Palos Verdes Estates Real Estate Market Report

Analysis and Forecast as of April 2025

Executive Summary

The Palos Verdes Estates real estate market is currently in a Shifting to Buyer's Market. The absorption rate, which measures the rate at which available homes are sold in a specific market during a given time period, is currently at 49.0%.

This places the market in the 34th percentile of historical absorption rates, where higher percentiles indicate stronger seller's markets.

Looking ahead, the market is projected to be Declining over the next six months with an expected change of -9.5%. The market is expected to soften, giving buyers more negotiating power.

Current Market Indicators

Current Absorption Rate:49.0%

Market Trend:Shifting to Buyer's Market

6-Month Forecast:Declining

Recommendations for Buyers

  • Current Market Position: With an absorption rate of 49.0%, the market is more favorable for buyers than it has been historically.

  • Negotiation Strategy: With a projected declining trend, consider making slightly lower offers and requesting more concessions from sellers.

  • Timing: Historical data suggests that January typically has the lowest absorption rates, potentially offering better buying conditions.

  • Future Outlook: The market is expected to soften, giving buyers more negotiating power.

Recommendations for Sellers

  • Current Market Position: The current absorption rate of 49.0% indicates a more balanced market than in recent years.

  • Pricing Strategy: With projections showing declining absorption rates, consider pricing more aggressively to attract buyers before market conditions potentially weaken further.

  • Timing: If possible, aim to list during June when absorption rates are historically higher.

  • Future Outlook: The market is expected to soften, giving buyers more negotiating power.

Market Forecast Summary

Based on our analysis of historical trends and current market indicators, the Palos Verdes Estates real estate market is projected to be Declining over the next six months, with absorption rates expected to decrease by approximately 9.5%.

This forecast suggests a market that is gradually shifting to favor buyers more than it has in recent years.

Market participants should closely monitor monthly absorption rate changes and adjust their strategies accordingly.

This report is based on analysis of historical absorption rates in Palos Verdes Estates through April 2025. Market conditions can change rapidly due to external economic factors, interest rates, and local market dynamics. Data has been compiled from my investment hundreds and hundreds of hours since the early 1990s. You WILL NOT find this any where else or from any other Broker. It’s one reason you should strongly consider choosing me as your advocate in real estate.