Maureen Megowan's Blog

I do a lot of relocation work with people transferring to the Los Angeles area from other parts of the country , and they often are looking at areas throughout the greater Los Angeles area to decide which is the best community for them to live in.  In addition to the rural nature of Palos Verdes, and our great school system,  one of the best things about the Palos Verdes Peninsula is its stunning beauty.  Here are a few pictures I have taken:

Catalina Island from Del Cerro Park

South Bay Beaches

Lunada Bay in Palos Verdes Estates with Catalina Island

Rancho Palos Verdes Coast Line

La Venta Inn in Malaga Cove area of Palos Verdes Estates

Point Vicente Lighthouse

Beautiful Sunset

Mortgage Payment Relief May be Available on Fannie Mae and Freddie Mac Loans. Huge news for people who are temporarily unemployed. Fannie and Freddie will begin implementing "forbearance" programs beginning March 1st and Feb.1st (respectively).

The following information was published in the LA TIMES by Kenneth R. Harney  http://www.latimes.com/  January 22, 2012

On loans they own or have securitized, Fannie and Freddie are now directing servicers to forbear when a borrower can show a job loss.

Unlike the companies' earlier rules, servicers can grant half a year of reduced or suspended payments without getting permission in advance.

If unemployment continues beyond six months, and if the servicer believes additional forbearance for up to another six months would be appropriate, it can ask Fannie or Freddie for approval to do so.

During any unemployment forbearance period under the rule revision, borrowers will not be subject to foreclosure, even if they had fallen behind on payments before the forbearance began.

Fannie Mae's policy becomes mandatory for all loan servicers March 1. Freddie Mac's policy takes effect Feb. 1.

Though no estimates were available on how many borrowers could be assisted under the new guidelines, the numbers are likely to be substantial at a time when the national unemployment rate is at 8.5%.

Forbearance, it should be noted, does not mean a forgiveness or reduction of the principal balance on the mortgage.

Whatever amounts go uncollected during the forbearance period must eventually be repaid. Typically missed payments are "put at the back of the loan" or repaid in increments over the up coming payments.

Not everybody owning a home with a Fannie or Freddie mortgage will be eligible for the expanded job-loss relief.

The house must be a principal residence, not a second home or investment property.

Fannie's guidance to servicers specifically rules out assistance when the home was financed with an FHA, VA or Rural Housing mortgage.

Most important, there must be a documented "financial hardship"caused by the employment loss, and there must be a reasonable chance that without forbearance the borrowers could sink into default and eventually lose the house.

In cases in which borrowers are being considered for an extension of an existing forbearance plan, borrowers will also have to document that they don't have cash reserves - bank accounts or other liquid assets -that exceed 12 months' worth of their monthly housing expenses

To determine if Fannie Mae owns your loan just click here.

To determine if Freddie Mac owns your loan just click here.

I wanted to let you know that one of my favorite restaurants, Lunada Bayhouse Restaurant,  located at the Lunada Bay Plaza, is now opening for lunch.  It is a wonderful place for lunch or dinner. It has great appetizers,  great steaks and seafood ( love their sauces ), and wonderful pasta dishes. I think that it is important to support our local businesses.

                                                                                       OUR LUNCH MENU
                                                                JOIN US JANUARY 24TH 11:30 ~ 2:30 
                                                                   MAKE YOUR RESERVATIONS NOW

Interest rates inched up this week from record lows. The following are some excerpts from this week's newsletter on interest rates from HSH Associates :

"Low and stable mortgage rates and a modestly improving economy are starting to produce positive effects on the nation's housing market. While starting from extraordinarily low levels, and though improvement are still of course tenuous, there have been accumulating signs of improvement for months. If the economy can continue to nudge forward for a while longer without some new or already-known catastrophe to derail it, we just might have ourselves a housing market worth talking about when Spring rolls around.  

Yields on 10-year Treasuries finished last week on a downward note, and rates were at record lows again through into Wednesday morning. However, the reverse is true this week, with Treasuries ending on a high note, and nudging rates off record lows. While some of this increase in underlying costs will probably be absorbed into still-wide spreads, a bit of it may make its way into rates next week, which would mean a further slight move away from record low levels. No real movement, but probably a couple of basis points upward is to be expected, based on where we are at the moment."

The following are interest rate quotes from Al Hermann of American California 'finaniao

 
The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

Conforming Loans to $417,000

5 Yr Fixed:         2.625% @ 1.000/pts                      3.000% @ 0/pts

30 Yr Fixed:      4.000% @ 1.000/pts                      4.375% @ 0/pts

Conforming High Balance to $625,500

5 Yr Fixed:               2.875% @ 1.000/pts               3.375% @ 0/pts*

30 Yr Fixed:             4.125% @ 1.000/pts               4.500% @ 0/pts

Non-Conforming Loans to $2,000,000

  5 Yr Fixed:          2.750% @ 1.000/pts                       3.000% @ 0/pts

            30 Yr Fixed:       4.000% @ 1.000/pts                       4.375% @ 0/pts

FHA Fixed Loans to $729,750

        30 Yr Fixed:        4.000% @ 1.000/pts                    4.250% @ 0/pts                                  

Rates based on a Single Family Residence Purchase with 20% down, FICO score of 740 or greater, 30/day pricing.  FHA is based on Single Family Residence Purchase with 3.5% down payment, FICO score  minimum of 620 and 30/day pricing.   Points are for Rate only.  Closing Costs apply.  Rates not guaranteed and subject  to change daily.  Please contact me for more information on Condo, Multifamily Units and Refinancing at 310-802-2300.

The blog posting below is right on about how important an excellent school system is to maintaining property values.  Most of my buyers here on the Palos Verdes Peninsula are attracted to this area because of the excellent independent school system.  The community support for our local schools is exemplified by the consistent approval of several recent parcel tax proposals that received almost 70% approval by the voters.

The peole of the Palos Verdes community recognize the importance of maintaining our school systems, not only for their affect on real estate values, but for the benefit of our future generations.

The Palos Verdes Drive North area of the Palos Verdes Peninsula ( area 165 in map below )had the following real estate market activity for single family residences during the 4th Quarter of 2011:

Properties Sold: 6

Address                 Sales Price BR BA  Sq.ft.  $/Sq.ft Yr. Blt.  MLS #   Dale of Sale   Days on Market

27665 Saddle RD         $655,000 3 2.00 1,512 $433.20 1957 V11063759 10/14/11             104
27740 Saddle RD         $849,000 3 3.00 1,890 $449.21 1956 S11083902 10/21/11             107
18 Lariat LN                 $940,000 5 3.00 2,626 $357.96 1963 V11092744 12/28/11             164
27548 Eastvale RD    $1,150,000 4 4.00 3,622 $317.50 1965 P796112     10/29/11               21
80 Buckskin LN          $1,350,000 4 4.00 3,157 $427.62 2000 S11100175 11/01/11              71
27642 Eastvale RD    $1,630,000 3 3.00 3,132 $520.43 2006 V11126486 11/04/11               33

Properties for Sale as of 12/31/11:  11

Average List Price at 12/31/11:  $1.1 million

Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago   Dec. 11 Nov. 11 % Change Dec. 11 Dec. 10 % Change Oct. 11 to Dec. 11 Oct. 10 to Dec. 10 % Change For Sale 11 14 -21.4% 11 15 -26.7% 15 20 -25% Sold 1 2 -50% 1 2 -50% 2 3 -33.3% Pended 1 3 -66.7% 1 1 0%     2 2 0%

Average Sales Price of homes sold during 4th quarter: $ 1.1 million

Average Price per Sq. Ft. for Properties Sold during 4th Qtr:   $ 418  per sq. ft.

Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago   Dec. 11 Nov. 11 % Change Dec. 11 Dec. 10 % Change Oct. 11 to Dec. 11 Oct. 10 to Dec. 10 % Change Avg. Sq. Ft. Price 358 474 -24.5% 358 515 -30.5% 407 418 -2.8%

Properties sold at an average of 97% of List Price

The Malaga Cove area of Palos Verdes Estates ( area 163 in map below )had the following real estate activity for single family residences during the 4th Quarter of 2011:

Properties Sold:  5 ( The same number as last quarter )

Address          Sales Price   BR BA  Sq.ft. $/Sq.ft  Year Built  MLS #  Date of Sale  Days on Market

2615 Pinale LN        $1,170,000 5 6.00 3,905 $299.62          1959          V11048928      11/03/11      159

768 Via Del Monte    $1,200,000 5 5.00 4,182 $286.94         1978         V11087576      12/08/11       108

505 Via Media          $1,300,000 3 2.00 2,029 $640.71          1953         V11061370      11/04/11        99

512 Via Almar          $1,590,000 4 3.00 3,092 $514.23           1971         V11126093      12/20/11        86

1640 Via Arriba        $1,785,000 4 3.00 3,058 $583.71           1973         V11126434       12/02/11       29

Average Sales Price of homes sold during 4th quarter: $1.4 million

Number of Properties Listed for sale as of 12/31/2011 :  8

 

 

 

 

 

Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago   Dec. 11 Nov. 11 % Change Dec. 11 Dec. 10 % Change Oct. 11 to Dec. 11 Oct. 10 to Dec. 10 % Change For Sale 8 10 -20% 8 12 -33.3% 10 14 -28.6% Sold 3 2 50% 3 4 -25% 2 3 -33.3% Pended 2 4 -50% 2 3 -33.3% 2 2 0%

Average List Price at 12/31/2011:  $2.1 million

Average Price per Sq. Ft. for Properties Sold during 4th Qtr:   $ 465 per sq. ft.

 

 

 

 

 

Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago   Dec. 11 Nov. 11 % Change Dec. 11 Dec. 10 % Change Oct. 11 to Dec. 11 Oct. 10 to Dec. 10 % Change Avg. Sq. Ft. Price 443 416 6.4% 443 566 -21.8% 432 541 -20.2%

Properties sold at an average of 90% of List Price

You do not have to be a member of the Palos Verdes Beach and Athletic Club to use it:
Resident, non-members may use the club for a day pass rate of $30 per person per day. Non-residents may also use the club for a day pass of $45 per person per day. These day passes may not be used on Memorial Day, July 4th, or Labor Day, and no guests are allowed on those days. Guests of members are $10 per person, seven days a week from 6/15 through Labor Day. Guest fees other times of the year are $7 per person.

 
Palos Verdes Beach & Athletic Club

Hillside Jacuzzi, bar-b-ques and snack shop

For more information on PV Sports, Recreation
And  Parks  please visit my website http://www.maureenmegowan.com

 

 

The following is a chart of the number of single family homes for sale, sold, and currently in escrow ( Pended)  on the Palos Verdes Peninsula.   Sales volume has increased to an average of 45 homes sold per month, a 22% increase over the 4th quarter of 2010.

 

The figures included in the table below are only for the three months in the 4th Quarter :

The total inventory of single family homes for sale in the cities listed above is down approx. 35% compared to the prior year, the sales activity is up 10%, and there is only 3 months of inventory. For most of the last two decades, L.A. County has averaged an 8 month inventory. Homes in the lower end of the price range have also been selling faster than the higher priced homes. Average price per sq. ft. for homes sold in the 4th quarter 2011 for the cities listed above is down approx. 8& overall compared to the 4th quarter of 2010.

FINANCING   (See our web blog at http://mmegowan.activerain.com/for rate updates):

Interest rates for Conforming Loans ($417,000 and below) are at approx. 3.9%, approx. .5% lower that at the end of last quarter.  Rates for loans between $417,000 and $625,500 (conforming jumbos) are approx. 4.0% ( a reduction of about .5% from last quarter end. Conforming loans generally require a 20% down payment (less for FHA or VA loans). Interest rates on Jumbo 30 year fixed rate mortgages (loans in excess of $625,500) have an average rate of approx. 4.5 to 4.75%, approx. the same as the prior quarter.  The spread in interest rates between conforming loans and jumbo loans has narrowed considerably over the last year or so as more banks are participating in making jumbo loans. Jumbo loans require a higher down payment of 25 to 30%. All rates above are APR  rates as of 11/15/2011, and assume a 20% down payment, no points and a FICO score of at least 740.

Fourth  Quarter 2011 Market Analysis for Palos Verdes Peninsula Condos and Townhomes

The average price per sq. ft. for townhomes and condos on the Palos Verdes Peninsula has fallen approx. 13% compared to the fourth  quarter of last year, and averaged $295 per sq. ft. during the 4th quarter 2011.. Prices in a few projects , such as the Palos Verdes Bay Club have fallen more than this.  Pricing during 2011 for condos and townhomes has  fluctuated widely, between $279 and $356 per sq. ft.

The following is a chart of Palos Verdes Peninsula condos and townhomes for sale and sold over the last year
 

The inventory of condos and townhomes for sale  of 42 units at the end of the 4th quarter of 2011 continues to fall dramatically from its peak in March 2011 ( a 54% decrease) and is 37% lower than a year ago. Sales volume for the quarter ws also 11% higher than last year, which has resulted in a reduction to only a 4 month inventory of condos and townhomes for sale.

I have been very involved in the condo and townhome market on the Palos Verdes Peninsula. You can see that by "Googling" the search term " Palos Verdes Condos"  and you will see that my website is the first listing on page one of the search results. To check out the various condo and townhome projects on the Palos Verdes Peninsula, see the following link on my website: PV Condos & Townhomes / Townhouses.  Each of these project descriptions have an analysis of recent prices paid for sales in each project.  You can also see the latest listings for condos and townhomes in Palos Verdes on my website at the following link:   MLS Listings - South Bay and PV

The Monte Malaga area of Palos Verdes Estates ( area 162 in map below )had the following real estate market activity for single family residences during the 4th Quarter of 2011:

Properties Sold:  6 ( A decreae from 9 last quarer )

Address                  Sales Price  BR  BA   Sq.ft. $/Sq.ft. Yr Blt MLS                 # Date of Closing    Days on Market

033 Via Nogales             $885,000 3 2.00 1,675 $528.36 1956 V11038626             11/28/11                 227
2208 Via Alamitos        $1,000,000 4 3.00 2,645 $378.07 1966 V11062827             11/25/11                103
968 Via Rincon             $1,500,000 4 3.00 2,256 $664.89 1962 V11032884             10/21/11                 221
2409 Via Sobrante       $1,750,000 3 4.00 2,608 $671.01 1959 V11130242             12/08/11                    2
2101 Via Cerritos         $2,066,000 5 4.00 5,096 $405.42 1988 S11122436             12/16/11                  91
974 Paseo La Cresta    $4,150,000 4 5.00 4,826 $859.93 1979 V11132798             12/07/11                  35

Average Sales Price of homes sold during 4th quarter: $1.9 million

Properties for Sale as of 12/31/11:  10 ( A decrease of 8 from last quarter, and a 55% decrease from last year , equal to a 5 month inventory based upon the last quarters average of 2 sales per month )

Average List Price at 12/31/11:  $5.2 million

Average Price per Sq. Ft. for Properties Sold during 4th Qtr:   $ 585 per sq. ft.   Due to the relatively low number of homes sold during the quarter, the average price per sq. ft. for homes sold is highly dependent on the size of the homes sold during the period.   Smaller homes tend to sell at a higher rice per sq. ft. 

Properties sold at an average of 96% of List Price