House the market? Scherb Homes Group - May 2025
From our family to yours – a friendly update on what’s happening across the South Bay real estate market
Hello from Scherb Homes Group,
Spring has been full of life for the Scherb family. We recently celebrated our daughter Clover’s 6th birthday, took an unforgettable trip to Catalina Island with our Adventure Guides group, and spent Mother’s Day reflecting on the things that matter most: family, community, and shared experiences. These moments remind us it’s not about the stuff—it’s about the memories we create and hold onto.
Now let’s shift gears and talk about the market.
We’re continuing to see some notable shifts across the South Bay, and we’ve put together this report to keep you informed—whether you’re actively searching for a new home, preparing to sell, or simply keeping an eye on the horizon.
Cities covered in this report are ordered from highest to lowest median list price:
Rolling Hills, Manhattan Beach, Hermosa Beach, Palos Verdes Estates, Rolling Hills Estates, Rancho Palos Verdes, Hollywood Riviera, Redondo Beach, and Torrance.
Top 3 South Bay Market Takeaways – May 2025
Inventory is rising. We’re seeing more homes on the market than we have in the past year in nearly every city.
Buyers are cautious but active. Uncertainty about interest rates and economic outlooks is causing hesitation, yet competitively priced homes in great locations are still moving quickly.
We’re in a slight seller’s market. With 3.4 months of inventory, the edge still belongs to sellers, but buyers have more leverage than they’ve had in recent years.
South Bay Market Snapshot
Metric
Value
Median Sold Price (All South Bay)
$1,867,125
Cost Difference Past 12 Months
$153,606
Sale Price Change YoY
-6%
Homes for Sale vs Last Month
+0.5%
Homes Sold vs Last Month
-6%
Months of Inventory
3.4 (Slight Seller’s Market)
Sold Over Asking
37%
Sold At Asking
12%
Sold Under Asking
51%
Avg Days on Market (Now vs. Last Year)
25 (Flat YoY)
Sold in <30 Days
75%
Sold in 30–90 Days
19%
Sold in >90 Days
7%
30-Year Fixed Rate
6.76%
10-Year Treasury
4.37%
Rate Spread vs Historical Avg (1.7%)
2.39% (elevated, likely temporary)
HPSI (Home Purchase Sentiment Index)
69 (Many still feel the economy is on the wrong track)
Rolling Hills
Metric
Value
Price/Sq Ft
$1,101
# of Homes
17
Median List Price
$4,688,000
Avg Days on Market
45
Price Reductions
61%
1-Year Market Forecast
+0.9%
Cliff’s Notes:
Rolling Hills has the most inventory it’s seen in two years, yet homes are still selling at a decent pace. However, over 60% have had price reductions. This is a small, exclusive market and remains stable with slight appreciation forecasted. Watch closely—opportunities are starting to emerge.
Manhattan Beach
Metric
Value
Price/Sq Ft
$1,706
# of Homes
91
Median List Price
$5,550,000
Avg Days on Market
33
Price Reductions
25%
1-Year Market Forecast
+1.4%
Cliff’s Notes:
Manhattan Beach is absorbing some demand from the Pacific Palisades fire relocations. Inventory is at its highest in over a year. While homes are selling briskly, buyers are negotiating more. Strong pricing and location still win in this competitive, high-demand market.
Hermosa Beach
Metric
Value
Price/Sq Ft
$1,586
# of Homes
37
Median List Price
$3,395,000
Avg Days on Market
55
Price Reductions
35%
1-Year Market Forecast
+1.4%
Cliff’s Notes:
Hermosa has seen a slight price softening and longer time on market, likely due to increased spring inventory and post-fire cooling. Still, it’s performing well with healthy demand. A good place for buyers to negotiate.
Palos Verdes Estates
Metric
Value
Price/Sq Ft
$1,053
# of Homes
74
Median List Price
$3,775,000
Median Days on Market
35
Price Reductions
34%
1-Year Market Forecast
+0.9%
Cliff’s Notes:
A big surge in listings is giving buyers more options in PVE. That said, homes are still moving relatively quickly. The market is starting to balance out. Sellers should be strategic; buyers should act while choice is high.
Rolling Hills Estates
Metric
Value
Price/Sq Ft
$788
# of Homes
20
Median List Price
$1,637,000
Avg Days on Market
43
Price Reductions
40%
1-Year Market Forecast
-0.8%
Cliff’s Notes:
Buyers are in a better position here. Homes are sitting longer, and nearly half have reduced their prices. If you’re looking in this area, this may be your window.
Rancho Palos Verdes
Metric
Value
Price/Sq Ft
$818
# of Homes
138
Median List Price
$2,100,000
Avg Days on Market
39
Price Reductions
44%
1-Year Market Forecast
-0.8%
Cliff’s Notes:
RPV has plenty of inventory and price reductions. This is one of the better markets for buyers right now—lots of choice, and room to negotiate.
Hollywood Riviera
Metric
Value
Price/Sq Ft
$890
# of Homes
123
Median List Price
$1,749,000
Avg Days on Market
26
Price Reductions
29%
1-Year Market Forecast
+2.9%
Cliff’s Notes:
The Riviera market is moving fast. Homes priced well are being snapped up. Strong forecasted growth and relatively low price reductions make this one of the healthiest markets right now.
Redondo Beach
Metric
Value
Price/Sq Ft
$891
# of Homes
112
Median List Price
$1,749,000
Avg Days on Market
29
Price Reductions
29%
1-Year Market Forecast
+2.3%
Cliff’s Notes:
More homes are available, and buyers are getting choices. Still, the market is fast and prices are holding strong. Sellers are in a decent position, but buyers shouldn’t hesitate too long—especially on turn-key properties.
Torrance
Metric
Value
Price/Sq Ft
$714
# of Homes
145
Median List Price
$1,199,000
Avg Days on Market
26
Price Reductions
42%
1-Year Market Forecast
+4.4%
Cliff’s Notes:
Torrance is becoming increasingly competitive with more homes on the market and strong buyer activity. Forecasted growth is the highest in the region. A good place for buyers to get in before values increase further.
San Pedro
Metric
Value
Price/Sq Ft
$567
# of Homes
99
Median List Price
$860,000
Avg Days on Market
26
Price Reductions
40%
1-Year Market Forecast
+0.1%
Cliff’s Notes:
Inventory is up and prices are more affordable than anywhere else in the region. Sellers may need to negotiate, but homes are still moving. This is a solid value zone with potential upside long term.
Final Thoughts from Cliff
Whether you’re looking to buy this summer or planning to sell before the year ends, now is the time to start preparing. The markets are shifting, and opportunities—on both sides—come to those who plan ahead.
If you’re considering a move, I’d be happy to prepare a personalized seller report or show you current and upcoming buyer opportunities before they hit the broader market.
Reach out any time.
Warmly,
Cliff Scherb
Global Real Estate Advisor
Scherb Homes Group | Vista Sotheby’s
310-696-6648
cliff@scherbhomes.com
DRE #02207710
