Monday, January 14, 2008

South Bay-Beach Cities: Today in Real Estate....

Today has been a rather interesting day for real estate related matters. On the one hand the LA Times has a front page article in the business section on the increase in defaults that appear to be happening in affluent communities where homes were financed by option arms. Whoops... is this a preview of things to come in the Beach Cities.

Over at The Daily Breeze ... the lead article in the local news section notes that figures from The South Bay Association of Realtors released today show an increase of 14.3% in prices in the South Bay-Beach Cities for homes that closed escrow in December 2007. Hey.. we like this scenario better.

Meanwhile Manhattan Beach Confidential has a post about the troubles with defaults in the Jumbo loan market.. which just coincidentally appear to make up almost half the loans in California. Oh Dear.. is this another nail in the coffin of Manhattan Beach real estate ?

Over at Market Watch it seems that the stock market is delirious over the prospect of IBM and HP posting better then expected numbers. Of course Citigroup stock is also up because they are getting a $10 Billion cash infusion. even though they are writing down $20 Billion while slashing dividends by $5 Billion... Yep.. that's Billion... but this is good.. right.. they are now only down by $5 Billion?

Oh and let's not forget the recession... it is either here, on the way or maybe it's almost over. The problem is that no one knows anything for sure.. and won't until we are almost out of it... I guess you will know for sure if you lose your job..

And surprise.. surprise.. Credit Suisse is touting US Stocks as a Good Buy for the first time in years. They seem to think the FED has our economy under better control then the Powers that be in other countries. Oh and lest I forget... they think we will see a break soon in our housing problems soon.... So I'm wondering what do these guys know that we don't...yet?

Of course all the Presidential players have a plan to get us out of the mess we are in.. but unfortunately none of them can do anything until January 20, 2009. With any luck the worst of the problem may be behind us by then.

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