Demand for homes continues to ramp in Palos Verdes as inventory remains scarce. PV Brokers is forecasting strong first quarter home sales as pent up demand meets new supply. We anticipate strong home sales toward the end of the first quarter with follow-through into late spring 2013. Further, we expect home sales volume to remain flat through the end of 2012.
Palos Verdes real estate statistics for October 2012 again indicate a solid market. 55 Palos Verdes houses sold in October which is a slight decrease from the 58 homes that sold in September. Pending sales are way up in October with 72 Palos Verdes single family homes pending compared to 56 in September. The number of active Palos Verdes homes for sale in October decreased to 152 homes compared to 171 homes in September. Our inventory of homes for sale is the lowest in recent memory. As you can see by the chart above, in October we had 37% less active Palos Verdes homes for sale compared to October 2011 yet the number of sales through the 3rd quarter of 2012 increased to 470 homes compared to 428 homes sold through the 3rd quarter of 2011.
Price per square foot for Palos Verdes houses that sold/closed escrow in October increased to $501 from $466 in September. Average sales price for Palos Verdes homes sold in October decreased slightly to $1,322,000 from $1,332,000 in September. Average days on market in October fell to 83 days from 100 days in September for properties sold that month. Months of inventory (months it would take to sell existing inventory at the current rate of sale) decreased slightly to 2.8 months for October compared to 2.9 months in September. A “normal” market is considered 6 months of inventory and Palos Verdes real estate “months of inventory” is substantially less than that indicating the strength of our local market .
Presently, there are 149 single family Palos Verdes homes for sale. 111 Palos Verdes houses are in escrow (54 homes have pending sales and 57 homes are accepting backup offers). Additionally, 6 homes have sold/closed escrow in the first 8 days of October.