House the market? Scherb Homes Group - August 2026
Scherb Homes Group South Bay Market Intelligence
South Bay Buyers & Sellers Market Report
What buyers and sellers should know about the South Bay real estate market as of August 3, 2026.
Hello, Scherb Homes family—
We have been enjoying summer in the South Bay. Since the Fourth of July, Clover has been busy with summer soccer, and our family has been making the most of the beach, the water, bike rides and the warmer days. I have also been fortunate to get out for hikes in the Palos Verdes hills with family, friends and neighbors.
We are grateful to be happy, healthy and having fun together—and we are looking forward to our annual short trip to Maine.
On the real estate side, the market feels more balanced than dramatic. Some homes are moving quickly, while others are sitting because the price, location or condition misses the mark.
This report moves from the highest median asking price to the lower-priced markets: Rolling Hills, Manhattan Beach, Hermosa Beach, Palos Verdes Estates, Rolling Hills Estates, Rancho Palos Verdes, Hollywood Riviera, Redondo Beach and Torrance, followed by a final San Pedro snapshot.
South Bay Market Overview
The South Bay in three Cliff’s Notes
A neutral, selective market
Supply and sales are moving at a roughly balanced pace. Prices are neither surging nor broadly collapsing, and activity has remained relatively stable over the past month.
Price, location and condition matter
Well-positioned homes can move quickly. Listings that start above the market often sit, lose momentum and eventually require a price reduction.
Leverage depends on the property
Buyers have more leverage on stale or reduced inventory. Sellers still have an advantage when they offer a rare, well-prepared home in a strong location.
Cliff’s Notes Take
This is not one market moving in one direction.
The best homes are still attracting attention. At the same time, buyers are becoming more selective and less willing to overlook an ambitious price, deferred maintenance or a compromised location. The gap between a great launch and an average launch is widening.
August 2026 Data
South Bay regional market dashboard
These figures provide a high-level view of current South Bay housing conditions. Individual neighborhoods and properties may perform differently.
| Market measure | August 3, 2026 snapshot |
|---|---|
| Overall market type | Neutral |
| South Bay median sold price | $1,230,000 |
| Change in median sold price over 12 months | +$31,000, or approximately +2.6% |
| Median sale-to-original-list-price ratio | 99.40% |
| Months of inventory | 3.5 months |
| Median days on market | 38 days |
| Low quoted 30-year fixed mortgage rate | 6.75% |
| 10-year U.S. Treasury yield | 4.68% |
| Mortgage rate versus Treasury spread | 2.07 percentage points |
| National home-price context | Fannie Mae FNM-HPI: +0.5% quarter over quarter seasonally adjusted, +2.3% quarter over quarter not seasonally adjusted, and +3.2% year over year for the quarter ending June 30, 2026. |
What does the mortgage-rate spread mean?
Mortgage rates usually sit above the 10-year Treasury yield because lenders and investors require compensation for servicing, credit risk, prepayment risk and market volatility.
The current spread is 2.07 percentage points compared with a historical average near 1.7 percentage points. That is approximately 0.37 percentage point wider than normal.
If the spread moves closer to its long-term average while Treasury yields remain relatively steady, mortgage rates could ease somewhat even without a large decline in the 10-year Treasury yield.
Local Market Analysis
South Bay real estate market by city
Citywide statistics are useful directional markers, but they do not replace a neighborhood- and property-specific analysis. View, street, school boundary, walkability, condition, lot utility and insurance considerations can create a substantial value spread within the same ZIP code.
Rolling Hills
One-year value change: +1.0%This is a stable but highly property-specific market. With a median market time of 101 days, buyers have time to investigate condition, insurance, acreage and renovation costs. Older or reduced listings may offer negotiating room, but truly special estates can still command a premium.
The market is not broadly falling, but patience and accurate positioning matter. At this price point, buyers compare every detail. Pricing close to demonstrated value—and clearly communicating the property’s lifestyle and land advantages—matters more than testing an aspirational price.
Manhattan Beach
One-year value change: +5.3%Manhattan Beach remains one of the region’s strongest markets. Buyers have less broad leverage than they do elsewhere, particularly for turnkey homes in prime locations. One-third of listings have still reduced, so there is a meaningful difference between a best-in-class home and one that started too high.
Sellers have an advantage, but not a blank check. Strong annual appreciation and record-level price per square foot support confident pricing. The 55-day median market time and 33% reduction rate still reward disciplined launch pricing and excellent preparation.
Hermosa Beach
One-year value change: +5.1%Inventory is tight, and only one in five listings has reduced. The best homes may not offer much negotiating room. Buyers should be ready to act on the right location and condition while remaining disciplined on homes with compromises such as busy streets, limited parking or deferred work.
This is a favorable environment, with solid annual appreciation, low inventory and a relatively low reduction rate. A well-presented home priced against today’s comparable sales should attract attention without requiring a long market runway.
Palos Verdes Estates
One-year value change: +1.0%Price per square foot is trending up, but nearly half of available homes have reduced and market time is close to two months. Buyers can be selective on older inventory, but should move quickly when a well-prepared home appears on a prime street or in a highly desired neighborhood.
Values are stable, but the 40% reduction rate is a warning against overpricing. Presentation, location and the first two weeks of exposure are critical. A realistic launch price usually protects the final result better than chasing the market down.
Rolling Hills Estates
One-year value change: +0.2%The market has shifted into neutral territory. Buyers can compare options and negotiate most effectively on properties that have been sitting or already reduced. Confirm the housing mix behind the citywide median because condos, townhomes and detached homes can produce very different numbers.
Values are essentially flat, and nearly four in ten listings have reduced. Accurate pricing and a strong first impression are essential. A property that misses the market early is increasingly likely to require a later adjustment.
Rancho Palos Verdes
One-year value change: +0.2%With 135 homes available and 39% reduced, buyers have meaningful choice. The strongest leverage is on older listings, homes requiring work and sellers facing direct competition. Condition, view, school location, insurance and land-movement disclosures can materially change value from one street to the next.
This is a neutral, price-sensitive market. Values are nearly unchanged from last year, so sellers should price from current competing listings rather than an earlier peak. Strong preparation and early buyer engagement help prevent extended market time.
Hollywood Riviera
One-year value change: +1.2%Inventory is limited, but the 43% reduction rate gives buyers more leverage than the low listing count suggests. Move decisively on exceptional homes, but negotiate carefully when a listing has been sitting or has already adjusted.
Low supply supports value, but buyers are still rejecting optimistic prices. Strong presentation and precise pricing are important if the goal is to sell without requiring a later reduction.
Redondo Beach
One-year value change: +2.6%Buyers have considerably more leverage than they did a year ago. Inventory is approximately 31% above July 2024, and median market time has increased from 28 to 40 days. Older or reduced listings may offer room for price, credits or better terms, although turnkey homes in desirable pockets can still attract competition.
Values are still appreciating, but competition has increased and the rapid gains seen during parts of 2024 have moderated. Price against today’s active competition, prepare carefully and make the first week count.
Torrance
One-year value change: +1.3%Buyers have substantially more choice. Inventory is approximately 53% above July 2024, and median market time has more than doubled from 16 to 34 days. Compare carefully and negotiate on homes that have been available for several weeks, while recognizing that well-priced homes in preferred school areas may still move quickly.
Appreciation has slowed, and the current $655 median price per square foot is the same as July 2024. With considerably more inventory, launch price and condition matter. The median can also shift with the property mix, so sellers should use neighborhood-level comparable sales rather than relying only on the citywide number.
San Pedro
One-year value change: -0.5%Inventory is approximately 31% above July 2024, median market time has increased from 29 to 48 days, and one-third of listings have reduced. Buyers can be patient and negotiate on stale or adjusted listings, but should compare similar property types because the San Pedro market is diverse.
The trend has shifted from positive appreciation during 2024 to slightly negative today. With more inventory and longer market times, recent comparable sales—not earlier market highs—should anchor pricing.
Practical Next Steps
What South Bay buyers and sellers should do now
If you are buying
Focus less on whether the entire South Bay market is “up” or “down” and more on where your leverage exists.
- Look closely at homes that have been sitting or already reduced.
- Separate fixable objections from permanent location compromises.
- Have financing and decision criteria ready before the right home appears.
- Be patient with average homes and decisive when a rare, well-positioned home becomes available.
- Evaluate each home using neighborhood-level comparable sales rather than citywide medians alone.
If you are selling
The current market is rewarding preparation, realism and a coordinated launch.
- Price against current competition and recent comparable sales.
- Do not rely on an earlier market high to establish today’s value.
- Complete the most valuable preparation before photography and marketing begin.
- Make disclosures and property information easy for buyers to understand.
- Treat the first two weeks as the most important period of the listing.
Cliff’s Notes Take
The best opportunity is usually a good home with a solvable reason it has been overlooked.
For buyers, that may be a home with dated finishes, limited marketing or a seller who started too high. For sellers, the opportunity is to avoid becoming that overlooked listing by getting the price, preparation, photography, disclosures and access right from day one.
South Bay Real Estate FAQ
Common questions from buyers and sellers
Is the South Bay currently a buyer’s market or a seller’s market?
The overall South Bay market is best described as neutral or balanced. Buyers have more leverage on homes that have been available for several weeks or already reduced. Sellers retain leverage when a home is rare, well-prepared, accurately priced and located in a highly desirable pocket.
Are South Bay home prices going down in 2026?
Not broadly. The South Bay median sold price is approximately $1,230,000, about $31,000 or 2.6% higher than 12 months ago. Performance varies considerably by city, neighborhood and property type. Manhattan Beach and Hermosa Beach show stronger annual appreciation, while San Pedro is slightly negative year over year.
Why are so many listings reducing their asking prices?
Buyers have more choices and are sensitive to price, condition and location. A price reduction does not necessarily mean the entire market is declining. It often means the original asking price was above what current buyers were willing to pay for that particular property.
Can buyers negotiate in the current South Bay market?
Yes, particularly on older listings, properties requiring improvements and homes that have already reduced. Depending on the seller’s priorities, buyers may be able to negotiate price, credits, repairs, closing timing or other terms. Exceptional homes can still receive strong interest and require a more decisive approach.
Should sellers wait for mortgage rates to fall?
Not automatically. Lower rates could increase buyer demand, but they may also bring more competing listings onto the market. The better decision depends on the seller’s goals, timing, property condition and neighborhood competition. A property-specific analysis is more useful than trying to perfectly time interest rates.
What is the one-year outlook for South Bay real estate?
The most likely overall scenario is stable to modest price growth, with meaningful variation by city and property quality. Limited supply supports many coastal and Palos Verdes markets, while higher borrowing costs, increased inventory and buyer selectivity should restrain larger gains.
How accurate are citywide median prices for an individual home?
Citywide medians are useful for understanding direction, but they are not a home valuation. Street, view, school boundary, lot utility, condition, size, architecture, insurance and the mix of recently sold properties can materially affect value. An individual home should be analyzed using the most relevant recent comparable sales and current competition.
Considering a South Bay move?
If you may sell your home over the next several months, I can prepare a detailed home-selling report for your specific property. If you are buying, I am happy to share the strongest current options, including homes that may be coming to market or available privately.
