House the market? Scherb Homes Group - June 2026
South Bay Real Estate Market Report: June 2026 Cliff’s Notes
Inventory is up, buyers have more choices, and pricing strategy matters again across Palos Verdes, the Beach Cities, Torrance, and San Pedro.
South Bay Market at a Glance
The South Bay real estate market remains a slight seller’s market, but conditions have shifted noticeably since the beginning of the year.
Inventory has increased across nearly every city, giving buyers more options and slightly more negotiating leverage than they had in January. At the same time, desirable, well-prepared homes continue to generate strong activity, particularly in the Beach Cities and throughout the Palos Verdes Peninsula.
South Bay inventory increased from 2.1 months in January to about 3.3 months today.
The median South Bay sold price is approximately $1,156,570.
Interest rates increased from approximately 6.07% to 6.54%.
For buyers, that means more choices. For sellers, that means more competition. For both, local expertise has never been more important.
Planning a move?
If you’re beginning your South Bay home search, start with the South Bay Buyer Guide. If you’re considering selling, begin with a strategic conversation about value, preparation, and timing.
Three Key Takeaways
Inventory Has Returned
The biggest story of 2026 continues to be the increase in inventory. Many South Bay markets now have significantly more homes available than they did six months ago.
Pricing Matters Again
The spring market began with expectations of strong appreciation and rapid sales. Instead, buyers have become increasingly selective. Homes priced correctly continue to sell. Homes priced aggressively are sitting longer and often requiring reductions.
Lifestyle Still Drives Demand
Top schools, coastal lifestyle, outdoor recreation, beach access, community involvement, and long-term value continue attracting buyers from across California and beyond.
What I’m Seeing Right Now
The statistics tell part of the story. Conversations with buyers, sellers, lenders, inspectors, contractors, and fellow agents tell the rest.
The spring market initially appeared poised for a significant increase in activity. Instead, the market has been more measured. Buyers remain active. They simply have more choices than they did earlier this year.
Turnkey homes continue attracting strong interest. Homes requiring significant updating are facing increased scrutiny.
Buyer Focus Areas
- Condition
- Deferred maintenance
- Insurance costs
- Financing costs
- Future renovation expenses
The market isn’t weak. It’s simply becoming more rational.
South Bay Real Estate Market Overview
Is It a Good Time to Buy in the South Bay?
For many buyers, yes. Inventory has improved substantially, competition has eased slightly, and price reductions are becoming more common.
The challenge remains affordability due to mortgage rates.
Is It a Good Time to Sell in the South Bay?
Also yes. Well-prepared homes continue to perform exceptionally well. However, strategic pricing is becoming increasingly important.
The days of simply putting a sign in the yard and waiting for multiple offers are becoming less common.
South Bay City-by-City Market Updates
Palos Verdes Estates Real Estate Market Update
Inventory has increased from 24 homes in January to approximately 40 homes today. The median list price has adjusted from over $5 million earlier this year to approximately $4.35 million. More than one-third of listings have experienced price reductions.
Buyer Opportunities
- Increased inventory
- More negotiating leverage
- Greater selection
- More luxury opportunities
Seller Opportunities
Exceptional homes continue attracting strong demand. The difference is buyers now have alternatives.
Manhattan Beach Real Estate Market Update
Inventory has increased from 39 homes to 73 homes. Days on market have increased dramatically.
Buyer Commentary
Buyers have more options and slightly less urgency.
Seller Commentary
Proper pricing is becoming increasingly important.
The Tree Section remains one of the most competitive neighborhoods. The Sand Section continues attracting luxury buyers from Los Angeles, Silicon Beach, and out-of-state relocations. Families continue targeting Manhattan Beach for schools and lifestyle.
Hermosa Beach Real Estate Market Update
Hermosa Beach remains one of the stronger South Bay markets. Only 18% of listings have experienced price reductions.
Buyer Commentary
Inventory has improved without significantly weakening pricing.
Seller Commentary
Demand remains healthy.
Walkability continues driving demand. Many buyers who cannot find the right fit in Manhattan Beach are expanding their search into Hermosa Beach.
Redondo Beach Real Estate Market Update
Inventory has increased from 95 homes to 145 homes. Interestingly, homes are selling faster than earlier in the year.
Buyer Commentary
There are more options available. However, desirable homes continue moving quickly.
Seller Commentary
The market remains healthy. Preparation and pricing remain critical.
The Hollywood Riviera continues attracting buyers seeking a beach lifestyle at a lower price point than Manhattan Beach. Golden Hills remains popular among first-time South Bay buyers. South Redondo continues attracting move-up buyers from surrounding communities.
Rancho Palos Verdes Real Estate Market Update
Inventory has grown from 78 homes to 127 homes. Despite increased inventory, homes are selling faster than they were earlier this year.
Buyer Commentary
Rancho Palos Verdes currently offers some of the best values on the Peninsula.
Seller Commentary
Competition has increased substantially. Presentation matters.
Buyers continue prioritizing neighborhoods with views, trail access, and proximity to top schools. Mira Catalina remains highly sought after for ocean views. Portuguese Bend continues attracting buyers seeking privacy and larger properties.
Rolling Hills Estates Real Estate Market Update
Nearly 42% of listings have reduced prices.
Buyer Commentary
Rolling Hills Estates is one of the strongest value opportunities currently available on the Hill.
Seller Commentary
Pricing accurately from day one is critical.
Rolling Hills Real Estate Market Update
Inventory has increased while luxury buyers have become increasingly selective.
Buyer Commentary
Opportunities for negotiation are emerging.
Seller Commentary
Expect longer marketing times.
Torrance Real Estate Market Update
Torrance continues to have the largest inventory base in the South Bay.
Buyer Commentary
Excellent value compared to neighboring Beach Cities.
Seller Commentary
Competition remains significant due to inventory levels.
San Pedro Real Estate Market Update
San Pedro continues offering some of the strongest buyer opportunities in the South Bay.
Buyer Commentary
Affordability and inventory create opportunities.
Seller Commentary
Pricing strategy remains important.
South Bay Off-Market and Private Exclusive Opportunities
One of the biggest trends we’re seeing is continued demand for off-market opportunities. Many buyers are actively searching for homes before they reach public websites.
Through Scherb Homes Group, private exclusive opportunities, coming soon properties, agent networks, and local relationships, we continue helping buyers access opportunities not widely available.
Looking for homes before they hit the open market?
Explore private, pre-market, and agent-network opportunities throughout the South Bay.
Luxury Market Update
The luxury market remains active but increasingly selective.
Buyers Continue Paying Premiums For
- Ocean views
- Turnkey condition
- Walkability
- Privacy
- Newer construction
Markets to Watch
- Palos Verdes Estates
- Manhattan Beach
- Rolling Hills
- Rancho Palos Verdes
What Buyers and Sellers Should Watch Over the Next 90 Days
- Mortgage rates
- Inflation data
- Inventory growth
- Luxury market inventory
- Relocation demand
- Off-market opportunities
My expectation is continued stability. Prices may continue inching upward modestly, but significant volatility in either direction appears unlikely today.
South Bay Real Estate FAQ
Is the South Bay still a seller’s market in June 2026?
Yes, but it is more balanced than it was earlier in the year. Inventory has increased, buyers have more options, and sellers need stronger pricing and preparation strategies.
Are buyers getting more negotiating leverage?
In many neighborhoods, yes. Price reductions are more common, and homes with condition issues or aggressive pricing are facing more scrutiny.
Which homes are still selling well?
Turnkey homes, well-priced properties, homes with ocean views, walkable locations, privacy, newer construction, and strong school access continue to perform well.
What should sellers do differently now?
Sellers should focus on strategic pricing, presentation, repairs, preparation, and clear market positioning. The market is not weak, but buyers are more selective.
Is it a good time to buy in the South Bay?
For many buyers, yes. Inventory has improved and competition has eased slightly, but affordability remains a challenge because of mortgage rates.
About Cliff Scherb
Cliff Scherb is a Global Real Estate Advisor with Scherb Homes Group and Vista Sotheby’s International Realty. Cliff specializes in luxury homes, relocation, investment properties, and coastal real estate throughout Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills Estates, Rolling Hills, Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance, and San Pedro.
His approach combines local expertise, relationship-driven service, strategic marketing, and deep neighborhood knowledge to help buyers and sellers make confident real estate decisions throughout the South Bay.
