Following is my 3rd Quarter 2010 Real Estate Market Report for the Palos Verdes Peninsula and South Bay Los Angeles Beach Cities:
ClLICK ON THE MARKET REPORT DESIRED BELOW:
Palos Verdes Peninsula 2010 Nine Months Market Information
2010 Third Quarter Market Report Palos Verdes Peninsula and South Bay Single Family Homes
The real estate market activity for the Palos Verdes Peninsula and Beach Cities slowed in the third quarter 2010, with sales volume down 8% compared to the prior year. This decrease is generally attributed to the expiration of Federal and California tax incentives to purchase homes as well as ongoing consumer concerns about the economy. 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. Lower priced homes are selling, with buyers taking advantage of significant discounts and record low interest rates.
Properties, on average, in the South Bay are selling for approx. 97% of list price. The average price per sq. ft. for South Bay homes sold in the third quarter 2010 compared to the third quarter 2009, increased approx. 4% overall but varied city by city. The median price of homes in Los Angeles County has been increasing lately due to an increase in the number of more expensive homes being sold because of the improving market for jumbo loans.
INVENTORY - The total inventory of single family homes for sale in the cities listed above is significantly higher compared to the prior year but still averages only 5 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 in the higher priced markets have also been selling faster than the higher priced
Interest rates for Conforming Loans ($417,000 and below) are at approx. 3.9 %. Rates for loans between $417,000 and $729,750 (conforming jumbos) are just slightly higher. 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 $729,750) have decreased substantially over the last several quarters to an average rate of approx. 4.9-5.1%. Jumbo loans require a higher down payment of 25 to 30%. 7 year variable rate loans are available for jumbo loans at rates of approx. 4.25%. All rates quoted above are as of 10/15/2010, and assume a 1 point fee and a FICO score of at least 700.
Third Quarter 2010 Market Analysis for Palos Verdes Peninsula Condos and Townhomes
As far as picking up condos in this market for less than construction costs, the average price per sq. ft. paid recently for condos and townhomes in Palos Verdes has been approx. $355 per sq. ft. I would not consider this price to be significantly less than replacement cost including the cost of the land. Homes in this area have fallen much less than other areas because there has been so little new construction here, and much fewer foreclosures than in many other areas. This market is now considered a stable market by loan underwriters.
The following is a chart of condos and townhomes for sale and sold the last two years:
Over the last 6 months, an average of 13 units have sold each month and there are currently 56 units for sale, which is only a 4 month inventory and the number of units for sale is actually down significantly over the last two years from it's peak of 82 homes for sale 2 years ago. Because of this, I do not believe that there will be any significant, if any, drop in prices over the near term. With record low interest rates, and the fact that the spring and summer sales season is coming to an end and sellers are now very anxious to do a deal, I really believe that now is an incredible opportunity to buy in this market.
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: Palos Verdes - Townhomes / Townhouses and Condos . This will give you a good idea of what is available in your price range.
For more information about Palos Verdes and South Bay Real Estate and buying and selling a home on the Palos Verdes Peninsula, visit my website at http://www.maureenmegowan.com . I try to make this the best real estate web blog in the South Bay Los Angeles and the Palos Verdes Peninsula. I would love to hear your comments or suggestions.