Welcome to our Torrance real estate update for the coming year. 2020 is looking to be another banner year for home sellers as the combination of seemingly endless demand and historically low interest rates means more people will be looking to purchase a home.
In general the real estate market seems to be slowing down heading into 2020 but for a very odd reason…..each month there are fewer homes hitting the market. Fewer listings mean fewer home sales. January saw a very slight uptick in the number of listings so we’re hopeful that is a trend that continues. Other than that small bump in January, the number of homes for sale has dropped every month since May of 2019
According to Torrance realtor Keith Kyle, “It’s clear that the market is cooling off as there has been an increase in new listings coupled with fewer sales and homes going into escrow since summer.” The chart above shows that the number of active listings has held pretty steady between 150 and 170 since summer, but the number of sold homes as well as new escrows has continued to decrease. If this trend continues the market will shift more in favor of buyers and less in favor of sellers. It’s clearly been a sellers market over the past few years.
The chart below shows the upward trend over the past few months with avarage “months of inventory” of unsold homes on the rise.