Elaine Carlson

Remax Palos Verdes/Execs has formed a new alliance with Bank of America which will benefit our clients in several ways. We now have access to the largest lender in the jumbo market. Bank of America will loan 80% up to a $2,000,000 loan to qualifying borrowers. This will help buyers (and therefore sellers) of Palos Verdes real estate. Remax Palos Verdes/Execs clients will be given priority and our agents will be given a source code so that we can track the loan through all stages.

We have a local Legacy Bank of America office which has their own loan processing center and underwriting department. This is very beneficial as a local person is making a decision about a local property which means the file won't be "rubber stamped" but given personal attention based on our local market. No more dealing with a loan center half way across the country. And our clients are promised a better loan rate!

The current rate for a 30-year fixed conforming loan (up to $417,000) is 4.625%; a jumbo conforming loan ($417,000 to $729,750) is 4.75%; and for a jumbo loan to $1,500,000 the rate is 5.5%.

This Homebuyer TaxCredit of $6,500 (married couple) is available as of November 6, 2009 for couples with combined adjusted gross incomes that do not exceed $225,000 (for singles a $3,250 credit and adjusted gross income not exceeding $125,000). You must be in contract on a new home by April 30, 2010, and must close escrow by June 30, 2010.

The homeowner must have owned the prior residence for a consecutive 5 out of the last 8 years. The new house cannot cost more than $800,000 and must become your main residence as of the date of close of escrow. You do not have to sell your current home (you may rent it out).

As noted in my November 6th article, "...credit will help sellers of Palos Verdes real estate as they increase the pool of buyers for their properties with "trickle up" activity for Palos Verdes buyers who have sold their homes" to buyers taking advantage of this credit. To date in 2009, Palos Verdes Peninsula has had 44 single family homes and 112 townhomes/condos sell for $800,000 or less. That is 11% for single family residences and 96.5% of the total townhome/condo market.

This is a great time to buy - Interest rates are at historic lows and until April 30th you can get a tax credit. Kenneth R. Harney in a Los Angeles Times articles writes, "do not assume that Congress will provide another extension. All the political and budgetary signs point the other way, and some of the primary authors of the credit insist that this is it - no more extensions next year. Take them at their word."

Statistics for the month of October 2009 for Palos Verdes real estate are now available and they again indicate stability in our market. The Active number of homes for sale in Palos Verdes have continued to decrease to an all time low (in the last 15 months) of 292 homes currently available for sale. 66 homes Sold/closed escrow in October and 76 homes have Pending Sales which is twice as many as October 2008 yet consistent with the prior five months of 2009. Our sales have been holding.

The average price for all homes (including townhomes/condos) that sold in October was $1,140,000 and average price per square foot was $471 which is about average for the prior 6 months. Average Days on Market in October spiked to 110 days from 73 in September. Months of Inventory (months it would take to sell existing inventory at the current rate of sale) for October was 4.4 months down from 14 months for October 2008 and consistent with the prior three months. Entire charts can be accessed by clicking here

Currently, there are 273 homes for sale on the Palos Verdes Peninsula. Additionally 64 homes have pending sales, 59 homes are in escrow accepting backup offers and 23 homes have sold/closed escrow in the first 13 days of November.

There were 18 homes on the November 10, 2009, Palos Verdes real estate Broker's Tour. We currently have 230 active single family homes for sale in Palos ranging in price from $750,000 in Rancho Palos Verdes to $14,900,000 in Rolling Hills (the low in Eastview is $625,000). There are 51 townhomes/condos for sale priced between $250,000 and $1,500,000. My favorites were:

Laurie Hurley's 7400 Alida Place, Rancho Palos Verdes, (above left) is a 4 bedroom, 4 bath, 3,851 square foot home for $1,998,500. This West PalosVerdes home features a state of the art kitchen, large master suite and ocean views. Les Fishman's 2637 Via Valdez, Palos Verdes Estates, (above right) is a 5 bedroom, 4 bath, 2,781 square foot home for $1,299,000. This Margate home has ocean views, a pool and a huge bonus room.

Gabrielle Herendeen's 26864 Eastvale Road, Palos Verdes Peninsula, (above left) is a 4 bedroom, 3 bath, 2,037 square foot home for $999,000. This Westfield home has vaulted ceilings, a master suite w/fireplace, and is on a 23,920 square foot equestrian lot. Jessica Kim's 27926 Ridgecove Court, Rancho Palos Verdes, (above right) is a 2 bedroom, 2 bath, 1,159 square foot townhouse for $511,000. This bright and airy Ridgegate townhome has a private patio leading to a detached two car garage.

Photos courtesy of MRMLS

The Annenberg Foundation has an Environmental Impact Report in progress for its multimillion dollar project at Lower Point Vicente. Plans have also been submitted to the city of Rancho Palos Verdes for approval and a formal application is anticipated soon.

"The proposal, based on a comprehensive study of the community done in concert with the development of the Coast Vision Plan, includes using architecture, art and exhibits to inform the public about Palos Verdes geology, history, marine ecology, terrestrial animals and habitats..." according to the Rancho Palos Verdes site (which can be accessed by clicking here). The Center would focus on providing education, science, behavior and care of animals and animal adoption opportunities. There will be an outdoor reconstructed Tongva Village, an archaeological dig, picnic areas, restroom facilities, and trails.

All this at "Zero cost to the city" according to the Annenberg power point presentation (which can be accessed by clicking here). The Annenberg Foundation's budget for this project is $38,000,000 to $42,000,00 and they will also to fund operations. This will be a project to watch!

Photo courtesy of Annenberg Foundation