HHC South Bay Real Estate News

Good Time to Buy a Home in the Beach Cities

admin — Wed, 14 Mar 2012 03:31:56 +0000

The Beach Cities (Manhattan Beach, Hermosa Beach, and Redondo Beach) housing market began to stabilize towards the end of 2011 and this year has started with a bang. Pended sales increased 40.5% from January to February this year, which is a strong indication that the Beach Cities market is heating up. With historic low interest rates still available it is a great time for home buyers to enter the market.

The average sale price in February was $915,000, which was 94% of the list price. This disconnect between what home owners think their house is worth vs. the actual market price mimics what is seen nationwide. However the gap between listing price and sale price is actually narrowing. With less inventory coming to market, we expect the difference between list and sale price to narrow even more until more over the next few months. February saw only 303 homes listed for sale compared to 470 six months ago and 500 beach cities homes for sale in 2011. If you’re looking to take advantage of the historic low interest rates now is the time to buy before prices start to rise due to the difference in demand and number of homes for sale.

Study Reveals 42% of Prospective Homeowners Still Expect Home Values to Increase 7% a Year

admin — Thu, 03 Nov 2011 01:47:30 +0000

A new study by Zillow of prospective homeowners revealed that 42% believe home values will appreciate by 7 percent a year. This despite the fact that home values have steadily declined since the 2008 market crash. It is also in sharp contrast to the historic home value appreciation rate. According to research by Robert Shiller from 1890-2006 US home values appreciated on average 3.7% a year.

Fannie Mae Predicts Mortgage Rates to Remain Low Through 2013

admin — Fri, 21 Oct 2011 15:42:25 +0000

Fannie Mae economists are projecting that demand for home loans will more than double in the next two years. This is in large part due to their prediction that mortgage rates will stay well below 5 percent through 2013. This is certainly welcome news for the real estate market following another tough year this year.

According to the Mortgage Bankers Association demand for home purchase loans is down 12.1 percent from a year ago. Many homeowners and would-be homeowners stated that they are unwilling or unable to get a new loan despite the fact that rates on 30-year fixed-rate mortgages recently dropped below 4 percent for the first time in history. The slowing economy was cited as the primary reason for not being able to take advantage of the low rates. Nearly eight out of 10 mortgage applications for the week ending September 30 were for refinancing – down 5.2 percent from the week before.

Fannie Mae is projecting that 30-year fixed-rate loans will average 4.2 percent for the rest of this year. The first half of 2012 is expected to have similar rates slowly rising to 4.4 percent during the final quarter of 2012 and continuing to rise to 4.6% in 2013.

1544 Stanford Ave. – Redondo Beach Open House Sunday 1-4pm

admin — Sun, 11 Sep 2011 19:42:42 +0000

This beautiful move-in ready 3 bedroom Redondo Beach home is a must see. Stop by this Sunday between 1-4pm and see it for yourself. Click here for the the complete listing details for 1544 Stanford Ave.

California AB 771 Signed by Governor Jerry Brown

admin — Thu, 08 Sep 2011 16:08:38 +0000

California AB 771, which prevents buyers of common interest developments (CID), such as a condominiums or townhomes, from being charged excess document fees was signed into law by Governor Jerry Brown. Homeowner Associations (HOAs) are required to provide documentation about the CID structure, operation, and management of the HOA. This information must be provided to the home buyer at a “reasonable fee,” typically $75-200. However due to a court decision in 2007 HOAs are allowed to delegate the documentation to a third party that is exempt from any fee limits. These third party providers often charge fees as high as $1,000 for a bundle that includes the required documents.

AB 771 addresses this situation by specifying that only fees for the required documents may be charged when such documents are provided, effectively prohibiting any “bundling” of fees for other documents with these fees. The bill also creates a new form detailing which documents are required, and requires the provider to disclose the fees that will be charged for the documents before they are provided. The seller of a CID must complete this form and transmit it to the prospective purchaser along with the required documents. This will eliminate any uncertainty for the prospective purchaser as to exactly which documents are being provided and the precise fees being charged for those documents.