Torrance Market Update - May 2022

How's the market? I get asked this question a lot, especially lately, since it seems the real estate market is changing. It's too early to see the trend, so please contact us for your area update or your home market evaluation. We'll also be posting monthly and quarterly updates here.

Below are stats for last month compared to a year ago.

Data for single family homes only; based on CRMLS

Home sales were strong in Torrance last month, with just a 9 fewer homes sold. Average sold house price was 28% higher as compared to May '21; the median price also went up.

As of today, 94 houses are listed for sale in Torrance; the average listed price is $1,379,307; median is $1,232,000.

Benefits of Buying a Home

Benefits of buying a home. Purchasing a home can bring many benefits, not just financial but also emotional. South Bay real estate offers a wide range of homes, from oceanfront condos and houses to more affordable entry level homes.  Let us help you find your South Bay home for sale and start your equity building journey.  Call (310)918-5027 or click the link to send us a note - Contact us and we'll get back to you right away!

1. Home ownership can be a source of pride and happiness 

2. It will enhance the sense of community pride

3. It will contribute to your long term financial stability

4. It can grow your wealth

When you purchase a house, it becomes more than just a space you occupy. It’s your stake in the community, an investment, and a place you can put your stamp on.

If you’re thinking about buying a home this year, here are some of the benefits you’ll experience when you do.

The Emotional Benefits of Homeownership

Because it’s a place that’s uniquely yours, owning a home can give you a sense of pride and happiness in several ways.

Your Home Can Reflect Your Tastes and Personality

Investopedia puts it like this: “One often-cited benefit of homeownership is the knowledge that you own your little corner of the world.”

That knowledge can lead to a powerful, emotional connection to the place where you live. But so can the realization that your home will grow with you. Because it’s yours, you have the freedom to make updates to it as your needs and tastes change. As Logan Mohtashami, Lead Analyst for HousingWire, says: “The psychology is that this is yours and you’re going to make it as good as possible because you’re in for a long time, . . . “

And that can create a greater sense of ownership, pride, and connection with your home and your community.

It Can Enhance Your Neighborhood and Civic Engagement

Homeownership can lead you to get even more involved with your local area. After all, you’re putting your roots down in a location and will want to do what you can to help improve it, much like your home. In a recent report, the National Association of Realtors (NAR) says:

“Living in one place for a longer amount of time creates and [sic] obvious sense of community pride, which may lead to more investment in said community.”

The Financial Benefits of Homeownership

When you choose to become a homeowner, you’re making a financial decision as well. That’s because your home is also an investment.

It Can Help You Feel Financially Stable

Homeownership is truly one of the best ways to improve your long-term financial position. Not only will you have a predictable monthly housing expense that can benefit your budget in the short term, but you’ll also gain equity as your home appreciates in value and you make your monthly mortgage payment. As Freddie Mac says:

“Building equity through your monthly principal payments and appreciation is a critical part of homeownership that can help you create financial stability.”

It Can Grow Your Wealth

Because of your growing equity, you can build your net worth as a homeowner. And when you compare the difference in net worth between a renter and a homeowner, it’s clear that owning a home truly offers a great way to build your long-term financial position.

According to the latest data from NAR, the median household net worth of a homeowner is roughly $300,000, while the median net worth of renters is only about $8,000. That means a homeowner’s net worth is nearly 40 times that of a renter.

Buying a home is truly a way to find greater satisfaction and happiness and to build financial freedom. If you're thinking buying a home, Contact us - your local South Bay real estate professionals to begin the process today.

Impact of Rising Home Values - Good News for Homeowners

If you’re planning to sell your Torrance South Bay CA home this season, rising prices are great news for you. But it’s important to understand why prices are rising to begin with. One major factor is supply and demand.

Anytime there are more buyers for an item than there are of that item available, prices naturally rise. In those situations, buyers are willing to pay more to get the product or service they’re looking for when options are scarce. And that’s exactly what’s happening in the current real estate market.

Selma Hepp, Executive, Research & Insights and Deputy Chief Economist at CoreLogic, puts it like this:

“With so few homes, buyers are once again left with fierce competition that’s driving the share of homes that sold over the listing price up to 66% . . . With the continued imbalance between supply and demand, home prices are likely to have another year of strong gains and are expected to average about 10% growth for the year.”

Because it will take some time for housing supply to increase, experts believe prices will continue rising. The latest Home Price Expectations Survey forecasts what will happen with home prices over the next 5 years. As the graph below shows, while the rate of appreciation will moderate over the next few years, prices will continue rising through 2026:

What This Means When You Sell Your House

If you’re a Torrance or South Bay homeowner, the projection for continued price appreciation this year opens up an opportunity to move. That’s because it may give your equity a major boost. Equity is the difference between what you owe on your house and its market value. The amount of equity you have increases as you make your monthly payments and as rising home prices drive up the market value for your home.

Growing equity is a powerful tool for homeowners. When you sell your house, the equity you’ve built comes back to you in the sale. That money could be enough to cover some (if not all) of your down payment on your next home.

Of course, if you want to know how much equity you have in your current house, it’s crucial to work with a real estate professional. They follow current market trends and can help you understand your home’s value when you’re ready to sell.

What This Means for Your Next Home Purchase

But today’s rising home values aren’t just good news if you’re ready to sell. Because price appreciation is forecast to continue in the years ahead, you can rest assured your next home will be an investment that should grow in value with time. That’s one of several reasons why real estate has been rated the best investment in a recent Gallup poll.

If you’re weighing whether or not you should sell your house this season, know rising home values may be opening up an opportunity to use equity to fuel your move.

Contact us - local real estate advisors - call (310)918-5027 to find out how much your home is worth and to learn more about all the benefits you have in today’s market. Or click below for an  Instant Torrance or South Bay CA home evaluation.

Redondo Beach Real Estate Update March '22

Redondo Beach real estate market is tight with higher home prices, lower sales due to the very low inventory. The homebuyer demand continued to exceed the supply of houses and condos.  It resulted in sellers receiving multiple offers and pushing prices up. Another contributing factor were low mortgage interest rates and expectations of several rate increases throughout 2022. The cost of real estate is increasing. Total of 33 single family homes were sold in March, compared to 41 a year ago. Median price was $1,630,000 compared to $1,475,000 a year ago (11% increase). The average sold price was $1,929,340 vs $1,579,106 in March 2021 which represents a 22 percent price increase. Below are market details (single family homes only; data based on CRMLS):

Redondo Beach California real estate is projected to continue to grow but at a slower pace. The low inventory, homeowners staying put, will continue to push home prices up. The one unknown is the real impact of rising mortgage rates which would reduce the homebuyers ability to buy in their price range.

Real estate is local - every neighborhood or community is different.  If you're considering selling your home, Contact us and we'll provide you with a free local market report and free home evaluation. Call (310)918-5027 to set up a no-obligation consultation. 

Torrance CA Real Estate Market Update March '22

Torrance CA real estate market data reflects the continuing seller's market.  Low inventory (the inventory of homes for sale is now even lower than a year ago) and home buyers trying to take advantage of low interest rates before the Fed hikes, create the imbalance between demand and availability resulting in multiple offers and rising prices. 

As outlined below, home prices in Torrance real estate increased by 11% and 13%,  average and median sold prices respectively , for single family homes (houses).

Data for single family homes only; based on CRMLS

Real estate is local - every neighborhood or community is different.  If you're considering selling your home, Contact us and we'll provide you with a free local market report and free home evaluation.

Call (310)918-5027 to set up a no-obligation consultation; Click below to get INSTANT TORRANCE HOME EVALUATION:

Torrance CA Real Estate Market Update March '22

Why Downsize To a Smaller Home?

Why Downsize To a Smaller Home? In what situation would it be advantageous to sell your house and buy a condo or a smaller house?

Life events can have a major impact on what you need from your home, and retirement is one of the biggest changes many of us face. This period of your life can mean doing more of the things you enjoy, like traveling, visiting with loved ones, or taking on new hobbies. But what does that mean for your home?

If you’re looking for ways to focus more on the important things in your life, the answer could be downsizing. A recent article from The Balance talks about why it could be a great option, saying: “There are many reasons to buy a smaller home—or to downsize from your present home—but sometimes, the idea that “less is more” is what propels homeowners to buy a smaller home.”

You Can Find the Right Home for Your Needs

The 2022 Home Buyers and Sellers Generational Trends from the National Association of Realtors (NAR) provides more information on why people of retirement age choose to move. It shows the need for a smaller home, the desire to be closer to loved ones, and retirement itself as three of the top reasons homebuyers over the age of 55 make a move.

If you’re in this group, changing priorities may be top of mind for you today, and that could be driving your decision to downsize. After all, as your lifestyle changes, what you need in your home likely changes, too.

Plus, as The Balance notes, moving into a smaller home can open your schedule up even more. When you downsize, you can spend less time maintaining your home and more time with the people you love or exploring newfound hobbies. That’s a recipe that can lead to less stress and increased happiness.

Your Equity Can Make a Big Impact When You Downsize

Home equity plays a big role when you sell your existing house and move. It could be a great tool to use to help you downsize. According to the latest Homeowner Equity Insights report from CoreLogic, the average homeowner gained about $55,300 in equity over the past 12 months. Dr. Frank Nothaft, Chief Economist at CoreLogic, explains how important price appreciation and equity gains are for existing homeowners:

“Home prices rose 18% during 2021 in the CoreLogic Home Price Index, the largest annual gain recorded in its 45-year history, generating a big increase in home equity wealth, . . . For low- and moderate-income homeowners, home equity has historically been a major source of wealth.”

As home prices rise, your equity does, too. So, you may have more equity than you realize because of the record levels of home price appreciation over the past year. Those equity gains could allow you to make a larger down payment on your next home. And putting more money down can lead to a smaller monthly mortgage payment, which can give you greater financial freedom. It can also be a significant help in navigating today’s competitive housing market, since offering more money up front could help your offer stand out.

Contact us today and we will help you to find the best option in your situation.

If you're an active senior and would like to move into one of our beautiful South Bay 55+ communities, you found the right place and senior experts.  Click below to view the South Bay, Torrance, Redondo Beach and Palos Verdes senior 55+ communities.  

South Bay 55+ Communities and Condos For Sale

Another downsizing options would be a smaller single story home as you approach retirement.

Single Story Houses For Sale

Why Buy a Condo?

Why Buy a Condo? If you’re a first-time buyer looking enter the housing market but struggling to find a home to buy, condominiums could be a great alternative for you. 

Many active seniors prefer a 55+ condo in our South Bay 55+ communities when deciding to downsize and enjoy the maintenance free lifestyle.  

Whether you're looking for your first home or downsizing, Contact us and we'll find you the right South Bay condo.

Find Your New South Bay Condo Here

Below we explore reasons condos may be an option to consider when looking for a homes:

Exploring Condos Could Add Options That Fit Your Budget

Supply challenges are a reality across the board in today’s housing market. Broadening your home search to include condos could increase your overall pool of options. Just keep in mind, condos generally differ from single-family homes in average space and floorplans.

In a recent article, Bankrate covers some of these differences:

“Condos are generally more affordable because they come with less space — you likely won’t have your own backyard, for example, and the interior tends to be smaller than the square footage of a single-family home.”

But if the size of a condominium meets your needs, they could match your budget as well. So, if budget is top of mind for you, a condominium could be a great fit within your target price range.

Buying a condo is a great way to break into the market and start building equity that can help power a future move up. The condo you purchase today may not be your forever home, but it can be a great stairstep that can help you buy your dream home later on.

Owning and living in a condo is also a lifestyle choice.

While it’s true they may be smaller than single-family homes, the amenities condos provide could be a draw for many buyers. Less space in your home might mean minimal upkeep, lower maintenance, and more time for you to spend doing the things you enjoy.

To understand if condo life is for you, Bankrate recommends asking yourself a few simple questions: “Hate to mow the lawn and trim the hedges? What about pressure washing your driveway? Are your finances such that having to lay out $5,000 or more for a new roof will be a burden? . . . Condos tend to work best for those comfortable with most of the aspects of apartment living, minus the built-in maintenance.”

Ultimately, talking with an expert real estate advisor is the best first step to determining if condo living might work for you.

Summary:

Condominiums are a great option for many buyers, especially those looking to buy their first home. If you’re willing to consider condos in your search, you could find something that’s in line with your target numbers and your needs. To learn more, reach out to a trusted real estate professional with expertise in the condo-buying process.

Call (310)918-5027 for expert advise.  We'll be happy to help!

Below are shortcut links to help you find a new condo in a specific South Bay area:

Torrance Condos For Sale

Redondo Beach Condos For Sale

San Pedro Condos For Sale

Palos Verdes Condos For Sale

Manhattan Beach Condos For Sale

Benefits of Owning a Home

The past two years have taught us the true value of homeownership, especially the stability and the feeling of accomplishment it can provide. But homeownership has so much more to offer. Here’s a look at a few of the non-financial and financial benefits of owning a home. If you’re looking to buy a home today, think about all the ways homeownership can impact your life.

Homeownership Has Impactful Personal and Emotional Benefits

Owning your home gives you a significant sense of pride because it’s a space that is truly yours. And as a homeowner, you can customize your home to your heart’s desire. Having a space you’ve put your stamp on enhances the pride and sense of ownership you may feel.

And that sense of ownership can extend beyond your shelter to help create social, community, and civic benefits as well. That’s because the average homeowner stays in their home for longer than just a few years. That means you’ll naturally feel a stronger connection to the community around you the longer you live there. This can help you experience a greater sense of belonging and a greater stake in your community as a whole. As the National Association of Realtors (NAR) says:

“Living in one place for a longer amount of time creates an obvious sense of community pride, which may lead to more investment in said community.”

Owning a Home Is a Significant Step Toward Financial Stability

In a financial sense, homeowners benefit from home price appreciation, equity gains, and having a shield against some of the effects of inflation. These benefits can have a big impact on your life. As you gain equity through home price appreciation and paying down your mortgage, you build your net worth. And in times of inflation, your 30-year fixed-rate mortgage can help you stabilize one of your largest monthly expenses for the duration of your loan.

Lawrence Yun, Chief Economist for NAR, explains how you can start to see these lasting effects of homeownership as soon as you make your purchase:

“Owning a home continues to be a proven method for building long-term wealth. . . . Home values generally grow over time, so homeowners begin the wealth-building process as soon as they make a down payment and move to pay down their mortgage.”

Knowing you’ve made a good investment soon after your purchase is powerful. And that may give you confidence in your decision to buy a home.

Bottom Line

The benefits of owning a home are foundational. As a homeowner, you can feel proud of the space you call home and know you’ve made a sound financial investment. To learn how homeownership can help you, contact a local real estate advisor - Krystyna Ryan at (310)918-5027 to start the conversation today.

Find Your New Home Here

Redondo Beach Market Update January '22

Redondo Beach real estate market is hot with higher home prices, lower sales due to the very low inventory. The homebuyer demand continued to exceed the supply of houses and condos.  It resulted in sellers receiving multiple offers and pushing prices up. Another contributing factor were low mortgage interest rates and expectations of substantial rate increases throughout 2022. Total of 10 single family homes were sold in January 2022, 60 percent decrease compared to 2021. Median price was $1,448,660 compared to $1,1,350,000 a year ago (7% increase). The average sold price was $1,671,632 vs $1,347,628 in January 2021 which represents a 24 percent increase. Below are market details (single family homes only; data based on CRMLS):

Redondo Beach California real estate is projected to grow at a slower pace. The low inventory, homeowners staying put, will continue to push home prices up. The one unknown is the real impact of rising mortgage rates which would reduce the homebuyers ability to buy in their price range.

Real estate is local - every neighborhood or community is different.  If you're considering selling your home, Contact us and we'll provide you with a free local market report and free home evaluation. Call (310)918-5027 to set up a no-obligation consultation. 

Torrance Real Estate Market Report January '22 

Torrance CA real estate market was still tight last month, with higher home prices, low inventory, bidding wars. Property prices reached new highs and more buyers have been priced out of the market. The mortgage rates inched up but still are historically low which is helping buyers' affordability a bit.

Total of 48 single family homes were sold in January, 17 percent fewer than a year ago. Median sold price was $1,040,000 compared to $925,000 in January 2021. Below are market details (single family homes only; data based on CRMLS):

Torrance California real estate is projected to continue to feature increasing prices and low inventory. The rising mortgage rates may slow the price growth however. Stay tuned for future reports or contact us for details.

Real estate is local - every neighborhood or community is different.  If you're considering selling your home, Contact us and we'll provide you with a free local market report and free home evaluation. Call (310)918-5027 to set up a no-obligation consultation.