Third Quarter 2008 Palos Verdes and South Bay Real Estate Market Update

The mortgage meltdown and huge volatility in the stock markets (the Dow down 2,400 points in one week, then up nearly 1,000 points another ) has obviously had a significant impact on the sale of homes. The average price per sq. ft. for homes sold in the third quarter 2008 compared to the peak in the third quarter 2007, has fallen much less in the South Bay beach cities, however, than in most markets in Southern California , especially on the PV Peninsula and Manhattan Beach & Hermosa Beach.

For most of the last two decades, Los Angeles County has averaged an 8 month inventory, therefore for most of the South Bay; the number of months of inventory is not unusually high. Properties, on average, in the South Bay are selling for approx. 96% of list price. For detailed Market Reports by submarket / neighborhood, visit my website.Communities where homes were primarily financed with no down payment variable rate loans, have seen the most loan defaults and resulting price declines, such as San Bernardino, where median home prices are down 40% compared to a year ago.

WHAT ARE MORE IMPORTANT LOWER PRICES OR LOWER INTEREST RATES? Hypothetically, if a homes price fell an additional 10% from $500,000 to $450,000, but interest rates went up 1% point, your mortgage payment would be the same. Any advantage gained by waiting for prices to fall can easily be offset by a rise in interest rates. Inflationary pressures continue to increase, due to increases in gas and food prices. With increased inflation, come higher long term interest rates.

How can you get prepared to buy or sell in this market?

Hire a Realtor with strong internet presence both locally and across the country. Dont miss this very important sales tool. Most buyers begin their search on the internet today.

Maximize your homes best attributes for an optimal selling price and fewer days on the market. Use my website which is filled with ideas to get your home ready, or it can be professionally staged. Email or call me with questions. If you are thinking of selling your home, now may be the best time in the foreseeable future to list your property for sale, while interest rates are low. Qualified buyers are definitely out there and activity has picked up substantially since mid September. In 2009, with a new administration, new tax reform measures may be passed, the market may continue to cool and interest rates may rise.

Go to https://rightreligion.stellarwp.site for the most up to date real estate and local information available!