Signs point to a “second spring market” as easing mortgage rates rekindle buyer interest.

The summer housing market across Palos Verdes and the South Bay was steady but subdued. Many buyers hesitated, waiting for better opportunities while sellers cautiously tested pricing. Now, fresh data and local activity suggest the fall season could breathe new life into our coastal market.

Rates Slide, Buyers Stir

Over the past few weeks, mortgage rates have slipped back below 6.5%, down from nearly 7% earlier this year. That decline has already sparked movement—loan applications for home purchases are up nearly 20% compared to a year ago. Locally, we’re seeing renewed inquiries from buyers who had been sitting on the sidelines, especially in higher-end price points where a small rate shift can make a big difference.

More Options on the Market

Inventory in Palos Verdes and South Bay beach cities has ticked up, with more new listings hitting MLS as we head into fall. Homes are also sitting slightly longer—giving buyers a chance to evaluate rather than rush. In August, the median time on market nationally was 31 days, and locally we’re seeing similar trends, a noticeable change from the frantic pace of the last few years.

For first-time buyers in Torrance, Redondo, and Lomita, a slower market with more choices can be a welcome shift. While affordability remains a challenge, particularly west of PCH and in view properties across Palos Verdes Estates and Rolling Hills, this fall could open doors that were previously shut.

Why Fall Could Be the Sweet Spot

Historically, the South Bay often sees a “second spring” market in September and October. Families who delayed moves during summer vacations and school transitions re-enter, and sellers who want to close before year-end bring fresh inventory. Realtor.com® has even pinpointed mid-October (the week of Oct. 12–18) as the prime week for buyers nationwide—a timeline that often mirrors activity here on the Peninsula and beach cities.

Buyers also appear to be regaining negotiating leverage. Requests for repairs and inspection credits, largely unheard of in 2021–2022, are once again part of the conversation. That shift gives motivated buyers a better chance to secure a property without waiving every contingency.

Prices Hold Strong

Despite more inventory, home values remain resilient. In Palos Verdes Estates, Rolling Hills, and Manhattan Beach Strand, trophy properties continue to command premium pricing. The median national existing-home price in August was $422,600—locally, our numbers are significantly higher, with Palos Verdes medians well into the $2M–$3M range and coastal South Bay communities even higher.

What’s driving this? Equity. Many homeowners in our area have enjoyed double-digit appreciation over the past five years. That wealth not only keeps sellers patient, it also fuels the cash-buyer segment—still representing a large share of transactions in Palos Verdes and Hermosa/Manhattan Beach.

What This Means for You

For sellers, fall offers a chance to capture renewed demand as buyers re-engage before year-end. Strategic pricing, professional presentation, and broad marketing exposure remain key to standing out.

For buyers, patience may pay off this season. More listings, slightly longer days on market, and lower borrowing costs mean increased opportunity, whether you’re looking for an entry-level condo in South Redondo or an oceanfront estate in Palos Verdes Estates.

Bottom line: the South Bay and Palos Verdes markets are shifting into a more balanced dynamic. If you’ve been waiting for the right moment, this fall could be your best window in years.