Palos Verdes Homes Affordability
It is such a hot seller’s market for Palos Verdes Homes, and really most of the South Bay/Beach Cities, and buyers are wondering what happened. It seemed logical with the Covid-19 Pandemic that real estate sales would slow down and it did in March/April 2020 but then took off and has not slowed since.
One reason is quality of life. With stay at home orders turning every house into an office, school, and family living home, more space was needed for so many different uses. Some buyers also decided they wanted a view to enjoy, different room configurations, more space and/or a different location.
Another reason becomes apparent when viewing the U.S. data chart above. In 2000, mortgage rates were 8%, median home price was $241,000, median income was $46,816 with 36% of income going to house payment. Today in 2021, the same 36% of income is going to house payment with only 3% mortgage interest rate, 700,000 median home price, and 79,000 median income. Low interest rates are very attractive to buyers!
The median price of Palos Verdes homes in 2020 was $1,635,000 with the lowest priced home selling for $730,000 and the highest priced home sold for $10,500,000. To read more about 2020 Palos Verdes Homes 2020 Neighborhood Sales, click here.
Above chart courtesy of Reports On Housing