Friday, November 16, 2012

October Sales Strong as Demand Outstrips Supply | PV Brokers

Demand for homes continues to ramp in Palos Verdes as inventory remains scarce.  PV Brokers is forecasting strong first quarter home sales as pent up demand meets new supply.  We anticipate strong home sales toward the end of the first quarter with follow-through into late spring 2013.  Further, we expect home sales volume to remain flat through the end of 2012. 

Palos Verdes real estate statistics for October 2012 again indicate a solid market.  55 Palos Verdes houses sold in October which is a slight decrease from the 58 homes that sold in September.  Pending sales are way up in October with 72 Palos Verdes single family homes pending compared to 56 in September.  The number of active Palos Verdes homes for sale in October decreased to 152 homes compared to 171 homes in September.  Our inventory of homes for sale is the lowest in recent memory.  As you can see by the chart above, in October we had 37% less active Palos Verdes homes for sale compared to October 2011 yet the number of sales through the 3rd quarter of 2012 increased to 470 homes compared to 428 homes sold through the 3rd quarter of 2011. 

Price per square foot for Palos Verdes houses that sold/closed escrow in October increased to $501 from $466 in September.  Average sales price for Palos Verdes homes sold in October decreased slightly to $1,322,000 from $1,332,000 in September.  Average days on market in October fell to 83 days from 100 days in September for properties sold that month.  Months of inventory (months it would take to sell existing inventory at the current rate of sale) decreased slightly to 2.8 months for October compared to 2.9 months in September.  A “normal” market is considered 6 months of inventory and Palos Verdes real estate “months of inventory” is substantially less than that indicating the strength of our local market . 

Presently, there are 149 single family Palos Verdes homes for sale.  111 Palos Verdes houses are in escrow (54 homes have pending sales and 57 homes are accepting backup offers).  Additionally, 6 homes have sold/closed escrow in the first 8 days of October.

 

                       

 

Can Mortgage Rates Go Even Lower? | PV Brokers Residential Report

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Are Mortgage Rates Headed Even Lower?  
Today's Mortgage rates are the lowest on record. However, by key historical measures, they should be even lower.  During  the past year, a large gap ripped open between the mortgage rates that house hunters se, and a benchmark interest rate investors demand to buy bonds backed by home loans.
In normal times, this obscure metric would only be of interest to bankers, brokers and traders of mortgage-backed securities. But with housing still dragging on the economy, the spread is potentially slowing the recovery—and important to everyone from top Washington policy makers to strapped homeowners who could use a few extra dollars each month.

For months, a key interest rate on mortgage-backed securities—known as the current coupon yield—has tumbled faster than average U.S. 30-year mortgage rates.  In recent weeks, the difference between the two has flirted with levels seen in the aftermath of the financial crisis.
Experts say this wide spread shows the large banks that dominate the mortgage market are flexing their muscle by keeping prices relatively high. Others argue the gap reflects increased regulatory costs, risks and new realities of mortgage making.
Regardless, this gap is wide. Tuesday afternoon, it was 0.96 percentage points—almost double its average over almost 30 years. It has been as high as 1.20 percentage points this year.

"What it tells us is that traditional monetary-policy measures to help get the housing market rolling again…are weaker than they normally would be," said Columbia University's Frederic Mishkin, a former Fed governor.
Efforts by the Federal Reserve and others to boost housing hinges on the mechanics of the banking system to pass along savings and benefits to consumers. The wide spread between the mortgage rates and mortgage-backed bonds suggests the gears of that mechanism are gummed up.
"This is not a rounding error, this is something to take note of," said Susan Wachter, a professor of real estate and finance at the University of Pennsylvania's Wharton School.

To be sure, consumers are seeing the lowest rates in several generations already. The 30-year fixed mortgage rate averaged 3.87% for the week ended Thursday, down from 5% the previous year. That is the lowest in Freddie Mac's survey data, which stretches back to 1971.
If history is any guide, it should be a lot lower. With yields on mortgage-backed securities at these levels, the 30-year fixed rate mortgages would be roughly 3.40% if the spread was around its historical average of 0.50 percentage points.
That rate would save a U.S. homeowner with the average outstanding loan balance of $155,000 about $41 in mortgage payments each month, versus the current rate.
Over the seven-year period someone usually holds a 30-year mortgage, that translates into a roughly $3,446 difference, according to numbers provided by trade publication Inside Mortgage Finance.  Wider spreads generally translate into better margins for banks and brokers. And some lenders have seen profitability on mortgage origination improve as the spread has widened.

Some mortgage-finance observers suggest that increased concentration among the large banks that dominate the mortgage market better helps explain the wide spreads. They argue that because there are fewer banks doing the bulk of the mortgage lending than in years past, it is easier for them to capture market share without offering rock-bottom prices.
"It's a lack of competition. We really haven't seen a competitive marketplace since 2008," said Guy Cecala, publisher of Inside Mortgage Finance.
In 2011, the top five banks had a hand in 59% of the mortgage loans packaged into government-guaranteed mortgage-backed securities, up from 45% in 2004, according to Inside Mortgage Finance. Recently, major banks have cut down on their mortgage business sharply.
Bankers push back against any notion of oligopoly.
"The mortgage business is extraordinarily competitive," said Franklin Codel, head of mortgage production at Wells Fargo Home Mortgage.
There are other factors at work. For one thing, fees charged to lenders by government-controlled mortgage-finance companies Fannie Mae and Freddie Mac are set to rise this year. The increases paid for the payroll-tax break passed by Congress in December.

Analysts stress it is difficult to disentangle how much of the spread is due to pricing power from banks with more control of the market, and how much might represent structurally higher costs of doing business in the U.S. mortgage market reshaped by the crisis.
Banks and mortgage lenders point out that costs of underwriting loans—conducting the detailed scrutiny of financial statements and employment background—has gotten more expensive and time consuming.
In part that reflects the experience of some banks, which have been forced by Fannie and Freddie to buy back loads of loans that soured, making them more cautious. Others say Fannie and Freddie have grown much tougher over the documentation they accept on loans.



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Friday, August 17, 2012

Palos Verdes Home For Sale | 5657 Mistridge Drive, Rancho Palos Verdes

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bart cleveland
 | (310) 872-0778

5657 Mistridge Dr, Rancho Palos Verdes, CA

4BR/4.0BA Single Family
offered at $1,225,000
Year Built 1968
Sq Footage 2,880
Bedrooms 4
Bathrooms 4.0
Floors 2
Parking 3
Lot Size 10,225 sq ft
palos Verdes Real Estate for
see additional photos below

additional photos

Contact info:

 bart cleveland
bart cleveland
(310) 872-0778
Posted: August 17, 2012

 

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PV Brokers provides residential real estate services in the Los Angeles County South Bay communities of Palos Verdes Estates, Palos Verdes Peninsula, Rancho Palos Verdes, Rolling Hills Estates, Rolling Hills, Redondo Beach, Hermosa Beach, Manhattan Beach, Torrance and San Pedro. As a boutique Realty, our Palos Verdes Real Estate agents and palos verdes brokers are committed to giving our clients specialized service and attention. For more information on Palos Verdes real estate, palos verdes homes for sale, palos verdes foreclosures, homes for sale in Palos Verdes, palos verdes market information in addition to quality information on homes for sale, visit www.pvbrokers.net .

                             

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Tuesday, August 7, 2012

Palos Verdes Real Estate Shows Continued Strength | June 2012 Update

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Palos Verdes Real Estate Shows Continued Strength

Palos Verdes real estate continues it's march higher.  June 2012 data show more of the same good numbers we have experienced the last several months.  Although we are seeing typical seasonal strength heading into the school year, there appears to be significant pent up demand.  Our research indicates that we could continue to show strong demand through 2012.  Shortening average days on market demonstrates this pent up demand as we are seeing multiple offer situations on a regular basis.

There was a total of 71 Palos Verdes homes sold in June .  This is a considerable increase from the 56 homes that sold in May and is the highest number of monthly sales in recent memory.  Pending sales in June increased to 67 from the 55 Palos Verdes single family homes pending in May.  The number of active Palos Verdes homes for sale in June rose to 196 homes in June from 182 homes in May.  This inventory is a welcome surprise  as inventory of homes for sale has remained low for the past 7 months.  Average days on market continues to decrease. Average days on market in June fell to 87 days from 104 days in May for properties sold that month.

Palos_verdes_real_estate_chart

The average sales price for Palos Verdes homes sold in June is exactly the same as May – $1,447,000.  Price per square foot for Palos Verdes houses that sold/closed escrow in June decreased to $473 from $493 in May.  Months of inventory (months it would take to sell existing inventory at the current rate of sale) decreased to 2.8 months for June compared to 3.3 months in May.  A “normal” market is considered 6 months of inventory – Palos Verdes real estate months of inventory is less than half of a “normal” market indicating the strength of our local market .  

At present, 189 single family Palos Verdes homes are active.  110 Palos Verdes houses are in escrow (51 homes have pending sales and 59 homes are accepting backup offers).  In addition,  7 homes have sold/closed escrow in the first 12 days of July.  This can be attributed to the Fourth of July holiday as escrow closings slowed.

Please call us for any of your real estate needs in Palos Verdes, Torrance, Manhattan Beach, or anywhere in the South Bay. We are experts in Manhattan Beach Real Estate and have extensive knowledge of the Palos Verdes Real Estate Market

 

 


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Monday, June 18, 2012

Palos Verdes Real Estate Continues Recovery | May 2012 Update

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Palos Verdes Real Estate Continues Recovery

 

South Bay and Palos Verdes real estate continued its recovery as it enters the seasonably slow early summer months.  If June and July housing numbers show similar strength, it will ne a very good indication that we are in a sustained recovery.  May 2012 Palos Verdes real estate agents' statisticsreflect more of the same growth we experienced last month.  55 Palos Verdes houses sold in May which is exactly the same as April.  May pending sales are just about the same as April – 63 homes compared to 64 in April.  The number of active Palos Verdes homes for sale in May rose just 4 homes to 182 in May from 178 homes in April.  As you can see from the chart above, inventory of homes for sale has been flat for the last 6 months indicating a high demand for homes in the Palos Verdes area.

The average sales price for Palos Verdes homes sold in May increased to $1,439,000 compared to $1,369,000 in in April.  Price per square foot for Palos Verdes houses that sold/closed escrow in May also increased to $494 from $486 in April.  Average days on market in May was 106 days which was more than the 90 days in April for properties sold that month.  Months of inventory (months it would take to sell existing inventory at the current rate of sale) was to 3.3 months for May which was just about the same as April which was 3.2 months.  A “normal” market is considered 6 months of inventory – so we are experiencing better than normal in this area. 

Presently, there are 196 single family Palos Verdes homes for sale.  There are 114 Palos Verdes homes in escrow (55 homes have pending sales and 59 homes are accepting backup offers). In addition, 24 homes have sold/closed escrow in the first 11 days of May with the average sales price of $1,564,742.

Palos Verdes real estate chart May 2012 showing active, pending and sold Palos Verdes homes 90274 and 90275

 

California Real Estate Market Update

California home sales and prices rise in May Sales jump 17.6% year over year, while the state's median home price hit $270,000, rising 8.4% from May 2011.: Home sales and prices strengthened throughout California in May, providing the latest evidence that housing might be snapping out of its long slumber. Sales popped 9.3% from April and jumped 17.6% from May 2011 to total 41,790 new and previously owned houses bought statewide, according to real estate research firm DataQuick of San Diego. The state's median home price hit $270,000, rising 2.3% from the prior month and up 8.4% from May 2011. "It's not exactly a stampede, but people are starting to move off the housing market sidelines in numbers we haven't seen in quite a while," DataQuick President John Walsh said. "And it's not just first-time buyers and investors. There are more move-up buyers in mid- to high-end coastal counties." Home sales in the Golden State have posted year-over-year gains for 10 consecutive months, and foreclosures have steadily been making up a smaller share of the market. Sales of distressed homes made up 46.2% of the market, the lowest figure since April 2008.  

Economic and Interest Rate Outlook

Economic data released in the U.S. last week offered little enthusiasm for U.S. growth prospects. The Import Price index fell -1.0% as expected. The Producer Price Index declined and did so at a greater clip than expectations (-1.0% vs. -0.6%). In addition, the Consumer Price Index fell more than expected (-0.3% vs. -0.2%). All fueled speculation that the Fed could ease again as inflation does not appear to be a threat. Initial Jobless Claims rose to 386k against expectations for a small decline to 375k. June Empire Manufacturing was very weak (2.29) especially when compared against expectations it would drop from 17.09 in May to 12.50. Industrial Production fell -0.1% vs. expectations for an increase of 0.1% and Capacity Utilization ticked lower to 79.0%. Finally, Consumer Confidence fell more than expected (74.1 vs. 77.5.).

The summer of 2012 does not seem to be turning out much better than last year. We are still watching a slow-moving train wreck in Europe which now is having a growth impact in the U.S. A positive (pro-austerity) Greek vote could calm things for a while but the big sovereign debt issues remain whether or not Greece stays in the Euro or not. This week, all eyes will remain focused on Europe in addition to: Housing Starts, Building Permits, Existing Home Sales, Initial Jobless Claims, Philadelphia Fed Index, and an FOMC meeting with their statement released on Wednesday.


 

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PV Brokers provides residential real estate services in the Los Angeles County South Bay communities of Palos Verdes Estates, Palos Verdes Peninsula, Rancho Palos Verdes, Rolling Hills Estates, Rolling Hills, Redondo Beach, Hermosa Beach, Manhattan Beach, Torrance and San Pedro. As a boutique Realty, our Palos Verdes Real Estate agents and palos verdes brokers are committed to giving our clients specialized service and attention. For more information on Palos Verdes real estate, palos verdes homes for sale, palos verdes foreclosures, homes for sale in Palos Verdes, palos verdes market information in addition to quality information on homes for sale, visit www.pvbrokers.net.


Bart Cleveland
Broker
PV Brokers Residential
(310) 872-0778
"Where Integrity Meets Experience"
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