Home Sales: 2015 VS. 2014…How long will the run last? This is a good one to read!

HERMOSA BEACH 2015 VS 2014 UPDATE

Have we hit the peak? We have certainly hit a new high in 2015. The median home sale price is up 15.6% from 2014 and Sales (# of Units) are up 7.7%. Where does that put us compared to the most recent bottom (2010) and where are we going from here….see below?

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As you can see, we have been on an upward curve (Hermosa home values) since 2010 when we saw the lowest median home price of $950,000 and a lower demand for sales.

2015
223 Units Sold
$1,475,000 Median Sale Price
$15,000,000 Highest Sale Price
$372,000 Lowest Sale Price

2014
207 Units Sold
$1,275,000 Median Sale Price
$8,950,000 Highest Sale Price
$338,000 Lowest Sale Price

2010
175 Units Sold
950,000 Median Sale Price
5,800,000 Highest Sale Price
350,000 Lowest Sale Price

The accompanying table tells a story. It also shows that, with the exception of World War II, the peak of most real estate cycles is roughly every 18 years.

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The preceding chart indicates that every 18 years we can expect the culmination of a credit-fueled real estate and ensuing business cycle. This, of course, doesn’t imply that all recessions are preceded by a real estate cycle. It only says that all real estate cycles have spawned economic downturns.

The chart above also indicates that we may still have a few more years of economic/home value increase, however when looking at the past 5-year growth rate here in Hermosa Beach, it seems hard to believe that we can sustain at the same rate. I look forward to seeing how 2016 unfolds.
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Hermosa Beach Home Search Hermosa Beach Home Values

Post by Darren Pujalet

Darren has written 288 articles.

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