South Bay Homes and Real Estate

Most experts agree that 2007 was one the worst years for the Torrance real estate market in a long period of time.

People have begun comparing the present market problems to the crash during the 1980’s. Though certain aspects, such as prices, may stop falling in the current year, there are signs that the market will truly begin to rebound in 2009. This could signal rises in prices, which have been rapidly dropping in the last couple months. Another reason a 2009 rebound is predicted is that it is believed the market will finally hit bottom in the current year. On the surface, this may cause anxiety, but consumers need to remember that a market must hit bottom before it can fully recover.

Torrance Homeowners ask, “What Happened?”

To completely grasp the concept of the market rebound, it is necessary to realize that the market acts in cycles, and at the moment it happens to be slumping. Several factors led to the present situation. One of the largest factors is the rapid growth of home prices in some areas, where many properties doubled in value from the span of 2000 to 2005. Some cases even saw values triple, which kept some consumers, especially first-time buyers, from being able to afford property. As the demand for real estate lessened, supply increased, and sales and prices dropped considerably.

As many Los Angeles-Based news outlets have reported, subprime mortgages have added to the predicament. In recent years, many Torrance buyers without excellent credit scores received loans. Also, many loans that did not require much of a down payment were issued. About two years ago marks the point when real estate prices halted. When this occurred, many Torrance Homeowners found themselves with a mortgage balance that exceeded the value of their home.

Around this time, the rate at which people defaulted on their Torrance home loans skyrocketed. Soon, foreclosures began to rise too. As foreclosed property hit the sales market, supply significantly increased, almost overnight. This greatly forced prices lower, and the economy began to sour, with some areas seeing large-scale job loss and layoffs.

While it was slow coming, the government is now providing limited assistance to homeowners to try and reduce foreclosure rates. This program is hoped to stabilize the large amount of available homes. I’ve been long hoping for some better tools to help Torrance clients in this situation. But I’ve come to believe there won’t be any serious help for most South Bay folks in trouble. I have become an advocate for getting rid of homes ASAP – whether that means a Short Sale or simply walking away from the home.

Call me immediately at 310-809-0203 for a consultation. I can help you determine if buying or selling Torrance or South Bay property is right for you.

Additional Reading:

First Time Homebuyers Tax Credit: Torrance, Palos Verdes and Beach Cities
Torrance BPO for Dummies: Understanding the home foreclosure process
How To Get Rich Slowly With Torrance Rental Property
Palos Verdes Peninsula Homes for Sale: Earthquake Safety
Torrance Home Buyer / Owner Options in Today’s Market