South Bay Market Report June ‘20 vs June ‘21

As new price records continue to headline the Real Estate Market, there are some key takeaways for this month. We will also take a look at the individual South Bay Markets compared to June of this year versus last year.

Market Talk
One takeaway we saw last month, is that home tours have decreased nationwide. This is due to the nature of the current market. The reality is that if you want to purchase a home, you will have to bid significantly over asking price, and for some buyers bidding $100k over the asking price is tough to grasp their head around. These buyers who are offering $50k over think they are going above and beyond but they are unable to compete in this market. They’ve experienced constant losses and have grown tired. These are the type of buyers who are getting out of the hunt and have contributed to the decline in home tours.

Even though home tours are down, prices have continued to soar. There are multiple offers and homes continue to sell well over the asking price.

As the supply has significantly increased nationwide by about 5% compared to March, and the buyer demand declining, can we question if we are at the peak of the market? These indicators will take longer to reflect on the overall market as there is a 30-45 day buffer period for sales because of the escrow period.

Ultimately if buyer’s face less competition, this will bring prices down but there is another way to look at it. As seller’s are reluctant to sell in this market, they will also face the tough competition as a buyer. We may see as competition decreases, seller’s who also have to buy may look to make their move. Tough to tell where the market goes from here. We will continue to keep you all informed.

South Bay Market Report

Rancho Palos Verdes
One of the toughest markets to gauge as the Luxury market has so many variables. What we can takeaway from the stats is that the market is clearly moving faster with 23 average days on market. Along with the speed, also contributes a close to list price ratio of 103.19%. Homes are selling on average $66k over the ask price in RPV or 3.19% over asking.

Torrance
Torrance saw significant increase in the speed of the market selling in just an average of 12 days. Seeing a significant increase of $125k in one year. The average home size sold in June 2021 was 1,717 sqft and in 2020 it was 1,713sqft. This is very similar and the price per sqft increased by $81! Torrance is currently one of the toughest markets out there, solely because it’s tough for buyer’s to grasp their head around offering $75k over the asking price on average.

Redondo Beach
Redondo Beach saw a huge uptick in market activity. In June 2020, there were only 17 SFR home sales vs. 47 last month. Just like Torrance, Redondo Beach is experiencing on average $100k over ask price! The average home sold June 2021 was 1,873 sqft and the average home sold in June 2020 was **1,923 sqft.**Price per sqft increased $105 /sqft in one year!

Gardena
Gardena doubled their market activity compared to last year selling 25 units. Homes sold twice as fast this year as well and sold an astounding $40k over asking price on average. The average home in June 2021 was 102 sqft smaller at 1,366 sqft compared to last year’s 1,468 sqft. Selling on average $84 /sqft more this June.

Lomita
It’s the same story here in Lomita. More units sold and selling more than twice as fast. Home prices supposedly increased by $240k but with the very small sample size this can be skewed. The average home size sold in June 2021 was 1,804 sqft compared to June last year was 1,685 sqft. Still homes sold on average $97 /sqft more this year and garnered $38k over asking on average.

Carson
Carson saw the same activity. Even though Carson was selling over the ask price last year in June there was significant increase in price compared to last year. The average home size sold this June was 1,605 sqft vs. last year’s 1,558 sqft. 50 Sqft bigger this year but. saw an average of $74 /sqft increase. For a 1500 sqft home, that’s an increase of $111k year over year!