While prices continue to edge up nationally, first-time buyers did not sit out late summer. In August 2025, the typical U.S. starter home sold for a record $260,508, up 2.2 percent year over year. Sales of entry-tier homes rose 3.8 percent, even as mid- and high-priced segments slipped 0.6 percent and 1.2 percent. Pending starter-home sales were up 3.1 percent. For this analysis, starter homes are those priced roughly in the 5th to 35th percentile of local sales, mid-tier is the 35th to 65th, and high-tier is the 65th to 95th.

Markets leading starter-home activity included Providence, Milwaukee, and Riverside, while sales cooled in San Antonio, Miami, and San Jose.

How This Translates to the Palos Verdes Peninsula

Palos Verdes is not a traditional starter-home market by national price standards. The same dynamics are here though, with tight inventory, selective price reductions, and motivated entry-tier buyers within each city.

• Palos Verdes Estates (PVE): Approximate August 2025 median sale price around $3.0M, a slight year-over-year dip. Days on market improved to roughly 30 days, with monthly closings holding steady.

• Rancho Palos Verdes (RPV): Approximate median near $1.685M, softer year over year, with faster market times and rising closed sales. This is the most active PV city by transaction count and often the best window for an “entry tier” within PV.

• Rolling Hills Estates (RHE): Approximate median near $1.8M, roughly flat year over year. Days on market have lengthened, which can create negotiation opportunities for well-priced smaller homes and townhomes.

Across the Peninsula, months of inventory recently tightened from roughly the low fours to the mid twos, a shift that favors sellers while still rewarding accurate pricing. Average sale price across PV hovered near the mid-$2M range late summer, with price-per-square-foot easing slightly into September.

What buyers should know

• Speed matters: Sub-$2M listings in RPV and select RHE pockets draw attention when turnkey and well-priced.

• Leverage time on market: In RHE, longer days on market can open doors for value-focused offers, especially on lightly dated homes.

• Neighborhood fit beats headlines: In PVE, even a small price dip comes with quicker absorption, so pre-approval and fast scheduling are essential.

What sellers should know

• Pricing precision wins: With buyers zeroing in on attainable tiers, accurate pricing on day one helps capture early momentum.

• Presentation pays: Move-in-ready homes that feel entry-tier for their city outperform since rate-sensitive buyers prefer fewer immediate expenses.

Bottom Line for Palos Verdes

Even in a high-end coastal market, the entry tier within each PV city is driving demand right now. RPV offers the deepest pool of starter-relative options, RHE offers timing leverage, and PVE remains competitive when homes are priced correctly. If you are considering a move, whether buying your first PV home or right-sizing, aligning strategy to your city’s micro-trends will make the difference.

Thinking about buying or selling in Palos Verdes? I live and work here, I represent top Peninsula sales, and I can tailor a plan by neighborhood and price tier. Let’s schedule a strategy session.