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2025 Wrap for South Bay Real Estate

South Bay:

First glance at the month to month December numbers: A 12% increase in December sales brought smiles to a lot of faces, until they realized this only corrected half of the 23% drop in November sales volume. This past year saw a lot of one-step-forward-two-steps-back. The annual numbers make it look like that will continue to be the pattern into 2026. Median prices found gains for the Beach and the Hill, while prices slid in the Harbor and Inland areas.

Year over year, December sales were mixed, with sales volume dropping at the Beach and on the Hill. At the same time, the Harbor and Inland areas experienced solid increases in sales. Median prices for December showed a reverse pattern, with the median increasing at the Beach and on the Hill, while it dropped in the Harbor and Inland areas. This has all the earmarks of being a market peak.

Without getting into details about the monthly statistics, those are covered below, let’s move on to what the year over year data reveals. In the end, 2025 showed a solid 4% growth in sales over 2024. This broke down as: Beach 10%, Harbor 3%, Hill 6% and Inland 1%. It’s important to note the sales volume over the final four months of 2025 were nearly all lower than the same month in the preceding year, showing a persistent drop in sales. Where the early months of the year were overall positive, despite choppy performance, across the board, there has been a slow decline in comparison to last year.

The year began with double digit increases in sales volume across the South Bay, registering 11% in January and 19% in February. The number of homes sold bounced around a lot during the year and ended with a mere 4% increase in sales volume over 2024, with three months out of 2025 being negative.

A slowing in the sales volume doesn’t necessarily dictate a slowing in the median price, although this year it did. The 2025 median for each area showed a 1-2% increase in price everywhere except the Beach were the median trebled to an astounding 6%. One might suspect a bit of investment fever in pricier neighborhoods. Several decades after being a disreputable neighborhood of the displaced and homeless, the Beach areas have become the place to invest extravagantly.

Interestingly, this aligns neatly with a statement in the Federal Reserve’s Beige Report of 1/14/26. “Several Districts also noted that spending was stronger among higher-income consumers with increased spending on luxury goods, travel, tourism, and experiential activities. Meanwhile, low to moderate income consumers were seen to be increasingly price sensitive and hesitant to spend on nonessential goods and services.”

Note, this is not yet a reversal in price increases, like that seen in 2023, but is a distinct slowing of the increase. The rate of increase has fallen from the double digits of 2021 and 2022 to barely remaining positive at about half the rate of 2024. One could easily envision median prices going negative again in 2026.

Such an event might be readily termed “a correction” given that current median pricing is showing roughly 40% above the median from 2019, the last year prior to the Covid pandemic and associated market disruption. That 40% calculates out to about a 6% annual increase, three times greater inflation than the 2% sought by the Federal Reserve.

It has been said the only reason median prices are still climbing at all is the shortage of homes available on the market. Inventory figures appear to be off about 15% from the peak in 2019, just before the pandemic. When the Fed responded to the frozen market and interest rates plummeted, inventory levels fell equally rapidly. By 2022 inventory had dropped to 50% of the 2019 levels. Those home sales, and the huge refinance boom that accompanied them put roughly 40% of the homes in California on a 3%+/- mortgage interest rate. Those homeowners are only selling if absolutely necessary, which is keeping the inventory artificially low and simultaneously keeping median sales prices artificially high.

Beach:

In December, home sales at the Beach increased to 90 units, or 11% greater than November. As noted above, that did not erase the 23% decrease in sales from October to November. At the same time, the median price increased by 4% to $1,825,500.

Compared to December of 2024, the number of residential sales has declined by 16% while the median price increased 1%.

For the year 2025, the number of homes sold at the Beach increased by 10% over 2024. Versus sales for 2019, the market remains depressed by 19%. Sales volume is increasing slightly, but it feels depressingly slow.

For the same period, the median price increased by 6%, which has inflated 45% since 2019.

Harbor:

By virtue of mathematical probability, the Harbor area is the most stable of the four demographic areas in the South Bay. December home sales at the Harbor rose 14% to 298 units, very much in line with the total South Bay increase of 12% over November numbers. At the same time, the median price fell by $779,275, for 4% drop.

On a year over year basis, home sales this December exceeded sales in December of 2024 by 19%. Opposing the volume gain, the median price declined by 3% for the same period.

Looking at the full year, 2025 saw more homes sold by 3%, with the median price increasing by 1%. The bump up in sales volume can be viewed as positive recovery from over-exuberant financing of the Covid years. The median price increase is simply an aggressive response to the low inventory.

Sales for last year fall 22% the volume in 2019, and median prices are currently 40% above those of 2019.

Hill:

November versus December sales on the Hill brought in a zero change for the 45 units sold. The median price showed an increase of 1% to $2 million even for the final month of the year.

Year over year, December ended at a 10% decline in the number of homes sold in 2025, while jumping up for a 14% rise in the median values of those homes. As always, the small sample size of PV sales may lead to extreme results, so feel free to call if you have a specific question.

For the year as a whole, compared to 2024, 6% more homes were sold on the Peninsula in 2025 and the median price was 2% greater. Compared to 2019, sales volume was down by 17% while the median price was up 46%.

Inland:

The number of homes sold in the Inland area for December jumped 14%, to 116, from November, while the median price fell by 3% to $838,500.

Annually, December 2025 gained 9% in sales volume over the same month in 2024. Median price for that period fell by 6%.

Inland sales enjoyed a 1% increase year over year in 2025, while also seeing a 1% increase in median price. Compared to 2019, sales volume remained suppressed by 19%, while median price ended 2025 with a 33% increase.

Beach=Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo
Harbor=Carson, Long Beach, San Pedro, Wilmington, Harbor City
PV Hill=Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates
Inland=Torrance, Lomita, Gardena

Photo by Carl Clark

What To Expect From Virtual Tours

Virtual tours and showings are a great way to speed up home viewing, but because you are not physically in the space, there are a lot of negatives. A virtual tour guides you through the best features of a home that has been properly staged with touched-up photos. This makes it look good, but doesn’t show how it actually looks. Camera angles and zoom levels can avoid defects or distort room sizes. The tour may even completely ignore some walls, rooms, or the ceiling or floors.

Find out exactly what you are seeing and what is not being shown. If something is missing from a virtual tour, it may be because it doesn’t look good, or the tour wasn’t done very professionally and might misrepresent the home. Virtual tours don’t always include the basement, so be sure to check if there is one and what its condition is like. Even if you use virtual showings as a preliminary screening, you should also check out the home in person before purchasing. If you can’t view the home in person for whatever reason, have your agent be your eyes in your absence by checking for any defects, such as wall cracks, evidence of past water issues and any other flaws.

Photo by Nicolas Solerieu on Unsplash

What Will Trump’s Mortgage Bond Purchase Do For The Economy?

President Donald Trump recently announced a plan to purchase $200 billion in mortgage bonds, also known as mortgage-backed securities (MBS). Trump intends to use cash reserves from Freddie Mac and Fannie Mae to fund the purchase. But what are MBS, and what does that mean for the economy?

The first question has a definite answer. MBS are investment packages consisting of many home loans. This is not unusual; Freddie Mac and Fannie Mae already package together the individual loans sold to them and resell them to investors as MBS. What is not as common is using cash reserves from Freddie Mac and Fannie Mae to purchase already packaged MBS on the secondary market, as Trump is planning to do. This does not mean it never happens — it’s a standard tactic for intervention during financial crises.

So if it’s a strategy for improving the economy during financial crises, that makes it a good thing, right? Well, not necessarily. What’s most important is the signal being sent. The expectation is that purchasing MBS signals higher demand, which would likely result in increased prices on MBS. With increased prices, MBS yield is lower. With mortgage rates being influenced by MBS yield, this theoretically also reduces mortgage rates for homebuyers. But notice that this involves multiple steps, and not all of them are certain. Supply and demand are often treated like immutable laws, but at their core, they are probabilistic models. And when the model doesn’t conform to reality, there can be disastrous effects, such as the 2008 recession that resulted from purchasing subprime mortgages.

So what we need to know is what sort of signal Trump’s $200 billion MBS purchase is likely to send. According to economists at Realtor.com, probably not much of one. $200 billion may sound like a lot of money, but it’s very little in comparison to the trillions of dollars spent on MBS for financial intervention during the Covid-19 pandemic. While many months of significant MBS purchases certainly had a strong positive impact in 2020-2022, a single low-value purchase doesn’t necessarily signal increasing demand, merely a one-time spike. At most, this could cause a small temporary decrease in mortgage rates. This is especially true because investors are humans, not calculators. They may barely notice the small spike in demand, or they may consider it an uncertain investment, since they’re aware it’s a one-time event. All in all, Trump’s $200 MBS purchase probably won’t have a significant effect on the economy.

Photo by Jakub Żerdzicki on Unsplash

More: https://www.realtor.com/advice/finance/mortgage-bonds-explained-trump-proclamation/

South Bay Real Estate Slowing

After a big 7% dive in October sales, annual real estate sales flattened out in November. Compared to November of 2024, the numbers are showing zero change for the Los Angeles South Bay. Sales were mixed across the areas. Median prices were mostly increased, though modestly compared to early in the year.

Downward pressure has increased in both sales and prices from month to month throughout the year. While 2025 continues to exceed 2024 in all metrics for all areas, the margin has grown smaller continually. Anecdotally, the real estate market has been slow and is slowing. This time of year slower sales are expected, though the seasonal slowdown this year seems to be a bit faster than usual. Median prices are not necessarily affected by the season, so the shift in pricing is one more indicator of a slowing real estate market.

Even two decreases in the prime rate by the Federal Reserve has done nothing to help. The most recent drop of .25% actually saw a .125% increase in the mortgage rate the next day.

In a couple weeks the year will be closing out and 2025 will become history. We’ll get the annual wrap-up out to you with a forecast for 2026 as early in January as possible. Enjoy your holidays!

Beach:

The number of homes sold in November in the Beach area plummeted in comparison to October. Sales dropped 30%, coming in at a mere 81 units. At the same time, the median price dropped to $1,750,000 to register an 8% decline. This is the sixth time this year Beach Cities sales have fallen compared to the prior month, and the eighth time the median prices have done likewise.

November of this year compared to November of 2024 showed mixed results. The volume of sales dropped 2%, while the median price rose 6%. This is the third month in a row annual sales have declined at the Beach. The annual median started in January at 32% increase, and has steadily dropped, falling below 0% four separate months.

With only one month remaining, the year to date numbers show a strong 12% growth in sales and 6% increase in the median price. The sales volume remains 17% below the number of homes sold during the same period in 2019. The median price at the end of November was higher than that of 2019 by 45%, significantly above the Federal Reserve System’s ideal of 2% inflation per annum.

Harbor:

November real estate was good for the Harbor area. At 262 homes, monthly sales volume looked horrible–down 19%–but that seemed really good next to the South Bay wide drop of 23% in home sales. A median price of $812,000, an increase of 3% above October figures, was impressive compared to an approximate drop of 6% in most of the South Bay.

On an annual basis, this November came in with a modest 2% increase over last year. Again, this was a marked improvement over the 0% increase of the South Bay as a whole. Year over year median price was the only market statistic for November home sales the Harbor area didn’t dominate. Both the Beach and the Hill areas showed greater increases, at 6% and 10%, respectively.

Year to date, the Harbor area gives a classic display of capital growth, with a 2% increase in sales volume and a matching 2% increase in median price. Sales have fallen to 21% below 2019 levels, while the median price remains at 40% above 2019.

Hill:

Like the Harbor area, the Palos Verdes peninsula slipped in the number of homes sold compared to last month. With only 45 properties sold in November, the Hill dropped 18% in sales. The median price of $1,990,000 gave an 8% increase over the October median sales price.

Year over year, November residential sales rose 13% above 2024. This was the highest increase in sales volume of the four areas, far exceeding the total South Bay number, which was 0% growth. The Hill also came in with the greatest median price, jumping by 10%.

Looking at the combined activity of January through November, compared to the same period last year, sales volume was up 7%. Median price for the period was up by 1%. Compared to pre-pandemic statistics from 2019, PV home sales were down by 15% year to date, and the median price was up 45%.

Inland:

For November the Inland area dropped in all four metrics, sales volume and median price, for month over month and year over year. The number of homes sold dropped 28% on 102 units. The median price fell 6% to $865,000.

Annually, volume fell 8%, the steepest decline in the South Bay. Compared to last November, the median price was off by 3%.

Year to date remained in positive territory with 0% change in number of sales and a 1% increase in median price. Sales volume continues to be off from 2019, showing a 19% decline. Median price compared to pre-pandemic pricing remains up by 33%.

Photo by Hieu on Unsplash

What Is A Preliminary Title Report?

Most real estate transactions involve a preliminary title report. This report has details relating to the condition of title for each parcel of real estate. It will verify ownership, reveal any liens and encumbrances and identify easements. These title search elements are found in county property records. Once the information is gathered, it sets forth the conditions for which the title insurance company will issue a title insurance policy. A preliminary title insurance report is usually run once a real property sale opens escrow.

The preliminary report will also outline exclusions that would not be covered under the title insurance policy. The exclusions section of the report is important because it informs all parties of problems before a sale will close. Unpaid taxes, liens, unrecorded easements and judgements will be “clouds on the title” that will have to be resolved prior to change of ownership and before a title insurance policy can be issued.

Photo by Van Tay Media on Unsplash

Tips For Selling Your Home In Winter

In the winter, there’s less real estate activity, but that also means that the most motivated buyers will have fewer options — which might just include your home. So, if you’re planning to sell in the winter, it’s important to not get lazy, even if demand is low. Good maintenance is important this time of year, whether you’re selling or not. This is especially true in areas that get snow. Drafts, fogged windows or heating that struggles to keep up can raise concerns quickly. Before listing, service your heating system, seal any gaps around doors and windows and address any lingering repairs.

Once you’re ready to list, make sure prospective buyers actually want to look at your home. Snow or no snow, first impressions matter. Keep walkways clear, salt any icy areas and trim dead branches or leftover fall debris. If you have outdoor lighting, use it to brighten the pathways and highlight your entryway, as shorter days mean buyers may be arriving after dark. Be sure to keep everything clean and clutter free. Winter boots and coats can multiply fast at this time of year, so create a neat entry space and hang any winter clothing out of the way. Fresh rugs, clean floors and organized storage areas will go a long way toward improving your home’s appearance.

Make the inside of your home comfortable as well. Warm temperatures, soft lighting, and subtle seasonal scents help buyers imagine themselves settling in. If you have a fireplace, showcase it. Consider layering throws, arranging comfortable seating and ensuring windows are spotless to maximize natural winter light.

Photo by Tracy Adams on Unsplash

South Bay Home Sales Stumble

Ten months of data tell a story of Los Angeles South Bay real estate market that has bounced from strong monthly volume increases one month to devastating decreases the following month and back again. Likewise, monthly median prices have ranged from double digit positives to double digit declines.

Both sales volume and median prices suffered the same wild swings early in 2025. As the year progressed, sales statistics have begun to stabilize. For the most part volume and price are now differing from last year predominately in single digits.

Most of those changes are now ending as declines. For the first time this year, October sales volume was down in all four market areas, for a total decline of 7%. Last month volume was down in three of the four, and down across the South Bay, though by a statistically insignificant amount.

Year over year median prices slipped in October for the high end of the market. Homes in the Beach and Hill areas fell slightly. Those in the Harbor and Inland areas rose slightly. With the notable exception of the Beach area, median prices have been falling all year. At this point it looks entirely possible to see the final median price for 2025 fall below that for 2024.

Forecasts from the Federal Reserve hint at another .25% decrease in the prime rate during the December meeting. While such a move has a “feel good” quality, some Fed leaders have said the real problem is a weakening in the employment market. Estimates made earlier in the year are already being revised to show increased unemployment and decreased purchasing power. Either of those alone will impact real estate. Both together could kick off the recession major banks are preparing to face.

Beach:

Compared to September business, home sales at the Beach jumped up 18% in October. For perspective, it should be noted that sales volume was down by 9% in September, after falling 17% in August. While volume increased for the month, the median price dropped 3%, coming in at $1.899,000.

This close to the end of the year, annual comparisons are more meaningful than month to month. The 118 homes sold in October was a 9% reduction from the same month in 2024. Similarly, the median price took a hit, ending a mere $1,000 below last year.

Year to date, both the sales volume and the median price are still up from the first 10 months of 2024. Sales volume is up 14% and the median sales price is up 8%. Both metrics have been deteriorating since the end of the first quarter and are expected to continue downward.

Harbor:

With 322 homes sold in October, the Harbor area experienced a 5% increase in sales volume over September. The area simultaneously registered an inconsequential $2,250 decrease in median price from $795,000 to $792,500.

Sales volume fell 7% from last October after having dropped 3% in September. Sales have declined in four out of the last five months. Despite the lower number of sales, the median price increased by 2% for the month, following a 5% increase in the prior month.

Year to date, home sales in 2025 have lessened each successive month in comparison to 2024. As of October, sales volume this year was 2% higher than it was in 2024. Continued declining sales threaten to shift the market into negative range. The median price for the first ten months stood at 1%. That number too appears to be faltering.

Hill:

October left little question about the real estate market on the Hill. Nearly everything was down—monthly and annual—volume and prices. On sales of 55 homes, volume dropped by 31% from September. The median price of $1,840,000 was 14% below the prior month.

Looking at the same month in 2024 shows 17% drop in the number of homes sold on the Palos Verdes Peninsula, the largest decline among the four areas for the month of October. The median price for the month was likewise the largest decline of the month, dropping 4%.

Through October, sales volume in the Hill area brought a bit of relief with a 6% gain over the same period in 2024. The median price took that respite away as it dropped 1%.

Inland:

Monthly statistics for the Inland area showed the most positive results of the four areas, though they ended mixed. With 142 homes sold, the area had a 20% gain in sales. The volatility of the monthly data came through with a decline of 9%, as the median price fell to $919,000.

Comparing the month of October from 2024 to that of 2025 shows the opposite mix with the number of sales down 1% while the median price rose by 5%.

With 2025 nearing its end, the year to date number is most important. As the year has passed by the outlook for the total year has looked increasingly negative. Each successive month the sales volume has moved toward negative growth, as has the median price. The Inland area was the closest to negative for October with 1% more sales for the period than were recorded in 2024. For the same period, median price in the Inland area has remained 2% above the median for 2024.

Photo by Benoit Debaix on Unsplash

How To Get The Most Out Of The Open Houses You Visit

Open houses are a very useful tool for learning about a property. But it’s not just about walking in, taking a look around, and walking out. Full advantage of visiting an open house is achieved if you can time your visit when there are very few lookers roaming through the house. Too many visitors, and you won’t be able to take in details and may not have an opportunity to speak to the agent or homeowner. If you’re the only visitor, you might miss out on insights from others looking at the property from a different perspective.

You can also learn about more than just that one property. If you’re focused and paying attention, you can learn about an entire neighborhood just by visiting open houses. Observe your surroundings as you’re traveling and notice patterns in traffic and what the neighbors are doing. Once inside, use the information you learn not only to decide whether you want this home, but what some of your expectations can be for other homes in the area. This is particularly effective if you are visiting more than one open house in the same neighborhood. And this is just from the open houses — you can absolutely use this opportunity to directly speak to neighbors. Sometimes neighbors even visit open houses without any intent to buy.

Photo by Teagan Methorst on Unsplash

Questions To Consider Before Buying A Condo

The appeal of a condo over a single family residence or an apartment unit is that is a mix of independence and convenience. This isn’t the right choice for everyone, but even if it is, that doesn’t mean everything is necessarily perfect. There are plenty of hidden pitfalls to consider, some of which apply to any purchase, but some of which won’t necessarily apply to other types of homes.

It’s not uncommon for condos to have deferred maintenance, particularly since the HOA often needs to agree to it. A fancy entrance lobby can hide deeper problems. Take a good look at hallways, stairwells and elevators. Peeling paint or broken lights often signal bigger maintenance issues. Sometimes the issue isn’t deferred maintenance, but foundational problems. Walk the grounds and check for cracks, uneven floors or other signs of sloppy workmanship.

Check the finances. If monthly condo fees seem high compared to nearby buildings, find out why. Ask to see the condo association’s financial statements. Ensure that there’s a healthy reserve fund to deal with unexpected problems. Check to see if the owners are up to date on their payments, as well. If lots of owners are behind on payments, that’s a warning sign. It could mean the community’s financial stability is at risk and that repairs might get delayed.

Spend some time visiting, including at different times of the day. This will help you get a feel for the actual day to day living. You might not notice thin walls until you can hear your prospective neighbors at night, and you want to be prepared for what rush hour traffic is like in the area. Talk to current residents, as well. No one will know better than those who live there what living there is like. They may also be more willing to discuss complaints they have about management with a potential neighbor than they would be sending in a complaint to management.

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AB 851 Now In Effect

Assembly Bill 851 is a new law that requires written attestation that a home sale was not due to an unsolicited purchase offer. It went into effect November 10, 2025, and will remain in effect until January 1, 2027. The law applies to select ZIP codes within Los Angeles County and Ventura County. The affected ZIP codes are 90049,90263, 90265, 90272, 90290, 90402, 91001, 91024, 91103, 91104, 91106, 91107, 91301, and 91302 in Los Angeles County, as well as 91320 in Ventura County.

The goal of this bill is to reduce predatory purchasing in areas affected by the recent wildfires. However, it applies to all sales in these ZIP codes, regardless of whether the seller was affected by the wildfires or not. Under AB 851, an unsolicited purchase offer refers to any offer made without public indication that the owner is willing to sell. Public indication can be a listing with an agent, a For Sale By Owner sign, or a public online posting. Both the buyer and the seller must sign the attestation, and it must be attached to the grant deed.

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South Bay Real Estate, Third Quarter Report

In real estate, sales volume is always a good indicator of market direction, of what buyers are focused on. Looking across this year in the Los Angeles South Bay, with September in the mirror, the number of homes sold each month in comparison to last year, tells a story. The tale starts in January with a healthy 11% increase over January of 2024. In February that number nearly doubled to a 19% increase.

In March the comparison dropped into single digits and through May increases were 2%. 9% and 7%. Buyers were not responding to the homes on the market. Sales were slowing. Then June hit with a zero change and July followed with a -1%—even more slowing. August showed a 10% rebound in sales, frequently attributed to the ‘back to school’ rush of sales closures. For September homes sales dropped back to 0% versus September of 2024.

Essentially much of the annualized increase in the first quarter of the year has evaporated. What was a 30% annual growth is now a 6% growth rate. Delving a little deeper into where in the South Bay changes are occurring shows sales declining in the Beach area (detail below) as well as in the Harbor and Inland areas. Last month sales on the Hill were the only positive influence on the broader South Bay sales statistics (detail below).

The impact of the slowing homes sales across the South Bay can be seen in the falling prices across the region. September is the first month since January where median prices rose in all four areas. The year started with increases across the board and immediately started losing ground in February with a price decline in the Harbor area. For the next six months median prices slid in more than half the sales recorded, see-sawing back and forth across the four areas.

As of now, with the third quarter of the year complete, median prices are up appreciably only at the Beach. Year to date, compared to the same period in 2024, prices of Beach area homes were 9% higher than last year. However, keep in mind, the other three areas are essentially at zero growth versus 2024. Price appreciation at the Beach has remained stronger than the rest of the South Bay, but appears to be faltering as the year goes on.

So, what should one expect for the balance of the year? Sales are 15%-20% below pre-pandemic levels, while median prices are 30%-50% above. Based on the supposed ideal of 2% inflation, those prices should be around 12.5%, or roughly one third of the increase we’re seeing. At least a few financial CEOs are referring to the current environment as an “asset bubble” in the nature of the 2008 collapse.

A good deal of the price appreciation is a result of lower inventory levels which are not expected to recover until the end of the decade. It remains as a reminder of when interest rates were hovering around 3% and home prices were easily inflated. While many are still riding the wave of inflationary increases, many buyers are balking.

At the same time the economy in general is squeezing the typical home buyer with stubborn mortgage interest rates, an increasing cost of living and shrinking paychecks. It seems apparent something is going to give. Jamie Dimon, of JP Morgan Chase, is reported to have said the market could implode within six months, or could last another two years.

Confining the discussion to local real estate, the market appears to be on course to a point where price resistance causes inventory levels to drop enough to compel sellers to lower prices. Extending the spreadsheet out to the end of the year, while continuing the current trend shows homes sales continuing to decline, slipping to about 4% over 2024 levels for the South Bay as a whole. Median prices at the end of 2025 should be slightly lower than they were in 2024. Probably not by a statistically significant margin, but lower.

Beach:

Monthly home sales at the Beach took a 9% hit in September, dropping to 98 units sold. Month to month sales volume has been up and down throughout the first three quarters. While there have been some dramatic swings—like a 40% drop in January, followed by a 70% increase in February—most of the ups and downs have been confined to a much narrower range.

Looking at monthly median prices, September was $1,962,915, up from last month by 5%, the highest gain since it rose 30% in January. Six of the seven intervening months were negative with August being the only other positive month, and that with only a 1% increase.

On an annual basis, September is the first time in 2025 the number of homes sold in the Beach Cities has dropped below same month sales for 2024. Sales volume has dropped several times in month to prior month sales, but this is the first annual decline.

The Beach had been having an unbelievable year, with sales volume increases in the double digits most months. Then, September plummeted from a 15% increase in August to a 14% decline in annual sales. At the same time, median prices repeated the 10% increase experienced in August.

Year to date, through the third quarter, the number of sales stands dramatically higher than the rest of the South Bay. The 17% increase in volume is nearly three times the 6% found across the region. Similarly, the median price at the Beach came in with a 9% increase, while the median across rest of South Bay was 0%. Will the Beach cities continue the out-size performance seen to date? Probably not, but we have three more months to find out.

Harbor:

Monthly sales in the Harbor area dropped 1% in September, falling to 308 homes sold. This follows a 1% increase the prior month. These small monthly swings indicate a stable market, as opposed to the broad double digit sweeps during the early months of the year.

The median price last month was $795,000 up 2% from August. Since the beginning of the year the month to month price changes have all been in single digits and mostly positive. This contrasts sharply with the Beach area, where monthly prices have fallen nearly every month this year.

Year over year, September home sales in the Harbor area dropped 3%. This is effectively a return to the pattern started in June when sales volume began to slide. August was the outlier, up by 7%, similar to the rest of the South Bay in the month before school starts.

Median prices for this September were 5% above last September. It was also the first increase in the median price since June. The median is beginning to look rather flat at the Harbor.

With three fourths of the year gone, the Harbor area appears to be setting the pace for the South Bay. Sales volume has been shifting down since before the summer buying season and currently rests at a 3% increase in the number of homes sold compared to the same period in 2024. Median prices have been moderating, with a year to date increase of 1% over last year at the third quarter.

As an interesting side note, compared to the same period in 2019, sales volume is down 21% (that ten year Covid deficit), and median prices are up 41% (the Covid bubble?).

Hill:

Any conversation about statistics and the Palos Verdes Peninsula needs to start with an understanding that this is a statistically tiny sample and one or two unusual sales can dramatically skew the results. September of this year is a classic example.

Contravening the direction of the rest of the region, September sales on the Hill skyrocketed 36% over August for a total of 80 homes sold. The median price likewise showed a significant increase, jumping 19% to hit $2,143,000.

Comparing this year to last September shows a phenomenal sales volume increase of 70%. This is nearly three times any similar percentage recorded this year. That same upward leap carried across to the median price which came in at a 26% increase; nearly three times any other increase in the region.

Looking at the detail of this anomaly one finds that in a typical September there are somewhere around 60 units sold on the PV Peninsula. Last year there were only 47 homes sold—this year there were 80. Nothing special, just two successive years going opposite directions in a tiny sample.

Despite the scorching monthly numbers, for the first nine months of the the year, Palos Verdes shows a 10% increase over 2024 sales volume. Still a healthy increase, but much more in line with reality. Median price for the year to date is actually a 1% decrease even though the September statistics show increases in the median. Out of nine months, four have been increases while five have been decreases.

Looking back at 2019, the last ‘normal’ year before the pandemic, reveals sales volume is currently 11% above that of 2019 and the median price is up 45%.

Inland:

The Inland cities experienced an 11% sales decline in September, falling to 188 homes sold, after an anemic August increase of only 2%. Yet another indication the residential real estate market is on a downward trajectory. That fall was accompanied by a surprisingly strong 14% increase in the median price, jumping up to $1,006,000. Month to month sales data for the Inland has been relatively consistent so far this year, with ranges often in the double digits.

Looking back to the same month last year shows an 8% drop in the number of Inland area homes sold. This is consistent with the rest of the South Bay, excepting the fluctuating numbers on the hill (see above). The median price, like the South Bay overall, was strongly positive with a 14% increase.

Looking at the Inland area longer term, comparing the first three quarters of 2024 to the first three of 2025 shows a modest increase of 1% in the number of home sales. This is the lowest increase of the four areas in LA’s South Bay. Year to date across the region is a 6% increase in volume. Sjifting focus to the median price, the record shows 0% change, or at best a rounding error in the 2024 versus 2025 median prices.

Once again, looking back to the 2019 baseline, Inland area home sales volume in down 18% from 2019 and the median price is up 33% from 2019.

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How Do I Know When I Should Sell?

Deciding to sell your home can seem very daunting. After all, the decision of which home to buy is very important — and typically, when you’re selling your home, you’re also buying a home at around the same time. Coordinating all that is difficult. While this is all true, knowing when to sell is actually a lot simpler than knowing what to buy.

Many of the reasons to sell are primarily personal. Do you need to upsize because you have a kid coming soon? Are you ready to downsize because your kids have moved out? Did you switch jobs? It all pretty much boils down to: Does your current location no longer serve your changing needs? If that’s the case, it probably is a good time to sell, as long as the market isn’t tanked. Much of the time, even your finances are better served in a home that caters to your needs than a slightly less expensive home that simply doesn’t work for you.

Sometimes the reasons are purely practical. If maintenance starts piling up, keeping up with it can be both more expensive and more time consuming than switching to a lower maintenance property. This can be one that doesn’t require as many, or any, repairs, or just a property that is smaller or easier to maintain. It’s also possible in any given moment that the numbers just simply make sense. Maybe your home value has risen, and you know you can sell and purchase a property with a better fit at a similar or lower price. Recognizing this does require keeping a critical eye on the market, and acting on it requires adaptability and a willingness to let go of any sentimental feelings about your current property.

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How Does A Short Sale Work?

When a buyer makes an offer on a home where the proceeds from the sale would be less than the seller owes on the loan, this is called a short sale. At this stage, only the agreement between the buyer and seller is involved. However, in order for a short sale to close, the lender must also approve it.

The seller’s agent takes a short sale package to the lender for review and approval. The package includes the purchase contract, a hardship letter explaining why the seller can’t keep the home, and any market conditions that create the need for a short sale.

The lender will analyze the short sale request and determine how accepting less than what is owed affects their bottom line. The lender may come back with a letter stating the specific terms and contingencies that must be incorporated into the deal in order to release the lien and close. The sale will be “approved for short sale” if the buyer and seller can meet those specified terms.

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Can I Buy And Sell At The Same Time?

Some people sell their houses before buying others, giving them clear budgets for their next places. It makes financial sense, but there’s the risk that you might end up couch surfing or having to rent somewhere in the meantime. Others buy first, locking in their dream homes before they’re snatched up, but that can mean carrying two mortgages at once. So is there a way to eliminate both issues, by both buying and selling simultaneously?

Absolutely. It will take some planning and help from an agent, but you can definitely buy and sell at the same time. The key is timing. Your agent will help align your sale with your purchase. You may have to negotiate a rent-back deal or a flexible closing date. It’s also smart to get preapproved for a mortgage early so you know what’s realistic. And if you need a financial cushion, options like bridge loans or home equity lines of credit can help you cover gaps between buying and selling. It’s something that requires both planning and flexibility on the part of both you and your agent, but it’s certainly a viable option. As an added bonus, it’s also faster than finishing out two separate deals.

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South Bay Real Estate – Headed for a Slow Winter

Real estate sales in the Los Angeles South Bay have been a blend of red and black ink all year. Both the sales volume and the median prices have flipped and flopped from month to month. It hasn’t mattered whether the numbers are comparing last month to the prior month, or to the same month in the prior year. They’ve all been crazy with huge, wild swings.

Before the Covid pandemic, about 8,600 homes were sold each year in the South Bay. Because the artificially low interest rates during the pandemic created a rush on the market, many buyers who would have purchased in subsequent years, stepped into home ownership early. In 2024, the market transferred slightly over 6,600 homes, still about 30% below the norm. As a result, the number of homes sold each year is anticipated to continue increasing until the market catches up with the extra 4,000 units sold during the market explosion of 2021.

Despite that, the pace of sales has become sluggish, with property staying on the market much longer, and many times not selling at all. Some are being pulled off the sale market and leased out. A few are being pulled back for refurbishment. Many are seeing multiple price reductions before receiving an offer.

Median prices are declining twice as frequently as they were at the beginning of the year. Of the four market areas in the South Bay, only the Beach Cities have a positive median price for the year to date. The Harbor, Inland and Hill areas are all showing lower median prices as of August. There are four months remaining in the year, so there is still time for the outlook to change. Next month ends the third quarter–let’s see what happens!

Beach:

With the heat of August rising and the pressure building to move before school started, home sales in the Beach cities responded positively. Leaving behind most of the red ink, the only negative number was a 17% drop in the number of homes sold in August versus July. Looking at the raw numbers shows July came in with 130 homes sold, the highest in a single month this year, compared to 108 in August.

Despite the slippage in sales volume, the monthly change in median price showed a 1% increase over July. The month ended positively for the first time after six months, with a median of $1,863,000.

Annual sales volume at the Beach has found 2025 higher than 2024 every month of the year so far. This differs from monthly in that monthly sales have been up only four out of the first eight months of the year. August sales were up 15% from August of 2024. Showing a lot more volatility, the median price in August was up 10% from last year, however, the median had dropped by 1% each of the last two months.

Year to date through August reflects a 22% increase in sales volume, though sales are still down 16% from 2019. The median price was up 8% for the same period, which is 47% higher than in 2019.

Harbor:

With 310 homes sold, the Harbor area had a 1% increase in monthly sales volume for August compared to July. That was matched by a 1% increase in the median price, ending the month at $779,500.

Annually, August turnover showed a stronger 7% increase in sales from last August, though the Harbor area registered below the South Bay total of 10% upturn. Compared to August of 2024, the median price dropped $20,500 from $800,000 creating a reading of -0%.

For the first eight months of 2025 the Harbor area produced a 4% lift in the number of homes sold compared to the same period last year. Sales volume remains 21% lower than it was in 2019, the last pre-pandemic year. Year to date the median price has fallen a modest 1%. Compared to 2019 the median is still 41% higher than it was then.

Hill:

There were 59 homes sold on the Palos Verdes Peninsula in August, representing a 21% decrease in sales for the month compared to July. The fact the Hill is such a small area with so few homes bears repeating at this point. Two or three sales, more or less, can swing the percentages to seemingly ridiculous levels. In August, the median price likewise took a dive, falling 18%, to $1,800,000.

Year over year, comparing the same month in 2025 to 2024, shows Palos Verdes splitting another way. Sales volume was up 11% over last August, and at the same time the median price fell by 16%.

The first two thirds of the year have brought the number of homes sold up by 3%, still 15% lower than in 2019. The same time frame shows median price falling by 2%, though still up 43% from 2019.

Inland:

From July to August the number of homes sold in the Inland area climbed to 133 for a 2% increase. At the same time the median price tumbled 10%, falling to $880,000.

Year over year sales volume jumped by 14% in August, reversing the trend of the past two months where sales fell by a cumulative 15%. The median price bumped up by 1%. The Inland area has only had one other positive month since February.

Year to date sales volume is up by 2%, which is still down from 2019 by 17%. Median price for the same period has fallen 1%, and continues to be 35% higher than 2019.

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Essential Considerations Before Buying Any Home

Any time you’re looking to buy a home, you want to know exactly what it is you’re buying. That doesn’t only mean knowing information about the building itself, but also being familiar with the neighborhood. While it’s true that the seller will have to disclose major issues with the property, there could be problems that don’t need to be disclosed.

When someone is selling a home, there’s always a reason for that. The reason could be entirely innocuous — such as changing jobs or moving in with a new partner — but it could also be that the home has deferred maintenance or that the crime rate in the area is spiking. Ask about what repairs and renovations have been done and should be done. Ensure you know about all potential issues, not just the ones that legally must be disclosed. Consider the neighborhood, including crime rates, amenities, and schools, as well as future plans such as upcoming developments, zoning changes, and road work.

Even if there’s nothing wrong with the property or the area, there could be some unwanted surprises. It’s difficult to consider every possible factor in the cost of owning a home, but one that people often forget about is utility costs. These typically aren’t high, but you still need to budget for it. You also need to ask the seller what’s included in the sale. It’s not uncommon that things such as furniture and appliances aren’t included. Once you’ve decided to buy a home, there’s still more useful information. Learn about the state of the market — what prices are like, how competitive the market is right now, how long properties usually stay on the market before selling. Having this knowledge could give you an edge in negotiating.

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Benefits And Drawbacks Of Buying Near Your Work

Proximity to one’s workplace is often near the top of the list of priorities for buyers. While living close to where you work can offer convenience and save time, there are both pros and cons. The correct choice for you is the one that best fits your lifestyle and long-term goals. Consider ranking your priorities to see how important a short commute is to your situation.

It goes without saying that one of the biggest advantages of buying near your workplace is the reduced commute time. Less time spent in traffic and more time for family, hobbies, or rest can improve your overall quality of life and reduce stress. Additionally, living nearby can make it easier to handle unexpected work demands or emergencies.

That’s not the only potential advantage, though. Many workplaces are in commercial districts, which would mean they are also close to amenities, shopping, restaurants, and entertainment. There is also a long-term advantage to living in commercial districts — consistent demand means home values won’t tank. If these other factors are important to you, it may be beneficial to live near your workplace, even if a short commute isn’t high on your list of priorities, perhaps because you work from home all or part of the time.

Living in a major commercial area has its downsides, too, though. They’re frequently dirtier and noisier than residential districts. In addition, the resistance to economic downturns means homes closer to major employment centers or urban areas often come with a higher price tag. This means your budget might be tighter or you may need to compromise on home size or features.

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What The Fall Season Brings For Real Estate Buyers & Sellers

Spring and summer are the most common times to buy or sell a home, but that doesn’t mean the autumn market is without its advantages. And the advantages aren’t exclusive to either buyers or sellers. Both parties can benefit, though the seller might need to put more thought into the right way to attract buyers.

There are a couple major perks for buyers. The first is reduced competition. Because there is less activity in the fall compared to spring or summer, there are fewer other buyers competing with you for the property you want. This means more room for negotiation on prices or repairs. The second is that autumn typically has quicker closing times, so you don’t need to wait as long before moving in. However, you should be careful not to neglect heating, window, and roof maintenance. Winter will be fast approaching, and you don’t want to rush these repairs, especially if your area gets snow.

If you’re a seller, you can probably expect more serious buyers in the fall. People don’t look for homes in the slower seasons without a reason for doing so. The good thing about this is that you likely aren’t wasting your time or money showing your property to them, as long as you’ve set the right price. The difficulty is that more serious buyers are looking for exactly the right property for them. That means the seller needs to put in more effort to make the home look presentable. Fortunately, merely getting ready for the holiday season tends to do just that. Whether you’re showing your home or not, you might have already planned to make your home more inviting for holiday guests.

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South Bay Real Estate – Stagflation?

South Bay: Market Shrinking

In July the South Bay real estate market made a valiant attempt to maintain a positive stance. It failed. Compared to June of this year, things looked better on the sales volume side, but June was already in the tank, so even the summer bump was only modest help. Looking back to July of last year gave a depressing picture. Overall sales for the south Bay were off by 1%. In itself that’s not a huge number, but considering the market started this year at well over 10%, it’s a big drop in sales.

Median price was an even greater disappointment. In January every area of the South Bay was in positive numbers. By July, every area except PV (which has been negative four out of seven months), was shrinking.

Year to date numbers have overall pointed in an equally negative direction. For the first seven months of the year the South Bay is looking at a 6% increase in homes sold. Compared to the 11% that started the year, one has to conclude the local real estate economy is trending down. The median price tells an even more down-trodden perspective with nearly all areas showing prices falling by 1% to 3% from the same period in 2024.

Beach: A One Month Jump?

The number of homes sold in the Beach cities during July jumped to 130 units, up 11% from June sales. Keep in mind, the increase follows a 4% drop in June, which followed a 2% drop in May. Month to month sales have been erratic at the Beach, while annual sales volume has been steeply up compared to 2024. July sales continued the trend with a 10% increase over the same month last year.

Median price is another matter. At the Beach the median came in at $1,844,000, down 3% from June. July was the sixth successive decline in month to month median prices for the Beach area. Annually the median has shown mixed results compared to 2024, ranging from a 32% increase in January to a 1% decline in July. This drop in July followed another 1% decline in June, continuing what looks like a year long slide in median price and in sales volume. While still higher than in 2024, July was the second lowest month this year in terms of homes sold.

Cumulative sales for 2025 were 23% higher than 2024, though still down 15% from 2019, the last normal year of business preceding the pandemic. For the same period, the median price is up 9% over last year, while coming in at 49% above the median in 2019.

Harbor: Volume and Median Down

July was not a positive month for the Harbor area. Compared to June, sales volume and median price both fell by 8%. The number of homes sold for the month fell to 307 units, while the median price dropped to $775,000. This was the steepest monthly drop seen at the Harbor in 2025.

Annual statistics weren’t any better. Looking back to July of 2024, shows sales volume declined by 3%, and the median price fell 9%, the largest annual drop this year. If the current trend continues for the balance of the year, Harbor area real estate may take a serious hit.

Year to date sales through July came in at 3%. While still positive, it’s important to note the Harbor started the year with sales volume at 10% and has been dropping all year. Similarly, the median price has gone from 1% up in January to 9% down in July, ending the first seven months falling by 1%.

A quick comparison to 2019, shows year to date sales volume still down 20% from pre-pandemic business. Median price is still 43% above the 2019 median.

Hill: Strikingly Good

The Palos Verdes Peninsula saw a strikingly good real estate market in July. Month over month sales climbed an astonishing 53%. Of course, it’s not so impressive when one notes that sales dropped 34% last month. Even at that, 75 homes were sold in July, well above the average sold in any month for 2024 and the highest number in yet this year. At $2,185,000, a 13% increase over June, the median price was likewise the highest month for 2025.

Though not as dramatic, the year over year statistics were also impressive with a 3% increase in the number of homes sold compared to July of 2024. Increasing at 8% over July of last year, made PV the only area with a positive median price this month.

Viewing 2025 versus 2024 year to date sales brought another increase of 2%, roughly on par with the rest of the South Bay. Then came the only negative on the Hill for July—a drop of 1% in the median price.

Year to date sales compared to 2019 are still down by 11% , while the median price remains up by 44% from 2019.

Inland: Long Term Slowdown

July versus June numbers showed surprising strength for the Inland area. Those cities kicked the sales volume by 15%, with the number of homes sold climbing to 131 units. While boosting the median price 1%, to $979,000, the Inland area topped the market except for the highly volatile PV peninsula.

The monthly trend reversed with the annual statistics. July 2025 compared to July 2024 showed a 8% drop in the number of sales, accompanied by a 2% drop in the median sales price.

Year to date for the first seven months came with mixed results. Sales volume showed a 1% increase. For the same period, the median price dropped 3%, ending very much like all areas except the Beach, which continued to show positive results.

Once again looking back to 2019, before the real estate market was irremediably shaken by the Covid pandemic, current sales are down 15% and median prices are up 36%. With five months left in the year and economic forecasts leaning toward stagflation, this could well be a tipping point.

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Strategies For Investing With Low Upfront Cost

Investment property is typically thought of as something owned by people with significant amounts of wealth to throw around. While it’s true that investment by definition requires an upfront cost, it doesn’t necessarily have to be a big cost. Furthermore, it’s possible for your investment to be in a property you plan to live in as well, so you aren’t forced to buy multiple homes to invest.

Long-term investments, which rely on home values appreciating over time, don’t have to be costly at all, particularly if you plan to live there anyway. Foreclosures and auction sales are generally significantly lower price than the average home in any particular area. However, you should be careful about repair costs — homeowners whose homes are on foreclosure or auction typically couldn’t afford to keep their homes, which means they often also have deferred maintenance. You could also look in up-and-coming neighborhoods that aren’t pricey yet, but might be in the future.

Alternatively, there are strategies to reduce the upfront cost of purchasing a home. These include government programs to aid first time homebuyers, enlisting the help of other investors, or utilizing seller financing. Seller financing involves making monthly payments directly to the seller of a home instead of to a lender. Because it’s rarely advantageous for the seller and benefits greatly from knowledge of legal procedures, this is not a common financing method. But if the seller agrees to it, it can help to waive large down payment requirements, and possibly even grant a better interest rate. You might also choose not to purchase an entire home, but just part of one — a Real Estate Investment Trust (REIT) involves trading a percentage of a property on the stock exchange.

One of the most common strategies is actually quite simple. Just buy a home and rent out part of it, while living in it. This is called house hacking, and is usually done with multi-unit properties such as duplexes and triplexes. But if you can’t afford a multi-unit property, you can also buy a single-family residence and rent out specific rooms. This won’t generate as much income as renting out entire units, but frequently has a lower upfront cost.

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