SPRING HAS SPRUNG

and our Market Is On The Move!

4000Newton.com
 

Everyone is wondering what the 2013 real estate market will deliver.  So far, it looks like we have definitely bottomed out and are seeing significant increases in pricing in some areas already.  Some sellers are reluctant to put their homes on the market, worried they won't be able to get their price.  Of course that means fewer homes for sale and the competition can be fierce in the lower price ranges.  The sellers looking to move up in the market will benefit even if the pricing hasn't met their expected levels for their home sale.  The difference in purchase price on a higher value will make up for the lower sales price in most cases. 

Another important issue this year is interest rates.  So far we are still seeing the lowest rates in history for mortgage money.  That will change.  As the interest rates begin to rise, prices will be affected as the affordability for buyers will change.  Right now, we are even seeing 100% loans back in the market.  Unbelievable opportunity for financing right now if you have decent credit (FICO scores in the mid-600 range plus) and verifiable income.  Even those with distressed credit from previous short sales can benefit (must be longer than two years since recorded sale) as long as they have kept their spending to a minimum and paid all their accounts on time.  The financing is out there for everyone from first time buyers to jumbo refinances - take advantage while you can.

Some Fun Facts About the Market*

Who's Moving In The Next Two Years? 

48%  18-34 year olds

26%  35-49 year olds

16%  50-64 year olds

10%  65 and older

 

 

Team South Bay is looking for homes for our South Bay buyers!  If you are thinking about moving up or downsizing please give us a call.  We'll prepare a full market analysis for your home and neighborhood free of charge.  We also have a list of Income Property Buyers too.  Let us help you take advantage of this HOT real estate market. 

 

 

p.s. Dyna says the South Bay is

Heaven on Earth and we agree! 



*courtesy of the Demand Institute 





TIME TO CANCEL TIME MAGAZINE

I’d always considered myself a centrist/conservative. Subscribing to Time Magazine is not something a “dyed in the wool” conservative would do. I appreciate hearing all points of view. That said, the August 30th issue with the cover question “Is America Islamophobic?” really got my dander up (that’s a Midwest phrase.) I spent 9-11-01 in Hawaii with 2000 people at a seminar, a good portion from New York. My roommate lived less than 1 mile from Ground Zero. Dozens of my attendee friends lost loved ones. We were stuck on the island. No flights in or out that week. We grieved together, cursed together and learned about each other on a much deeper level than could ever have been anticipated. The Time article particularly angered me. To cover that gripe I need the space of a book, not a blog.

Now I’m reading the September 6th issue, the front cover shouting “Rethinking Homeownership.” As a Realtor and Real Estate Broker I tried to review their information with an open mind. After all, I need to know what my clients are being told. That recalls another phase “Keep your friends close and your enemies closer.” When I finished their ludicrous article I didn’t know whether to laugh or cry. Their concept conclusion - Americans should trend toward dumping their homes and consider inner city living in cities where people can walk to work. The author envisioned urban areas becoming hotbeds of rental housing. Obviously, this writer is probably not a homeowner, certainly doesn’t live in Los Angeles and most likely will never earn a living as a writer except maybe for comedy.

Since most of my clients live near the beach or on the hill (Palos Verdes Peninsula) I’m trying to imagine leaving those homes behind and moving downtown. They could rent a flat (some buildings are currently converting to lofts.) They could walk to work (assuming they can find a job downtown.) They could also take the Red line to the Blue line to the bus station to the beach …problem with dragging those surf boards though. Perhaps this author lives in New York City. If that’s the case, I pray she lives in the same neighborhood as the intended mosque. Meantime, if you would like to downsize to a rental loft in the business district, please call me! I have many people trying to buy homes in the South Bay area. Somehow we have this strange conception that God is not making anymore Beach Front property. I suppose that will hold until the next “big” one drops us into Las Vegas, but I digress.

If you are a first time buyer NOW is the time to buy not rent. Interest rates are in the 4’s for heaven’s sake. If you have a paycheck and even if you have to commute to a job in East Butt Scratch, I suggest this is your window of opportunity. And if you’re short on funds, you can start saving money right now by cancelling your Time Magazine subscription!

A Good Time To Buy?

A good time to buy?



Many housing economists have said that for borrowers with stable incomes, good credit history, and FICO scores of at least 620, now is an opportune time to purchase a home. Although inventory rates are below the long-run average, there still are plenty of options available for buyers of middle to high-end homes.


Consumers trying to time the market and purchase their home when prices are likely to rise again are advised to take a different approach. According to one real estate consultant, while home prices have stopped declining in most areas, and even have risen in some markets, mortgage rates may rise, offsetting any potential savings.


Early last year, the Federal Reserve began purchasing mortgage-backed securities, which helped maintain low interest rates for consumers. However, the Fed’s purchase program ended in March, and some analysts forecast interest rates to increase throughout the rest of the year. One financial publishing company predicts that rates likely will rise to 5.5 percent by mid-2010 and close the year at 5.75 percent to 6 percent. The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) projects rates on 30-year fixed-rate mortgages to average 5.6 percent this year.

Closely-watched indices, including the Standard & Poor’s/Case Shiller Index, indicate that the high end of the market didn’t experience the same dramatic price appreciation as the low end. Home prices in this segment have not declined as steeply as homes in the mid- to low-end of the market. Additionally, many discretionary sellers in the high end—those who do not have to sell their homes—are opting to wait until home prices rise before listing their homes for sale.



The high end of the market also is facing challenges with buyers qualifying for financing. During the height of the market, many high-end home purchases were fueled by exotic mortgage products. Now that those mortgages are no longer readily available, many lenders are requiring borrowers to provide proof of income, such as W-2s and recent paystubs, as well as demonstrate their ability to meet the monthly mortgage obligation.

This year is still providing many windows of opportunity.  If you've been waiting to move into a larger home or waiting to downsize for retirement, this is a good time to move forward.  As the market stabilizes, interest rates will rise.   Use this time to meet your goals and make the most of the current market.  Why wait 3-5 years to achieve the same result under different circumstances. 

Call me with questions about your home value or for a list of homes to preview in your area. You know I'm never too busy to be of service in my community and never too busy for your referrals!

The home pictured above is a wonderful 3 bedroom home in the Lomita Pines area.  Check out this home's personal website:
http://www.2077guyson.com/ for all the details or call me and I'll send a copy of the listing information directly to you. 

Enjoy the beautiful Spring weather!

LEMONADE IN THE PARK ...

I may be dating myself here, but this picture reminds me of my childhood...hot summer days with ice cold lemonade, park-like backyards, playsets, lots of room and lots of time and lots of fun! Today, it's hard to find BIG BACK YARDS with quiet park-like settings.... nice places to sit and sip and talk. Put away the IPODS and Blackberries and just enjoy the quiet, watching the kids play...it makes you feel young again. And if you're the parents in this setting, it makes you feel secure and comfortable that your family has a safe, fun place to play and relax!

This is a lovely home in Lomita Pines. Not only does it have this fabulous back yard, it also has four bedrooms, two and one half baths, a large yet cozy living room with fireplace, remodeled kitchen, covered patio, balcony with city views, attached garage with custom cabinets and direct entry into the home, security system, forced air heat and air conditioning. Great floorplan too... one bedroom and bath downstairs has a private entrance (perfect for teens, nannies, inlaws or just guests.) Beautiful handcrafted oak stair rails lead to the spacious upstairs bedrooms with lovely city views. You have to preview this home to appreciate it. More information is available at: http://www.realestateshows.com/196690 or http://www.lomitahomes.com/.

Oh, did I mention that this home is also on a Cul De Sac? Visit us and feel the difference this neighborhood could make in your life and the lives of your family members.

Call me for more information on this and other beautiful homes in the Pines that may fit your needs. My business is in your neighborhood!

It's a Good Life!