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 288 homes for sale in Palos Verdes and 41 sold. Translation, under current market conditions, in any given month, you have about a 1 in 7 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 April 1, 2008, there were 288 active listings for sale in the Palos Verdes Market (Area 160-176): 237 Houses; 20 Townhouses; and 31 Condominiums.

In the past year, there were 604 homes sold in Palos Verdes (between 4.01.07 and 3.31.08): 486 Houses; 55 Townhouses; and 63 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 2.1 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 176 days, Townhouses will be on the market an average of 131 days, and Condominiums should be on the market an average of 177 days.

Market Recap for the Month of March 2008
When one compares the March results with the yearly result, we find that there is an approximately 7 month inventory of homes for sale in Palos Verdes.

Broken down by specific property type, we find that there is a 6.8 month inventory of Houses, a 6.7 month inventory of Townhouses, and a 10.3 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.

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Palos Verdes Home Sales by the Numbers
41 sold in March 2008
48 sold in March 2007

288 Current Active Listings
237 Houses
20 Townhouses
31 Condos

41 Sold in March 2008
35 Houses
3 Townhouses
3 Condos

24 Expired in March 2008
15 Houses
4 Townhouses
5 Condos

64 Contingent & Pending in March 2008
53 Houses
6 Townhouses
5 Condos

48 Sold in March 2007
42 Houses
3 Townhouses
3 Condos

52 Sold in March 2006
77 Houses
4 Townhouses
11 Condos

82 Sold in March 2005
59 Houses
10 Townhouses
13 Condos

90 Sold in March 2004
68 Houses
9 Townhouses
13 Condos

89 Sold in March 2003
61 Houses
11 Townhouses
17 Condos

97 Sold in March 2002
81 Houses
10 Townhouses
6 Condos

70 Sold in March 2001
56 Houses
4 Townhouses
10 Condos

87 Sold in March 2000
66 Houses
10 Townhouses
11 Condos

12 Expired in March 2007
12 Houses
0 Townhouses
0 Condos

16 Expired in March 2006
13 Houses
1 Townhouses
2 Condos

6 Expired in March 2005
4 Houses
2 Townhouses
0 Condos

5 Expired in March 2004
4 Houses
1 Townhouses
0 Condos

14 Expired in March 2003
13 Houses
0 Townhouses
1 Condos

16 Expired in March 2002
15 Houses
0 Townhouses
1 Condos

7 Expired in March 2001
6 Houses
1 Townhouses
0 Condos

10 Expired in March 2000
8 Houses
0 Townhouses
2 Condos

To search for bank owned properties on the market go to http://www.LAHomeSearch.com

To search for Southern California Real Estate including real estate in Beverly Hills, Brentwood, santa Monica, and Malibu go to http://www.LAHomeSearch.com

For Los Angeles Real Estate go to 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