Manhattan Beach CA/ e-PRO..... Kaye Thomas...

Manhattan Beach-Beach Cities: 2012 Real Estate Market .. The year ahead

For the last few years I have shared my thoughts about where I thought the market was headed each year... and this year is no exception. Making predictions is easy, the difficult part is finding out close your ideas were to reality.

Last year I thought the market would be very similar to the one in 2009 and I was fairly accurate. Truthfully I don't see much change in 2012. I believe sales will continue to be slow but steady and prices will be flat with a few sub markets markets declining and a few showing increases in value. .

Nationally the economy appears to be growing. The final numbers won't be available for a few more weeks. Retailers and others are counting on a strong surge in spending in recent weeks as an indication that we are moving forward. California's unemployment rate dipped to 11.7% in recent weeks which is still very high but at least it is finally moving in the right direction. Nationally the rate dropped to 8.6%. Whether the trend continues down is another issue that all the Presidential candidates will discuss at length I'm sure.

Unfortunately there are issues that will affect our economy over the coming months. Just as we were beginning to see a measure of stability in our country the European nations are showing signs of real problems. China is also facing economic problems. As our major creditor this could have an effect on our economic progress. Like it or not we have become a global economy.

The Government says the problems faced by the ongoing housing crisis are a high priority but new Federal regulations and guidelines add to the problems. What Bozo thought that adding a tax on mortgages for 10 years to fund the "payroll tax cut" for 2 months was a smart idea. All we need is more of that brilliant thinking to make sure the housing market continues to flounder.





Manhattan Beach-Beach Cities Real Estate...

The final sale numbers won't be in until next week but it looks as if the number of sales in Manhattan Beach and South Redondo increased while they decreased in Hermosa Beach, El Segundo and North Redondo. If the traffic at the local Malls was any indication of how people were viewing the economy... things are looking up. The Neptunian Womans Club Gift Wrap station at The Manhattan Village Mall was busier than it has been for the last 4 years.

Our local real estate market saw an increase in the number of distressed ( foreclosure, short sales and pre-foreclosure) property sales in all the Beach Cities. Manhattan Beach had the least with about 10% distressed sales and North Redondo saw the highest with 21% of closed sales.

In October the conforming loan amount officially declined from $729,750 to $625,500. The change didn't take effect until October but lenders stopped making loans at the higher amount around the end of August. While the decrease didn't really affect Manhattan Beach it definitely had an effect on the other Beach Cities. I don't believe it is a coincidence that prices on short sale townhomes in North Redondo dropped significantly at the same time.

I don't think we will see a major change in most of the South Bay real estate markets in 2012 from 2011. Prices will bounce around as buyers remain cautious. Manhattan Beach home prices have been the most stable of all the Beach Cities. I believe that trend will continue. North Redondo will likely be plagued by short sales that will push the market down a bit. Hermosa Beach, South Redondo and El Segundo may well see an uptick in short sales as lenders decide it might be more prudent to clear their books rather than continuing to delay the inevitable.

If interest rates remain stable you could see an increase in entry level prices in Manhattan Beach. This will hold true if more builders decide to take the plunge and start buying lots. I know of a number of agents who are actively looking for buildable lots and fixers in Manhattan Beach. I don't think you will see much new construction in the other Beach Cities for awhile although there have been a few new projects in North Redondo.

Obtaining a new loan continues to be difficult. property prices in the South bay-beach Cities remain high despite the declines in value. many entry level properties will require Jumbo loans with the drop in conforming loan rates. New FHA limits will help buyers but many of their rules discourage folks who don't want to pay the upfront fees required by FHA.. Refinancing your home can take months. Appraisal issues haven't gone away as out of area appraisers are used by many lenders even though there have been changes to the original law.


While overall Manhattan Beach and the Beach Cities have had fewer problems than many other communities in LA County we are at the mercy of conditions we have no control over. Many homeowners have been holding on with a tenuous grip as the economy has remained precarious for longer than expected. Some good news in the economy would be a welcome sign for everyone.

Manhattan Beach: Tale of a Sale.. Appraisals..it's not always about price

A lot of buyers are looking for "fixer uppers" in the Beach Cities. Many buyers believe they can purchase these homes at a low price, put a little money and work into them and wind up with a great deal. Sometimes it works out better then expected. However as with all aspects of the real estate market the more you think you know the more you really need to know.
Last year I closed escrow on a home in East Manhattan Beach that was marketed and sold for land value. The house was small and had a lot of deferred maintenance. The lot was huge, 14,000 square feet, and sat at the crest of a hill.

The home sold within 2 days of being on the MLS. The price accepted by the sellers was close to the list price and the buyers were exceptionally well qualified. The home was sold as is which was acceptable to the buyer as they are going to build their dream home.
All was going well until the appraisal. The appraiser knew that the home was being sold for land value and even noted this on her report. She also noted that the buyers planned to build a new home. She indicated that the value of the property was at the agreed price.

Unfortunately she didn't stop there....she noted something else... the home was not in great condition. She went on about what a great neighborhood it was and how lovely all the homes were and how expensive the property was in the area. Finally she made a list of all the things that needed to be done to the property to bring it to "average" condition and put a price tag on the list of $140,000.

Bells went off, whistles blew, lights blinked while buzzers buzzed..... and the lender who a few days before was ready to fund immediately said no. So what changed this deal... 4 words.. not in average condition. Now remember everyone knew this was a land deal... the house had no value and the appraiser said it was worth what the buyer had agreed to pay but because the appraiser said it needed lots of work to be average the deal was off.

In today's market, lenders don't want to loan on property that is not in average condition. There are a few who will make a loan on these properties but they are so overwhelmed with applications it takes forever to get an approval.

The problem comes down to what it average. The appraiser thought the house needed at least $140,000 to make it average which was silly. The house was solid and really only needed paint, new carpet, minor repairs and a good cleaning for the appraiser to decide it was now average. What was so senseless was that the seller had to spend money to fix up a house that was going to be torn down immediately.

Most of the time appraisers are at or very near the value that buyers and sellers agree on as fair market . It's not always about price... sometimes, even though the appraisal comes in at market value, it is not enough to make the lender agree to make the loan.

Manhattan Beach: Point of sale retrofits are on the way!

On Tuesday, November 16, 2010, the City of Manhattan Beach will decide whether or not they are going to require point of sale retrofits for toilets. What this means for residents is that when you sell your home you would have to either prove that you have installed a new low flush toilet ( 1.28 gallons vs current 1.6-3.5 gallons per flush)by showing a signed permit from the city or if you have not installed a new low flush toilet you would need to do so before the property closes escrow.

The interesting thing about the proposed ordinance is that the City may not be making a new toilet a requirement if you remodel a home only if you sell... which doesn't make a lot of sense. If the goal is greater conservation of water then it would seem to me that any remodeling project should also require new toilets. They are required for new construction.

I would imagine that if this requirement is approved the city will also soon implement requirements for other water saving devices at point of sale similar to those required in Santa Monica and the City of Los Angeles.

Currently Manhattan Beach is the only City with this requirement under consideration but you can bet if it goes through other local cities will also require point of sale retrofitting. The cost would likely be about $100 for a permit + the cost of the toilet and the cost to install it. I'm thinking it would run about $300-$400 per toilet.

I don't disagree with the idea that we all need to conserve more water. However I think the requirement should be part of any interior remodeling project and not just limited to point of sale if the goal is to conserve water and not a new way to raise money. If you have concerns than you should show up at the City Council meeting next Tuesday and let them know how you feel.

A few weeks ago I ordered some patio furniture from Costco. The order form said it could take 4-6 weeks to arrive which meant that I probably wouldn't get the patio furniture until mid to late August. Two weeks ago I received a note from Costco telling me my order had arrived and would be delivered within a few days. I was excited that I would get the furniture in time for summer!

Unfortunately the carrier who was going to deliver the furniture had a few issues and a lot of reasons why they were unable to deliver the furniture. After 12 days of excuses and no furniture I called Costco. The furniture was delivered the next day!

I asked the delivery folks if they had heard from Costco and they told me they had received a not so subtle call that the furniture was to be delivered now or else they would be jeopardizing their relationship with the company.

You may wonder what this has to do with real estate and the answer is simple... customer service... or in the case of the delivery company no customer service. I was Costco's customer and they made sure I received the service they promised.

Too often agents promise service but don't follow through on that promise. They are very cavalier with their clients and their fellow agents. Too often they make excuses instead of delivering results.

That's why I want to be like Costco. I want my clients to know that I will always be their advocate. if something isn't right I will do my best to make it right. I will be sure they receive the best possible customer service. I will answer my phone. If you have to leave a message I will get back to you as quickly as possible...whether you are a client, another agent or someone looking for information. I will check my email on a continuing basis all day. I will respond to your requests for information with a quick note immediately and more detailed information later.

Too often we forget that good service usually doesn't take a lot of time. Good service is being aware of your client's needs and doing your best to make sure they get what they need when they need it. Providing good customer service is one of the best ways to insure you will always have clients!

The Top 12 Women Real Estate Bloggers of 2009

In 2006 Joe Ferrara and Rudy Bachraty , when blogging was just beginning, decided to name the Top 10 Women Real Estate Bloggers for 2006. In 2007 and 2008 the list grew to 12 Women. These women are chosen from all over the United States. It is an amazing honor to be part of this special group of women.

This year I am so excited to be among the 12 Top Women Real Estate Bloggers in the United States. Truthfully, I am still stunned and thrilled to be chosen along with these 11 amazing Women Real Estate Bloggers:


Colleen Kulikowski Buffalo New York

Mary Pope-Handy in the Silicon Valley

Dru Bloomfield from Scottsdale AZ

Diane Guercio founder of The TwitterQueens,

Amy Chorew truly a Tech Queen

Jessica Riffle Edwards from Wilmington North Carolina

Susie Blackmon another North Carolina blogger with some great insights

Elaine Reese from Central Ohio has lots of sweet information

Gena Riede The Sacramento Real Estate Voice of experience,

Kim Wood from Philadelphia loves photography,

Monika McGillicuddy from New Hampshire has amazing photos.

Kaye Thomas Manhattan Beach CA

My first blog post on AR was in the fall of 2006. I had no idea what I was doing but I loved the concept of blogging... being able to share information with people looking for real estate in the Beach Cities made lots of sense. Over the next year I read as many blogs as I could and learned a lot efrom all the fabulous folks at Active Rain.

I am fortunate to be friends with many of these women and know others by their wonderful blogs. All of us are actively working in some part of the real estate market. Most of us are actively engaged in sales while others are finding ways to make real estate more user friendly for both consumers and agents. Blogging has allowed us to be more interactive within our communities and offer consumers a more intimate view of our local real estate markets.