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

State of the Torrance Real Estate Market Heading into 2019

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.

How Do Torrance Buyers Choose a Neighborhood

Just as every community is different…..every home buyer is different as well.  A recent survey provided some insight into California home buyers.

Here’s some of what home buyers look for when choosing a neighborhood.

  • 25% wanted a home close to friends and family
  • 24% wanted a short commute
  • 20% wanted homes in a specific school district

See the chart below for some other important details when choosing a neighborhood.

Torrance California Home Sales for October 2018

October was another solid month for home sales in Torrance with 112 home sales.  The average listing price for the month was $748,206 with the average sales price at $744,270.  The median list price was $729,000 while the median sold price was at $715,875.  The highest sale of the month was $1,750,000 for a 4 bedroom home in South Torrance in the Seaside Ranchos neighborhood at 5006 Sharynne and the lowest priced sale was a condo at $265,000.

See the current homes for sale in Torrance CA

October 2018 Torrance Home Sales

Type
 
Address  Price   $ per foot  Bed/Bath Sq Feet Year Built
SFR/D
1554 W
220th ST  $ 479,000  $    665.28
1/1,0,0,0 720/A 1924/ASR
SFR/D
1626 W
214th ST  $525,000  $    713.32
2/1,0,0,0 736/A 1951/ASR
SFR/D
1456 W
223rd ST  $580,200  $    499.31
3/2,0,0,0 1162/A 1944/ASR
SFR/D
1527 W
213th ST  $585,000  $    565.76
2/2,0,0,0 1034/A 1940/ASR
SFR/A
1306 W
214th ST  $600,000  $   364.08
3/2,0,1,0 1648/A 1959/PUB
CONDO/A
1133
Sepulveda Blvd #202  $340,000  $    427.14
2/1,0,0,0 796/A 1973/ASR
CONDO/A
1127
Sepulveda Blvd #L104  $350,000  $   408.88
2/2,0,0,0 856/A 1973/APP
CONDO/A
20565 S
Vermont AVE #8  $390,000  $   402.89
2/2,0,0,0 968/A 1982/ASR
CONDO/A
23314
Marigold AVE #S101  $425,000  $   398.69
3/2,0,0,0 1066/A 1973/ASR
CONDO/A
22912 S
Vermont AVE #4  $445,000  $    399.82
3/2,0,0,0 1113/A 1973/ASR
CONDO/A
22919
Mariposa AVE #801  $450,000  $    381.36
2/1,1,1,0 1180/A 2009/ASR
CONDO/A
874 W
232nd ST  $475,000  $   348.50
3/2,0,0,0 1363/A 1974/ASR
SFR/D
22922
Doble AVE  $540,000  $    534.65
3/1,0,0,0 1010/A 1953/ASR
SFR/A
22912
Doble AVE  $575,000  $    429.10
4/2,0,0,0 1340/A 1953/ASR
SFR/D
21141
Broadwell AVE  $605,000  $    376.48
3/2,0,0,0 1607/A 1954/ASR
SFR/D
20963 S
Van Deene AVE  $615,000  $    488.10
3/2,0,0,0 1260/A 1957/ASR
SFR/D
808
Gian DR  $649,000  $    409.21
4/2,0,0,0 1586/A 1968/ASR
SFR/D
719 W
226th ST  $651,000  $    269.34
4/3,0,0,0 2417/A 1968/ASR
SFR/D
21430
Marigold AVE  $665,000  $   358.88
3/2,0,0,0 1853/A 1959/ASR
CONDO/A
24452
Ward ST  $700,000  $    510.95
3/1,1,0,0 1370/A 1981/ASR
SFR/D
3322
Dalemead ST  $750,055  $    702.96
3/1,0,0,0 1067/A 1950/ASR
SFR/D
3213
Dalemead ST  $840,000  $    787.25
3/1,1,0,0 1067/T 1950/ASR
DPLX/D
24240
Ocean AVE  $900,000  $    348.70
9/4,1,0,0 2581/A 1955/ASR
SFR/D
3200
Newton ST  $1,020,000
 $    447.37
4/2,0,1,0 2280/B 1993/ASR
SFR/D
2849
Windmill RD  $1,059,000
 $    511.10
4/2,0,0,0 2072/A 1975/ASR
SFR/D
25932
Richville DR  $1,305,000
 $    446.00
4/2,0,1,0 2926/A 1956/ASR
COOP/A
3110
Merrill DR #85  $477,900  $    367.62
2/1,1,0,0 1300/E 1964/ASR
COOP/A
3210
Merrill DR #32  $480,000  $    342.86
3/1,1,0,0 1400/A 1963/ASR
CONDO/A
2567
Plaza Del Amo#308  $500,000  $    574.71
1/1,0,1,0 870/A 1985/ASR
CONDO
3520
Maricopa ST #5  $520,000  $    389.22
2/2,0,1,0 1336/A 1975
TWNHS/A
2800
Plaza Del Amo #266  $655,000  $    514.53
2/3,0,0,0 1273/A 1988/ASR
TWNHS/A
3508
Del Amo Bl  $700,000  $    422.45
4/3,0,0,0 1657/A 1974/BLD
TWNHS/A
2300
Maple AVE #231  $780,000  $    417.78
4/3,0,0,0 1867/A 1987/ASR
TWNHS/A
4312
Spencer ST  $880,000  $    359.77
3/2,2,1,0 2446/A 1989/PUB
SFR/D
902
Cerise AVE  $892,000  $    527.19
3/2,0,0,0 1692/A 1951/ASR
SFR/D
2623
Bayport DR  $940,000  $    370.96
4/2,0,1,0 2534/A 1987/ASR
SFR/D
3708
Michelle DR  $950,000  $   436.98
4/3,0,0,0 2174/A 1969/ASR
CONDO/A
24410
Crenshaw Bl #211  $265,000  $    356.66
1/1,0,0,0 743/A 1987/ASR
CONDO/A
22911
Nadine CIR #A  $480,500  $    430.17
2/2,0,0,0 1117/A 1963/ASR
CONDO/A
23053
Nadine CIR #A  $510,500  $    457.03
2/2,0,0,0 1117/A 1963/ASR
CONDO/A
22927
Maple AVE  $544,250  $    562.82
2/2,0,0,0 967/A 1963/ASR
TWNHS/A
2992 W
235th ST  $730,000  $    450.34
3/3,0,0,0 1621/A 2000/ASR
SFR/D
3735 W
226th ST  $790,000  $    714.29
3/1,1,0,0 1106/A 1953/ASR
SFR/D
22715
Eriel AVE  $952,702  $    496.46
4/2,0,0,0 1919/A 1960/ASR
SFR/D
4521
Greenmeadows AVE  $ 1,090,000
 $    699.61
3/1,0,1,0 1558/A 1953/ASR
SFR/D
4625
Paseo De Las Tortugas  $ 1,295,000
 $    810.39
3/1,1,0,0 1598/A 1956/ASR
CONDO/A
3970
Sepulveda Blvd #206  $620,000  $    413.33
2/2,0,0,0 1500/B 2007/ASR
SFR/D
22939
Ocean AVE  $820,000  $    554.43
3/2,0,0,0 1479/A 1955/ASR
CONDO/A
22485
Kent AVE  $839,000  $    406.89
3/3,0,0,0 2062/A 1999/ASR
SFR/D
22621
Susana AVE  $850,000  $1,049.38 3/1,0,0,0 810/A 1952/ASR
SFR/D
3921 W
234th PL  $866,000  $    513.34
4/2,0,0,0 1687/A 1962/ASR
SFR/D
4713
Vanderhill RD  $890,000  $    772.57
3/2,0,0,0 1152/A 1956/ASR
SFR/D
23148
Anza AVE  $900,000  $    585.94
3/2,0,0,0 1536/A 1960/ASR
SFR/D
23430
Evalyn AVE  $1,035,000
 $   449.02
5/1,2,0,0 2305/A 1962/PUB
SFR/D
5006
Sharynne LN  $1,750,000
 $    673.08
4/2,1,0,0 2600/E 1949/ASR
CONDO/A
5500
Torrance BLVD #C323  $615,000  $    453.54
3/2,0,0,0 1356/A 1990/ASR
CONDO/A
21345
Hawthorne BLVD #101  $665,000  $    540.65
3/2,0,0,0 1230/A 2005/ASR
SFR/D
5125
Sepulveda BLVD  $785,000  $    675.56
3/1,1,0,0 1162/A 1955/OTH
SFR/A
4018
TORRANCE  $875,000  $    506.95
3/2,0,0,0 1726/ 1956
SFR/D
21713
Ladeene AVE  $921,000  $    792.60
3/1,1,0,0 1162/A 1956/ASR
SFR/D
5215
Scott ST  $960,000  $    541.46
3/1,1,0,0 1773/A 1955/PUB
SFR/D
5109
Beran ST  $961,000  $    438.61
4/4,0,0,0 2191/A 1955/PUB
SFR/D
21502
Linda DR  $1,000,000
 $    547.05
4/2,0,1,0 1828/A 1955/ASR
TWNHS/A
3727
Emerald ST #B  $600,000  $    531.91
2/2,0,1,0 1128/A 1987/ASR
SFR/D
5105
Arvada ST  $730,000  $    421.48
3/2,0,0,0 1732/A 1954/ASR
COMRES/A
3642
Garnet ST  $800,000  $    148.45
11/7,0,0,0 5389/A 1973/PUB
TWNHS/A
4489
Spencer ST #302  $830,000  $    405.27
3/2,0,1,0 2048/A 1995/ASR
SFR/D
4765 W
191st ST  $855,000  $    439.14
4/2,0,0,0 1947/A 1954/ASR
TWNHS/D
20508
EARL ST  $875,000  $    446.20
3/2,0,2,0 1961/ 2004
SFR/D
19905
Mansel AVE  $909,500  $    649.18
3/1,1,0,0 1401/A 1955/ASR
SFR/D
20015
Saltee AVE  $940,000  $    654.14
3/2,0,0,0 1437/A 1955/ASR
SFR/D
20019
Mildred AVE  $1,300,000
 $    591.72
4/1,1,1,0 2197/A 1970/ASR
SFR/D
5515
Arvada ST  $1,360,000
 $    486.06
4/4,0,0,0 2798/A 1956/ASR
TWNHS/A
3429 W
171st ST  $499,000  $    352.40
3/1,0,1,0 1416/A 1974/ASR
SFR/A
18334
FALDA AVE  $573,500  $    656.93
2/1,0,0,0 873/ 1953/BLD
SFR/D
3633 W
177th ST  $580,000  $    657.60
2/1,0,0,0 882/A 1953/ASR
SFR/D
18327
Elgar AVE  $610,000  $    690.05
3/1,0,0,0 884/A 1953/ASR
SFR/D
17008
Ermanita AVE  $695,000  $    630.10
3/1,1,0,0 1103/A 1951/ASR
SFR/D
17108
Glenburn AVE  $700,000  $    596.25
2/2,0,0,0 1174/A 1948/ASR
SFR/D
18820
Patronella AVE  $705,000  $    595.94
3/1,0,1,0 1183/A 1953/PUB
SFR/D
16623
Falda AVE  $711,750  $    564.88
3/2,0,0,0 1260/A 1952/ASR
SFR/D
3621 W
177th Street  $720,000  $    435.31
3/2,0,0,0 1654/A 1953/ASR
SFR/D
3709 W
180th PL  $750,000  $    496.03
4/2,0,0,0 1512/A 1953/ASR
SFR/D
16705
Francis CT  $769,000  $    372.76
4/3,0,0,0 2063/A 1963/ASR
SFR/D
3633 W
181st ST  $795,000  $    485.35
3/2,0,0,0 1638/A 1953/ASR
TWNHS/D
18512
Roslin AVE  $799,000  $    392.44
3/4,0,0,0 2036/B 2018/BLD
SFR/D
16815
Fonthill AVE  $815,000  $    372.32
4/2,0,0,0 2189/ 1954
SFR/D
3733
Sandgate DR  $815,000  $    449.53
4/3,0,0,0 1813/D 1960/ASR
SFR/D
18932
Florwood AVE  $833,000  $    374.89
5/2,0,1,0 2222/A 1953/ASR
SFR/D
18328
Roslin AVE  $894,000  $    517.96
4/3,0,0,0 1726/B 1949/ASR
SFR/D
4345 W
190th ST  $985,000  $    321.90
4/4,0,0,0 3060/A 2006/ASR
TWNHS/A
2052
Artesia  $520,000  $    448.28
2/2,0,1,0 1160/A 2001/ASR
SFR/A
2603 W
166th PL  $605,000  $    395.68
4/1,1,0,0 1529/A 1955/ASR
SFR/D
2502 W
170th ST  $625,000  $    520.83
3/2,0,0,0 1200/A 1955/ASR
SFR/D
2618 W
180th ST  $645,000  $    338.23
4/3,0,0,0 1907/A 1956/ASR
SFR/D
18902
Haas AVE  $680,000  $    406.94
3/2,0,0,0 1671/A 1951/ASR
SFR/D
16403
Wilkie AVE  $689,000  $    662.50
3/1,1,0,0 1040/A 1951/ASR
SFR/D
2418 W
180th PL  $710,000  $    584.36
3/1,1,0,0 1215/A 1956/ASR
TWNHS/A
17510
Van Ness Avenue #5  $795,000  $    461.14
3/2,0,2,0 1724/B 2018/BLD
TWNHS/A
17508
Van Ness Avenue #4  $800,000  $    464.04
3/2,0,2,0 1724/B 2018/BLD
2454
Del Amo BL      $    805.00
1/1,0 650/A 1948
TWNHS/A
2160
Plaza Del Amo #178  $560,000  $    368.42
3/2,0,1,0 1520/A 1979/PUB
TWNHS/A
2714
Cabrillo AVE  $677,500  $    410.61
2/2,0,0,1 1650/A 2006/ASR
TWNHS/A
813
Van Ness AVE #B  $689,000  $    490.04
3/3,0,0,0 1406/A 2000/ASR
TWNHS/A
2444
Cabrillo AVE  $695,000  $    566.42
2/2,0,1,0 1227/D 2018/BLD
SFR/D
1308
Cota AVE  $700,000  $    628.93
2/1,1,0,0 1113/A 1926/ASR
TWNHS/A
1800
Oak St. #519  $705,000  $    473.15
2/2,0,1,0 1490/A 2007/ASR
TWNHS/A
1800
Oak ST #103  $760,000  $    383.84
2/2,0,1,0 1980/A 2007/ASR
SFR/D
23305
Huber AVE  $740,000  $    439.43
3/2,0,0,0 1684/A 1948/PUB
SFR/D
1846
Reynosa DR  $765,000  $    467.03
4/2,0,0,0 1638/A 1948/ASR
SFR/D
2218 W
229th PL  $795,000  $    388.18
3/3,0,0,0 2048/A 1962/ASR
SFR/D
2155 W
235th PL  $927,900  $    388.89
4/3,0,0,0 2386/A 1974/ASR

5 Mortgage Musts for Torrance CA Homebuyers

There are a number of things a buyer needs to do to get a mortgage and the earlier these are done in the process the less stressful the process.  Knowing about your financing abilities eliminates many challenges and stresses that may come up in the home buyer process in Torrance and the loan process for any Southern California home.  Also see how a change in your rate can greatly impact how much of a home you qualify for.  Here are 5 essential steps to successfully navigating the mortgage process:

  1. Get pre-approved:  In a highly competitive housing market, it’s imperative to be pre-approved to give yourself the best chance of an offer being considered.  Most realtors and sellers won’t even consider an offer with financing if a preapproval letter isn’t included.
  2. Choose a realtor that can help mitigate appraisal problems.  A good realtor will meet the appraiser with the most current information in hand.  As a local real estate expert often knows more than the appraiser, the realtor may have insight and information not readily available to the appraiser.
  3. Know your credit score:    It’s not only important to have good credit and know your credit score, but equally important that your credit score stays the same throughout the escrow process.  No big purchases, no opening numerous new credit lines and no late or missed payments.
  4. Review the closing disclosure forms or CD.  Due to regulations, lenders must provide you with a closing disclosure at least 3 days before closing in order to see fees, details, etc.
  5. Make it through underwriting:  Before you get loan clearance and final approval, your mortgage has to go through the underwriting process.  Be ready and supply the underwriters with all requested documents quickly to avoid the stress of needing to ask the seller for extra time.  Most loan contingency periods are 21 days or shorter so time is of the essence in the loan process.

Historical Interest Rates since 1972

Many Torrance CA buyers are concerned with interest rates rising with the Fed making it clear that rates will slowly increats.  That’s certainly a valid concern for potential Torrance homebuyers as a higher interest rate means a higher monthly payment which most often means a lower priced home.  Taken in historical standpoint the current rates are dramatically lower than at just about any other time.  The chart below shows the interest rate on conventional and conforming 30 year fixed rate mortgages.  As we’ll see we’ve basically seen rates drop consistently since the high water mark of 16.3% in 1981.  It certainly makes todays current rate in the mid 4% range seem pretty enticing.

Our Latest Torrance Listing Featured in The Daily Breeze

It’s always a pleasure when one of our listings is recognized by the community as something special. Our listing at 1323 Cota in Old Torrance was mentioned in the Daily Breeze as a home of historical significance. Once owned by the Torrance family themselves, this charming 1914 craftsman on an enormous lot is unique in just about every way.

Take a look at the Daily Breeze article about 1323 Cota in Old Torrance

Beautiful Historic Craftsman in Old Torrance – Just Listed

1323 Cota, Torrance CA 90501

  • $899,000
  • 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

 

California 2018 Tax Reforms – Specific Changes That Affect Real Estate

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
No change
1031 LIKE-KIND EXCHANGES Applied to all classes of property (e.g. personal and real) Limits non-recognition of gain to real
property
PERSONAL DEDUCTION Allowed Eliminated
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