Manhattan Beach Real Estate-Redondo Beach Townhomes: Manhattan Beach: Market Snapshot October 13, 2008

Manhattan Beach, CA Market Snapshot of active, pending and sold homes as of October 13, 2008....

Manhattan Beach: Liberty Village home

While the market today didn't exactly float like a butterfly...it also didn't sting like a bee which is possibly the best news we have seen in the last 10 days. The gains made yesterday in the financial sector held up today. Even the LIBOR saw a slight decrease which could be good news for homeowners who have ARM loans that will be adjusting in November. But as was noted by the volatile market swings last week it may be awhile before we see stability return to the financial/credit markets.

If you are selling or buying a home in Manhattan Beach or the Beach Cities, the health of the credit markets is of prime importance. Dispite all the rumors qualified buyers can get loans and close escrow. The key however is being sure you are qualified before you make an offer. That means really sitting down with a lender and going over exactly what you you will need for a down payment along with some cash reserves.

It also means being prepared for the fact that a 10% or less down payment is not going to work unless you are obtaining an FHA loan. If you are looking at conventional financing you will need at least 20% for a conforming loan less then $729,750, perhaps 25%-35% on loans between $729,000 and $1.5 million and probably 40% on loans over $1.5 million. You will also have to prove that you have some cash reserves beyond your down payment. In other words you have to have sound financial resources along with credit scores that are well over a FICO of 720.

If you are a seller you may need to consider carrying back a portion of the sale price as a second trust deed to help a buyer meet the higher LTV(loan to value) requirements of lenders. This means you may wind up initially with a smaller net from the property but could make up that difference by the interest you will receive on the note. It may also mean that as a seller you are going to pay some of the buyer's closing costs to free up additional money needed for a down payment. You will have to be prepared for the fact that you may have to consider a few of these items once you are in escrow if you want the sale to close.

Another item to consider is the appraisal. Lenders are going into their cautious mode which means that appraisals may start comng in low. In today's market that may well mean adjusting the sale price at the last minute. Although Manhattan Beach and the Beach Cities have not seen a huge number of foreclosures that doesn't mean we don't face downward pricing pressures.

September sales were not too bad considering the overall financial market... with 23 homes and 5 townhomes closing escrow. The current inventory is 178 homes ** and 31 townhomes for sale. There are 32 homes and 7 townhomes in escrow... 9 homes and 2 townhomes have gone into escrow since October 1, 2008. so far only 3 homes and 1 townhome have closed escrow since October 1, 2008

Manhattan Beach: Market Snapshot October 13, 2008(click on graph to enlarge)

Manhattan Beach : Price Ranges October 13, 2008

Manhattan Beach: Market Snapshot September 15, 2008

** The MLS shows 184 active but 5 are duplicate listings from other boards that are now part of CARETS and another is a townhome in Manhattan Village listed as a home by an out of area broker.

4 comments:

Anonymous said...: So 4 houses in 13 days with an inventory of 179 houses gives a supply of 19 months of houses at current sales rate?; 10/15/08, 7:41 AM
Kaye said...: Anonymous 7:41,
Yep.. 4 closed with 9 homes and 2 townhomes going into escrow since October 1, 2008. This time of year is always slow but with the market up and down buyers are keeping a close eye on things.; 10/15/08, 8:08 AM
Anonymous said...: melissadata is now showing 12 homes posted. Is MLS showing the same?; 10/16/08, 6:44 PM
Kaye said...: anonymous 6:44,
No... MLS is showing 7closed sales and tax records are showing 9 since October 1, 2008; 10/16/08, 10:51 PM