MyMalibuView

Well, yes…eventually…hopefully.  Earlier this week the president signed the economic stimulus package that included a temporary increase in the conforming loan limit for areas with high home prices such as California.  The new law raises the conforming loan limit from $417,000 to $729,750 until the end of the year. Since interest rates generally have been more favorable on conforming loans than on jumbo or super jumbo loans, the increase should entice more buyers back into the slowing market. Theoretically anyway.

Today the average interest rate for a conforming loan according to Bankrate is 5.76% for a 30-year fixed. The question is whether banks will start offering the previously-known-as-jumbo loans at conforming rates right away in anticipation of being able to sell them to the secondary market.  According to a recent statement, Fannie Mae says, “we are working with our regulators and our lender partners to implement the change as quickly as possible.” So we may have to wait and see how the increase plays out in California.

We could see a “trickle up” effect once the ball gets rolling with the new jumbo-turned-conforming loans.  The new loans may revitalize the “low end” of the California market, allowing those homeowners to sell and move up as they become buyers in a higher price category. What’s your view?

I’ve just sold a Single-family property at 7612 Carmenita Lane with a beautiful pool overlooking a city lights view. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

Buyers and sellers need to reach agreement—they must achieve a meeting of the minds—in order for a house to sell. Increasingly, however, it seems that sellers are from Venus, buyers are from Mars. With so much conflicting information in the news these days, it’s easy to see how buyers and sellers can end up with completely different views on the housing market. The situation often leaves a buyer and seller at odds, unable to reach a consensus.  Buyers end up walking away without making purchases; sellers take their properties off the market and wait for conditions to improve.

Buyers hear the daily barrage of bad news about sub-prime mortgages and the housing slowdown. A common response is, “If I just wait a few months, I’ll be able to buy that same house for less. Why pay more to get it right now.” This line of thinking is especially prevalent in
California where home prices are high relative to national averages and bad news abounds. On Friday, Gov. Arnold Schwarzenegger announced things were so bad that he plans to declare a “fiscal emergency” for the state soon.  

Sellers hear a different drum beat. They watch the price of lumber rise, land values appreciate, and building costs soar. They intuitively sense that inflation is heating up. Again today, central banks poured billions into the banking system to bolster liquidity.  Inflating the money supply sooner or later will inflate prices. Sellers respond by pricing their properties higher than recent sold comps. When a house sits on the market, I’ve watched sellers reduce an optimistic asking price to something more reasonable, but most sellers hit a wall when it comes to pricing their properties below recent comparable sales. They simply refuse to go lower.

The disconnect between buyers and sellers may continue until an undeniable trend emerges that everyone agrees on. In the meanwhile, asking prices in prime areas such as Malibu just keep moving upward and, despite all the bad news in the press, buyers are stepping up to the plate and paying higher prices.

Keeping in mind the bigger picture reminds us that interest rates are near historic lows. Couple that fact with motivated sellers and you get a great buying opportunity here and now!

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 This article provides some interesting food for thought in light of the figures at left showing historically strong appreciation in the California real estate market.

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Three reasons to buy a second home

New book focuses on finding and financing property

Tuesday, October 09, 2007

By Robert J. Bruss
Inman News

Editor’s note: Robert Bruss passed away on Sept. 26, 2007. This was one of the last real estate columns he wrote. Inman News is publishing Bob’s last work as a final salute to the nation’s most well-known real estate writer.

According to Craig Venezia, author of “Buying a Second Home,” there are three primary reasons for buying a second home: investment (rental income and market-value appreciation); getaway; and/or retirement. His new book explains all three motivations, along with their pros and cons, and how to combine them as the owner’s lifestyle changes.

The book begins by asking the reader, “What is your main reason for buying a second home?” Then it proceeds to explain seven steps for a successful second-home purchase.

Read full article.

I’ve just sold a Single-family property at 660 Silverwheel Place with lovely pool next to open space. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

I’ve just sold a Single-family property at 3500 Decker Canyon in Malibu with serene ocean view. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.

Average selling prices continue to rise in the greater Malibu area as well as in the Los Angeles region despite the negative press about a falling housing market. The rate of home appreciation has fallen compared to recent years, but the ave sales price trend remains upward.  Now is a good time to buy or sell in light of historical low interest rates and slower but continuing price appreciation.

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Should I postpone selling my home?

Timing market depends on where interest rates, inventory stand

Monday, September 17, 2007

By Dian Hymer
Inman News

According to the media, now is one of the worst times to consider selling a home. However, although the national statistics don’t paint a rosy picture, some sellers are finding success in this market. It all depends on what you have to sell — house or condo, where it’s located, what kind of condition it’s in, and how well it’s priced for the market. Read full story

Here’s a solution for both buyers and sellers. Buyers get into a property for only 3% down–or less!  Sellers get a property sold that’s been on the market a while. Now that’s a win-win!

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When home won’t sell, consider ‘rent-to-own’

Despite above-market rent, all parties benefit

Friday, September 14, 2007

By Robert J. Bruss
Inman News

You’ve been looking for months for your first home, or you want to upgrade to a nicer home in a better community. It’s a great time to buy a home, everybody tells you.

Finally, you find the ideal home for sale, which has most of what you want (there is no such thing as the “perfect home.”)  Read full story…

I’ve just sold a property at 1179 Aztec in Topanga with a panoramic mountain and city lights view. Come and visit my site to see other properties in that area. If you are interested in looking for or selling your home, please Contact Me.