I recently completed some research for several clients of mine interested in a beautiful complex of condominiums overlooking the Ocean in Rancho Palos Verdes.  I thought I would share my findings with all of you! 

The real estate market in the South Bay area, including the Palos Verdes Peninsula, has faired better than some neighboring areas, however, we have all seen a slowdown in activity and a slight decrease in perceived home values.  Unfortunately, the press has in some cases exaggerated the state of the market and this has affected how some buyers approach a purchase.  Also unfortunate are the situations where homes are placed on the market at inflated prices only to sit stagnant and consequently slide down below their true market value.

Palos Verdes Bay Club sale prices have nearly tripled from 1994 when the average sale price was $230,000, to $680,000 in late 2005.  The highest prior sale price of $410,000 occurred in 1992.  History has shown that market highs are always exceeded but lows are very rarely matched. 

Also, there have been an average of eleven units sold per year over the past decade.  Last year was well below the average at three units sold, but this year has seen a return to normal market activity with ten sales to-date, at an average value of $648,000.   Also noteworthy, units currently in escrow were priced accordingly and thus sold in much less time that units sold earlier in the year, and thus retained more of their value.

The forecast is that this market lull will continue, but today's market cycles move more quickly than cycles in the past.  Please feel free to call me at 310.351.9830 or email me at SellingHouses@aol.com with any questions you may have or if you would like greater detail on the information provided.