House the market? Scherb Homes Group - September 2026
Scherb Homes Group | South Bay Real Estate Market Report
South Bay Real Estate Market Update — September 2026
What buyers and sellers should know about home prices, inventory, mortgage rates and market conditions across the South Bay and Palos Verdes Peninsula.
The South Bay housing market has remained remarkably resilient despite higher mortgage rates and continued economic uncertainty. Prices are generally stable to modestly higher, inventory has become more balanced, and buyers are gaining negotiating leverage in several communities without the broad price deterioration that would characterize a major market downturn.
Market snapshot updated September 9, 2026.
South Bay Housing Market
September 2026 South Bay Market Snapshot
Inventory remains somewhat constrained, but the market is more balanced than it was during the ultra-low-inventory environment of previous years. The summer market was fairly steady, while the spring market was muted by geopolitical uncertainty, economic concerns and higher borrowing costs.
Despite those pressures, South Bay home prices have largely remained stable or moved modestly higher depending on the city and neighborhood. We are not currently seeing a dramatic broad-based move either upward or downward. Instead, individual property quality, location, price positioning and seller motivation are increasingly determining outcomes.
What this means for buyers
- There is more negotiating room than during the fastest portions of 2024 and 2025.
- Homes sitting for 30 days or more deserve closer attention.
- Previous price reductions can signal an opportunity to negotiate.
- The best homes can still attract immediate competition.
- Cash and fully underwritten buyers remain especially competitive.
What this means for sellers
- Correct initial pricing matters more than it has in several years.
- Condition and presentation can materially affect market time.
- Overpricing frequently leads to reductions rather than a higher final sale.
- Quality homes in desirable locations continue to command strong interest.
- Local neighborhood data matters more than broad South Bay averages.
Rates & Affordability
Mortgage Rates Remain the Biggest Housing Affordability Constraint
Why does the mortgage rate run above the 10-year Treasury?
Thirty-year mortgage rates frequently move in the same general direction as the 10-year U.S. Treasury yield because both are long-duration investments affected by inflation expectations, economic growth and investor demand.
Mortgage rates, however, include additional costs and risks associated with mortgage-backed securities, servicing, borrower prepayment and lender margins. Historically, the spread between the 30-year mortgage rate and the 10-year Treasury has often averaged around 1.7 percentage points.
Strategy
Price, Location and Condition Are Driving the 2026 Market
The September South Bay market is increasingly a property-by-property market. The best homes can sell quickly and close near or above asking, while homes with location compromises, deferred maintenance or aggressive pricing may sit substantially longer.
Palos Verdes Peninsula
Rolling Hills Real Estate Market
Rolling Hills is always a market where small sample sizes can materially affect monthly statistics. Only 13 active and coming-soon homes are represented in this snapshot, so a few unusually large, small, updated or dated properties can quickly shift median figures.
The current median list price is approximately $4.85 million, median asking price is about $965 per square foot, and median market time has extended to 135 days. More than half of the current inventory has experienced a price reduction.
The longer-term signal remains constructive: home values are approximately 2.3% higher over the past year.
Coastal South Bay
Manhattan Beach Real Estate Market
Manhattan Beach continues to stand out as one of the strongest luxury markets in the South Bay. The median asking price has reached approximately $5.45 million, while active and coming-soon properties are asking a median of roughly $1,806 per square foot.
There is a meaningful amount of inventory at 74 homes, although the high-end property mix can substantially influence median pricing. September inventory includes ultra-luxury listings, including properties approaching the $30 million range, which can push broader pricing statistics higher.
Approximately one-third of listings have experienced a price reduction, while year-over-year appreciation is approximately 6.2%.
Coastal South Bay
Hermosa Beach Real Estate Market
Hermosa Beach remains one of the quicker South Bay markets. Median market time is approximately 34 days, while the median list price is approximately $2.449 million.
Roughly 31% of active inventory has experienced a price reduction. At the same time, home values are approximately 6.2% higher than one year ago.
For buyers
There are windows of opportunity, but buyers should recognize that attractive homes can still move faster here than in many neighboring cities. Being fully underwritten before the right property appears can materially strengthen an offer.
For sellers
Price, location and condition remain the three major factors. Hermosa Beach has delivered strong year-over-year appreciation, but buyers remain discerning and will differentiate sharply between exceptional homes and compromised inventory.
Palos Verdes Peninsula
Palos Verdes Estates Real Estate Market
Palos Verdes Estates currently has fewer homes available, while the median list price has moved substantially higher compared with several points during the previous six months.
The median active and coming-soon price is approximately $4.5 million, with asking prices around $1,118 per square foot. Median market time is approximately 84 days, and roughly 32% of listings have experienced a price decrease.
Home values remain approximately 2.3% higher than one year ago. Price per square foot has remained relatively stable, while total available inventory has declined since the spring.
Palos Verdes Peninsula
Rolling Hills Estates Real Estate Market
Rolling Hills Estates is showing modest price appreciation of approximately 1% over the past year, while homes are taking close to two months to sell.
Median asking price is approximately $746 per square foot, with a current median list price near $899,000 based on the active property mix. Approximately 27% of the current inventory has experienced a price reduction.
Palos Verdes Peninsula
Rancho Palos Verdes Real Estate Market
Rancho Palos Verdes has considerably more inventory than during portions of 2023 and 2024. There are approximately 116 active and coming-soon homes in the current snapshot.
The median list price has climbed to approximately $2.299 million, while median market time has extended to roughly 71 days. Approximately 40% of the available inventory has experienced a price reduction.
Despite slower absorption, average home values remain approximately 1% higher than a year ago.
South Torrance / Redondo Beach
Hollywood Riviera Real Estate Market
Cliff’s Notes for Buyers
Hollywood Riviera is giving buyers more negotiating room than earlier this year. Median days on market has climbed to 57 days, compared with 47 days in August and only 28 days in June. At the same time, 40% of active homes have already experienced a price reduction.
That does not mean values are collapsing. Average home prices remain approximately 1.9% higher than one year ago, median asking price has risen to roughly $2.219 million, and total available inventory remains limited at only 13 homes.
Cliff’s Notes for Sellers
Hollywood Riviera values remain positive year over year, but the bigger story is market time. At 57 days, median days on market has risen substantially, while 40% of current listings have already reduced their price.
Buyers have become more price-sensitive. Sellers who price ahead of the market and present their home exceptionally well remain in a strong position, while starting too high can weaken negotiating leverage later.
The bigger Hollywood Riviera story is normalization. Appreciation that ran roughly 5%–7% during portions of 2024 has slowed to approximately 2%. Homes are taking longer to sell, and price reductions are more common. At the same time, limited inventory and the desirability of this coastal neighborhood continue to support values.
Beach Cities
Redondo Beach Real Estate Market
Cliff’s Notes for Buyers
Redondo Beach is giving buyers noticeably more leverage than earlier this summer. Median days on market is now 43 days, up from approximately 28 days in June, while 40% of active homes have experienced a price reduction.
Inventory remains meaningful at approximately 122 active and coming-soon homes. The median list price is around $1.499 million, while active asking prices are approximately $868 per square foot.
Homes that have been on the market 30–45 days or longer, previously reduced their price, or launched too aggressively deserve particular attention.
Cliff’s Notes for Sellers
Redondo Beach values remain positive, with average prices approximately 2.9% higher than a year ago. That is stronger than the roughly 1% annual appreciation seen during portions of early 2026.
Sellers should nevertheless pay close attention to market time. With median days on market rising and 40% of listings seeing reductions, buyers are clearly more price-sensitive.
Correct initial pricing, strong presentation and making the home stand out during its first two weeks are increasingly important.
In mid-2024, annual appreciation reached roughly 8%–9% at certain points. Today, appreciation is approximately 2.9%. That slowdown, combined with longer market times and more frequent price reductions, is a clear sign that Redondo Beach has transitioned into a more normalized market.
South Bay
Torrance Real Estate Market
Cliff’s Notes for Buyers
Torrance is offering buyers more leverage than it did earlier this summer. Median days on market has climbed to 42 days from approximately 27 days in June and July, while 34% of homes have experienced a price reduction.
Inventory remains relatively high at 178 active and coming-soon homes. Buyers have more choices, more time and more opportunity to negotiate, particularly with listings that have been sitting for several weeks.
Cliff’s Notes for Sellers
Torrance values have strengthened this year, with average prices now approximately 2.2% higher than a year ago. That represents a meaningful improvement from the negative year-over-year readings seen during early 2026.
The challenge is increased competition. Inventory has risen substantially compared with January, and approximately one-third of current listings have already reduced their price.
In mid-2024, year-over-year Torrance appreciation was running approximately 8%–9%. Today it is closer to 2.2%. The market has normalized, rather than collapsed.
South Bay / Harbor Area
San Pedro Real Estate Market
Cliff’s Notes for Buyers
San Pedro is currently one of the more buyer-friendly markets in the greater South Bay area. Median days on market has climbed to 56 days from roughly 36 days in June, while approximately 39% of current inventory has already experienced a price reduction.
There are approximately 116 active and coming-soon homes, with a median list price around $839,000 and median asking price of approximately $514 per square foot.
Properties sitting for 30–60 days or longer, particularly those with prior reductions, may offer some of the strongest negotiating opportunities.
Cliff’s Notes for Sellers
San Pedro remains more price-sensitive than many neighboring South Bay markets. Average home values are approximately 0.4% below last year, while median market time has reached approximately 56 days.
Price reductions are increasingly common. Roughly 39% of current listings have reduced their price, compared with approximately 30% in June and 19% in March.
The encouraging signal is stabilization. San Pedro experienced year-over-year depreciation exceeding 2% during portions of early 2026. That decline has narrowed substantially to approximately 0.4%. The market has not yet returned to meaningful appreciation, but the trend is considerably more stable.
South Bay City Comparison
How South Bay Markets Compare in September 2026
| Market | Median $/Sq Ft | Inventory | Median List | Median DOM | Price Reductions | 1-Year Change |
|---|---|---|---|---|---|---|
| Rolling Hills | $965 | 13 | $4.85M | 135 | 54% | +2.3% |
| Manhattan Beach | $1,806 | 74 | $5.45M | 47 | 33% | +6.2% |
| Hermosa Beach | $1,219 | 24 | $2.449M | 34 | 31% | +6.2% |
| Palos Verdes Estates | $1,118 | 27 | $4.50M | 84 | 32% | +2.3% |
| Rolling Hills Estates | $746 | 29 | $899K | 57 | 27% | +1.0% |
| Rancho Palos Verdes | $859 | 116 | $2.299M | 71 | 40% | +1.0% |
| Hollywood Riviera | $1,073 | 13 | $2.219M | 57 | 40% | +1.9% |
| Redondo Beach | $868 | 122 | $1.499M | 43 | 40% | +2.9% |
| Torrance | $641 | 178 | $894K | 42 | 34% | +2.2% |
| San Pedro | $514 | 116 | $839K | 56 | 39% | -0.4% |
Life in the South Bay
What the Scherb Homes Group Family Has Been Up To
September means back to school in our house. Clover is back at school and has also started soccer, while we have been enjoying some final summer days along the coast and several incredible South Bay sunsets.
It has been unusually warm around Los Angeles, so staying close to the water, getting in the pool and taking advantage of the beach has been particularly welcome.
The fall real estate market is also beginning to pick up for Scherb Homes Group. Personally, we are continuing to stay active and enjoy the community, including Friday hikes and run-walks with the Grateful Treads.
Later this fall, our family will make our annual trip back to the East Coast to spend time with family around an early Thanksgiving. Until then, we are grateful to enjoy this part of the year at home in Palos Verdes and throughout the South Bay.
South Bay Housing Questions
Frequently Asked Questions
Is the South Bay housing market going down in 2026?
Is September 2026 a buyer’s or seller’s market in the South Bay?
Are South Bay homes still selling near asking price?
Which South Bay markets are strongest right now?
Where do South Bay buyers currently have the most negotiating leverage?
Should a South Bay seller price high and negotiate later?
Why are South Bay prices holding up despite mortgage rates near 7%?
What matters most when evaluating a South Bay home?
Thinking About Buying or Selling in the South Bay?
Market averages provide context, but the real opportunity is understanding how the data applies to a specific property, street or neighborhood. Scherb Homes Group provides private, informed guidance for South Bay homeowners and buyers across public, private and off-market opportunities.
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