South Bay-Beach Cities: Sold September 2008

Real Estate Information on Listings, Pending and Sold properties in the South Bay-Beach Cities September 2008.....



Hermosa Beach Strand...


After another wild ride in the stock market last week the weeek ended with the market up slightly by the close on Friday. The good news is that the credit markets actually seem to be loosening up a bit... the bad news is that the current economic malaise is the new concern as the R word is now an accepted reality. Consumers just can't seem to catch a break.

So far the South Bay economy has held up better the other parts of the County and State but there are no guarantees this will continue. If the credit markets do loosen up then we may see a milder recession locally... if they don't things could get bad for us as well. The problem with recession numbers is that you generally don't know how bad they are until after they are over. However we can count on a general slowdown in a number of areas including home sales while the economy sorts itself out.

Interest rates appear to be coming down slowly after rising last week. The LIBOR is showing declines as the global credit market seems to be settling. Declines in the Prime and LIBOR may mean lower rates for loans that will be resetting in the next 2-4 months. Overall I think we can expect to see rates begin to increase.

The days of the 5.5% fixed rate are over. I'm guessing rates for loans under $729,750** will remain around 6.3%-6.6% for the rest of the year. Jumbo fixed rates will continue to be high although they should drop from the 8.25% level. Jumbo 5/1 ARMS will be reasonable at 6.65%-7%. As I've noted before I'm not sure banks really want to make Jumbo 30 year fixed rate loans and will continue to keep rates on these loans high and encourage buyers to move into ARMS. Who wins the election and how the markets respond will determine where rates wind up next year.

September sales held up fairly well in all the Beach Cities compared to sales over the summer. However with what has been happening in the last two weeks we can expect to see October sales remain low. If the markets finally settle we might see a slight increase in sales by the end of the year.

South Bay-Beach Cities: Sold September 2008(click on graph to enlarge)










** NOTE: If you have been planning on making use of the $729,750 conforming loan ... banks will probably not fund these loans after December 1, 2008 as the loan limit goes down on January 1, 2009 to $625,000...


Dan Green from the Mortgage Reports offers information on what is and may be happening in the mortgage market over the short term. Lou Barnes also offers some insight into what has been happening in the market.



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

South Bay-Beach Cities: Open Houses are Hot!

Last weekend I previewed property on Saturday and showed homes on Sunday. We looked at 6 properties. Most of the six had Open Houses and were very busy. The same was true on Saturday.. there were not as many Open Houses but most of them had a lot of people.

In the last two weeks Buyers appear to have returned to the market. Many are waiting to see if rates drop but they are looking at houses. The people visiting open houses are no longer the neighbors out for an afternoon stroll or looking for decorating ideas. These people are looking for property.

Prices have been dropping in the last few weeks. Interest rates may be improving and the credit markets seem to have settled down. These are all reasons that buyers may be returning to the market. The fourth quarter is usually a good time to buy. People who have to close escrow by the end of the year are ready to negotiate price and rates are often a bit lower then in the summer.

It was this time last year when the market picked up after a long period of non-activity. The big question is whether or not Buyers perceive value to have returned to the market. If they do then they will buy... if they don't then a lot of homes will continue to sit on the market.

Beach Cities: Prices.. What Happened in August?

Wow... August has been a month to remember. The big question is what has happened to real estate and home prices in the Beach Cities of Manhattan, Hermosa, Redondo and El Segundo since August 1, 2007. I know the month is not technically over yet but thought I would post some numbers for all the Beach Cities based on what happened from August 1 - August 30, 2007. The figures reflect new listings and pending sales ( in escrow) since August 1, 2007

Manhattan Beach:

Overall not a great month to be sure but not bad when you consider what's going on in the market. Lot's of high priced listings hit the market this month. However there were also a number of homes that were priced pretty well. One smart builder has at least three homes that just hit the market and all are priced well under the competition.

Listings:
There were 21 home listings ( I'm not counting relisted) 7 were under the $ 2 million mark... 6 were over $3 million.. and the other 8 were in the $2-$3 price range.
There were 5 townhome listings.. two are listed under the price of recent sales of similar units.
Pending Sales:
There were 15 pending home sales and one was 1212 The Strand ... listed at $10.9 million and sold immediately at close to full price. There were lots of buyers looking at this one.... it sold 2 hours after the Broker's Open. This is a record price for a home in Manhattan Beach. 10 of the 15 pendings were under $2 million.
There were 4 townhomes that went into escrow. Two were new construction over $2.4 million

Hermosa Beach:
Lots of new townhomes hit the market and compared to Manhattan Beach the prices are very good. The new listing at $9.5 million on Amby will bear watching. This is a seculded cul de sac with stunning views for those who value their privacy.
Listings:
There were 7 home listings. As in Manhattan Beach, there is a very expensive new custom home listed at $9.5 million. There are 2 others over the $3 million mark.. 2 just a bit under the $3 million mark and the other 2 are under $2 million.
There are 20 new townhome listings... 11 are over $1 million but under $2 million. 4 are new construction.
Pending Sales:
There are 4 pending home sales after August 1, 2007.. Three were under $1 million.
There are 4 pending townhome ssales... all are over $1.3 million... Hmmmm.

North Redondo:
Not a great month for townhomes sales in North Redondo. Next month is going to be pretty dismal for closed escrows. But home sales were not too bad. Prices seem to be shifting downward with a number of properties showing price reductions.
Listings:
There were 17 home listings and 6 of those were over the $1 million mark.
There were 20 townhome listings... 10 of those were under $700,000.
Pending Sales:
There were 9 home sales in August. Five were under the $800,000 range.
There were 12 townhome sales and surprisingly 9 were over $800,000 and of those 3 were over $1 million.

South Redondo:
It was a pretty good month for South Redondo.. especially in the townhome and condo market. The home market over $1 million had a number of sales.
Listings:
There were 9 home listings. Four were over $1.5 million.
There were 18 townhome listings. Six were listed over $1 million and 5 are new construction.
Pending Sales:
There were 9 homes that went into escrow and 8 of those were over $1 million
There were 21 townhomes and condos that went into escrow after August 1. Nine were over $1 million.

El Segundo:
El Segundo is a little different from the rest of the Beach Cities. Not a lot of new listings this month.. and not many sales either. One thing I am noticing is that there is more for sale in The Grand Tropez then usual.
Listings:
There were 2 home listings.
There are 5 townhome/condo listings. Two were under $500,000.
Pending Sales:
There were 2 home sales.. both under $1 million
There were 3 townhome/condo sales.. all under $800,000.

Manhattan Beach: Market Snapshot August 25, 2007

Downtown Manhattan Beach

The last three weeks have been like driving a car downhill without brakes. No one knows what will happen at the bottom of the hill but we all hope for a safe stop without anyone getting hurt. There is a lot of speculation about how the woes of the credit market will affect the Beach Cities and Manhattan Beach in particular.

I have no answers because there are no immediate answers...just a lot of questions that can only be answered over time. All I can share at this time is what I do know....

I know that we are not seeing a run up in foreclosures notices in Manhattan Beach and the Beach Cities. I know that if you have to refinance you can get a 90% LTV jumbo loan around 7%-7.5% fixed ( maybe a bit less) or a 6.5% adjustable providing you don't take any cash out and yesterday I heard about a HELOC program that can be used as a first for 10 years at a fixed rate. I know that a number of lenders are making jumbo loans... even some hybrid types of stated income jumbo loans.. with 10%-20% down if you have a good FICO score and verifiable assets. I know people are still buying and selling homes although at a slower pace so far this month. I know that you need to pick a reputable lender who knows the market and can offer you not only sound financial advice but has a lot of connections with a number of lenders.

I know there will be some people who are in trouble and will have to sell. I know there will be some people who will go into foreclosure. I know there will be some short sales. I know there will be some buyers who will no longer qualify for a loan as high as they need to buy the home of their dreams. These are things I know because these things always happen.

I know that in 1979 interest rates jumped from 11% to 17% in less then 6 months and the credit market had almost no liquidity. I know that in the 80's the S & L's went under because of bad judgment by lenders. I know that in the 90's we had massive foreclosures because people lost their jobs and were unable to find new employment. I know that the market always rebounded. I know this market is totally different from others in the past yet is very similar to all of them.

I think we will make it through a little bruised but intact to the dismay of many who are hoping for a market collapse. I know only time will tell where this market is headed. I know that by the time people figure out it is time to buy the best deals will have gone to those who took a chance in the market because this is the way it always happens. Now you know what I know... so let's see what's happening in Manhattan Beach

Manhattan Beach: Market Snapshot August 25, 2007

(click on graph to enlarge)

Market Price Ranges

Manhattan Beach: Market Snapshot August 5, 2007

Manhattan Beach: Market Snapshot July 18, 2007

Manhattan Beach: Market Snapshot June 25, 2007

Manhattan Beach: Market Snapshot June 2, 2007

Manhattan Beach: Market Snapshot May 6, 2007

Manhattan Beach: Market Snapshot April 23, 2007