Kaye's Beach Cities Real Estate Info

South Bay-Beach Cities: The Bottom of the Real Estate Market....Are We There Yet?

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Wed, 02 Dec 2009 15:40:30 -0600

Last week those in the know seemed to be saying that the recession was over. The LA Times cheered that Southern California's Vital Signs are Improving and the Southern California housing market was about to hit bottom. But toward the end of the week the news was not quite as good with state unemployment numbers reaching above 12% and a few economists hedging their bets. Irwin Kellner from Money Watch theorizes that maybe it ain't over til it's over and I think I agree with him. Much as I would love to see our Beach Cities real estate market stabilize I'm having a hard time believing that the real estate market in California has reached the bottom with such a high unemployment rate and the state in so much financial turmoil. Employment and financing are going to be major issues that must be resolved before we begin to see a return of a normal market

This real estate market is different then previous markets and consequently may be harder to call. I suspect that we will see the home market bottom by city and sub areas within each city. As an example I think that we may have seen the bottom in February of this year for the lowest priced single family homes in Manhattan Beach ( $750,000 or less), Hermosa Beach ( $700,000 or less) N. Redondo ( $600,000 or less), S. Redondo( $700,000 or less) and El Segundo ( $650,000 or less). We may also be nearing the bottom for entry level townhomes/condos in the Beach Cities. I think we will see properties priced in Manhattan and Hermosa from $800,000-$1M reach their lowest level by the end of the year. The rest of the markets will level at different times over the coming year. I also think that reaching the end of the market will not signal an uptick in prices. Most price points will remain flat with the exception of Strand and walk street properties near the Strand which seem to have a life of their own even in a down market.

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Manhattan Beach-Beach Cities Real Estate: Are we headed to boring?

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Wed, 02 Dec 2009 15:30:41 -0600

Last week Curbed LA pondered that real estate may be on the way to boring. They wondered if our local real estate markets have lost the frenzy we have all come to associate with buying and selling real estate in Southern California.

However if the 24 folks who made offers on 1708 Magnolia in East Manhattan Beach last week are any indication... we have not reached boring. The home was listed for $699,000 and drew big crowds. The accepted offer was about $825,000 for a 3 bedroom+ den, 1 bath home with 1236 sq ft home on a 4870 sq ft lot that needed upgrading. A few days later 1509 Manzanita a 3 bedroom 1 bath 1098 sq ft home also needing updates on a 5247 sq ft lot in Liberty Village saw a quick sale. Originally listed for $749,000 this one appears to have accepted an offer at $799,000.

Of course the real excitement will occur when these homes are appraised. That is the cliff hanger as the loans on both these homes fall under conventional guidelines and therefore will be subject to the appraisal rules under Fannie Mae and Freddie Mac guidelines.

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South Bay-Beach Cities: Fun Holiday and Christmas events and things to do....

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Wed, 02 Dec 2009 13:32:37 -0600

Fun Christmas and Holiday things to do in the South Bay Beach Cities

It's that special time of year..... we put lights on houses .... ornaments on trees..... and little kids know that magic is real. I love the Holiday Season..... Many homeowners in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo do some fabulous light displays and Christmas/Holiday decorations. El Segundo has a whole neighborhood of homes that bring visitors from near and far to see the wonderful winter wonderland displays... even in 75° weather.

Santa seems to find a way to visit every home... on every street... in every neighborhood in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo right up to Christmas Eve. We have Tree lighting and Pier lighting in our communities. Don't miss the El Segundo Holiday Parade... it's just so much fun.

Our little Beach towns have retained their unique Holiday traditions. If you want to know what's happening in the Beach Cities during the Holidays... just scroll down and you will find the major activities for Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo. It's a wonderful time of year... Oh and be sure to stop by the Gift Wrap in the Manhattan Mall... I'll be there .. so stop and say Hello..

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South Bay-Beach Cities: Who really pays when homeowners walk away.....

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Tue, 01 Dec 2009 01:33:02 -0600

Yesterday there was a rather interesting article in the LA Times written by Brent T Wright, a law school professor at the University of Arizona.   Professor Wright is advocating that homeowners should just walk away from their homes if they owe more then the current value of the home. He is not talking about people who have lost their jobs or had major financial problems. He is suggesting that consumers defaulting on a loan they can pay is not wrong but simply acting in your own self interest. Phooey!

Not only is the professor advocating that folks walk away, he also thinks they should buy big ticket items like a new car or even another home prior to defaulting. He finds this to be prudent money management. I think he is just one more jerk who thinks it's OK to stick it to the taxpayer. That's right folks it isn't the banks who pay the price when this happens... it is you and me... the taxpayer  who ultimately takes the hit.

I'm guessing it has escaped the good professor's attention that banks rarely pay for their mistakes. Rather it is the consumer who gets hit every time someone defaults on loan. We are the ones ultimately paying the costs for TARP and to keep Fannie and Freddie solvent.   It is the consumer who pays the price when banks lose money.

I know of a couple of homes in the Beach Cities where the former owners did as the professor has suggested. They borrowed as much as they could, bought new toys and new homes out of the area and then stopped making payments to the bank.   The lenders " lost" hundred of thousands of dollars on these properties but most of the loss will be made up by the bank charging higher fees on everything from accessing an ATM machine to rates for new loans .. oh and paying very low interest rates for folks who are trying to put a little aside for a rainy day.

There are banks that go under, but they usually get picked up at bargain price by a new company and are often financed by the Federal government... otherwise known as you and me.   So while I don't begrudge Professor Wright his opinion.... I would feel far more comfortable if he was picking up the tab with his own money rather then mine when he tells folks it is OK skip out on their obligations.

Manhattan Beach- South Bay Beach Cities Real Estate.... where are prices headed

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Sat, 15 Aug 2009 00:05:35 -0500

South Bay-Beach Cities.. some thoughts on where real estate prices headed for the second half of 2009....

Sometimes when I get caught up in my geeky statistical mode I'm not quite sure where the numbers will take me. Over the last week or so I've been posting information on home sales in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo for the period January-June 2000-2009. My original intent was to stick with the year over year figures for January-June 2007-2009. I soon realized that I needed to go back further to get a better picture of market trends.

While those numbers were interesting and showed definite changes in the market, there was still something nagging me about the market. My focus became a bit clearer after I posted the stats for July 2009 in the Beach Cities. The overall trend was very clear... inventory is down, sale volume is up a bit and prices are significantly lower in all the Beach Cities. But there is more then that happening in our local market.

Reviewing the numbers it is easy to see that sales volume peaked for homes sold in Manhattan, Hermosa and North Redondo in 2002. However in El Segundo it peaked in 2001 and in South Redondo it was 2000. Using median sale prices it looks as if home prices peaked in El Segundo, and North and South Redondo in 2006. In Manhattan Beach it seems to have been 2008 and in Hermosa it appears that prices are still rising into 2009. ( The numbers for Hermosa are somewhat misleading as the volume of sales was very low with some high ticket sales in the Sand and Valley sections... the July 2009 numbers seem more in line with the peak around 2006).

Currently it appears as if home prices in 2009 are hovering between 2004 and 2003 in North and South Redondo and El Segundo. In Manhattan Beach , home prices are between 2005 and 2004 levels. When you kick in July numbers Hermosa real estate prices are also around 2005 to 2004 levels. Overall median price declines for all the Beach Cities seem to be averaging somewhere between 21%-25% from their respective peaks.

So what does the future look like for home prices in the South Bay-Beach Cities? Truthfully, my crystal ball started acting funny around 2006 and has never been the same since... but my guess is that we will see prices continue to slide over the next 6-9 months. Whether the slide is large or on the small side will depend on what happens in the economy. If the economy is truly seeing a bit of light at the end of the tunnel, with the prospect of the recession winding down before the end of the year, then prices will probably not fall much more then 7%-10%. But if the recession hangs on and moves into fields occupied by upper income folks then you can expect to see home prices falling at least 10% and perhaps as much as 20%. However I don't think you are going to see the low entry level prices drop much more. I believe that end of the market in all the Beach Cities will be relatively flat with the possible exception of older North Redondo townhomes that were built in the late '70's and early '80's.

Here's what I'm seeing... Banks are getting very tough not only on standards for a borrower but also on the appraised value assigned to the property purchase. Fewer comps in the higher end of the market means lower appraised values, which translates to unhappy buyers and sellers and deals that fall apart. It also translates to overall lower comparable sales or sliding prices. Sellers can't throw out a number they "want" or "need" and expect buyers or appraisers to go along without supporting data.

Buyers are not only being very choosy about condition and location but they are sticking to their guns about price. They have the luxury of time on their side and will walk from a property they feel is overpriced if the seller refuses to negotiate. On the other hand they will often bid higher on one they deem to be undervalued if there is a multiple offer situation. However they won't be stampeded into a purchase if they suspect they are being manipulated by a seller. All of these conditions happening together are part of the forces that are pushing prices lower.

I believe home prices over the $2M in the Beach Cities are going to start moving downward. Historically this area of the market has been very sticky as sellers don't necessarily "have" to sell. They can hold out for a higher price even though other sectors of the market are moving lower. We have a low rate of unemployment in the Beach Cities compared to other parts of the state. However in the last few months I'm seeing a number of buyers leaving the market because they have either lost their jobs or are concerned that they might. Many who own their own businesses are paring down as their companies struggle in the current economic malaise. Real Estate is not a oneway street and if buyers are having these issues, you can bet there are a number of homeowners who are also facing uncertain economic times. If we begin to see more upper income folks in trouble then we can expect to see prices drop as many scramble to get out from under and maybe take a little cash with them. Lack of security is a great motivator even for the upper income set.

Foreclosures have not been a significant part of our market but you may see that change. Most of the homeowners in the South Bay-Beach Cities have managed to weather the current financial storm. However if the recession starts to affect the middle-upper income segment of the market then you can expect to see more foreclosures and short sales in the Beach Cities. These lower priced sales in turn lower overall prices for those who may not be in financial trouble. If we suddenly see a spate of foreclosures and/or a dramatic increase in short sales you will see a corresponding drop in prices. The Beach Cities are considered to be a declining market and appraisers don't care if the sale is a short sale, a foreclosure or regular sale when looking at sold comps... a sale is a sale.

On the bright side rates will probably continue to be low through the Spring. If prices continue to slide into the fall and winter, buyers just might get some pretty good deals before the end of the year. As a number of buyers found out this Spring that some of the best deals happened in the 4th quarter of last year and January and February of this year.

If you own your home and need to refinance I know BofA and very likely other lenders will have some new programs that might finally help folks who need to refinance. If you need to refinance call a reputable lender now. The FEDS have a number of programs that might actually be of help.

The Best Real Estate Blogs in Los Angeles

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Fri, 08 May 2009 13:08:54 -0500

Relocation.com is a company about ...well ...relocation. They are a terrific resource for those planning a a move to a new area. Recently they have begun a series of posts on their relocation blog naming the best real estate blogs written by real estate agents around the country. This week their focus was on Los Angeles. I am very pleased that this blog was named as one of the Best Blogs in Los Angeles.

It should not surprise those of us in the South Bay that three South Bay blogs were chosen... after all we know the South Bay is a great place to live.

South Bay Real Estate Blogs:

Beach City Real Estate Info.... Kaye Thomas

Red Square Homes Blog... Blake and Diana Roberts

Palos Verdes Lifestyle... Norma Toering

Best Los Angeles blogs not in the South Bay:

Long Beach Real Estate... Laurie Manny

Pasadena Views... Irina Netchaev

San Fernando Valley Real Estate Blog... Judy Graff

Malibu Real Estate Blog ... Michael Gardner

Phyllis'LA Real Estate Blog ... Phyllis Harb

Up2Date Real Estate ... Doug Willis

Terra Firma ... Christopher Hain

Other Cities:

Best Real Estate Blogs in Minneapolis/St. Paul

Best Real Estate Blogs in Chicago

Keep an eye out for new cities to be added ....

For all of you who are new to blogging or new to Active Rain... Many of those mentioned by Relocation.com in LA, Minneapolis/St. Paul and Chicago are Active Rain members. Many of us came to AR in the early days and were totally green about blogging. I can truthfully say that I learned how to write an effective blog because of all the information and the terrific people that make up the AR Community.

It's a Buyer's Market...So Why Are Prices Still So High

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Wed, 06 May 2009 04:12:44 -0500

Manhattan Confidential, our local consumer blog, posted an article today about the decline in sales in Manhattan Beach and the Beach Cities. The post points out two things... the number of sales began to decline in 2002- 2003 ( higher prices mean fewer sales) and 2006 was when buyers started saying no and the market started cooling. Fast forward to 2009 and we have a real estate market that is trying to recover from a lousy economy and a tough lending market. Yet with all the chaos of the last few years prices, with a few exceptions, are still on the high side.

The issue for many Beach Cities' buyers is that while prices have fallen a lot in Manhattan, Hermosa and Redondo; they don't seem to be down as much as many believe they should be. Every news source is telling potential buyers that California has the largest number of foreclosures in the nation and prices are dropping like crazy. The media posts a new statistic every day on how much real estate prices have dropped in California. There are a glut of articles about buying foreclosures and short sales. So why are prices still so high in the Beach Cities?

Last Sunday the LA Times had a terrific front page article that addressed the issue... why some markets are not acting in the way buyers expect. The main thrust of the article is that while prices are down overall, they may not be down as much in the more desirable areas.... i.e. The Beach Cities as say in Riverside. This scenario is very frustrating for buyers and for sellers. Buyers believe that sellers should accept lower prices for homes that have been on the market for long periods of time. Sellers/Banks, on the other hand, want to sell for as much as they can, especially when facing a loss.

While not everyone thinks this is the time to buy... there are a lot of folks who are willing to take a chance and buy now. Most of these buyers don't think we have reached bottom but believe lower prices along with some very good long term interest rates mean it might make sense to buy. The problem is that there is still a big disconnect between where buyers believe prices should be and the prices that many home owners or in some cases banks are willing to accept. Many of my clients are especially frustrated with the prices that banks are setting for short sales.

While we don't have a huge inventory of REO's... there are a number of short sales in all the Beach Cities. Many of these are new construction that didn't find buyers. A number of builders have received NOD's. Logic would seem to say that as these homes have been on the market for a year or more that Banks would be wise to be fairly aggressive about accepting offers from well qualified buyers...but that isn't what seems to be happening.

We have seen an uptick in sales in the last month. This may be a seasonal reaction... spring is historically our buying season. It could be low interest rates. It could be that buyers are seeing a little light at the end of the tunnel in the economy and the housing market. Personally, I think prices still have a way to go before we see the bottom... but the bottom might not be as low as was predicted a few months ago. The kicker for our market will be foreclosures. If we see a spike in the number of foreclosures over the next 6 months then you can expect to see prices drop quite a bit. If we continue to have relatively few foreclosures prices will continue to be soft but will more likely be flat.

South Bay-Beach Cities: Loan Changes for townhome/condo buyers

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Mon, 20 Apr 2009 16:42:36 -0500

Wouldn't you know it.. just as the California real estate market starts to show a few signs of stabilizing... the Feds throw a wrench in the works. Fannie and Freddie, in their infinite wisdom, have made some major Mortgage loan changes for townhome/condominium buyers who are looking at properties with loans under $729,750.

In the South Bay- Beach Cities that means entry level properties in Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo. It will hit buyers of 55+ units in Redondo, Torrance and Palos Verdes who are looking for a loan. It will affect people buying entry level ( $725,750 or less) townhomes/condominiums in all the South Bay. Want to buy a small unit as a vacation property along the Esplanade... it will cost you more. How much more depends on a number of factors.

So just what have the powers that be been doing.... The basics are that you will need higher FICO scores, you will probably need a larger down payment then you did last month unless you are looking at FHA financing. Your appraisal fee will be higher and must be paid upfront and you will be paying higher upfront fees from .75% to as much as 3% to get that government backed loan. However if you are looking for a jumbo loan on a higher priced property... say one of those spiffy townhomes with great views in Manhattan or Hermosa... then it's business as usual.

I understand the idea behind these changes is because of the numerous problems with large condo projects in other states that went down the drain. However in most of California, townhomes/condominiums are our form of affordable housing. I'm not sure how these changes will affect buyers in the South Bay as we don't have a lot of large developments.... but I expect we will soon find out. It wouldn't surprise me to see an easing of some of the new rules once the administration realizes that this may not be the best move in a housing crisis.

South Bay- Beach Cities: Buying in a Buyer's Market

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Sat, 18 Apr 2009 22:14:54 -0500

While the media argues about where the California real estate market is headed and rumors of massive foreclosures are whispered about on blogs; there are actually a few folks who are buying homes. Over the last few weeks in all the South Bay-Beach Cities escrows have been opened and sales have closed.

Two factors are fueling the slight rise in sales... price and interest rates. In 2006 a lot of folks dropped out of the Beach Cities housing market and have been quietly sitting on the sidelines waiting for the market to turn. Others sold homes a year or two years ago and have been renting. Some are tired of renting and want a home of their own. Others got married, divorced or had a new addition to the family. Contrary to popular opinion they have excellent credit and they didn't lose a lot of money in the stock market crash.

So just who are these intrepid souls who are venturing forth in Manhattan, Hermosa, Redondo and El Segundo? They are not flashy speculators or risky flippers. They are conservative buyers. They are looking in all price ranges. They have cash for a large down payment. They are looking for a home not a retirement account. They are planning to live in the home for at least 10 years or more. They are buying below what they can afford. A few are willing to buy cosmetic fixers at the right price. They understand that the market values may decline more but believe the safety of a long term fixed rate loan will work in their favor.

They are careful and patient. They will wait for the right house. They have determined upfront how much they will pay for a property. They will pay more for a home that meets their exact needs... but they won't overpay. They will bargain and are not afraid to negotiate. They will walk away and find another house if the price isn't right. They aren't interested in "old inventory" at "old prices". They don't necessarily believe that an REO or short sale is a bargain... unless it is. They are pre-approved and have shopped lenders for the best rate and terms.

Since April 1, 2009 they have opened escrow on 9 homes and townhomes in El Segundo, 30 in Manhattan Beach, 15 in Hermosa, 26 in North Redondo and 22 in South Redondo. Most of these escrows will close on time.

South Bay-Beach Cities: Refinancing or Loan Modification Help Online

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Thu, 19 Mar 2009 21:26:52 -0500

While the South Bay-Beach Cities have managed to stay above water better then other parts of the state there are a number of homeowners who are finding themselves in trouble and need some help with their home loan. Not all of us paid cash for an ocean view home in Manhattan, Hermosa or South Redondo. Many folks looking at the troubled California housing market feel as if they are jumping from the frying pan into the fire when considering their options. However there may just be a little help from the FEDS.

There are a number of homeowners who bought with 10%-15% down in Redondo, El Segundo, Torrance and other South Bay communities who now find themselves owing more then the value of the property as prices have declined over the last 3 years. Job losses along with the normal problems folks face from time to time...death, illness, and divorce... have caused some real issues for many residents.

If you have a conforming loan ( $729,750 or less) and need to either refinance or modify the loan then you may find some help from the government. Today the Federal Government finally got its helpline on line at MakingHomeAffordable.gov. The phone number is (888) 995-4673.

The truth is that not many homeowners in the South Bay will not qualify for help as your loan amount can't be more then 105% of the market value. Also the loan must be a conforming loan... that is when it was originated it was a loan guaranteed by Fannie Mae or Freddie Mac. You don't have to be behind in your payments to receive help. If you aren't sure about whether your loan qualifies, click this link to see if it is owned by Fannie or Freddie.

If you haven't contacted your lender you should do so immediately. If they are not helpful then use the links to the above sites. These are legitimate sites that will offer help. Be wary of anyone sending you an e-mail, regular mail or calling your home with offers of help and wanting money upfront. There are some good sites that can offer you help but most are scams and will just take your money and leave you in deeper trouble.

About 3%-5% of people in trouble with their mortgages have equity(the difference between what you owe and the value of the property) in their homes. These people often give up and wind up losing their homes to foreclosure because they are not sure what to do. If you have equity in your home you need to talk with someone who can help. Don't be embarrassed.. call your attorney or someone you trust. Even in today's declining market you may be able to refinance or if necessary sell and come out with cash.

Manhattan Beach-Beach Cities: 6 things to know abour loans if you are buying or refinancing...

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Thu, 26 Feb 2009 07:47:04 -0600

If you are thinking of buying a property or refinancing your South Bay-Beach Cities home there are 6 things you should know about the current financial market.

While almost everyone knows that lenders have tightened their rules about making loans; most people really don't quite understand what that means when they are shopping a loan for a purchase or a refinance. If the only real estate loans you have obtained have been within the last 7 years... you may be in for a shock.

The rules have changed drastically from a few years ago. The Beach Cities have seen conforming loan limits raised to $729,750 but these loans, known as conforming Jumbo loans, have a higher rate then loans under $417,000. If you want a jumbo loan (over $729,750) you will need a big down payment along with excellent FICO scores. You will also need to be patient as a number of lenders are not offering jumbo loans because they have to keep them as part of their in-house portfolio rather then sell them to Fannie and Freddie.

6 things you need to know if you want to refinance your current loan or would like to buy a property....

1. I have great credit.... maybe... maybe not... a lot has changed in the last year. So what is a good credit score today? Two years ago a good FICO was 700 or better. In today's world a 700 FICO will cost you money. I stole the chart below from Dan Green at The Mortgage Reports. If you check out the chart (Fannie & Freddie rate fees) you can see that a credit score under 740 is going to cost you upfront fees in addition to the points the lender wants. These fees are for conforming loans. If you are looking for a non-conforming loan (jumbo) the best rates are for those with FICOs of 780 or higher.

2. I have 20% down so no problem... on a conforming loan ( $729,750-) 20%-25% down and good credit (720 FICO+)will work ...usually. If you want to utilize an FHA loan then you can have as little as 3% down and a slightly lower FICO score but you will get a higher rate and pay some upfront fees. If you are looking for a loan over $729,750 then 20% and good credit isn't enough. You may find lenders wanting 30%-40% down with great credit (750+ FICO)and a good chunk of cash in reserve. The guys who 2 years ago would have tripped over themselves to throw money at you will now barely acknowledge you exist.

3. My income is 1099 based not W2 but I make lots of money... There has been a lot of talk about stated income loans... those loans were made for people who were not traditional W-2 employees. Today many lenders turn a blind eye and a deaf ear to 1099 employees. There are a few lenders making stated income loans with a large down, verification of assets and 2 years in the business. For the most part 1099 employees are out of the loop unless they have very large bank accounts.

4. But Interest rates have dropped... Rates have indeed dropped but the "great rates" are only for those with high FICO scores and large down payments. Conforming loans with 10% down or FHA's are not to be found for 5%. The big boys with large accounts can find some sweet deals on jumbo loans but most borrowers are going to need high FICO's and pay points to see those lower rates.

5. I can always get an adjustable...buyers got used to having a number of choices in the types/terms of adjustable loans. There are more choices for conforming loans but if you are seeking a jumbo loan you may find your choices limited to a 1/1 or a 5/1 term . A number of lenders are not making 7/1 or 10/1 loans as they are not sure where rates will go in the future. If you are thinking of interest only add at least another .25% or more to the rate.

6. I have 20% equity, so a refi should be a snap... Don't count on it. There are not many lenders who will even consider a loan-to-value even if you use the same lender . Some lenders are looking for 30%-40% equity on a refinance in markets they feel are trending downward. On a similar note lenders are not real crazy about cash out refinancing. There are some who have those programs but they are likely to cost more money.

In today's market the best way to ensure you get a loan is to do your homework. Don't assume that because you got a loan a few years ago without any issues that you can do the same today. If you are buying a home you need to be fully approved before making an offer and be ready to throw in additional cash if necessary. If you are refinancing, don't expect the process to be easy. Remember, banks are more apt to give loans to people with substantial resources... and cash in the bank can buy a lot of goodwill.

Manhattan Beach- Beach Cities: Loan Limits Raised

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Mon, 16 Feb 2009 14:11:06 -0600

Amid all the hoopla about the $7500..nope $15,00... make that an $8,000 tax credit... there was almost no mention about reinstating the hybrid conforming loan limits back to $729,750 from $625,000. This is good news for South Bay-Beach home buyers and owners who want to refinance existing loans.

The final tax credit will have a limited impact on our market because of limits on income and local home prices. Increasing the conforming loan limits however will have an impact on our Beach Cities real estate markets. Last year in the short time frame these loans existed(July-Nov.), a number of buyers took advantage of them. While the rates on these loans are slightly higher then rates on loans under $417,000 they are usually considerably lower then those on Jumbo loans... and much easier to obtain.

Anyone who has been loan shopping lately knows that jumbo loans are still expensive and not easy to obtain. Most lenders have a loan max of $1,000,000, with LTV around 50%-70% depending on the loan amount. There are not a lot of choices as to the term... either a 5/1 or a 30 year fixed. FICO scores to get a rate around 6.65% must be over 750+. The bank may also want you to set up an account with them to provide for direct deposit of the monthly payments. If you want a rate around 6% you will need a FICO of at least 780+. If you want to buy a $2M home you will need 50% cash down.

While banks will make loans over the $1M mark these only go to members of the bank's High Roller Club..( those having accounts at the private banking window) which usually means that you are willing to keep a minimum of $100,000 or more in accounts at the bank. The more money you stash in the bank the higher the loan amount, the longer the term and the lower the rate. Historically this was how banks conducted business back in the good old days.

A number of lenders are getting rid of their wholesale operations and only making loans directly to consumers via in house staff. This means that most Mortgage Brokers will not be able to place loans with BofA, Chase, Wells Fargo or many of the Big Banks. The banks often have better rates but usually offer fewer choices to consumers as they may only offer one or two loan options. Traditionally Mortgage Brokers were able to offer consumers an array of products. This means fewer options for buyers or for owners looking to refinance.

Will $15K make a difference in upscale communities?

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Fri, 06 Feb 2009 10:19:24 -0600

Will $15K make a difference to home sales in the South Bay-Beach Cities of Los Angeles County?

The U.S. Senate in an effort to customize their version of the Bailout Bill and add a few more perks the House missed, voted to give home buyers a credit of 10% of the sale price or a maximum of $15,000 on a home purchase. Of course the bill is not actually a done deal... It has to go back to The House and then be signed by The President before it takes effect. Right now I'm guessing the bill will be changed along the way and won't be ready for consumers anytime soon... if ever.

Unlike the previous version of a $7500 tax credit that must be paid back..the new bill will not require buyers to reimburse the government...ie taxpayers... for the money. I understand the idea behind the bill but once again I think the folks in DC are off the mark.

Would a $15,000 credit stimulate sales in the South Bay-Beach Cities...yes and no. Certainly getting an extra $15K credit looks like a good deal for anyone buying but the problem is that while the credit is nice, it's pretty useless if banks are not making loans. And therein lies one of the major problems with many of the ideas about real estate and the housing market floating around Washington.

You can pass stimulus packages 'til the cows come home..but they are pretty useless if consumers can't use them. If the boys in DC are really serious about doing something about the housing crisis then I would suggest that the first step is putting a few conditions on the money they are passing around to lending instutions... namely if you want money from the government you have to make loans on homes.

Manhattan Beach, CA.... Million Dollar homes and Foreclosures

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Thu, 05 Feb 2009 11:22:44 -0600

If you caught the LA Times article about Million Dollar home sales in CA you know that in 2008 Manhattan Beach had more home sales over one million then any other community in the state. There were 296 sales in Manhattan Beach of homes above $1M in 2008 . While that probably makes most Manhattan Beach homeowners happy as an indication that values didn't take a complete nosedive... the information also points out that 2008 numbers were down considerably from the 403 homes that sold in 2007. So far this year that trend seems to be continuing with closed sales in January 2009 of 7 homes and 2 townhomes...ouch!

None of this information is surprising if you are buying or selling a home in Manhattan Beach or any of the Beach Cities. Sellers are trying to figure out the magic number that will make a buyer decide to make an offer, while Buyers are waiting for prices to drop more and loans to get easier to obtain.

There is a lot of information in the article that didn't make the headline. If you read the chart one of the things that pops out is that price-wise Manhattan Beach is in the middle of the pack. While prices are still on the high side they are below the prices of Laguna Beach, Newport Beach and even some areas of Palos Verdes.

However you have to read most of the article before you find what is perhaps the most significant piece of information...namely that of the 236,000 homes that went into foreclosure last year...only 1,612 were homes that sold over the $1M mark. I believe we will see more million dollar plus home in trouble this year as the economy worsens, but as a percentage that number will continue to be small relative to the total number of REO homes in CA.

Over the last few years there has been this assumption that anyone who bought an expensive home really couldn't afford the home. While I have no doubt there are a number of buyers who did get in over their heads... the low numbers above seem to indicate that perhaps most folks who bought in the more expensive communities were not as financially imprudent as many thought.

Manhattan Beach- Beach Cities Real Estate.... Hello 2009

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Wed, 31 Dec 2008 23:21:04 -0600

In just a few hours 2008 will be gone. I don't think many will be sad to see it go. No one has escaped unscathed from the financial and economic turmoil of 2008. Our local Manhattan Beach-Beach Cities real estate market has certainly been adversely affected by the disruption to the economy. While we have fared better then other communities in Southern California we have not escaped the problems that affect California real estate. In our little slice of Paradise prices are down in all the Beach Cities and sales volume is lower then last year at this time. Interest rates have dropped, but jumbo loans( $625,000+), with few exceptions, are still at high interest rates when compared to overall rates. This is a real problem in our Manhattan Beach-Beach Cities real estate market with median prices in most of the Beach Cities over the $625,000 hybrid conforming level. While conforming rates are lower then at any time since 1971, the requirements to obtain a mortgage are probably stricter then they have been in the last 25 years. It is a bit ironic that lenders who gave loans to anyone who could fog a mirror are currently refusing loans to people who are are well qualified for sometimes inane reasons. As with all things in the financial community... this too will change.

There is a lot of speculation about what will happen in the Manhattan Beach-Beach Cities real estate markets in 2009. While there are those who are predicting a complete collapse in housing with markets returning to 1990 levels, most of us who have lived here for a long time are not quite so pessimistic. We have seen these market dives before and will no doubt see more in the future. If the recession gets worse then we could see more problems but so far we seem to be holding up fairly well. Could that change... of course it could. The market may be slow but it hasn't died.

Thoughts on the housing market of 2009 in the South Bay- Beach Cities.....

Consumers will exercise more discretion in spending. Buying a home will once again be about shelter rather then a short term investment where you expect the value of your home to double in 2 years. 25 years ago an entry level home was not a new 4000 sq ft home in the tree section of Manhattan Beach. People bought small older homes and worked their way up to big new homes over years. I think we will see a return to consumers buying below their means rather then above.

Foreclosures continue to be on the low side in the Beach Cities. Interest rates are at their lowest level since 1971 which means that many of the loans that will be resetting may do so at rates that will not be a problem for owners. Inventory continues to be much less then many had anticipated. As of today there are 507(total) homes and townhomes for sale on the MLS in the Beach Cities.... Manhattan Beach((178), Hermosa(78), N. Redondo (85), S. Redondo (124)and El Segundo(42). While you can expect the number of homes on the market to increase in the spring, we would need to see the economic crisis worsen considerably in the South Bay to create a scenario that dumped vast numbers of homes on the market. This doesn't mean we won't continue to see prices moving downward... we will. It just means we probably won't see massive numbers of foreclosures and the devastating loss in value that happened in the '90's as long as the employment situation in the South Bay remains fairly stable. The new Administration seems committed to stabilizing the housing market. The question is whether or not they will be able to do what the old one couldn't... namely bring stability back to the financial sector by buying up toxic assets and creating jobs with programs like the old WPA? If they can accomplish these goals without inflation rearing it's ugly head then the South Bay-Beach Cities real estate market may just squeek by with a minimal amount of problems. Once again only time will tell what awaits us in the future...

HAPPY NEW YEAR ......

Kaye

Manhattan Beach- Beach Cities: FED Bailout... the good...the bad... and the ugly

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Mon, 22 Sep 2008 17:34:31 -0500

Real estate values in Manhattan Beach and the Beach Cities have held up fairly well compared to other parts of the nation and the state over the last few years. However, make no mistake, we are headed for some rocky times if the FED can't figure out the right way to solve the current financial crisis. No question Treasury Secretary Hank Paulson along with FED Chairman Ben Bernanke and New York FED President Tim Geithner did their best to find a reasonable solution to a major disaster... the question is whether or not the solution is going to work.

A lot has happened in the last week as credit markets scramble to deal with some massive changes... Fannie and Freddie got a lifeline, Lehman is toast, AIG is saved, BofA got a whole lot bigger, while Goldman Sachs and Morgan Stanley are no longer investment banks and instead have opted for the relative safety of becoming commercial banks. The government is trying to set in motion a new entity to buy up the bad debt that is sucking the life out of our credit markets. The thought went that the bailout would solve everything and settle the economy... however today's stock market doesn't seem to agree.

Contrary to the hopes of boys in D.C. the stock market didn't see the bailout in the same rosy terms as the administration... the dollar fell, oil shot up to over $120 a barrel, gold is over $900, financial stocks are down and the market lost all the gains from Friday... it was a pretty crummy day for all.

As with all things when dealing with the FEDS the devil is in the details. The government is conveniently forgetting that it played a major role in this little debacle. First by pushing the concept of home ownership at any cost to individuals who should never have bought homes and then by allowing Wall Street to create nebulous products to fund a precarious social experiment. Now the boys in D.C. are scrambling to try and fix what they broke.

Part of the reason the market is bouncing around today is because we still don't really know the extent of the problem. There are big questions about how the actual program is going to work... and if it even has a chance of working. While there may be a need for some speed in passing the legislation in order to stabilize markets, Congress should be leery about putting all the country's eggs in one basket with little or no oversight. ... Paulson may be the man for the job but he should not have carte blanc without public scrutiny as is proposed by the current administration. That's what got us here in the first place.

On the other hand this is not a time for Congress to try and squeeze in a bunch of political junk. You can't save people who can't be saved. Sounds a bit convoluted but the bottom line is that the subprime fiasco that started this slide was based on loans made to people who didn't qualify for them in an effort by the government to make everyone a homeowner. Guess what... most of these people still don't qualify and throwing money at them will not solve their lack of financial stability... it's like trying to put water in a bucket full of holes.

So grab your hats and hang on to your wallets ... this ride is going to be very bumpy... even in Manhattan Beach

Manhattan Beach, CA Homes: The Tale of a Sale

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Mon, 23 Jun 2008 16:36:40 -0500

3612 Poinsettia Manhattan Beach

In the last few months I've written posts on Starter Homes in Manhattan Beach , Prices not crashing .... no kidding and buyers and sellers Thinking Outside the Box along with a number of other posts on Manhattan Beach real estate. These posts were about the market in general and often about my listing on 3612 Poinsettia in particular. Many who commented on these posts blasted me on everything from home prices in Manhattan Beach to my general lack of knowledge about the declining real estate market. The bottom was going to fall out of the local housing market and Poinsettia was wildly overpriced at $849,000.

But a funny thing happened a month ago. Suddenly 3612 Poinsettia was not the wallflower at the prom. Poinsettia was on the short list for Prom Queen. The property was being shown many times every day. Not only did we wind up with multiple offers but it went within a matter of days and I had to turn away of number of people who wanted to make offers. I won't release the sales price until the house closes escrow in July but I will share a bit about the sale. <<< CONTINUE >>>

South Bay-Beach Cities Real Estate: Short Sales Suck

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Sun, 06 Apr 2008 13:34:12 -0500

I had dinner with two very savvy real estate agents last night. These agents have been in the business for a long time and know their way around a short sale. They have listed and sold short sale properties. Neither of them will deal with short sales again.

I sympathize with them. I don't want to deal with short sales either. Banks have no idea how to process these types of sales. Nor do they have the staff to deal with them even if they knew what they were doing. It's a joke. I did a number of short sales in the 90's so this is familiar territory. Last month I closed a short sale after an arduous escrow that saw my buyers ready to bail. The lender would only communicate via fax and refused to take calls even from escrow.

Lenders are just plain stupid at this point. They will not talk to a listing agent who might be able to expedite the situation. They don't use e-mail. Many will only communicate by fax. They change personnel and phone numbers and don't give out new information. They will approve a sale and then change their mind two weeks later. They will try to stiff an agent on commission after they have approved the fee. I know of agents who wound up receiving no money after working for 2-6 months on one of these sales. They believe we should work for free because they made poor choices. Then they wonder why good agents will not work these types of sales. They have no clue about local real estate markets. Yesterday one of the agents had a bank suddenly decide to go to sale rather then approve the short sale because they "knew someone would buy the property at auction for more then the short sale".... talk about out of touch. <<CONTINUE>>

Closing Escrows.. Making Active Rain Work for You

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Thu, 20 Mar 2008 18:14:37 -0500

There are a number of reasons to like Active Rain. One of the perks of membership for me has been the relationships I've formed with other AR bloggers. A few weeks ago I finally closed an escrow on townhome in Redondo Beach, CA. I worked with the buyers for 9 months by the time the escrow closed. The buyers had found me through my blog. We had e-mailed a few times and I answered their questions about the South Bay real estate market. We started looking at property in May 2007. We looked at every property in their price range over the next 6 months to the point that even they began to question whether or not they were being too picky. The answer of course was Yes... but they had just gotten married and were still learning the art of marital compromise. During the 6 months of our property search I sent them the names of a number of lenders I was comfortable working with in my area. One of those names was Brian Brady... America's#1 Mortgage Broker.

The clients were very nice people but boy were they tough. They typified the "new" generation of buyer. Internet savvy and computer literate. They wanted information and answers immediately. There were no givens on this deal. They had both owned property in other parts of the country and the hardest thing for them was finding that real estate is local. It didn't matter how deals were done in other places.. what mattered was how they were done in CA. This is a very difficult concept for a lot of buyers who have purchased in other states. They were experienced homeowners... just not in California.

They found searching for a lender was as difficult as searching for a home. They had financed their other homes through their credit unions and didn't understand that using a credit union from another state was probably not a wise choice let alone a very practical one. They tried Internet brokers and traditional bank sites. Ultimately they kept coming back to Brian Brady's blog as the best source for the information they were seeking. About three weeks before they found the right property I managed to convince them they needed to be totally pre-approved to make an offer. They finally chose Brian as their lender.

In November of 2007 they found a great property in South Redondo about 3 blocks to the water. The property was a short sale that appeared to be a slam dunk until we got into the transaction. The seller was a former lender who thought he had the deal wired.. he didn't. There were a number of hurdles we had to cross to get this one closed.

Fortunately Brian was on top of things. We were able to submit the offer to the lender with full approval for the buyers subject to the appraisal and lender acceptance of the short sale. We waited and heard nothing for about three weeks when the lender suddenly demanded an appraisal within a few days. Brian decided to call on Mike Tarabotto of California Appraisal Solutions Corp as Mike was an AR guy and close to Redondo Beach. Mike scheduled an appraisal immediately. I can truthfully say that Mike submitted one of the best appraisals I have seen in many years. In fact the appraisal was so well done it included the name of the HOA president. I'm guessing that Mike's appraiser gave her my name and phone number at some point which proved to be of major importance later in the transaction.

After being in escrow for over 2 months with almost no communication from the lender and a seller who really didn't know what he was doing it was time for our side to get tough. After threatening to walk from the transaction after a seller bluff I managed to get the number for the person who was in charge of the file. I passed the information along to Brian who began calling them every few hours. I won't be able to "prove" Brian's calls were the catalyst to get this sale moving but about three days after he started calling we suddenly received a demand from the lender and could proceed.

I was incredibly impressed with Brian throughout the entire transaction.. he is a pro. However my approval became complete adoration when Brian drove from San Diego to Redondo Beach to sign the loan docs with the Buyers. WOW.... I haven't had a lender do that in 20 years. As it turned out there was a glitch in the paperwork and we would have been in real trouble if Brian had not been at the signing. As Brian and I were talking with the Buyers while waiting for paperwork... they told us that the reason they picked both of us was our blogs. They were very impressed with the information we offered and how quickly we responded to their questions.

Brian's latest blog on AR is about Justifying Your Fees . I can guarantee that after you work with Brian Brady he doesn't have to "justify" anything.. he earns every cent of his fee. Thanks Brian... I couldn't have done it without you!

100 years later ..J.P Morgan Saves the Day... Again

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Tue, 18 Mar 2008 02:49:41 -0500

Yesterday JP Morgan Chase literally pulled the rabbit out of the hat and picked up Bear Stearns for $2 a share and a little help from the FED. While it may be too soon to tell.. the hope is that keeping Bear Stearns out of bankruptcy may also keep the financial markets from collapsing. However like teenage boys with fast cars.. credit markets and banks just seem to keep making the same mistakes over and over.

This is not the first time J.P. Morgan and friends have bailed out the economy. Around the turn of the 20th Century John Pierpoint Morgan was the man who saved the US economy not once but twice in a manner very similar to yesterday's scenario.

In 1895 during the Panic of 1893 the economy was in big trouble. At the time we were a gold based monetary system and a run on gold certificates led to banks closing their doors when they ran out of gold. The US Treasury was in no better shape as it too was about out of gold. The country was facing bankruptcy. JP Morgan and a few friends stepped in and managed to get loans equalling $65 million in gold to save the country from bankruptcy and economic chaos.

The Panic of 1907 was also known as the Bank Panic as banks were failing on a daily basis after the Stock market tanked almost 50% due to over-expansion and speculation that led to a stock market crash in the spring of 1907. Money was tight with little liquidity in the market as credit markets panicked. Hmmmmm sounds very familiar... In October 1907 the market crashed again. This time the crash was because of the shenanigans of one company, the Knickerbocker Trust. The ripple effect from the crash of the Knickbocker Trust failure spread panic to most of the major banks in New York.

Once again , this time at the behest of the Treasury Secretary, J.P. Morgan stepped up to help resolve the crisis. Morgan organized a team to help redirect money between banks, obtain credit and he even bought stock of corporations he thought were sound to stop the panic. Within a few weeks the panic passed and the country averted another major crisis that may well have destroyed the country.

One of the major outcomes of the steps taken by J.P. Morgan was to establish the Federal Reserve Act of 1913 which created the Federal Reserve system that we know today. While I'm often critical of some of the FED policies I think the move they made yesterday with JPMorgan Chase about Bear Stearns was probably the right one. What I find interesting is how similar the situation was in 1907.. then it was one company, the Knickerbocker Trust, that precipitated a massive panic. Yesterday it could have been Bear Stearns that started a total panic. Maybe we do learn a few things from our past mistakes.

California Foreclosures: Send in the Clowns

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Tue, 26 Feb 2008 18:09:58 -0600

On the front page of the LA Times there is a story by Jonathan Peterson titled Aid on Home Loans Sought...that should scare every potential buyer along with every homeowner. If the Boys in Washington DC have their way they are going to bring the mortgage market to a grinding halt. These clowns want to pass a bill that would allow bankruptcy Judges to not only alter the interest rate and payment on a mortgage but the amount of the loan itself in an effort to "save" homeowners. What a bunch of garbage! While I feel for those who have lost their jobs, had medical problems or faced a death or divorce.. the fact is they are in the minority.

Most of the helpless homeowners the government wants to save never should have been allowed to buy a home in the first place. They had rotten credit and no financial resources. The house payment isn't their only debt problem. Most have huge credit card debt. They can't afford the payment and upkeep on a home with all their other debt. 90% of them will still lose the house no matter what the government does as they have little sense of financial responsibility. The only thing this little bill will do is make most lenders back out of the market. The few who stay will push up rates by 1.5-2% or more to cover future losses.

Think about it... who in their right mind would make a loan to anyone if it could be altered or foregiven by filing bankruptcy. The courts would be clogged by people filing bankruptcy to have their rates lowered and or the amount of the loan discharged. The only thing I have to say about Sen. Richard Durbin ( D-Ill.) and Majority Leader Henry Reid(D-Nev) is what a couple of twits.

The mortgage market isn't in enough of an uproar. Nope.. so these two have come up with a little program to literally destroy the entire industry. Makes you wonder if they ever get outside and see what is really happening in the world. It also makes you wonder just what those guys are smoking in the back room.

I know when Stephen Sondheim wrote A Little Night Music .. he probable didn't have these guys in mind... nevertheless the lyrics sure seem to fit.....Where are the clowns?...Quick, send in the clowns....Don't bother, they're here....

I don't know about you but I'll be firing off a letter to my representatives in both the House and Senate

California South Bay- Beach-Beach Cities: What's Up With Interest Rates

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Sat, 09 Feb 2008 12:04:48 -0600

If you are looking for a new loan to purchase a home in Manhattan Beach or one of the Beach Cities or if you want to refinance your existing loan; you may be wondering where rates are going in the next few weeks. If you have been hoping to get a little insight from the "experts" in the field you may be disappointed.

I just received Dan Green's The Mortgage Reports where he has posted a link to Bank Rate's Trend Report. I love it.. even the "experts" are uncertain about where rates are going...

Bank Rate Panel Views on Where Rates are Headed:
Up:38%

Down:31%

Unchanged:31%

In my Post wondering on is it time to buy I received the following comment from a reader...

Now why would anyone buy in this market that is clearly coming down, just because of interest rates? Interest rates always adjust, cost of houses are fixed.

It's a reasonable question and in a normal market, where nothing except price changes, it makes sense. However I knew from the comment that the person didn't understand my premise. The low rates over the last few years have been because of the FED slashing rates to banks. This is going to change. Inflation, not recession, may soon be the item of concern. Inflation means higher interest rates. The current market is similar to the market of the late 70's and early 80's not that of the 90's... a war that may be winding down, high energy prices, a credit market concerned with liquidity... all of these items shot interest rates up to 17%. Don't think it can't happen again.. it can. <<<CONTINUE>>>

It's Tuesday February 5, 2008...VOTE!

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Tue, 05 Feb 2008 10:22:31 -0600

If you are in one of the Super Tuesday states today is the day you get to exercise your right to vote. There are hundreds of countries all over the world where people are literally dying in order to vote. We are very fortunate to have a process that while driving most of us nuts actually works.

It doesn't matter what your preference for President.. what matters is that you have a choice. Headlines scream everyday about those who have no choice... or are dying because they made a choice.

In CA we have a few propositions that also need to be voted on. How you vote on these will determine some important issues... like term limits, community college fees and extending Indian gambling. In Redondo there is a huge school bond issue. These are all issues that deserve our attention. Your vote does matter.. remember when you lost the class election by one vote?

So just do it.... VOTE!

California South Bay-Beach Cities: Cramer Says It's Time to Buy a House

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Mon, 04 Feb 2008 21:34:23 -0600

Redondo Beach Homes under $800,000

Why are you waiting... Jim Cramer says it's time to buy a house ....so it must be time to buy!

Looks as if the recent FED cuts have really stirred the pot. Jim Cramer, who just a few months ago, was telling anyone within shouting distance that buying a house was a stupid move and everyone who owned one should sell.. fast.. has had a change of heart. Not only does Cramer think it might be a good time for the general public to buy a home but he may even do it himself... WOW!

For a change, Cramer may be on the right track... If you need to buy then now might be a good time. It is definitely the time to refinance if you have a loan that will reset within 2 years. OK..so just take a deep breath and wait a minute before you start to beat up on me... If you need or want to buy a home within the next six months you should really do some homework. There are more properties available in the entry level in the Beach Cities then at any time in the last few years.

Manhattan Beach:
There are 17 properties under $1,000,000... 9 homes and 8 townhomes/condos.

Hermosa Beach:
There are 20 properties under $1,000,000...10 homes and 10 townhomes/condos

Redondo Beach:

North Redondo:
There are 54 properties under $700,000...22 homes and 32 townhomes

South Redondo:
There are 49 properties under $800,000.. 7 homes, 22 townhomes and 20 condos

El Segundo:
There are 27 properties under $800,000... 9 homes and 18 townhomes/condos.

These are much higher numbers for affordable properties then we have seen in a long time. No these are not 3000 sq ft less then 10 years old but they are the types of properties that most buyers used to buy as a first home. They are starter homes.. homes that start you on the way to your dream home. It made a lot of sense then and it still does... buyers need to get away from the idea that their first home should be bigger and better then the one that was the dream home of their parents. This is what got a lot of people into a lot of trouble.

So why does Jim Cramer think this might be a good time to buy then wait for the mythical 50% decline in price.

<<<<CONTINUE>>>>

Manhattan Beach, CA: Price Reduced..3612 Poinsettia Open House Friday 12-2

Manhattan Beach CA/ e-PRO..... Kaye Thomas... (Real Estate West) — Thu, 31 Jan 2008 12:26:05 -0600

Manhattan Beach Trees: Broker and Public Open House 12-2pm Friday

Big Price Reduction......now $849,000

3612 Poinsettia.. Manhattan Beach California

Join me Friday February 1, 2008 at 3612 Poinsettia, Manhattan Beach from 12:00-2:00 pm . This is one of the lowest priced homes in the Tree section of Manhattan Beach. The home has been maintained and is in average plus shape but is original with no major upgrades. It is a sweet little home... 2 bedrooms, 1 bath 865 sqft on a 4640 sqft lot with a tree view. The home is priced at $929,500. 3612 Poinsettia.. Manhattan Beach California

Call me at (310) 721-7438 or e-mail me for more information on this home or others in the neighborhood.