Rancho Palos Verdes 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

A market report provides a snapshot of real estate trends in a specific area over a given time frame. It includes key data points like median sale prices, average days on market, and the number of homes sold to help both buyers and sellers make informed decisions. Here’s how to interpret the data:

Median Sale Price: The midpoint of all homes sold—half sold for more, half for less. It’s a strong indicator of overall market trends.
Average Days on Market (DOM): This 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 reflects how close homes are selling to their original asking price—a higher ratio suggests strong demand.
Turnover Rate: This measures how often homes in a community change hands, providing insight into market activity and long-term stability.

Rancho Palos Verdes Market Overview

The data below provides a high-level summary of the Rancho Palos Verdes real estate market over the last 30 days:

Median Sale Price:$1,920,000 (Up 3.9% since December 2024)
Highest Sale Price:$2,650,000 (Sold on January 15, 2025)
Lowest Sale Price:$1,375,000 (Up 19.6% over the last 30 days)
Average Sale Price:$1,925,636
Total Individual Homes in Area:12,923
Homes Sold in Last 30 Days:11 homes (Down 59% from previous period)
Active Listings:61 homes
Pending Sales:13 homes
12-Month Turnover Rate:1.0% (Indicating a relatively stable long-term ownership market)
Average Days on Market:58 days (Up slightly from 56 days last month)
Sale-to-List Price Ratio:94.99% (Slight decline from 96.89% the previous month)

This market snapshot shows that while median prices have increased, there has been a sharp drop in the number of sales, suggesting that buyer activity has slowed. The increase in lower-priced home sales could indicate buyers are focusing on affordability, even as higher-priced homes continue to hold value.

Why Market Data Matters

Sellers who understand current market data gain a powerful advantage when deciding when to list and how to price their homes. Analyzing local real estate trends allows you to anticipate pricing fluctuations, shifts in buyer demand, and seasonal patterns—all crucial for maximizing home equity.

How to Use This Data to Your Advantage

✅ Track Key Metrics: Monitor median sale prices, days on market, and inventory levels to assess market conditions.
✅ Study Comparable Sales: Look at recently sold homes in your area to set realistic price expectations.
✅ Consider Unique Selling Points: Features like renovations, lot size, and desirable locations can influence home value.
✅ Watch for Market Trends: Keep an eye on economic factors, school ratings, and local developments that impact demand.

Follow our real estate blogs for the latest local buzz!

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

While national real estate news provides a broad overview of market trends, real estate is inherently local. Hyper-local data from a market report is far more relevant and impactful because it reflects what’s happening in your specific neighborhood or area. Here’s why:

Local Trends Vary Widely

Real estate markets can differ dramatically—even between neighborhoods in the same city. While national headlines might talk about a market “cooling”, Rancho Palos Verdes has actually seen median sale prices increase by 3.9% over the last 30 days, despite a significant drop in the number of homes sold. This local demand and pricing shift is something that national news won’t capture.

Accurate Pricing

National averages don’t account for the unique features and conditions of your neighborhood. A hyper-local market report provides accurate data on home prices, days on market, and sale-to-list price ratios, ensuring that buyers and sellers make informed decisions based on real numbers.

For instance, in Rancho Palos Verdes:

Median Sale Price:$1,920,000 (Up 3.9%)
Sale-to-List Price Ratio:94.99% (Slightly lower than last month, indicating more room for negotiation)
Average Days on Market:58 days

These factors directly impact how homes should be priced, marketed, and negotiated.

Inventory and Competition Levels

The number of active listings and pending sales reveals whether your neighborhood is in a buyer’s or seller’s market. These local insights are critical for setting a competitive price or crafting a winning offer.

Total Homes in the Area:12,923
Homes Sold in Last 30 Days:11 homes (A steep 59% decline from last month, indicating lower transaction volume)
Active Listings:61 homes
Pending Sales:13 homes

A drop in home sales but stable prices suggests a market that is cooling in terms of volume but maintaining value, meaning buyers have more negotiating power, while sellers must be more strategic in pricing.

Insights on Neighborhood Desirability

Hyper-local data considers factors like nearby schools, amenities, and recent development projects that national news can’t address. These factors directly influence demand and pricing in Rancho Palos Verdes, where buyers continue to focus on 4-bedroom and 5+ bedroom homes.

4-Bedroom Homes:6 Sold (Average Price: $1,850,667)
5+ Bedroom Homes:4 Sold (Average Price: $2,034,500)

These micro-trends show that buyers are prioritizing larger homes, possibly due to long-term investment goals or lifestyle needs.

Tailored Strategies for Success

By reviewing local data, your Realtor can craft strategies aligned with current trends in Rancho Palos Verdes. Whether it’s pricing your home correctly or making a competitive offer, hyper-local data allows for a level of precision that national reports simply can’t provide.

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.

90275 sales comparables for homes sold in 2025

Market Highlights for Rancho Palos Verdes:

- Median Sale Price:$1,920,000 (Up 3.9% since December 2024)
- Highest Sale Price:$2,650,000 (Sold on January 15, 2025)
- Lowest Sale Price:$1,375,000 (Up 19.6% over the last 30 days)
- Average Sale Price:$1,925,636
- Sale-to-List Price Ratio:94.99% (Slight decline from 96.89% the previous month)
- Average Days on Market:58 days (Up slightly from 56 days last month)
- Total Homes Sold:11 homes in the last 30 days (Down 59% from 27 homes last period)
- Active Listings:61 homes
- Pending Sales:13 homes
- 12-Month Turnover Rate:1.0% (Indicating a relatively stable long-term ownership market)

Where Is the Market Headed?

The Rancho Palos Verdes real estate market is currently experiencing lower transaction volume but rising prices, signaling that sellers still hold value but must be strategic. With fewer buyers in the market, there is less urgency, yet homes that are priced correctly are still selling efficiently.

Key Takeaways:

✔ Market Cooling? Fewer sales, but home values remain strong.
✔ Sellers Need Smart Pricing. Buyers are negotiating more, so pricing must align with market conditions.
✔ Buyers Have More Time. With longer days on market and lower sales volume, buyers have more time to shop, compare, and negotiate.

What’s Selling?

Buyer Demand by Home Type

The Rancho Palos Verdes market has seen strong demand for 4-bedroom and 5+ bedroom homes, with six of the 11 homes sold falling into the 4-bedroom category.

3-Bedroom Homes: 1 Home Sold (Average Price: $1,940,000)
4-Bedroom Homes: 6 Homes Sold (Average Price: $1,850,667)
5+ Bedroom Homes: 4 Homes Sold (Average Price: $2,034,500)

Price Segments Breakdown:

$1.7M or Less: 3 sales (27%)
$1.7M - $2.0M: 6 sales (55%)
$2.0M or More: 3 sales (27%)

This suggests that buyers are particularly focused on homes between $1.7M - $2.0M, while the luxury market above $2M remains active but selective.

Market Insights & What This Means for You

For Sellers:

Home sales volume has dropped by 59%, meaning fewer buyers are making purchases, possibly due to seasonal slowdowns or shifting affordability concerns.
The sale-to-list price ratio has declined to 94.99%, indicating that buyers have slightly more negotiating power than in previous months.
Higher-priced homes ($2M+) are still selling, but buyers are being selective and likely seeking competitive pricing or premium features.

For Buyers:

Median home prices are rising, but with fewer competing buyers, there’s more room for negotiation.
The average days on market is increasing (58 days), meaning buyers can take more time to evaluate their options before making an offer.
Well-priced homes under $2M are moving the fastest—if you're looking in this range, act quickly before competition picks up again.