Would be happy to assist you find a home anywhere in the South Bay - very experienced broker AND fabulous incentives!
Please look at our site and Good Luck!
ManhattanBeachRE.com

Hi Brenda,

If you're qualified for the First Time Home Buyer Tax Credit, then that is pretty good incentive to purchase before the deadline (Nov. 30th, you'll need to be in escrow by approximately Oct. 16th to close in time). Homes are moving now, which potentially may continue to drive prices up. Not to mention that the possibility of interest rates going up some by next year, which will increase your cost even more. My suggestion is if you find something you really like, then "go" for it. Best wishes to you and your significant other on the upcoming ceremony. If you have any questions, then feel free to ask.

Mike Bjork
Mortgage Planner
Direct: (310) 694-3544
E-mail: Mike@MikeBjork.com

Dear Brenda,
If you are in the market to purchase I would not wait. It's actually difficult to purchase a nice property right now because of the multiple offers some homes and condo's are getting . There are Cash buyers in this market who are out bidding everyone!

Redondo Beach had an small increase in home values last month for the first time in quite a while. Some will say it's a sign that we're leaving the bottom while other say it's just a temporary spike relative to interest rates and short sales. It's true that your real estate investment should offer a return on investment (ROI) however it's hard to believe that we'll see the same type of returns of past years (gains as high at 20% year over year - or, for example, I had a property in South Redondo that I flipped in 26 months with a whopping 110% gain in '05). No question that the downturn of home values is better for buyers at this time (less risk of losing valuation after a purchase) and that recovery is eventually on the horizon. That said, you should look at the purchase simply as a living expense... if you and your spouse to be are of the few in today's market that have a good job and can afford a deposit/monthly payment of a home, I would advise NOT to rent. Consider the risk involved in a high margin stock portfolio compared to equity in real estate (which a conservative ROI of approximately 3%). As well, consider the tax benefits of offsetting your interest payments on your income taxes versus paying taxes on income that get paid to a landlord. Personally i feel with the low risk of down side in property valuations, NOW IS THE TIME TO BUY.

An additional thought for newly weds (since I made the plunge myself in November '07), look at duplexes and triplexes for homes. North Redondo Beach has unique zoning and lots of inventory of small investment properties and it's an excellent way to enter the real estate game without a high cash exposure month over month. Feel free to contact me directly if I can help in any way - In fact, I have an open house I'm hosting on a home in North Redondo on Sunday and it may be a good chance to meet.

Hi Brenda,

I'm a real estate agent with Coldwell Banker and am working in the South Bay area. I personally bought my own property last November and I think this is a great time to buy. The interest rates are lower than they have ever been in my 25 years in this business. If you are a first time buyer you can also take advantage of the tax credit up until November 30 this year.

Feel free to call me with any questions you might have.

Gunilla Windon
Coldwell Banker
310-791-6027
gwindon@coldwellbanker.com

Brenda:

The realtors who have answered so far are being far too optimistic. You have plenty of time to find a home as there is no rebound in sight. When we do hit a bottom, the market will drag along that bottom at least a year or more.

What happens if you buy and the market in your purchase area drops another 20%? Is the realtor going to refund that money to you? I don't think so. It means you are essentially stuck there until you appreciate yourself out of the hole.

Look at this graph of where property values have been heading in select markets:
http://blog.redfin.com/chicago/2009/05/26/case-shiller_15_ye…

This graph does not look good for current buyers:
http://www.businessinsider.com/mortgagemeltdown/chart3-13

Plug in your zip codes on this interactive map:
http://www.newyorkfed.org/mortgagemaps/

There has been a definite change in the market in the last several months. Although some of the undesirable homes (due to price or condition) are not moving, we are now seeing buyers competing. We are getting over full price offers and often several offers on a sinlge home. I don't know how long it will take to have the market show signs of strength, but what we are now seeing is definitely positive and should make prices level off.

The big unknown is how many more foreclosure properties will hit the market over the next two years. Hopefully we will see a reduction due to work outs.

I agree with Maureen. If rates go up a little, it will negate a decrease in purchase price. And if both go up, then you will really be affected.


Michael Magaw
310.259.6850
Torrance
M@NHLBrokers.com

Nobody can predict where home prices will go, but I really think that we will look back on this period of time in a few years and realize it was probably the best time to buy a home in our lifetime. Interest rates are still near historical lows, and it is still a good buyers market. If prices go down another 10% ( which I do not believe is likely ), and if interest rates move up one percentage point, any advantage that would have been gained by waiting for prices to drop would have been offset by higher mortgage payments. Add to that the $8,000 Federal tax credit incentives for first time home buyers ( and the $10,000 for new construction for California) that will only be around for another few months make now a great time to buy a home.

I remember when I bought my first home in 1985, our first mortgage was an 11% variable rate mortgage. With the level of government spending, inflation could be just around the corner, which would lead to rapidly increasing interest rates. Try to look at this time from a historical perspective, and you will see this as a great opportunity to buy a home.

I would love to help you in making this decision. My clients know that I have their best interests at heart. Check out their testimonials on my website.

Interest rates.. updated weekly survey of over 250 lenders about rates going up/down/stay the same ...
http://mortgage-x.com/general/rate_trend.asp

Rates offered for each type of loan in each state .... http://mortgage-x.com/x/search.asp

Gov. site for keeping track of mortgage rates and home price index.... http://www.fhfa.gov/

Just fun reading ... http://narblog1.realtors.org/mvtype/president/2009/04/realto…

Dunes

Hi there Brenda, thank you for you question.Nobody really knows what the future will bring. However looking at the facts is usually a wise thing to do.
I am not sure if you will be needing a mortgage for your new home but if you you do the important thing to look at is the interest rates. The recenty went up 1/2% which is a substantial increase. The higher the rate goes the less buying power you will have. Typically as the economy slowly starts to rebound typically the interest rates increase. Althogh the interest rates are still are record low levels 5-6% they hopefully will not go back to 18-19% like they were in late 80's and early 90's
Another consideration to weigh up are the government incentives for first time home buyers. $ 8,000 tax credit.
The inventery now still is considered stable. If this drops the demand will be higher and this will drive the prices up. Most of the bank owned properties in the zip codes that you may mentioned receive multiple offers and many are all cash.

There was an article posted today, link below.

http://finance.yahoo.com/news/Pending-home-sales-rebound-in-…

There are some really great deals out there for the motivated and savvy buyer who is in tune with the market. It would probabaly be a a good idea to know what you will need to have ready should you come across a really screaming deal. I would be happy to sit down with you both and review the CA requirements , the present inventory and answer any questions that you may have , no pressure.

Hope this helps
Kind Regards
Michael Barron
Realtor/MBA
Beach Cities Specialist
First Team Estates
(714) 552-6817

Maybe this will help Brenda.... http://www.dqnews.com/Charts/Monthly-Charts/LA-Times-Charts/…

http://www.dqnews.com/Articles/2009/News/California/Southern…

Dunes

Brenda,

Although nobody has a crystal ball and we really don't know when the "bottom" has hit until we're heading back up, the market seems to be very active over the past month or so. The combination of reasonable home prices now, along with interest rates remaining low, has seemed to motivate buyers that had been sitting on the sideline for several years. Although this jump in sales and pending home sales may be temporary, my advice would be to really focus on what you're ideally looking for and if and when you find it...don't hesitate to act. The overall prices haven't come down to where they may, but there are some great homes on the market with motivated sellers and it's possible to find a purchase a home in the right situation that's priced below market value. There is so much pent up demand that it may not be long before we see both prices and interest rates go up. Best of luck with your upcoming home search. The neighborhoods you're looking in are great areas and in the long run it's tough to go wrong when buying a home in high demand areas.