"They're crawling out of their basements, they're forming households and they're looking to buy," said Doug Bauer, a home builder CEO, of the recent influx of first-time homebuyers into the residential real estate market after a decade on the sidelines.
The likely result of more new households choosing to buy rather than rent is an increase in home prices, both at the entry level and at higher, move-up price points.
A recent example came out of our own experience where we listed an older fixer at 19522 Donora Avenue in West Torrance (pictured below) for $749,000, only to see that listing attract almost two dozen offers. The price eventually got bid up to $835,000 (although there was a $7,000 credit back to the buyers).
What was interesting was the buyers had been renting for years and just now decided to get off the sidelines and into the market.
This sale enabled our clients to move up to a bigger home in Rancho Palos Verdes. So clearly the high sale price that the Torrance home commanded was eventually felt at the next level in RPV and so on.
You can read more about this current market trend by clicking here.