School has started and that means that the end of the Summer real estate season has hit the Beach Cities. As is typical of this time of year, home sales volume will continue to slow. Interest rates should remain fairly low well into next year. However regulations will continue to be strict for most borrowers. Conforming and jumbo conforming loans have seen a number of new regulations and changes in rules this year.
The first time buyer's tax credit is scheduled to end in a few weeks. There is a lot of talk about not only extending the credit but increasing it to $15,000 and making it available to all buyers regardless of income or home price. The higher conforming jumbo loan ($729,750 or less) is once again scheduled to expire at the end of the year as it did last year unless Congress extends it. This created a lot of issues in our market last year as the upper limit was not available from November 2008 until almost the end of April 2009. If the same thing happens again this year you will once again see big declines in sales volume for entry level homes.
Rumors abound about thousands of new foreclosures hitting the market in October but so far they remain just that rumors. Compared to other parts of the state there have been very few bank owned properties(REO's) hitting the market in the Beach Cities. As prices continue to decline and unemployment remains a problem, I expect we will see an increase in bot REO's and properties being offered as short sales. However many of those will not go through as banks will not accept a short sale unless the owner can prove a hardship other then a decline in value.
As expected sales volume for August was below levels for June and July in all the Beach Cities. Inventory is down in Manhattan Beach but has increased in Hermosa Beach, Redondo Beach and El Segundo. Pending sales are holding relatively steady in all the Beach Cities compared to last month.
South Bay-Beach Cities: Sold August 2009
The first time buyer's tax credit is scheduled to end in a few weeks. There is a lot of talk about not only extending the credit but increasing it to $15,000 and making it available to all buyers regardless of income or home price. The higher conforming jumbo loan ($729,750 or less) is once again scheduled to expire at the end of the year as it did last year unless Congress extends it. This created a lot of issues in our market last year as the upper limit was not available from November 2008 until almost the end of April 2009. If the same thing happens again this year you will once again see big declines in sales volume for entry level homes.
Rumors abound about thousands of new foreclosures hitting the market in October but so far they remain just that rumors. Compared to other parts of the state there have been very few bank owned properties(REO's) hitting the market in the Beach Cities. As prices continue to decline and unemployment remains a problem, I expect we will see an increase in bot REO's and properties being offered as short sales. However many of those will not go through as banks will not accept a short sale unless the owner can prove a hardship other then a decline in value.
As expected sales volume for August was below levels for June and July in all the Beach Cities. Inventory is down in Manhattan Beach but has increased in Hermosa Beach, Redondo Beach and El Segundo. Pending sales are holding relatively steady in all the Beach Cities compared to last month.
South Bay-Beach Cities: Sold August 2009
South Bay-Beach Cities: Sold July 2009
South Bay-Beach Cities: Sold May 2009
South Bay-Beach Cities: Sold April 2009
South Bay-Beach Cities: Sold March 2009
South Bay-Beach Cities: Sold February 2009
South Bay-Beach Cities: Sold January 2009
South Bay-Beach Cities: Sold December 2008
South Bay-Beach Cities: Sold November 2008
South Bay-Beach Cities: Sold October 2008
South Bay-Beach Cities: Sold September 2008
South Bay-Beach Cities: Sold August 2008
South Bay-Beach Cities: Sold July 2008
South Bay-Beach Cities: Sold June 2008
South Bay-Beach Cities: Sold May 2008
South Bay-Beach Cities: Sold April 2008
South Bay-Beach Cities: SOLD March 2008
South Bay-Beach Cities: Sold February 2008
South Bay-Beach Cities: Sold January 2008
South Bay-Beach Cities: Sold November 2007
South Bay-Beach Cities: October SOLD 2007
South Bay-Beach Cities: September SOLD 2007
South Bay-Beach Cities: August SOLD 2007
South Bay- Beach Cities: July Sold 2007
South Bay-Beach Cities: Sold June 2007
South Bay-Beach Cities: Sold May 2007
South Bay-Beach Cities: Sold April 2007
South Bay-Beach Cities: Sold March 2007
South Bay-Beach Cities: Sold February 2007
South Bay-Beach Cities: Sold January 2007
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