Palos Verdes Estates Market Analysis

Comprehensive Market Intelligence for Smart Real Estate Decisions

May 2025 Report

Executive Summary

The Palos Verdes Estates market continues to demonstrate resilience with moderate buyer concessions. Based on 34+ years of transaction data, current market conditions show average discounts from list price of 1.68% over the past 5 years. However, 2024 data indicates increasing buyer leverage with average discounts rising to 4.73%, suggesting a shift toward a more balanced market.


Key Finding: The market experienced unprecedented seller advantage in 2021 with properties selling at 0.69% ABOVE list price, but has since normalized with buyers gaining more negotiating power in 2023-2024.

1.68%
Average Discount
(5-Year Average)
4.73%
2024 Average
Discount
4,443
Total Sales
Analyzed
104
2024 Total
Sales

Historical Discount Trends (2016-2025)

2.55%
2016
1.54%
2017
2.06%
2018
3.10%
2019
1.97%
2020
-0.69%
2021
0.12%
2022
3.67%
2023
4.73%
2024
3.10%
2025*
Note: Orange bars represent 2025 projections based on current market trends

Market Data Analysis

Year Average Discount Total Sales Market Condition
2021 -0.69% 170 Extreme Seller's Market
2022 0.12% 122 Balanced Market
2023 3.67% 110 Buyer Advantage
2024 4.73% 104 Strong Buyer Market
2025* 3.10% 40 (Q1) Projected Moderation

12-Month Market Projection

Historical Average
2025-2026 Projection
2.8%
3.4%
Jun 2025
2.5%
3.1%
Jul 2025
2.2%
2.9%
Aug 2025
2.8%
3.4%
Sep 2025
3.5%
4.1%
Oct 2025
4.2%
4.8%
Nov 2025
4.8%
5.3%
Dec 2025
5.1%
5.6%
Jan 2026
4.9%
5.2%
Feb 2026
4.2%
4.6%
Mar 2026
3.8%
4.1%
Apr 2026
3.2%
3.7%
May 2026

Seasonal Pattern Analysis:

Summer 2025: Expected 2.9-3.4% average discounts as inventory typically increases

Fall/Winter 2025: Projected 4.8-5.6% discounts during slower selling season

Spring 2026: Anticipated market recovery with 3.7-4.1% average discounts

Projection Methodology: Based on seasonal patterns, economic indicators, and historical cyclical trends

Strategic Recommendations for Buyers

  • Timing Advantage: Current market conditions favor buyers with 4.73% average discounts in 2024, well above the 5-year average.
  • Negotiation Power: Expect 3-6% off list price in normal market conditions, with potential for greater concessions on overpriced properties.
  • Market Entry Strategy: Late fall and winter months typically offer better negotiating positions based on seasonal patterns.
  • Due Diligence: Properties listed above market value may see discounts of 8-15% - research comparable sales thoroughly.
  • Financing Readiness: Pre-approval and quick closing capability provide additional negotiating leverage in the current market.

Strategic Recommendations for Sellers

  • Pricing Strategy: Price competitively from day one - overpricing typically results in 8-15% eventual price reductions.
  • Market Timing: Spring and early summer traditionally offer better pricing power and faster sales.
  • Condition Premium: Well-presented homes can command list price or minimal concessions even in buyer-favorable markets.
  • Flexibility Factor: Build in 3-5% negotiation buffer when setting list price to maintain net price objectives.
  • Market Positioning: Professional staging and strategic improvements can differentiate your property in a competitive market.

Ready to Make Your Move in Palos Verdes Estates?

Whether you're buying or selling, having the right market intelligence and experienced representation is crucial for achieving your real estate goals. Let's discuss how these market insights apply to your specific situation.

Real Estate Professional
George Fotion
Company
Call Realty Best Palos Verdes Homes
CalDRE License
#785373
Direct Cell
424.722.9136
Website
palosverdeshomesbest.com
Email
george.fotion@homeispalosverdes.com

Schedule your complimentary market consultation today and discover how to maximize your real estate investment in Palos Verdes Estates.