If you’re a first-time home buyer looking for a property in Torrance, CA, now is the best time to reach out to a realtor. The market is much cooler than usual, and you won’t have to enter bidding wars to secure a property. A good real estate agent will guide you through the whole process, so you can find a condo or single-family home in an excellent neighborhood.
The Torrance, CA Market Is Looking Better and Better for the Savvy First-Time Home Buyer
There are several reasons why many people believe that now is the perfect time for first-time buyers to purchase a property. The market hasn’t been this slow in several years, and property prices have remained reasonably stable in the past twelve months. Because mortgage rates are higher than before, there isn’t much competition, and it’s unlikely that you’ll struggle to find the home of your dreams in LA.
The Market Is Cooling Down
In the past few years, many people have been unable to buy a house in Los Angeles because prices have kept increasing almost every month. From 2019 to 2021, the price of the average property jumped by 32%. It’s clear that this kind of growth is unsustainable, and experts agree that prices are likely to drop or, at least, stabilize in 2023.
In fact, the median home price in October 2022 was $854,560, which is almost the same as it was a year ago. Most realtors are pessimistic about the property market because there are more homes available than in the past few years. Currently, the Months Supply of Inventory in Los Angeles is 3.6 months, which indicates a balanced market.
There Is Less Competition
Mortgage rates climbed from around 3% to over 6% in 2022. As a result, many potential buyers have had to drop out of the market, and competition has cooled down. Because there are fewer buyers per property, it’s more likely that a home will sell at or under the asking price. This makes now the perfect time to buy for people who have a solid financial cushion.
If you’re hoping to purchase your property in cash, or you have a large down payment available, you won’t have any trouble finding a good deal. People who need to get a large mortgage might struggle because the rates are higher than before. However, buyers with a good credit score might still be able to get great offers. The best way forward is to speak to a realtor who will be able to recommend the best mortgage providers in the area.
Is Renting a Viable Option?
Many first-time buyers are currently renting, and they might wonder whether it’s a good idea to wait and see what the market does next instead of jumping in now. In most areas of the city, rents have increased significantly when compared to last year. Many landlords have experienced increases in their mortgage rate, and they are passing the costs on to their tenants. For this reason, buying a home now might be a good idea, especially if your rent has gone up.
What Time of Year Is Best?
The best time of year to buy a property depends on several factors. Most people prefer moving in the spring or early summer because the weather conditions are favorable, and their children will be able to attend their new school in September. For this reason, the market is generally hotter during these months. There are more properties on the market, but there is also more competition, and prices are likely to be higher.
Those looking for cheap housing and a stress-free experience might prefer to move during late autumn or winter. There are much fewer homes on the market, and many sellers are eager to complete the transaction as quickly as possible.
How Can First-Time Buyers Maximize Their Purchase?
If you’ve never bought a home before, it’s important to get professional help. A realtor will help you to sort out your finances, find appropriate properties for you, and make sure that all the paperwork is completed correctly. This reduces the chance of a mistake and helps you find the perfect property faster. It’s also a good idea to have your potential new home inspected since there might be hidden issues.
Get a Good Realtor
The best real estate agents are the ones who have plenty of experience in the local area. Teresa Mack has been working in Los Angeles for over 15 years, and she has helped countless buyers and sellers. When you reach out, she will ask you targeted questions about your plans, your financial situation, and your new home’s desired features. Whenever a suitable property comes on the market, she’ll let you know, so you can be one of the first to book a viewing.
Get on Top of Your Financial Situation
The earlier you start planning your home purchase, the better. Go through the details of your financial situation before you reach out to a realtor. Determine how much you can spend on housing every month, what kind of down payment you have, and how you will pay for other expenses like property taxes and closing fees. Get your credit report from Experian, FICO, or a similar agency, and make sure that it is correct.
Always Get the Home Inspected
Sellers are often very good at making the most of their homes. They complete cosmetic repairs to make the property seem flawless. However, it’s hard to tell what’s underneath, and even a seemingly perfect home might have hidden structural issues. To make sure you won’t have to pay for expensive repairs in the first few years, get an independent inspector to draw up a report. They will tell you whether the property is in good condition.
The Los Angeles property market is much slower than usual at the moment. This is due to the high mortgage rates, which are preventing some buyers from participating. Get in touch with Teresa Mack now to find out what properties are available in Torrance, CA. She can help first-time home buyers find affordable, high-quality homes for sale.