Los Angeles Real Estate Blog

The Torrance CA Real Estate Market Authority

From the desk of Greg M. Ingerson, Attorney At Law

During the Spring season, Torrance home sellers should begin to see a gradual decrease in the number of showings and inquiries for their home over the next few weeks.

Last month, the MLS summary showed that there were 319 homes for sale in Torrance and 32 sold. Translation, under current market conditions, in any given month, you have about a 1 in 10 chance of selling your home.

In other words, when pricing your home, the practice of adding a "Pad" or "Cushion" to make room for negotiating is not advisable in this market.

As an informed Home Seller, you should understand that with an increase in inventory “supply” there is a corresponding decrease in demand.

Home Sellers should pay close attention to “Current Buyers.” Similar homes that have recently “Sold” tell us what people are willing to pay for this kind of home, in this area, at this time.

Information about similar homes “Currently for Sale” tells us what we are competing against. Buyers considering your home are also inspecting these homes.

Moreover, “Expired” listings tell us what people are not willing to pay for this kind of home, in this area, at this time.

Home Sellers in this market should realize that buyers in today's market will not overpay for a home and even if they would, the bank will not loan more than the home is worth when it doesn’t appraise.

So what can we expect? Demand should decrease a little over the coming weeks at least until the “sub-prime” mortgage meltdown crisis is figured out.

The Numbers Don’t Lie, Here Is What's Happening:
On March 1, 2008, there were 319 active listings for sale in the Torrance Market (Areas 125-135): 201 Houses; 62 Townhouses; and 56 Condominiums.

In the past year, there were 925 homes sold in Torrance (between 3.01.07 and 2.29.08): 618 Houses; 192 Townhouses; and 115 Condominiums.

What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 2.9 times per year.

Broken down even further by specific property type, we find that given the current absorption rates, we can expect Houses to be on the market an average of 117 days, Townhouses will be on the market an average of 116 days, and Condominiums should be on the market an average of 175 days.

Market Recap for the Month of February, 2008
When one compares the February results with the yearly result, we find that there is an approximately 10 month inventory of homes for sale in Torrance.

Broken down by specific property type, we find that there is a 11.2 month inventory of Houses, a 7.8 month inventory of Townhouses, and a 9.3 month inventory of Condominiums on the market in Torrance. (Based on current absorption rates).

How should a Seller approach the market? The key in today's market is proper pricing. If you are thinking of selling, now may be the best time to put your Home on the market for the foreseeable future before any additional interest rate increases are implemented.

How should a Buyer approach the market? For buyers, this is a good time to be in the market while sellers are willing to negotiate price and while interest rates are still low. For those hoping that the market will cool, any advantage obtained by waiting for prices to decrease may be offset by higher interest rates.

For more information regarding the Torrance and/or greater Los Angeles Real Estate Markets, please visit our website at http://www.LAHomeSearch.com for FREE information or give our office a call at 310.908.2172 for Free Recorded Information 24 Hours a Day.

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Torrance Home Sales by the Numbers
32 sold in February 2008
48 sold in February 2007

319 Current Active Listings
201 Houses
62 Townhouses
56 Condos

32 Sold in February 2008
18 Houses
8 Townhouses
6 Condos

19 Expired in February 2008
13 Houses
3 Townhouses
3 Condos

79 Contingent & Pending in February 2008
50 Houses
17 Townhouses
12 Condos

48 Sold in February 2007
31 Houses
10 Townhouses
7 Condos

38 Sold in February 2006
26 Houses
5 Townhouses
7 Condos

57 Sold in February 2005
45 Houses
3 Townhouses
9 Condos

64 Sold in February 2004
41 Houses
14 Townhouses
9 Condos

56 Sold in February 2003
45 Houses
7 Townhouses
4 Condos

71 Sold in February 2002
49 Houses
14 Townhouses
8 Condos

61 Sold in February 2001
42 Houses
9 Townhouses
10 Condos

45 Sold in February 2000
33 Houses
6 Townhouses
6 Condos

16 Expired in February 2007
11 Houses
4 Townhouses
1 Condos

29 Expired in February 2006
26 Houses
3 Townhouses
0 Condos

7 Expired in February 2005
6 Houses
1 Townhouses
0 Condos

10 Expired in February 2004
8 Houses
1 Townhouses
1 Condos

22 Expired in February 2003
20 Houses
1 Townhouses
1 Condos

10 Expired in February 2002
9 Houses
1 Townhouses
0 Condos

9 Expired in February 2001
7 Houses
1 Townhouses
1 Condos

12 Expired in February 2000
11 Houses
1 Townhouses
0 Condos

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About the Author
Greg M. Ingerson, Attorney At Law & Real Estate Broker, is a real estate Broker with LA Home Search in Los Angeles, California. To learn more about the Los Angeles Real Estate Market, please visit http://www.LAHomeSearch.com