Maureen Megowan's Blog

The California Association of Realtors has just released the following good news for first time homebuyers:

"Following the Senate's favorable vote yesterday, the U.S. House of Representatives just voted 403 to 12 to extend the home buyer tax credit, expanding the parameters to include existing homeowners and not just first-time buyers. As you may know, C.A.R. and our partners at NAR have worked for months urging Congress and the Senate to extend and expand this crucial piece of legislation. We expect President Obama to sign the legislation in short order.

As it now stands, the federal tax credit will be extended through April 30, 2010, with a 60-day extension if a binding contract is in place prior to the deadline. First-time home buyers will continue to be eligible for a tax credit of up to $8,000, while existing homeowners will be eligible for a reduced credit of up to $6,500. To qualify for the $6,500 credit, existing homeowners must have lived in their current residences for at least five years. The bill also increases the qualifying income limits from $75,000 for single tax filers and $150,000 for joint filers to $125,000 and $225,000, respectively. The purchase price of the home is capped at $800,000 in both instances.

Under additional provisions included in the bill, taxpayers can claim the credit on purchases completed in 2010 on their 2009 income tax returns. The legislation maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order."

This is excellent news and will help all first time home-buyers realize their dream of home ownership.

The real estate market for the Palos Verdes Peninsula and Beach Cities picked up substantially in the third quarter 2009. Both buyers and sellers stepped up to buy and sell. Properties that were sitting for many months sold at all levels of the market. High end properties are selling as jumbo loans have become more available. Buyers who can get financing are actively looking and aggressively offering where they see a deal. Sellers who are motivated to move are pricing their homes to sell.

I have also posted below in separate web blog posts detailed market reports for each of the neighborhoods on the Palos Verdes Peninsula which lists the homes sold in each neighborhood during the 3^rd Quarter of 2009

News reports are mixing in some good economic news in addition to the doomsday reports favored by the media. Lower priced homes are moving briskly with buyers taking advantage of significant discounts and record low interest rates. New tax credits are also giving great incentives to new buyers. Today, the Senate agreed to extend the $8,000 first time homebuyers tax credit that was scheduled to expire at the end of November to the end of next April, with the Housed expected to agree to extend the credit.

PRICE CHANGES  -  Properties, on average, in the South Bay are selling for approx. 96% of list price. The average price per sq. ft. for homes sold in the third quarter 2009 compared to the third quarter 2008, has fallen much less in the South Bay Beach Cities, however, than in most markets in Southern California. Recent news reports have indicated that prices may be stabilizing in Southern California. The median price of homes in Los Angeles County has also been increasing lately due to an increase in the number of more expensive homes being sold because of the improving market for jumbo loans.

Quarterly changes in sales volumes in the beach cities compared to last year varied widely, with some strong increases in sales volumes on the Palos Verdes Peninsula and San Pedro, but flat sales in Torrance and Manhattan and Hermosa Beach or decreases in sales in Redondo Beach.

Inventory -  The total inventory of single family homes for sale in the cities listed above has decreased significantly during the last quarter, except for the more expensive area of Rolling Hills.

Inventory History -For most of the last two decades, L.A. County has averaged an 8 month inventory. The number of months of inventory of homes in Redondo Beach, Torrance and San Pedro has shrunk significantly in the last 3 quarters. Homes in the lower end of the price range in the higher priced market of the Palos Verdes Peninsula and Manhattan Beach have been also selling faster than the higher priced homes, yet as  previously,  luxury home sales on the PV Peninsula increased in the third quarter.

What is a Short Sale?

CDPE - Certified Distressed Property Expert

Short Sales are a sale of a property where the sale proceeds are not adequate to pay off the existing loans, requiring the lender to agree to accept less than full payment of their loan. At this time, the fastest growing segment of the distressed property market is the luxury market.  I am a Certified Distressed Property Expert, and those realtors that have this designation have a success rate of 85-90% closing short sales, compared to a national average of 8-10% successful closings. Whether it is caused by relocation, loss of a job or increased mortgage payments, everyone at some point has been touched by the worldwide economic downturn. If you know someone who may need some help lease don't hesitate to call or refer our services.

IT'S ALL ABOUT THE INTERNET.  We invite you to visit our award winning website at www.maureenmegowan.com.  Our website achieves extremely high placement on search engine results, such as "Palos Verdes Real Estate" and "South Bay Real Estate" on Google, for people using the internet to buy a home in Palos Verdes or the South Bay beach communities. This has made us a leader in serving relocation clients.

TAX INCENTIVES:     The Federal government's $8,000 tax credit for first time home buyers is scheduled to expire November 30^th, but may be extended by Congress. There are also substantial tax credits for qualifying energy saving expenditures.  For more info, visit the following link on my website : Income Tax Issues

BUYERS AND SELLERS TAKE HEART! There is financing available for well qualified buyers due to the Federal Reserve's aggressive action in purchasing Fannie Mae and Freddie Mac securities. Funds for this program are expected to run out by the end of the 1^st quarter of 2010 and interest rates may move up by upwards of a half point in the early part of next year. There are new guidelines for Fannie Mae and Freddie Mac loans, and 3.5% down payment loans are available with tight restrictions.  

BUYERS with good credit, an adequate down payment and 2 years or more employment history will qualify for Full Documentation loans. There are no Stated Loans ( no documentation) offered now. If the property will be your home, not a speculative investment, you should be buying for the long term. Today's market gives buyers and sellers the opportunity to negotiate a reasonable deal for both parties.

Conforming Loans  (loans of less than $417,000) are at approx. 4.9 %.  Rates for loans between $417,000 and $729,750 (conforming jumbos ) are about one-eighth to one quarter of a percentage point higher. Conforming loans generally require a 10% to 20%down payment (less for FHA or VA loans)

Interest rates on Jumbo 30 year fixed rate mortgages (loans in excess of $729,750) have decreased substantially over the last several quarters to an average rate of approx. 5.75-6.25%. The interest rate spread between conforming loans and Jumbo 30 year fixed rate loans are approx. 75 % to 1.25 %  higher than 30 year fixed rate conforming loans. Jumbo loans also require a much higher down payment of 25 to 30%. This large spread between jumbo loans and conforming loans is amazing considering that prior to the mortgage loan melt down, spreads between conforming and jumbo loans were only approx. two-tenths of a percentage point. 7 year variable rate loans are available for jumbo loans at rates of approx. 5.4%.

All rates quoted above are as of 10/22/09 with usually FICO Scores of at least 740.

Thanks for reading this. We hope it helps your decision making. Call us for more in depth help for your property.

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Last month, the U.S. 9th Circuit Court of Appeals sided with the City of Rancho Palos Verdes supporting the city's contention that it had the right to review the aesthetics of proposed cell phone transmission towers within the city limits.

 Typical cell phone tower with no provision for aesthetics

In the court's opinion, they stated "The experience of traveling along a picturesque street is different from the experience of traveling through the shadows of a WCF [wireless communications facility], and we see nothing exceptional in the city's determination that the former is less discomforting, less troubling, less annoying and less distressing than the latter," the panel observed in the ruling. "After all, travel is often as much about the journey as it is about the destination."

Sprint had argued that the city's rejection of two wireless construction projects on aesthetic grounds violated the 1996 Telecommunications Act, which bars municipalities from action that constitutes "a prohibition on the provision of wireless service."

 Example of cell phone tower designed to blend in

The appeals court panel disagreed, pointing to the company's own assertion that it already serves some 4,000 customers in the affluent city. Sprint had refused to make the changes to the proposed towers that the city had recommended to make it more compatable with the neighborhood.

The City of Rancho Palos Verdes has settled a lawsuit brought by local residents opposed to the expansion plans of the St. John Fisher Catholic Church which now clears the way for the Church to commence their expansion plans.

(Paul Penzella/Staff Artist)

The settlement resulted in only minor changes to the planned expansion, including moving the main sanctuary building 20 feet away from the adjacent street. The church will construct a 17,000-square-foot sanctuary with a 74-foot lighted cross. The current sanctuary will be turned into an athletic and activity center, and several other buildings will be torn down or modified. The expansion is expected to cost approx. $20 million.

St. John Fisher Catholic Church administrator David Kurt shows a model of the proposed new sanctuary in Rancho Palos Verdes.  (Steve McCrank/Daily Breeze Staff Photographer)

The following are interest rate quotes from Al Hermann of American/California Financial Services :

For more information about Financing your purchase of a home on the Palos Verdes Peninsula, visit my website at http://www.maureenmegowan.com

The Eastview area of Rancho Palos Verdes ( area 177 in map below) had the following real estate market activity for single family residences during the 3rd Quarter of 2009 :

Properties Sold: 9

Address                    Sales Price BR BA  Sq.ft.     $/Sq.ft Yr.Blt. MLS#  Sold Date  Days on Mkt.

2021 Caddington DR     $580,000 3 2.00 1,274     $455 1956 P677603 7/02/09          113

1902 Caddington DR     $605,500 3 2.00 1,248      $485 1955 S09060751 8/28/09       97

29012 S Highmore AV    $629,900 6 3.00 2,800      $225 1950 W09072453 9/15/09      31

28723 N Enrose AV        $689,000 3 2.00 1,274       $541 1956 S09056247 7/10/09       11

27847 S Montereina DR $700,000 3 2.00 2,084       $336 1959 P690034 7/24/09           51

2064 Noble View DR       $703,000 3 3.00 1,824       $385 1956 V09070188 8/13/09        1

2102 W Macarthur ST      $735,000 4 2.00 2,000      $368 1955 S09073475 9/16/09       36

1978 Caddington DR       $765,000 4 3.00 2,202       $347 1956 V09038764 8/22/09     130

2403 Sparta DR              $810,000 3 2.00 2,533       $320 1964 V08049761 9/24/09      537

Properties for Sale as of 9/30/09: 11

Average List Price at 9/30/09:  $ ,7 million

Average Sales Price of homes sold during 3rd quarter: $ .7 million

Average Price per Sq. Ft. for Properties Sold during 2nd Qtr:   $ 382 per sq. ft.

Properties sold at an average of 98% of List Price

For more information on buying or selling real estate in the Eastview area of Rancho Palos Verdes visit my website at http://www.maureenmegowan.com

The Silver Spur area of Rancho Palos Verdes and Rolling Hills Estates (Area 176 in map below) had the following real estate market activity for single family residences during the 3rd Quarter of 2009 :

Properties Sold: 9

Address                         Sales Price BR BA  Sq.ft.      $/Sq.ft Yr.Blt. MLS#  Sold Date  Days on Mkt.

49 Rollingwood DR        $655,000 3 2.00 2,267    $289 1956 09346373 8/31/09         128

2 Via De La Vista           $799,000 3 2.00 1,625    $492 1963 V09062266 7/10/09        29

27108 Whitestone RD     $818,000 3 2.00 1,914   $427 1959 V09041804 6/30/09        51

27057 Springcreek Road $859,000 3 2.00 1,612    $533 1960 V09075922 9/04/09       17

5730 Ironwood ST          $870,000 5 3.00 2,158    $403 1961 V09030529 9/18/09      174

5839 Flambeau RD         $885,000 4 3.00 2,192    $404 1959 V09036500 9/22/09      171

26557 Silver Spur Rd       $975,000 4 2.00 2,484    $393 1962 S09009106 9/16/09      186

4845 Elmdale DR            $987,000 3 2.00 1,767    $559 1956 S09033065 7/02/09       43

4937 Elmdale DR          $1,050,000 4 3.00 2,176    $483 1956 S09052587 8/08/09      84

Properties for Sale as of 9/30/09:  6

Average List Price at 6/30/09:  $ 1.0 million

Average Sales Price of homes sold during 3rd quarter: $ .9 million

Average Price per Sq. Ft. for Properties Sold during 3rd Qtr:   $ 442 per sq. ft.

Properties sold at an average of 96% of List Price

For more information on buying or selling real estate in the Silver Spur area of Rolling Hills Estates and Rancho Palos Verdes visit my website at http://www.maureenmegowan.com

The Peninsula Center area of Rancho Palos Verdes and Rolling Hills Estates (Area 175 in map below) had the following real estate market activity for single family residences during the 3rd Quarter of 2009 :

Properties Sold: 11

Address                      Sales Price   BR BA    Sq.ft.  $/Sq.ft Yr.Blt. MLS#  Sold Date  Days on Mkt.

5216 Silver Arrow DR     $825,000 3 2.00 1,395 $591 1959 V09039106 7/01/09     67

27603 Fawnskin DR       $863,000 3 2.00 1,662 $519 1959 V09067971 8/25/09     42

27416 Fawnskin DR       $890,000 3 3.00 2,392 $372 1959 S09059707 9/11/09     86

27504 Littlewood DR      $900,000 5 3.00 2,372 $379 1965 P689116 8/31/09         41

27038 Diamondhead LN $925,000 3 2.00 1,899 $487 1965 V09078602 9/04/09     43

5039 Browndeer LN         $990,000 5 3.00 2,494 $397 1967 V09083396 9/30/09    10

27003 Silver Moon LN   $1,010,000 4 3.00 2,622 $385 1967 V09055288 7/09/09    50

27520 Elmbridge DR     $1,050,000 4 3.00 2,189 $480 1965 S09067735 9/16/09    55

5040 Browndeer LN       $1,100,000 5 3.00 2,440 $451 1966 V09070652 9/24/09    73

26831 Hawkhurst DR     $1,100,000 4 3.00 2,784 $395 1967 V09016653 8/21/09   141

26504 Rockhurst           $1,100,000 4 3.00 2,490 $442         V09025384 7/02/09    106

Properties for Sale as of 9/30/09:   6

Average List Price at 9/30/09:  $ 1.0 million

Average Sales Price of homes sold during 3rd quarter: $ 1.0 million

Average Price per Sq. Ft. for Properties Sold during 3rd Qtr:   $ 445 per sq. ft.

Properties sold at an average of 97% of List Price

For more information on buying or selling real estate in the Peninsula Center area of Rolling Hills Estates and Rancho Palos Verdes visit my website at http://www.maureenmegowan.com

The Los Verdes area of Rancho Palos Verdes (Area 173 in map below) had the following real estate market activity for single family residences during the 3rd Quarter of 2009 :

Properties Sold: 5

Address                   Sales Price BR BA  Sq.ft.$/Sq.ft Yr.Blt. MLS#  Sold Date  Days on Mkt.

6933 Grovespring DR $889,000 4 2.00 1,806 $492 1963 S584963 9/20/09          6

7011 Willowtree DR    $910,000 4 2.00 2,316 $393 1963 S09057239 7/21/09     40

6908 Purple Ridge Dr. $960,000 4 2.00 1,617 $594 1963 V09056253 7/22/09    13

28361 Plainfield DR $ 1,000,000 4 3.00 2,484 $403 1964 V09040149 9/11/09  138

27917 Hazelridge DR $1,200,000 4 2.00 2,332 $515 1964 V09062801 9/16/09   78

28725 Blythewood DR $1,290,000 5 5.00 3,157 $409 1963 S09034109 7/17/09  70

Properties for Sale as of 9/30/09:  10

Los Verdes Street with Ocean View

Average List Price at 9/30/09:  $ 1.1 million

Average Sales Price of homes sold during 3rd quarter: $ 1.0 million

Average Price per Sq. Ft. for Properties Sold during 2nd Qtr:   $ 467 per sq. ft.

Properties sold at an average of 94% of List Price

For more information on buying or selling real estate in the Los Verdes area of  Rancho Palos Verdes visit my website at http://www.maureenmegowan.com

The Crest area of Rancho Palos Verdes and Rolling Hills Estates ( Area 174 in map below )had the following real estate market activity for single family residences during the 3rd Quarter of 2009 :

Properties Sold: 10

Address                           Sales Price BR BA  Sq.ft.$/Sq.ft Yr.Blt. MLS#  Sold Date  Days on Mkt.

28604 Meadowmist Drive $850,000 4 2.00 2,090 $407 1967 V09065991 7/31/09      29

29435 Whitley Collins DR $901,000 4 3.00 2,374 $380 1963 V09058966 7/29/09     40

29642 Stonecrest Road    $910,000 4 3.00 2,374 $383 1963 V09059505 8/03/09     49

28710 King Arthur CT       $985,000 4 2.00 2,044 $482 1968 V09033865 7/07/09   100

29007 Firthridge RD       $1,015,000 4 3.00 2,575 $394 1967 V09044907 7/10/09    58

28402 Quailhill DR         $1,080,000 4 3.00 2,366 $456 1969 V09039364 8/19/09    98

5653 Sunmist DR           $1,099,000 5 3.00 2,468 $445 1965 V09070984 9/25/09    83

29604 Stonecrest Road   $1,140,000 5 3.00 2,468 $462 1963 V09064915 8/28/09    41

29501 Oceanport RD       $1,280,000 4 3.00 2,448 $523 1964 V09022607 8/11/09  112

28805 Covecrest DR        $1,299,000 5 4.00 2,366 $549 1967 V09042181 7/17/09   44

Properties for Sale as of 9/30/09: 8

Average List Price at 9/30/09:  $ 1.2 million

Average Sales Price of homes sold during 3rd quarter: $ 1.1 million

Average Price per Sq. Ft. for Properties Sold during 3rd Qtr:   $ 448 per sq. ft.

Properties sold at an average of 97% of List Price

For more information on buying or selling real estate in the Crest area of Rolling Hills Estates and Rancho Palos Verdes visit my website at http://www.maureenmegowan.com