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!

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
March 26, 2021

New Horizons Torrance Update

New Horizons Torrance Update March 2021

New Horizons in Torrance is a popular 55+ senior condo community. Residents of New Horizons love the golf course, two swimming pools, gym and the wonderful clubhouse with many opportunities to make new friends and spend quality time with them.

Whether you're looking for a spacious 2 bd 2 bath condo or a popular "bungalow" home, New Horizons has something special to offer for active seniors.  Many of our clients made a decision to downsize and make New Horizons their new home.  All of them a happy with their decision.  If you're thinking about downsizing let us show you what New Horizons Torrance has to offer.  Below is the link to view current New Horizons availability:

NEW HORIZONS CONDOS FOR SALE

As of today, there are 5 units listed for sale.  Prices range from $489,000 to $544,000 for a spacious 2 bedroom 2 bath plus den unit.

Excellent location, close to shopping, restaurants, medical facilities as well as our beautiful beaches, make New Horizons one of the most popular 55+ communities in South Bay.

new horizons Torrance

New Horizons pool

New Horizons golf

 

Posted in 55+ Communities
Feb. 15, 2021

Luxury South Bay Real Estate in 2021

Luxury South Bay Real Estate in 2021

luxury real estate

Luxury real estate is attracting more and more buyers this year. We see this phenomenon in the South Bay LA market. Real estate buyers have changed their preferences since the pandemic. We see the migration from dense populated areas to suburbs. South Bay luxury market is uniquely positioned to attract these buyers. You may choose from an oceanfront condo or house or a Palos Verdes home overlooking Pacific Ocean. Everybody's definition of "luxury" is different and here in South Bay we have something for everybody, depending on your budget or taste.

Contact us today to find your Souther California piece of heaven.

As more people continue to identify their changing needs this year, some are turning to the upscale housing sector for more space or finer features. In their most recent Luxury Market Report, the Institute for Luxury Home Marketing (ILHM) shares:

“In a snapshot of 2020, despite the devasting effects of the coronavirus pandemic, the luxury real estate market has seen one of its strongest years since 2008. In comparison to experts’ predictions in early 2020, it is remarkable how significant demands for property type, location, and amenity preferences have changed amid the pandemic.”

With more opportunities to work from home and a growing interest in having extra space for things like virtual school, working out, and cooking more meals, the desire to own a home that can meet these needs continues to increase. Additionally, record-low mortgage rates are creating opportunities for homebuyers to stretch their legs into higher price points or even expand their real estate portfolios. The ILHM report continues to say:

“Experts believe that the demand for exclusive residential properties outside the metropolitan areas will continue well into 2021; even with the introduction of vaccines, the pandemic is far from over.

For those who have moved to the suburbs and beyond, moving back to the city full time is unlikely while the work from home trend remains. Many of these affluent homeowners are now making their secondary properties their primary residences for the foreseeable future.”

If you’re interested in buying a home this year, it appears that some higher-priced markets may have more homes to choose from than those at lower price points. Javier Vivas, Director of Economic Research at realtor.com, notes:

“Interestingly, markets, where new supply is improving the fastest, tend to be higher priced than those that have yet to see improvement, suggesting sellers are more active in the more expensive markets.”

Bottom Line

If you’re hoping to buy the home of your dreams, this could be the year to achieve that goal.

Call us at (310)918-5027 or Contact us via email today to check out your luxury real estate options in today's South Bay market 

 

Posted in Market Updates
Jan. 18, 2021

Palos Verdes Estates Home Sales & Prices

Palos Verdes Estates Home Sales & Prices - Jan 2021

Palos Verdes market can be described as "hot" and "seller's market" with low inventory pushing home prices to record levels. Despite the economy uncertainties due the the Covid pandemic, buyers take advantage of the historically low interest rates, are often competing for properties, outbidding one another. Another market drivers are the desire to live in the suburbs and the possibility to "live anywhere" and work remotely.

Currently in Palos Verdes Estates, the average cost per sq ft is $944; average listing price is $5.5M

View recent home sales in Palos Verdes Estates:

Palos Verdes Estates Sales

View Detailed Palos Verdes Estates Market Report below:

market report

Low inventory and strong demand in Palos Verdes CA are pushing prices at a faster pace than household income growth in the area.  This negatively influences affordability. Only time will tell how the uncertain political and economic environments at home and abroad will influence mortgage interest rates and the economy in the coming months. Stay tuned...

Curious about your home values in this market?  Contact us for a free home evaluation.  Call (310)918-5027 or send us an email/text.

Posted in Market Updates
Dec. 17, 2020

Torrance CA Market Report

Torrance CA Market Report - December 2020

Torrance CA real estate market can be described as "hot" and "seller's market" with low inventory pushing home prices to record levels. Despite the economy uncertainties, buyers take advantage of the historically low interest rates, are often competing for properties, outbidding one another.

Currently in Torrance, the average cost per sq ft is $492; average listing price is $996,752.

Average sales price in the last 6 months was $853,317, average price per sq foot was $537. Homes stayed on the market 29 days on average.

View Detailed Torrance Market Report below:

real estate market report

Low inventory and strong demand in Torrance CA are pushing prices at a faster pace than household income growth in the area.  This negatively influences affordability. Only time will tell how the uncertain political and economic environments at home and abroad will influence mortgage interest rates and the economy in the coming months. Stay tuned...

Curious about your home values in this market?  Contact us for a free home evaluation.  Call (310)918-5027 or click here

Contact us today

Posted in Market Updates
Dec. 15, 2020

Advantages of Living in a Senior 55+ Community

Advantages of Living in a Senior 55+ Community

Many boomers are moving into active senior 55+ communities. We see this trend here in Torrance and South Bay CA as well.  55+ condos are in demand and have been selling quickly. Below is the info on Torrance area 55+ communities and current listings:

South Bay 55+ Condo Communities

over 55 homes

Below I outlined the main advantages of living in a 55+ community:

Seniors want to be around people who share common interests, goals, and challenges. That comfort in a community doesn’t wane with age – it actually deepens. Whether it’s proudly talking about grandchildren or lamenting the fact that our eyes aren’t as good as they used to be, it's nice to be surrounded by people who feel the same joys and concerns.

These are the reasons why so many boomers are deciding to move into an active adult 55+ community. Baby boomers are now reaching the age when moving to an active adult 55+ community is the right choice for them. Many boomers now want to downsize, experience a maintenance and worry-free lifestyle, and take advantage of more social opportunities. 55+ communities offer this kind of opportunity.

At the same time, there’s still a desire, however, among many seniors to “age-in-place.” According to the Senior Resource Guide, aging-in-place means: “…that you will be remaining in your own home for the later years of your life; not moving into a smaller home, assisted living, or a retirement community etcetera.”

The challenge is, many seniors live in suburban or rural areas, and that often necessitates driving significant distances to see friends or attend other social engagements. The Joint Center for Housing Studies of Harvard University (JCHS) titled Housing America’s Older Adults report addressed these concerns: “The growing concentration of older households in outlying communities presents major challenges for residents and service providers alike. Single-family homes make up most of the housing stock in low-density areas, and residents typically need to be able to drive to do errands, see doctors, and socialize.”

The Kiplinger also analized the subject: “While most seniors say they want to age in place, a much smaller percentage of them actually manage to accomplish it, studies show. Transportation is often a problem; when you can no longer drive, you can’t get to medical appointments or to other outings.”

Driving may not be a challenge right now, but think about what it may be like to drive 10, 20, or 30 years down the road.

There are also health challenges brought on by a possible lack of socialization when living at home versus a community of seniors. Sarah J. Stevenson is an author who writes about seniors. In a recent blog post for A Place for Mom, she explains: “Social contacts tend to decrease as we age for reasons such as retirement, the death of friends and family, or lack of mobility.” The research from the same source suggests if you’re spending time with others in a community, thus reducing or eliminating the impact of loneliness and isolation, there’s less of a risk of developing high blood pressure, obesity, heart disease, a weakened immune system, depression, anxiety, cognitive decline, Alzheimer’s disease.

Though the familiarity of our current home may bring a feeling of warmth, comfort, and convenience, it’s important to understand that staying there may mean missing out on crucial socialization opportunities. Living with adult children, joining a retirement community, or moving to an assisted living facility can help us continue to be with people we enjoy every day.

“Aging-in-place” definitely has its advantages, but it could mean getting “stuck-in-place” too. There are many health benefits derived from socializing with a community of people that shares common interests. It’s important to take the need for human interaction into consideration when making a decision about where to spend the later years in life.

Contact your local real estate expert - Krystyna Ryan at (310)918-5027 to explore South Bay LA active senior 55+ communities

 

Posted in 55+ Communities