South Bay Real Estate Market Trends
The National news is not indicative of what is taking place in our Beach Cities and on the Hill of Palos Verdes real estate market. Do not be discouraged by those reports. The South Bay markets are amongst the strongest in the country.
If you want the facts for your local market, you've come to the right place. This section offers you a look into the various South Bay Cities and how the real estate market is performing. All data is current and updated monthly.
Having a real estate advisor that can provide you data like this when putting your home on the market, or writing a winning offer when you find that perfect home to buy, is hard to find. Do you want custom data trend statistics monthly report for your home or neighborhood you like to purchase in, which would include recent active, in escrow & sold comparable listings based on specific criteria and location? Contact me now and I can help.
The information below provides insights into the Macro Real Estate Market of the combined South Bay Beach Cities, Palos Verdes, Torrance, Lomita & Holly Glen/Del Aire. To best compare your individual home's current market interest, I have decided to group information in ascending price ranges and choose to focus on the following seven Market Trends graphics.
The following bar graph show Months Supply, which refers to the inventory of properties for sale at the end of a given month, divided by the average monthly Pending Sales.
The graph above provides the most important Market Trend Graph to indicate whether it is a strong buyers' or sellers' market. As the data reflected in the chart takes into account the Supply (Active Listings) and Demand (Pending Sales), this yields the absorption rate, which is a critical market trend also known as Months Supply. When the Months Supply of homes is above six months, it is considered to be a buyers' market, whereas below three months is considered to be a sellers' market.
New Listings are a count of properties that have been newly listed on the market in a given month.
The advantage to the seller increases when the competition is reduced. On the contrary, when the inventory is high, the advantage goes to the buyer.
Pending Sales represents market demand, and are defined by a count of properties on which contracts have been accepted in a given month.
The above graph best illustrates the buyers' current interest in purchasing a home which results in Market Demand. When demand is down, the advantage to the buyer increases since competition is reduced. On the contrary, when the market demand is high, the advantage goes to the seller.
Closed Sales are a count of properties that have closed in a given month.
This graph is the result of the Pending Sales that do close escrow. Which is also an indication of the current Demand in the Market.
Days on Market (DOM) represents the number of days between when a property is listed and when an offer is accepted in a given month.
A high DOM for a particular home in a strong sellers' market with a low average DOM is a red flag for buyers. This may lead buyers to believe that something is wrong with the home or that it is priced too high.
Percentage of Original List Price is found when dividing a listing's sales price by its original list price, then taking the average for all sold listings in a given month.
This graph is a good indicator of what homes are selling for in a given price range.
Median Sales Price represents the point at which half of the homes that sold in a given month were priced higher and half were priced lower in a given price range.
The bar graphs above do not take into account specific South Bay Cities location or property type. Click on the appropriate tab along the sub-menu bar above for detailed information on the specific city that interests you.