Manhattan Beach Real Estate-Redondo Beach Townhomes

South Bay-Beach Cities:Home Buyer Tax Credit Extended

noreply@blogger.com (Kaye) — Thu, 05 Nov 2009 23:14:00 +0000

There is good news and bad news for South Bay-Beach Cities home buyers.....

Looks as if the Home Buyer Tax Credit extension is almost official as the House, on a vote of 403 to 12, passed the extension of the home buyer tax credit. The only thing it needs to be law is President Obama's signature. The new version of the tax credit has been expanded and extended.

The tax credit bill will be extended through April 30, 2010, with a 60-day extension if a contract is in place prior to the deadline. so technically you have to be in escrow no later then April 30, 2010 to take advantage of the credit. First-time home buyers are eligible for a tax credit of up to $8,000. An addition to the law allows existing homeowners who purchase a new primary residence ( not a second or vacation home)will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years.

The good news for our South Bay-Beach Cities real estate market is that income requirements have been expanded to $150,000 for single buyers and $225,000 for joint filers. The bad news is that the qualifying purchase price of the home is capped at $800,000.

Additional provisions in the bill allow taxpayers to claim the credit on purchases completed in 2010 on their 2009 income tax returns. In order to keep investors from using the credit the legislation states that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase. However if they sell in less then 36 months the credit must be repaid to the government. This requirement is waived for active duty military personnel who move due to a military order.

Manhattan Beach and Hermosa Beach will probably not see a lot of buyers use the provision because of the cap on the price of a home. However other South Bay Cities may well see an increase in sales from folks who have been undecided about whether to purchase a home now or wait until later next year.

I don't know if the new version of the law is retroactive for people who didn't qualify under the old income requirements but would qualify under the amended law. It might be a good idea if you purchased a home under $800,000 in the last 4 months and meet the new income requirements to check with you tax adviser.

Manhattan Beach: Market Snapshot November 3, 2009

noreply@blogger.com (Kaye) — Thu, 05 Nov 2009 07:33:00 +0000

So what's happening in our local Manhattan Beach real estate market... Inventory remains lower then we have seen since 2007 as some homes are taken off the market and others are selling. The sales volume continues to be fairly stable. Prices remain down even as the median appears to be moving higher which is due to more higher priced homes finally finding buyers. Most Sellers who continue to market their homes are ready to make a deal. Buyers are looking for the best deal they can negotiate, but are willing to pay a higher price if they deem the home is a good value.

It's a very different market then we saw at this time last year when sales were minuscule and inventory was climbing higher. Financing remains tougher to obtain and low appraisals continue to haunt buyers and sellers. However escrows are closing... October saw 32 homes and townhomes close escrow in Manhattan Beach.

Agents are scrambling to find properties for clients in the entry levels. I've been getting calls from agents and principals about 511 N Dianthus. The sellers decided to rent the home out last March but are willing to consider selling. Of course anyone who might buy the property would be doing so subject to the existing lease. I know Dianthus isn't the only off market home that is attracting new attention.

Manhattan Beach: Market Snapshot November 3, 2009

Manhattan Beach: Price Ranges November 3, 2009

Manhattan Beach: Market Snapshot September 25, 2009

Manhattan Beach: Market Snapshot August 28, 2009

Manhattan Beach: Market Snapshot July 23, 2009

Manhattan Beach: Market Snapshot 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

Manhattan Beach: Market Snapshot March 13, 2008

Manhattan Beach: Market Snapshot February 26, 2008

Manhattan Beach, CA: Market Snapshot February 11, 2008

Manhattan Beach, CA: Market Snapshot December 12, 2007

Manhattan Beach: Market Snapshot November 8, 2007

Manhattan Beach: Market Snapshot October 12, 2007

Manhattan Beach-Beach Cities Real Estate: Are we headed to boring?

noreply@blogger.com (Kaye) — Fri, 30 Oct 2009 02:51:00 +0000

Last week Curbed LA pondered that real estate may be on the way to boring.    They wondered if our local real estate markets have lost the frenzy we have all come to associate with buying and selling real estate in Southern California.

However if the 24 folks who made offers on 1708 Magnolia in East Manhattan Beach last week are any indication... we have not reached boring. The home was listed for $699,000 and drew big crowds. The accepted offer was about $825,000 for a 3 bedroom+ den, 1 bath home with 1236 sq ft home on a 4870 sq ft lot that needed upgrading. A few days later  1509 Manzanita a 3 bedroom 1 bath 1098 sq ft home also needing updates on a 5247 sq ft lot in Liberty Village saw a quick sale. Originally listed for $749,000 this one appears to have accepted an offer at $799,000.

Of course the real excitement will occur when these homes are appraised. That is the cliff hanger as the loans on both these homes fall under conventional guidelines and therefore will be subject to the appraisal rules under Fannie Mae and Freddie Mac guidelines.

Mid level priced homes  also seem to be faring well. In the Trees a newer home at 648 26th Street on an over-sized lot drew over 300 people at the Saturday and Sunday Open Houses. The home was built in 2004 and is on a 5120 sq ft lot. It is listed at $1,799,000. Rumor has it that they have received offers but so far no sale has been reported.

While sellers in the upscale price ranges continue to search for buyers, sellers in the entry to mid level price ranges seem to be having better luck providing they are priced right. Overpricing is still the kiss of death no matter where your property falls on the price scale.   I can think of a number of   homes that have been on the market forever.  They were priced too high and have been rejected by buyers. Now they are "old" inventory and will likely have to really drop their price to attract interest. It's never a good idea to chase the market down  at any price level.

An article in the Daily Breeze points out that South Bay median home prices were up overall even as prices were lower then at this time last year. While prices in the South Bay were up 7.4%, the Beach Cities saw prices drop 25.6% from last year. Manhattan Beach was down 12.9%, Hermosa saw declines of 25.8% and Redondo was off 7.2% from September 2008. However even though prices were off from last year by a fairly significant amount, Manhattan Beach had the highest median home price in the California with a median of $1,502,000.

Meanwhile the financial markets are very concerned about what's happening in the commercial real estate sector.   For those of us who remember the S & L debacle of the '80's this could be an issue that will have consequences for the residential market.   We just saw what happened when credit dried up from 2007-2008 and the effect that had on the residential housing market.

Personally, I think a little boring might be nice....

Thinking about buying a Short Sale or REO... check this Video.

noreply@blogger.com (Kaye) — Mon, 26 Oct 2009 17:24:00 +0000

If you are thinking about buying an REO or tackling a short sale then this video is for you!

The video may be a bit over the top but it does reflect the frustrations of many buyers who are trying to work with banks on short sales and REO's. I have a client who submitted an offer on an REO almost 6 weeks ago. His first offer was over the listed price and was not accepted. He resubmitted a new offer that is higher then his previous offer. In the meantime the price has been lowered but the listing agent says that the bank hasn't made a decision about accepting any offers even though his offer is now 10% above the current asking price. Needless to say he is very frustrated.

At least the listing agent on the above property will communicate with me. In many instances listing agents will not give out any information and only put a fax number on the listing. They will not answer questions or speak with other agents about the status of offers. It is not unusual for a lender to take 60 days before giving a reply on an REO and even longer on a short sale. Often by the time the lender finally responds the initial buyer has found another property and is no longer interested.

Last week a home sold as a short sale in the Tree section of Manhattan Beach at a price that was the same as the price on an offer my clients made over 9 months ago. Had the lender accepted the offer from my clients back in February they would have closed escrow in 40 days and been done by April 2009. Instead they horsed around and ultimately wound up losing an even larger chunk of cash by waiting another 6 months to take the same offer they could have received in the Spring.

And just to make things more interesting on properties with conforming loans backed by Fannie Mae and Freddie Mac some new rules are about to be implemented across the country under the Making Homes Affordable Program. As of September 23, 2009 over 60 lenders have signed on to be part of the program. Basically it means if you can't make the payments or sell your home for more then you owe, you can't just decide to offer your home as a short sale. You must talk with the bank about modifying the loan first and if that doesn't work then the bank will make the decision about offering the home as a short sale to the general public not the owner. We live in interesting times...

****A big thanks to Laurie Manny at Long Beach Real Estate for finding this gem!

Beach Cities: Sold September 2009

noreply@blogger.com (Kaye) — Sat, 24 Oct 2009 22:17:00 +0000

Happy Halloween... don't forget the Pumpkin Race!

Fall has proven to be busier then usual for real estate sales in the Beach Cities. Since October 1, 2009 there have been 142 homes and townhomes listed for sale, 130 homes and townhomes entered escrow and 96 have closed escrow. Of the 96 closed escrows, 8 were in El Segundo, 25 in Manhattan Beach, 12 in Hermosa, 31 in North Redondo and 20 in South Redondo... and there is still another week left in the month.

On another note it seems that Hermosa Beach was the only South Bay-Beach City to make the CNN list of USA towns where residents make over 6 figures. Hermosa was listed with a median income of $137,941 and a median home price of $1,135,000. Guess there won't be many more jokes about poor Hermosa!

South Bay-Beach Cities: Sold September 2009

South Bay-Beach Cities: Sold August 2009

South Bay-Beach Cities: Sold July 2009

South Bay-Beach Cities: Sold May 2009

South Bay-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: Sold October 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: 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: Home Buyer Credit... Did you cheat?

noreply@blogger.com (Kaye) — Wed, 21 Oct 2009 20:23:00 +0000

According to a number of housing reports the First Time Home Buyer Tax Credit has been a huge boon to the housing market.   Estimates vary, but most agree that the credit has been claimed by about one million folks and that of that one million about 350,000 home sales would not have happened if the credit had not been in place.

However it now seems that IRS is wondering just how many of those receiving the credit were entitled and how many were cheating. With that in mind IRS is now reviewing 100,000 of the claims  filled by buyers. Seems like someone finally figured out that maybe as there was little need to prove your qualifications a few of these claims might not be on the up and up. What a shock!

The South Bay hasn't had many folks receiving the credit because of home prices and the income restrictions...$75,000 for single folks and $150,000 for married people. However with talk of extending the credit and upping the income levels we could see more potential buyers qualifying.

The Real Estate Bloggers are finding the timing a tad suspicious. Is there a reason the government is sending out IRS just as it comes time to start paying out the credit? Wouldn't it have made more sense to have had tougher criteria in place in the first place rather then now spending a lot of money reviewing tax claims... Questions...questions...questions.

The word around town is that if you did file for the credit you best have all your paperwork together for at least the last three years and it needs to be pristine.  If Congress does agree to extend the credit and revamp the income requirements upward then take heed if you plan to file for the credit. It's probably not a good idea to file for the credit along with a creative tax return.

Selling your Manhattan Beach-Beach Cities Home... It's all about price/value

noreply@blogger.com (Kaye) — Fri, 16 Oct 2009 17:26:00 +0000

Why setting the right listing price is essential when selling your home...

It is a fact of life that sellers always think they have priced their home too low and buyers always think it is priced too high. In "up markets" sellers can price above where the last comp sold and often get that price or more . However in "down" markets sellers who over price their home often wind up settling for a price that is considerably less then they might have received if they had priced the home at market initially.

As we all know we are in the down cycle of our local real estate market with prices currently hovering around 2004 levels or lower.   The Beach Cities have been fairly fortunate compared to the rest of California real estate and have not had huge numbers of foreclosures. However I expect we will see more foreclosures and short sales on higher priced properties in the coming months... not record numbers but probably enough to influence home prices.

So what does this mean if you are thinking about selling your home? Along with all the givens of selling... clear the clutter, paint, spiffy up the landscaping, etc... the  # 1 item on your list should be pricing at or slightly below the current market value.   This is not the market to test the waters, so to speak,
when it comes to pricing.

Buyers are looking for value... and value can mean $600,000 or $6,000,000 depending on the property.   I'm seeing a number of homes priced  over market that just sit. I know many of these sellers priced their homes on the high side as they expected to negotiate the price to reach their desired price. Unfortunately many buyers who set price limits are not willing to look at homes priced over that limit in the hopes the seller will negotiate.

Buyers don't care that you paid $XXX three years ago. Buyers are only concerned with what the home is worth now. The homes that are selling in today's market are priced to sell and those that aren't selling are priced too high. The only thing that happens when you chase the market down is that you lose more money then if you priced it right in the first place.

Often buyers not only perceive a listing as "old" they also believe there may be something wrong with it. Consequently even when a seller eventually lowers the price, the house carries a taint of something not quite right about it.   This leads buyers to often dismiss a property or if they do take a look and make an offer it will be substantially lower then if the price had been on target when it was first listed.

Another major issue is appraisals. Appraisers are now only looking at values on homes that sold within the last 90 days and often the last 60 days. Proximity along with time is a real issue. You see this in East Manhattan on homes selling north of Manhattan Beach Blvd. In the old days appraisers would take any sale within 1-1.5 miles in all of east Manhattan.   Now they start with homes closer to the subject property and if there are enough comps they use them even if they are lower rather then move to homes sold south on Manhattan Beach Blvd. The same is true for North Redondo when dealing with properties north and south of Artesia. You can't justify a value on a property south of Artesia by using comps north of Artesia.

There are a number of homes in all price ranges that have been sitting for months at the same price with no offers. As sale numbers continue to decline as we enter the fourth quarter there will be fewer comps available to appraisers and owners who are trying to establish value.   Don't expect to get the same amount that your neighbors did 6 months ago... in this market expecting less may ultimately mean receiving more at the end of the transaction.

Manhattan Village: Market Update January-September 2009

noreply@blogger.com (Kaye) — Mon, 28 Sep 2009 23:32:00 +0000

There appears to be two schools of thought about living in Manhattan Village... you either love it or you don't... there are not many folks in the middle. The residents who love the Village can't imagine living anywhere else and often move up from 2 bedroom Court homes to to 3 bedroom Patio homes and then make the next step to an Estate home.

Real Estate in Manhattan Village always seems to run in cycles... either very very hot or very very cold. This year has been on the cold side in the Village. Since January 1, 2009, 6 townhomes/court homes and 4 single family homes have closed escrow. There are currently 3 patio/court homes on the market and 3 single family homes.

The biggest issue facing the Village now is appraisals. In a complex as large are Manhattan Village appraisal guidelines mean that most appraiser will only comp within the complex if there are comps available. This isn't too bad if you have a patio or court home for sale but can be a real issue for those selling an Estate home. Overall the Village hasn't had a lot of REO's when you consider there are over 400 units in the Village.

Townhomes( Patio/Court homes):
Inventory has been running between 5-6 units for sale monthly. However inventory recently dropped as a few units dropped off the market and one entered escrow.   There have been a number of units that have left the market...a few of which will no doubt show up again in the near future.   There is one townhome that is an REO that is not on the market, one REO that is pending and one that closed escrow in July. There is another that is in the early stage of preforeclosure and I know of a few more that might soon be trying for a short sale.

Estate Homes:
A number of owners are beginning to do some major  remodeling to both the interior and exterior of their homes. Currently there are 3 homes for sale which is higher then usual for the estate homes. The homes on the market are some of the larger floorplans. So far there have not been any REO's or short sales among the estate homes.

Manhattan Village: Market Snapshot January-September 2009

Manhattan Village: August 2008

Manhattan Village: November 2007

Manhattan Beach: Market Snapshot September 25, 2009

noreply@blogger.com (Kaye) — Sat, 26 Sep 2009 21:40:00 +0000

Manhattan Beach Homes: September 2009 Days on Market

Inventory continues to be lower then we have seen in a long time. The last time inventory was at these levels was in the fall of 2007 when there were 122 homes listed for sale. Of course back then the price mix was very different. In September 2007 there were 3 homes priced under $1M... today there are 18. In the $1M-$2M range there were 53... today there are 43. In the $2M-$3M range there were 49 homes for sale... today there are 29. In the $3M-$4M range there were 10 homes for sale...today there are 12. In the $4M+ range there were 7 homes...today there are 19.

Sales in the Fall of 2007 were low as lenders found themselves in deep trouble over sub prime loans. Major lenders began pulling back on jumbo loans in August 2007 . Interest rates on jumbo loans jumped overnight to 8.5% or higher depending on the lender. Today while jumbo loans are more difficult to obtain because of tougher loan standards, interest rates are very good... under 6% for a fixed rate from most lenders with 20% down.

We've seen a lot of changes in the Manhattan Beach real estate market since 2007. Along with credit being tougher to obtain, we have seen prices decline. While Manhattan Beach has not had a high number of homes making it to REO status; we are seeing more homes receiving default notices and an increase in short sales. Sales volume is down from the Summer highs and prices are bouncing around in each of the city's sub markets. I expect to see volume continue to decline and prices to fluctuate. The median listing price for single family homes in Manhattan Beach is $2,249,000, the median sold price as of 9/25/ 2009 is $1,850,000 while the median pending sale price is $1,324,500. As of 9/25/2009 there were only 12 homes and 7 townhomes that had closed escrow.

Manhattan Beach: Market Snapshot September 25, 2009

Manhattan Beach: Price Ranges September 25, 2009

Beach Cities: The Bottom of the Real Estate Market....Are We There Yet?

noreply@blogger.com (Kaye) — Wed, 23 Sep 2009 04:01:00 +0000

Last week those in the know seemed to be saying that the recession was over. The  LA Times cheered that Southern California's Vital Signs are Improving and the Southern California housing market was about to hit bottom.    But toward the end of the week the news was not quite as good with state unemployment numbers reaching above 12% and a few economists hedging their bets. Irwin Kellner from Money Watch  theorizes that maybe it ain't over til it's over and I think I agree with him.   Much as I would love to see our Beach Cities real estate market stabilize I'm having a hard time believing that the real estate market in California has reached the bottom with such a high unemployment rate and the state in so much financial turmoil. Employment and financing are going to be major issues that must be resolved before we begin to see a return of a normal market

This real estate market is different then previous markets and consequently may be harder to call. I suspect that we will see the home market bottom by city and sub areas within each city.   As an example I think that we may have seen the bottom in February of this year for the lowest  priced single family homes in Manhattan Beach ( $750,000 or less), Hermosa Beach ( $700,000 or less) N. Redondo ( $600,000 or less), S. Redondo( $700,000 or less) and El Segundo ( $650,000 or less).  We may also be nearing the bottom for entry level townhomes/condos in the Beach Cities.   I think we will see properties priced in Manhattan and Hermosa from $800,000-$1M reach their lowest level by the end of the year. The rest of the markets will  level at different times over the coming year.   I also think that reaching the end of the market will not signal an uptick in prices. Most price points will remain flat with the exception of Strand and walk street properties near the Strand which seem to have a life of their own even in a down market.

While it may be true that the South Bay employment market is doing better then other parts of the state we are not out of the woods yet.    I know a number of folks who may  have jobs but have lost of lot of perks. Many companies will not be paying an end of the year bonus to employees that was a standard benefit. Others are changing more for health care benefits. If you are on a salary plus commission your commission percentage  may be significantly lower. If you own a company you may be paying yourself less if the company income has decreased.   In other words a lot of folks just simply are not making the same amount of money they were a few years ago.

Consumer spending continues to be below expected levels in all categories. Home buyers are still expecting prices will continue to decline a bit more and continue to make offers the listed price. These are not necessarily buyers who think the market will drop another 25% but rather those who think there is a little more to be discounted... maybe another 5%-10% before we see the bottom of the market. That's not to say there are not some homes that are receiving multiple offers with prices above the listed price but these usually were often priced below market value. Having multiple offers doesn't always mean the offers are over the listed price. It isn't unusual to have multiple low offers if buyers feel the price is on the high side.

One of the big issues affecting the housing market is that banks are still very leery when it comes to extending credit to buyers on a purchase loan or homeowners looking to refinance. If you are not a straight salary W2 employee banks are not going to be your friend. In our market many of the people making the most money are commission based and banks don't like 1099 folks very much.

We have been so consumed with foreclosures that a major problem in our market is often overlooked... owners who want or need to refinance and can't qualify. If you are self employed you might find that with all the new rules and regulations many of the assets you took for granted no longer count as much when a lender reviews a loan package. Prior to September 1, 2009 if you had a lot of assets in stock, bonds and other accounts lenders gave you 100% of the value of those funds. Since September 1, 2009 lenders will only allow you 70% of the value of the assets toward qualification which means you just lost 30% of your financial power.

I spoke with a few lenders last week and the general consensus of opinion is that there are going to be more problems with upper end housing well into next year. With values having declined by 25% +/- in most of the Beach Cities owners may find it difficult to refinance. Another issue is that if your income has changed or if you are commission based you might not qualify for a new loan even if the payment is lower on the same amount of money because of rule changes. Most of these people will not wind up in foreclosure but they may have to sell at a discounted price if they can't refinance.

While it is true that inventory has decreased and sales picked up over the summer, the fact is that the decrease was not all due to properties selling. A number of sellers just decided to wait the market out while others opted to rent their homes for a year or two. As we come to the end of the year sales volume is again declining compared to previous months. I expect that the 4th quarter will be better then last year as the financial markets are not in as much turmoil. However until lenders losen credit a bit more and consumers decide to start spending I don't think we have seen the end of the recession or the bottom of the real estatre market.

Beach Cities: Sold August 2009

noreply@blogger.com (Kaye) — Mon, 14 Sep 2009 19:08:00 +0000

School has started and that means that the end of the Summer real estate season has hit the Beach Cities. As is typical of this time of year, home sales volume will continue to slow. Interest rates should remain fairly low well into next year. However regulations will continue to be strict for most borrowers. Conforming and jumbo conforming loans have seen a number of new regulations and changes in rules this year.

The first time buyer's tax credit is scheduled to end in a few weeks. There is a lot of talk about not only extending the credit but increasing it to $15,000 and making it available to all buyers regardless of income or home price. The higher conforming jumbo loan ($729,750 or less) is once again scheduled to expire at the end of the year as it did last year unless Congress extends it. This created a lot of issues in our market last year as the upper limit was not available from November 2008 until almost the end of April 2009. If the same thing happens again this year you will once again see big declines in sales volume for entry level homes.

Rumors abound about thousands of new foreclosures hitting the market in October but so far they remain just that rumors. Compared to other parts of the state there have been very few bank owned properties(REO's) hitting the market in the Beach Cities. As prices continue to decline and unemployment remains a problem, I expect we will see an increase in bot REO's and properties being offered as short sales. However many of those will not go through as banks will not accept a short sale unless the owner can prove a hardship other then a decline in value.

As expected sales volume for August was below levels for June and July in all the Beach Cities. Inventory is down in Manhattan Beach but has increased in Hermosa Beach, Redondo Beach and El Segundo. Pending sales are holding relatively steady in all the Beach Cities compared to last month.

South Bay-Beach Cities: Sold August 2009

South Bay-Beach Cities: Sold July 2009

South Bay-Beach Cities: Sold May 2009

South Bay-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: Sold October 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: 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

Manhattan Beach Hometown Fair: October 3-4, 2009

noreply@blogger.com (Kaye) — Thu, 10 Sep 2009 19:10:00 +0000

Come to the Manhattan Beach Hometown Fair Saturday and Sunday October 3-4, 2009

While there are a lot of things to love about living in Manhattan Beach.. one of the best is the Hometown Fair. The 10K race is an event for the whole community... whether you are a marathon athlete or an I can do this cuz I want a tee shirt competitor this is an event cheered by the whole community. Folks line up along the route with coffee in hand to cheer on family, friends and neighbors who are competing in the race. This year I will be helping with the 10K race. Volunteering for the fair is great fun!

After the race take a leisurely stroll through the booths filled with handcrafted items made by a number of our local residents. Then it's off to the food and games areas for the whole family. These booths are staffed by non-profit community groups who raise money for their organizations.

One of the oldest of the philanthropic groups in Manhattan Beach is the Neptunian Woman's Club of Manhattan Beach. The Neptunian Woman's Club was started in 1909 before Manhattan Beach was officially Manhattan Beach. This year we are celebrating our 100th Birthday! Each year the club raises money for scholarships for Manhattan Beach students and other local charities with a number of events.

Last year we had a Pineapple booth and also worked at the Beer Garden. We had a great time! It was so nice to see so many of the parents and students who received scholarships stop by and say hello. This year we are sponsoring two booths and will be selling cold soda and sliders. We will also be selling raffle tickets for a new Prius. Proceeds from the raffle will go toward updating our Library. We hope you will stop by and join us again this year as we continue our goal of providing scholarships for Manhattan Beach students and local groups who need a helping hand along with some cash.

***If you would like to volunteer I know there are still projects that need help. For more information, please send an email to freespeechandvolunteers@mbfair.org, or call and leave a message at 310-546-5219.

House Tales: 3612 Poinsettia Manhattan Beach... one year later.

noreply@blogger.com (Kaye) — Wed, 02 Sep 2009 19:10:00 +0000

Have you ever wondered what happened to the inside of some of the smaller homes that have sold in the last few years and were not torn down... well here's your chance to find out.

A little over a year ago I sold a little tree section fixer at 3612 Poinsettia, Manhattan Beach. In prior years this house would have been torn down the day escrow closed as it was only two bedrooms, less then 900 square feet with a single car garage and needed work. In fact it had been sold to a builder who backed out just before closing as he had a lot of inventory that hadn't sold.

3612 Poinsettia was a probate sale. I listed Poinsettia around Thanksgiving in 2007 with a starting price of $929,000 which was actually lower then the value given by the appraiser for the state of California. After a few adjustments the price was reduced to $849,000 in March of 2008. Along the way there were many comments about the price and condition. In May 2008 this little home found its place in the market and after receiving multiple offers (7 of them) entered escrow and closed in mid July 2008 at $849,000 with a small credit to the buyer.

Since escrow closed I have driven by and noticed a number of changes. Last weekend I was able to see what the new owners had done to the inside as well as the outside... what a difference a year makes. This was always a sweet house... but now it is charming. They did a number of things I would have done and others I didn't consider. French doors were added to both bedrooms which really opened up those rooms. The new kitchen is stunning and the living room is warm and inviting.

I thought it would be fun for those of you who followed the story of this listing to see the before and after views of this lovely home. If you are considering buying a small "fixer" you will find some great ideas. The exterior was repainted and flower boxes added. They tore out the old kitchen cabinets, etc and redid everything while staying within the same footprint. They made few structural changes other then widening the doorway into the kitchen and closing off the back door by the garage. They scraped the ceilings and revamped the fireplace. Most of the flooring is the original, sanded and stained a darker color. The kitchen flooring was added and is a perfect match to the existing floor. They tore out the old tub and vanity in the bath and put in a double sink and a claw footed tub/shower. French doors were added to both bedrooms. New moldings around the doors and new doors for the closets finished off the project. The backyard and patio area are their next project.

3612 Poinsettia, Manhattan Beach: Before and After....

Before....

After......

All it takes is a little imagination.....and a bit of help from some friends to make a fixer into something special. In the last two years a number of homes that would have been lost to the bulldozer a few years ago are being bought and updated. I think this is great. Many of these older and smaller homes have good bones but need a little fixin' to show off their charm. For awhile there it seemed as if we were becoming a Stepford community of McMansions. It's nice to see a mix of homes around town... this is what adds character and charm to our City by the Sea. .

*** Closed Escrow:
1708 Pine in Manhattan Beach closed escrow 9/2/2009... sale price was $850,000. This was a fixer 2 bedroom 1 bath 760 sqft on a 4480(40x112) sqft lot...

The new owners are willing to share information about the folks who helped them transform the house. Email me off line if you would like the information.

Manhattan Beach: Market Snapshot August 28, 2009

noreply@blogger.com (Kaye) — Sat, 29 Aug 2009 17:51:00 +0000

Manhattan Beach: August 2009 Days on Market

As the Spring/Summer selling season winds down the volume of home sales in Manhattan Beach for August looks as if it will be lower then either June or July. The Days on Market(DOM) continues moving upward as sellers scramble to find a price that buyers find reasonable and sellers can live with.

This is the time of year when smart sellers should be reviewing their current asking price and making adjustments if the home has been on the market over 90 days without an accepted offer. If you are thinking about listing your home for sale this is not the time to test the market if you need to sell before the end of the year. The homes that are selling are the ones that are priced at or slightly below current market value... not the ones trying to hang on to a 2007 price. It is tough for folks who bought in 2005, 2006 or 2007 to accept the idea that their home is worth less then they paid. If you do not have to sell then take your home off the market or rent it out for a while. Trust me on this one... listing your home well above the market price is not in your best interest.

Inventory is lower but the disparity between listed price and sold price is still about 22% for homes in Manhattan Beach. It is also of note that of the 20 homes that have closed escrow so far this month 16 sold for less then two million dollars.

Manhattan Beach: Market Snapshot August 28, 2009

Manhattan Beach: Price Ranges August 28, 2009

Manhattan Beach: Market Snapshot July 23, 2009

Manhattan Beach: Market Snapshot 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

Manhattan Beach: Market Snapshot March 13, 2008

Manhattan Beach: Market Snapshot February 26, 2008

Manhattan Beach, CA: Market Snapshot February 11, 2008

Manhattan Beach, CA: Market Snapshot December 12, 2007

Manhattan Beach: Market Snapshot November 8, 2007

Manhattan Beach: Market Snapshot October 12, 2007

Manhattan Beach: Market Snapshot September 29, 2007

Manhattan Beach: Market Snapshot September 15, 2007

Manhattan Beach: Market Snapshot August 25, 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

When your home is worth less then you paid...

noreply@blogger.com (Kaye) — Tue, 25 Aug 2009 19:44:00 +0000

What do you do when your home is worth less then the price you paid?

California real estate is a cyclical market with values going up and down. The Beach Cities are no exception. While upscale markets tend to hold on longer and pick up faster after a cycle has gone through its course they are still part of the general real estate cycle and subject to the vagaries of the marketplace. The cycles generally run a 7-10 year course with flat price point periods along the way. During the down cycle a property may be worth less then the purchase price. The flip side is that the property usually is worth more when the market moves upward.

Historically these cycles had longer neutral periods between the up and down cycles. In recent years it seems the cycles are running closer together with a shorter cooling time between the up/down swings. This last cycle of course was not limited to California real estate but was a world wide phenomena which was largely caused by cheap credit and a lack of regulation for both financial institutions and borrowers.

When you review real estate prices in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo over the last few years there is no question values have declined. If you bought a home in 2005-2007 your property in most cases is worth less then you paid. In some sub markets of the Beach Cities values have dropped to 2004 levels. The big question is what do you do if the value of your home is less then the purchase price...do you stay, try a short sell or walk... The answer to that is it depends on your circumstances.

While many homeowners who are in trouble will try to obtain a loan modification. Most folks in our area will find that is not an option as loans that were made prior to last year, when loan limits increased to $729,750, are not covered. Also the decline in value of properties in most cases is far more then that allowed by the FEDS to qualify for their programs. For some homeowners who owe more then the home is worth a short sale may seem like the answer, others will have no choice but foreclosure. There are folks who will simply walk away believing this is a smart choice. The majority of homeowners however will just wait the market out. The path you take will depend on your economic circumstances and your views on homeownership.

Short sales:

Short sales are not as simple as many believe. Most homeowners think of short sales as an easy way to sell a home that is no longer worth what they paid. They don't understand that a bank will only consider a short sale if the owner can prove that they can no longer make the payment on the loan. That usually means you have lost your job, gotten divorced, had a major medical issue, filed bankruptcy or all of the above. You will need to send the bank a package that includes certifiable proof of your financial problems. Your word that you can't pay is not enough.

Even if you can document your financial issues the bank may reject your plea if they feel they can get more money if they foreclose. You should also know that a short sale will affect your credit rating almost as much as a foreclosure. In addition if you refinanced the property the lender may make you sign a note to pay the bank the difference between what the home sells for and the amount of the loan... and still ding your credit.

Foreclosure:

Foreclosure is a tough step for most homeowners. Historically homeowners would do almost anything to avoid having their home taken back by the bank. With the record numbers of foreclosures through out the country the stigma that was once associated with the process is not as much of an issue today. However, contrary to what you may find on the internet, a foreclosure will damage your credit for a long time. It may impact your ability to get insurance, buy a car, obtain a credit card or even a job. A foreclosure generally stays on your credit record for 7 years.

While the government is touting loan modification programs, a number of lenders are not working with borrowers. Loan modifications are few and far between in CA. Some of the reasons are that lenders don't have the personnel or the knowledge to deal with the issue. In other cases the bank feels that the owner simply doesn't have the wherewithal to make the payments even if the loan is modified. In some instances the bank would make more if they foreclosed on the property.

One of the biggest issues with foreclosure is that while homeowners may not be able to make their payments many still have equity in the property. This often happens to people who have owned their homes for a long time and suddenly find themselves with unanticipated financial problems. They may try to sell but often they set a price that is too high. They get caught up in what they want for the home rather then what it is worth. These are the folks who say I'm not giving away my house ...I won't take a nickle less then $XXXX... sadly after too long on the market and no deal most wind up with nothing when they could have walked with some cash. In the 90's I worked with a secondary lender who tried to get owners to sell before they actually went into foreclosure. I was constantly amazed at sellers who wouldn't budge from an unrealistic price and wound up losing everything.

Walking away:

This has become a popular option for a number of people... even those who can make the payments but choose to walk because the property has lost value. They usually had very little if any money invested in the property. Most people who take this option view homeownership as an investment rather then as shelter or a lifestyle choice. The internet has popularized this choice as a smart one and many folks believe it. They believe that walking away will have few if any financial issues for them. For some this may even be true.

However as noted above in the foreclosure section there may well be more consequences then folks think. Many lenders are talking about making it very difficult for owners who walk away who do not have financial problems. Banks don't like folks who don't honor their financial obligations.

Last year I spoke with a couple about buying a property. They were adamant about the deal they expected to get. They made sure I knew they had walked away in the 90's from a property that was upside down in value to prove how savvy they were. They walked not because they couldn't make the payment but because it was worth less then they had paid. The funny thing is that the property they walked from is worth three times what they paid for it even in today's market. Had they not chosen to walk they would be sitting on a large chunk of equity instead of starting all over years later.

Sticking it out:

No matter what you read this is the choice of most homeowners. Generally owners will stay in their homes and make their monthly payment no matter how much the value goes up or down. A few years ago the in thing was to make fun of people who had lived here for a long time and had a lot of equity in their homes. But the fact is the owners had that equity because they rode out the cycles of the market. They paid the mortgage every month whether the value was up or down. They didn't walk away when their home lost value because it was a bad investment. Their ultimate goal was to pay the mortgage off and own their home.

In the last 10 years or so the idea of owning a home over the long term and paying off the mortgage disappeared. It was replaced by the concept of moving every few years to a bigger and better property. Leverage became the in word for homeowners rather then equity. Now of course a lot of folks who moved into bigger and better too quickly have found themselves underwater as the value of their homes plummeted.

I'm not really surprised to see a number of consumer blogs advising owners to walk away from their property if the value has decreased. It has become the smart thing to view a house as a stock market commodity rather then as shelter and a lifestyle choice. If you are in financial difficulty then you may not have many options other then those listed above. However if you aren't in a financial bind then I can't help but wonder why a smart owner would walk away because the value has changed. While it is true the market is currently down it is also true that it will go back up. It may take time but the winners in real estate are those who are in it for the long not the short term.

Many years ago it was a popular pastime for young ladies to learn stitchery and show off their skills in a sampler. One of the most popular sayings was ... home is where the heart is...It may sound corny but a lot of people still believe this to be true.

South Bay-Beach Cities Real Estate... the rest of the story...

noreply@blogger.com (Kaye) — Sat, 15 Aug 2009 00:00:00 +0000

Beach Cities.. my thoughts on where real estate prices headed for the second half of 2009....

Sometimes when I get caught up in my geeky statistical mode I'm not quite sure where the numbers will take me. Over the last week or so I've been posting information on home sales in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo for the period January-June 2000-2009. My original intent was to stick with the year over year figures for January-June 2007-2009. I soon realized that I needed to go back further to get a better picture of market trends.

While those numbers were interesting and showed definite changes in the market, there was still something nagging me about the market. My focus became a bit clearer after I posted the stats for July 2009 in the Beach Cities. The overall trend was very clear... inventory is down, sale volume is up a bit and prices are significantly lower in all the Beach Cities. But there is more then that happening in our local market.

Reviewing the numbers it is easy to see that sales volume peaked for homes sold in Manhattan, Hermosa and North Redondo in 2002. However in El Segundo it peaked in 2001 and in South Redondo it was 2000. Using median sale prices it looks as if home prices peaked in El Segundo, and North and South Redondo in 2006. In Manhattan Beach it seems to have been 2008 and in Hermosa it appears that prices are still rising into 2009. ( The numbers for Hermosa are somewhat misleading as the volume of sales was very low with some high ticket sales in the Sand and Valley sections... the July 2009 numbers seem more in line with the peak around 2006).

Currently it appears as if home prices in 2009 are hovering between 2004 and 2003 in North and South Redondo and El Segundo. In Manhattan Beach , home prices are between 2005 and 2004 levels. When you kick in July numbers Hermosa real estate prices are also around 2005 to 2004 levels. Overall median price declines for all the Beach Cities seem to be averaging somewhere between 21%-25% from their respective peaks.

So what does the future look like for home prices in the South Bay-Beach Cities? Truthfully, my crystal ball started acting funny around 2006 and has never been the same since... but my guess is that we will see prices continue to slide over the next 6-9 months. Whether the slide is large or on the small side will depend on what happens in the economy. If the economy is truly seeing a bit of light at the end of the tunnel, with the prospect of the recession winding down before the end of the year, then prices will probably not fall much more then 7%-10%. But if the recession hangs on and moves into fields occupied by upper income folks then you can expect to see home prices falling at least 10% and perhaps as much as 20%. However I don't think you are going to see the low entry level prices drop much more. I believe that end of the market in all the Beach Cities will be relatively flat with the possible exception of older North Redondo townhomes that were built in the late '70's and early '80's.

Here's what I'm seeing... Banks are getting very tough not only on standards for a borrower but also on the appraised value assigned to the property purchase. Fewer comps in the higher end of the market means lower appraised values, which translates to unhappy buyers and sellers and deals that fall apart. It also translates to overall lower comparable sales or sliding prices. Sellers can't throw out a number they "want" or "need" and expect buyers or appraisers to go along without supporting data.

Buyers are not only being very choosy about condition and location but they are sticking to their guns about price. They have the luxury of time on their side and will walk from a property they feel is overpriced if the seller refuses to negotiate. On the other hand they will often bid higher on one they deem to be undervalued if there is a multiple offer situation. However they won't be stampeded into a purchase if they suspect they are being manipulated by a seller. All of these conditions happening together are part of the forces that are pushing prices lower.

I believe home prices over the $2M in the Beach Cities are going to start moving downward. Historically this area of the market has been very sticky as sellers don't necessarily "have" to sell. They can hold out for a higher price even though other sectors of the market are moving lower. We have a low rate of unemployment in the Beach Cities compared to other parts of the state. However in the last few months I'm seeing a number of buyers leaving the market because they have either lost their jobs or are concerned that they might. Many who own their own businesses are paring down as their companies struggle in the current economic malaise. Real Estate is not a oneway street and if buyers are having these issues, you can bet there are a number of homeowners who are also facing uncertain economic times. If we begin to see more upper income folks in trouble then we can expect to see prices drop as many scramble to get out from under and maybe take a little cash with them. Lack of security is a great motivator even for the upper income set.

Foreclosures have not been a significant part of our market but you may see that change. Most of the homeowners in the South Bay-Beach Cities have managed to weather the current financial storm. However if the recession starts to affect the middle-upper income segment of the market then you can expect to see more foreclosures and short sales in the Beach Cities. These lower priced sales in turn lower overall prices for those who may not be in financial trouble. If we suddenly see a spate of foreclosures and/or a dramatic increase in short sales you will see a corresponding drop in prices. The Beach Cities are considered to be a declining market and appraisers don't care if the sale is a short sale, a foreclosure or regular sale when looking at sold comps... a sale is a sale.

On the bright side rates will probably continue to be low through the Spring. If prices continue to slide into the fall and winter, buyers just might get some pretty good deals before the end of the year. As a number of buyers found out this Spring that some of the best deals happened in the 4th quarter of last year and January and February of this year.

If you own your home and need to refinance I know BofA and very likely other lenders will have some new programs that might finally help folks who need to refinance. If you need to refinance call a reputable lender now. The FEDS actually have a number of programs that might actually be of help.

Beach Cities Real Estate: Sold July 2009

noreply@blogger.com (Kaye) — Fri, 14 Aug 2009 01:32:00 +0000

South Bay-Beach Cities... home prices in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo July 2009...

July traditionally marks the end of the Spring/Summer selling season. Many of the homes that close escrow in August and September were actually sold in June or July. August is usually a slow month as folks gear up for one last trip out of town and getting the kids ready to go back to school.

For the last two years August was also the month that triggered bad financial news for our local real estate market as Jumbo loans saw rates move up significantly in 2007 and basically disappear in 2008. 2009 was a different story. Beginning in February, a number of major lenders not only got back in the jumbo loan market but did so with excellent rates. Of course getting one of those loans was more difficult but a number of buyers took advantage of the low rates along with lower prices and came back into the market.

Which brings us to sales figures for the Beach Cities in July 2009... what a difference a year makes. Inventory is down in all the Beach Cities, closed sales and pending sales are up and prices are at their lowest levels in a number of years. However the numbers also point out in very dramatic fashion the ongoing dichotomy between the median listed price and the median sold price. In El Segundo the difference between the median asking price and the median sold price of a home is 31%, in Manhattan Beach it is 33%, in Hermosa Beach it is 20%, in North Redondo the difference is only 8% while it is 39% in South Redondo. Townhomes show a similar picture.

Check out the information for July 2008 and you will notice that the numbers are not nearly so far apart. Of course the differences will vary within the various subareas of each community but the overall numbers tell an interesting tale about the current Beach Cities real estate market.

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

South Bay-Beach Cities: Sold May 2009

South Bay-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: Sold October 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: 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

El Segundo: Sold January-June 2000-2009

noreply@blogger.com (Kaye) — Sat, 08 Aug 2009 21:54:00 +0000

El Segundo home sales from January 2000-June 2009....

It has been said that El Segundo is a small midwest town that was magically transported to California sometime before 1940... and that no one has yet told the residents the town has moved. There really is a Main Street and you can almost hear Judy Garland and Mickey Rooney rounding up the gang to stage a musical that is Broadway bound.

Unlike Manhattan, Hermosa and Redondo there are no homes along the beach. El Segundo was planned as a company town by Standard Oil around the turn of the century. The focus for El Segundo was the large Park in the center of town and the Standard Oil/Chevron plant just south of town where for many years almost everyone who lived in El Segundo worked.

Times have changed and today folks who choose to live in El Segundo are usually looking for a quieter lifestyle then is found in the rest of the Beach Cities. There are few tourists crowding downtown on the week-ends. But that may soon change as El Segundo continues to grow and new restaurants are making downtown a trendy dining area.

Real Estate in El Segundo is like the city itself... a market that seems a bit different then the other Beach Cities. While home prices rose as they did in the other Beach Cities, the volume of sales remained much the same until 2008-2009. Inventory and sales have remained surprisingly stable over the last few years. The peak of the market was 2006 with a median value of $904,000. Since then prices have declined to 2004/2003 levels.

El Segundo: Sold January-June 2000-2009 (click on graph to enlarge)

Redondo Beach: Sold January-June 2000-2009

noreply@blogger.com (Kaye) — Fri, 07 Aug 2009 16:40:00 +0000

Redondo Beach: Home Sales January-June 2000-2009

The Avenues... South Redondo...

Redondo Beach is a unique market within the Beach Cities real estate market. North Redondo is the most affordable area of all the Beach Cities. It is the point of entry for many buyers who want to live within biking distance of the water but can't afford the home prices in Manhattan, Hermosa or South Redondo.

South Redondo is the oldest of the Beach areas and still maintains a number of homes built in the "teens" - '30's. Many have been well maintained over the years and can be viewed during the Redondo Historical Homes tour. Sadly others are destined for the wrecking ball due to years of neglect. Generally South Redondo home prices are lower then Manhattan and Hermosa for two reasons... commute time and non-conforming zoning in most of the residential areas.

The Avenues in South Redondo feature classic examples of the types of architecture that were common in so much of Southern California through the 1950's. These streets are wide and are just a short walk to the sand.

North Redondo is often the precursor to the direction of home prices ... either up or down around the Beach Cities. It is the entry level buyer who often determines when prices begin an upswing and when the cycle stops. The upper level may sustain price increases in some areas but the entry level buyer signals price comfort levels. In 2006, the North Redondo townhome market virtually came to a halt for 4 months as entry level buyers began to question the market. While sales picked up in the spring of 2007, the handwriting was on the wall... so to speak.

As real estate prices in Manhattan and Hermosa are hovering between 2005/2004 prices, both North and South Redondo have seen home prices decline to 2004/2003 prices with sales volume well below those years. If you are trying to "time" the market it might be a smart move to keep an eye on this often overlooked segment of the market. While the Manhattan Beach home market is often the last to drop and the first to recover; the North Redondo market usually gives a clue to where the overall market is headed when it begins to stabilize.

Redondo Beach: Sold January-June 2000-2009

South Redondo: Sold January-June 2000-2009(click on graph to enlarge)

North Redondo: Sold January-June 2000-2009

Hermosa Beach Real Estate: Sold January-June 2000-2009

noreply@blogger.com (Kaye) — Tue, 04 Aug 2009 03:08:00 +0000

Hermosa Beach has always been the younger version of Manhattan Beach... a little more casual and a tad more non-conformist then its sister city to the north. But like all younger siblings Hermosa is beginning to grow up...

New construction in the north end along The Strand and many walkstreets is rivaling prices in Manhattan Beach. The Hermosa Valley is home to some very pricey homes on large lots. This quiet area is a "locals knowledge" area similar to the "estate sized lots" just east of Sepulveda in Manhattan Beach. The Hermosa Hills east of PCH are also seeing older homes being torn down to make way for larger homes often with some fabulous views.

Much of Hermosa is made up of non-conforming zoning with townhomes next door to single family homes or small income properties. Hermosa has managed to retain more of the older beach cottages then Manhattan which makes for some quaint and charming walk street homes.

While the volume of sales is down by a large percentage...the overall median price of homes in Hermosa has not declined... but has in fact gone up every year since 2000. The reason is some hefty sale prices along The Strand, in the Sand section and in the Hermosa Valley. In the Hermosa Hills, east of PCH, we see a different story. Not only are sales down but prices are closer to 2003 levels.

As with Manhattan Beach one of the looming issues is the lack of comps for some of the higher priced properties. With only 32 home and 28 townhome/condo sales in all of Hermosa from January-June you can expect some real issues with appraisals in the coming months.

Hermosa Beach: Sold January-June 2000-2009(click on graph to enlarge)

Hermosa Beach: Sand January-June 2000-2009

Hermosa Beach: Hermosa Valley January -June 2000-2009

Hermosa Beach: Hermosa Hills January-June 2000-2009

Buying a Beach City Home: New Rules Will Affect Escrow Closing Dates

noreply@blogger.com (Kaye) — Tue, 28 Jul 2009 17:20:00 +0000

It seems that the folks in D.C. are still very busy trying to close the barn door ... long after the barn has burned down. While I give them marks on one hand for trying to fix a number of problems within the home lending sector ... you have to wonder if they actually give much thought to how changes in laws will affect real people.

You also have to wonder why they don't fix the biggest problem in the industry... the lack of regulation of the fees charged by lenders to borrowers. While there has been lots of talk over the years about regulation nothing ever seems to make it out of committee.

The Mortgage Disclosure Improvement Act contains some major changes that may affect your escrow closing date on all loans that are covered under RESPA related to an owner occupied residence. The second change covers new regulations concerning the financial information you provide to your lender if you are obtaining a conforming loan.

Changes to Truth in Lending:

Starting on July 30, 2009 the following changes will be implemented:

1. Within 3 business days a lender must provide a borrower an initial good faith estimate of the terms of the loan and the lenders charges.... however a lender must now wait a minimum of 7 business days after the initial disclosure is sent to close the loan.

2. If the initial good faith estimate changes because... the interest rate goes up or down by more then 0.125% or there is a change in the fees the borrower is charged by $100 or more... then a new disclosure must be given to the borrower and the escrow can't close until at least 3 business days after the borrower has received the revised disclosure. There are a number of items that can trigger either of the above situations and extend the escrow period by 5-6 days.

This may not seem like a big deal... but if you have locked in a specific loan rate and your lock is set to expire and you suddenly have to do a new disclosure it could be very expensive if you have to extend the rate. This could also raise some issues if you are buying a home that is part of an exchange... the rules are very specific about closing dates and a late closing could create tax consequences for a seller.

I expect that what will happen is that buyers and sellers are going to have to make some major compromises on closing dates and taking possession if there is even a hint that the original estimate might be changed.

Income and asset documentation changes:

The second change will go into effect on September 1, 2009. The changes will affect credit scores, income calculations, income from stocks bonds and mutual funds, asset documentation, retirement assets and trailing spouse income. There will also be major changes in the requirements on owner occupied 2 unit properties. You will need more money down and higher FICO scores.

Here are a few highlights:

1. Credit, income and asset documentation can't be older then 90 days. So if you got qualified in March you would need to submit new information by July.

2. Lenders now must compare your filed Federal tax return to the income you are stating. Pay stubs will not be enough by themselves.

3. If your spouse is a trailing spouse and doesn't have verifiable new employment on the date you move you can't count the expected income until the spouse actually has a job.

4. You can now only use 70% of the value of your Stocks, bonds and mutual funds assets... previously you could use 100% of the value.

5. If you are retired then you can only count 60% of your retirement assets rather then 70%.

While many of the changes being enacted by Congress are meant to curb previous excesses as we saw with the change in Appraisal rules... sometimes good intentions are not enough.

Manhattan Beach: Market Snapshot July 23, 2009

noreply@blogger.com (Kaye) — Sat, 25 Jul 2009 23:43:00 +0000

Manhattan Beach: July Days on Market

Inventory has dropped significantly over the last few months as sales have shown a marked improvement. Manhattan Beach home sales in April, May, June and July were up considerably over the preceeding 6 months. Low interest rates and falling prices have helped to boost sales over the last four months.

Traditionally sales begin to slack off in August as folks think about a last trip for the summer and gear up for school to start. From September to the end of October sales continue to be on the slow side but often post a slight uptick toward the end of the year as deals come together for those who must sell and those who must buy before the end of the calendar year.

If interest rates continue to be low, jumbo loans stay available and prices keep dipping; then we may see a slightly longer selling season... perhaps into September. The major key to continued sales will be prices. Of the 19 closed sales in Manhattan Beach as of July 23, 2009, 14 were under $2M. Currently of the 153 homes for sale... 71 are under $2M and 82 are over the $2M mark. This is a market that is out of balance. Generally the majority of homes are in the middle price ranges. In Manhattan Beach we are seeing inventory levels below $2M declining while inventory above that range is increasing with few sales.

While prices are hovering between 2004-2005 levels in all the Beach Cities, there is still a strong core of homeowners who believe they are immune to the market. To be fair this is not limited to Manhattan Beach but is also a hope of many home sellers in Hermosa and South Redondo. As low appraisals continue to hit the market, many of these sellers are going to find themselves in a pickle when there are not enough comps to justify a higher price and buyers won't pay more then the appraised value.

Manhattan Beach: Market Snapshot July 22, 2009( click on graph to enlarge)

Manhattan Beach: Price Ranges July 23, 2009

Manhattan Beach: Market Snapshot 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

Manhattan Beach: Market Snapshot March 13, 2008

Manhattan Beach: Market Snapshot February 26, 2008

Manhattan Beach, CA: Market Snapshot February 11, 2008

*There are a few more sales and pending sales not on the MLS that are not included in the graphs.

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

noreply@blogger.com (Kaye) — Mon, 06 Jul 2009 21:05:00 +0000

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.

Manhattan Beach: YOY...Sold January-June 2000-2009

*** 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

noreply@blogger.com (Kaye) — Sat, 04 Jul 2009 21:55:00 +0000

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

noreply@blogger.com (Kaye) — Tue, 30 Jun 2009 19:21:00 +0000

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