Why Now is the Time to Buy Investment Property in the South Bay

The South Bay real estate market is experiencing something we rarely see: a meaningful pullback. Over the past several months, some cities in our region have seen price reductions of up to 10%. For buyers, this represents a window of opportunity we haven’t witnessed in years.

At the Scherb Homes Group, we’re guiding clients through this unique moment—helping families, investors, and even grandparents position themselves to build long-term wealth through smart real estate investments.

*Pull back data showing a decrease in home prices in 2025 in Palos Verdes Estates

What’s Driving This Market Moment

For much of the last decade, South Bay home values have marched steadily upward. The fundamentals haven’t changed—demand is high, inventory remains constrained, and the South Bay continues to be one of the most desirable places to live in Southern California. But with interest rates staying stubbornly high, buyers have pressed pause. That hesitation has led to the rare price cuts we’re seeing now.

Here’s the key: rates will come down at some point, but prices won’t stay flat forever. Historically, home values in our region always rebound—and usually quickly. Waiting for rates to fall often costs buyers more in appreciation lost than it saves in lower monthly payments.

Featured Photo - Redondo Beach - The Scherb Homes Group helped our buyers secure a fourplex, a great long term investment because it maximizes rental income potential while spreading risk across multiple units.

Lessons From the Past

Real estate has been called a bubble countless times, yet the numbers tell a different story. Consider this snapshot:

October 2015: Headlines warned of “a bubble larger than 2006,” yet homes at $1,000,000 appreciated to $1,051,000 in just a year.
June 2020: Articles predicted a “housing apocalypse.” Instead, prices jumped 16% in a single year.
June 2021: Warnings of a bubble persisted, but values surged another 18%.

The lesson? Housing consistently proves to be a resilient, wealth-building asset—even during times of uncertainty.

The Cost of Waiting

Let’s put the numbers into perspective. Suppose you buy a $1,000,000 home today with 20% down:

If you wait six months, you could lose out on $24,286 in appreciation and an additional $4,191 in amortization gains—a total cost of nearly $28,500.
Wait a full year, and that loss grows to more than $71,000.

Even if you refinance later to capture a lower rate, the cost of waiting far outweighs the short-term payment savings.

Who Should Be Thinking About This

Young Families: Investing in a starter home or condo today means future stability for your children. With prices climbing faster than wages, many young adults will struggle to afford South Bay homes down the road. Owning now sets the stage for generational security.
Parents & Grandparents: Investing in real estate for your children or grandchildren can be one of the most impactful financial moves you make. Over time, the accumulated equity from one or two properties can provide life-changing opportunities for the next generation.
Equity-Rich Homeowners: Many South Bay residents have experienced significant equity growth over the last five years. Leveraging that equity into an investment property allows you to diversify and grow your portfolio without depleting cash reserves.

Our Guidance for Clients

At Scherb Homes Group, we believe in balancing long-term strategy with real-time opportunities. Our advice today is simple:

Don’t wait for the “perfect” rate. Focus on the asset, the location, and the long-term appreciation potential.
Consider smaller, manageable properties if it’s your first investment—condos, townhomes, or modest single-family homes.
Think generationally: investments today can set your family up for decades of stability and growth.

We’ve curated a list of current investment opportunities across South Bay cities that we believe represent strong long-term value. Explore them here.

Final Thoughts

Markets like this don’t come along often. Price reductions in the South Bay are rare and temporary. By acting now, you can lock in opportunities that will likely not be available once rates begin to fall and demand surges back.

If you’re thinking about buying or investing—or if you’d simply like to run the numbers on what’s possible—let’s talk. I’d be happy to meet for coffee or schedule a video call to explore your options.

Reach out directly:

Cliff Scherb

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As seasoned real estate professionals in the South Bay, Cliff and Kimberly Scherb leverage their unique backgrounds to provide exceptional service. Cliff, with expertise in health and wellness, ensures a holistic approach to real estate, while Kim, a former ballet dancer and acupuncturist, offers refined design insights. Together, they deliver a comprehensive and client-focused experience.