Open Saturday January 3 and Sunday January 4, 2009  1-4 pm

This is a great opportunity for buyers who want to move to the Hill section of Manhattan Beach. The price has been reduced to $1,200,000 making it one of the best priced homes in the Manhattan Beach Hill Section. In addition to a lower price, the owner will consider holding a second trust deed for a qualified buyer. This will allow a buyer to purchase with confidence in today's often confusing financial market. Many lenders will not lend as much as they would a few years ago even to well qualified buyers. If you have been considering purchasing a home in Manhattan Beach but have been a bit unsure about financing alternatives this might be a home to consider.

511 Dianthus in the Manhattan Beach Hill Section offers a good choice for buyers who are deciding to follow a more conservative path. This lovely home has over 1900 sq ft, 3 bedrooms, 2 baths, large dining area, delightful family area and a great entertainment room with space to spare for the big TV and a view that doesn't stop. The serene rear garden and soothing sounds of the waterfall bring a sense of calm after a busy day. A new price makes this home worthy of consideration.... $1,200,000.

In just a few hours 2008 will be gone. I don't think many will be sad to see it go. No one has escaped unscathed from the financial and economic turmoil of 2008.

Our local Manhattan Beach-Beach Cities real estate market has certainly been adversely affected by the disruption to the economy. While we have fared better then other communities in Southern California we have not escaped the problems that affect California real estate.

In our little slice of Paradise prices are down in all the Beach Cities and sales volume is lower then last year at this time. Interest rates have dropped, but jumbo loans( $625,000+), with few exceptions, are still at high interest rates when compared to overall rates. This is a real problem in our Manhattan Beach-Beach Cities real estate market with median prices in most of the Beach Cities over the $625,000 hybrid conforming level.

While conforming rates are lower then at any time since 1971, the requirements to obtain a mortgage are probably stricter then they have been in the last 25 years. It is a bit ironic that lenders who gave loans to anyone who could fog a mirror are currently refusing loans to people who are are well qualified for sometimes inane reasons. As with all things in the financial community... this too will change.

There is a lot of speculation about what will happen in the Manhattan Beach-Beach Cities real estate markets in 2009. While there are those who are predicting a complete collapse in housing with markets returning to 1990 levels, most of us who have lived here for a long time are not quite so pessimistic. We have seen these market dives before and will no doubt see more in the future. If the recession gets worse then we could see more problems but so far we seem to be holding up fairly well. Could that change... of course it could. The market may be slow but it hasn't died.

Thoughts on the housing market of 2009 in the South Bay- Beach Cities.....

Consumers will exercise more discretion in spending. Buying a home will once again be about shelter rather then a short term investment where you expect the value of your home to double in 2 years. 25 years ago an entry level home was not a new 4000 sq ft home in the tree section of Manhattan Beach. People bought small older homes and worked their way up to big new homes over years. I think we will see a return to consumers buying below their means rather then above.

Foreclosures continue to be on the low side in the Beach Cities. Interest rates are at their lowest level since 1971 which means that many of the loans that will be resetting may do so at rates that will not be a problem for owners. Inventory continues to be much less then many had anticipated. As of today there are 507(total) homes and townhomes for sale on the MLS in the Beach Cities.... Manhattan Beach((178), Hermosa(78), N. Redondo (85), S. Redondo (124)and El Segundo(42). While you can expect the number of homes on the market to increase in the spring, we would need to see the economic crisis worsen considerably in the South Bay to create a scenario that dumped vast numbers of homes on the market.

This doesn't mean we won't continue to see prices moving downward... we will. It just means we probably won't see massive numbers of foreclosures and the devastating loss in value that happened in the '90's as long as the employment situation in the South Bay remains fairly stable.

The new Administration seems committed to stabilizing the housing market. The question is whether or not they will be able to do what the old one couldn't... namely bring stability back to the financial sector by buying up toxic assets and creating jobs with programs like the old WPA? If they can accomplish these goals without inflation rearing it's ugly head then the South Bay-Beach Cities real estate market may just squeek by with a minimal amount of problems. Once again only time will tell what awaits us in the future...

HAPPY NEW YEAR

 Kaye

No question that the 4th quarter of 2008 has seen values decline across the board in all the Beach Cities. This month also saw a drop in inventory levels. Some of the drop is seasonal but not all. I think many sellers who could not find a buyer have taken their homes off the market. Some will give up the idea of moving for a few years while others will go the rental route until they perceive a change in the market.

November sales were off in Manhattan, Hermosa, Redondo and El Segundo. Pending sales are also down which means that low sale volume will continue into January of 2009. More stringent rules to obtain loans along with extremely high rates for Jumbo loans seem to be the main culprits. While prices have declined in our area they are still very high compared to other parts of Southern California.

If you are looking for a jumbo loan then bigger seems to be better as Wells Fargo and Bank of America have money for those loans. If you open an account with Wells you can get a very good deal on a loan. According to Craig Filson of Wells Fargo, if you have a FICO over 720 you can get a 30 year fixed rate jumbo from 6.75%-6.85% with an LTV of 70%-75% depending on how large an account you open with them. You might also consider contacting some of the local banks in the Beach Cities as amny of them did not get caucht up in the recent loan debacle and are in great shape with money to lend. Again most of them may require you to have a banking relationship with them.

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

Open Saturday December 27 and Sunday December 28, 2008 1-4 pm

This is a great opportunity for buyers who want to move to the Hill section of Manhattan Beach. The price has been reduced to $1,200,000 making it one of the best priced homes in the Manhattan Beach Hill Section. In addition to a lower price, the owner will consider holding a second trust deed for a qualified buyer. This will allow a buyer to purchase with confidence in today's often confusing financial market. Many lenders will not lend as much as they would a few years ago even to well qualified buyers. If you have been considering purchasing a home in Manhattan Beach but have been a bit unsure about financing alternatives this might be a home to consider.

511 Dianthus in the Manhattan Beach Hill Section offers a good choice for buyers who are deciding to follow a more conservative path. This lovely home has over 1900 sq ft, 3 bedrooms, 2 baths, large dining area, delightful family area and a great entertainment room with space to spare for the big TV and a view that doesn't stop. The serene rear garden and soothing sounds of the waterfall bring a sense of calm after a busy day. A new price makes this home worthy of consideration.... $1,200,000.

In these tough times it's easy to forget that the spirit of the Holiday Season is Peace and Goodwill...

My wish for you is a celebration filled with joy, laughter and love.

Kaye