Saturday, August 25, 2007

Manhattan Beach: Market Snapshot August 25, 2007

Downtown Manhattan Beach

The last three weeks have been like driving a car downhill without brakes. No one knows what will happen at the bottom of the hill but we all hope for a safe stop without anyone getting hurt. There is a lot of speculation about how the woes of the credit market will affect the Beach Cities and Manhattan Beach in particular.

I have no answers because there are no immediate answers...just a lot of questions that can only be answered over time. All I can share at this time is what I do know....

I know that we are not seeing a run up in foreclosures notices in Manhattan Beach and the Beach Cities. I know that if you have to refinance you can get a 90% LTV jumbo loan around 7%-7.5% fixed ( maybe a bit less) or a 6.5% adjustable providing you don't take any cash out and yesterday I heard about a HELOC program that can be used as a first for 10 years at a fixed rate. I know that a number of lenders are making jumbo loans... even some hybrid types of stated income jumbo loans.. with 10%-20% down if you have a good FICO score and verifiable assets. I know people are still buying and selling homes although at a slower pace so far this month. I know that you need to pick a reputable lender who knows the market and can offer you not only sound financial advice but has a lot of connections with a number of lenders.

I know there will be some people who are in trouble and will have to sell. I know there will be some people who will go into foreclosure. I know there will be some short sales. I know there will be some buyers who will no longer qualify for a loan as high as they need to buy the home of their dreams. These are things I know because these things always happen.

I know that in 1979 interest rates jumped from 11% to 17% in less then 6 months and the credit market had almost no liquidity. I know that in the 80's the S & L's went under because of bad judgment by lenders. I know that in the 90's we had massive foreclosures because people lost their jobs and were unable to find new employment. I know that the market always rebounded. I know this market is totally different from others in the past yet is very similar to all of them.

I think we will make it through a little bruised but intact to the dismay of many who are hoping for a market collapse. I know only time will tell where this market is headed. I know that by the time people figure out it is time to buy the best deals will have gone to those who took a chance in the market because this is the way it always happens. Now you know what I know... so let's see what's happening in Manhattan Beach

Manhattan Beach: Market Snapshot August 25, 2007
(click on graph to enlarge)

Market Price Ranges

Manhattan Beach: Market Snapshot May 6, 2007

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