Real estate sales in all the Beach Cities are down and much slower than last year at this time. Buyers remain unsure about where the economy is headed. The reports that come out of Washington are mixed.. one day the news is great and the next not so hot....
I was reading an article this morning that puts some interesting perspective on the "economic recovery". The article notes that it has been 2 years since the recession ended but not much has changed in the overall economic picture.
While real estate values in the South Bay -Beach Cities have held up better than in other parts of Los Angeles County we have seen values decline. The current market seems to be on the flat side but that could change in October when the conforming loan limits drop from the current $729,250 to $625,000. Home prices have declined but losing $100,000 on conforming loan limits will have an effect on how buyers perceive the market... even if the effect is more perception than reality.
While the difference might not be felt as much in Manhattan Beach or Hermosa Beach, it will affect the Redondo Beach and El Segundo real estate markets as entry level prices are lower. Currently the difference in interest rates for a jumbo vs a conforming rate is not a large amount but qualifying guidelines may well be a factor. If you have a loan over $625,000 that you are planning to refinance now is the time to talk with your lender.
Beach Cities: Sold May 2011