Manhattan Beach Real Estate-Redondo Beach Townhomes

Manhattan Beach: January-June 2000-2009... sales by month

2009-07-06T14:05:00.000-07:00

No matter how much our local Beach Cities real estate market has changed in the last few years a number of things always remain the same when you have a declining real estate market. Sellers never want to accept how much prices have dropped and buyers never believe that they have dropped enough.

Sometimes it helps to see a larger survery of sale data. I've pulled the number of sales, median sale price and the price per square foot from January-June 2000-2009. Although sales have picked up in recent months they are still quite low when compared to prior years. I don't think there is much doubt that the drop in volume is closely related to the lack of jumbo financing since 2007.

Looking at the numbers there is no question that the median price and the price per square foot took a major dive this year... and seem to be hovering between 2004 and 2005 numbers. While this is slightly better then the figures for LA County as a whole it does show that values in Manhattan Beach have seen some major adjustments over the same period last year.

Manhattan Beach: January-June 2000-2006.. Sales by month(click on graph to enlarge)

Manhattan Beach: January-June 2007-2009 Sales by month.

*** These are single family sales from the MLS and do not include townhomes, condos or income property or off MLS sales...

Manhattan Beach: Second Quarter Sales January to June 2007-2009

2009-07-04T14:55:00.000-07:00

Ercoles.. the oldest restaurant in Manhattan Beach

As I noted a few months ago when I posted the First Quarter Sales figures for Manhattan Beach this will become a regular feature every quarter. There is a lot of information about our local real estate market that these numbers provide. Although I'll admit that over the last few days I'm seeing numbers everywhere and even find myself dreaming about median price and price per square foot.

We all know that statistics can take on a life of their own. When viewing our local Manhattan Beach real estate market , the numbers tell their own tale. If you look at the numbers on a month by month basis things look pretty bad. While still dismal, when viewed over time, a pattern begins to emerge showing that the number of sales, while significantly lower then those in 2007, have been fairly stable over the last two years.

The volume of sales is down about 40% from 2007 and roughly 16% from 2008 for the first part of the year. The kicker in the deck is prices. Since the begining of the year home prices have dropped about 22% compared to the same period last year. There were 112 homes that sold from January to June 2009. 92 of them had at least one price reduction before finding a buyer, 8 were sold over the list price and 13 appear to have sold at the listed price.

There is more going on now then these number show. Currently there are 150 homes for sale in Manhattan Beach. Inventory has dropped dramatically because homes are selling.... the big question is what is selling. There are 81 properties pending...67 homes and 14 townhomes. The median asking price for homes that are in escrow is $1,575,000 and for townhomes it is $1,194,000. The median sold price for homes in June was $ 1, 402,500 and $1,217,000 for townhomes.. But.... the median list price for homes that are for sale is $2,349,500 and $1,364,000 for townhomes.

Herein lies the problem with our current market. Of the 150 homes for sale only 65( less then half) are priced under $2,000,000. There is very little demand for homes priced over $2,000,000 for a number of reasons, but mainly because of financing. While we have our share of buyers with some big bucks... they are not in the majority. Most buyers looking in Manhattan Beach today have 30%-50% cash needed for a down payment on a home under $2.5 but they still need some type of bank financing. There are lenders offering loans over $1.5 but most lenders really don't want to make loans over that number. So I'm guessing that one of two things will happpen... either these higher end homes will be taken off the market or you are going to see some very hefty price reductions in the future. I also think you are going to see an increase in owner financing to bridge the gap.

Manhattan Beach: Sold January-June 2007-2009(click on graph to enlarge)

Manhattan Beach: Sold April-June 2007-2009

Manhattan Beach: Sold West of Sepulveda January-June 2007-2009

Manhattan Beach: Sold West of Sepulveda April-June 2007-2009

Manhattan Beach: Sold East of Sepulveda January-June 2007-2009

Manhattan Beach: Sold East of Sepulveda April-June 2007-2009

***All Data is based on MLS information .. Sales not on MLS are not included... some charts have been adjusted to reflect an additional posted sale for June 2009

South Bay-Beach Cities: July 4th Events

2009-06-30T12:21:00.000-07:00

Rose Bowl will host their 83rd annual celebration..

July 4th Event in the South Bay-Beach Cities:

El Segundo:

Plan a day of fun in El Segundo with two events..

10:00 am-2:00 pm Rec Park
5:00 pm -9:00 pm 300 and 400 block of Eucalyptus
Lots of games and food and live music

9:00 pm.... Fireworks at Stevenson Field (tickets a must for grandstand seating.. $3.00 pre-sale $5.00 at the gate)

Manhattan Beach:
Pool Party July 4, 2009....
10:00 am-2:oo pm at Begg Pool
$ 5.00 to swim and have snacks

Hermosa Beach:
No city planned activities but a lot of parties along the Strand

Redondo Beach:

Seaside Lagoon is the setting for a huge July 4th celebration

The fun begins at 2:00 pm and continues until 10:00
The fireworks and Laser show starts at 9:00 click this link for more information and prices of tickets on the sand.

The Village Runner is sponsoring a 5K run .. starts at 8:00 at the Village Runner located at 1811 S. Catalina Ave., Redondo Beach, CA... They will be accepting shoe donations for the Los Angeles Mission.

Torrance:

Wilson Park is the place for the annual Old Fashioned Fourth of July Celebration

The fun starts at 11:00 and finishes with a Fireworks show at 9:00pm

Palos Verdes Estates:

Old Fashioned Independence Celebration at Lunada Bay Elementary School begins at 9:45 am

A bicycle parade and pie-eating contest are some of the activities

Rancho Palos Verdes:

34rd annual Independence Celebration runs from 11:00 am -5:00 pm at The Rancho Palos Verdes City Hall off Hawthorne Blvd.

There will be music, Arts & Crafts, rides, a pie-eating contest and a hula hoop contest.

Lawndale:

July 3, 2009...This year is Lawndale's 50th Fireworks Anniversary... The day starts with live entertainment, food, crafts and face painting... The Fireworks show starts at 5:30 p.m. at Leuzinger High School.

Westchester :

Don't miss the annual parade at Loyola and Manchester.. it starts at 11:00 am at Loyola Marymount University and continues along Loyola Blvd. to Westchester Park.

Call (310) 645-5151 for more info

Carson:

The Los Angales Galaxy Soccer Team will host a huge fireworks extravaganza at the Home Depot center after their soccer match earlier in the day... starts at 8:00 p.m

Marina del Rey:

Catch the show from either Burton Chase Park or Fisherman's Village.. The show starts at 9:00 p.m.

Rose Bowl photo : Courtesy of Joits at flickr.com

South Bay-Beach Cities: Appraisal vs Price...What happens when they are different..

2009-06-29T13:16:00.001-07:00

In May I wrote a post about the changes in the appraisal rules that were taking place as of May 1, 2009 for residential property appraisals. I know some of you thought I was exaggerating when I noted that we just might be seeing out of area appraisers using comps from North Redondo to value Manhattan Beach property.

It wasn't a joke and I had it happen 2 weeks ago on a property I sold in Manhattan Beach. The appraiser was from Granada Hills and worked for a company out of Costa Mesa. He valued the property a $100,000 below the sale price... He used a similar home on a 7500 lot in east Manhattan, a home ineast Manhattan on a 4900 sq ft lot and a newer two on a lot townhome in North Redondo which he said was a single family home. He took a picture of the property but still didn't quite figure out that that it was not a 67 year old 915 sq ft house. He also used another home in North Redondo and a pending sale in Manhattan on a smaller lot that was very close to Aviation.

When was questioned about the value he stood by his appraisal and said he was very familiar with the South Bay and added homes in the Golden Hills across from Mira Costa that were on 25x100 lots as additional justification for his value.

The problem of course is how this affects the buyer and seller. The buyers wound up having to resubmit their loan to a new lender because under the HVCC rules if the appraisal comes in at the sale sprice they do an automatic review but if it comes in uner the list price they will do an appeal but not a full r eview appraisal. The buyer had to pay for a new appraisal. This time the lender requested that the third party company use a local appraiser... and the local appraiser brought in a price that was higher then the sale price.

The buyer is confused... how can this property be worth $xx the day they purchsed.. then only be worth $x and then suddenly be worth $xxx a week later. The buyers now believe there is something fishy going on with the lender to get such different values by so called "professionals" and they feel they are being screwed on the price. I can't say I blame them for their feelings. The want to use the first appraisal value and feel the second value was too high. The whole thing stinks.

The seller, on the other hand is relieved that the second appraisal was so much higher. However all is not over because now that the appraisal came in a full value it must go through a review appraisal. This was not required when it came in under the agreed upon price but it is required if it comes in at the price. I hope everyone is following this scenario...

Since May 1, 2009 when the new law was passed... at the behest of Andrew Cuomo... there have been numerous problems very similar to the one I noted above nationwide. Most of the issues are based on two things... first the price the buyer pays for an appraisal has gone up a lot.. in the past my buyers would have paid about $375 for an appraisal ... this one was almost $460. If there were questions about the appraisal, a review appraisal would have immediately been ordered at no cost to the buyer. The buyer now had to pay full price for a new appraisal... that just doesn't seem right.

The second issue is that the third party companies who were brokering appraisals sent them to appraisers who were willing to accept the least amount of money. This means that most of the appraisers used by these companies were new or possibly not quite as qualified. Local and /or experienced appraisers were no longer wanted because they expected to be paid for their knowledge and expertise. Now this is not to say that a newly licensed appraiser isn't competent... many are very good... but if they are coming from Riverside or Northeast Orange County then they just may not know the area.

The complaints have been so numerous from across the country that on June 25th, Representatives Childers (D-MS) and Miller (R-CA) introduced HR 3044, legislation that calls for an 18 month moratorium on HVCC. Whether or not the bill passes... and it looks as if it will... the issues has been addressed far quicker then I expected.

I believe there should be some changes. Lenders should not be able to influence appraised values. However lenders should be able to request that local appraisers be used. There is a big difference in price between North Redondo and East Manhattan. There is more then a $5000 difference in price between a 4900 sqft lot in east Manhattan and a 6600 sq ft lot in east Manhattan and there is an even bigger difference between a 5000 sq ft lot in North Redondo and a 6600 sq ft lot in east Manhattan Beach.

South Bay-Beach Cities: Sold May 2009

2009-06-29T12:18:00.001-07:00

Hermosa Beach... The Strand

Pending Sales appear to be continuing to increase in all the Beach Cities while actual closed sales dropped slightly everywhere with the exception of El Segundo. There is a lot happening in the local markets.

In El Segundo inventory is down while pending sales are about the same as last month and closed sales saw a big jump. This is the most activity El Segundo has had in a long time.

In Manhattan Beach inventory is down by a lot. .. from 220 homes and townhomes last month to 191 today. Pending sales are up by 11 sales over last month but closed sales were about the same as last month. Of interest in Manhattan Beach is that the median listing price shot up to $2,229,000 from about $1.9 for the last few months. I believe this is because most of the homes that have sold are under $2,000,000 which leaves a larger number of higher priced homes just sitting.

North Redondo is holding fairly steady in the amount of inventory, the number of pending sales and closed sales. Prices however were all over the place with the median price on homes down a lot and on townhomes and condos the exact opposite.. prices were up significantly over the previous months.

South Redondo saw inventory holding fairly steady. Pending sales for homes, townhomes and condos was almost the same as last month. The overall number of closed sales was about the same however closed sales for homes were down while those for townhomes and condos were up.

I think we can expect to see the numbers for all the beach cities to continue to fluctuate over the rest of the summer. Typically sales hold up fairly well until August when they begin to get very slow. We might see the pattern change a bit this year if interest rates continue to be low. There are still a lot of folks who are trying to decide if they should buy now with low rates or wait to see if prices take a bigger dip.

South Bay-Beach Cities: Sold May 2009( click on graph to enlarge)

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: SoldOctober 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: SOLD September 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 March 2007

South Bay-Beach Cities: Sold February 2007

South Bay-Beach Cities: Sold January 2007

Manhattan Beach: Market Snapshot June 15, 2009

2009-06-16T22:04:00.000-07:00

Manhattan Beach: Days on Market June 15, 2009

After a long cold winter and an insipid spring the Manhattan Beach real estate market seems to be picking up. A somewhat stable stock market, low interest rates and the return of jumbo loans by most of the major lenders have been factors. However the biggest factor seems to be lower prices... what a surprise!

While prices remain higher then many predicted they have dropped since last year. Inventory is dropping while pending sales are increasing. Since yesterday ( June 15, 2009) 8 more homes are pending for a total of 63 homes and 16 townhomes now in escrow. There are 156 homes for sale today compared to 164 yesterday. MLS data shows 9 townhomes and 20 single family homes closed escrow in May 2009. As of June 16, 2009 2 townhomes and 14 single family homes have closed escrow.

The big question is whether the rise in sales is an indication of the market beginning to stabilize or is this simply a wakeup call to sellers... lower your price and it will sell. A number of the recent sales were properties that had been on the market for well over 6 months and some for as long as 3 years. I'm guessing we will see further price declines, especially if rates start moving upward as inflation concerns become a factor for many investors.

There are a lot of factors that will influence where this market is headed over the balance of the year. If rates remain fairly stable and jumbo loans continue to be available then the market may well continue to move along. However if interest rates take a big jump in the next 2-3 months then I'm guessing the market will slow again as buyers and sellers re-evaluate their positions.

Manhattan Beach: Market Snapshot June 15, 2009(click on graph to enlarge)

Manhattan Beach: Price Ranges June 15, 2009

Manhattan Beach: Market Snapshot May 11, 2009

Manhattan Beach: Market Snapshot April 14, 2009

Manhattan Beach: Market Snapshot March 14, 2009

Manhattan Beach: Market Snapshot February 10, 2009

Manhattan Beach: Market Snapshot January 19, 2009

Manhattan Beach: Market Snapshot December 4, 2008

Manhattan Beach: Market Snapshot November 8, 2008

Manhattan Beach: Market Snapshot October 13, 2008

Manhattan Beach: Market Snapshot September 15, 2008

Manhattan Beach: Market Snapshot August 19, 2008

Manhattan Beach: Market Snapshot July 17, 2008

Manhattan Beach: Market Snapshot July 7, 2008

Manhattan Beach: Market Snapshot June 20, 2008

Manhattan Beach: Market Snapshot June 5, 2008

Manhattan Beach: Market Snapshot April 29, 2008

Manhattan Beach:Market Snapshot April 14, 2008

Manhattan Beach: Market Snapshot March 31, 2008

South Bay-Beach Cities: Sold April 2009

2009-05-29T22:36:00.000-07:00

Bike Path... Manhattan Beach

When you review sales in the South Bay-Beach Cities a few things stand out... sales are up and inventory is down a bit from the highs of the last few months. The biggest thing you will notice is that there is a huge difference between the median list price and the median sold price for homes in all of the Beach Cities, with the exception of North Redondo.

The biggest disconnect between the asking price and the actual sale price for homes and townhomes is in Manhattan Beach and South Redondo. In Manhattan Beach the current median list price of a home is $1,899,000 while the median sold price is $1,200,000. In South Redondo the median list price is $1,350,000 and the sold price is $730,000.

There has been a number of articles in the media recently about how sticky the prices have remained in most of the upscale areas in all parts of the country. The general consensus is that prices may soon begin to fall in these areas as the economy continues to falter. In the last few days, with interest rates bouncing around like crazy, there is concern that the flurry of home sales activity in recent months will halt if rates suddenly move upward. I believe that is true.

Pending sales are defintiely up in all the Beach Cities as many sellers have begun to lower their asking price by some substantial amounts. New listings that are priced right are also selling quickly while older listings with high prices continue to remain on the market. I suspect that in the coming months you are going to see prices finally move downward on homes that have been on the market for a long time without finding a buyer. There are a number of properties that have been for sale for well over a year. If owners are serious about selling they will have to reduce the price to a point where potential buyers find value.

The market in North Redondo saw prices adjust in 2007. As prices adapted to the demands of the market rather early we are now seeing the segment of the market possibly reaching the bottom. Last fall you could buy a starter home in North Redondo in the TRW tract for $475,000- $550,000. Those deals are gone. Prices have increased from the lows of October - December. Interest rates have played a part but so have low prices.

South Bay-Beach Cities: Sold April 2009 (click on graph to enlarge)

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: SoldOctober 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: SOLD September 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 March 2007

South Bay-Beach Cities: Sold February 2007

South Bay-Beach Cities: Sold January 2007

Memorial Day: In Rememberance

2009-05-22T09:39:00.000-07:00

We have lost a number of our young people to war over the years. For my generation it was Vietnam that took so many lives. Today it is Iraq and Afghanistan. It doesn't matter what party your identify with or your stance on the war. Memorial Day is a day to remember all who died in the service of their country.

Local Memorial Events:

REDONDO BEACH
1. The city of Redondo Beach invites South Bay veterans and residents to its 2009 Memorial Day ceremony from noon to 1:30 p.m. at the Veterans Park by the Redondo Beach pier, at Catalina Avenue and Torrance Boulevard.

2. The Rev. Bhagavan Friend will hold his annual commemorative of his Empty Chair Memorial to America's Fallen Soldiers. The ceremony will be at 11 a.m. Saturday at 124 Sapphire St.
For more information, call 310-540-6044 or go to http://www.emptychair.org/

RANCHO PALOS VERDES
The 24th annual Memorial Day Observance at Green Hills Memorial Park will be from 10 a.m. to noon Monday.
Keynote speaker will be Michael B. Donley, secretary of the Air Force.
For more information call Green Hills Memorial Park is at 27501 S. Western Ave. in Rancho Palos Verdes. Call 310-521-4460

TORRANCE
Sen. Jenny Oropeza will be the keynote speaker at a service from 11 a.m. to 12:30 p.m. Saturday at the James Armstrong Theatre, 3330 Civic Center Drive.
The families of those killed while serving in the U.S. military will be presented with California flags that have flown over the state Capitol. Capt. Matthew Ferrara of Torrance, and Specialist Lester G. Roque of Torrance, are among those who will be honored. For more information, visit www.senate.ca.gov/oropeza or call 310-318-6994.

South Bay-Beach Cities: New appraisal changes affect both buyers and sellers

2009-05-19T12:30:00.000-07:00

Recently clients made an offer on a home where the seller is utilizing a limited service company. As part of the counter offer the seller wanted to limit the loan approval and appraisal time to 17 days. The seller had been consulting with a "friend" who told him 17 days was more then enough time to get full approval. Obviously the "friend" has not closed a transaction for some time. A few years ago when obtaining a loan was fairly easy and 30 day escrows were common it was possible to get full loan approval in 17 days and that time frame became the norm on the CAR contract of purchase.

However there have been some changes in recent months that make the old time frame no longer workable. Once I explained to the seller about The Home Valuation Code that went into effect on May 1, 2009, he had no problem with a longer time frame. The code established new rules about appraisals and that with the changes there was no way to get approval in such a short period of time. In fact as these changes work their way through the system I'm guessing you will see 25-30 days contingency periods re-emerge as normal time frames.

Since last fall when lenders started tightening up their requirements it has been difficult obtaining full approval in 21-25 days. Now with the changes in the appraisal rules it's going to take a lot longer for a borrower to obtain full approval. The new rules are going to have an effect on both buyers and sellers, so it is important that all parties understand just what is happening. The LA Times had a decent article about the new rules in the Saturday May 17, 2009 business section.

The gist of the changes is that lenders can no longer contact appraisers directly. They are not allowed to order an appraisal by calling an approved appraiser but must instead order the appraisal through a third party company. The borrower must pay the appraisal fee upfront via a credit card to the third party company before the appraisal can be implemented. That company then places the order with one of the appraisers who have agreed to work for them. Banks are not allowed to contact the appraiser at any time for any reason. They can't call up Joe the appraiser and ask where the appraisal is that was due last week. The only contact banks can have are with the third party company.

On the surface this looks to be great.. lenders can't influence appraised values. No inflated values allowed! Transparency in the market at last! Everybody wins! The problem is that , as with all government "new rules and changes", the changes may not prove to be quite as beneficial as the press announcement that preceded them touted.

There are a couple of kickers in the deal that will probably make for new legislation fairly soon. First is that appraisals are going to be a lot more expensive. The "new appraisal companies" are charging a lot more money for an appraisal as they have a lot of overhead. However they are actually paying appraisers less money. This means that experienced appraisers will probably not sign up with these companies.... making the staff for most of them likely to be newly licensed and relatively inexperienced.

The second thing, and to my mind the biggest problem, is that appraisers will probably not be local. Those of us who have been in the business for awhile remember how much fun it was to have an appraiser who lived in Barstow show up to appraise a home in the Sand section of Manhattan Beach. These guys always had trouble with how little lots and houses could cost so much. I remember one guy who thought living so close to the water was a real problem and downgraded the price because there could be rust and mold from all the damp salt air. Homes in east Manhattan often fared even worse. As a rule of thumb if there are not sufficient comps in a neighborhood the appraiser can choose comps within a 2 mile radius. Used to love getting those comps from North Redondo and Hollyglen for a home in the 1300 block of 5th Street.

So what does this mean for borrowers and homeowners. For starters if you are buying, selling or refinancing you will need to plan on a longer time frame to get loan approval. Formal loan approval is always subject to the appraisal being at the sale price or the price needed to establish value if you are refinancing. This may mean that a 30 day escrow is not very realistic so all parties need to plan accordingly.

Another fly in the ointment is that as there is no guarantee that the appraiser will be either local or experienced you can have some real issues about value. Now you skeptics out there may think this is great... lower appraised price means paying less for the property... maybe and maybe not. If the issue becomes a real problem sellers will start demanding changes in the appraisal contingency rules and will likely force buyers pay for a review appraisal if the price comes in too low. The same will be true for those folks who are refinancing... if you need a higher value you might find yourself having to pay twice in order to get a review appraisal done if the old one seems too low.

Overall the new rules or the form they ultimately take may prove to be beneficial for everyone. I would like to see the government make a few other changes... namely that all lending fees be spelled out before a borrower fills out a loan information sheet so that borrowers could really check what companies are charging.

Beach Cities: Homeowner Information about asbestos

2009-05-14T15:01:00.000-07:00

I was recently asked to pass along information about Mesothelioma from the Mesothelioma Cancer Center. The cancer center, as a public service, wanted to try and get information to the public about problems that might be found in homes built before 1980 that still have asbestos.

Asbestos becomes a problem only if it becomes friable... that is crunbling. If the asbestos product is in good condition then there is no problem. Hi-Tech Environmental Services in Manhattan Beach will test any material you think might contain asbestos. They are very inexpensive and quick. They will also remove asbestos products.

Below is the article from the Center:

Homeowners Implementing Green Alternatives to Asbestos in the Home:

The state of California provides a great environment for active lifestyles and is regarded as one of the top states to call home. The path to owning a home is an exciting time for everyone, but one that will bring additional responsibilities. Utilized in thousands of construction and building applications throughout the 20th century, asbestos was a highly regarded mineral due to its heat resistant properties.

Potential Manhattan Beach or South Bay Real Estate home buyers or those remodeling older homes should be aware that homes built before 1980 may still contain asbestos. Due to a steady progression of technology and green sustainable methods, there are many ways to ensure your home or property is asbestos free.

With a variety of home materials on the market still not banned b the federal government, there has been an overwhelming amount of concerned citizens regarding asbestos exposure. California is one of many states implementing sustainable methods of construction. Many new homes that are foreclosed may require renovation or repairs, especially in areas susceptible to natural disasters. This process may require inspection for hazardous materials.

Asbestos exposure is easily prevented by taking simple precautions. Although un-damaged asbestos does not pose any harm, you should be aware that the inhlation of airborne asbestos fibers can cause mesothelioma, a severe lung ailment associated with asbestos exposure. Mesothelioma treatment has varied affects on individuals, with many factors impacting physician prognosis. These include age of diagnosis, latency period and age of diagnosis.

The amount of asbestos-related incidents in the last few decades has lead to asbestos lawyer firms advocating victim rights around the U.S. The negligence involved with the asbestos scandal has been one of greed and dishonesty. Manufacturers of asbestos were aware of its toxic qualities, but repressed this information from the public.

If any asbestos is suspected, the best advice is to leave it un-disturbed. . Sometimes the best action is no action. A home inspector can determine the proper course of action. Asbestos removal in public facilities, homes and workplaces must be undertaken by a licensed asbestos abatement contractor. The removal of asbestos is a finite process that must be done by a professional.

Green alternatives to asbestos include the use of lcynene foam, cotton fiber and cellulose. Cotton fiber is made from recycled batted material and treated to be fireproof. A water based spray polyurethane foam, lcynene features no toxic components.

Recently, congress passed the American Recovery and Reinvestment Act into law. Included in this act were extensions to the tax incentives placed for energy efficiency in 2005, as well as new credits for homeowners who remodel or build using eco-sustainable methods. Existing homes are eligible for a series of efficiency measures that pertain to the home shell (Insulation, Windows, Sealing) worth 30% of the installed cost (materials only, labor is not included in the credit basis).

Manhattan Beach: Market Snapshot May 11, 2009

2009-05-11T21:27:00.000-07:00

Manhattan Beach... Days on Market May 2009

April and May continue to see better sales volume numbers then January-March. The middle and entry levels seem to be be moving... slowly perhaps but they are moving. There are 48 pending home sales, 11 are priced under $1million... 12 of the sales are priced from $1.0- $1.6... 16 are priced at $1.6-$2.0... 7 are between $2.0-$3.0...while 2 are over $3 million. There are 15 pending townhome sales of which 7 are under $1.0...6 are $1.0-$2.0 and 2 are over the $2 million mark.

While the number of homes over $2 million for sale has increased there isn't a lot of movement in the upper price levels. There are 87 homes for sale priced at $2 million plus. At least 24 of those have been listed for 200+ days. There are a number of reasons of course.

The economy is still in a lot of trouble and a lot of folks who had money last year may not be quite as flush this year. It's still tough to find a loan over $1.5 million. You may have a large down payment but if you are not a member of the Private Bank crowd you will find financing tough to obtain and expensive. Also, as with all price levels, many of these homes are simply priced higher then they should be if they want to sell. Finally, a number of these homeowners are not in dire straits and don't have to sell. They will sell if they get their price... if that doesn't happen... they will take the home off the market until the market changes.

Manhattan Beach: Market Snapshot May 2009(click on graph to enlarge)

Manhattan Beach: Price Ranges May 2009

Manhattan Beach: Market Snapshot November 8, 2008

Manhattan Beach: Market Snapshot October 13, 2008

Manhattan Beach: Market Snapshot September 15, 2008

Manhattan Beach: Market Snapshot August 19, 2008

Manhattan Beach: Market Snapshot July 17, 2008

Manhattan Beach: Market Snapshot July 7, 2008

Manhattan Beach: Market Snapshot June 20, 2008

Manhattan Beach: Market Snapshot June 5, 2008

Manhattan Beach: Market Snapshot April 29, 2008

Manhattan Beach:Market Snapshot April 14, 2008

Manhattan Beach: Market Snapshot March 31, 2008

South Bay-Beach Cities: Homeowners...Good Information if you need mortgage help

2009-05-10T13:36:00.000-07:00

In March I wrote a post about government online help for homeowners who needed information about refinancing or loan modification. While the government site can be helpful many homeowners have found that the information there may not have quite fit their situation.

Lew Sichelman is a Washington D.C. columnist who writes a terrific weekly column called The Housing Scene that is usually found in the LA Times Sunday Real Estate section. Lew always provides excellent information for buyers, sellers and even real estate agents. If you don't take the LA Times Sunday edition check out his columns online... you will be glad you did.

Once again Lew offers good advice for homeowners who need mortgage information and or help with their current loans. The guys who gave you FICO scores, Fair Issac, are now offering online help for homeowners who are in trouble with their mortgages. Lew not only gives details about the program but also offers some sage advice to owners who are in trouble and looking for help. Even if you are not having mortgage issues there is a lot of good information for homeowners.

If you are in trouble with your mortgage or think you may have a problem in the future I strongly suggest you read the article. It may save you a lot of grief... not to mention money. I am always happy to answer questions offline for those with specific issues.

The Best Real Estate Blogs in Los Angeles

2009-05-08T10:07:00.000-07:00

Relocation.com is a company about ...well ...relocation. They are a terrific resource for those planning a a move to a new area. Recently they have begun a series of posts on their relocation blog naming the best real estate blogs written by real estate agents around the country. This week their focus was on Los Angeles. I am very pleased that this blog was named as one of the Best Blogs in Los Angeles. ( she noted blushing)

It should not surprise those of us in the South Bay that three South Bay blogs were chosen... after all we know the South Bay is a great place to live.

South Bay Real Estate Blogs:

Beach City Real Estate Info.... Kaye Thomas

Red Square Homes Blog... Blake and Diana Roberts

Palos Verdes Lifestyle... Norma Toering

Best Los Angeles blogs not in the South Bay:

Long Beach Real Estate... Laurie Manny

Pasadena Views... Irina Netchaev

San Fernando Valley Real Estate Blog... Judy Graff

Malibu Real Estate Blog ... Michael Gardner

Phyllis'LA Real Estate Blog ... Phyllis Harb

Up2Date Real Estate ... Doug Willis

Terra Firma ... Christopher Hain

Other Cities:

Best Real Estate Blogs in Minneapolis/St. Paul

Best Real Estate Blogs in Chicago

Keep an eye out for new cities to be added ....

It's a Buyer's Market...So Why Are Prices Still So High

2009-05-05T18:45:00.000-07:00

Manhattan Confidential, our local consumer blog, posted an article today about the decline in sales in Manhattan Beach and the Beach Cities. The post points out two things... the number of sales began to decline in 2002- 2003 ( higher prices mean fewer sales) and 2006 was when buyers started saying no and the market started cooling. Fast forward to 2009 and we have a real estate market that is trying to recover from a lousy economy and a tough lending market. Yet with all the chaos of the last few years prices, with a few exceptions, are still on the high side.

The issue for many Beach Cities' buyers is that while prices have fallen a lot in Manhattan, Hermosa and Redondo; they don't seem to be down as much as many believe they should be. Every news source is telling potential buyers that California has the largest number of foreclosures in the nation and prices are dropping like crazy. The media posts a new statistic every day on how much real estate prices have dropped in California. There are a glut of articles about buying foreclosures and short sales. So why are prices still so high in the Beach Cities?

Last Sunday the LA Times had a terrific front page article that addressed the issue... why some markets are not acting in the way buyers expect. The main thrust of the article is that while prices are down overall, they may not be down as much in the more desirable areas.... i.e. The Beach Cities as say in Riverside. This scenario is very frustrating for buyers and for sellers. Buyers believe that sellers should accept lower prices for homes that have been on the market for long periods of time. Sellers/Banks, on the other hand, want to sell for as much as they can, especially when facing a loss.

While not everyone thinks this is the time to buy... there are a lot of folks who are willing to take a chance and buy now. Most of these buyers don't think we have reached bottom but believe lower prices along with some very good long term interest rates mean it might make sense to buy. The problem is that there is still a big disconnect between where buyers believe prices should be and the prices that many home owners or in some cases banks are willing to accept. Many of my clients are especially frustrated with the prices that banks are setting for short sales.

While we don't have a huge inventory of REO's... there are a number of short sales in all the Beach Cities. Many of these are new construction that didn't find buyers. A number of builders have received NOD's. Logic would seem to say that as these homes have been on the market for a year or more that Banks would be wise to be fairly aggressive about accepting offers from well qualified buyers...but that isn't what seems to be happening.

We have seen an uptick in sales in the last month. This may be a seasonal reaction... spring is historically our buying season. It could be low interest rates. It could be that buyers are seeing a little light at the end of the tunnel in the economy and the housing market. Personally, I think prices still have a way to go before we see the bottom... but the bottom might not be as low as was predicted a few months ago. The kicker for our market will be foreclosures. If we see a spike in the number of foreclosures over the next 6 months then you can expect to see prices drop quite a bit. If we continue to have relatively few foreclosures prices will continue to be soft but will more likely be flat.

South Bay-Beach Cities: Sold March 2009

2009-04-26T15:45:00.000-07:00

The Avenues... South Redondo

Sales are looking slightly better... March numbers were an improvement over January and February but as noted in the Daily Breeze... sales and prices are down this year compared to last year. April figures are looking better then March... with 146 homes and townhomes/condos going into escrow in the Beach Cities since April 1, 2009. There are 15 in El Segundo, 35 in Manhattan Beach, 18 in Hermosa Beach, 37 in North Redondo and 41 in South Redondo.

While these numbers are not even close to the heady figures of 2004, 2005 and 2006 they are an improvement on the numbers posted over last 4 months. However improving sale numbers do not mean the market is reaching the bottom... in fact just the opposite. In the current market sales are looking up for 2 reasons... lower interest rates and declining prices. The properties that are selling are in the entry to lower middle price range for each of the Beach Cities. The upper end of the price spectrum seems to be stuck in a rut with few sales in the offering.

Buyers with cash are hanging tough on what they are willing to pay. There is still a big difference between what buyers will offer and the number sellers want to see. Until those figures get closer sales will continue to be slow.

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: SoldOctober 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: SOLD September 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 March 2007

South Bay-Beach Cities: Sold February 2007

South Bay-Beach Cities: Sold January 2007

55+ Information: Communities and Sales Activity January - March 2009

2009-04-26T14:58:00.000-07:00

South Bay 55+ Communities....

Take a quick tour of a few of the communities located in the South Bay.

I've been receiving a number of calls asking for information about 55+ Communities in the South Bay. There are a number of communities and more being built. While most are located in Torrance there is one completed in Redondo ( Breakwater Village) with another on the way (Montecito). One was recently completed in Rolling Hills Estates and there may be more on the Hill in the future. There is also a lovely Mobile Home Park in San Pedro in South Shores. I will add more information on the park later. I'll be posting information on 55+ communities on a quarterly basis. You can find more 55+ related information on my website.

This is a list of all the communities in the South Bay:

SUNSET GARDENS:
This complex is located on Crenshaw Blvd. It is across from the Cross Roads Shopping Center. At least one resident must be 55 years old. These units are mostly 1 bedroom and are the least expensive of the three complexes.It has an indoor pool, shuffleboard area, putting green and other amenities.

NEW HORIZONS:
This lovely complex is on Nadine Circle and is close to Del Amo Mall and the Civic Center. One resident must be 55+ to purchase in the complex. Units are mainly 1 and 2 bedrooms. There are a few 3 bedrooms. The complex has many amenities including a 9 hole executive golf course and two pools. Take a quick tour...

PACIFIC VILLAGE:
Construction was completed on this 55+ complex in March 2003 . It is on Maple off Sepulveda and is close to the Del Amo Mall. The complex consists of 1 and 2 bedroom units.

TRADE WINDS:
Newer complex completed in late 2003-early 2004. The complex is on Sepulveda west of Crenshaw. The complex has a pool, library, community area with kitchen, exercise room and courtyard. One owner must be 55+ and other owner at least 45.

THE GABLES:
Newer construction(2006)for those who are 55+ featuring studio and one bedroom units. The complex is on Torrance Blvd just east of Hawthorne Blvd. This is a great location close to shopping and restaurants and Little Company Of Mary Hospital....

VILLAGE COURT:
Newer Construction (2006)for 55+ with many amenities including a gym, pool and community room. There are seven floor plans ranging from one bedroom one bath units to three bedroom two bath units. The units are located on Hawthorne Blvd between Torrance Blvd and Carson Blvd. This complex is also close to shopping and Little Company Of Mary Hospital...Take a quick tour

THE MERIDIAN At CABRILLO:
Newer Construction( 2006). There are three plans.. 1 bdrm/1 bath units, 1 bdrm/1 bath + den units and 2 bdrm/2 bath units.

Courtyard Villa Estates:
Newer construction(2007). Very nice units with a lot of detail. They feature large rooms are have more of the feeling of a home.

Blue Rose Court: I would love to see more of these around the area. These are newer construction(2007) and have 2 bedroom 2 bath units with an attached private garage. They also have small patio areas with grass. These feel like small townhouses.

Breakwater Village: Newer development (2008) in Redondo Beach. Scott Anastasi .. who also built Village Court is the developer. These are 1 and 2 bedroom units and are similar to the units at Village Court. Take a tour...

Parkview Court, Torrance: This is located on Jefferson off Crenshaw across from Wilson Park in Torrance. The units are 1 bedroom 1 bath, 1 bedroom 1 bath with a den, and 2 bedrooms with 2 baths. The complex has a gym and a small courtyard but no pool or spa. The garage is subterranean and gated. Take a quick tour

Rolling Hills Villas, Rolling Hills Estates: These are one and two bedroom units near The Peninsula Shopping Center. I haven't reviewed the complex but plan to go u p soon and take photos for a tour.

55+ South Bay Communities: January-March 2009

South Bay-Beach Cities:Mortgage Loan Changes for Townhomes/condos

2009-04-20T14:20:00.000-07:00

Wouldn't you know it.. just as the California real estate market starts to show a few signs of stabilizing... the Feds throw a wrench in the works. Fannie and Freddie, in their infinite wisdom, have made some major Mortgage loan changes for townhome/condominium buyers who are looking at properties with loans under $729,750.

In the South Bay- Beach Cities that means entry level properties in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo. It will hit buyers of 55+ units in Redondo, Torrance and Palos Verdes who are looking for a loan. It will affect people buying entry level ( $725,750 or less) townhomes/condominiums in all the South Bay. Want to buy a small unit as a vacation property along the Esplanade... it will cost you more. How much more depends on a number of factors.

So just what have the powers that be been doing.... The basics are that you will need higher FICO scores, you will probably need a larger down payment then you did last month unless you are looking at FHA financing. Your appraisal fee will be higher and must be paid upfront and you will be paying higher upfront fees from .75% to as much as 3% to get that government backed loan. However if you are looking for a jumbo loan on a higher priced property... say one of those spiffy townhomes with great views in Manhattan or Hermosa... then it's business as usual.

I understand the idea behind these changes is because of the numerous problems with large condo projects in other states that went down the drain. However in most of California, townhomes/condominiums are our form of affordable housing. I'm not sure how these changes will affect buyers in the South Bay as we don't have a lot of large developments.... but I expect we will soon find out. It wouldn't surprise me to see an easing of some of the new rules once the administration realizes that this may not be the best move in a housing crisis.

South Bay-Beach Cities: Buying in a Buyer's Market

2009-04-18T18:53:00.000-07:00

While the media argues about where the California real estate market is headed and rumors of massive foreclosures are whispered about on blogs; there are actually a few folks who are buying homes. Over the last few weeks in all the South Bay-Beach Cities escrows have been opened and sales have closed.

Two factors are fueling the slight rise in sales... price and interest rates. In 2006 a lot of folks dropped out of the Beach Cities housing market and have been quietly sitting on the sidelines waiting for the market to turn. Others sold homes a year or two years ago and have been renting. Some are tired of renting and want a home of their own. Others got married, divorced or had a new addition to the family. Contrary to popular opinion they have excellent credit and they didn't lose a lot of money in the stock market crash.

So just who are these intrepid souls who are venturing forth in Manhattan, Hermosa, Redondo and El Segundo? They are not flashy speculators or risky flippers. They are conservative buyers. They are looking in all price ranges. They have cash for a large down payment. They are looking for a home not a retirement account. They are planning to live in the home for at least 10 years or more. They are buying below what they can afford. A few are willing to buy cosmetic fixers at the right price. They understand that the market values may decline more but believe the safety of a long term fixed rate loan will work in their favor.

They are careful and patient. They will wait for the right house. They have determined upfront how much they will pay for a property. They will pay more for a home that meets their exact needs... but they won't overpay. They will bargain and are not afraid to negotiate. They will walk away and find another house if the price isn't right. They aren't interested in "old inventory" at "old prices". They don't necessarily believe that an REO or short sale is a bargain... unless it is. They are pre-approved and have shopped lenders for the best rate and terms.

Since April 1, 2009 they have opened escrow on 9 homes and townhomes in El Segundo, 30 in Manhattan Beach, 15 in Hermosa, 26 in North Redondo and 22 in South Redondo. Most of these escrows will close on time.

Manhattan Beach: Market Snapshot April 14, 2009

2009-04-15T14:01:00.000-07:00

Days on Market: April 2009

It looks as if Spring, lower prices, lower interest rates and more loan products have coaxed some buyers back to the Manhattan Beach real estate market. Inventory has dropped a bit and pending sales are looking better then they have in 6 months. That said, sales volume is still low and prices continue to decline across the board.

According to the MLS, March saw 23 homes and 5 townhomes close escrow*. Currently there are 178 homes and 44 townhomes for sale in Manhattan Beach. There are 39 homes and 11 townhomes in escrow.

The Sand section seems to be the main point of activity this month with 15 homes and 8 townhomes going in escrow. 9 of the 15 homes are priced over $2 million and 7 of the sales went into escrow after April 1, 2009. The big question will be how many actually close escrow. As buyers get smarter about what they need to have in order to qualify and as more loan programs open up I suspect we will see a larger percentage of pending sales close escrow.

At the other end of the spectrum there are 10 properties in escrow under $1 million. A number of these homes sat on the market for months before finally going into escrow. You can expect to see more price reductions and homes selling in the $600,000 range in east Manhattan. A home on the corner of Marine and Aviation closed escrow at $480,000 in March.

Manhattan Beach: Market Snapshot April 14, 2009

Manhattan Beach: Price Ranges April 14, 2009

Manhattan Beach: Market Snapshot March 14, 2009

Manhattan Beach: Market Snapshot February 10, 2009

Manhattan Beach: Market Snapshot January 19, 2009

Manhattan Beach: Market Snapshot December 4, 2008

Manhattan Beach: Market Snapshot November 8, 2008

Manhattan Beach: Market Snapshot October 13, 2008

Manhattan Beach: Market Snapshot September 15, 2008

Manhattan Beach: Market Snapshot August 19, 2008

Manhattan Beach: Market Snapshot July 17, 2008

Manhattan Beach: Market Snapshot July 7, 2008

Manhattan Beach: Market Snapshot June 20, 2008

Manhattan Beach: Market Snapshot June 5, 2008

Manhattan Beach: Market Snapshot April 29, 2008

Manhattan Beach:Market Snapshot April 14, 2008

Manhattan Beach: Market Snapshot March 31, 2008

Manhattan Beach : First Quarter Price per Sq ft 2007-2009

2009-04-13T15:19:00.001-07:00

Walk Street East of Highland

After posting on Manhattan Beach home prices for First Quarter Sales from 2007-2009, I was asked about the price per sq ft for the same time frame. I'm not overly crazy about price per square foot as a reliable measure of value as it is so easily skewed depending on whether a number of big or small homes sell during a particular time period. However I will add it to the graph in the future when I post information for quarterly values. For now I'm posting the information separately.

There are three graphs....All of Manhattan Beach PPSF first quarter sales from 2007-2009... West of Sepulveda (WOS) PPFS 2007-2009 and East of Sepulveda(EOS)PPFS 2007-2009. As with median prices the biggest changes in home prices are for homes west of Sepulveda.

Manhattan Beach: First Quarter PPSF 2007-2009

Manhattan Beach: WOS First Quarter PPSF 2007-2009

Manhattan Beach: EOS First Quarter PPSF 2007-2009

Manhattan Beach: First Quarter Sales... 2007-2009

2009-04-04T12:31:00.001-07:00

Polliwog Park.. Manhattan Beach

Last week I was asked to provide year over year information for 2009 first quarter home sales in all areas of Manhattan Beach. It was not a big surprise that the volume of 2007 sales was significantly higher then either 2008 or 2009. Nor was it a surprise to see that 2009 prices compared to 2008 prices are down by about 24%. However there were a couple of surprises that I didn't expect.

Surprise #1... The median price for 2008 was higher then the 2007 figure by about 8%.
Surprise # 2...The 2007 median price and the 2009 price difference shows a 12% decline ...
Surprise # 3... The number of sales in the 1st quarter of 2008 compared to 2009 is only off by 10 sales.

I broke the numbers out for West of Sepulveda and East of Sepulveda. The picture that emerges is very interesting. While West of Sepulveda seems to have been hit far harder then East of Sepulveda. While the volume east of Sepulveda is down prices have actually held fairly steady. West of Sepulved however got trounced in 2009. Median prices have taken a nose dive compared to 2007 and 2008.

Inventory is up west of Sepulveda. There has been a rather large increase in the upper end homes over $4,000,000 and not many sales. There are 143 homes and 28 townhomes for sale west of Sepulveda. In east Manhattan there are 47 homes and 20 townhomes on the market. That's a very big difference in inventory.

March saw 21 sales per the MLS... 16 homes and 5 townhomes. Pending numbers look a bit better with 43 properties in escrow... 33 of them in March. 4 homes and 2 townhomes have closed escrow since April 1, 2009 . While these numbers are better then February, sales are still slow. It will take a little time to see if the return of Jumbo loans at lower fixed rates makes a difference in sales.

Manhattan Beach: 1st Quarter home prices 2007-2009:

Manhattan Beach: West of Sepulveda 1st Quarter home prices: <

Manhattan Beach: East of Sepulveda 1st Quarter home prices:

UPDATE: 04/06/2009

There was a question that came up on Manhattan Confidential about the sale numbers for West of Sepulveda. I checked the information on the tax record and have amended the information I posted. As I have noted before I only use information from the MLS... which doesn't show non-MLS sales or recorded items that are not sales. I also only use homes and townhomes. When reporting information from the MLS sales there can be a hitch early in the month with sale dates being posted to the system that may be at odds with tax information.

This is a breakdown of the difference between my original number of 24 sales West of Sepulveda and tax information showing 41 sales.

1. 3 sales show in the MLS as closing after April 1, 2009 but were actually recorded as of 3/30/2009. ( I added these to data)

2. 1 sale was from outtside the local MLS and did not show up on records ( I added this sale)

Using the above changes I'm now showing 28 sales for WOS for Quarter 1....

3. 3 properties were residential income properties and are not part of the data

4. 4 sales were not for properties that were not on the MLS

5. 2 are not sales and appear to be financial transactions or changes in percentage of ownership.

The 28 amended sales and the 9 other items not equal the 41 sales noted on the MLS..

Manhattan Beach-Beach Cities: The Return of the Jumbo loan

2009-03-27T12:39:00.000-07:00

One of the biggest issues facing the Manhattan Beach-Beach Cities real estate market has been the lack of jumbo loans at reasonable rates. Most lenders who were making Jumbos were doing them at rates that were really high compared to the rest of the market... bouncing between 7.5%-8.5%. As our Beach Cities real estate market, even with current price declines, remains one of the most expensive in the state the lack of Jumbo financing has been troublesome.

The rumors started last December... lenders were going to begin funding Jumbo loans in the spring. In January there was a little movement from some of the big boys but rates were still fairly high compared to conforming rates. A few major lenders began offering loans at 6%-6.5% which was looking very good. Now it appears that Bank of America has stepped up and is offering Jumbo loans ($729,750+) at very competitive... actually dirt cheap... rates!

I called Bill Nazur at Bank of America to see what was happening... and the rumors are true. Bill has been making loans since the 80's and knows what's what when talking mortgages. The basics are that BofA is making jumbo loans $730,000 and up. They are making loans over $1million which had been the maximum for many lenders. Depending on your credit you can get one with 20% down at an interest rate between 5.625%-5.875% that is fixed for 30 years.... did I say dirt cheap rates! If you are looking at a sale price of $1,000,000 or less with 20% down your FICO has to at least 680. With a FICO of 720 you can purchase a home up to a$1.5 price with 20% down. Needless to say Bill is swamped with clients right now but he always has time to answer questions... so shoot him an email and he can give you more information on their program.

He recently qualified on of my clients for a $1.5 price with 20% down and and a fixed rate between 5.625%- $5.85 depending on when they lock in the interest rate. Bill told me that BofA has been doing these loans for some time. According to Inside Mortgage Finance they were the largest originator of jumbo loans in the 4th quarter of 2008. They are only making the loans via Bank of America directly. That means that you have to talk to someone at BofA to get the information on these loans. The bank is keeping these loans on an in-house basis in the bank's portfolio. No marginal borrowers allowed... you have to have good credit and reserves to get on of these loans.

Now that BofA has publicized their program I'm guessing you will see more lenders in-housing similar loans at equally competetive rates. This is good news for Manhattan Beach-Beach Cities homeowners who need to refinance a large loan and buyers who would rather not put 50% down on a home under $2 million.

UPDATE:

Bank of America will loan on a $3 million purchase price... however over a $1.5 price they are looking at 30% down and FICO minimum of 720... the higher the FICO score the less you have to have to hold in reserve. I expect other banks will follow the same guidelines in the future.

Beach Cities: Sold February 2009

2009-03-23T18:27:00.000-07:00

South Redondo: Classic Revival

Spring is looking slightly better then winter for home sales in the Beach Cities. While the numbers are not much to shout about they are an improvement over the 4th quarter. The big winner once again is Redondo Beach. Both North and South Redondo saw inventory stay fairly level and sales volume increase. Price is likely the big factor.... you can buy more house for less money in Redondo then the other Beach Cities.

North Redondo townhomes are the hot item of the month. An interesting side note is that the median listed price and the median sold price are the same.... $699,000. In this case the price per sq ft tells the tale... $345 for active properties and $316 for sold. The $699,00 number is also significant as conforming loans, while scheduled to rise to $729,750, are still sitting at $625,000. With a $699,000 price buyers can get a conforming loan with 20% down or an FHA loan with less down.

Meanwhile there are 29 homes for sale in Manhattan Beach under $1,000,000... 7 are under $800,000. These homes are not moving as quickly as you might think. While many buyers are waiting for the conforming limit to go back to $729,750; others are waiting to see if prices will fall more. Most of these homes are small and many are in "C" or "D" locations. Builders are not in the market for non prime land... or even prime. In fact rumor has it that no permits have been pulled for new "spec" homes in Manhattan Beach so far this year.

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: SoldOctober 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: SOLD September 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 March 2007

South Bay-Beach Cities: Sold February 2007

South Bay-Beach Cities: Sold January 2007

South Bay-Beach Cities: Refinancing or Loan Modification Help Online

2009-03-19T11:46:00.000-07:00

While the South Bay-Beach Cities have managed to stay above water better then other parts of the state there are a number of homeowners who are finding themselves in trouble and need some help with their home loan. Not all of us paid cash for an ocean view home in Manhattan, Hermosa or South Redondo. Many folks looking at the troubled California housing market feel as if they are jumping from the frying pan into the fire when considering their options. However there may just be a little help from the FEDS.

There are a number of homeowners who bought with 10%-15% down in Redondo, El Segundo, Torrance and other South Bay communities who now find themselves owing more then the value of the property as prices have declined over the last 3 years. Job losses along with the normal problems folks face from time to time...death, illness, and divorce... have caused some real issues for many residents.

If you have a conforming loan ( $729,750 or less) and need to either refinance or modify the loan then you may find some help from the government. Today the Federal Government finally got its helpline on line at MakingHomeAffordable.gov. The phone number is (888) 995-4673.

The truth is that not many homeowners in the South Bay will not qualify for help as your loan amount can't be more then 105% of the market value. Also the loan must be a conforming loan... that is when it was originated it was a loan guaranteed by Fannie Mae or Freddie Mac. You don't have to be behind in your payments to receive help. If you aren't sure about whether your loan qualifies, click this link to see if it is owned by Fannie or Freddie.

If you haven't contacted your lender you should do so immediately. If they are not helpful then use the links to the above sites. These are legitimate sites that will offer help. Be wary of anyone sending you an e-mail, regular mail or calling your home with offers of help and wanting money upfront. There are some good sites that can offer you help but most are scams and will just take your money and leave you in deeper trouble.

About 3%-5% of people in trouble with their mortgages have equity(the difference between what you owe and the value of the property) in their homes. These people often give up and wind up losing their homes to foreclosure because they are not sure what to do. If you have equity in your home you need to talk with someone who can help. Don't be embarrassed.. call your attorney or someone you trust. Even in today's declining market you may be able to refinance or if necessary sell and come out with cash.

The LA Times has a very good article in the Sunday March 22, 2009 Business section on modifications and what California homeowners can expect from the government in terms of help... sadly not much.

Manhattan Beach: Market Snapshot March 14, 2009

2009-03-16T13:31:00.000-07:00

Days on market (DOM) March 14, 2009

Inventory continues to creep up with 188 homes and 49 townhomes listed for sale on the MLS in Manhattan Beach. In February 17 homes and 3 townhomes closed escrow which was much better then January numbers. Since March 1, 2009... 5 homes and 3 townhomes have closed escrow while 12 homes and 1 townhome have gone into escrow. Certainly these numbers are not earth shaking but they are better then November-January numbers.

The big surprise is the increase in homes for sale under $1 million... there are 30 on the market. Most buyers in this price range are waiting for Fannie and Freddie to get their act together and begin allowing lenders to fund loans up to $729,750. It seems very strange that a program that was in effect until November of 2008 can't seem to get funding started again just a few months later. Then again when you consider the source I guess it's no real surprise.

On the other end of the spectrum there are 29 homes on the market priced over $4 million. This is a big bump in inventory in the higher price levels. I'm guessing more then a few long term owners want to cash out at 15% rather then 20% capital gain. In those price ranges that 5% is a chunk of change.

There are some real issues with Fannie and Freddie guidelines about condominium /townhome projects that I will address in a future post. A word to the wise...if you are currently living in a 2 on a lot townhome and you do not have an active association you should talk with an attorney about getting one up and running ASAP if you intend to sell in the next year. The new guidelines will mainly apply on loans of $729,750 or less but I'm betting lenders are going to want to see reserves and active associations even on loans above that amount.

Manhattan Beach: Market Snapshot March 14, 2009(click to enlarge graph)

Manhattan Beach: Price Ranges March 14, 2009

Manhattan Beach: Market Snapshot February 10, 2009

Manhattan Beach: Market Snapshot January 19, 2009

Manhattan Beach: Market Snapshot December 4, 2008

Manhattan Beach: Market Snapshot November 8, 2008

Manhattan Beach: Market Snapshot October 13, 2008

Manhattan Beach: Market Snapshot September 15, 2008

Manhattan Beach: Market Snapshot August 19, 2008

Manhattan Beach: Market Snapshot July 17, 2008

Manhattan Beach: Market Snapshot July 7, 2008

Manhattan Beach: Market Snapshot June 20, 2008

Manhattan Beach: Market Snapshot June 5, 2008

Manhattan Beach: Market Snapshot April 29, 2008

Manhattan Beach:Market Snapshot April 14, 2008

Manhattan Beach: Market Snapshot March 31, 2008