RPV market update

There are currently 133 single Family homes for sale and 29 Condo's and Townhomes for sale. Single family homes start at $569,000 for 2 br, 2 bath, 1200 sq.ft home on a 6,500 sq.ft.lot to $6.9 million for a 5 br, 7 bath, 10,000 sq.ft home on a 30,000 sq.ft lot. Condo's and townhomes start at $299,000 on the east side of the hill for a 2 br, 2 bath and go up to $899,000 for a 2 br, 2 bath overlooking Trump National golf course with Catalina Views.

There are currently 59 homes in escrow... Average time on the market is about 75 days.

December 31, 2007 Listings update

First of all I would like to wish everyone a HAPPY NEW YEAR!

The Palos Verdes Peninsula only has a total of 148 single family home listings at the present time, of those, there are only 84 in Rancho Palos Verdes. Only 26 0f those listinga are under $1 Million. So, as you can imagine, the inventory is quite managable and in some cases it is still hard to find the right property for your qualified buyers. I am currently working with four different buyers and at this point I am at a standoff until more listings come on the market. 

I just put a listing in escrow on Avenida Esplendida and I had 5 offers in less that 7 days. See below.

So, what the rest of the nation is reading in the papers about how tough things are, really doesn't apply to Rancho Palos Verdes.

 

 

Rancho Palos Verdes general info

http://www.palosverdes.com/rpv/ - The city website.. Rancho Palos Verdes is a quiet, affluent suburb of Los Angeles situated on the Palos Verdes Peninsula. It has a spectacular coastline on the Pacific Ocean. Santa Catalina Island is visible on clear days. The Trump National Golf Course, owned by the Donald Trump organization, is surrounded by expensive homes with views of the golf course and blue waters of the Pacific Ocean. Point Vicente Lighthouse, built in 1926, is another scenic place not far away. The Coast Guard still runs the lighthouse. Los Verdes Golf Course is just off Hawthorne Blvd. and also has beautiful homes around it with great views.

A book that helped me alot... and still does!

Every once in a while you come across a book that really give good ideas and is entertaining at the same time.

About 2 years ago I was a member of "By Referral Only" and joined the coaching service. I had a coach that really wasn't a whole lot of help because she acted more like a 'shrink' that a motivator. But she did recommend a book to read called "Mr. Shmooze, The art and Science of selling through relationships" by Richard Abraham, that I thought was real good, and I will always be thankful to her for...

It's not like you would do everything mentioned in the book, but it sure gives you some ideas and acts as a refresher course about how to be thoughtful, and at the same time retain clients... After all, isn't this business about keeping clients and having them remember us and referring their friends to us? I try to read the book over again every 6 months... it is great, comments?

Market chart up to July 2007 for Rancho Palos Verdes

As you can see, the number of listings is up from April, when I last ran the Statistics but so are sales.

This market is still moving but takes more time on the market than we are used to over the past 4 years. All in all a normal market like this is better for us in the long run.

The FED Reacts: Better late than never.

One thing we have to realize is that the Federal Reserve does not always react when it is obvious to those of us that see what is going on in the trenches! The FED today has now reacted to the situation :

"The Federal Reserve, in a statement that underscores the deepening severity of developments in credit markets, said it is "providing liquidity to facilitate the orderly functioning of financial markets," and will pump enough money into credit markets to keep the Fed's target for the federal funds interest rate at 5.25%. U.S. federal-funds futures early Friday priced in about a 100% chance that the Federal Reserve will reduce its key lending rate by a half-percentage point to 4.75% by the next policy meeting on Sept. 18." ...from The Wall Street Journal on August 19,2007

One thing to remember is that no matter what the FED does, it takes time to see the effects and it always overdoes everything. If it is in a 'raise rates' mode, it usually raises them too high. It makes it's decisions based on lagging indicators. There is no quick fix.

The FED action today (injecting money into the system) was done primarily to help stabilize the Mortgage backed securities market. Their next move will most likely be to reduce interest rates, currently standing at 5.25%. This is the rate banks charge each other on overnight loans.

 

Thoughts on interest rates and the bond markets.

It was interesting reading yesterday in the Wall Street Journal about Bill Gross of the PIMCO bond fund based in Newport Beach, California. He is one of the most successful Bond fund managers in the United States if you look at his record over the past 15-20 years, averaging around 8% profits on a yearly basis, when most other fund managers considered 'successful' average between 4 or 5%.

Well it seems 2006 and so far this year, he has fallen in rank, much to the delight of some other managers.

He did so because he was betting that interest rates would be coming down, so he went long (Owned) bonds. Of course we all know that when bonds go up, yields come down. Well he was wrong with a sizable bet. Now, you know a guy like Bill doesn't put all his eggs in one basket, that's why he still managed a normally profitable year.

The point of all this is that he is still betting on interest rates coming down and knowing him over the long haul, he will be right shortly. If he is, then I don't have to tell you what lower rates will do for the housing market...

Another surprise was that he disclosed that Alan Greenspan would be coming aboard as an adviser to his PIMCO fund... He will most likely be saying good things about the housing market and lower rates shortly too... Nobody likes higher rates in election years...

Rancho Palos Verdes California Stats

Sometimes a graph say's it all!

 

These graph's show you exactly what the inventory is doing in Rancho Palos Verdes, California. As you can see the inventory of available single family homes has risen to ninety, from a low of seventy in February 2007, but notice the high last July when there were 166 single family homes for sale. About the same ratio holds true for Condo's and Townhomes. Next month should be interesting. Comment to me welcomed.

Palos Verdes Peninsula Inventory is low.

The Palos Verdes Peninsula Active listing Inventory is low. In the last six month the single family home inventory went from 289 active listings last September, all the way down to 130 now. Needless to say we are again seeing some multiple offer situations on the best listings.

A total of 72 homes have sold on the Palos Verdes Peninsula since the first of the year. Average days on the market was 63. Prices ranged from $810,000 (2 br, 2 bath, 1291 sq.ft home built in 1950) to $6.9 million (7 br, 6.5 bath, 10,000 sq ft home built in 2006) , with the average sale price at $1.61 million.