South Bay Housing Market Q2 2025 | Hermosa to Torrance

Prices, Trends & Neighborhood Insights for Hermosa, Manhattan, Redondo & Torrance

The South Bay housing market remained strong in Q2 of 2025, with some areas seeing impressive price appreciation while others adjusted to evolving buyer behavior. From ocean-view estates in Manhattan Beach to entry-level condos in Torrance, here’s a neighborhood-by-neighborhood breakdown of what's happening across this highly desirable coastal region.

📊 South Bay Market Snapshot (Q2 2025)

📍 Area-by-Area Spotlights

🔹 Hermosa Beach

• Sand Section: Still commands the highest price per square foot in the city at $1,565, with a strong 99.1% SP/LP ratio. End-users dominate, but investors remain active along The Strand.

• East Hermosa: At $1,120/sq ft, this area attracts first-time buyers and move-up locals. Homes are moving quickly, with a 99.3% SP/LP ratio, showing high demand at attainable price points.

🔹 Manhattan Beach

• Tree Section: Families continue to flock here for charm, walkability, and access to parks and schools. Prices are holding steady at $1,924/sq ft, with a 100.7% SP/LP ratio — one of the highest in the South Bay.

• Hill Section: With more inventory and ocean-view appeal, homes here sell at an average $1,554/sq ft and 98.7% SP/LP ratio. This section attracts discerning buyers who value privacy and vistas.

🔹 Redondo Beach

• North Redondo: Popular among young professionals and tech commuters, this inland zone offers value, proximity to freeways, and newer construction.

• South Redondo: Ocean-view properties remain a hot ticket, reflected in the 99.8% SP/LP ratio. Buyers are drawn to the walkability and beachside lifestyle.

🔹 Torrance

• West Torrance: Still led by school district demand, this area is highly competitive and family-focused.

• Old Torrance: A stable and charming historic district with a median price of $900K, 99.9% SP/LP ratio, and an average 32 DOM.

• Walteria: A sleeper hit with strong buyer interest. Homes average $865/sq ft, sell in 49 days, and close at 100% of list. The area offers parks, trails, and neighborhood feel with easy access to the coast.

💡 Tips for Buyers & Sellers

🔑 For Buyers

1. Get Pre-Approved: Lenders familiar with South Bay inventory are a must.

2. Act Quickly: Most homes sell in under 30 days — be ready.

3. Make Strong Offers: We’re still in a seller-favorable market in many areas.

4. Work with a Local Expert: A knowledgeable agent will help you navigate neighborhood nuances and off-market opportunities.

📦 For Sellers

1. Strategic Pricing: Don’t overreach — strong pricing leads to multiple offers.

2. Professional Presentation: Invest in staging, photos, and virtual tours.

3. Timing Matters: Q2 showed continued strength — leverage peak seasons.

4. Marketing Excellence: Tap into digital and social media reach, especially for high-end or view homes.

📈 Investment Perspective

🔒 Long-Term Strength in the South Bay

The South Bay continues to be one of Southern California’s most resilient real estate markets. With steady appreciation, strong buyer demand, and lifestyle appeal that transcends market cycles, this region remains a smart long-term investment.

💹 Historical Growth

Over the past 10 years, South Bay real estate has appreciated by an estimated 95% to 115%, depending on the neighborhood and property type. This growth has been driven by both fundamental supply constraints and lifestyle demand, making the market less volatile than many inland areas.

🔑 Key Investment Factors – South Bay

✅ Limited Supply + Coastal Geography Constraints
From El Segundo to Palos Verdes, the South Bay offers very little new buildable land. Coastal commission oversight, height restrictions, and strict zoning limit development—especially near the water—keeping inventory low and competition high.

✅ Proximity to LAX, Tech, and Entertainment Hubs
Just minutes from Silicon Beach, SoFi Stadium, SpaceX, and LAX, the South Bay appeals to professionals across tech, aerospace, and entertainment. Its central location adds long-term value for both primary residences and second homes.

✅ Remote Work + Lifestyle-Driven Moves
Post-pandemic, more buyers are prioritizing walkability, beach access, and community life. Towns like Hermosa, Redondo, and Manhattan offer the perfect blend of remote work convenience and laid-back luxury.

✅ Generational Wealth Transfer + Equity-Backed Buyers
Even in higher rate environments, many buyers are leveraging family wealth, real estate equity, or stock-based comp packages—especially from tech and finance—driving demand for desirable properties.

✅ Strong Short-Term + Long-Term Rental Demand
While STR regulations vary by city, furnished and long-term rentals remain in high demand—especially in beach-close neighborhoods. Premium rents are common in areas with ocean views and walkability to shopping, dining, or the Strand.

✅ Infrastructure & Quality of Life Investments
South Bay cities have prioritized quality of life improvements like new parks, bike paths, and public space enhancements. Redondo’s waterfront revitalization and Hermosa’s downtown upgrades are attracting lifestyle buyers. Future infrastructure like the Metro C Line extension may further boost commuter access.

✅ Out-of-Area + International Demand
The South Bay sees strong interest from buyers relocating from San Francisco, New York, and abroad—particularly those seeking second homes or returning from overseas.

✅ Recession-Resilient Market History
In past market downturns, prime South Bay neighborhoods—like the Manhattan Hill Section, Sand Section, and Redondo’s Avenues—held their value thanks to their location, prestige, and limited turnover. That trend continues today.

📌 Frequently Asked Questions – South Bay Real Estate Q2 2025

🔹 What is the average home price in the South Bay in Q2 2025

🔹 How competitive is the South Bay market right now?

🔹 Which neighborhood in Manhattan Beach is best for families?

🔹 Are Hermosa Beach oceanfront homes a good investment?

🔹 Is now a good time to sell in Redondo Beach?

💬 Thinking of Buying or Selling in the South Bay?

I’ve helped clients navigate all types of South Bay transactions — from beachfront investments to family home transitions. Let’s talk about your goals and map out your next move.

📞 310-698-6444 | 📧 [email protected]
🏡 Serving Hermosa, Manhattan, Redondo, Torrance, and beyond.