By Suzanne Dyer | Strand Hill | Forbes Global Properties
A comprehensive December 2025 analysis

The Palos Verdes Peninsula continues to remain one of the most resilient and desirable coastal luxury markets in Southern California. With its dramatic cliffs, world-class schools, ocean panoramas, deep-rooted community culture, and extraordinarily limited land supply, real estate on “The Hill” operates unlike almost any other micro-market in Los Angeles County.

As we move into the final month of 2025, the newest market data for 90274 (Palos Verdes Estates) and 90275 (Rancho Palos Verdes) paints a clear picture: demand remains steady, inventory is contracting, and both cities hold a slight seller’s advantage as buyers remain motivated by lifestyle over interest rates. Yet each zip code tells its own story shaped by price point, property type, and long-term trends.

Below is a full breakdown and narrative of current conditions, what the numbers actually mean, where opportunities exist for both buyers and sellers, and how my 25+ years of experience in Palos Verdes real estate helps you navigate this ever-evolving market.

1. Market Overview: A Peninsula Defined by Low Supply and Steady Demand

While broader Southern California markets continue to experience fluctuations driven by interest rates and inconsistent inventory levels, Palos Verdes stands out for a simple reason: very few homeowners choose to leave. Our community is built on generational ownership, exceptional schools, coastal access, and private-feeling neighborhoods — meaning that even in slower national cycles, supply rarely rises enough to shift momentum toward buyers.

The December 1, 2025 market reports confirm this once again:

• Palos Verdes Estates 90274

  • Median List Price: $3,950,000

  • Price Per Sq Ft: $1,022

  • Market Action Index (MAI): 39 — Slight Seller’s Advantage

  • Inventory: 29 homes

• Rancho Palos Verdes 90275

  • Median List Price: $2,099,000 

  • Price Per Sq Ft: $848

  • Market Action Index (MAI): 37 — Slight Seller’s Advantage

  • Inventory: 77 homes

Although inventory in RPV is naturally higher due to its larger geographic footprint and broader variety of price points, both cities continue to favor sellers based on the balance of inventory and rate of absorption.

The key takeaway:
Demand remains stronger than supply across both zip codes a long-standing hallmark of the Palos Verdes luxury market.

2. Palos Verdes Estates (90274): A Luxury Market Holding High Value

A. Pricing Stability and a Plateau Near the High End

In 90274, the median list price has held stable at $3.95 million, reflecting a multi-month plateau that is common in upper-tier luxury enclaves. The price per square foot at $1,022 reinforces PVE’s position as the highest-value micro-market on the Peninsula.

The pricing trend graphs in your 90274 report show that:

• Prices have remained stable for several months

• All quartiles reflect a price plateau

• No dramatic shifts are occurring across segments

This stability is actually a sign of market health. In luxury neighborhoods like PVE, pricing rarely spikes sharply; instead, values stay elevated and move gradually. When combined with decreasing inventory, now 29 homes, the conditions are forming for potential upward pressure as we enter 2026.

B. Market Action Index Rising — A Subtle but Important Signal

The MAI has risen from 36 last month to 39. In this index, anything above 30 signals a seller’s market — and PVE is strengthening.

An increasing MAI paired with decreasing inventory indicates:

• Improving pricing power for sellers

• Shorter market times for correctly priced listings

• Increasing urgency among buyers

C. Days on Market in PVE: Longer Timelines Are Normal in Luxury

The report shows an average DOM of 170 days and a median DOM of 161 days.

This is typical for luxury properties due to:

• Small buyer pools

• Unique architecture

• Highly customized homes

• View and location sensitivity

• High expectations for finish level and presentation

Top quartile listings show DOM over 200 days, which is completely normal for estate-level properties.

3. Rancho Palos Verdes (90275): A Diverse and Highly Active Market

RPV offers a broader range of price points, architectural styles, and property types, yet it too maintains a slight seller’s advantage and displays remarkable stability.

A. Pricing: A Stable Plateau With Potential for Future Lift

RPV’s median list price sits at $2,099,000, with little movement over the past several weeks. Price per square foot remains at $848, reflecting:

• Varied property conditions

• Larger lots in some neighborhoods

• Greater distribution between entry-level and luxury homes

• More original-condition inventory

The pricing trend lines show a consistent plateau — steady, predictable, and healthy.

B. Inventory: Declining, Setting Up a Stronger 2026

Inventory has dropped to 77 homes, a key signal.

Declining inventory paired with steady demand often leads to:

• Faster absorption in spring

• Moderate price growth

• More competitive offers on remodeled homes

• Increased urgency among buyers

RPV historically sees higher transaction volume than PVE, so shrinking inventory can quickly create upward pricing momentum.

C. Market Action Index: Steady at 37

The MAI in RPV remains at 37, nearly identical to last month, signaling consistency.

The RPV market narrative notes:

The market remains in a relative stasis… prices have not been moving higher for several weeks.
If the MAI increases persistently, prices are likely to resume an upward climb.

Consistency in MAI is a good sign, it suggests a balanced, predictable, and resilient market.

D. Days on Market: Faster Than PVE

RPV properties show:

• Average DOM: 153 days

• Median DOM: 98 days

Homes generally move faster in RPV than in PVE due to:

• Broader buyer pool

• Wider range of price points

• Higher concentration of remodeled homes

• Neighborhoods with faster turnover

4. Comparing the Two Zip Codes: Key Insights for Sellers

Although 90274 and 90275 sit side by side and share the same school district and coastal setting, their real estate dynamics differ in meaningful ways.

A. Pricing and Value Differentials

PVE maintains the highest price points on the Peninsula for reasons that include:

• Highly curated neighborhoods

• The Palos Verdes Art Jury architectural oversight

• Estate-sized lots

• Prime proximity to bluffs and beaches

• A quieter, more private environment

This is reflected in the values:

• $1,022/sq ft in 90274

• $848/sq ft in 90275

The value differential remains consistent year after year.

B. Buyer Pools Differ Between the Two Areas

90274 Buyers Often Seek:

• Architectural homes

• Larger, custom lots

• Privacy

• Walkability to the bluffs

• Highly exclusive neighborhoods

90275 Buyers Often Seek:

• Views (city, ocean, Catalina)

• Turnkey floorplans

• Neighborhoods closer to shopping and schools

• Homes with value upside

Both cities attract families relocating from the South Bay, Westside, and abroad  but the lifestyle preferences differ subtly.

C. Absorption Rates Reflect Geography

PVE has slower turnover because it is smaller, more exclusive, and has a smaller pool of sellers. RPV has faster turnover due to:

• Broader housing stock

• Larger number of neighborhoods

• More mid-price homes

This is visible in the DOM data for each zip code.

5. Segment-by-Segment Breakdown: Trends Across Price Tiers

The quartile data for each zip code provides deeper insight.

A. Top Quartile Listings

PVE

• Median: $9,095,000

• DOM: 206 days

RPV

• Median: $7,143,500

• DOM: 175 days

Top-tier homes take longer to sell, but they set the tone for luxury values.

B. Upper Middle Quartile

PVE

• Median: $4,695,000

• DOM: 238 days

RPV

• Median: $2,600,000

• DOM: 91 days

RPV’s significantly faster DOM at this tier reflects a larger buyer pool and stronger appetite for upgraded family homes.

C. Lower Middle Quartile

PVE

• Median: $3,400,000

• DOM: 105 days

RPV

• Median: $1,950,000

• DOM: 98 days

This tier is highly competitive in both markets, especially for families targeting top-rated schools.

D. Entry-Level Quartile

PVE

• Median: $2,425,000

• DOM: 21 days

Entry-level homes in PVE are moving quickly often because they are the only way to enter the 90274 market at this price level.

RPV

• Median: $1,695,000

• DOM: 133 days

This tier includes many original-condition homes, which lengthens DOM.

6. Inventory Trends: Both Markets Are Tightening

Both cities show declining inventory a trend visible in each report’s inventory charts.

• PVE inventory recently dropped below 30 homes

• RPV fell below 80 homes

On the Palos Verdes Peninsula, falling inventory typically foreshadows:

• Strong spring markets

• Increased competition

• Faster market absorption

• Price resilience even in national fluctuations

This will likely be the case in early 2026.

7. My Local Perspective: What I’m Personally Seeing in the Market

After more than 25 years of representing both buyers and sellers in Palos Verdes, with over $1 billion in closed sales, I can confidently say the data mirrors what I am experiencing on the ground.

• Serious buyers are reentering the market.

Especially families prioritizing schools and lifestyle.

• Turnkey homes are receiving attention immediately.

Updated kitchens, open floorplans, and view homes are highly competitive.

• Original-condition homes can still sell well with correct pricing.

• Entry-level homes in PVE are one of the strongest-performing segments.

• Luxury homes require patience and the right marketing strategy.

• Spring 2026 is shaping up to be a high-activity season.

8. What Sellers Should Do Right Now

If you’re considering selling in late winter, spring, or summer 2026, current conditions offer a clear roadmap.

1. Price Correctly

Overpricing leads to extended DOM and reduced leverage.

2. Prepare Professionally

Staging, landscaping, and repairs elevate perceived value.

3. Leverage Timing

The strongest selling season on the Peninsula begins around March.

4. Market Globally

Forbes Global Properties continues to give your listings unmatched international exposure.

5. Use a Local Expert

Understanding micro-neighborhood nuances is crucial to maximizing value.

9. What Buyers Should Know

Even in a slight seller’s market, buyers can succeed with the right approach:

• Target homes on the market 60+ days

• Look for original-condition opportunities

• Be open to both 90274 and 90275

• Understand that waiting for steep price drops is unrealistic in Palos Verdes

• Partner with a local expert who knows off-market opportunities

10. Final Takeaway: Palos Verdes Remains a Standout Market Going Into 2026

After reviewing the latest data for 90274 and 90275, one conclusion is clear:

The Palos Verdes Peninsula remains one of the strongest, most stable, and most desirable luxury coastal markets in all of Southern California.

With low inventory, consistent demand, and strengthening market indicators, both Palos Verdes Estates and Rancho Palos Verdes are positioned for a healthy and competitive 2026.

Whether you’re considering selling, buying, or simply tracking the market, it remains my honor to guide families through one of California’s best coastal communities.