The BHAUS EIGHT May 2026 Newsletter

Hello,

The South Bay is still one of the strongest luxury/coastal submarkets in LA County. Inventory has improved slightly versus the ultra-tight 2021–2023 period, but demand for well-located homes near the beach remains high. The market is behaving differently by price tier:

• Under - $2MM: still very competitive, especially for updated condos, townhomes, and smaller single-family homes

• $2MM - $4MM: selective but active - turnkey homes move quickly

• $5MM+: more negotiation leverage for buyers, longer marketing times

Mortgage rates remain the main pressure point, but constrained coastal inventory continues supporting prices. The South Bay remains competitive despite some softening at higher price points.

📣 Our Team NEWS!!!!

We are happy to share that we are now Palos Verdes Peninsula Specialists and have joined the Palos Verdes Peninsula Association of Realtors in addition to our membership with the SouthBay Association of Realtors. More to come on all the intricacies of buying and selling in the PV Peninsula, as we cater to our clients who are looking to buy or sell in Rolling Hills, Rolling Hills Estates, Palos Verdes Estates, and Rancho Palos Verdes.

Make sure you tune into our new YouTube channel, https://www.youtube.com/@BhausEightRealEstate, to view our home tours and have an insider’s view into all new listings as soon as they hit the market!

In this month’s Newsletter…

• BHAUS EIGHT Properties showcases our new listings across our markets (Sold, In Escrow, Active)

  • 🆕 Off Market Condo in Torrance ~ more details to come

• The Southbay Real Estate section has insights on our local market, and tips on how sellers and buyers can each benefit from this market

• Home Stats by City

• 🆕 BHAUS Edit

  • More insights into our local South Bay market

    • Have you followed us yet? make sure you are following us on Instagram and/or Facebook to get updates that are not sent to our mailing list! These updates include Open Houses, quick stats, inspiration for your home and your travels, as well as our exciting house viewings!

SouthBay Real Estate.

What’s happening?

Manhattan Beach continues to operate almost like its own micro-market within LA. Ultra-limited land, elite schools, and executive buyers from tech, finance, entertainment, and startup sectors keep demand structurally high.

Current Trends:

• Strand and Sand Section homes still command huge premiums

• East Manhattan Beach has seen more buyer activity from families seeking slightly better value

• New construction inventory remains limited

• Homes that are remodeled and priced correctly still move relatively quickly

• Buyers are negotiating harder on homes perceived as “aspirationally priced

Hermosa Beach is staying surprisingly resilient given the higher-rate environment

Current market dynamic:

• Well-updated homes near the beach are still competitive

• Homes needing work are sitting longer

• Tight inventory is helping stabilize pricing.

• The smaller housing stock creates scarcity.

• Walkability and beach lifestyle continue attracting younger affluent buyersRedondo is the broadest and most diverse market of the three, which makes it attractive for both families and buyers priced out of Manhattan/Hermosa

Notable trends in South Redondo Beach:

• Rising inventory

• Slightly longer days on market

• But still positive pricing trends overall

Overall, the South Bay remains fundamentally supply-constrained and lifestyle-driven, which is why pricing has stayed resilient compared with many broader LA markets. The market isn’t “hot frenzy” like 2021, but it’s still structurally strong coastal real estate

Home Stats by City.

BHAUS Edit

A little insight into the beach cities …

Who is buying in the South Bay? How is the buyer profile in Manhattan Beach?

In Manhattan Beach, the buyer profile fits those who are “move-up” families, high-income professionals, cash or large down payment buyers, and long-term holders rather than speculators.

What are the best performing segments in Hermosa Beach? Buyers are loving modern townhomes, ocean-view properties, and “walk-street” lifestyle homes that can be somewhat more affordable than Manhattan Beach walkstreets.

What are some of the difference between North and South Redondo Beach?

South Redondo is more coastal, it has a stronger appreciation, and has a more lifestyle-driven demand. While North Redondo has much more townhome inventory (a lot of 2-on-a-lot type of properties, somewhat better relative value, and family-oriented buyers.

Contact your BHAUS EIGHT team with any comments or questions!

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From BHAUS to yours.