WEB BLOG (http://activerain.com/blogs/mmegowan) My web blog is where I discuss the latest news on the real estate market and other interesting facts about the Palos Verdes Peninsula. I have also posted detailed market reports for each of the neighborhoods on the Palos Verdes Peninsula which lists the homes sold in each neighborhood during the 1st Quarter of 2010. We appreciate your feedback and comments on my postings. Come join us.

INVENTORY - 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.  The number of months of inventory of homes in the South Bay has shrunk significantly in the last year. 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.

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.

TAX INCENTIVES:     

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. To see the remaining funds available for the new home homebuyer credit, go to http://www.ftb.ca.gov/individuals/new_home_credit.shtml.The Federal Government offers substantial tax credits for qualifying energy saving expenditures.

 For more info, visit the following link on my website: Income Tax Issues

FINANCING   (See our web blog for rate updates):

BUYERS AND SELLERS TAKE HEART! There is financing available for well qualified buyers. Interest rates remain near historical lows, however as the economy improves, rates are expected to move upwards. 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 ( FICO scores above 740), an adequate down payment of 20% or more 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 ($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%. The interest rate spread between 30 year fixed rate conforming loans and Jumbo 30 year fixed rate loans is approx. 1.25% to 1.5%.  Jumbo loans also 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%.