Our local South Bay real estate market is doing incredibly well. Home values are up again, and it’s a seller’s market. Property owners have more equity now than in the past few years and real estate is once again a great, solid investment for anyone. We call these people “equity rich”, and they have 50% equity or more in their properties. According to RealtyTrac’s first quarter Foreclosure Market report, more and more homeowners are falling into this category. Just look at the recent home value increases in Hermosa Beach, for instance:
When home values are this high, it makes sense to trade up for bigger or better homes and put your current property on the market. This opens up property for the many buyers eager to purchase in the South Bay, which boosts the local market even more.