Manhattan Beach Real Estate-Redondo Beach Townhomes: Beach Cities: Sold January 2009

Hermosa Beach

So far February 2009 is quite month. First Congress passed and the President signed a $787 Billion stimulus bill . The White House released details of The Mortgage stability plan and it seems that California finally has a budget. What impact these three major programs will have on the South Bay-Beach Cities real estate market remains to be seen.

A few buyers will be able to take advantage of the $8000 buyer tax credit, but they will have to buy a home before November 30, 2009. The increase in the conforming loan limit to $729,750 will be a benefit for most buyers in the Beach Cities. It is unlikely that many homeowners who are in trouble in California, let alone the Beach Cities, will see any benefits from the Mortgage stability plan as it appears to only apply to loans under $417,000( although they may include some loans larger then that as new loan limits are higher). Those with Jumbo loans need not apply. As for the new State budget... well... we will all be paying a lot more in taxes and fees.

Meanwhile back to the Beach Cities real estate picture. January was a repeat of December and November. However sales do appear to be looking up slightly... especially in Redondo Beach. Since February 1, 2009... there are 9 pending sales in El Segundo, 15 in Manhattan Beach, 9 in Hermosa, 20 in North Redondo and 21 in South Redondo. While not exactly mind numbing, they are better numbers then we saw in the last few months. As prices continue to decline we should see some additional sales, especially in the entry levels, as the new loan limits of $729,750 kick in again.

The upper end of the market is seeing an increase in inventory and a decrease in sales. There are 39 homes in the Beach Cities priced at $4,000,000 or more with just 2 pending sales. Not that this price range was ever a fast mover, but there seems to be more inventory hitting the market then we saw in previous years.

South Bay-Beach Cities: Sold January 2009