Market Conditions in 90274>Question Details

Steve, Home Buyer in Long Beach, CA

What is the outlook for the Palos Verdes Peninsula, CA?

Asked by Steve, Long Beach, CA Wed Sep 26, 2007

I'm in the market for a home in the Palos Verdes Peninsula, CA in the 1.5-2.0M range. We have significant amount for down payment 50% , we're renting and continuing to saving up fast. What is your opinion of the market trend/direction in PV especially in this price range. We don't mind waiting especially if there's signfiicant price drop and since we're still saving our future equity is growing very fast. On the other hand we've been on the sideline for two years and we don't really want to wait more than 1-2 years.

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12
There are a few incentives to buy NOW in Palos Verdes. 1) Low interest rates 2.) We're in the bottom of the market currently 3) Less Buyer competition now than in the Spring/Summer months.

Further, because you are buying in the low your investment dollar will go farther over time in appreciation dollar, instead of throwing it away on rent. The deals are out there. You are in a solid buying position and are what Sellers consider an attractive buyer (big down payment, no contingency to sell current home to buy). This will go far when it comes time to negotiate a great deal.

I'm a PV resident, Certified Palos Verdes Peninsula Specialist. and Certified Negotiator. If I can be of help to you in your search, please feel free to contact me. I'd love to help! (310-544-8453)
1 vote Thank Flag Link Sun Feb 28, 2010
Hi Steve,

Low inventory is keeping price from declining at the present time. I would buy now anfd get a good buy. I work the foreclosure market in Palos Verdes and there are some great buys right now.
1 vote Thank Flag Link Wed Feb 17, 2010
I know you asked this question over a year ago, and the market has certainly seen some amazing things happen since then. Prices on the Palos Verdes Peninsula have dropped in the range of 8% to 15% since last year. Buyers sitting on the sidelines should remember that trying to call the bottom of any market is extremely difficult, If you are buying a home to live in, not a speculative investment, you should be buying for the long term. Today’s market gives buyers the opportunity to negotiate a great deal. Interest rates are still also at an historical low. For instance, even if prices fell an additional 10%, decreasing the mortgage required to buy a property from $500,000 to $450,000, if interest rates increased from 5.6% to 6.6%, the mortgage payment on the $450,000 mortgage would be the same as the previous $500,000 mortgage. Inflationary pressures continue to increase, due to increases in gas and food prices. With increased inflation, comes higher long term interest rates. The credit crisis may also lead to increased interest rates.



I really believe that now is a great opportunity to negotiate a great deal. We will soon be in the holiday season, when buyers really start to worry about selling their property. Buyers are in the drivers seat in this market, and there is less competition at this time for the really good homes. Prices have also held reasonably steady on the Palos Verdes Peninsula. Prices have decreased in the range of 8% to 15% from last year. This area is highly desireable, and demand to locate here will remain strong. Most of the areas in Southern California which have been hit harder were markets where many more buyers were using no money down variable loans to purchase their properties. This simply did not occur on the Palos Verdes Peninsula. There have been very few foreclosures here, therefore much less pressure to lower prices

If I can be of any help, I would love to hear from you!
1 vote Thank Flag Link Mon Oct 6, 2008
Hi Steve,

I work with Rebecca and Mary who are both excellent Realtors. They did a fabulous job answering your question. I have attached a few stats for you to review. You might find it helpful. Good luck with your purchase.
Date 6/07 7/07 8/07 9/07 10/07 11/07 12/07 1/08 2/08 3/08 4/08 5/08 6/08 7/08 8/08
For Sale 201 210 214 227 218 192 170 201 216 235 254 258 270 276 271
Sold 63 71 57 30 31 35 23 15 25 33 43 42 39 51 29
Pended 43 38 25 19 32 17 19 11 46 46 41 41 44 26 26
Months of Inventory based on Closed Sales 3.2 3.0 3.8 7.6 7.0 5.5 7.4 13.4 8.6 7.1 5.9 6.1 6.9 5.4 9.3
Months of Inventory based on Pended Sales 4.7 5.5 8.6 11.9 6.8 11.3 8.9 18.3 4.7 5.1 6.2 6.3 6.1 10.6 10.4
Avg. Active Price 2471 2620 2486 2390 2560 2602 2694 2670 2559 2401 2443 2328 2356 2302 2330
Avg. Sld Price 1588 1722 1534 1816 1788 1547 2298 1556 1394 1608 1667 1685 1747 1496 1480
Avg. Sq. Ft. Price 611 599 592 621 648 531 663 545 516 547 570 574 568 554 545
Sold/List Diff. % 97 97 98 95 95 98 95 95 96 93 95 95 96 95 96
Sold/Orig LP Diff. % 95 95 96 94 92 95 93 92 94 90 92 92 92 94 96
Days on Market 57 49 36 48 47 55 50 51 46 62 63 67 68 52 89
Avg CDOM 54 55 36 52 46 50 44 46 53 70 88 74 79 60 96
Median Price 1412 1400 1373 1305 1360 1270 1190 1549 1300 1385 1175 1490 1250 1175 1350


*All reports are published Sep. 2008, based on data available at the end of Aug. 2008.
All reports presented are based on data supplied by the South Bay Association of Realtor or its MLS. Neither the Association nor its MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.
1 vote Thank Flag Link Wed Sep 24, 2008
Hi Steve. Prices are holding pretty steady in your price range. The median price for the Penninsula is down a bit, but that includes less desirable areas of RPV. I would say now is a good time to be looking. Inventory is up which gives you more choice and many buyers are holding off which gives you more room to negotiate. Much of the problem with lower priced properties is the inability to get a loan. That isn't the case in the $1.5 and up market with buyers. PV has always held it's value. I would start looking if I were in your shoes rather than wait.
1 vote Thank Flag Link Wed Sep 26, 2007
I would recommend you pay attention to the advice of a "local professional" rather then a person from out of the area. Los Angles is quite diverse and it's entirely possible for a "Downtown Realtor' to be absolutely clueless about what the market is doing in South Bay , given that fact..it is impossible for a non professional to get the information you are asking for, and particularly Palos Verdes which is a world unto it's self.
0 votes Thank Flag Link Sun Feb 22, 2015
I am not a RE agent so I don't have a conflict of interest to earn your commission.
I have been looking at PV for five years. I had decided that prices were to start declining since 06 due to the easy financing that drives speculation. With housing going into a double dip now, there will be more price compression especially in your price range due to a number of factors. Short sales and REO is finally surfacing as banks cannot hold them anymore. There are currently over 400 houses listed for sale in PV. The financing rate is low but qualifying is much more difficult as government agency is forcing banks to hold these notes rather than selling or securitizing them. There will definitely be more price compression on the high end homes versus the low end homes when affordability and financing is available. I think your 2m homes can be bought for under 1.5 if you wait and by the watt, prices will not be going up anytime soon for at least five to ten years! A good way to appraise market value is to get the annual rental rate for the home you want to buy. If you can rent it for under 4% yield net after tax ,hoa insurance etc before mortgage interest, it is better to rent than to buy. If you get over 5% maybe worth buying.
0 votes Thank Flag Link Sat Jun 4, 2011
Hopefully you didn't follow this advice as the market has certainly turned. The 4% equation is interesting as you need to consider the tax benefits of home ownership into the equation as well. Based on this calculation and current market rental rates, it would make sense to purchase a home in the neighborhoods with the highest demand.
Flag Tue Nov 12, 2013
Do not wait any longer. Palos Verdes Peninsula is a great place to live. I know a neighbor who sold her house in the Peninsula and only took 2 months to sell her house with geo issues and even in this tough market. The buyer did not care. Fell in love with the area and bought it anyway. One of the LA areas that hold homes values and one of the prime locations in the Los Angeles County . Take advantage of the market now and enjoy the benefits to own one there. Good Luck. I will be happy to assist you in finding your dream home. 949-291-6004. Let me know.
0 votes Thank Flag Link Wed Feb 17, 2010
Steve
Timing the market is always a challenging task, and this time it is the same. Many people would read a report that says "inventory levels are up, plenty to choose from" and think that they've got all the time in the world.

The truth is that in most markets about 20% of the listings are priced to sell at any given time. Of that group of homes, a very small number are really in great condition. So although inventory levels are up, the number of truly quality homes is limited.

I would approach this from the idea that you are looking for not just any home, but the right home. That means that there are very few homes that will meet your needs, so beginning your search now would probably be in your best interest.

I do not work in that area, however i would be happy to refer you to a great Realtor who knows RPV very well if you are in need to a Realtor.

Best of luck to you.
0 votes Thank Flag Link Wed Sep 24, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Hi there Steve. if you look at the maket in this area. It is holding stable.
It appears that you will be getting a mortgage for this home. If the rates do increase any slight drop in price will be nullified. Ask your self this questions.
How ling do I plan on living there?
Do you plan on selling in a year or two?
How do you know when the market will turn?
What are the financial impacts of sitting on the side lines?
What are the tax implications of sitting on the sidelines?
If you think the market will drop say 5% more then you should consider making an offer at this price this way you can lock in todays low interst rates. and get a double win.
If you would like to know all the numbers related to this please let me know.
If you like to see a report showing all the sales or trends for Palos Verdes Peninsula please let me know

Kind Regards
Michael Barron
Realtor
First Team Estates

The # 1 Selling Independent Real Estate Company in CA
0 votes Thank Flag Link Tue Apr 29, 2008
Interest rates are expected to come down again significantly, You should get ready to purchase by March or April,2008. The market economists are predicting the bottom has hit. I specialize in Palos Verdes and your price range is not declining. I ran a market chartt of all of the Palos Verdes Peninsula and Coastal areas in the South Bay includeing Manhattan Beach and it showed an increase of as much as $75.00 per square foot in properties seling 1 Million and up for 2007.

A moment ago - Delete this answer
0 votes Thank Flag Link Tue Dec 11, 2007
Hi, Steve. I agree with Rebecca. Homes in your price range are holding their value. You appear to be a very strong buyer with your 50% down payment. That should give you an advantage even if you get into a multiple offer situation (yes, we are still seeing a few of these).
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Wed Sep 26, 2007
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