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Greater South Bay market including:

Carson, El Segundo, Gardena, Harbor City, Hawthorne, Hermosa Beach, Inglewood, Lawndale, Lennox, Lomita, Manhattan Beach, Palos Verdes Estates, Palos Verdes Peninsula, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, San Pedro, Torrance, & Wilmington.

It is refreshing that most of the news stories that I have read about the real estate market have been positive this past month. The Greater South Bay (GSB) has not seen the drop in prices over the past few years that more inland areas have experienced. Many areas in Riverside and San Bernardino have seen reductions in prices of over 50% since 2007. During the past three years prices in the GSB have been relatively stable. Chart 1 graphs the number of monthly sales in the GSB since January 2009. Sales peaked in the summer months each year and have dipped each year in January. Note how similar the numbers of monthly sales are for July 2009, 2010 and 2011. Data for all of the charts include single family homes, condominiums are not included.

The blue area in Chart 2 shows the monthly median sale price of GSB homes since January 2009. The seasonal peaks and valleys over the past three years show a slight downward trend in sale prices. List or asking prices have dropped more significantly over the same period. The gap between the median list price and the median sale price in early 2009 was dramatic compared to the past few months of 2012.

The time needed to sale a home is another good indicator of market trends. Typically, market times of less than 60 days indicate a “seller’s market”. Prices tend to increase as market times decrease. As inventory is sold more quickly, fewer listings are on the market. Fewer inventories create pressure on prices to increase. Chart 3 shows that the days needed to sell a home decreased during most of 2009 only to bounce back in 2010 and 2011. The past six months show market times of over 60 days. Marketing time also varies within the GSB depending on the city and asking price. Smaller, lower priced homes in GSB neighborhoods tend to sell more quickly than larger, upgraded, higher priced homes.

Chart 4 illustrates the monthly number of new listings entering the market and the monthly number of expired listings. Expired listings are homes that did not sell and were removed from the market. Expired listings peaked at the end of each year over the past three years. The 2010 area of the graph mirrors 2011. You can see how the number of monthly new listings has been reducing since January 2010. As stated before, fewer inventories will create pressure on prices to increase.

Further evidence of a stable market in the GSB is shown in Chart 5. Each of the past three year’s graph is very similar. The summer peaks show a slight increase in sales volume and the past three year winter valleys are almost identical.

My favorite chart this month is Chart 6. Our MLS reports that every month since January 2009 the total number of active listings is between 99,000 and 100,000.

Even though I appreciate the good news of an improved market, the GSB data continues to demonstrate a stable market.

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South Bay Market Trends .com

May 2012

Based on information from the South Bay Association of Realtors/Multiple Listing and/or other sources. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent providing the information contained herin may or may not have been the Listing and/or Selling Agent.

Chart 1 - Sales

Chart 2 - Median List & Sale Price

Chart 3 - Days to Sell

Chart 4 - New vs. Expired Listings

Chart 5 - Sales Volume

Chart 6 - Total Listings