What Happened In The 4th Quarter Of 2021?
South Bay Real Estate. What Happened In The 4th Quarter Of 2021?
Everyone in the South Bay is wondering what happened in the 4th Quarter real estate market in 2021 & what does 2022 look like? Are we going to have a crash or are we going to see further price increases due to lingering low inventory issues? Let’s look at the numbers showing What Happened In The 4th Quarter of 2021.
Can you believe it? 2021 is gone. But we’re not ready toss 2021 just yet! We have to cover the Q4 numbers.
This is a BIG DEAL to keep a pulse on our South Bay real estate markets.
I get asked: “Are We In A Bubble?” or “When Will Prices Drop?”
Thanks to our… “friend”… the Coronavirus impacting our markets in a big way at the start of 2020… we still have low supply and high demand for residential real estate here in the South Bay.
When you’re done watching my video, watch this one next… I show the stats to see if there’s an upcoming market correction or crash in 2022.
Will The Housing Market Crash in 2022 <—Watch this next!
The fourth quarter number show continued price growth and low supply!
Let’s look at the 3 Beach Cities in the South Bay: Manhattan Beach, Hermosa Beach and Redondo Beach and see how they fared in the last quarter of 2021. We’ll look at Median Prices and Closed Sales in Q4 in all 3 Beach Cities.
Manhattan Beach Real Estate
The Median Prices for the Manhattan Beach home market are UP +13% from Q3 in Q4. – Q4 – 2021: $3,022,444 – Q4 – 2020: $2,675,000
The 13% appreciation is not as strong as the 16% in Q3, but it is still amazingly strong considering how expensive the market is getting.
Inventory is the lowest in our history in this low key So Cal beach town and there is A LOT… of cash offers being made on what few homes are for sale.
Manhattan Beach Closed Sales were DOWN 12.2% in Q4 versus Q3 – Q4 – 2021: 122 sales – Q4 – 2020: 139 sales
For the second straight quarter, sales are down in Manhattan Beach. Normally, an early warning sign of weakness… but the slowing sales are a illustration of supply/demand imbalances with the lack of housing inventory. Now we’re seeing a pattern of what happened in the 4th quarter of 2021. Read on!
Ok.. let’s look at Hermosa Beach The tiny city of Hermosa Beach continues to keep up its amazing appreciation…
Q4 was UP 24% – Q4 – 2021: $2,321,500 – Q4 – 2020: $1,871,500 –
The fact that Hermosa has not even once saw a negative growth in price when the pandemic hit shows its resilience was by far the best in the South Bay and to see it grow by another 24% is quite a feat. Hermosa bucked the trend of slower sales: –
Hermosa Beach Closed Sales: UP +9.3% – Q4 – 2021: 59 sales – Q5 – 2020: 54 sales.
Redondo Beach Real Estate
The huge real estate market of Redondo Beach performed well again. First there are numbers for the entire city, and then I will divide sales data between North and South Redondo, for further context… and fun… annnd to say the word “context” in a sentence. –
Redondo Beach Median Prices were UP 13% – Q4 -2021: $1,330,000 – Q4 – 2020: $1,175,000
Now onto closed sales for Redondo: – Redondo Beach Closed Sales were DOWN 2% from Q3. – Q4 – 2021: 245 sales – Q4 – 2020: 249 sales.
For those that care about performance between North and South Redondo and I know you do…
90277 South Redondo Beach Median Prices were UP 10.5%! – Q4 – 2021: $1,475,000 – Q4 – 2020: $1,335,000
South Redondo decelerated on price growth but still saw double digits.
90278 North Redondo Beach Median Prices were UP 12.9% – Q4 – 2021: $1,267,500 – Q4 – 2020: $1,123,000
By now you’re seeing a pattern… yes? What happened in the 4th quarter of 2021 here in the South Bay is unfolding before you.
But What Does This All Mean?
The South Bay home market continues its amazing run with incredible price appreciation. With tougher comps, price growth is decelerating but it is hardly a worry.
Now that we know what happened in the 4th quarter of 2021 and we all agree the Q4 numbers in 2020 were insanely strong and to see 2021’s Q4 still grow in double digits means we have a market that is about as strong as ever.
Even with a slight tick up in interest rates, sales are slowing not because of a weakening market, but due to the insane low supply.
If we see any surge in sales, that could be a clue that sellers are beginning to meet demand and prices might begin to plateau.
The market can change at a moment’s notice, but rest assured I will be watching and reporting to you in real time.
Go back and click that link above & watch last weeks video about a possible market crash in 2022. You’ll be oh so much smarter … and more beautiful than you already are!
Daryl Palmer Real Real Estatetist
Re/Max Estate Properties RE# 1986622
Book a 20 minute Strategy Session with me here: http://meetdaryl.com/
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