House the market? Scherb Homes Group - January 2026
Hi friends,
Hope the new year is treating you well. On our end, January has been a nice mix of family time and a steady start to the year in real estate. Clover and I had an absolute blast with Adventure Guides up in Big Bear — snow, laughs, late nights, and some core memories made. There’s a short video from the trip right below this note if you want a quick peek into our weekend up there.
As we kick off 2026, the market feels calm on the surface, but there’s a lot happening just beneath it. Buyers are watching closely, sellers are more thoughtful, and the “easy button” from a few years ago is firmly gone — replaced by strategy, timing, and preparation.
Before diving in, a quick orientation: the cities below are covered from highest median price to lower, in this order:
Rolling Hills, Manhattan Beach, Hermosa Beach, Palos Verdes Estates, Rolling Hills Estates, Rancho Palos Verdes, Hollywood Riviera, Redondo Beach, Torrance, and San Pedro.
South Bay Market – The Big Picture (3 Takeaways)
• Inventory is still tight overall, but it’s uneven. Some cities are quietly swinging back toward sellers, while others are clearly favoring buyers.
• Pricing has stabilized. Most areas are flat to slightly down year over year, with a few standout pockets showing resilience.
• The gap between mortgage rates and the 10-year Treasury remains wider than normal, which is holding some buyers back — but also creating opportunity for those ready to move.
At a regional level, we’re in a slight seller’s market. Median South Bay pricing is sitting around $1.36M, homes are selling for about 97.6% of original list price, and months of inventory remains low at just over two months. Homes that are priced right and prepared well are still moving; everything else is negotiating.
City-by-City Cliff’s Notes
Rolling Hills
Inventory here is extremely limited, which makes the data a little choppy. Days on market have come down, but with so few homes available it’s tough to read true momentum. Forecasts point to a modest contraction of about 2.7% over the next year.
Buyers: Be patient and ready — opportunities are rare.
Sellers: Scarcity helps, but pricing discipline still matters.
Manhattan Beach
Manhattan continues to be one of the strongest markets in the South Bay. Homes are moving quickly, days on market are low, and relatively few listings are seeing price reductions. A modest appreciation outlook of around 2% feels realistic.
Buyers: Expect competition on well-located, turnkey homes.
Sellers: Strong footing heading into spring if prep and pricing are dialed in.
Hermosa Beach
Inventory is very light and homes are selling faster than they were through the fall. Median pricing has pushed up, but price per square foot remains reasonable historically for Hermosa.
Buyers: You’ll need to be decisive.
Sellers: Quietly gaining leverage as demand outpaces supply.
Palos Verdes Estates
This is a market to watch closely. Inventory is light, median days on market have dropped sharply, and fewer homes are seeing price reductions. While values are slightly down year over year, momentum feels like it’s shifting.
Buyers: Fewer choices, but long-term value still stands out.
Sellers: Conditions are improving — timing matters.
Rolling Hills Estates
There’s more inventory here than usual for this time of year, and nearly half of homes have seen price reductions. Values are down about 3% year over year, giving buyers more leverage.
Buyers: One of the stronger value plays on the Hill right now.
Sellers: Excellent prep and realistic pricing are essential.
Rancho Palos Verdes
Homes sat longer in late 2025, and median days on market are now close to 80 days. Prices have softened and more inventory is available compared to a few years ago.
Buyers: More choice and negotiating room than we’ve seen in some time.
Sellers: Expect thoughtful, data-driven buyers — not emotional bidding wars.
Hollywood Riviera
Inventory remains very limited and price per square foot has been climbing over the past several months. Homes are moving faster and fewer are seeing price cuts.
Buyers: This pocket remains competitive, especially for view homes.
Sellers: A strong position if you come to market prepared.
Redondo Beach
Redondo has been quietly steady. Price per square foot is rising, inventory has thinned over the past several months, and values are up slightly year over year.
Buyers: Solid long-term value with less volatility.
Sellers: Fair pricing continues to win.
Torrance
Torrance continues to attract buyers priced out of the beach cities. Inventory is healthy, prices have come down from last fall’s highs, and days on market are reasonable.
Buyers: Good selection and value.
Sellers: Still selling, but buyers are selective.
San Pedro
San Pedro remains the softest performer in the South Bay. Inventory is up, days on market are longer, and prices are down about 2.4% year over year.
Buyers: Strong negotiating position.
Sellers: Realistic expectations are critical right now.
Final Thoughts
If you’re thinking about selling in the next few months, now is the time to get clear on pricing, preparation, and timing — before spring inventory adds more competition.
If you’re buying, there are real opportunities, especially in markets where patience and structure matter more than speed.
If you’d like a detailed home-specific selling report, or want to hear about current and upcoming options as a buyer, feel free to reach out anytime. Always happy to help.
Cliff
Scherb Homes
