When going over the numbers today, as I always do every day for the last 20 plus years, something struck me pretty hard.

This is the 8th day in a row with no new listings in Palos Verdes Estates. Would you like to take a guess as to the last time that happened? It was March 6 of 2006!

For Palos Verdes Estates homes, the dynamics are much more pronounced as compared to the entire Palos Verdes Peninsula. For example, in the 6 month periods of July – December of 2011 vs 2012, the number of new listings coming to market is down 30%! So we all know that real estate, being just a commodity like gold, silver, pork bellies, wheat etc., reacts in the same way as do other asset classes. Less supply and more demand creates higher prices. It’s really that simple.

I saw the same dynamics occur in the early 80s and mid 90s and I’ve written often about this topic. History does repeat itself and the cyclic patterns that we saw then, we’re seeing now. We can wonder and be curious about the “WHY” of low supply, but there can be no confusion as to the effect.

Supply / Demand Picture for Palos Verdes Homes

And what of the effect on prices for Palos Verdes homes?

In the last year, prices have increased about $30/sqft for Palos Verdes homes; that’s an increase of approximately 6.5%! Not bad. So if you know of anyone thinking of selling, this could be a great time get on the market. Feel welcome to share this post on your social media or email it to friends.

+George Fotion

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