In my professional opinion we are in a recovery in Los Angeles, but an "L" shaped one that will take some time to move upward. I do not think home prices will drop further.
I predict that by mid of 2011, that's when people in Torrance will really see the reality and prices will be lower than now. Just the rest of the world is jumping off the cliff to join those homeownes who bought in 2006 and are now under water, doesn't mean I have to jump too. Many homes in Torrance now are still listed in 2006 peak level.
I am an agent/homeowne that lives, in West Torrance. While i would like to stay that we are stabilzing but we really won't know until the government tax credit and new tax credit or rebate is over. Right now this is a rebate,credit, interest rate driven market. I am cautiously optimistic that South, WEST and Central Torrance will be ok. The inventory has been tight and that has helped keep the prices somewhat stable. However, There is a higher concentration of short sales and reo's in E. Torrance. That will hurt the E Torr. values even more until the distress sales die off.
That being said, different neighborhoods in Torrance are very different. And then there is the Torrance PO area, which is not really Torrance, but is actually LA County and children living in that area will go to LA Unified Schools, not Torrance Schools.
According to TrendGraphics - an aggregator of MLS data for the local area, Torrance has seen a significant upswing in prices over the past 1 month to 15 months. Here are some statistics:
- Single Family Homes in the Torrance Unified School District - Average price per square foot INCREASED 9.1% from Dec 2009-January 2010; increased 11.3% over the past year, and 12.9% over the past 15 months.
- Single Family Homes in 90503 - UP 0.4% in 1 month; 1.1% in 1 year; 8.6% in 15 months
- Single Family Homes in 90505 - UP 5.1% in 1 month; 14.8% in 1 year; 11.5% in 15 months
As you can see, prices (at least as measured by price per square foot) are holding strong and even increasing in Torrance. That being said, there are still some bargains to be had, you just have to be very pro-active and quick to act. Let me know if you would like more specific information or help in finding your new home. Dare to Dream.
Shel-lee Davis, CDPE
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty