last month.  62 homes had pending sales for June, up from 58 pending sales in May.  Active homes for sale in June are again up to 260 (rising for the last 5 months) although down from 301 in June 2009. 

The average Sales Price in June 2010 was $1,378,000 down from $1,422,000 in May, but higher than all but two of the last ten months.  Average Days on Market in June was 78 days (May was 80 days).  In June, sales price/original list price was strong at 95% which is the highest in over a year.  Months of inventory (months it would take to sell existing inventory at the current rate of sale) for June was 5.3 months, up from 4.2 in May but below 6 months which is considered a “normal” market.  Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently there are 269 Palos Verdes homes for sale.  102 homes are in escrow (50 homes have pending sales and 52 homes are accepting backup offers).   Additionally, 17 homes have sold/closed escrow in the first 10 days of July.

May 2010 statistics for Palos Verdes real estate again indicate stability in our market.  57 single family homes sold/closed escrow in May compared to 47 in April and 25 in May of last year.  63 Palos Verdes homes had pending sales for May which is 10 more than April and almost twice as many as May of last year.  Active homes for sale for in May is up slightly to 238 (226 in April). 

All the statistics moved positively in May.  The average sales price in May 2010 was $1,422,000 up from $1,311,000 in April.  Average days on market in May fell to 80 days from 92 days in April.  Average price per square foot rose to $500 in May from $490 in April.  And a very important indicator – Months of Inventory (months it would take to sell existing inventory at the current rate of sale) for May was 4.2 months which was down slightly from April’s number of 4.8.   6 months inventory  is the benchmark for a “normal” market and our numbers have been lower for the past year.  Entire charts can e accessed by clicking here or on the “Statistics” tab above.

Currently, there are 250 Palos Verdes homes for sale.  118 homes are in escrow (63 homes have pending sales and 55 homes are accepting backup offers).  For the last 4 months, nearly one third of homes for sale in Palos Verdes are in escrow! Additionally, 12 homes have sold/closed escrow in the first 12 days of June.

April 2010 statistics for Palos Verdes real estate indicate stability in our market.  47 homes sold/closed escrow in April compared to 49 in March and 34 in April last year.  60 Palos Verdes homes had pending sales for April which just about duplicates March numbers.  Months of Inventory (months it would take to sell existing inventory at the current rate of sale) for April was 4.8 months.  6 months is considered a “normal” market and we have been experiencing 4.2 months to 6 months (with 6.7 months in January 2010) for almost a year.  Another good sign!

The average sales price in April 2010 was $1,311,000 up from $1,228,000 in March.  226 Palos Verdes homes were for sale in April 2010 which is up from 208 homes in March and down from 303 homes in April of 2009.  Our inventory has slowly been rising since the first of the year which is giving buyers more selection and has been absorbed by the market (4.8 months of inventory).  Average price per square foot for Palos Verdes homes in April rose to $490 from $479 in March.  Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 297 Palos Verdes homes for sale.  Additionally, 135 homes are in escrow (64 homes have pending sales and 71 homes are accepting backup offers).  For the last 3 months, nearly one third of homes for sale in Palos Verdes are in escrow! Additionally, 43 homes have sold/closed escrow in the first 15 days of May which indicates that sales for May will be much stronger than April.

March 2010 statistics for Palos Verdes real estate again indicate stability in our market.  49 homes sold/closed escrow in March 2010 compared to 32 in February and 29 in March last year.  Pending sales nearly doubled to 65 in March 2010 from 39 in February (March 2009 had 39 pending sales).  208 Palos Verdes homes were for sale in March 2010 compared to 319 in March 2009.  Our inventory of homes for sale is still low and demand is staying up.

The average sales price in March 2010 was $1,228,000 which is about the same as March 2009 ($1,236,000) and lower than February 2010 ($1,368,000).  The average price per square foot for March 2010 was $479 – about the same as last March ($471) and lower than February 2010 ($485).  Months of Inventory (months it would take to sell existing inventory at the current rate of sale) for March was 4.2 months which is low.  An average market is considered to be 6 months of inventory.  In March, average Days on Market decreased 3 from 107 days in February.  Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 212 Palos Verdes home for sale.  Additionally, 101 homes are in escrow (50 homes have pending sales and 51 homes are accepting backup offers).  Like last month, nearly one third of homes for sale in Palos Verdes are in escrow!  Additionally, 16 homes have sold/closed escrow in the first 11 days of April.

What is the outlook for Palos Verdes real estate?  I frequently hear that question and last week, I attended a presentation by Leslie Appleton-Young, Chief Economist for California Association of Realtors.   Here are some highlights:

•   In the Summer of 2007 our area started to decline because buyers could not get jumbo loans.
• Statewide, low end of the market is getting bid up; high end will still get adjustment.
• “Local data is critical”
• Does not see shadow inventory of foreclosures coming.  She sees 2 to 3 years of slow workouts on foreclosures.
• According to the California Association of Realtor survey, over half of the home purchased had multiple offers.
• “Not building enough housing in California…in five years we will have a housing shortage.”
• In January 2010, only 300 new housing permits were taken out in all of Los Angeles County.
• For the most part, “prices have bottomed but depends on price range”.
• Statewide 2010 Forecast is 3.3% increase in median price and 3.5% decrease in the number of homes sold; 30-fixed interest rates forecasted at 5.6% (up from 5.2% in 2009).

Leslies’s data for Palos Verdes was based on 125 sales in 2009 which means it was only for Palos Verdes Estates as we had approximately 456 sales for 4 cities on the Palos Verdes Peninsula.  Her charts show median price for February 2010 at $1,387,500 up 6.7% month to month and down 0.5% year to year.  Sunday’s Los Angeles Times showed a 27.1% increase for February year to year for zip code 90274 (Palos Verdes Estates, Rolling Hills, Rolling Hills Estates and Palos Verdes Peninsula; for Rancho Palos Verdes 90275, it was a 12.1% increase. Please click here or on the statistics tab above to view charts for the entire Palos Verdes Peninsula.

Additional California Association of Realtors charts and information for real estate in Palos Verdes, Los Angeles County and California are available by clicking here.

Chart courtesy of California Association of REALTORS

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.