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|
1323 Cota, Torrance CA 90501
- 3 bedroom, 1 1/2 bath
- Huge 10,500+ foot lot
- 1,944 Sq Feet
- Open Houses 7/28 1pm-4pm and 7/29 1pm-4pm
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|
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.
Median Home Prices in Torrance
Number of active Listings
Number of Pending Home Sales
Number of Closed Sales
Median Price Per Foot
**Propositions 60 and 90 are Constitutional initiatives passed by California voters. They provide property tax relief by preventing reassessment when a senior citizen sells his/her existing residence and purchases or constructs a replacement residence worth the same or less than the original. They were enacted to encourage a person, age 55 or older to “move down” to a smaller residence. When a senior citizen acquires a replacement property worth less than the original property, he/she will continue to pay approximately the same amount of annual property taxes as before.
How Do These Propositions Work?
When the senior citizen purchases or constructs a new residence, it is not reassessed, if he/she qualifies. The Assessor transfers the factored base value of the original residence to the replacement residence. Proposition 60 originallyrequired that the replacement and the original be located in the same county. Later, Proposition 90 enabled this to be modified by local ordinance. Los Angeles County enacted an ordinance to provide that when the replacement is located in Los Angeles County, the original property may be located in any other California county.
If you or your spouse that resides with you are age 55 or older, you may buy or construct a new home of equal or lesser value than your existing home and transfer the trended base value to your new property. This is a one-time only benefit. You must buy or complete construction of your replacement home within two years of the sale of the original property. Both the original home and the new home must be your principal place of residence. A claim must be filed within three years of purchasing or completing new construction of the replacement property. If a claim is filed after the three-year period, relief will be granted beginning with the calendar year in which the claim was filed.
Once you have filed and received this tax relief, neither you nor your spouse who resides with you can ever file again.
- The replacement property must be your principal residence and must be eligible for the Homeowners’ Exemption or Disabled Veterans’ Exemption.
- The replacement property must be of equal or lesser “current market value” than the original property. The “equal or lesser” test is applied to the entire replacement residence, even if the owner of the original property acquires only a partial interest in the replacement residence. Owners of two qualifying original residences may not combine the values of those properties in order to qualify for a Proposition 60 base-year transfer to a replacement residence of greater value than the more valuable of the two original residences.
- The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
- Your original property must have been eligible for the Homeowners’ or Disabled Veterans’ Exemption.
- You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.
When Are These Propositions Effective?
The replacement residence must have been purchased or constructed on or after November 5, 1986 if the original was located in Los Angeles County. The replacement residence must have been purchased or constructed on or after November 9, 1988 if the ongmal was located in any other California county. Claims must be filed within three years following the purchase of the replacement residence.
Were Are Claim Forms Available?
They are distributed at Assessor’s public counters, in Room 225 of the
Kenneth Hahn Hall of Administration, and in district offices. If you need additional information, call (213) 893-1239.
Counties Accepting Prop 90 Transfers:
**much of the information above and some additional information can be found at the County Assessor flyer at https://assessor.lacounty.gov/wp-content/uploads/2015/02/E-20.pdf