Hermosa Beach Real Estate Market Forecast 2023

Hermosa Beach Real Estate Market Forecast 2023

  • Terri Dunn
  • 01/29/23
With a name translating to “beautiful beach,” there is little wonder Hermosa Beach is such a coveted real estate market. This stunning seaside spot boasts incredible year-round weather, lemony sunshine, silky white shorelines, and a vibrant, close-knit community. Residents relish the balmy climate, and locals often swim and surf in the turquoise water or lounge on the soft sand. The pristine beaches lend themselves to beach volleyball, and cyclists adore cruising up and down the coast, taking in the sprawling ocean vistas. High walkability and a dynamic array of restaurants and boutiques round out the many reasons to relocate to Hermosa Beach.

Hermosa Beach redefines coastal living. The real estate in this enchanting enclave is some of the most beautiful in Southern California, and virtually every property is mere steps from the beach. Luxury meets barefoot elegance as grand estates dot the shore and provide residents with the best wellness amenities and sumptuous interiors. Sprawling mansions perch right on the edge of the Strand, the long paved beachside walkway connecting Hermosa Beach to nearby Manhattan and Redondo beaches, while cozy cottages and bohemian bungalows embody classic SoCal beach spirit.

Whether you are looking for a spectacular estate complete with elevators and home theaters, or a sweet single-family home a few blocks from the beach, Hermosa Beach no doubt has something to satisfy — which is why this neighborhood is consistently in high demand.

The Hermosa Beach real estate market is regularly ranked as one of the most exclusive in the nation. The median price here has steadily increased, as is the case for many California markets. The Hermosa Beach average home price hovers around the $2 million mark, but estates here can (and often do) go for much higher.

So what does the future hold for this highly sought-after destination? Read on to find out the Hermosa Beach 2023 forecast.

The current Hermosa Beach market

There is no question about it — real estate in Southern California, especially the iconic beach communities, has always been highly sought-after. New residents and homebuyers have flocked to the Golden State in droves for the better part of the last century, lured first by the promise of fortune, then by the balmy climate and breezy lifestyle. But even with the incredible affluence, the previous year has proven to be a pinnacle of Southern California real estate success. The same is true for Hermosa Beach.

Coming off the heels of the pandemic, the historically low-interest rates and severe lack of inventory had buyers in a frenzy. Spurred on by a thirst for fresh air and outdoor space, everyone wanted to buy, especially beach property. Working remotely became the norm, and suddenly people could live anywhere in the country. Anticipating the next quarantine, homeowners sought out oases of sunshine and wide open spaces.

With everything from modest cottages to Hermosa Beach luxury real estate commanding multiple bids and record-high prices, inventory flew off the market. The market has recently cooled significantly, and inventory is creeping back up. The meteoric spike in prices turned the market topsy turvy, and economists recognized signs of inflation on the rise, so the Fed stepped in to make a few changes.

How rising interest rates are affecting the market

In the pandemic-influenced market, the Federal Reserve halted any interest rate increases to stimulate the housing industry and the economy. Their plan worked. Tasked with ensuring the nation’s strong economy, the Fed has kept a close eye on the climbing prices and corresponding inflation.

As the seller’s market took an almost monopolizing hold on real estate, the Fed elected to raise interest rates to restore balance to a top-heavy industry. These increases have rolled out incrementally, and the result is as intended. The market is climbing slowly toward neutral territory, and prices are beginning to stabilize.

Market forecast for 2023

With inventory increasing, multiple bid scenarios cooling, and final offers clocking in at or under list price rather than soaring over, the market across the nation looks very different than it did just months ago. Considering all the buzz, you may wonder: is there any concern that the Southern California market will crash?

It’s unlikely. The California market, especially in resort-style places like Hermosa Beach, has always been strong and will continue to command high prices and competition. That said, the market is set to move from the seller’s stronghold of earlier this year into neutral territory. Experts project California home sales will drop due to the rising interest rates, which (as of this writing) are double where they were in January 2022. If you have cash in hand, 2023 is shaping up to be the year to buy.

Why you should work with a real estate agent

There are many benefits of working with a reputable real estate agent who will help you navigate the upcoming market shift. If you are currently buying or selling in the Hermosa Beach market, or plan to over the next year, seek a savvy agent to guide you through the process. Working with an expert agent is always smart, but this relationship is more important now than ever, considering the recent and anticipated market fluctuations.

From saving money and time to finding your dream property and negotiating a lucrative deal for your current home, your agent can transform your real estate experience from humdrum to highly successful. Agents not only have unprecedented access to listing services and off-market properties, but they also have incredible local knowledge. Your agent can navigate complex contracts and closing paperwork easily, and because they are bound by fiduciary duty, you will feel confident relying on their expertise.

If you are selling your Hermosa Beach home, your agent can advise you on the critical staging process and strategize the most compelling list price, guaranteeing a successful sale.

Are you interested in Hermosa Beach real estate? A Southern California native, Terri is at your service to add expertise, value, and stability to your homeownership journey. Contact Terri Dunn today and begin exploring Hermosa Beach homes for sale.

*Header photo courtesy of Shutterstock

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