There are 62 Palos Verdes luxury homes listed for sale, and only six luxury properties are in escrow with accepted offers. With those numbers, it is easy to see high-end inventory, those residences priced at or above $3,000,000, far outstrips current demand for luxury houses on the Palos Verdes Peninsula. Year-to-date 43 Palos Verdes luxury homes have closed escrow.
I scrolled through all 62 luxury properties to determine why the inventory absorption has slowed in the luxury real estate market in Palos Verdes. This individual assessment revealed most of the houses are remodeled or newer construction, with only a few falling into the fixer category. However, luxury home prices have increased substantially during the extended seller’s market. In my opinion, price resistance is the critical factor in the stagnant luxury market. Also, interest rates are creeping up, but many high-end buyers make all-cash purchases. Perhaps savvy buyers are waiting for prices to level off or even drop a bit before they return to shopping for a Palos Verdes property.
Don’t get me wrong, prime luxury properties are still selling, but with more than sixty properties to choose from, buyers can afford to be both picky and tough negotiators. If you are selling a luxury home, make sure it is ready for its debut in this competitive market.
More Palos Verdes Real Estate Snapshots for October 2018:
Selling Palos Verdes Properties Since 1992