South Bay-Beach Cities Real Estate/ Homes for Sale

Manhattan Beach, CA : Market Snapshot November 8, 2009

Manhattan Beach, CA homes for sale, in escrow and sold as of Novermber 8, 2008

Downtown Manhattan Beach

Traditionally November and December are our slowest real estate months. In the best of times people are more concerned with the upcoming holidays then buying a new home. The recent turmoil in the financial markets and worries about recession along with concerns on policies a new President will add to the mix, may add up to the lowest sales volume we have seen in Manhattan Beach and the Beach Cities in a long time.

Sales in October turned out better then expected with 21 homes and 5 townhomes closing escrow by the end of the month. November is looking a bit bleak, no doubt reflecting the turmoil of September and October. As of today no homes or townhomes have actually closed escrow since November 1, 2008.

Pending sales look a bit better… there are currently 26 pending home sales (5 since Nov 1) and 6 pending townhome sales (2 since Nov 1). Inventory is about the same with 176 homes and 38 townhomes for sale.

There is no doubt consumers are pulling back. Last Sunday I went to the Pacific Theatres and there were not many people in the theatre and no line at PF Chang’s… there is always a line at PF Changs. My Hair guy tells me his business is off by 10%. Macy’s has a new sale every week. Even Nordstrom is heavily promoting sale items. With luck the South Bay will weather the recession better then other areas but we will defintiely be affected.

While home prices in Manhattan Beach are coming down the market remains on the high side. There are 11 home for sale in east Manhattan that are priced at less then a million. A “C ” location tree section lot hit the market today at $799,000. This is the only property for sale under $1M West of Sepulveda. Keep an eye on this one. In the mid-market level there are 83 homes for sale under $2M. 40 of those homes are priced between $1M and $1.5 M. At the other end of the spectrum there are 15 homes priced over $5M and 5 of those are priced over $7 million.

Manhattan Beach: Market Snapshot November 8, 2008

Manhattan Beach: Price Ranges 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

FYI: Those who want to take advantage of the $729,750 conforming loans only have a week to find a home as most lenders will not make these loans if escrow isn’t opened by November 11, 2008 and the transaction closed by December 15, 2008

Manhattan Beach Open House: 511 N. Dianthus Open Sun November 16, 1-4pm

Open House Sunday November 16, 2008 1-4 p.m.

This is a great opportunity for buyers who want to move to the Hill section of Manhattan Beach. 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…. $1,269,000.

If you are not quite ready to make a formal appointment but would like to see this house why not visit me Sunday 1-4 p.m. to view this Manhattan Beach Hill section home.

Remember….Great views….nice home… good price! See you Sunday!

*Chryste Fisher of Milestone Mortgage in her morning update said that lenders will soon stop funding the Jumbo hybrid of $729,750. You must be in escrow by 11/15/08 and close by 12/15/08 to get this loan amount. As of January 1, 2009 the limit drops to $625,000.

Manhattan Beach Hill Section: Open House Saturday Nov 1, 2008 1-4 pm

Open House Saturday November 1, 2008 1-4 p.m.

Last week we fielded an offer that didn’t come together. The buyers really like the house and the sellers want to sell but we were unable to make everyone happy. I really appreciate people taking the time to write offers because everyone learns a lot from offers that are presented even if they don’t get accepted.

One of the things to come from this offer was that my sellers were able to evaluate the possibility of carrying back a second trust deed as part of the transaction. We covered all aspects of the sellers taking back a loan and decided that it made sense for both buyer and seller.

As most buyers are aware lenders are now overly strict about how much and to who they will lend money. After practically giving money away to anyone who could fog a mirror, lenders are now leery of even super qualified buyers if they are looking at loans over the *conforming limit.

The weapon of choice for lenders today is to decrease the LTV (loan to value) for loans by increasing the amount down. If you are looking for a loan over the current $729,795 limit most lenders want to see 25% down or a 75% LTV. On a loan over $1,000,000 they want to see 30% or a 70% LTV and the higher the loan amount bigger the down and the smaller the LTV.

That means that on a property in the price range of 511 N. Dianthus ( $1, 2,659,000) a buyer would likely have to have at least 25% to 30% down to be sure they would get a loan. As the sellers are willing to help with the financing a buyer can purchase with 20% down, a seller carry back of 10% for a LTV of 70%. This means there should not be any surprises at the close of escrow by a jumpy lender who said they would make a loan with 20% down but then changed their minds at the last minute and want more down.

There are buyers who do have enough money for a larger down so they might not need the sellers to help with financing. On the other hand if you are a buyer thinking about doing some remodeling then it might make sense to have the seller carry back a note to free up cash for a few stylish improvements.

If you are not quite ready to make a formal appointment but would like to see this house why not visit me Saturday 1-4 p.m. to view this Manhattan Beach Hill section home.

Remember….Great views….nice home… good price! See you Saturday!

South Bay-Beach Cities: 8 Ideas to help you sell your home

8 ideas about selling your home in the South Bay-Beach Cities of Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo.

I’ve written a lot of posts about selling homes in the Beach Cities. For a long time the advice was pretty standard… price it right…make sure it is clean… spruce up the landscaping… advertise it everywhere and price it right. These items are market basics and should be part of any plan to sell. But in today’s South Bay- Beach Cities real estate market a seller may need a few more innovative ideas to get their property sold. One of the good things about being in real estate a long time is that while every market is different they are also a lot alike. The California real estate market is one of booms and busts. It is cyclical by nature and usually changes every 7-10 years. As markets change sellers need to change with them and often must start thinking outside the box. In today’s market it is even more important for Sellers to think outside the box if they need to sell.

So what can a seller do to get their property sold? Here are 8 ideas that may improve your chances…

1. Make sure that you are a seller: I know that sounds a bit strange but a lot of people with homes on the market are not really sellers. They are might be sellers… that is if they get an offer they like and if they find a new home they like then they might sell their home… These sellers are generally not serious about selling and will rarely get an offer they like. Having a home on the market is difficult at best. You have to always keep it neat and be ready to show at short notice. These sellers would be much happier if they took their homes off the market and waited a few years for the market to change or until they really need to sell. Don’t think taking your home off the market until the Spring will make it more valuable…. it won’t. Right now the best you can hope for is that prices will reach the point where they flatten out sometime next year. I don’t think you will see prices begin to move upward again for another 4-5 years.

2. Price it right and keep the price right: This is the # 1 item on everyone’s short list. But it’s not always as easy as it sounds in today’s market… especially now that it is taking longer to sell a home. You can look at all the comps, spiff up the house, be right on the money and still not see offers very quickly as buyers are taking their time. Then in a few weeks a new listing hits the market that is significantly lower in value because it is an REO or a desperate seller and suddenly you have new market values. You need to be aware of what is happening in the market all the time. Recently a number of listings in Manhattan Beach saw some major price reductions. If you have a home in competition with those listings the value of your home just went down. So you need to know your market and where it is headed.

3. Have a clear idea about what you want to do before you list: If you want to buy another home then you should have an idea about prices where you want to move. If you plan to rent then you need to know in advance what the rental market is like. If you are downsizing to a smaller place then you should start to go through things you may want to give to friends or relatives or to Good Will. These are seemingly small decisions that can take a lot of time. If you get a buyer who needs to move today you don’t want to lose him because you are not ready to move.

4. Consult a Stager:. You know you will probably have to clear clutter, paint , possibly put in new carpet and landscape so why not get someone who knows how to do this give you a hand along with some great ideas. Sometimes a short consultation with someone is enough to determine how to make your home shine and show off the best features.

5. Make sure the house always looks great: If you are working full time or have a large family this might mean hiring a professional to spruce up the house once a week. Consider this a bonus for always having to be in the mode to show.

6. Leave the house during showings: I know a number of sellers who have lost themselves bunches of money by being too chatty with a potential buyer. It’s one thing to talk about a roof problem that you have had fixed but quite another if you start discussing how you have to sell asap because of a move to New York. Remember that you are always in negotiation with the buyer and their agent. Keep your lip zipped when talking about money.

7. The First Offer may be the best: I don’t know why this is true but it is almost 90% of the time. Don’t disdain that first offer that is a few dollars less then you want in a down market. It could not only be the best offer you receive but the only one for a long time. Now that’s not to say that all first offers are good ones… sometimes they are way off the mark… but you need to carefully evaluate the offer before dismissing it. For instance an offer that allows you to stay in the property rent free for a month if you are waiting for a home to close escrow in another area might be worth more then you think when compared to having to rent a place short term or get a hotel room and put all of your possessions in storage. If you are buying a new home then a quick escrow with cash in the bank might just get you a better deal on your up leg purchase. Again you must evaluate all offers as there is a definite time factor of money that comes into play.

8. Think about taking back a 2nd TD: While some sellers have little or no equity in this market there are still a lot that have a a great deal of equity in their homes. As lenders become more persnickety about the amount they will loan even to well qualified buyers it might be to your advantage to take back a 5%-15% second at a good interest rate if the buyer has a sizable down payment. I would not suggest it if the buyer has less then 15% down but it is something you might consider for buyers who have 15%-20% with great FICO scores but need a bit more room if the lender decides at the last minute they want 25% down which is happening a lot in our market. It’s also a way to make up a little money if you settle for a lower price. You will be able to get the current market rate which will be better then rates offered by banks. I just had a long discussion with the sellers of 511 N. Dianthus about this. We went over all the good and bad points and decided that it makes sense for them to take back a note.

Selling your Beach City home in today’s real estate market can be a challenge. However with some forethought and a little luck it will happen. Be patient and remember a sense of humor always helps. If you can laugh at the small absurdities of life the big ones get a bit smaller….

South Bay-Beach Cities: Foreclosures... where and how many?

The big question: How many foreclosures are there in the Beach Cities?

Trying to keep up with the economy and Wall street is like trying to beat Tiger Woods when he’s 1 stroke down on the last 17th hole… a whole lot harder then it looks. Consumers are caught in the middle as they watch the stock market and the value of their portfolios move up and down like a yo yo while media headlines talk about recession and unemployment. Pundits tell us that lenders are not making loans amid predictions of more foreclosures while the same headlines also tell of increased sales because of the foreclosures. It seems the economy changes day to day and sometimes hour to hour.

Real estate prices in the South Bay Beach Cities have always been a major topic of conversation and more so now given the current economic climate. Buyers want to know when prices will drop 50% and sellers want to know when they will move back up. Reality is somewhere in between. Our little slice of paradise is still not seeing huge numbers of foreclosures nor massive declines in value… but that could change if the South Bay economy begins to see job losses along with increased foreclosure activity.

So far the Beach Cities have managed to hold up better then other parts of California when it comes to real estate values. But that doesn’t mean we are not seeing an increase in foreclosures and short sales along with lower prices. Prices have dropped in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo. In the current economic climate we will see prices soften a bit more. Much will depend on how badly the South Bay economy is hit by the economic problems that are being seen in much of the state.

Foreclosure is a process that begins when homeowners find themselves unable to make their mortgage payment and ends when the owner either makes up the back payments or the home is sold at auction. An important item to remember is that throughout the course of events a homeowner can redeem their property and stop the process by paying the past due amount and any penalties involved.

The process usually takes around 6 months or longer and involves a number of steps before the bank or someone else winds up owning the property. A new law in California requires that a lender must notify a homeowner at least 30 days before sending out a default notice. In the normal course of events about 15% of homes that receive a NOD actually go through the entire process of foreclosure. However in today’s economic climate we can expect a higher percentage … closer to 50%… to become REO property. In the normal course of events it takes a minimum of 3 months of no payments before a NOD (notice of default) is issued by a lender to the homeowner. If the homeowner doesn’t contact the lender and try to work out an arrangement with the lender to halt the process or make up the back payments the lender will issue an NOT (notice of trustee sale) which is a notice to the owner that if the payments are not brought current then the property will be sold at auction to the highest bidder… which usually winds up being the bank. At this point if the owner has not worked out an arrangement with bank, found a way to redeem the property or an outside bidder doesn’t get the property; the bank becomes the owner of the property and it is officially an REO (real estate owned) property.

So how are we doing in the Beach Cities? Let’s see…… The information** below is for the period January 1, 2008 to September 2008. (click on the graph to enlarge)

South Bay-Beach Cities: NOD’s Jan - Sept. 2008

South Bay-Beach Cities: NOT’s Jan - Sept. 2008

South Bay-Beach Cities: REO’s Jan - Sept 2008

Myths and rumors about foreclosures:

If you know a home is in foreclosure just go directly to the bank and make them an offer…..

Until a home is officially deemed to be an REO(bank owns it) it can not be purchased from the bank. The owner retains ownership until the property officially changes hands during the auction/sale process.

**I will begin updating foreclosure information on a monthly basis for the Beach Cities. The information is from Southland Title and is based on recorded information for all types of properties(homes, townhomes/condos and residential income properties).

The main photo above is courtesy Jeff Turner. Jeff’s company Real Estate Shows is the program I use for my videos. Thanks Jeff!

Lenders are stockpiling foreclosed homes so the public won’t know how bad things are….

Banks may be greedy but they are not entirely stupid…

By Federal law lenders can not hold a property longer then one year on their books or it costs them huge amounts of cash that must be held in reserve against the property. The problem for most banks is that they don’t really know how to handle foreclosures and it simply takes a long time for them to get the properties to market. It would make no sense to hold property off the market and then flood the market with huge numbers of foreclosures.

My webmaster is having issues with formatting… so I apologize for the way the graphs don’t seem to fit right…we are trying to solve the problem