Palos Verdes Real Estate 2010 Economic Forecast

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

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