Pending home sales just keep going up which means that the closed sales will follow the same trend line. July was the 4th straight month that the number of pending homes sales increased. July saw 132 pending home sales which was the highest number since August of 2019 that saw the same number. View the homes that sold in Torrance during July.
Here’s a quick recap for real estate in Torrance CA during April-June of 2020. The number of home sales in Torrance dropped dramatically compared with 2019. Q2 of 2020 saw 225 closed home sales in Torrance in 2020 whereas there were 325 in the same months during 2019. This major slowdown was primarily the result of all the uncertainty surrounding the coronavirus and the economic shutdown. While that was the bad news, the rest of the metrics all looked great. The median selling prices was an impressive $822,000 and days on market was a very short 26. The average price per foot also jumped quite a bot to $524 from $498 a year earlier.
Unlike most other South Bay cities, Torrance didn’t see nearly as significant a drop in the number of home sales in April. Some neighboring towns saw a 60% drop in home sales compared with the year earlier. Torrance seemed to be the exception with 81 homes sold in April compared with 99 a year earlier. That’s still a significant drop but, as mentioned, much better than others. The average days on market was only 24 before going into escrow and median sales price for the month was $792,000.
Just like all cities and towns, the coronavirus uncertainty has impacted real estate in Torrance CA as well. We’re probably far more insulated than some other areas but there’s no doubt it’s playing a large role in the current market. April saw the fewest number of pending home sales in the past few years with only 45 homes going into escrow. Compare that with 11 pending sales a year earlier and it’s pretty clear we’re entering a much slower market. The real estate market in Old Torrance was equally impacted with only 1 home entering escrow during April compared with 4 the previous April and 5 just a month earlier.
The chart below shows the number of active listings (light green) sold homes (dark green) and pending home sales (red line) The greater the discrepancy between active homes and sold homes indicates a buyers market and when the numbers are closer a sellers market is indicated as inventory is down.
The chart below shows the average price per square foot. Square footage in the South Bay often doesn’t mean as much as in other markets as values can vary so dramatically due to things such as proximity to the beach, views, specific neighborhoods.
The chart below shows the average days on market per month as well as the % of list price that homes sold at. A high % indicates a sellers market as home sell at, or above list price.
The chart below shows the average price for listed home sales in relation to the average price for sold homes.
The chart below indicates the months of home inventory based on closed home sales. Buyer’s market: more than 6 months of inventory Seller’s market: less than 3 months of inventory Neutral market: 3 – 6 months of inventory
South Torrance, which is located just north of the Palos Verdes foothills and just east of Redondo Beach, is one of the most sought after neighborhoods in all of Torrance. It’s close enough to the beach to get the cool ocean breezes, but is often spared from the early summer fog making it just about ideal. The area offers great schools and a real “community” feel with tree lined streets, appropriately sized home (few McMansions) and a friendly vibe.
One of the highlights is a tract known as Seaside Ranchos which is locally famous as the “Christmas Lights” area every December. This neighborhood also has some very large lots meaning unique homes with incredible outdoor areas.
As with all real estate in the South Bay, home prices and values have gone up considerably in the past few years. Here’s a look at the current homes for sale along with a chart showing south Torrance real estate trends and statistics so that you can get a better handle on real estate in this charming neighborhood. Take a look at our Torrance real estate site to view more information on west Torrance as well as homes and information on the other neighborhoods of Torrance CA.
Current Homes for Sale in South Torrance
Chart below shows the last 15 months. Light green bar indicates the number of active listings or active homes for sale. The red line is the number of pending sales or homes that went into escrow and the dark green bar shows the number of closed home sales.
One of the many questions potential buyers ask is why they should buy when generally renting is less expensive. There are a number of reasons although it still may not be the best fit for you. Everyone is different but in terms of long term planning it’s almost always better to own than rent.
Here are just a few of the reasons:
When you invest in a home, it offers the possibility for appreciation in value. The equity becomes yours when you’re still paying off your mortgage. You even get to live in it while your investment matures.
Since both mortgage interest and property taxes are tax deductible, homeownership can save you significant amounts of money every year.
Planned Housing Costs
You decide how much you spend on your home, including repairs and improvements. Unlike renters, homeowners with a fixed-rate loan can lock in their monthly housing costs.
Improvements to Your Taste
You can choose which improvements to make your own property, such as a deck, kitchen remodel, or new paint, instead of needing permission from your landlord.
If you have more questions about making the decision to buy a home, please feel free to call or email.