You’re not alone if you are curious about the effect the Coronavirus Pandemic is having on the local real estate market. While history will record the complete story, early opinions project the impact on housing will be less severe than the effect on the stock market. Our homes have become our shelters from the storm raging throughout the world. It’s where we feel safe, and that emotional value is impossible to quantify with a dollar amount. Home is where many of us now work, school our children, and care for those we love. The value of “home” encompasses much more than a structure, and the land beneath it. This intangible value of real estate is impossible to measure, but it plays a vital role when assessing value.
Supply and demand are crucial to real estate values. Local Palos Verdes inventory is low. There are only 135 single family homes for sale on the entire Palos Verdes Peninsula. One year ago, in May 2019, there were 230 single family PV residences for sale. However, there are 56 homes in escrow with accepted offers as of May 1, 2020. Demand continues to prop up values with the help of low inventory.
May 2020 stats for Rolling Hills Estates show 23 single-family residences for sale. Nine houses are in escrow with accepted offers, and 29 RHE homes have sold thus far in 2020.
The Coronavirus will undoubtedly leave its mark on the local real estate market. I’ve noticed a few new listings hitting the market at a lower than expected price. This price reduction may be the seller’s concession to the added risk of buying into a market with new and yet unmeasured risk factors. Let’s not forget our coastal location, stellar school systems, both private and public, are still firmly in place. Real estate professionals have never dealt with a pandemic of this size and nature, and I have no idea how the duration and outcome will impact future values, but one thing I do know is our homes are much more than a shelter or an investment. And that’s a comforting and rewarding thing, indeed.
Selling Palos Verdes Properties Since 1992
Norma Toering, Broker/Owner
Charlemagne Int’l Properties
Questions or requests? Please submit the contact form. Thank you!