Wednesday, September 28, 2011

Beach Cities: Sold June, July August 2011

Home Sales for Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo for June, July and August 2007-2011..

If you are confused about where the housing market seems to be headed... you have lots of company!  Even the experts can't seem to get a handle on what is happening..  In fact  the same story can be seen from different points of view... check out the LA Times  and the Daily Breeze  headline views of August home sales.

The graph above  for home sale volume in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo for June, July and August  2007-2011  indicates some very mixed messages.  Manhattan Beach, the most expensive of the Beach Cities,  had more sales in the summer of 2011 than in 2007 as did El Segundo.  South Redondo sales are  fairly stable while Hermosa and North Redondo saw sale volume declines.    

This is a very interesting time in our local real estate market.  Prices are down and in many sub areas are still looking for some sign of stability.  Inventory is down across the board with the exception of Hermosa Beach where inventory rose by 4 properties since mid September. Interest rates are still hovering around 4.2% for a 30 year fixed rate loan.  5 year adjustables are 2.75% for conforming loans ( $625,500 or less).  Finley Taylor from US Bank reports  Jumbo loan  rates are slightly higher at 4.875% with 0 points up to a $1,250,000 loan max... significantly below the 7%-8% we thought was amazing  just a few years ago.

For buyers at the entry level  in the Beach Cities the combination of low rates and falling prices mean it may be cheaper to buy than to rent.  I have 2 clients who are closing escrows this month who are paying less on their mortgage  than they were paying in rent.  This isn't true at all price points but definitely at the entry level. 

Beach Cities: Sold June 2011 

Beach Cities: Sold July 2011

Beach Cities: Sold August  2011

1 comment:

minerva @ park city ski homes said...

Well, we thank God for trends but we can never really tell or predict what happens next to the whole real estate market. :D