Q: Will Our Market See Appreciation Against All Odds?
Here are the latest news and notes from the Palisades real estate market.
Palisades home prices appear to have peaked in 2018 at an average of $4,259,000 after a 10-year stretch of appreciation—that’s a pretty long time! We finally saw a small drop in home prices in 2019, but we’re on track for a 5% increase here in 2020 despite COVID-19 and a general election.
That’s partly due to our market’s low inventory amid sky-high demand; when the latter outpaces the former, prices naturally rise. Interestingly, home sales are actually up 10% despite there being fewer homes to choose from. The median sales price of a Palisades home is $3,299,000, which is up 7% from last year. The current average price is $4,074,000, which is up 3% from last year, and the price per square foot is at $1,165.
Primarily due to COVID, our local MLS stopped tracking days on market for roughly five months, so we’re really not able to accurately say how long it’s been taking for homes to sell this year. In 2005, one of the peak years for home sales in the Palisades, there were 337 homes sold, but we’ve only been averaging 230 home sales over the last few years. I believe the main reason for that has to do with the amount of new construction, which currently makes up about 20% of the existing inventory.
With this all this new construction comes much bigger homes, many of which boast larger than ever basements; 10 years ago, the average size of a home in our market was only 3,215 square feet, but today the average is 15% larger at 3,867 square feet.
All in all, it’s a great time to both buy and sell thanks to low inventory and even lower interest rates. If you have any questions about real estate, please give us a call here at Amalfi Estates. We’d love to hear from you and be your go-to real estate resource.