For the last few years I have shared my thoughts about where I thought the market was headed each year... and this year is no exception.   Making predictions is easy, the difficult part is finding out close your ideas were to reality. 

Last year I thought the market would be very similar to the one in 2009 and I was  fairly accurate.  Truthfully I don't see much change in 2012.  I believe sales will continue to be slow but steady and prices will be flat with a few sub markets markets declining and a few showing increases in value.  . 

Nationally the economy appears to be growing.  The final numbers won't be available for a few more weeks.  Retailers and others are counting on a strong surge in spending in recent weeks  as an indication that we are moving forward.  California's unemployment rate dipped to 11.7% in recent weeks which is still very high but at least it is finally moving in the right direction.  Nationally the rate dropped to 8.6%.   Whether the trend continues down is another issue that all the Presidential  candidates will discuss at length I'm sure. 

Unfortunately there are issues that will affect our economy over the coming months.  Just as we were beginning to see a measure of stability in our country the European nations are showing signs of real problems.  China is also facing economic problems.  As our major creditor this could have an effect on our economic progress.    Like it or not we have become a global economy. 

The Government says the problems faced by the ongoing housing crisis are a high priority but new Federal regulations and guidelines add to the problems. What Bozo thought that adding a tax on mortgages for 10 years to fund the "payroll tax cut" for 2 months was a smart idea. All we need is more of that  brilliant thinking  to make sure the housing market continues to flounder.





Manhattan Beach-Beach Cities Real Estate...

The final sale numbers won't be in until next week but it looks as if  the number of  sales in Manhattan Beach and South Redondo  increased  while they decreased in Hermosa Beach, El Segundo and North Redondo. If the traffic at the local Malls was  any indication of how people were viewing the economy...  things are looking up.   The  Neptunian Womans Club Gift Wrap station at  The Manhattan Village Mall was busier than it has been for the last 4 years.

Our local real estate market saw an increase in the number of distressed ( foreclosure, short sales and pre-foreclosure) property sales in all  the Beach Cities.  Manhattan Beach had the least with about 10%  distressed  sales and North Redondo saw the highest with 21% of closed sales. 

In October the conforming loan amount officially declined from $729,750 to $625,500.  The change didn't take effect until October but lenders stopped making loans at the higher amount  around the end of August.  While the decrease didn't really affect Manhattan Beach it definitely had an effect on the other Beach Cities.   I don't believe it is a coincidence that prices on short sale townhomes in North Redondo dropped significantly at the same time.

I don't think we will see a major change in most of the South Bay real estate markets in 2012 from 2011. Prices will  bounce around as buyers remain cautious.   Manhattan Beach  home prices have been the most stable of all the Beach Cities.  I believe that trend will continue.  North Redondo will likely be plagued by short sales that will push the market down a bit.  Hermosa Beach, South Redondo and El Segundo may well see an uptick in short sales as lenders decide it might be more prudent to  clear their books rather than continuing to delay the inevitable. 

 If interest rates remain stable you could see an increase in entry level prices in Manhattan Beach.  This will hold true if more builders decide to take the plunge and start buying lots.  I know of  a number of agents who are actively looking for buildable lots and fixers in Manhattan Beach.    I don't  think you will see much new construction  in the other Beach Cities  for awhile although there have been a few new projects in North Redondo.

 Obtaining a new loan continues to be difficult.  property prices in the South bay-beach Cities remain high despite the declines in value.  many entry level properties will require Jumbo loans with the drop in conforming loan rates.  New FHA limits will help buyers  but many of their rules discourage folks who don't want to pay the upfront fees required by FHA..  Refinancing your home can take months.  Appraisal issues haven't gone away as out of area appraisers are used by many lenders even though there have been changes to the original law.


While overall Manhattan Beach and the Beach Cities have had fewer problems than many other communities in LA County we are at the mercy of  conditions we have no control over. Many homeowners have been holding on with a tenuous grip as the economy has remained precarious for  longer than expected.   Some good news in the economy would be a welcome sign for everyone.

Manhattan Beach: The Koffee Kart gone.... Oh No...Say it isn't so!

Dear George Loren,

Say it isn't so... No  Koffee Kart in Manhattan Beach... how can that be?

The Koffee Kart was one of the last "local" places in town.. Unlike Uncle Bill's it was a little off the path for most visitors.  Even on Sunday morning you could get a table after a short wait.  It was my favorite place to eat breakfast.

Over the years not much changed.... It was small with cozy booths,  just right for  reading the paper while waiting for breakfast.   The food was always good and the staff  friendly.   My friends and I would walk Sunday mornings and then stop by for breakfast before heading home. 

All of us were  upset about the fire and have been patiently waiting for the sign to read OPEN once again.... I walked by a few days ago and things were looking good... so I was stunned to learn that you won't reopen at the Koffee Kart home.

Please  find a new spot  and reopen soon.. Fans of the Koffee Kart will be waiting to hear the news.  Over the years we have lost a number  places in Manhattan Beach that many of us remember fondly and miss.   I really hope the Koffee Kart doesn't become one more memory of Manhattan Beach.


I'm hoping for good news soon....

A loyal fan


 P. S. The Hibachi found a home in Hermosa... not quite the same as the old place but darn close... So  I know there's a spot waiting for the Koffee Kart near the beach... just like before but maybe a little different....

The State of California recently enacted a new statue concerning the installation of carbon monoxide detectors in 1-4 residential units. The Carbon Monoxide Poisoning Prevention Act of 2011 states that every owner of a dwelling unit intended for human occupancy must install an approved carbon monoxide device in every unit having a fossil fuel heater or appliance, fireplace or attached garage.

Carbon monoxide poisoning is one of the leading causes of death in the home. Carbon monoxide is a colorless and orderless gas that not only causes serious health problems but can kill you. The detectors are similar to smoke detectors and will alert occupants if carbon monoxide gas is present.

The regulations call for all single family homes, townhomes or condos to have the detectors installed as of July 1, 2011. All other types of residential dwellings have until January 1, 2013 to install the mandated detectors. The law requires all properties to have carbon monoxide detectors installed by the above dates whether or not the home is being sold.

The detectors must be centrally located outside of each separate sleeping area in the immediate vicinity of the bedrooms. The detector should be located at least 6 inches (152mm) from all exterior walls and at least 3 feet (0.9 meters) from supply or return vents. The detectors must also be on every level including basements within which fuel-fired appliances are installed and in dwelling units that have attached garages.

The devices are required on properties that are owner occupied and on properties that are tenant occupied. There are fines for non-compliance. The regulations also allow for a stronger form of the law to be passed by individual cities... so don't be surprised to see tougher requirements in some of our local Beach Cities .

Selling a home in today's Manhattan Beach-Beach Cities real estate market truly depends on three things.... price, location and condition.  The days when you could list a property in a poor location and in bad shape and expect a great price are gone.  

Over the years I have shared information about making your home market ready. In fact some of those posts are why sellers call me when it is time to list their home.   Most sellers know that in this market they need to make a home market ready... they just aren't sure what that means in terms of getting the most for the money they have to spend. 

Last week I met with some folks who are thinking about selling their home.  They had lived in the house for about 25 years.   They had maintained the property  fairly well but they had not done much in the way of updates over the years and the home just felt tired.   The yard was blah,... lots of green but few  flowers.  The interior and exterior were shades of brown, tan and Navajo white.  The carpet was worn and the entire home was in need of  freshening. 

As I talked with the owners about things they could do to perk up the house,  I could see they were a bit skeptical  about what I was suggesting.  They were worried that a new buyer would not like the paint or carpet colors they picked.   They wanted to know if they could just credit the buyer for carpet and paint because they were worried they "would spend all this money and the buyer would redo everything". 

This is a concern of many sellers.  They know their home needs some work but they are not sure what to do.  What they don't realize is that it doesn't matter if they put in new carpet and the buyer wants wood floors.  It doesn't matter if they paint the house gray and the buyer repaints it yellow.  What matters is that the house looks and feels clean and inviting when the buyer tours the  home.  If the buyer changes everything later who cares.  What is important is that the buyer  decides to buy the house!

There is a big difference between sprucing up a home and doing a major remodel.   I rarely think sellers should remodel the  kitchen or baths but if the counter tile is cracked and broken they may need to think about  new counters. 

I usually recommend interior painting and possibly exterior paint depending on the condition and color of the exterior. Fresh paint is the most cost effective thing a seller can do to a property.  I always recommend new carpet or refinishing hardwood flooring if the floors are worn. I 'm also a big fan of new faucets/fixtures in baths and kitchens. Light switch plates are another inexpensive item that make a home look better as are new door knobs if the existing ones have paint over-spray.


New landscaping is one of the most important and inexpensive items you can do with the exterior. Colorful flowers are one of the best investments a seller can make. Most buyers make half their buying decision on a property before they go through the front door. Appraisers also are influenced by the way a home looks on the exterior.  Remember... you never get a second chance to make a first impression.


Another reason to spiffy up your home is that buyers are not really sure of the cost to put in new carpet, wood floors, or paint the interior and exterior.  Often buyers believe the cost to be  far higher than the actual cost.  This  is especially true if the house hasn't had anything done prior to being put on the market.  In a buyer's mind the cost to re-carpet is more if the carpet is old and stained then if it is newer.  

Often buyers won't actually do much to a home for a year or so after they purchase if it appears to be in good shape.  Buyers feel more comfortable with a home that doesn't need a lot done immediately.  Dated and clean is usually fine for awhile.  Buyers will pay more for a home that is clean and in good shape than for the same home that looks old and worn.


Property condition can't make up for a bad location or a price that is too high.  However if you and your neighbor down the street are on the market with a similar floor plan and price,  the condition of the house  will often be the deciding factor.