Hermosa Beach Real Estate Market Report – February 2025

What’s the Purpose of a Market Report? A market report provides a snapshot of the real estate activity in a specific area. It’s designed to give you a clear understanding of key trends, including price changes, buyer demand, and inventory levels. Whether you’re buying, selling, or simply staying informed, a market report is a critical tool for navigating the real estate market effectively.

Let's Dive In

Understanding the Market

How to Read a Market Report

A market report provides a snapshot of real estate trends in a specific area over a given time frame. It includes key pricing and performance metrics such as median sale price, days on market, and the number of homes sold. Here’s how to make the most of this data:

Key Metrics to Watch

Median Sale Price: The midpoint of all homes sold—half sold for more, half for less. This is a key indicator of overall market trends.
Average Days on Market (DOM): This metric tells you how long properties typically stay on the market before selling. A shorter DOM indicates a more competitive market.
Sale-to-List Price Ratio: This percentage measures how closely homes are selling to their original asking price. A higher ratio suggests strong buyer demand.
Turnover Rate: This statistic measures how often homes in a community change hands, offering insight into the area's stability and activity level.

Why Market Data Matters for Sellers & Buyers

Sellers who understand real-time market data gain a competitive advantage when pricing their homes. Analyzing local real estate trends allows homeowners to anticipate price fluctuations, shifts in buyer demand, and seasonality patterns, helping maximize their home's value.

For buyers, these insights clarify market conditions, such as whether it's a good time to make an offer or wait for better opportunities.

How to Use This Data to Your Advantage

✅ Track Key Metrics: Monitor median prices, days on market, and inventory levels to assess overall market conditions.
✅ Study Comparable Sales: Look at recently sold homes in your area to set realistic expectations on pricing.
✅ Consider Unique Selling Points: Features like ocean views, lot size, and luxury upgrades can significantly impact home values.
✅ Watch for Market Trends: Keep an eye on new developments, changes in mortgage rates, and buyer demand shifts.

Expert Guidance for Your Next Move

Navigating the Hermosa Beach real estate market requires localized expertise. Our team provides free, no-obligation market analyses to help you determine the best pricing strategy for selling your home or finding the right time to buy.

Follow our real estate blogs for the latest local buzz!

Why Is Hyper-Local Data More Important Than National Real Estate News?

The slide above breaks down key market activity in Hermosa Beach over the last 12 months:

Homes Sold:43 (A sharp 86% decrease compared to the previous period)
Active Listings:5
Pending Sales:6
Total Homes in the Area:3,339
Turnover Rate:0.4% (Indicating a highly stable market with very few properties changing hands)
Average Days on Market:42 days (Slightly faster than the previous month)
Median Sale Price:$6,375,000 (Up 37.6% since December 2024)

The dramatic price increase despite low sales volume suggests a highly competitive market with limited supply. Buyers are paying premium prices, yet fewer transactions are occurring, meaning sellers must price strategically and buyers need strong negotiation strategies.

Why Hyper-Local Insights Matter More Than National Data

Accurate Pricing

National data doesn’t account for unique features of Hermosa Beach real estate—such as ocean views, walkability, or luxury finishes. A local market report ensures accurate pricing strategies based on real, relevant sales data.

Sale-to-List Price Ratio:98.08% (Indicating homes are selling very close to asking price)
Price per Square Foot:$1,376 (Down from previous highs, showing some buyer leverage in negotiations)

These numbers help sellers price competitively and buyers determine fair market value.

Inventory & Competition Levels

A hyper-local report reveals whether your neighborhood is in a buyer’s or seller’s market.

Active Inventory:5 homes (Extremely low, reinforcing competition for available properties)
New Listings in Last 30 Days:17 homes
Pending Sales:6 homes

With limited inventory and strong pricing power, sellers have a strategic advantage—but buyers who move quickly and structure compelling offers can still succeed.

Neighborhood Desirability

Hyper-local data considers factors that national reports can’t, like:

School District Performance
New Development Projects
Walkability & Beach Access
Community Lifestyle Trends

For example, in Hermosa Beach, the high property values and long average ownership duration (17 years) suggest strong desirability and a low-mobility market.

Tailored Strategies for Buyers & Sellers

By analyzing real-time, local trends, your Realtor can craft highly specific strategies:

For Sellers: Pricing at market value to maximize profit while still attracting buyers.
For Buyers: Understanding which price points and property types move fastest, allowing for smarter offers.

The Bottom Line: Why Local Data Wins

While national headlines might grab attention, the details that actually matter—whether you're buying, selling, or investing—are found in Hermosa Beach’s hyper-local market report.

What Is a "Comp"?

The term "comp" is short for “comparable sale,” and it’s one of the most important tools in real estate pricing. A comp refers to a recently sold property that is similar in size, condition, location, and features to the home you’re buying or selling. Here’s why comps matter:

For Buyers: Comps help you understand what similar homes in the area are selling for, so you can make a competitive and informed offer.
For Sellers: Comps guide you in setting a realistic asking price that reflects the current market while maximizing your home's value.
For Appraisers: Comps are used to establish the appraised value of a home, ensuring lenders and buyers have a clear picture of its worth.

Market Highlights for Hermosa Beach:

- Median Sale Price:$6,375,000 (Up 37.6% since December 2024)
- Highest Sale Price:$6,375,000 (Sold on January 22, 2025)
- Average Sale Price:$6,375,000
The substantial increase in median sale prices highlights the strong demand for high-end homes in Hermosa Beach. With limited inventory and premium pricing, the area remains highly attractive for luxury buyers and long-term investors seeking stability and appreciation in a competitive market.

90254 real estate stats and data for 2025

LOCAL MARKET PERFORMANCE

In the last 30 days:

In the last 30 days, the Hermosa Beach real estate market has seen significant shifts in pricing and inventory levels. Below is a comprehensive breakdown of the latest data:
Market Activity & Inventory Levels
- New Listings:17
- Active Listings:5 (Extremely low, reinforcing a high-demand market)
- Pending Sales:6
- Homes Sold:1 (↓ 86% from the previous month, signaling a major drop in transaction volume)
Pricing & Market Trends
- Average List Price per Square Foot:$1,403 (↓ from $10,799 last month, reflecting shifting price points in new listings)
- Average Sold Price per Square Foot:$1,376 (↓ from $10,058 last month)
- Sale-to-List Price Ratio:98.1% (Sellers are still achieving close-to-asking offers)
- Average Days on Market:42 (↓ from 49 days last month, meaning homes are selling faster)
Recent Market Observations
The Hermosa Beach market saw a massive median price increase, indicating strong demand at the luxury level. However, the significant drop in the number of homes sold suggests that limited inventory and high pricing may be limiting overall market activity.
Despite fewer transactions, homes that do sell are moving quickly, with the average days on market decreasing. The 98.1% sale-to-list price ratio indicates that sellers are still commanding strong offers, though some price adjustments may be necessary depending on market conditions.
Pending sales remain steady, suggesting that February could see more closings as buyers finalize transactions.
Key Takeaways:
📌 For sellers: With low inventory and rising prices, Hermosa Beach remains a strong seller’s market. However, pricing strategically will be key to securing offers in a market where fewer homes are trading.
📌 For buyers: With homes selling faster and inventory tightening, acting quickly on well-priced properties is essential. Buyers should be prepared to compete for luxury listings and negotiate strategically in this competitive market.

The Hermosa Beach real estate market has shown dramatic shifts in the past 30 days, including a sharp increase in home values but a drop in overall sales volume:

Median Sale Price: $6,375,000 (Up 37.6% since December 2024)
Highest Sale Price: $6,375,000 (Sold on January 22, 2025)
Lowest Sale Price: $6,375,000 (Reflecting a limited number of sales in this period)
Average Sale Price: $6,375,000
Total Individual Homes in Area: 3,339
Homes Sold in Last 30 Days: 1 home (Down 86% from previous period)
Active Listings: 5 homes
Pending Sales: 6 homes
12-Month Turnover Rate: 0.4% (Indicating a very stable, low-inventory market)
Average Days on Market: 42 days (Slight decrease from the previous month, suggesting faster transactions for high-end homes)
Sale-to-List Price Ratio: 98.08% (Slight improvement from last month, showing sellers are achieving close to asking prices)

This market snapshot highlights a strong increase in home prices, but the number of transactions has dropped significantly, indicating a tight, high-value market with limited inventory.