New Hollywood Riviera Listing coming soon.

I have a new listing coming on Sunday, June 29th, 2008 in the lower Riviera that backs up to El Retiro Park. No pictures yet, but I can tell you that it is remodeled and ready to move in now. Walk to the village too! Under a Million. Co-Listed withy Shar. Call me if interested at 310 346-0391.
See all Hollywood Riviera Listings at http://HollywoodRivieraRealEstate.com .

FED keeps rates the same

The FED decided to keep the FED FUNDS rate unchanged today at 2%. The inflation rate is a major concern, but to raise rates now would not be a good idea with the economy so weak and consumer confidance so low because of rising gasoline and food prices.

Interest Rate Update - FED

The Federal Reserve lowered its key interest rate by one-quarter percentage point but also signaled the seven-month easing cycle may be coming to an end. That brings the federal funds rate down to 2 percent and the discount rate down to 2.25 percent.

This could be the end to the declining interest rate cycle, if only because the FED now has to worry about our declining dollar, which is not helped by lowering rates. Inflation is now also a concern. We will see how all this plays out in the coming months.

The graph says it all...

Back in March of 2007, there were 1189 active listings, 353 homes in escrow and 464 sold... Now, fast forward to March of this year - 2008. There were 1558 active listings, 214 in escrow and 213 closed sales. In other words there were twice as many sales this time last year!

If you are looking to buy a home, now is the time. There is a lot to choose from on the market and deals to be made. Interest rates are very low historically and probable readt to start up soon. Call me for expert help, whether you are buying or selling.

Luxury Townhome in So. Redondo Beach FOR SALE

FOR SALE:

1206 S. Catalina Ave, Redondo Beach, CA., 90277

$1,195,000

This is a beautifully maintained Townhome walking distance to the Ocean, Riviera Village and Pier. It has two bedrooms on the street level and the master is on the 2nd level on the Living area. Up one more set of stairs is the mezzinine office area with access to one of the 3 balconies. This is a must see if your goal is to live near the water.

Call me for a private showing.

New Listing in El Segundo

For Sale: A beautiful Condominium located at

815 Main Street #302, El Segundo, CA., 90245

$509,000.

2 BR, 1 3/4 Bath in 1145 Sq. Ft.. Decorator perfect with remodeled kitchen with black granite counter. Master has walk in closet. Smooth ceilings throughout. This property is very open and bright with skylights in the 2 bathrooms. Elevator, Pool, and Spa. 2 parking spaces and generous storage in the gated subteranean parking. A must see!

Call me for a private showing.

FOMC Cuts Fed-Funds Rate by 1/2 Point

At about 11:15 pacific this news came out:
"The Federal Reserve lowered its key federal-funds rate by one-half percentage point, to 3%, capping an unprecedented eight-day period in which officials slashed rates massively to ward off recession risks. Officials signaled they're willing to ease still further in coming weeks. But they also suggested that the recent cuts may be enough to keep the economy on track. The vote was 9-1; Dallas Fed President Richard Fisher dissented, preferring no rate change."
WSJ.com

If congress also approves raising the conforming loan limits that could really help the housing industry in 2008, by refinancing to low rate 'fixed' loans.

New Listing in So. Torrance at 22420 Warmside Ave, 90505

SOLD in 5 days

South Torrance, area 129, has it all. This newly listed remodeled home is one of the nicest properties in the area. It will be open both days this weekend, Jan. 26th & 27th from 1 - 4pm. It has 3 Bedrooms, 1 bath and a 6500 sf view lot. Walk to beach. Excellent Torrance Schools. $809,000. call for info... 310 346-0391

Recession...

Everywhere we turn lately everyone is worried that we are headed into a recession. Here is the problem, by the time the government economists admit to it, we are already on the mend! The main problem with predicting a recession is that it all comes as a result of 'lagging indicators'. You know as well as I do, the government puts out statistics every month that immediately makes the stock market react and then a month later changes the previous months numbers to reflect something they forgot. How can we ever trust anything we read anymore?

I am going to cut to the chase! WE ARE ALREADY IN A RECESSION. Unemployment is going up, real inflation is up (just look at the price of gas, which is not included in the inflation stats) , consumer buying is down, car sales are down, and housing has slowed dramatically. Anybody agree with me?

Does a recession mean hard times? Not necessarily. Thankfully, the Fed has finally realized that they over did the interest rate hikes during the last two years and have to lower them even faster now. (Again, they raised rates based on "lagging inflation indicators'. I hope they learn their lesson this time.) We can look for rates to go down another full point during the next 6 month. Look for FED FUNDS rate to fall to about 3%.

Remember the old saying: " A recession is when a friend loses his job... A depression is when you lose your job"!

Nationwide Existing Home sales figures

"Existing-home sales managed a 0.4% gain during November, the first increase in nine months, but prices tumbled. Home resales rose to a 5.00 million annual rate, up from October's revised 4.98 million annual pace, the National Association of Realtors said. The median price of a previously owned home was $210,200 in November, down 3.3% from $217,300 in November 2006. Inventories of homes fell 3.6% at the end of November to 4.27 million available for sale, which represented a 10.3-month supply at the current sales pace." (WSJ)

Mortgage Forgiveness Act of 2007

Mortgage Forgiveness Act Signed into Law Yesterday, President Bush signed H.R. 3648, The Mortgage Forgiveness Act of 2007, into law, sparing homeowners the tax burden associated with canceled mortgage debt.

Prior to this action, forgiven mortgage debt due to foreclosure, short sale, or deed in lieu of foreclosure, was considered taxable income. The new law, however, temporarily waives these taxes for debts forgiven (as high as 35%) from the beginning of 2007 to the end of 2009. The bill also extends the tax deduction for mortgage insurance premiums through 2014.

"This is going to make a happy holiday for many homeowners," President Bush said yesterday before signing the bill in to law. During the press conference he added the following:
"When you're worried about making your payments, higher taxes are the last thing you need to worry about. So this bill will create a three-year window for homeowners to refinance their mortgage and pay no taxes on any debt forgiveness that they receive. And it's a really good piece of legislation.
The provision will increase the incentive for borrowers and lenders to work together to refinance loans – and it will allow American families to secure lower mortgage payments without facing higher taxes."

"There's more work to be done," Bush added, saying that Congress needs to pass legislation to strengthen Freddie Mac and Fannie Mae, to modernize FHA, and to allow the government to issue tax-exempt bonds for refinancing existing home loans.

The Fed.. Here we go again!

Most people you ask have no idea what the Federal reserve does. Sure, we know they meet once a month or so and raise or lower interest rates but couldn't we just let the market determine that? Why so much big government, always looking out for us, suposedly?
Now they want to impose rules on lenders to safeguard us some more. They are proposing: 1) Barring or restricting lenders from penalizing subprime borrowers — those with tarnished credit or low incomes — who pay their loans off early. 2) Forcing lenders to make sure borrowers set aside money to pay for taxes and insurance. 3) Barring or limiting loans that do not require proof of borrower's income. 4) Setting new standards for how lenders determine a borrower's ability to repay a home loan. All of this seems like common sense to me.
I am a firm believer in the free market. I don't think the Fed making new rules solves anything. I think borrowers have to make their own decisions and Lenders have to qualify people for loans they can afford. Easy credit is a good thing for qualified borrowers, and a bad thing for the non-qualified.
What do you think?

Fed lowers rats again

The Federal Reserve lowered the Fed funds rate (what banks charge each other) by .25 today. That will bring it down to 4.25%. In response, many of the major banks dropped the prime rate to 7.25% which will make homeowners who have HELOC (Home Equity Loans) a little happier.
The Discount rate (what the Fed charges banks for loans) was also lowered, this time by .25% to 4.75%.
It is my opinion that the Fed will have to continue to lower rates for the forseeable future in order to keep our economy moving. Our dollar should start to get stronger in the second quarter of 2008.

Rancho Palos Verdes REO for sale

Welcome to your new home! This home is in the process of being painted inside and out and will be ready for showing soon. It is located at 30170 Avenida Esplendida, Rancho Palos Verdes, CA. 90275 and is on a 12,388 square foot lot with a pool. The house itself has 4 bedrooms, 3.5 baths, Formal Living room, Family room, private master suite and is walking distance to los Verdes Country Club.

The home is about 3300 square feet and has a 3 car garage. It is priced to sell at $1,429,000. It is also in the Palos Verdes School district. Hurry.

Hollywood Riviera Listing

This is a fantastic listing for someone to get into a "Queens Necklace" oceac and city view property in the Hollywood Riviera Section of Torrance.

The home is located at 431 Calle de Castellana, Redondo Beach, CA. 90277 and is almost 2300 square feet. It has 4 bedrooms and 2.5 baths and is situated on a 6600 square foot lot on a very family oriented street. It was built in 1962 and awaits your 'touches' to make it your own. It is priced at $1,185,000.

Fed Cuts rates - but not enough...

The Federal Reserve cut both the Fed funds and Discount rate by 1/4 of a per cent today. That puts the federal funds rate at 4.5% and the discount rate at 5% for the time being. The major banks followed with a cut in the prime rate to 7.5% (This will help anyone who has a HELOC loan immediately that is hooked to the prime).

I believe that the Federal reserve should have cut interest rates at least1/2 point today and really gave a boost to the economy, so personally I was disappointed knowing that the worst of the sub-prime problems have yet to be devulged. But... we all know that the fed tends to be much more conservative with their "cuts" than they are with their increases.. So, we will all be watching 'consumer' numbers as we approach the holiday season to see if consumers keep spending... any blip in consumer numbers will almost guarantee another cut in December.

Buy your home in the South Bay NOW

The idea of "saving my money until home prices come down" has probably become a contradiction in terms -- at least for the foreseeable future. Yes, housing is cyclical but it usually does not go backward for very long, if at all. The additional money you save now probably will not offset the potential appreciation or the fatter monthly payment that could result if interest rates rise.

For example, if a $500,000 home appreciated 5 percent in the next year, could you sock away an extra $25,000 in after-tax savings to counter that gain? This also does not take into account additional tax savings from the mortgage-interest deduction. Or, if the market remains flat and mortgage interest rates rise, will you still even be able to qualify for the home of your choice?
Inman news...

Commercial Office Building for sale in San Pedro

This office building is located at 336 N. Gaffey, San Pedro, CA 90731.

It is available for $2,200,000.

Two story Office Building built in 1990. It has ground parking for 14 cars and security gated subterranean parking for 15 cars. Level 1 approximately 5420 Sq.ft., Level 2 approximately 2215 Sq.ft.. Central Air / Heat with separate meters. Newer roof in 2006. Level 2 currently leased, downstairs to be vacated by Sept. 30th. 12.7 X gross / current cap rate 6.12

Call Jack at 310 346-0391 to find out more.

Fed Half-Point Rate Cut

The Federal Reserve Tuesday sliced one-half a percentage point off the federal funds rate, cutting it to 4.75 percent from 5.25 percent.
It also cut its discount rate by the same amount, also bringing it to 5.25 percent.
The cuts could be a mixed blessing for homebuyers, pushing fixed-rate mortgages higher if inflation worries grow, economists say.
But relief could come in other ways. Consumers should start feeling the impact quickly in the form of reduced payments on home-equity lines of credit, credit cards and some car loans.
There is likely to be little immediate relief for borrowers with many adjustable-rate mortgages because the rates on roughly half of these loans are tied to the London interbank offered rate (LIBOR). Libor recently jumped sharply above the Fed funds rate because of the continuing credit crunch in the markets.
"If Libor doesn't come down, there is no relief" for many mortgage borrowers, says James Bianco, president of Bianco Research LLC, a market-research firm in Chicago.
Source: The Wall Street Journal, Jane J. Kim and Ruth Simon

Conforming loan limits

California Association of Realtors is pushing for swift passage of a bill in the Senate calling for increases in loan limits to match median home prices in California and other high-cost areas and the creation of a new regulator to oversee Government Sponsored Enterprises (GSEs), such as Fannie Mae and Freddie Mac.
Vigorous support helped push the measure, HR 1427, through the House in May, but it has since stalled in the Senate. The bill would raise the current maximum size of a conforming mortgage loan from $417,000 to a capped amount at 150 percent of the national limit or $625,500, allowing low- and moderate-income home buyers in high-cost areas better access to low-cost, low-rate fixed mortgages.C.A.R.
President Colleen Badagliacco was recently quoted in a "San Jose Mercury News" story on the issue, saying that a loan of $417,000 "may buy a mansion in Des Moines but it doesn't buy anything in San Jose."