George Fotion, REALTOR® · Call Realty · 45+ years of consecutive daily CRMLS tracking
CURRENT 180-DAY MA $825.89 per sq ft | 24-MONTH PROJECTION $800.65 per sq ft | EXPECTED CHANGE -3.06% 24 months | AVG RATE OF CHANGE -$1.05 per sq ft / month | TRANSACTIONS 160 closed sales |
That combination is exactly why I run first and second derivatives on this market instead of just quoting an average. The first derivative — the slope of the curve — just crossed into negative territory in mid-July at -$5.22 per square foot per month. The second derivative — the acceleration — is at -4.35, meaning the market is not just softening, it softened faster this month than last.
But here is the part most headlines will miss: bounded by this submarket’s own ten-year extremes (+29.90% maximum year-over-year appreciation, -17.94% maximum depreciation), the projected path is a shallow drift of roughly -3.1% over 24 months, with velocity crossing back through zero around November 8, 2027. That is a plateau, not a correction.
Full ten-year chart set and the buyer/seller playbook are in the report. Questions about your specific street? Call me.
George Fotion, REALTOR® · Call Realty · (424) 722-9136 · george.fotion@homeispalosverdes.com
1. Executive Summary
Across 160 closed sales spanning ten years, the Peninsula Center 2,000–3,000 square foot segment has moved from a 180-day moving average near $500 per square foot in late 2016 to $825.89 as of July 31, 2026 — roughly 65% cumulative appreciation, or about 5.1% compounded annually.
That decade-long arc, however, is not a straight line, and the last three years are the part that matters for anyone transacting now. The moving average peaked in the high-$800s through 2023, then entered a broad, choppy plateau. It stands today +4.61% year over year but -1.68% over the trailing thirty days — and the two-year OLS slope on this series is essentially flat at $0.0015 per day, or +0.07% per year.
The derivatives sharpen the picture considerably. Velocity turned negative on July 13, 2026 and now reads -$5.22 per square foot per month. Acceleration is simultaneously negative at -4.35, confirming the softening is currently gathering rather than shedding force. This is the least favorable of the four possible derivative states — falling and falling faster.
The projection resolves that tension. Modeling current velocity as converging exponentially toward the five-year OLS steady-state slope, and hard-capping the path at this submarket’s own observed year-over-year extremes, produces a trough of $797.03 around November 7, 2027 followed by a shallow recovery to $800.65 by July 31, 2028 — a net -3.06% over 24 months, averaging -$1.05 per square foot per month. In plain terms: a flat-to-mildly-soft two years, not a downturn.
2. Historical Year-Over-Year Extremes (The Projection Governor)
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LARGEST APPRECIATION
+29.90%
Occurred October 26, 2022
180-day MA rose from $749.16 (Oct 26, 2021) to $973.14 (Oct 26, 2022) — the terminal blow-off of the 2021–2022 low-rate bidding cycle. |
LARGEST DEPRECIATION
-17.94%
Occurred May 7, 2019
180-day MA fell from $646.91 (May 7, 2018) to $530.88 (May 7, 2019) — the 2018–2019 rate-shock and inventory-glut trough. |
3. First Derivative — Velocity
The first derivative measures how fast the moving average is changing — the slope of the line, expressed in dollars per square foot per month. Reading the recent record:
| Point in Time | 180-Day MA | Velocity ($/sqft/mo) | Acceleration |
|---|---|---|---|
| Today (Jul 31, 2026) | $825.89 | -5.22 | -4.35 |
| 1 month ago | $839.97 | +3.24 | -0.05 |
| 3 months ago | $838.59 | +7.51 | +1.84 |
| 6 months ago | $818.98 | +2.24 | -1.90 |
| 12 months ago | $789.46 | -4.78 | -1.67 |
Velocity has crossed zero nine times in the past three years — February 2024, June 2024, December 2024, April and May 2025, September 2025, January 2026, and most recently July 13, 2026. That crossing frequency is itself the finding: this is an oscillating plateau, not a trending market. No directional move since 2023 has sustained itself for more than about seven months.
The current reading of -$5.22 per square foot per month is a real negative, but in historical context it is modest. This series has registered velocities as steep as -$53 and as strong as +$60 per square foot per month. Today’s slope sits in the mild ninth of that range.
4. Second Derivative — Acceleration
The second derivative answers whether the momentum is gaining or losing force. Today it reads -4.35 — negative, and it flipped negative on June 30, 2026, roughly two weeks before velocity itself turned. That sequencing is textbook: acceleration leads velocity, and it did so here.
The projection assumes this quadrant does not persist. Under exponential convergence, acceleration turns positive almost immediately in the forward path and stays modestly positive throughout — +0.51 at three months, +0.19 at twelve, +0.05 at twenty-four. That is the mathematical signature of a decline that decays rather than compounds.
Derivative-consistency check: the projected first derivative crosses zero on November 8, 2027, one day after the projected moving-average trough of $797.03 on November 7, 2027. Velocity, acceleration, and the price path are mathematically consistent; the zero-crossing is annotated on Chart 2 as the calculus inflection point.
5. 24-Month Projection Path
| Horizon | Date | Projected 180-Day MA | Cumulative Change | 1st Deriv ($/mo) | 2nd Deriv |
|---|---|---|---|---|---|
| 3 mo | Oct 31, 2026 | $813.07 | -1.55% | -$3.38 | +0.51 |
| 6 mo | Jan 31, 2027 | $804.94 | -2.54% | -$2.08 | +0.36 |
| 9 mo | Apr 30, 2027 | $800.27 | -3.10% | -$1.18 | +0.26 |
| 12 mo | Jul 31, 2027 | $797.80 | -3.40% | -$0.51 | +0.19 |
| 15 mo | Oct 31, 2027 | $797.03 | -3.49% | -$0.03 | +0.13 |
| 18 mo | Jan 31, 2028 | $797.48 | -3.44% | +$0.31 | +0.09 |
| 21 mo | Apr 30, 2028 | $798.76 | -3.28% | +$0.54 | +0.07 |
| 24 mo | Jul 31, 2028 | $800.65 | -3.06% | +$0.71 | +0.05 |
6. Buyer Advice
7. Seller Advice
8. Devil’s Advocate — Why This Projection Could Be Wrong
The conclusion above is a mild 24-month decline to a plateau. Here is the honest case for the opposite — that price per square foot in Peninsula Center resumes climbing and the projection understates by a wide margin.
The honest summary: the -3.06% projection is the central estimate of a distribution, not a forecast. A reasonable band around it runs from roughly -8% to +6% at the 24-month mark. What the derivatives establish with confidence is the absence of a strong trend in either direction — and that plateau conclusion is far more robust than the sign of the drift within it.
9. Methodology & Data IntegrityData pool. 160 closed CRMLS records, MLS Area 175 — Peninsula Center, single-family residences 2,000–3,000 sq ft living area, closing between August 5, 2016 and July 31, 2026. All 160 records used; none excluded. Zero null values in Closed Sale Date or Price Per Square Foot. Zero duplicate MLS identifiers. Dual-pass verification (pandas plus openpyxl with a status-count assertion) passed. Moving average. Transaction-level PPSF resampled to a daily index, all gaps forward-filled, then a 180-day trailing window applied with a 30-observation minimum. Result: 3,619 moving-average points against 160 transactions, a ratio of 22.6× — confirming forward-fill was applied correctly. Maximum gap in the MA series: one day. Current MA date equals the latest dataset date. Derivatives. The MA series was smoothed with a Savitzky-Golay filter (91-day window, second-order polynomial, nearest-edge mode) and first and second derivatives taken as trailing 90-day slopes. Trailing rather than centered differencing was chosen deliberately so the most recent reading contains no forward-looking edge artifact. Regression diagnostics. Full-history OLS slope $0.1021 per day — well inside the $0.50-per-day sparse-series warning threshold. Five-year $0.0374, three-year $0.0149, two-year $0.0015. The steep one-year reading ($0.1468) was rejected as a steady-state candidate for exactly the thin-market reasons set out in the devil’s advocate section. Charts. Rendered as pure inline SVG with hard-coded coordinates — no JavaScript, no external libraries, no CDN dependencies. Historical series in navy (#0A2463); all projected series in orange (#E05A00), dashed. Delivered as a separate file. Want this analysis run on your street?
Forty-five years of consecutive daily CRMLS tracking, applied to your specific block, your specific home, your specific timeline.
George Fotion, REALTOR® · Call Realty (424) 722-9136 george.fotion@homeispalosverdes.com PalosVerdesHomesBest.com · SearchHomesInPrivate.com · calendly.com/george-fotion Derivative Calculus Price Momentum Analysis™ is a proprietary analytical framework. Data source: CRMLS closed-sale records. Statistical projections are estimates based on historical patterns and are not guarantees of future performance. This report is not an appraisal and does not constitute investment, tax, or legal advice.
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