As we close the door on 2025, the Palos Verdes real estate market once again proves that it cannot be understood through headlines or broad regional statistics alone. While national housing conversations tend to lump Southern California into a single narrative, those of us who live, work, and transact on the Palos Verdes Peninsula know better. This is a market defined by nuance, neighborhood distinctions, lifestyle preferences, and highly informed buyers and sellers.

December is traditionally a quieter month, but that does not mean it lacks clarity. In fact, year end data often provides some of the most honest signals about market health. Buyers who remain active in December are serious. Sellers who list during the holidays are intentional. And pricing behavior during this period often sets the tone for the first quarter ahead.

The December 2025 data offers a clear picture of how each Palos Verdes city is performing, where momentum is building, and where patience and strategy matter most. What stands out immediately is that there is no single Palos Verdes market. Each city, and often each neighborhood within that city, is behaving differently based on inventory levels, price points, buyer demographics, and long term value drivers.

This report breaks down the cumulative Palos Verdes market and then looks closely at Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills Estates, and Rolling Hills individually. The goal is not just to share statistics, but to interpret what they mean for homeowners, buyers, and those considering a move in 2026.

The Big Picture: Palos Verdes as a Whole

Looking at the Palos Verdes Peninsula collectively, December closed with 128 active listings and 43 homes sold. Average list prices sat just over $4.18 million, while average sold prices landed closer to $2.54 million. Days on market averaged 102 days, and months of inventory came in at approximately 2.9 months.

At first glance, those numbers may seem contradictory. High average list prices paired with significantly lower average sold prices can raise questions. The explanation lies in the diversity of housing stock across the peninsula. The Palos Verdes market includes everything from entry level condominiums and modest single family homes to ultra luxury estates, equestrian properties, and gated communities with acreage. A handful of high priced listings can dramatically lift the average list price, even if the bulk of transactions occur at lower price points.

What matters more than averages is how inventory aligns with buyer demand. With just under three months of inventory, the overall Palos Verdes market remains relatively balanced. It is no longer the aggressive seller driven environment of the immediate post pandemic years, but it is also far from a buyer controlled market. Homes that are priced correctly, presented well, and located in desirable neighborhoods continue to sell. Homes that are aspirationally priced or poorly positioned linger.

Another key takeaway from the cumulative data is that buyers remain patient. With average days on market exceeding three months, buyers are taking their time, comparing options, and negotiating thoughtfully. This reinforces the importance of strategy on both sides of the transaction.

Palos Verdes Estates: Scarcity Continues to Drive Value

Palos Verdes Estates remains one of the most supply constrained markets on the peninsula. December closed with just 19 active listings and 8 homes sold. Average list prices approached $5.85 million, while average sold prices landed at approximately $3.22 million. Days on market averaged 57 days, and months of inventory sat at 2.4 months.

These numbers tell a story of ongoing demand colliding with limited supply. Palos Verdes Estates benefits from several structural advantages that continue to support long term value. Its coastal proximity, walkable neighborhoods, strong school system, architectural character, and community cohesion all contribute to buyer loyalty and low turnover.

Homes in Palos Verdes Estates tend to attract buyers who already know the area well. Many are move up buyers from within the peninsula or returning buyers who grew up locally. This familiarity leads to quicker decision making when the right property becomes available. That is reflected in the relatively low days on market compared to other cities.

However, the gap between average list price and average sold price highlights an important reality. Not every listing aligns with buyer expectations. Renovation costs, especially for older homes, remain a major consideration. Buyers are willing to pay premiums for turnkey properties, while homes requiring significant updates must be priced accordingly.

For sellers, this means that preparation and pricing are critical. The market will reward homes that are thoughtfully presented and realistically positioned. For buyers, it means that opportunities still exist, particularly among properties that may not show perfectly but offer strong long term potential.

Rancho Palos Verdes: The Most Active and Diverse Market

Rancho Palos Verdes continues to be the most active segment of the peninsula. In December, the city recorded 78 active listings and 26 homes sold. Average list prices were approximately $2.83 million, with average sold prices around $2.11 million. Days on market averaged 50 days, and months of inventory came in at 3.0 months.

Rancho Palos Verdes offers the broadest range of housing options, price points, and neighborhood styles. From ocean view homes to gated communities, hillside properties, and family friendly tracts, the city appeals to a wide buyer demographic. This diversity contributes to consistent transaction volume, even in slower months.

The relatively short days on market suggest that well priced homes are finding buyers quickly. Buyers in Rancho Palos Verdes tend to be value conscious but decisive. They are often balancing lifestyle considerations with long term affordability, school quality, and commute patterns.

At the same time, three months of inventory indicates a more balanced environment. Buyers have choices, and sellers must compete. Overpricing remains the most common reason listings sit longer than expected. Homes that align with recent comparable sales and acknowledge condition differences continue to perform well.

Rancho Palos Verdes is often the entry point for buyers looking to establish themselves on the peninsula. As such, it plays a critical role in overall market health. Its stability in December reinforces the idea that demand remains intact, even as buyers become more selective.

Rolling Hills Estates: A Market That Rewards Precision

Rolling Hills Estates closed December with 25 active listings and 6 homes sold. Average list prices were approximately $1.64 million, while average sold prices came in at $1.62 million. Days on market averaged 42 days, and months of inventory increased to 4.2 months.

This is one of the most interesting data sets on the peninsula. The narrow gap between average list and sold prices suggests that pricing is generally realistic. Sellers appear to understand market conditions and price accordingly. Buyers, in turn, are willing to move forward when value aligns with expectations.

However, the higher months of inventory indicate a slower pace overall. Rolling Hills Estates tends to attract buyers who are more analytical. They are often comparing the city to neighboring areas, weighing tradeoffs between price, lot size, amenities, and long term appreciation.

Homes that are updated, well maintained, and priced correctly are selling. Homes that require significant work or are positioned optimistically are facing longer marketing times. This creates opportunities for buyers who are patient and prepared, and it underscores the importance of tailored marketing strategies for sellers.

Rolling Hills Estates is neither a fast moving nor stagnant market. It is a thoughtful market that rewards precision, preparation, and local expertise.

Rolling Hills: Ultra Low Inventory Meets Ultra Selective Buyers

Rolling Hills remains in a category of its own. December closed with just 6 active listings and 3 homes sold. Average list prices exceeded $6.42 million, while average sold prices were approximately $3.23 million. Days on market averaged a striking 257 days, and months of inventory stood at 2.0 months.

At first glance, the long days on market may appear concerning. In reality, they reflect the unique nature of this gated, equestrian focused community. Buyers in Rolling Hills are highly discretionary. They are often purchasing for privacy, land, and lifestyle rather than necessity. As a result, transactions take time.

The limited number of sales means that averages can be skewed significantly by individual properties. One or two high end listings can dramatically impact list price averages, while sold prices may reflect more opportunistic purchases.

Despite the long marketing times, inventory remains extremely tight. This indicates that sellers are not under pressure. Homes tend to trade when the right buyer emerges, rather than through aggressive price reductions. Rolling Hills is less influenced by broader market fluctuations and more driven by individual circumstances.

For sellers, patience is essential. For buyers, preparation and long term perspective are key. Rolling Hills continues to hold its position as one of the most exclusive residential enclaves in Southern California.

What December 2025 Tells Us About 2026

Taken together, the December 2025 data points to a market that is stable, segmented, and increasingly strategy driven. Gone are the days of blanket bidding wars and overnight decisions across the board. Instead, we are seeing a return to fundamentals.

Pricing matters. Condition matters. Location matters. Buyers are informed and intentional. Sellers who align with reality are rewarded, while those who resist market feedback face longer timelines.

Interest rates, economic headlines, and national narratives will continue to influence sentiment, but on the Palos Verdes Peninsula, local factors carry more weight. School districts, ocean views, privacy, lot size, and neighborhood identity all play a role in value.

For homeowners, this is a reminder that equity remains strong, but timing and positioning matter more than ever. For buyers, opportunities exist, particularly in segments where patience and flexibility can create leverage.

As we move into 2026, the market is likely to remain nuanced rather than volatile. The key to success will be understanding not just what the numbers say, but what they mean within each city and neighborhood.

The Importance of Local Interpretation

Statistics are only useful when paired with experience. Two homes with identical square footage can perform very differently depending on street, orientation, updates, and micro location. Automated valuations and broad market summaries cannot account for these details.

This is why local expertise remains critical. Understanding buyer behavior, recent negotiations, off market activity, and neighborhood specific trends allows for informed decision making. Whether you are considering selling, buying, or simply tracking your investment, context matters.

The Palos Verdes market continues to reward those who take a thoughtful, strategic approach. December’s numbers reinforce that this is a market built on long term value rather than short term speculation.

If you would like a deeper analysis of how these trends apply to your specific property or neighborhood, a tailored conversation can provide clarity that no generic report can offer.

Suzanne Dyer
Wall Street Journal/REALTRENDS #59 in California, #204 in the Nation
Luxury Real Estate Specialist
Los Angeles Business Journal Top 100 Realtors in Los Angeles
Top Woman Listing Agent in the South Bay & Palos Verdes 2023
Over 1 Billion Dollars in Career Sales
Top Realtor in Rolling Hills, Rolling Hills Estate, Rancho Palos Verdes, Palos Verdes Estates, and the South Bay
Strand Hill | Forbes Global Properties
CA BRE license #01054310
www.suzannedyer.com
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