South Bay Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Jan. 15, 2022

Torrance Real Estate Market Report for 2021

Torrance Real Estate Market Report 2021 vs. 2020

Torrance market report

 

Torrance CA real estate market was characterized by higher home prices and increased sales. 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 rate increases in 2022.

Total of 952 single family homes were sold in 2021, 23 percent increase on y-o-y basis. Median price was $1,037,000 compared to $899,450 a year ago. Below are market details (single family homes only; data based on CRMLS):

 

  2021 2020         
No. of Sales 952 774 +23%
Median Price $1,037,000 $899,450 +15%
Average Price $1,074,890 $943,340 +14%
Days on Market 15 21 -6 days

Torrance California real estate is projected to quite similar in 2022.  The low inventory, homeowners staying put, will continue to push home prices up.  

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. 

Jan. 11, 2022

South Bay Real Estate Market Report for 2021

South Bay Real Estate Market Report for 2021

South Bay real estate market

South Bay real estate recorded increased home values and sales in 2021. Below are selected real estate market reports for major markets in South Bay CA and Beach Cities. Below you'll find property listing and selling data in real time - click on provided links to see current listings and sold homes in last 3 months (all info is based on CRMLS; single family homes only). You may create your own market report, save and receive email update.

 Contact us for your Free Home Evaluation.  Call (310)918-5027 today. We'll be happy to help!

REDONDO BEACH

414 single family were sold in Redondo Beach last year. Average selling price was $1,672,238; median sold price was $1,5M, average days on the market 20 days. Number of sales went up by 23% as compared to the previous year; Median price went up by 12 percent, Average sold price went up by 9 percent.

Redondo Beach Market Report 

TORRANCE

952 single family homes were sold in Torrance in 2021 compared to 774 homes sold in 2020 - 23 percent increase. Average sold price was $1,o74,890 compared with $943,340 a year ago, which represents a 14 percent price increase.  Median selling price was $1,037,000 - 15 percent higher than a year ago ($899,450); average days on market - 15 vs 21 days in 2020.

Torrance Market Report

SAN PEDRO

Total of 409 single family homes were sold in San Pedro in 2021 compared with 353 sales a year ago, which is a 16 percent increase. Median sales price was $870,000 vs $756,000, which represents a 15 percent increase y-o-y. Average sold price was $935,033 vs. $779,893 a year ago - 20% price increase. It took 11 days fewer to sell a house (21 days vs 32 days in '20)

San Pedro Market Report

These are samples of real estate market reports for some South Bay markets.  

Every neighborhood is different. If you're thinking about selling your home, please contact us and we'll provide you with a Free market report for your home and area.

 

Posted in Market Updates
Jan. 7, 2022

Foreclosure Analysis for 2022

Foreclosure Analysis for 2022

Foreclosure Analysis for 2022. Can we expect foreclosures in 2022? Many potentials buyers here in Torrance and the beach cities have been asking this question a lot. The home values and prices in Torrance and surrounding South Bay communities have shot up so much that the "bubble" question pops up a lot. It does not look like we will have a foreclosure problem.  Here is why:

When mortgage forbearance plans were first announced and the pandemic surged through the country in early 2020, many homeowners were allowed to pause their mortgage payments. Some analysts were concerned that once the forbearance program ended, the housing market would experience a wave of foreclosures like what happened after the housing bubble 15 years ago.

Here’s a look at why that isn’t the case.

1. There Are Fewer Homeowners in Trouble This Time

After the last housing crash, over nine million households lost their homes to a foreclosure, short sale, or because they gave it back to the bank. Many believed millions of homeowners would face the same fate again this time.

However, today’s data shows that most homeowners exited their forbearance plan either fully caught up on payments or with a plan from the bank that restructured their loan in a way that allowed them to start making payments again. The latest data from the Mortgage Bankers Association (MBA) studies how people exited the forbearance program from June 2020 to November 2021.

Here are those findings:

38.6% left the program paid in full

19.9% made their monthly payments during the forbearance period

11.8% made up all past-due payments

6.9% paid off the loan in full

44% negotiated work-out repayment plans

29.1% received a loan deferral

14.1% received a loan modification

0.8% arranged a different repayment plan

0.6% sold as a short sale or did a deed-in-lieu

16.8% left the program still in trouble and without a loss mitigation plan in place

2. Those Left in the Program Can Still Negotiate a Repayment Plan

As of last Friday, the total number of mortgages still in forbearance stood at 890,000. Those who remain in forbearance still have the chance to work out a suitable plan with the servicing company that represents their lender. And the servicing companies are under pressure to do just that by both federal and state agencies.

Rick Sharga, Executive Vice President at RealtyTrac, says in a recent tweet:

“The [Consumer Financial Protection Bureau] and state [Attorneys General] look like they’re adopting a ‘zero tolerance’ approach to mortgage servicing enforcement. Likely that this will limit #foreclosure activity for a good part of 2022, while servicers explore all possible loss [mitigation] options.”

3. Most Homeowners Have More Than Enough Equity To Sell Their Homes

For those who can’t negotiate a solution and the 16.8% who left the forbearance program without a work-out, many will have enough equity to sell their homes and leave the closing with cash instead of facing foreclosures.

Due to rapidly rising home prices over the last two years, the average homeowner has gained record amounts of equity in their home. As Frank Martell, President & CEO of CoreLogic, explains:

“Not only have equity gains helped homeowners more seamlessly transition out of forbearance and avoid a distressed sale, but they’ve also enabled many to continue building their wealth.”

4. There Have Been Far Fewer Foreclosures Over the Last Two Years

One of the seldom-reported benefits of the forbearance program was that it allowed households experiencing financial difficulties prior to the pandemic to enter the program. It gave those homeowners an extra two years to get their finances in order and work out a plan with their lender. That prevented over 400,000 foreclosures that normally would have come to the market had the new forbearance program not been available. Otherwise, the real estate market would have had to absorb those foreclosures. Here’s a graph depicting this data:

foreclusure_data

5. The Current Market Can Easily Absorb Over a Million New Listings

When foreclosures hit the market in 2008, they added to the oversupply of houses that were already for sale. That resulted in over a nine-month supply of listings, and anything over a six-month supply can cause prices to depreciate.

It’s exactly the opposite today. The latest Existing Home Sales Report from the National Association of Realtors (NAR) reveals:

“Total housing inventory at the end of November amounted to 1.11 million units, down 9.8% from October and down 13.3% from one year ago (1.28 million). Unsold inventory sits at a 2.1-month supply at the current sales pace, a decline from both the prior month and from one year ago.”

A balanced market would have approximately a six-month supply of inventory. At 2.1 months, the market is severely understocked. Even if one million homes enter the market, there still won’t be enough inventory to meet the current demand.

Summary

The end of the forbearance plan will not cause any upheaval in the housing market. Sharga puts it best:

“The fact that foreclosure starts declined despite hundreds of thousands of borrowers exiting the CARES Act mortgage forbearance program over the last few months is very encouraging. It suggests that the ‘forbearance equals foreclosure’ narrative was incorrect. . . .”

Thinking about selling your South Bay home?  Contact us today for a Free / No obligation home evaluation. Find out what your home is worth in today's market.

home office

Dec. 18, 2021

Market Forecast for 2022

What will the real estate market be like in 2022?

Home prices will continue to rise due to the low inventory of homes for sale and strong buyer demand.

Experts are forecasting buyer demand will remain strong as people try to capitalize on rates and prices before they climb, creating another strong year for home sales.

Real estate is local - every market is different.  Contact me at (310)918-5027 or via email krystynarealestate@gmail.com for your South Bay neighborhood market update and current situation.

real estate market 2022 forecast

 

Posted in Market Updates
Nov. 8, 2021

Mortgage Interest Rates Historically

Mortgage Interest Rates Historically 

Mortgage rates are still historically low, still around 3% but slowly climbing. Experts project rates will rise further.

But as a homebuyer, what do rates above 3% really mean?

Today’s Average Mortgage Rate Still Presents Buyers with a Great Opportunity

Buyers don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. The graph below shows today’s rate in comparison to average rates over the last five years:

mortgage rates

As the graph shows, even though current rate is above 3%, it’s still incredibly competitive.

But today’s rate isn’t just low when compared to the most recent years. To truly put today into perspective, let’s look at the last 50 years (see graph below):

mortgage rates history view

When we look back even further, we can see that today’s rate is very low by comparison.

What does it mean if you're a buyer?

It’s important to realize, buying now still makes sense as experts project rates will continue to rise. And as rates rise, it will cost more to purchase a home. Rising mortgage rates, all else equal, will reduce your house-buying power. It will cost more per month for a borrower to buy a home.

In other words, the longer you wait, the more it will cost you.

 

Bottom Line

While it’s true today’s average mortgage rate is higher than just a few months ago, 3% mortgage rates shouldn’t deter you from your homebuying goals. Historically, today’s rate is still low. And since rates are expected to continue rising, buying now could save you money in the long run. 

Contact your local South Bay real estate expert - Krystyna Ryan - at (310)918-5027 to discuss your situation and help you find a home.

 

Aug. 16, 2021

How Home Values Appreciate Over Time

How Home Values Appreciate Over Time

When you hear the phrase home price appreciation, what does it mean to you? Through context clues alone, chances are you know it has to do with rising home prices. And as a seller, you know rising home prices are good news for your potential sale. But let’s look past the dollar signs and dive deeper into the concept. To truly understand home price appreciation, you need to know how it works and why it matters to you.

According to Investopedia:

“Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease in value over time.” 

When we consider this definition and how it applies to real estate, a few words stick out: supply and demand. In today’s Torrance California real estate market, we’re experiencing high buyer demand and very few sellers listing their homes for sale.

Anytime there’s more demand than supply, prices naturally rise. Same rule applies to the real estate market. It happens because buyers are willing to pay more to secure the scarce product or service they’re looking for. That’s exactly what’s happening in today’s real estate market, including South Bay and Torrance.  Buyers are competing with one another to purchase a home, leading to bidding wars that drive prices up. For sellers, the rising prices mean that opportunity is knocking.

According to Quicken Loans, the national average home price appreciation rate is between 3-5% in a typical year. Today, home prices are appreciating well beyond the norm thanks to high demand. Here are the latest expert projections on the rate of home price appreciation for this year (see chart below):

2021 Home Prices

Compared to the normal pace of 3-5% appreciation per year, the current average forecast of nearly 11.5% is significant.

For sellers, this means that with the current rise in prices, your house may be worth more than you realize. That price appreciation helps give your equity a boost. Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. It works like this (see chart below):

What Is Home Equity

You can use your built-up equity to power a move into your dream home, or you can put it toward life-changing goals like funding an education or opening a business.

But don’t wait. While price appreciation is strong now, those same experts say it’ll start to appreciate at a more normalized pace next year. If you list your house for sale sooner rather than later, you’ll be in a better position to capitalize on the higher-than-average home price appreciation we’re seeing right now.

If you’re thinking of selling your house or condo, there really is no time like the present. Right now may be the best time to sell your South Bay home.

Contact us to get an expert market analysis of your home and its potential. Call your South Bay real estate experts at (310)918-5027 for a Free consultation today!

July 7, 2021

South Bay Real Estate Market Update for 2nd Qtr 2021

SOUTH BAY REAL ESTATE MARKET REPORTS

Below are selected real estate market reports for major markets in South Bay CA and Beach Cities. Below you'll find property listing and selling data in real time - click on provided links to see current listings and sold homes in last 3 months (all info is based on CRMLS; single family homes only). You may create your own market report, save and receive email update, or Contact us for your Free Home Evaluation.  Call (310)918-5027 today!

South Bay CA Real Estate Market Report

REDONDO BEACH

122 single family were sold in Redondo Beach in the last quarter. Average listing price was $2, 565,206; average selling price was $1,653,228; avg price per sq foot was $890; homes stayed on the market 16 days on average.

Redondo Beach Market Report

TORRANCE

257 single family homes were sold in Torrance in last 3 months. Average listing price was $1,762,482; average selling price was $1,050,402; Average price per square foot was $676; average days on market - 14.

Torrance Market Report

MANHATTAN BEACH

128 single family homes were sold in Manhattan Beach in last 3 months. Average listing price was $3,501,162; Average sold price was $3,483,356; Avg price per sq ft - $1283; It took only 3 days on average to sell a house in Manhattan Beach,

Manhattan Beach Market Report

SAN PEDRO

98 single family homes sold in San Pedro in last three months. Average listing prices was $828,285; average selling prices was $862,720; average price per square foot was $584; It took on average only 15 days to sell a house in San Pedro in the last quarter.

San Pedro Market Report

This is a sample of real estate market report for some South Bay markets.  Every neighborhood is different. If you're thinking about selling your home, please contact us and we'll provide you with a Free market report for your home and area.

                                                                    Contact us

 

Posted in Market Updates
June 1, 2021

Downsizing Made Easy in California

Downsizing Made Easy in California

If your lifestyle has changed with time and you’re ready to trade the big house for a smaller, more manageable home, it might be time to downsize. Deciding to shift to a more care-free dwelling is easy – determining where to begin is much harder.

The accumulation of decades of living can feel overwhelming; taking the move step by step will help you break it down into manageable stages.

Before you do anything else, do your research and find the right location for your new home. Explore different communities and learn the pros and cons of each. While seniors often move to 55+ developments, there are also many other choices for low or no-maintenance homes. 

South Bay 55+ Homes For Sale 

Consider condominiums, townhouses, and patio homes as part of your research; many of these home styles can be found in areas that are not part of a 55+ community and often offer walking trails, fitness and aquatic facilities, and other active lifestyle amenities. In many areas, luxury high-rise buildings have become popular; many seniors enjoy living close to the amenities of a city, in a secure environment with a doorman. Watch the video below - it perfectly summarizes the senior community advantages. 

Contact us for a free tour of senior friendly communities in Torrance and South Bay. Call (310)198-5027 for more information and assistance 

Torrance CA offers many 55+ communities. The neighboring Redondo Beach or Palos Verdes would be another great option. Another option would be a condo or a townhouse with the HOA taking care of most of the maintenance. We have a worry free living option for every budget here in South Bay Los Angeles. 

Once you determine the new location, it’s time to sell your current home. Don’t let your accumulated “stuff” deter you. Clean out and utilize storage facilities for precious items you need to keep. Hire a professional moving company to pack up and move you to the new home (or ask your younger family members to help…make it payback for the times you helped your children move in and out of college dorms or apartments!). Make it easy on yourself! 

Moving out of a cherished family home can be an emotional decision, but the benefits of a low- or no-maintenance lifestyle can free up your time and energy so you have time to travel or just enjoy each day without the stress of managing a big home and yard. Make it easier by just taking it one step at a time.

If you're worried about new property taxes, no worries, new California law may allow you to keep your current tax base.  Call Krystyna at (310)918-5027 for more information 

May 24, 2021

Selling a House

Main Things To Remember When You're Selling Your House

selling a house

Today’s real estate market is full of unprecedented opportunities for home sellers. High home buyer demand paired with record-low housing inventory is creating the ultimate sellers’ market, which means it’s a great time to sell your house or condo. However, there are still some key things to know so you can avoid costly mistakes and win big when you make a move and sell your South Bay real estate.

Today’s sellers’ market might be your best chance to make a move. If you’re considering selling your South Bay house or condo, Contact us today. Let us help you navigate through the process and prioritize these key elements:

1. Price Your Property Right

When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Even in a sellers’ market, listing your house for the right price will maximize the number of buyers that see your house. This creates the best environment for bidding wars, which in turn are more likely to increase the final sale price. A real estate professional is the best person to help you set the best price for your house so you can achieve your financial goals.

2. Keep Your Emotions in Check

Today, homeowners are living in their houses for a longer period of time. Since 1985, the average time a homeowner owned their home, or their tenure, has increased from 5 to 10 years (See graph below):

homeowners_staying_longer

This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you purchased or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from that sentimental value.

For some homeowners, that connection makes it even harder to separate the emotional value of the house from the fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.

3. Stage Your House Properly

We’re generally quite proud of our décor and how we’ve customized our houses to make them our own unique homes. However, not all buyers will feel the same way about your design and personal touches. That’s why it’s so important to make sure you stage your house with the buyer in mind.

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage, clean, and declutter so they can visualize their own dreams as they walk through each room. A real estate professional can help you with tips to get your home ready to stage and sell.

 

 

 

Posted in Seller Tips
April 19, 2021

Benefits of Homeownership

Benefits Of Homeownership

Homeownership is a direct way to build your net worth.

Search South Bay Real Estate

A Fannie Mae survey recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in today’s power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents:

88% – a better chance of saving for retirement

87% – the best investment plan

85% – the chance to be better off financially

85% – the chance to build up wealth

Additional financial advantages of homeownership included in the survey are having the best overall tax situation and being able to live within your budget.

Does homeownership actually give you a better chance to build wealth?

No one can question a person’s unique feelings about the importance of homeownership. However, it’s fair to ask if the numbers justify homeownership as a financial asset.

In 2020, the Federal Reserve released the Survey of Consumer Finances, a report done every three years, with the latest edition covering through 2019. Their findings confirmed that homeownership is a clear financial benefit. The survey found that homeowners have forty times higher net worth than renters ($255,000 for homeowners compared to $6,300 for renters).

The difference in net worth between homeowners and renters has continued to grow. Here’s a graph showing the results of the last four Fed surveys:

Homeownership advantage vs. Renting

The above graph only includes data through 2019, but according to CoreLogic, the equity held by homeowners grew by $26,300 over the last twelve months alone. That means the gap between the net worth of homeowners and renters has probably widened even further over the last year.

Some might argue the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a study by First American shows homeowners have greater net worth than renters regardless of their income level. Here are the findings:

Homeowner vs Renter Net Worth

Joint Center for Housing Studies of Harvard University report on homeowners and renters over the age of 65 reveals:

“The ability to build equity puts homeowners far ahead of renters in terms of household wealth…the median owner age 65 and over had home equity of $143,500 and net wealth of $319,200. By comparison, the net wealth of the same-age renter was just $6,700.”

Homeowners 65 and older have 47.6 times greater net worth than renters.

Bottom Line

The idea of homeownership as a direct way to build your net worth has met the test of time. Contact us if you’re ready to take steps toward becoming a homeowner. Call (310)918-5027 today or visit our South Bay real estate resources.

Posted in Buyer Tips