Palos Verdes Estates Luxury Real Estate Report
The first quarter still has another week or so left, however we can still analyze the first quarter of the year compared with the same time in 2013 to see where our local Palos Verdes Estates luxury market is heading.
The 2013 first quarter statistics for PVE in sales over $2,500,000.
7 closed sales with an average sale price of $2,858,000, average SF 5095 SF on average lot size of 22,000SF. Average days on market was 261 days. 5 sales were purchased using a conventional loan and 2 were cash purchases.
The 2014 first quarter statistics for PVE in sales over $2,500,000.
5 closed sales at an average sale price of $3,660,000, average SF 5313SF on average lot size of 19,000. Average days on market was 200 days. 2 were purchased using a conventional loan and 3 were cash purchases.
Over all less demand for properties in PVE yet the average sale price has increased. Lot size is less important and properties are selling faster, although still 6 months or more on the market is the norm.
The biggest change to track is the percentage of cash sales has increased from 28.5% last year to a whopping 60% of all sales this year. This indicates a higher number of sales to foreign buyers.
The first quarter of 2014 we’ve seen some instability in foreign markets and American Real Estate is becoming a soft landing for foreign buyers.
What can we expect in the second quarter of 2014 in Palos Verdes Estates? Longer days on market as more listings hit the market and buyers have more choice. More competition for the lower priced luxury listings and square footage and other amenities with perceived value (views, updates, garage space etc.) will become even more important as buyers view a home purchase more as an investment and less as a home.