One of the big misconceptions with home buyers, especially first time home buyers, is that you need at least 20% down. That’s often not the case with lenders offering FHA loans with as little as 3.5% down and traditional lenders funding loans with as little at 5%. The lower amount is much easier if it’s a single family home but there are options:
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.
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.
|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|
**Update as this beautiful home has sold**
- 3 bedroom, 1 1/2 bath
- Huge 10,500+ foot lot
- 1,944 Sq Feet
This California Craftsman Executive Home is a magnificent, rare find. Built in 1914 on huge R2 lot near Nativity Church & Triangle Park, one of the most desirable parts of Historic Old Torrance. This 2 story home has fabulous bones & incredibly retains all its Historic charm. The large front porch that tracks the entire width of the house is perfect for sitting on pleasant evenings. Original front door enters into a large living room with large fireplace. The office features the original built-in desk, a coat closet and is accessed through the original pocket doors. The formal dining room has a grand built-in hutch/buffet & wainscoting. A sunny breakfast room is connected to both the dining room & kitchen. The circular downstairs floor plan is great for entertaining with a separate area for the original staircase that wraps through the center of the house. Upstairs are two large bedrooms & another smaller 3rd bedroom. There are 2 separate two car garages in the rear off the alley. Two additional storage rooms are connected to the first garage. Huge 75′ x 140′ lot (10,500 sqft) has endless possibilities including another one story house (Check with City of Torrance Building Dept). Title & Records Search indicate that this house was once owned by Jarred Sidney Torrance. Truly one of Old Torrance’s best properties & a Once-in-a-Lifetime Opportunity to own a piece of local History. To appreciate this house and its craftsmanship you must see it yourself. Contact listing agent Keith Kyle with Vista Sotheby’s International for more information or for a private showing. 310.251.2344
Here’s a helpful chart to see how the changes in the tax policy impacts Torrance and all California property owners.
|PREVIOUS LAW||2018 LAW|
|MORTGAGE INTEREST DEDUCTION||Capped at $1M||Capped at $750,000|
|STATE AND LOCAL TAX DEDUCTION||Unlimited||Deduction capped at $10,000 (income, sales and property combined)|
|CAPITAL GAINS EXEMPTION ON SALE OF PRIMARY RESIDENCE||Exclusion of up to $250,000 ($500,000 if married) of gain realized on sale or exchange of principal residence if lived in
for 2 of the last 5 years
|1031 LIKE-KIND EXCHANGES||Applied to all classes of property (e.g. personal and real)||Limits non-recognition of gain to real
|STANDARD DEDUCTION||$6,350 individual and $12,7000 if married||$12,000 individual and $24,000 if married|
|MID FOR SECOND HOMES||Capped at $750,000|
|HOME EQUITY LOAN DEDUCTION||Capped at $100,000||Not deductible unless the proceeds are used to substantially improve the property|
|MOVING EXPENSE EXCLUSION AND DEDUCTION||Incurred in connection with change in work place||Eliminated except for members of armed forces on active duty that move pursuant to military orders|
|CHILD TAX CREDIT||$1,000 for each child||$2,000 for each child|
|DEDUCTION FOR QUALIFIED BUSINESS INCOME OF PASS-THROUGH ENTITIES INCLUDING INDEPENDENT CONTRACTORS||None||20% deduction of taxable income phased out above $157,000 ($315,000 if married) for brokerage services|
|DEPRECIATION RECOVER PERIOD FOR REAL PROPERTY (RESIDENTIAL RENTAL)||Recover period is 27.5 years||No change|
|DEPRECIATION RECOVER PERIOD FOR REAL PROPERTY (NONRESIDENTIAL)||Recover period is 39 years||No change|
|DEPRECIATION RECOVER PERIOD FOR REAL PROPERTY (LEASEHOLD IMPROVEMENTS)||Recover period is 15 years||No change|
If you’re looking for a home in the Old Torrance area of Torrance CA, we’ve created a website to give you real estate information specific to this charming and historic part of town. OldTorranceHomes.com has everything real estate.
Information is critical in real estate and the right information can help you determine where the market has been and where the market is heading. See the various charts below to view some important real estate statistics such as average sales price in Torrance, number of active v pending listings, etc.