How Buyers and Sellers Handle Home Inspection Challenges

Helpful information on home inspections in Torrance CA

One of the more treacherous parts of an escrow is the home inspection and request for repairs.  Often times the buyer thinks that the home inspection is a “checklist” of what needs to be fixed while the seller either thinks their home is perfect or “it was just fine for us so why does the buyer need things that work fine upgraded or repaired”.  Finding middle ground isn’t always easy. As the graphic below shows, 80% of home inspection reports show at least something needing to be fixed.  We always recommend to both our buyers and sellers to be reasonable.  On the buyer side stick to actual problems or repairs.  If it’s an issue that the buyer will have to immediately pay for to have repaired…it’s a reasonable request.  The biggest challenge items are either those called out as not up to current code, or items towards the end of their service life.  Buyers need to understand that the statement “not up to current building code” does not mean it’s necessarily problematic.  Codes change all of the time and unless it’s a clear safety issue, it’s usually best to stick with actual repairs.  Items at the end of their service life really depend on the item, the cost and how extensive the rest of the repair list.  We’ve found that asking for everything usually ends with the seller dismissing any repairs….even the reasonable ones. Home inspections Keith Kyle is a top producing realtor and Torrance real estate specialist with Vista Sotheby’s International Realty in the South Bay.  Contact Keith for more information on how the home inspection and escrow process works in Torrance real estate.
South Bayport in Plaza Del Amo Torrance

Recent Home Sales in The Communities of Plaza Del Amo

Plaza Del Amo is a unique area in Central Torrance with an abundance of gated communities.  Although there are certainly complexes inPlaza Del Amo homesTorrance that are similar there is no concentration of these single family, townhome and condo communities anywhere else.  It’s really a real estate market unto itself in the heart of Torrance.

The real estate market in the Plaza Del Amo area was solid once again for the month of August 2019 with 11 closed home sales during the month.  The lowest priced sale of the month was a 1 bedroom condo on Merrill selling at just under $400,000 with the high sale of the months being a 4 bedroom single family home on Cranbrook selling at $895,000.  View also the current homes for sale in the Plaza Del Amo communities of Torrance.

Plaza Del Amo August Home Sales

MLS Type Address Sales Price $ Per Foot Bed/Bath Sq Feet Year Close Date
SB19124068 CONDO/A 2559 Plaza Del Amo #208 $535,000 $508.56 1/1,0,1,0 1052/A 1984/ASR 8/1/2019
PV19116891 TWNHS/A 2800 Plaza Del Amo #239 $620,000 $569.85 2/2,0,1,0 1088/A 1988/ASR 8/2/2019
IV19127812 SFR/D 905 Faysmith AVE $890,000 $540.05 4/2,0,0,0 1648/A 1951/PUB 8/2/2019
SB19142190 TWNHS/A 2801 Sepulveda BLVD #122 $825,000 $455.55 3/2,0,1,0 1811/A 1996/ASR 8/6/2019
SB19150625 SFR/D 1633 Hickory AVE $880,000 $511.93 4/1,0,1,0 1719/A 1948/ASR 8/7/2019
SB19157610 TWNHS/A 2595 Plaza Del Amo #415 $668,000 $491.54 2/2,0,1,0 1359/A 1986/ASR 8/14/2019
PW19114607 SFR/A 1204 Cranbrook AVE $895,000 $473.54 4/2,0,0,0 1890/A 1951/ASR 8/21/2019
SB19181641 SFR/D 1719 Iris AVE $880,000 $451.75 4/2,0,1,0 1948/A 1957/ASR 8/26/2019
SB19163321 TWNHS/A 3101 Plaza Del Amo #23 $635,000 $466.57 2/3,0,0,0 1361/A 1986/ASR 8/29/2019
SB19150903 CONDO/A 3030 Merrill DR #39 $398,000 $457.47 1/1,0,0,0 870/A 1963/ASR 8/30/2019
819003245 SFR/D 1027 Kornblum AVE $809,000 $641.55 3/1,0,1,0 1261/P 1951/ASR 8/30/2019

 

Torrance Real Estate Recap – 2018 Year in Review

By Keith Kyle

2018 was a banner year for real estate in Torrance CA. Demand was extremely high and prices continued to rise throughout the year with a slight drop towards the winter months which is not unusual.  The number of homes for sale really ramped up after spring from a low of 76 homes on the market in January to a high of 167 homes for sale in July.  There were 1,195 residential “on market” home sales in Torrance for the year.  These statistics do not include the homes in the Hollywood Riviera with Redondo mailing address but actually in Torrance.

Homes Selling At or Above Asking Price

One extremely impressive indicator of just how strong the market remained through the year was the % difference between list price and sold price (how close the sellers were to full asking price).  In seven of the months the average home sold at, or above the average list price and in the remaining 5 months they were within a percent or 2 of full list price.  That’s a sign of an extremely seller friendly market.

See the current homes for sale in Torrance

Days on Market Very Low

Another solid indicator was the average days on market with only topped 30 days once….in January of 2018.  Median prices for the year generally overed between $700,000 and $800,000.

Date January February March April May June July August September October November December
For Sale 76 78 88 111 144 149 167 165 149 164 165 119
New Listing 94 104 121 147 147 163 162 146 110 136 103 59
Sold 59 52 97 95 110 115 131 135 112 112 97 74
Pended 72 86 104 107 113 135 124 136 95 101 85 85
Avg. Active Price  $757.000  $749.000  $815.000  $820.000  $814.000  $780.000  $819.000  $809.000  $ 803.000  $771.000  $727.000  $724.000
Avg. Sold Price  $714.000  $739.000  $709.000  $739.000  $806.000  $747.000  $715.000  $721.000  $765.000  $744.000  $735.000  $766.000
Avg. Sq. Ft. Price (Sold) 488 484 484 483 503 504 482 495 497 469 495 494
Sold/List Diff. % 100 101 102 102 102 101 101 100 100 99 99 100
Sold/Orig LP Diff. % 99 100 101 101 102 101 100 99 100 98 98 98
Avg Days on Market 34 26 22 22 19 20 23 21 25 30 27 29
Median Sold Price 700,000 705,000 690,000 740,000 800,000 732,000 695,000 735,000 743,000 716,000 710,000 758,000
Torrance homes for sale sign

State of the Torrance Real Estate Market Heading into 2019

Torrance Real Estate Trends

**See updated information on 2020 real estate in Torrance Torrance is far more than one uniform real estate market.  With neighborhoods that range from sub $500,000 to homes in the multi millions, each area has it’s own localized market. Visit Torrance Real Estate for more information on the community and market in Torrance CA In general the real estate market seems to be slowing down heading into 2019.  Demand is cooling with higher interest rates and a fairly regular slow down this time of year when people are busy with the holidays.
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.

Schools are Very Important to the Torrance Real Estate Market

It’s no real secret that good schools help drive real estate values in certain neighborhoods and communities.  Buyers with kids want to be in areas with good schools and that higher demand helps keep values up.  Even those without kids greatly benefit from a strong school system.  The stronger the schools the more insulated a market is from any downturns.  That was very evident in Redondo Beach that saw home prices drop during the recession and housing crisis, but only a very small amount compared with other local areas that do not have as strong a school system.

A recent CAR study showed that 47% of home buyers said good schools were very importan, 23% said that they were somewhat important, 11% said not very important and 19% said that it was not important at all.

The 19% may not realize just how much of an influence schools play on values and demand.  Good elementary schools are often part of a good community and without question most buyers would like to live in a good community.

The Torrance Unified School District is highly ranked and that creates a very high demand, especially for families thinking of living in this coastal community.

The study also conclued that 43% of consumers age 34 or under believe highly rated schools are very important.  58% of consumers earning more than $100,000 a year think that highly rated schools are very important.