Polliwog Park..We are beginning to see the effects of stricter guidelines on loans coupled with fears about big price declines on Manhattan Beach real estate. September sales are below those in August and pending sales are sparse....as of today only 7 homes went into escrow in September out of 121 active listings. The townhome market however is holding it's own with 9 pending sales and 15 active listings. Manhattan Village saw two sell within days. If rates on Jumbo loans drop below 7% we may see an uptick in home sales. I think 7% is a real barrier for many who remember significantly lower rates and are waiting(praying) for rates to drop. I'm not sure that's going to happen. I suspect we are going to have to get used to higher rates which means higher home costs. A 1% increase in inte... 09/29/2007

Tuesday, September 25, 2007A Banker with a sense of humor......It's been one week since the Fed met and lowered the funds rate and the discount rate... The euphoria that followed the announcement of the action taken by the FED was good news for Wall Street but what about the housing market woes.Are mortgage interest rates lower? For potential buyers and sellers in Manhattan Beach and the Beach Cities..sadly the answer is is not really. The FED action lowered short term rates but long term rates are still on the high side. Bond rates are responding to inflation fears over the long term. Mortgage rates are tied to bond rates not short term rates. Conforming loans saw rates go down but fixed rate Jumbo loans are still hovering around 6.9%-7.25% with no relief in sight. Adjustable rates are... 09/26/2007

Not that long ago, outbidding on properties was common practice with “jumbo” loans—over $417,000. Homes on the market now have became abundant, the sub-prime meltdown has led to tightened lending even for credit-worthy borrowers, including shoppers in their price range who needed so-called jumbo loans.Lenders recently started to shun these larger deals that, according to Andrew LePage, an analyst with DataQuick Information Systems, accounted for almost 40% of purchase loans in Southern California in the first seven months of 2007. Last month, Southland home sales dropped to their lowest level for any August since 1992 as buyers, sellers and lenders held back in the uncertain market and deals slowed or stalledSome lenders are slowly starting to return to business, but the rules have chan... 09/24/2007

Redondo Beach: Golden HillsWhat a difference a few weeks can make. Overall sales have slowed in all the Beach Cities as buyers adjust to new lending rules and sellers grapple with how those changes will affect potential buyers for their homes. Buyers will continue to find qualifying more difficult then in previous months. Sellers will also have to acknowledge the fact that a smaller buyer pool will translate to lower prices... but that doesn't mean the market is going to crash. Ultimately more sensible lending will translate to a far more stable market which is a good thing for all parties.The big news today is the FED cutting both the funds rate and the discount rate. It will be interesting to see how Jumbo mortgage rates fare with the cuts over the next few weeks. If the rate cuts do ... 09/18/2007

Price Ranges Manhattan Beach September 15, 2007 ( click to enlarge) The graph with numbers will be posted after Market SnapshotThe last few weeks have been interesting as predictions of a market crash of 50%-60% in the Beach Cities and especially in Manhattan Beach persist. While expectations remain high by those hoping to buy at a significantly lower price.... reality so far just isn't being very accommodating. Volume has declined but not by drastic numbers compared to sales from last year during the same period. Manhattan Beach homes that are selling seem to either be under $2m or over $3.2m. A number of expensive homes have come on the market and many have sold fairly quickly. Pricey homes that have been on the market for a bit are also seeing sales as buyers seem to be deciding that... 09/16/2007

   The figures in the media on California foreclosures are astonishing. Numerous articles seem to be saying that almost every home in California and Los Angeles County is now or will be in foreclosure. Many feel that the Beach Cities.... Manhattan, Hermosa, Redondo and El Segundo will soon see prices plummet by 40%-50% within the next few months.I'm not saying we won't see our share of troubles if the credit crunch continues but I'm not as sure as others seem to be that we are going to see massive foreclosures and prices dive through the floor in our little slice of paradise.. No question that sales volume is down and sellers are getting realistic about the value of their homes. At this time it appears that homes that were priced way too high are finally being priced at the level they s... 09/09/2007

This report was compiled at 0500 (PDT) on Sept. 5, 2007.  As always, please allow me to be clear, these stats are based on Status dates, not List dates.Averages for August (8/01/07-8/31/07), 2007:Average Price: $1,895,016 with a low of $760,000 and a high of $4,175,000Cost Per Sq Ft: $828.59Days on Market: 62Total closed units (SFR Only) 31By comparison, there were 39 closed sales during the same time frame in 2006.  The averages for August '06 are as follows:Average Price: $1,953,.503 with a low of $869,000 and a high of $4,100,000Cost Per Sq Ft:  $814.51Days on Market: 66In addition to this year's closed sales, there are 111 Active listingsFinally, there are eleven homes in escrow, ranging from $699,000 to $4,699,000, $814.99 CPSF, and 29 DOM.For information regarding condos, townhome... 09/05/2007

 Over at the LA Times Blog by Peter Viles there is a lively discussion going on about home prices and affordability in CA. While most of the comments are from people who are waiting for home prices to crash in California and express their continued outrage about affordability issues.. one person noted that California is the only place where he wants to live. What surprised me was that no one picked up on that statement... and they should have because it's one of the reasons prices are so high in California. A lot of people don't want to live somewhere else.. they want to live in California and specifically in the Los Angeles area. This is one of the reasons why homes cost so much more here then in other areas of the country... people want to live in Southern California instead of Wiscon... 08/31/2007

 Downtown Manhattan BeachThe last three weeks have been like driving a car downhill without brakes. No one knows what will happen at the bottom of the hill but we all hope for a safe stop without anyone getting hurt. There is a lot of speculation about how the woes of the credit market will affect  California, the Beach Cities and Manhattan Beach in particular.I have no answers because there are no immediate answers...just a lot of questions that can only be answered over time. All I can share at this time is what I do know....I know that we are not seeing a run up in foreclosures notices in Manhattan Beach and the Beach Cities. I know that if you have to refinance you can get a 90% LTV jumbo loan around 7%-7.5% fixed ( maybe a bit less) or a 6.5% adjustable providing you don't take any... 08/26/2007

   The Daily Breeze has an article about job growth in CA and it's an eye opener that goes a long way toward explaining the South Bay real estate market. In a nutshell jobs are growing on the low and high end but not much in the middle and the gap is large.The #1 question I'm asked is how can people afford homes in the South Bay-Beach Cities.... The answer is that most of those who live here are making a lot of money. The types of jobs are different and cover a divergent economic base. Gone are the days of everyone in the South Bay working at an aerospace company a few blocks from home.This is why home prices are so expensive in Manhattan, Hermosa, Redondo and El Segundo. It is also why you won't see the collapse of the home market in the beach cities that other places in CA or the coun... 08/23/2007

 Manhattan Beach WalkstreetWhat a difference a week can make. Had I posted Beach Cities: Sold July 2007 figures the first week in August I would have said that rates were low and the market was chugging along although at a slow rate. That was before August 4 and the collapse of American Home Mortgage and a number of other lenders. Who would have thought Countrywide would possibly be on the verge of bankruptcy or that the FED might seriously be considering bailing them out. While I think Angelo Mozilo is a bit smarmy I also realize it would be a disaster if they went into bankruptcy at this time. They make 1 out of every 6 loans in the country so you can see what their demise would do to the fragile credit market. Brian Brady wrote an excellent post on The Bloodhound Blog about the probl... 08/16/2007

If you are looking for a custom wedding floral designer or hosting a exclusive celebration, you must check out Emily Cristiano at Cristiano Design. Emily specializes in events held at La Venta Inn, Trump National, Beverly Hilton, Private Estates and the Hoiday Homes Tour. Cristiano Design has gone from creating romantic moods at the La Venta Inn to a wedding on the beach at the Portguese Beach Club tsking a sandy beach and transfrorming it into a  Hawaii Island setting which included brining in Palm Trees, Hawaian FLowers, spectacular mood lighting,Tiki Torches Elegante and a altar in front of the Waves. Emily is gifted, has unique talents and very upscale prices but her events will take your breath away and create an evening to remember for a long time to come. Here is her website for ... 08/15/2007

As a realtor in the South Bay who gets a good amount of business and new leads from my website and from the new generation of homebuyers searching on the internet, it's always difficult to explain to people what they can (or cannot) afford in the area.  Although there were big gains in real estate around the country, the reality is that the South Bay is simply a perfect example of supply and demand.  The demand for property in the cities of Manhattan Beach, Hermosa Beach, Redondo Beach and surrounding cities continues to grow.  Who wouldn't want to live in LA without feeling like you are in LA?  I often get requests for information on properties in the area priced so below reality that it's hard to be the bearer of bad news.  Finding a home in the area for a few hundred thousand dollars... 08/06/2007

  There have been a number of recent posts about the chaos in the loan market and how it may affect buyers and sellers.  Brian Brady wrote a series of articles,  Broker Bryant posed  questions about what happens to his buyers with American Home Mortgage out of the picture.  Ricardo Bueno wondered whether the FED should been more articulate about what has been happening in the lending industry.  Each article makes some great points.. I had to laugh at Brian's take that stated income buyers are the new smokers  as a group to be shunned as bad.. very bad.Truth is that I was hoping that the mortgage market was going to see some major changes.. but Brian Brady seems to think that the only thing that will change is the upfront price of the mortgage.  In other words it will be business as usua... 08/05/2007

   July was not a great month for SOLD real estate sales in Manhattan Beach or any of the beach cities. Actually it was a very strange month .... not much happened until after the 15th and then the market suddenly jumped to life. Pending sales usually give the best read on the market.. of the 36 homes that went into escrow in July.. 21 happened after July 15, 2007.Listings are staying around the 106-112 level.. currently there are 109 homes for sale in Manhattan Beach. There are 51 homes in escrow and 27 homes Sold in July. I expect to see the media posting some real doom and gloom headlines shortly.However Sold homes last month may not be a good indicator of the market. Look to the pending sales to see what's happening. The majority of the activity is under $2,000,000. Many homes that ... 08/05/2007

 I've spent a lot of time today talking with local lenders about the changing home mortgage market. It's going to get nasty out there before it gets better. Buyers who have traditional jobs with a regular paycheck and 20% down will breeze through.. everyone else may have trouble getting the loan they want to purchase a home. Underwriting rules are going back to the old days.. 10%-20% down and full document verification for most loans. If you want to do a loan using stated income you will need 20% down.I've got clients in all price ranges. Fortunately most of them have good down payments but a few were hoping to use 5% and get an 80/15/5 loan. They still might be able to do it as they have no debt but it will be extremely hard. I noted a few brokers still pushing 100% financing but I thi... 08/01/2007

 I am working with a number of home buyers who are looking in every Beach City.. Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo. My clients' price ranges vary widely as do the types of properties they want to purchase.There are some things all Beach City home and townhome buyers have in common.. trying to figure out what to offer on the homes they want to buy. Smart sellers don't want to overprice their homes... but they want a reasonable price for their property. Sellers who put their homes on the market are usually not doing it as a way to meet new friends.Smart Buyers don't set out to insult a seller with a low ball offer; they just want to buy at a fair price.. or market value. Buyers really don't go to open houses because they have nothing better to do on the weekend.... 07/30/2007

Where Do You Want to Live?  A new report from Money Magazine on the Best Places to Live in the U.S.. spots  California  with three big cities on the top 10 list of best places to live.  Los Angeles is number 4 in the large U. S. city category. No surprise.. Manhattan Beach shows up as # 13 on the pricey homes list while Palos Verdes Estates slips in at # 10. What's nifty about this site is that there' s a place for consumers to also rate the top ten cities. In the consumer rankings San Diego gets the top spot and LA comes in at # 9. So who cares about this poll.. well you should if you are thinking about buying or selling real estate in the South Bay/ Beach Cities of Southern California. For one thing CA has nabbed three of the top ten city spots. This is one of the reasons prices on C... 07/24/2007

  Here's one you don't want to miss.. Shakespeare By The Sea .. Bring a blanket, and some snacks to the park and have some fun while picking up some culture... If you have children this is a fun way to introduce them to The Bard. This year there are two productions:The Merchant of Venice: Manhattan Beach:Polliwog Park : July 20, 2007 at 8 pm Torrance: Wilson Park: Augus 1, 2007 at 8 pmRedondo Beach: RB High School: August 1, 2007 at 7:30 pmThe Taming of the Shrew:Manhattan Beach:Polliwog Park: July 21, 2007 at 7 pmHermosa Beach:Valley Park: July 25, 2007 at 7 pmTorrance: Wilson Park: July 25, 2007 at 8 pmLomita: City Hall: August 3, 2007 at 8 pm Redondo Beach: RB High School: August 8, 2007 at 7:30 pm  All content copyrighted@ 2007 Kaye Thomas 07/20/2007

  If you want to buy a house the best thing you can do is slow down.   I know that sounds a bit strange in a market that is slow..but if you  really want to buy then you need to focus on those things that will help you accomplish the goal. Too often buyers are scurrying around looking at open houses, talking to their friends about the market, reading media items and just generally doing everything but thinking about what they need to do and the best way to do it.   If you really want to be a homeowner then you need a plan.7 things you need to do to buy a home:1.  Gather all your financial documents together.. that's bank accounts, stocks, check stubs, birthday money from Aunt Jane and Uncle Harry... anything that has a bearing on your finances.2.  Find a good lender and talk to them abo... 07/14/2007