The final numbers for the Torrance real estate market in 2008 are in and although it was a tough year for home sellers there were some interesting market developments towards the end of the year that may indicate a brighter 2009 for sellers.

According to the South Bay Association of Realtor overall sales for the year were down 15% compared to 2007.   The month of December saw 68 sales (singe family homes, condos/townhouses, and residential income) down from a 2008 high of 109 sales in August.

Torrance Real Estate Sales for 2008

The original listing price/sale price percentage started the year at 92% and steadily rose throughout the year before settling into a 96-98% range the last quarter. This is most likely due to a combination of factors including lowered initial pricing that more accurately reflected the market demand, lower mortgage rates, and a drop in the inventory of properties on the market.

Torrance Original List Price/Sold Price Ratio 2008

Typically a supply of six months or more home inventory indicates a buyers market, three months or less a sellers market with a 3-6 month supply neutral. The drop in inventory throughout 2008 changed the market in Torrance from a strong buyers market at the start of the year to a neutral market that was clearly trending towards the seller side in December. This combined with low interest rates and a potential increase in the conforming loan limit could push the market to the sellers advantage in 2009.

Torrance Housing Supply 2008

* All reports presented are based on data supplied by the South Bay Association of Realtor or its MLS. Neither the Association nor its MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

Although the Torrance real estate market has experienced some of the general pain that has effected the entire South Bay market single family homes sales in November actually increased in November compared to the previous year. This past month the South Bay Association of Realtor reported 53 single family home sales with another 35 pending compared to 48 sales with another 39 pending in November 2007.

Torrance Single Family Homes Sales November 2008

Average sold price for a single family homes in Torrance dropped to $623,000 in November compared to $671,000 in November of 2007. However, the average price for single family homes sold in Torrance has actually been increasing the last few months since hitting a low of $594,000 in September.

Torrance Single Family Home Average Price

The average continuous days on market (CDOM) and percentage of original listing price/sold price ration seem to be somewhat contradictory. Usually as CDOM increases the percentage of original listing price/sold price drops, essentially the two averages are contra indicators of the market’s health. However over the past year in Torrance the average CDOM for single family homes has increased from 46 days to reach 80 days in November while the original listing/sold price ratio actually increased 4.3%.

Torrance Single Family Homes Average Days on Market - November

The conjecture is that home sellers are willing to wait out the market to get their price. The recent drop in interest rates should increase the number of qualified buyers, which given the current trends may result in a decrease in CDOM and a leveling off of the original listing price/sold price ratio at or near it’s current level.

*All reports are published Dec. 2008, based on data available at the end of Nov. 2008.
All reports presented are based on data supplied by the South Bay Association of Realtor or its MLS. Neither the Association nor its MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

This Thursday from 12-2pm we’ll be holding a brokers open for our new listing in Torrance, 5312 Doris Way. Built in 2007 and this Seaside Rancho

5312 Doris Way, Torrance, CA 90505

4 bedroom home has gorgeous views of the city.  The home features two fireplaces as well as a teared private backyard. This is just hitting the MLS so this is the first opportunity to take a look.