Maureen Megowan's Blog

The kelp beds of Rocky Point off of the Lunada Bay area of Palos Verdes Estates will remain open to fisherman based on a decision of a state panel selected to enforce the Marine Life Protection Act . The panel had selected a compromise plan that had taken into consideration proposals from groups representing both the fisherman as well as conservation groups.

The popular fishing area near Rocky Point would remain open under the latest Blue Ribbon Task Force proposal. (Steve McCrank/Daily Breeze Staff Photographer)

The panel did vote to include areas including portions of  La Jolla, Swami's Reef, Malibu  and Santa Catalina Island, Rocky Point was excluded . Rocky Point is a productive area and receives significant fishing pressure, but closing it to fishing would have dealt an economic blow to Redondo Sportfishing and other landings, and might have caused private fishing boat owners to pull their vessels from King Harbor.

for Daily Breeze

Additional information on this issue may be found at www.easyreadernews.com/story.php?StoryID=20035366 . The plan still must be approved by the California Fish and Game Commission, which will convene on the issue next month.

The Congress recently passed an extension of the increased loan limits passed last year, which increased the limits on the amount of a loan funded or guaranteed by the FHA or Fannie Mae and Freddie Mac in certain high cost areas such as California from the previous $625,500 limit to $729,750. These limits are based on 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost areas. The new limits have now been extended through 2010.  The higher limits had been set to expire at the end of 2009 returning back to $625,500.

These increases created a new range of loans called "Super Conforming Loans" or " Conforming Jumbos" from $417,000 to $729,750 (in some cases limited to an upper limit of $625,500). These loans are generally priced only an eighth of a point higher than conforming loans under $417,000.

Jumbo loans in excess of these limits are currently available at rates of aprox. one half point higher.

Interest rates for conforming and jumbo conforming loans are now available for rates of less than 5%.

The President has signed into law an extension of the $8,000 first time home buyers credit which also added a new $6,500 tax credit for existing homeowners buying a new principal residence.  The details of the new law are as follows:

For homes purchased between between January 1, 2009 and April 30, 2010:

1) The credit is 10% of the homes purchase price, limited to $8,000, and does not have to be paid back (unless the property is sold within 3 years - See #7 below).
2) The credit is limited to first time home buyers and principal residences. Any home that will be used as a principal residence will qualify for the credit, provided that if the home is purchased after November 6, 2009 it must be for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.
3) The definition of first time home buyer is someone who did not own a principal residence within 3 years of the date of closing of the new purchase.For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
4) The credit is only for a limited time. The contract date of the sale must be between January 1, 2009 and April 30, 2010. However, the law also allows home sales occurring by June 30, 2010 to qualify, provided they are due to a binding sales contract in force on or before April 30, 2010.
5) Income limits for phase out of Tax credit
a)To receive the full credit, for sales through November 5, 2009, single taxpayers must have earned (modified adjusted goss income)  less than $75,000 and married taxpayers must have earned less than $150,000. The tax credit is phased out proportionally for taxpayers who exceed these income limits by up to $20,000. The credit is zero at an income level of $95,000 for single taxpagyers, and $170,000 for married taxpayers.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
b) For sales occuring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $125,000 for single taxpayers and $225,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
6)  The credit is a "refundable credit", which means the credit is deducted from the taxes owed, and if the net result is less than zero, the amount is refunded to the taxpayer. Therefor, even if you pay no taxes, you will receive the credit which will be paid to you. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
7) The buyer must hold the property for at least 3 years or the tax credit wil have to be returned (exceptions are for sale due to death or divorce ).
8) Those people who took advantage of the $7,500 first time home buyers credit in 2008, must still pay the credit back over a 15 year period.
9) Two unmarried individuals buying a principal residence may allocate the credit "in any reasonable manner"
10) The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009  as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year´s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount. Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this. Therefor, you can choose the year that yields the largest credit amount.
11)Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.

Federal Tax Credit for qualified move-up buyers ( not first time home buyers): 

1) The tax credit is for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).and is equal to 10 percent of the home´s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
2) The law defines a tax credit qualified move-up home buyer ("long-time resident") as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
3) The income limits are the same as for the $8,000 first time home buyers credit described above for homes purchased after November 6, 2009.
4) The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009  as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year´s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount. Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this. Therefor, you can choose the year that yields the largest credit amount.
5)Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.

**NOTE: The information contained at this site is for educational purposes only and is not intended for any particular person or circumstance. A competent tax professional should always be consulted before utilizing any of the information contained at this site.**

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.

Your feedback and referrals are greatly appreciated. Referrals are the backbone of our business. If you agree that we are knowledgeable professionals, with your best interest at heart, we would appreciate your referral to friends, family and colleagues. We treat all our clients like family, building lifelong relationships.

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