From the desk of Greg M. Ingerson, Attorney At Law
During the Fall 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 170 homes for sale in Torrance and 91 sold. Translation, under current market conditions, in any given month, you have about a 1 in 2 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.
The Numbers Don’t Lie, Here Is What’s Happening:
On October 1, 2009, there were 170 active listings for sale in the Torrance Market: 112 Houses; 24 Townhouses; and 34 Condominiums.
In the past year, there were 775 homes sold in Torrance (between 11.01.08 and 10.30.09): 615 Houses; 134 Townhouses; and 126 Condominiums.
What this means is that on a yearly average, the inventory is currently turning over at a rate of approximately 4.5 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 65 days, Townhouses will be on the market an average of 64 days, and Condominiums should be on the market an average of 97 days.
Market Recap for the Month of September, 2009
When one compares the September results with the yearly result, we find that there is an approximately 1.9 month inventory of homes for sale in Torrance.
Broken down by specific property type, we find that there is a 1.8 month inventory of Houses, a 1.8 month inventory of Townhouses, and a 2.4 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 September 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 more information regarding the South Bay 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 24 Hours a Day.
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Torrance Home Sales by the Numbers
91 sold in September 2009
107 sold in September 2008
170 Current Active Listings
112 Houses
24 Townhouses
34 Condos
91 Sold in September 2009
64 Houses
13 Townhouses
14 Condos
135 Contingent & Pending in September 2009
83 Houses
32 Townhouses
20 Condos
21 Expired in September 2009
11 Houses
8 Townhouses
2 Condos
107 Sold in September 2008
54 Houses
13 Townhouses
20 Condos
50 Sold in September 2007
31 Houses
9 Townhouses
10 Condos
91 Sold in September 2006
65 Houses
21 Townhouses
5 Condos
109 Sold in September 2005
73 Houses
20 Townhouses
16 Condos
129 Sold in September 2004
92 Houses
24 Townhouses
13 Condos
146 Sold in September 2003
94 Houses
34 Townhouses
14 Condos
129 Sold in September 2002
97 Houses
17 Townhouses
15 Condos
131 Sold in September 2001
100 Houses
22 Townhouses
9 Condos
155 Sold in September 2000
114 Houses
26 Townhouses
15 Condos
29 Expired in September 2008
20 Houses
3 Townhouses
6 Condos
26 Expired in September 2007
16 Houses
6 Townhouses
4 Condos
46 Expired in September 2006
27 Houses
17 Townhouses
2 Condos
19 Expired in September 2005
11 Houses
6 Townhouses
2 Condos
23 Expired in September 2004
15 Houses
2 Townhouses
6 Condos
15 Expired in September 2003
14 Houses
1 Townhouses
0 Condos
17 Expired in September 2002
16 Houses
1 Townhouses
0 Condos
23 Expired in September 2001
16 Houses
6 Townhouses
1 Condos
30 Expired in September 2000
27 Houses
1 Townhouses
2 Condos
To search for bank owned properties on the market go to http://www.LAHomeSearch.com
To search for Southern California Real Estate including real estate in Beverly Hills, Brentwood, Santa Monica, and Malibu go to http://www.LAHomeSearch.com
For Los Angeles Real Estate go to http://www.LAHomeSearch.com
To search for “For Sale By Owner” properties in the Los Angeles Real Estate Market visit http://www.FSBO.LAHomeSearch.com
Thinking of Selling? To get the most Money, Fastest Sale, and the Fewest Problems, visit http://www.LAHomeSearch.com
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
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