The following is my quarterly report for the second quarter of 2010 for the South Bay and Palos Verdes Peninsula Real Estate Market
The real estate market for the Palos Verdes Peninsula and Beach Cities continued to be very active in the second quarter 2010, with sales volume up substantially compared to the prior year.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 theirhomes to sell.
Lower priced homes are moving briskly with buyers taking advantage of significant discounts and record low interest rates. New tax credits were also great incentives to new Buyers during the second quarter .
Properties on average, in the South Bay are selling for approx. 97% of list price. The average price per sq. ft. for homes sold in the second quarter 2010 compared to the second quarter 2009, has increased in almost every market in the beach cities. 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.
2nd Qtr 2010 Sales Price Per Sq. Ft.
2nd Qtr 2010 # of Houses Sold
Change from 2nd Qtr. 2009 Sales Price Per Sq. Ft.
Change from 2nd Qtr. 2009 Sales Volume
|Palos Verdes Estates||$549||54||1%||125%||
Months of Inventory
|RPV, RHE & PVP||440||94||(5%)||34%||5|
The total inventory of single family homes for sale in the cities listed above is significantly lower compared to the prior year. 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 homes.
MY NEW LISTINGS
I have 4 new listings for terrific homes on the Palos Verdes Peninsula which can be viewed at http://www.palosverdesliving.com
WHAT IS A SHORT SALE?
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.
If you know someone who may need some help please 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 . I have also posted detailed market reports below for each of the neighborhoods on the Palos Verdes Peninsula which lists the homes sold in each neighborhood during the 2nd Quarter of 2010.
The Federal government's $8,000 tax credit for first time home buyers and $6,500 home buyer's credit for existing homeowners expired 4/30/2010. California introduced a tax credit of up to $10,000 for first time and new home homebuyers closing after 5/1/2010, however these funds have run out for the first time buyer. The Federal Government offers substantial tax credits for qualifying energy saving expenditures.
Conforming Loans ($417,000 and below) are at approx. 4.25 %. 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. 5.5-5.75%. 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. 4.375%. All rates quoted above are as of 7/31/2010
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.