September South Bay Snapshot: Stable Prices, More Negotiating Room

The South Bay housing market has remained “remarkably resilient” despite higher mortgage rates and economic uncertainty, according to the Scherb Homes Group’s September 2026 market update. Prices are generally stable to modestly higher, inventory has become more balanced, and buyers are gaining negotiating leverage without the broad price deterioration of a major downturn.

The headline numbers: a median sold price of $1,291,600, 3.4 months of inventory, a median of 38 days on market, and homes selling at 99.8% of their original list price. The 30-year mortgage rate in the snapshot stood at 6.97%.

City by city, the coastal cities are leading: Manhattan Beach and Hermosa Beach are both up about 6.2% year over year, with median list prices around $5.45 million and $2.45 million respectively. Redondo Beach is up 2.9% year over year, with about 122 homes available, a $1.499 million median list, and 43 median days on market. Torrance is up 2.2%, with 178 homes listed and a median list of about $894,000. Rancho Palos Verdes and Rolling Hills Estates sit closer to flat, at about +1% each.

The report flags a clear pattern: roughly a third to 40% of active listings in most cities have taken price reductions, and median days on market have climbed from June levels in many areas. Buyers have more negotiating room than during the fastest parts of 2024 and 2025 — especially on homes sitting 30-plus days — while sellers are being rewarded for correct initial pricing and punished for starting too high.

For South Bay sellers, the practical message is that it’s a property-by-property market now: price, location and condition are determining outcomes more than broad trends. For buyers, aging and reduced listings are where the leverage is — the best homes still move fast, but the overpriced ones are sitting.

Source: Scherb Homes Group — https://www.scherbhomes.com/news/south-bay-real-estate-market-update-september-2026

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