 
Real Estate Market Supply Demand Report
Palos Verdes Real Estate Sales Transactions
South Bay Real Estate Transactions (if you like this page, click the "Like" Button above and on my main website! - thanks!)
For February1, 2012
Each month in these market reports, we observe changes, some for the better, some not. There has been a constant over the last few months and that is this, if you are a selling a property here in the South Bay, you must understand that to get your home sold, not only do you need aggressive marketing by your agent with strong internet search engine knowledge, but perhaps MORE IMPORTANTLY you must price your home at a level that causes a buyer to perceive that they are getting compensated for the risk of buying in an environment in which there is continued pressure on real estate values. Homes that are being priced commensurate with competitive sales of 3-6 months ago are NOT selling. The homes that are, are the ones that are priced slightly below the competitive sales. THESE are the homes in which Buyers perceive themselves getting compensated for risk of buying in a very uncertain market. Yes, I know, if you’re contemplating selling, that’s not what you want to hear – but, when my clients hire me, they expect the truth … good, bad or neutral.
Yet the reality is that, based on the cold hard numbers, the market is showing PRICE WEAKNESS with SOME hints of recovery (see the South Bay Real Estate Price chart and the Absorption Rate chart here) but until the stabilization is perceived by Buyers (will take time), the only homes selling are the ones perceived as a very, very good value. Prices are testing the bottom of the channel so this is a “testing” time for the market. If you are interested in monitoring this chart, you need to sign up for my proprietary real estate charts
Note the breakdown of price support (weakness) but in the next chart, the significant improvement in supply/demand dynamics
Competitive sales in the last 3 - 6 months do not sway buyers to pay a price for a home commensurate with what those homes sold for. As I already stated above, a seller has to price their home a bit UNDER those competitive sales (after adjusting for views, condition, lot utility etc) so that a Buyer perceives themselves “compensated for the risk” of future price softness. If you're a seller and you don't understand this, you're in for a lot of days on market and a stagnant experience. The good news is that whatever "loss" you perceive as having to take in order to sell your home, you can likely make up for on the purchase of your next one! 
Market reports should be objective and based on fact not opinion; therefore, you should benefit from looking at the facts as depicted in trend charts. WHAT ARE THE NUMBERS. Here’s a statement that might date me a bit, but like Sergeant Joe Friday used to say on the old TV show, Dragnet, “Just the facts Ma’am”
If you're reading this in non-html format on another website, go to my website, http://www.homeispalosverdes.com and scroll down to the bottom of the page to the "Articles and Links" section. Look for the article entitle "Palos Verdes & South Bay Supply Demand Report"
| Time Period |
Palos Verdes Estates (Days to Sell Existing Supply) |
Listing Volume |
Pending Volume |
%Change Listing Volume (Supply) Same Time Period Last Year |
%Change Pending Volume (Demand) Same Time Period Last Year |
Change in Unsold Inventory Index from Last Period |
% Change in Unsold Inventory Index from Same Period Last Year |
| 8/1/2010-1/31/2011 |
129 |
125 |
87 |
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| 7/1/2011-12/31/2011 |
109 |
104 |
86 |
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| 8/1/2011-1/31/2012 |
107 |
94 |
79 |
-32.98% |
-9.20% |
-1.61% |
-17.18% |
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| Time Period |
Palos Verdes Peninsula (Days to Sell Existing Supply) |
Listing Volume |
Pending Volume |
%Change Listing Volume (Supply) Same Time Period Last Year |
%Change Pending Volume (Demand) Same Time Period Last Year |
Change in Unsold Inventory Index from Last Period |
% Change in Unsold Inventory Index from Same Period Last Year |
| 8/1/2010-1/31/2011 |
140 |
358 |
230 |
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|
|
| 7/1/2011-12/31/2011 |
112 |
335 |
269 |
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|
| 8/1/2011-1/31/2012 |
116 |
323 |
250 |
-10.84% |
8.70% |
3.75% |
-16.99% |
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| Time Period |
Greater South Bay Unsold Inventory (Days to Sell Existing Supply) |
Listing Volume |
Pending Volume |
%Change Listing Volume (Supply) Same Time Period Last Year |
%Change Pending Volume (Demand) Same Time Period Last Year |
Change in Unsold Inventory Index from Last Period |
% Change in Unsold Inventory Index from Same Period Last Year |
| 8/1/2010-1/31/2011 |
160 |
4815 |
2703 |
|
|
|
|
| 7/1/2011-12/31/2011 |
117 |
4402 |
3393 |
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|
| 8/1/2011-1/31/2012 |
115 |
4281 |
3353 |
-12.47% |
24.05% |
-1.59% |
-28.33% |
For the 90 day cycles above... In each of the defined markets, STUDY THE SUPPLY AND DEMAND (Listing Volume and Pending Sale Volume). How do the current numbers compare to the last reporting period? How do they compare to the same period last year … what does that tell you about short term pricing strategies sellers need to use? Feel welcome to contact me for a more detailed analysis of your own home's neighborhood. "Real estate is all LOCAL". Remember, a “negative” number in the “Change of Unsold Inventory Index” columns is a POSITIVE trend .. it means there are fewer days of unsold inventory on the market. But is the change do to higher demand or lower supply or both? And what does this mean to you as a homeowner getting ready to sell or as a buyer getting ready to bid on a home? Let’s talk about it – call me.
CAVEAT: There are folks much smarter than me that get predictions wrong frequently! So let's be honest - any real estate broker or "expert" that says they can predict what the market is going to do, should immediately be dismissed. We don't know ... PERIOD. What I can tell you is that with over 30 years of experience, I've handled my clients' best interests in all sorts of markets, from the Jimmy Carter 20% interest rate days, to the heady sellers' markets of the late 80s to the ups and downs of just the last 8 years.
YOU CAN TRUST ME to tell you the truth - good, bad or neutral. You may or may not like what you hear from me and I will guarantee you that you will find plenty of Realtors that will tell you what you want to hear (have you read my article on the "World's Second Oldest Profession"). But you WILL get the facts, the truth, undistorted so you can make decisions that ARE in YOUR best interests. You can be assured I will work hard to serve your interests before all others when you hire me.
As to market strength and weakness - real estate is no different than any other commodity. It is fueled by the ebb and flow of supply and demand. Just keep it simple. Supply and demand - new listing volume (supply), pending sale volume (demand). Focus on these numbers and that's about the best we can do to understand market trends; where it is now, and maybe, just maybe, without predicting, get a "clue" as to what might happen in the short term. Please study the table below (and again, if you are reading this in a non-HTML format, go to this site to pull up the full South Bay Real Estate transaction report http://goo.gl/dIbCM)
Please visit my website then click the link entitled "Trend charts for the South Bay & Palos Verdes". It's about half way down the home page under the category "Palos Verdes Visitors Center". You won't find this information anywhere else and you will learn the FACTS - not sales hype! I encourage you to also use my new "MLS Market Snapshot" (the green link near the top of the page) which, once you enter your address, will provide you supply/demand ratios for your property.
Keep in mind, every market has its ups and downs, every market "breathes" and you need to stay tuned and MAKE SURE TO SUBSCRIBE TO MY TREND CHART SERVICE TO MONITOR
Don’t forget to download your own real estate app for your smartphone! http://goo.gl/Xh7Eo 
IF YOU ARE SELLING A HOME? You've got to price your home at a level (use the free “What’s My House Worth” link below) that makes Buyers perceive they are being compensated for the perceived risk of buying a home that may drop somewhat in value in the near term. Remember, go to http://www.homeispalosverdes.com to gain access to these charts so that you can monitor over time.
Make sure to check in to this website again next month to monitor the changes, and see how the "news" affects the market. Regardless of what the media portrays, what are the facts? While at my site, take advantage of clicking the other links such as my Free Reports, or Free Search of homes for sale and sold, or benefit from your PERSONALIZED "Listing Informer" service or better yet, the new "MLS Market Snapshot" service whereby you can become informed of all the listings & SALES around your own property!
I have a new feature on my website for you to view the "distressed" properties (Palos Verdes Foreclosures & California Foreclosures); properties which have notices of default or notices of trustee sale or actual bank owned homes. Unlike other sites that "tease" you with descriptions; I provide you the actual addresses and picture. If any these properties interest you, call or email me and let's discuss strategy for placing an offer. You will be able to play a brief video tutorial on how to benefit from this section of my website
Again, and not to belabor the point important as it is, another high tech feature just added is my "MLS Market Snapshot" personal service. Imagine having an interactive mapping program showing your home and then the sales and listings around it; a program that will show you the changes in prices over time, the differential between list and sale price and more including the ability to see details and pictures of the competitive listings and sale data and changes in the supply/demand ratios! It's FANTASTIC! Look for the MLS Market Snapshot link near the top of the page on my site.
As part of my customer service, you now have THREE WAYS to "SEARCH LIKE AN AGENT" using my website. Go to http://www.homeispalosverdes.com and just under the "MLS Market Snapshot" you will see the three ways. Use the one best for your needs. The graphic on the right hand side at that paragraph is the method that will provide you the most real estate information on homes for sale without getting to a registration page.
A brand new feature added as part of my customer service are Altos Research Charts. You may view these for free (I pay a hefty subscription fee for these charts and I’m happy to share with you at no cost and of course with the home that will demonstrate by commitment to serving your interests). Go to to my site and then select the link on the left hand side of the page entitled “Free Market Charts”
Also, one of the latest innovations in marketing I'm bringing to the benefit of my selling clients is the Mobile ID service AND specialized SEO Marketing Tactics each of which create more buyer interest in the property you're selling so that it sells not only faster but for a higher net price to you. If you are reading this and the links are active, just go to my website www.homeispalosverdes.com and scroll down to the bottom under Articles and Links and click the Supply Demand Report you see in the list.
        
For more information on homes for sale in Palos Verdes, Palos Verdes real estate, palos verdes homes for sale, palos verdes foreclosures, palos verdes real estate market information as well as quality information on homes for sale in Rancho Palos Verdes, Palos Verdes Estates homes for sale, Manhattan Beach real estate, Hermosa Beach real estate, Redondo Beach real estate, Torrance real estate, Palos Verdes real estate trends, and real estate trends throughout the Beach Cities, Palos Verdes Estates and the South Bay, visit www.homeispalosverdes.com
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