As real estate professionals and regular contributors to SPT, we take pride in staying in tune with the local housing market—especially here along the coast in San Pedro and Rancho Palos Verdes. We aim to provide insights that reflect both the numbers and the unique lifestyle that makes our corner of the Greater South Bay so desirable. In our 2024 “Year in Review,” we noted that sales volume in San Pedro had increased modestly by +11.2% (+27 SFR’s sold) from 2023, while the median home price increased by +2.7% to $950,000 during the same period. In neighboring Rancho Palos Verdes, the number of homes sold increased slightly (+1.8%) with an average median home price of $1.867MM, which was an increase of + 2.8% from the previous year.
Entering 2025, the California Association of Realtors® projected an increase in existing SFR home sales to total 304,400 units, up +10.5% from 2024’s revised projection of 275,400. The California median home price was forecast to climb +4.6% to $909,400 in 2025, following a projected +6.8% increase to $869,500 in 2024 from 2023’s $814,000. The average 30-year, fixed mortgage interest rate was projected to decline from 6.6% in 2024 to 5.9% in 2025
Through the first half of 2025, interest rates have hovered in the high 6% range, largely due to stubborn inflation. While the Federal Reserve has hinted at more possible rate cuts later this year, our coastal market has continued to show resilience in the face of elevated borrowing costs.
So, how has our coastal market performed in 2025?
In San Pedro, 123 SFR’s sold between January and mid-June—down -4.65% from 129 during the same time in 2024. The median sales price climbed +6.27%, from $988,000 to $1,050M. Days on Market (DOM) remained flat at 18 days, a sign that serious buyers remain active.
In Rancho Palos Verdes, the market told a slightly different story. 132 SFR homes sold, up +6.45% from 124 sales a year ago. The median sales price was flat to down slightly from $1,854M to $1,850M. Homes were also taking longer to sell with DOM increasing from 13 to 29 days from the same period a year prior.
Across the Greater South Bay, overall sales volume experienced a +5.79% increase with 1,442 homes sold in the first half of 2025, compared with 1,363 sold during the same period last year. The median SFR price jumped +8.40%, from $1.190M to $1.290M. The average DOM increased from 12 to 15 days, showing steady buyer interest despite rate pressure.
What stands out in our coastal markets is that lifestyle continues to drive demand. Whether it’s the historic charm, LA Harbor & Catalina Island views, and walkable coastline access in San Pedro or the coastal canyons and panoramic ocean views in RPV, buyers are still willing to compete for the right home in the right location. A strong local economy and persistently lower inventory continue to buffer price softening—even with rates remaining higher than expected.
As we move into the second half of 2025, we’ll be watching mortgage rates, inventory levels, and how buyers respond to late-year Fed decisions. No matter how the broader market moves, our coastal communities remain uniquely positioned thanks to their blend of natural beauty, location, and community investment. We look forward to bringing you our “Year in Review” in January and continuing to track trends along the coastline we call home.
Mike Harper and Peter Hazdovac are both licensed Realtors® and co-owners of HH Coastal Real Estate, an independent local brokerage. For more info, visit www.hhcoastal.com
