One of the older, more established areas within Rancho Palos Verdes is referred to as Los Verdes. The sales of single family Los Verdes homes jumped to 30 last year, up from 25 the year before. The median sales price, on the other hand, declined to just under $1,000,000, the first time since 2004. From 2005 through 2008, the median price has been fluctuating between $1,050,000 to $1,133,000, which is a pretty tight range given what happened to the capital markets in late 2007. The recent drop in price appears to not be related to the age of the homes selling here. It turns out that all homes sold in the last two years were built before 1973. Recent sales activity suggests that the number of homes sold may keep rising, but that the median price may continue to drop.
There have been three escrow closings this year-to-date, which is a healthy pace for the year. The challenge is that they are priced below $900,000. Likewise, of the eight homes that are currently in escrow, all but two are priced below $1,000,000. And here is where things get really interesting. As of this writing, there are only three single family homes for sale. This is the equivalent of less than two month’s inventory, which is surprisingly low. It may very well be that sellers are wanting to hold on to their homes now and not let them go for prices commensurate with 2004 levels. So perhaps the torrid pace that Los Verdes homes sales started this year with will adjust downward after all, depending on whether additional homes are put on the market or not.
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Posted by Tony Cordi 