As we move into the final months of 2025, the South Bay real estate market continues to evolve — balancing between a steady demand for our beautiful coastal communities and the challenges of higher interest rates and limited inventory. After more than three decades representing buyers and sellers in Palos Verdes and the surrounding South Bay, I can confidently say that this remains one of the most resilient and desirable markets in Southern California.

A Market Still Favoring Sellers — But Shifting Gradually

While inventory has increased slightly compared to 2024, it remains well below historic averages. This means that well-priced homes are still selling quickly — often with multiple offers — especially in neighborhoods like Palos Verdes Estates, Rolling Hills Estates, and Redondo Beach.

That said, buyers are becoming more selective. Properties that require updates or are priced above market value tend to sit longer, giving motivated buyers an opportunity to negotiate. On average, homes are now spending around 30–35 days on the market, up just slightly from last year.

In short: sellers still hold an advantage, but the market is moving toward a more balanced environment.

Pricing and Value Trends

The median price for South Bay homes is now around $1.8–$1.9 million, reflecting moderate annual growth of about 5–7%. Coastal and view properties continue to command premiums, while more modest homes — especially those inland or needing renovation — are seeing more measured appreciation.

In Palos Verdes, demand remains especially strong among families and relocators from Los Angeles who are drawn to the area’s top-rated schools, ocean views, and sense of community. Luxury buyers continue to seek large lots, privacy, and architectural homes — particularly mid-century modern and newly remodeled estates.

The bottom line: quality and presentation matter more than ever. Homes that are staged, updated, and priced strategically are achieving the strongest results.

Buyer Behavior and Market Psychology

Interest rates have created a new kind of buyer mindset. Many are waiting for stability, but those who are well-qualified and ready to purchase are seizing opportunities — knowing that the long-term value of South Bay real estate has historically outperformed broader markets.

Buyers are prioritizing lifestyle-driven features:

• Indoor-outdoor flow

• Ocean views

• Flexible spaces for home offices or gyms

• Energy efficiency and smart-home upgrades

These features are becoming key selling points across all price ranges.

Looking Ahead: What to Expect This Fall and Winter

As we enter the last quarter of the year, I expect a slight “second spring” effect — a burst of new listings and renewed buyer activity before the holidays. Traditionally, September and October bring motivated sellers and serious buyers who want to close before year-end.

If mortgage rates ease in early 2026, we could see a fresh surge of pent-up demand, especially in entry-level and mid-tier price segments.

My advice:

• Sellers: If you’ve been waiting for the “right time,” this may be your moment. Proper pricing and presentation are crucial — the market still rewards well-prepared listings.

• Buyers: Stay alert and pre-approved. Inventory is still limited, and the best homes move fast, often within the first two weeks.

The Long-Term View

Even with the short-term fluctuations, the South Bay’s fundamentals remain strong: limited land, unmatched lifestyle, and enduring appeal. Whether it’s a panoramic ocean view in Palos Verdes Estates or a beach-close home in Redondo, this region continues to attract buyers from across California and beyond.

As I often tell clients, real estate here isn’t just a financial investment — it’s a lifestyle choice rooted in beauty, community, and quality of life.

If you’d like to discuss the current market or get a personalized update on your home’s value, I’d be happy to help.

Direct message me or visit suzannedyer.com for more information.
CA DRE License #01054310