Sometimes consumers get so caught up in the media headlines they miss what is happening in their local real estate housing markets.  I  see this in many of the comments attached to articles in our consumer blog Manhattan Beach Confidential and on my blog.  There are frequent commenters who cut and paste large articles and links on the  "dismal real estate market” or “the devastated economy” trying to bolster their hope that home prices in Manhattan Beach and all the South Bay -Beach Cities are about to tank by another 20%-30%.  So far the market has not accommodated them.

Prices have declined 7%-10% in the Beach Cities since 2005…. not great news if you bought less then 4 years ago and must sell; but hardly a major housing market disaster.  Prices  may well continue to soften  more and will probably remain flat over the next few years…again not great news if you have plans of doubling the value of your home in 2 years.  However  most of us who have lived in the Beach Cities understand that real estate values are cyclical.  The good news is that historically home values in the Beach Cities have continued to increase over the long term despite short term fluctuations. 

 Dan Green has an interesting post on The Mortgage Reports.com   about  Why National Real Estate News is Useless.  This post illustrates the difference in perspective between national and local real estate markets.  On the local level almost every article about foreclosures in California has to do with the areas we know are having massive problems.. San Bernardino County, Riverside County, The Central Valley and Sacramento.  So far even the Daily Breeze and the LA Times can’t find a lot of really bad nesw about the Beach Cites market.    FNC Inc. released a report June 9, 2008,  where they  noted that in certain coastal areas of Southern California  prices are stabilizing and even increasing.  They have a color map showing how the areas fare by value. Contrary to what many believe…the South Bay-Beach Cities  are holding up very well. 

Tonight I showed a property in the sand section that came on the market today.  There were three buyers there at the same time.  I know the property has been shown all afternoon.  I expect there will be multiple offers and it will sell over the list price.  There are a lot of properties currently for sale.  Not all of them will see multiple offers or even sell at the listed price…but some of them will.  Not everyone has 20% down but there are  a number of buyers who have great credit and 20%-50% or more as a  down payment.  Many of these buyers are ready to buy now.  They are very savvy about the Beach Cities real estate market and the financial markets in general.   You have to wonder if they know something others don’t..I guess  time will tell..