Los Angeles Real Estate Blog

The Palos Verdes Real Estate Market Authority

From the desk of Greg M. Ingerson, Attorney At Law

During the Spring season, Palos Verdes home sellers should begin to see a gradual decrease in the number of showings and inquiries for their home over the next few weeks.

Last month, the MLS summary showed that there were 262 homes for sale in Palos Verdes and 26 sold. Translation, under current market conditions, in any given month, you have about a 1 in 10 chance of selling your home.

In other words, when pricing your home, the practice of adding a "Pad" or "Cushion" to make room for negotiating is not advisable in this market.

As an informed Home Seller, you should understand that with an increase in inventory “supply” there is a corresponding decrease in demand.

Home Sellers should pay close attention to “Current Buyers.” Similar homes that have recently “Sold” tell us what people are willing to pay for this kind of home, in this area, at this time.

Information about similar homes “Currently for Sale” tells us what we are competing against. Buyers considering your home are also inspecting these homes.

Moreover, “Expired” listings tell us what people are not willing to pay for this kind of home, in this area, at this time.

Home Sellers in this market should realize that buyers in today's market will not overpay for a home and even if they would, the bank will not loan more than the home is worth when it doesn’t appraise.

So what can we expect? Demand should decrease a little over the coming weeks at least until the “sub-prime” mortgage meltdown crisis is figured out.

The Numbers Don’t Lie, Here Is What's Happening:
On March 1, 2008, there were 262 active listings for sale in the Palos Verdes Market (Area 160-176): 206 Houses; 24 Townhouses; and 32 Condominiums.

In the past year, there were 619 homes sold in Palos Verdes (between 3.01.07 and 2.29.08): 499 Houses; 57 Townhouses; and 63 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 2.4 times per year.

Broken down even further by specific property type, we find that given the current absorption rates, we can expect Houses to be on the market an average of 149 days, Townhouses will be on the market an average of 152 days, and Condominiums should be on the market an average of 183 days.

Market Recap for the Month of February 2008
When one compares the February results with the yearly result, we find that there is an approximately 10.1 month inventory of homes for sale in Palos Verdes.

Broken down by specific property type, we find that there is a 9.8 month inventory of Houses, a 12 month inventory of Townhouses, and a 10.6 month inventory of Condominiums on the market in Palos Verdes. (Based on current absorption rates).

How should a Seller approach the market? The key in today's market is proper pricing. If you are thinking of selling, now may be the best time to put your Home on the market for the foreseeable future before any additional interest rate increases are implemented.

How should a Buyer approach the market? For buyers, this is a good time to be in the market while sellers are willing to negotiate price and while interest rates are still low. For those hoping that the market will cool, any advantage obtained by waiting for prices to decrease may be offset by higher interest rates.

For more information regarding the Palos Verdes and/or greater Los Angeles Real Estate Markets, please visit our website at http://www.LAHomeSearch.com for FREE information or give our office a call at 310.908.2172 for Free Recorded Information 24 Hours a Day.

Sell Your Home In 120 Days or We’ll Sell It For Free
Buy a Home With NO Money Down
FREE Seller Reports Sell Your Home Fast And For Top Dollar
FREE Buyer Reports – Get The Most Home For Your Money
FREE Over The Net Home Evaluation
Find Out What The House Down The Street Sold For
Virtual Tours
And much more 

Palos Verdes Home Sales by the Numbers
26 sold in February 2008
34 sold in February 2007

262 Current Active Listings
206 Houses
24 Townhouses
32 Condos

26 Sold in February 2008
21 Houses
2 Townhouses
3 Condos

19 Expired in February 2008
13 Houses
0 Townhouses
6 Condos

70 Contingent & Pending in February 2008
61 Houses
5 Townhouses
4 Condos

34 Sold in February 2007
26 Houses
4 Townhouses
4 Condos

13 Sold in February 2006
7 Houses
4 Townhouses
2 Condos

46 Sold in February 2005
30 Houses
7 Townhouses
9 Condos

45 Sold in February 2004
38 Houses
3 Townhouses
4 Condos

45 Sold in February 2003
40 Houses
3 Townhouses
2 Condos

57 Sold in February 2002
46 Houses
5 Townhouses
6 Condos

48 Sold in February 2001
36 Houses
6 Townhouses
6 Condos

48 Sold in February 2000
36 Houses
6 Townhouses
6 Condos

15 Expired in February 2007
10 Houses
3 Townhouses
2 Condos

20 Expired in February 2006
14 Houses
2 Townhouses
4 Condos

5 Expired in February 2005
4 Houses
1 Townhouses
0 Condos

10 Expired in February 2004
9 Houses
1 Townhouses
0 Condos

15 Expired in February 2003
13 Houses
0 Townhouses
2 Condos

19 Expired in February 2002
17 Houses
1 Townhouses
1 Condos

23 Expired in February 2001
20 Houses
0 Townhouses
3 Condos

9 Expired in February 2000
8 Houses
0 Townhouses
1 Condos

Los Angeles Real Estate http://www.LAHomeSearch.com

To search for "For Sale By Owner" properties in the Los Angeles Real Estate Market visit http://www.FSBO.LAHomeSearch.com

Thinking of Selling? To get the most Money, Fastest Sale, and the Fewest Problems, visit http://www.LAHomeSearch.com

About the Author
Greg M. Ingerson, Attorney At Law & Real Estate Broker, is a real estate Broker with LA Home Search in Los Angeles, California. To learn more about the Los Angeles Real Estate Market, please visit http://www.LAHomeSearch.com