Beach Cities: Homes and townhomes sold in September 2011
North Redondo 2 on a lot Townhome
September is always a tough month for real estate sales in the South Bay-Beach Cities. This September was no exception. The good news is that the number of sales was up for Hermosa Beach and South Redondo over 2010 and just slightly less in North Redondo, Manhattan Beach and El Segundo. The bad news( for sellers) and good news (for buyers) is that prices were down in almost all the Beach Cities.
Much of the decline in price levels is due to short sales. In the last two weeks North Redondo is posting significantly lower prices for a number of REO's and short sale 2 on a lots and buyers are waiting in line to purchase at the new price levels. Another significant factor is that many owners want to sell before the end of the year and have realized that they need to cut their asking price now to be sure escrow closes by the end of the year.
But before everyone gets excited a lot has been happening this week that may change the picture a bit. The Administration announced yesterday their new plan for refinancing properties of homeowners who owe more than their home is worth . But as all programs put forward by the government there are a few hitches in their get along so read the fine print carefully before you get too excited.
If all goes as the administration hopes folks will be refinancing right and left. In fact banks will be so busy with refi's they might not be able to deal with buyers who want to purchase a new home. Dan Green the author of The Mortgage Reports has written an interesting article on why interest rates may be headed upward in the future.
South Bay-Beach Cities: Sold September 2011