The Reality Of The Real Estate Market

As of today, April 15th, we will be exploring real examples of how much homes are selling over asking price. Granted not all homes are selling (what you are about to see) THIS MUCH over asking but typically these homes all have one of two things in common: 1. They are priced to attract the most amount of buyers. OR 2. They are newly renovated and appeal to a larger crowd.

This means that many buyers will be attracted to these homes because of the Price OR the Desirability of the home. (Typically have multiple items checked in this list: Newer, updated, renovated, open floor plan, flow, ideal living, large backyard, multiple bathrooms, great location, etc.)

We will take a look at examples in Torrance, Carson, Rancho Palos Verdes, and Gardena.

After looking at all these examples one thing should be clear: We should no longer label the Asking Price as such, and we should start labeling it as the Starting Price…

Spreadsheet is organized by:
Address, Listing Price, Sold Price, Number of Beds / Full Baths / 3/4 Baths / Half Baths, & Square Feet

Torrance

In the list above we can see that these homes are selling significantly over asking price. Some even are $100k+ Over Asking.
In the last 45 days, there have been 92 SFR Homes that have Sold. Out of those 92 Homes, 67 were over asking price!

Carson

In the last 45 days, there have been 50 SFR homes that have Sold and out of those 50 homes, 39 went over asking price! 39!!!
The list above shows some of these homes and you can see they are around $75k over. Out of all 50 homes the average was $18k over asking price which is significant as there are 11 homes that didn’t sell over asking weighing those prices down.

Rancho Palos Verdes

In the last 45 days, there have been 60 SFR homes that have Sold in Rancho Palos Verdes. Out of those 60 homes, 35 have sold over asking price. In a luxury market, over 50% of homes selling over asking is no easy task. In the list above you can see that one home even sold $400k over asking price.
In order to compete, your offer has to stand out. Many of these homes most likely received over 10 offers with all of them being over the asking price.

Gardena
In the last 45 days, there have been 42 SFR homes that have sold in Gardena. Out of those 42 homes, 35 have sold over the asking price. Basically if you are buying a home in Gardena it is a given to offer over the asking price.
Out of the 42 homes that have sold, on average, homes are selling $32k over the asking price.

We hope that these examples help realize the true state of the current market and many people may wonder why are these people buying?
Interest rates are extremely low and inventory is slim. The goal for many is home ownership.
There are many people trying to time the market and speculate that the market will crash for over 4 years now. They have held off every year waiting for a crash and look where that’s gotten those individuals. Prices have sky rocketed since then.
If you thought about purchasing a home but are hesitant, one thing to consider is this:
If you are comfortably able to make payments, have reserves, and have a down payment that works for you, you will almost always be better off purchasing rather than renting. Real Estate is King in the long term.