How Lower Interest Rates Are Resetting the South Bay Real Estate Market

Lower mortgage rates are shifting the South Bay real estate landscape as we close out the year. Momentum is moving fast, and the Beach Cities including Manhattan Beach, Hermosa Beach, and Redondo Beach are seeing immediate changes. Buyers are re-engaging, sellers are recalibrating, and the entire market is tightening.

Rates Are Dropping and Demand Is Rebuilding

Mortgage rates have settled into the mid 6 percent range. In high-value coastal markets, even a small rate pullback creates meaningful lift. Here is what we are already seeing:

• Improved affordability for qualified buyers

• Shorter days on market

• More showings and stronger buyer intent

• Stabilizing pricing across the Beach Cities

This is the early stage of a new market cycle.

Buyers Have a Short-Term Advantage

Buyers finally have leverage, but it will not last.

• Affordability is improving as rates ease

• Competition is noticeably lighter than spring and summer

• Motivated sellers want to wrap up transactions before year-end

• Negotiation strength sits with prepared buyers right now

When rates drop again, demand will spike and pricing will firm up. Acting now is the smarter move.

Sellers Are Well Positioned

Lower rates are expanding the buyer pool and bringing momentum back into the South Bay. Sellers benefit directly from this shift.

• More qualified buyers entering the funnel

• Pricing stability in Manhattan Beach, Hermosa Beach, and Redondo Beach

• Turn key homes outperforming the rest

• Low inventory continuing to support value for strong listings

Listings that are properly positioned will capture this renewed demand quickly.

Why Q4 Matters

Late-year always exposes opportunity. Buyer traffic slows, but seller motivation increases. Add easing mortgage rates into that equation and buyers looking in Manhattan Beach, Hermosa Beach, or Redondo Beach have a clean window to secure value before the spring surge.

South Bay Market Snapshot

• Manhattan Beach median price near 3.4 million and stabilizing

• Hermosa Beach and Redondo Beach showing faster absorption and fewer price reductions

• Rate improvement accelerating buyer confidence

Bottom Line

Rates are easing, demand is increasing, and the Beach Cities are tightening. Buyers have a rare moment of leverage, and sellers benefit from renewed seriousness in the market. If you are planning a move in Manhattan Beach, Hermosa Beach, or Redondo Beach, now is the time to act before momentum shifts again.