Sunday, July 04, 2010July 4, 2010 Fireworks shows in the South Bay-Beach Cities...



While many cities will be cutting back next year on July 4th celebrations because of the economic situation... you can still catch  fireworks shows this year.

El Segundo:

The fireworks show starts at 9:00.. get there early to get a good seat!

Redondo Beach:

The show starts at the end of the pier at 9:00.  Parking is at a premium so go early.


Torrance:
The show starts at 9:00 at Wilson Park... this may be the last fireworks display for a long time so enjoy!

Sunday, June 27, 2010

Information on properties that sold in May 2010 in the Beach cities of Manhattan Beach, Hermosa beach, Redondo Beach and El Segundo....

Hermosa Beach walk street

As the Spring home buying rush moves into summer,  the market seems to be settling down a bit from the frenzy earlier in the year.  Inventory is up slightly but still at  lower levels than last year at this time.  Interest rates are at an all time low with conforming loans ( $729,750-) under 5%  for  a 30 year fixed rate loan. .. doesn't get better then that!   Appraisals are coming in a market more often then  they did last year as everyone adjusts to new laws  and requirements.  Prices seem to be on the flat side although slightly higher then last year for entry level properties in all the South Bay-Beach Cities.

The big question is will the market continue to be rather stable in the South Bay-Beach Cities  or will outside market forces once again force changes in our local market.  Lou Barnes seems to think we need to see some major adjustments in the thinking of the boys in DC... and I agree.  Economic conditions are  far more dicey then we think.  If the South Bay can continue to avoid major unemployment as an issue we may  continue to see a fairly stable market with prices bouncing up and down in a relatively normal market pattern. 

South Bay-Beach Cities: Sold May 2010

 

A look at April 2010 home sales in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo...

Manhattan Beach Strand

Seems as if Spring has definitely sprung for the South Bay-Beach Cities real estate market.   Inventory is increasing  slightly from the first quarter as more sellers are testing the market.  While inventory is still well below that of last year at this time, there are definitely more choices then buyers saw a few months ago.   Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo are all  experiencing  a rise in home sales after some very  lean years. 

Prices at the entry levels are holding steady and even showing slight increases from last year in all the Beach Cities.  That part of the market has been very steady now for about a year.  The middle  of the market is also  showing  signs of stabilizing while the upper levels are anyone's guess.   There are sales in the $3.5+ range but most of them  found buyers after some big price reductions. 

On the other hand, Strand properties in Manhattan and Hermosa are posting prices that are well above those found at the height of the market.   These properties are the epitome of the old adage location, location, location.    The South end of  the Manhattan Strand and the North end of the Hermosa Strand seem to be the place for  upper end properties.  It will say a lot about the draw of our local real estate market if these homes find buyers near the asking prices.

Today Governor Arnold Schwarzenegger signed  Assembly Bill 183(CA Homebuyer Tax Credit) into law.   The new law is really an extension of the old California tax credit bill  from 2009 that was so popular that it was out of funds a few months after it was passed.  For a State that claims to be broke the bill allocates a large chunk of channge....$200,000,000 for the credit.  The total allocation of $200,000,000 in tax credits is divided between first time home buyers( people who haven't owned a home for 3 years) and purchasers of homes that have never been lived in (new homes).  Each category has $100,000,000 available until the credit runs out... which might be very soon judging by how quick funds dried up last year.




A brief outline of the bill:


1. The purchase of a qualifying residence  must occur (close escrow) on or after May 1, 2010  or before December 31, 2010,  or after December 31,2010 and before August 1, 2011,  subject to specified restrictions. ( I believe this refers to new construction that was purchased prior to December 31, 2010 but not completed until later)


2. The amount of the tax credit is the lesser of 5% of the purchase price or $10,000.    However as in the 2009 version there doesn't appear to be either an income or purchase price limit. So first time buyers in the Beach Cities or folks buying new construction.. no matter what the price... qualify for the credit.  This has to make the folks at 360 South Bay very happy.


3. Only one credit will be issued to a first time home buyer that buys a new home.  So if you bought a new home last year you don't get the credit again this year.

4. A "qualified principal residence" is an attached or detached home that will be used as the principal residence of the purchaser, is eligible for the homeowner's exemption under Section 218, and has either never been occupied, or is purchased by a first time home buyer.

5. A "first time home buyer" is and individual, or individual's spouse, who has no present ownership interest in a principal residence during the preceding three year period, as of the date of purchase.
6. The tax credit is paid over a 3 year period.   You have to occupy the qualifying residence for at least 2 years immediately after the purchase.  The tax credit is non-refundable, so if you don't actually use it during the specified time,  you lose the credit and any credits you have taken will be recaptured.

7. You can reserve a credit prior to close of escrow. If you wait to apply after the escrow closes you must apply for the credit within 2 weeks of closing or lose it.



As a little bonus.. if you qualify for the Federal tax credit and  are under contract by 4/30/2010 and close by 6/30/2010 you could  likely get $18,000 as a credit from the Feds and the State if escrow closed after May 1, 2010... not a bad deal if you can get it....

Click for the full text of the bill... AB183

2009 was  a year of changes as  home prices in most California communities, including the Beach Cities,  hit the skids.  Builders and homeowners found themselves trying to decide if they should take a huge loss now or rent their unsold properties and pray for a better market in a few years. For some there was no choice as banks made the decision for them by foreclosing on the properties in question.

Things seemed to turn around in late Spring as lenders once again began funding Jumbo conforming loans while the FED helped keep interest ratts down.  Low prices and low interest rates  boosted home sales.  After months of too much inventory it seemed as if there was no inventory.  Whispers of multiple  offers on well priced properties proved true and buyers and sellers were suddenly asking themselves if we had finally reached the bottom of the market.  

They say that perception is reality and this may be the case for 2009.   Our perception of the  market just might be steering us toward a reality that isn't  quite what it appears to be. There  is no question that inventory has declined since January 2009, not only in the South Bay-Beach Cities,  but in most of California and the nation as well.  The question we should be thinking about is why. 

The immediate response is that sales have skyrocketed in the last year.  While this is true in part... sales did increase over the last 6 months... when you look at the number of sales in 2008 vs the number in 2009,  sales volume didn't really go up that much.  There were only 125 more sales in 2009 then 2008 in all the Beach Cities.  That works out to 10 more sales a month in Manhattan, Hermosa, Redondo and El Segundo combined.  That's good but maybe not enough to account for the decline in inventory we have seen in recent months.

Inventory has decreased for a lot of reasons.  Some homes were taken off the market and  rented which means they will be off market for at least 12 months.  Many owners who tried to negotiate a short sale with their lender  gave up  and are now  moving toward foreclosure.  Other properties were taken off the market because they didn't find buyers.  Since the first of the year some  homes have returned to the market with lower prices and found buyers fairly quickly.  I expect we will see more of these homes returning to the market as sellers realize that prices are not moving upward anytime soon.

Manhattan Beach saw the largest drop in inventory, 55 fewer homes were for sale in January 2010 then in January 2009.  Hermosa, Redondo and El Segundo saw a much smaller shift in inventory. If you view the Beach Cities as a whole there are only 93 fewer homes for sale  in January 2010 then in January 2009...

The December 2009 survey by The Public Policy Institute of California indicates that most Californians are a pessimistic bunch about where the economy of the state is headed.  Until we see the entire economic picture brighten a lot both statewide and nationally,  I don't think we are going to see an end to the housing issue... even for those with deep pockets.

South Bay-Beach Cities: Sold December 2009

In coming weeks I'll be posting year over year sales data for Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo.