After years of helping buyers navigate the South Bay, I can tell you that 90505 continues to be one of the most rewarding zip codes to buy in — and one of the least forgiving if you show up unprepared. Here is what you need to know heading into May 2026.
Before you fall in love with a single listing, lock in your financing. The 30-year fixed mortgage rate is sitting at 6.4% right now, which means your monthly payment on a $1.60M home looks very different depending on your down payment and loan structure. I always recommend buyers work through a full budget analysis before we tour anything. Closing costs, property taxes, and HOA fees (where applicable) add up quickly in this price range. A rock-solid pre-approval letter from a reputable lender is not just helpful here — it is expected by sellers.
This market is moving fast and buyers need to respect that. The median sale price in 90505 is $1.60M, and homes are going under contract in a median of just 16 days. Our current competition score is 86 out of 100, which places this firmly in seller's territory. What that means practically is that well-priced homes in desirable pockets of the 90505 zip code are not sitting around waiting for you to schedule a second showing. If a home checks your boxes, we need to move with urgency and intention.
With a competition score of 86 and homes moving in 16 days, the strategy I use with my buyers goes beyond just the offer price. We look at the full picture: escalation clauses when appropriate, shortened contingency timelines, flexible close dates that work for the seller, and a clean, well-presented offer package. A compelling personal letter can still make a difference in the right situation, but strong terms will always do the heavy lifting. I work closely with each buyer to build an offer that is competitive without being reckless.
Once your offer is accepted, we typically move through inspections, appraisal, and final loan approval within the contingency windows we negotiated. In a market like 90505, buyers who stay responsive and organized close smoothly. Plan for closing costs in the range of 1% to 2% of the purchase price on top of your down payment. I walk every client through the closing disclosure line by line so there are no surprises at the table.
Ready to buy in 90505 this spring? I would love to help you build a strategy that actually works in this market. Reach out to Tony Kim at Compass to get started.
Questions about 90505?
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