Redondo Beach: Craftsman Homes

I’ve always maintained that if we had a major recession all bets would be off about what would happen with home prices in Manhattan Beach and the Beach Cities. I think it’s safe to say that we are definitely in a recession. The recession, combined with the ongoing upheaval in the stock market and the continuing lack of credit in the financial sector, will ultimately lead to lower prices for all the Beach Cities.

The big question facing our local real estate market is whether or not we will see small declines in value or get hit with some big losses. The truth is I don’t know and neither does anyone else. So far the South Bay economy has held up fairly well. We haven’t had a lot of local companies posting large layoffs. We seem to be diversified enough at this point that we don’t have any major employers in big trouble. That could change but so far so good.

The same is true with the housing market. We have seen some foreclosures in the Beach Cities but compared to other areas of Southern California we are not doing too bad. However that doesn’t mean we are not seeing changes in the housing market. Small signs are beginning to appear… townhomes in Manhattan Village and single family homes in East Manhattan Beach priced under $800,000…homes and townhomes in North Redondo under $500,000… these are just a few of the signs of a changing market.

While we are not seeing a collapse of the market… I suspect that we will see further declines in value. However the Beach Cities should maintain value better then neighboring communities. Properties close to the ocean will maintain value better then those east of Sepulveda. South Redondo and Hermosa will likely hold up slightly better then North Redondo. El Segundo will continue at its own pace… following a slightly different drummer.

Here’s a surprise… even with all the ups and downs since September 15, 2008… the Beach Cities are seeing higher sales volume in October of 2008 then in October of 2007. Pending sales in November are running about one sale per day… not great but better then many anticipated at this point.

South Bay-Beach Cities: Sold October 2008 (click on graph to enlarge) 

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

511 N Dianthus Manhattan Beach: Open Sunday 1-4

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 the best priced home 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.

The current economic climate is of great concern to everyone. The stock market ups and downs have made Dramamine the drug of choice for many who find their stomachs a bit queasy at the end of the business day.

Consumers are cutting back on things that are not considered basics. My nieces have been performing in a Clogging group at Disneyland. We were there Friday and no lines… which was a little surprising but thought Thanksgiving week would be far more crowded. Yesterday we were there again and there were far fewer visitors then usual during Thanksgiving week.

No one knows where out local real estate market is headed. We know we can expect to see further price declines in all the Beach Cities…we just don’t know whether they will be minimal …7%-10% or larger 15%-20%. Interest rates dropped dramatically yesterday but could well be up again by Friday. Much will depend on how much confidence the new President can muster and how quickly consumers perceive better times ahead.

Even in the difficult times we find ourselves facing there are still a lot of things to be grateful for…Tomorrow is Thanksgiving and I wanted to share with you some of the things I am thankful for in my life. I wish you all a Happy Thanksgiving ……..

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

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.