South Bay Real Estate Update

Good News! Conforming Loan Limit Increases!!

2008-03-08T11:02:00.000-08:00

Government Announces Conforming Loan Limit Increases

The Office of Federal Housing Enterprise Oversight (OFHEO) today announced it has temporarily increased limits on conforming loans offered by government-sponsored enterprises, Fannie Mae and Freddie Mac, from $417,000 to as high as $729,750 in fourteen counties in California for loans originated between July 1, 2007 and Dec. 31, 2008. Fannie and Freddie are reported to be working out new underwriting standards and expect to begin offering the new loans soon.

Also, on Wednesday, the government raised the conforming loan limit for mortgages guaranteed by the Federal Housing Administration, and has begun offering the maximum limit of $729,750 for 14 California counties, up from $362,790, for loans originated between now and Dec. 31, 2008.

The Fed’s economic stimulus package approved earlier this year called for temporary increases on conforming and FHA loan limits to allow troubled borrowers to refinance out of sub-prime loans and make it easier for many new buyers to qualify for mortgages in high-cost areas, particularly in California where home prices remain among the highest in the nation.

Fed Rate-Cut Winners and Losers

2008-01-23T17:45:00.000-08:00

Fed Rate-Cut Winners and Losers

by Chris Kissell, Sheyna Steiner, Laura Bruce, and Leslie McFadden
Tuesday, January 22, 2008provided by

When the Federal Reserve meets and changes rates we all have questions: What does it mean to me? Will my mortgage rate go up or down? Is this a good time to refinance? Bankrate is here to help. We've looked at five categories -- mortgages, home equity loans, auto loans, credit cards and certificates of deposit -- to determine if the Fed's moves made you a winner or a loser. Here's a look at mortgages:

Winner: Borrowers with good credit

The surprise decision by the Federal Open Market Committee to cut the federal funds target by 75 basis points likely reflects growing fears that the U.S. economy is weakening. Ironically, such worries may be good for people hoping to see lower mortgage rates.

Mortgage rates often dip when investors fearing an economic slowdown grow more conservative and buy up Treasuries and bonds. This causes long-term rates -- and by extension, mortgage rates -- to fall, creating an opportunity to get better terms on a loan.

However, the nation's recent credit woes mean you probably need a sound credit history to take advantage of these better terms.

"If you are a high-quality credit household and you're looking to buy a house, prices have fallen in many markets," says Doug Duncan, chief economist for the Mortgage Bankers Association. "In addition to that, interest rates have come down.

"Those two things indicate that you're likely to get a more affordable mortgage and homes will be more affordable."

People with adjustable-rate mortgages can also refinance to a fixed-rate mortgage. This will lock in their payment for years to come, regardless of the future direction of mortgage rates.

Full Story at http://finance.yahoo.com/loans/article/104266/Fed-Rate-Cut-Winners-and-Losers

SOLD in Manhattan in December 2007

2007-12-31T13:27:00.000-08:00

Here's a list of closed escrows in MB for the month of December 2007. If you have any questions about the value of your home or are seeking expert advise for the purchase of your next property, please call us at 310-418-7339. Click on BeachLifeProperties.com to search the South Bay MLS free!

#	street	Bd	Ba	Built	Sold Dt	$$	DOM	Sq Ft
645	9th	2	2	1950	12/05/07	$3,500,000		1465
1257	8th Street	2	1	1947	12/04/07	$975,000	111	686
1514	Curtis	2	1	1953	12/03/07	$995,000	10	0
2208	Poinsettia	3	2	1950	12/12/07	$1,250,000	8	1832
3404	Pacific	3	2	1956	12/20/07	$1,285,000	9	1748
1630	Marine	3	2	1952	12/14/07	$825,000	139	1680
2101	Wendy Way	3	2	1950	12/24/07	$875,000		1327
1638	11th Street	3	1	1953	12/22/07	$939,000	40	1348
1732	Pine	4	2	1955	12/23/07	$1,130,000	97	1566
1408	Poinsettia	4	3	1999	12/20/07	$1,749,000	17	3110
1725	Oak	4	5	2004	12/13/07	$2,050,000	5	3196
1525	11th	4	3	1990	12/10/07	$1,610,000	106	4222
2509	Poinsettia	5	4	1998	12/08/07	$1,970,000	40	3294
648	35th	5	6	2007	12/27/07	$2,075,000	142	3590
2807	Elm Avenue	5	5	2007	12/14/07	$2,100,000	144	3546
3011	Elm Avenue	5	5	2005	12/07/07	$2,650,000	198	3600
1637	RUHLAND	5	4	1990	12/11/07	$1,749,000	361	3828
1335	11th Street	5	6	2007	12/07/07	$1,835,000	299	3440

C.A.R.'S 2008 CALIFORNIA HOUSING MARKET FORECAST

2007-10-10T19:59:00.000-07:00

C.A.R.'S 2008 CALIFORNIA HOUSING MARKET FORECAST
Home prices throughout most of California will post modest declines next year while sales of existing homes will stabilize from the precipitous decrease experienced in 2007, according to C.A.R.'s "2008 California Housing Market Forecast" released today.

The forecast was presented this afternoon during the CALIFORNIA REALTOR® EXPO 2007, running from Oct. 9-11 at the Anaheim Convention Center in Anaheim, Calif. The trade show attracts nearly 12,000 attendees and is the largest state real estate trade show in the nation.

The median home price in California will decline 4 percent to $553,000 in 2008 compared with a projected median of $576,000 this year, while sales for 2008 are projected to decrease 9 percent to 334,500 units, compared with 367,500 units (projected) in 2007.

"Tighter credit standards, affordability concerns, and a continued standoff between buyers and sellers will contribute to continued weakness in the market going into next year," said C.A.R. President Colleen Badagliacco. "Now is not the time for homeowners to test the waters, only serious sellers should put their homes on the market in what will continue to be a challenging sales environment."

Home Prices Expected to Recover in 2008 As Inventories Decline

2007-07-15T08:32:00.000-07:00

Home Prices Expected to Recover in 2008 As Inventories Decline

WASHINGTON, July 11, 2007 -

Home prices are expected to recover in 2008 with existing-home sales picking up late this year and new-home sales rising early next year, according to the latest forecast by the National Association of Realtors®.

Lawrence Yun, NAR senior economist, said a good buyers’ market has evolved. “Buyers now have an overwhelming advantage given the wide selection of homes available in many markets,” he said. “But with profit margins coming under pressure, homebuilders will limit new construction well into 2008. This should help the overall inventory level to move steadily into a more balanced state.”

Existing-home sales are expected to total 6.11 million this year and 6.37 million in 2008, down from 6.48 million last year. New-home sales are projected at 865,000 in 2007 and 878,000 next year, compared with 1.05 million in 2006. Housing starts, including multifamily units, are forecast at 1.43 million units this year and 1.44 million in 2008, down from 1.80 million last year.

Existing-home prices are likely to rise 1.8 percent to a median of $222,700 in 2008 after a 1.4 percent decline this year to $218,800. The median new-home price should rise 2.2 percent to $245,400 next year following a 2.6 percent drop in 2007 to $240,100.

“Markets that sharply reduce new construction in 2007 will generally experience respectable price increases in 2008,” Yun said. “Local conditions vary considerably, but with historically low mortgage interest rates this summer and sustained job gains, it could be a good time for first-time buyers with a long-term view to test the housing waters.”

The 30-year fixed-rate mortgage is estimated to average 6.7 percent during the second half of this year, and fluctuate around 6.6 percent in 2008.

Growth in the U.S. gross domestic product (GDP) will probably be 2.0 percent in 2007, compared with a 3.3 percent growth rate last year; GDP is forecast to grow 2.8 percent in 2008.

The unemployment rate is likely to average 4.6 percent in 2007, unchanged from last year. Inflation, as measured by the Consumer Price Index, is projected at 2.6 percent in 2007, down from 3.2 percent last year. Inflation-adjusted disposable personal income should rise 3.0 percent this year, up from a 2.6 percent gain in 2006.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

Southern California Luxury Home Values Rise

2007-06-13T21:53:00.000-07:00

High End Of Luxury Markets Remains Strong May 21, 2007

SAN FRANCISCO – Los Angeles luxury home values climbed 6.5% in the first quarter of 2007 compared to a year ago, while San Diego values rose 3.2% and San Francisco values were virtually unchanged, according to the First Republic Prestige Home Index™ by First Republic Bank, a leading provider of wealth management and private banking services.

The Index, which has tracked luxury homes since 1985, found:

Los Angeles values rose 3.6% from the fourth quarter of 2006 and 6.5% from the first quarter of 2007 compared to a year ago. The average luxury home in Los Angeles is now $2.44 million.
San Diego values increased 0.8% from the fourth quarter of 2006 and 3.2% from the first quarter of 2007 compared to a year ago. The average luxury home in San Diego is now $2.17 million.
San Francisco Bay Area values were unchanged from the fourth quarter of 2006 and were virtually flat in the first quarter of 2007 compared to a year ago. The average luxury home in San Francisco remained at $2.92 million.

"Values in the upper tier of the luxury market are particularly strong," said Katherine August-deWilde, Chief Operating Officer of First Republic Bank. "Luxury home values in Los Angeles remain the strongest of our California markets because of strength in the entertainment industry and the diversified economy. The luxury markets in San Diego and San Francisco are also doing very well."

First Republic Bank (NYSE: FRC) produces the Prestige Home Index each quarter with Fiserv CSW Inc., a leading provider of automated property valuation services and home price metrics to U.S. financial institutions. Historical results of the Index are accessible at www.firstrepublic.com.

Los Angeles Area Values

Los Angeles luxury values rebounded 3.6% in the first quarter of 2007 after dipping 0.8% in the fourth quarter of 2006. Real estate agents said that a limited supply of marquee properties in exclusive neighborhoods was responsible for the 6.5% increase in the first quarter compared to a year ago.

Steve Frankel of Coldwell Banker in Beverly Hills said the market above $10 million remains very strong. The lower end of the market is also active, although buyers are being more selective. "The very high end continues to have a real head of steam. Good properties in premier locations are getting top dollar, and there are lots of buyers in the market. Homes from $2 million to $3 million are sitting on the market longer, but still at healthy prices. They're just not flying out the door like they were in recent years."

Whit Prouty of Prudential California Realty in Sherman Oaks agreed. "Los Angeles is not the same as the rest of the country. At this point, we seem to be insulated from what's happening elsewhere." Prouty said the region's vibrant economy has resulted in increasing demand and prices for luxury homes, although the market is more well-balanced than it has been. "Neither buyers nor sellers have the upper hand," he noted.

Like Los Angeles, Orange County's market for homes above $10 million is also robust, with inventories rising for homes selling for $2 million to $4 million. "The high end of the market in Newport Beach and Laguna Beach is very strong," said Jim Turco of Surterre Properties in Newport Beach. "In the $2 million to $4 million range, buyers are being very discreet. It's really become a much more normal market in that price range. No one is dominating either side of the transaction."...

Article courtesy of First Republic Bank

To view First Republic's Prestige Home Index for Los Angeles, go to...

http://firstrepublic.com/lend/residential/prestigeindex/losangeles.html

How do the South Bay's Elementary Schools Stack Up?

2007-03-15T20:48:00.000-07:00

Education is an important part of finding the right home. For a list of available homes within a particular school district, please call Garrett 310-418-7339 or Tiffany 310-283-9848

Data courtesy of www.greatschools.net

Redondo Beach Elementary Schools...

School name	GreatSchools Ratings	\| API \|	Avg. class size \|	Free & reduced- price lunch
Alta Vista Elementary School	10	893	30	13%
Beryl Heights Elementary School	10	890	33	16%
Birney Elementary School	8	801	33	29%
Jefferson Elementary School	10	932	27	6%
Lincoln Elementary School	9	880	29	25%
Madison Elementary School	9	885	29	26%
Tulita Elementary School	9	862	30	17%
Washington Elementary School	8	805	31	36%

Hermosa Beach Elementary Schools...

School name	GreatSchools Ratings	\| API \|	Avg. class size \|	Free & reduced- price lunch
Hermosa Valley Elementary School	10	910	31	4%
Hermosa View Elementary School	10	950	20	<1%>

Manhattan Beach Elementary Schools...

School name	GreatSchools Ratings	\| API \|	Avg. class size \|	Free & reduced- price lunch
Aurelia Pennekamp Elementary School	10	963	32	2%
Grand View Elementary School	10	954	31	1%
Meadows Avenue Elementary School	10	947	28	3%
Opal Robinson Elementary School	10	970	29	1%
Pacific Elementary School	10	971	32	<1%>

Torrance Elementary Schools...

School name	GreatSchools Ratings	\| API \|	Avg. class size \|	Free & reduced- price lunch
Anza Elementary School	9	880	33	7%
Arlington Elementary School	9	871	30	14%
Edison Elementary School	8	844	28	30%
Evelyn Carr Elementary School	7	824	32	43%
Fern Elementary School	8	819	27	25%
Hickory Elementary School	9	873	33	8%
Howard Wood Elementary School	8	841	35	21%
John Adams Elementary School	7	823	31	26%
Joseph Arnold Elementary School	9	861	35	14%
Lincoln Elementary School	8	833	31	21%

Welcome to my Blog! Property is heating up, again!

2007-03-07T21:19:00.000-08:00

Here are the latest stats from Realist...

Sales Statistics for LOS ANGELES County CA
Realist's most recent recording date for this county is 03/01/2007

Single Family Residence
Time Period	Number of Sales	Median Sale Price
Jan 2007	4,376	$538,250
Jan 2006	4,751	$505,000
Dec 2006	5,562	$543,000
Dec 2005	5,892	$510,000
2007 YTD	7,587	$539,000
2006	70,685	$535,000

Condominium
Time Period	Number of Sales	Median Sale Price
Jan 2007	1,585	$450,000
Jan 2006	1,558	$420,000
Dec 2006	1,875	$449,500
Dec 2005	1,890	$415,000
2007 YTD	2,826	$450,000
2006	24,482	$430,000