I have said many times that loan interest rates are as important as the purchase price of a home. And I don't think anyone would dispute that. Yet, people consistently get hung up on the purchase price, and forget about interest rates.
Well, I am hoping to change that. In the last 48 hours, I saw one particular loan product go from a 4.75% interest rate, up to 5.5% overnight. Here are the numbers showing how that would affect a purchase loan of $500,000:
Loan Amount: $500,000
Ammortization Period: 30 years
4.75% interest rate = Monthly PI (principal & interest) payments of $2,608.24
5.50% interest rate = Monthly PI (principal and interest) payments of $2,838.95
Same house, same price, 2 different payments...
Food for thought.
Tiffany Wilson has lived in the South Bay of Los Angeles County for over 10 years. She and her family enjoy the safety and rich family features that the beach communities of the South Bay have to offer, including a close and neighborly community. Also, having experienced an out-of-country move to California over 10 years ago, she is perfectly positioned to assist out-of-state and foreign buyers in their search for real estate in the South Bay and the additional surrounding communities of Los Angeles and Orange County. She can be reached directly at tiffany.wilson@shorewood.com or 310-503-0557.
For quite some time, I have been meaning to blog about this topic, as it is a recurring theme for myself, and my fellow Realtors, across the US. Realtors all over the US are asked the question, "Have we hit the bottom of the real estate market yet?" My answer: maybe.
Maybe? What kind of answer is that!!? But wait, hear me out. This question is too general. It's like asking, "Are bears brown?" Some are, and some aren't. And what shade of brown? Are we talking about bears in California, bears in the US, or bears all over the world? So, let me explain my answer.
First of all, when I am asked that question, I always make sure that I point out that real estate is local and what is happening in one area may not be happening in another area. That is so true of the entire South Bay, which has extreme diversity within this market.
I then caution people to take everything they hear in the media with a grain of salt. The media generalizes AND they are a business. Yes, their information may be correct, but the way they write or report makes you believe something other than the way things actually are. Case in point - the media says that California is going down the toilet. I am quick to point out - to those who will listen - that even though many areas of California are suffering severely in their real estate market, the Greater South Bay's real estate market is significantly different (and better off) than these other California areas.
Something else I tell people is a quote from my dad: "You don't know that you have hit the bottom of the market until AFTER it happens." Sure, we can make some predictions, but that is all that it is - a prediction. A few months ago I heard another real estate agent definitively exclaim that we hit the bottom of the market. She was so adamant that I didn't contradict her, even though I had seen concrete numbers that did NOT indicate that we had met the bottom of the market. But I knew that her belief was just that - a belief. A prediction.
Getting back to local real estate, and numbers, I have seen some early signs in real estate statistics for some areas in the Greater South Bay that could be indicating that we are close to the bottom. But that being said, I have not seen the same thing for other areas of the Greater South Bay. Case in point: the Holly Glen/Del Aire/Wiseburn area (Area 107), compared to the Manhattan Sand area (Area 142). These two areas are just a few miles away from each other, but they are considerably different real estate markets. Their current market performance is also night and day, with Area 107 showing hints of being at, or possibly near, the bottom of its market. This is evident in its lower inventory and higher turnover - as well as numerous buyers WAITING for new inventory to hit the market. Whereas Area 142 is seeing fairly consistent, increasing inventory, and little detectable increase in sales.
So what's the verdict? I'm still not comfortable making a statement saying that "Area X has hit the bottom of the market, but Area Y has not." There are too many unknown variables that we may be facing in the upcoming months. That being said, I would not be surprised if we definitively hit the bottom of the real estate market in many local, Greater South Bay areas within the next 3 months. So that's MY prediction!
One last point: 5 years from now, if you were able to tell someone, "I bought my home 6 months from the bottom of the market," do you think that they would be envious of you? I think the answer is "yes", and that's not a prediction - that's a fact! Also remember that right now we have extremely low interest rates, numerous financial incentives for first time home buyers, as well as other incentives, and extremely low real estate prices. If you are waiting for more reasons why you should buy, then you may miss the boat.
So, what do you think?
Tiffany Wilson has lived in the South Bay of Los Angeles County for almost 10 years. She and her family enjoy the safety and rich family features that the beach communities of the South Bay have to offer, including a close and neighborly community. Also, having experienced an out-of-country move to California over 10 years ago, she is perfectly positioned to assist out-of-state and foreign buyers in their search for real estate in the South Bay and the additional surrounding communities of Los Angeles and Orange County. She can be reached directly at tiffany.wilson@shorewood.com or 310-503-0557 .
When I was a teenager, I worked at a summer camp for 3 summers. Those were memorable, amazing summers where I reinforced my independance, gained responsibility, and felt pride in earning a fair income. It was also memorable because I saw many ways in which the talented camp counselors positively affected the campers. Year after year, I saw campers return, and many said that camp had affected them positively in some way.
That's why I am more than happy to help out a fellow community member by promoting an upcoming Car Wash Fundraiser for the Young Life group, which is raising money to help send 30-50 kids to summer camp. Here are the details:
WHAT: Young Life Car Wash Fundraiser
WHEN: Saturday, May 30, 2009 from 10am to 2pm
WHERE: Parking lot at the corner of 135th Street and Aviation, in Hawthorne (Holly Glen community)
Come help support this worthy cause!
Just ask Kermit - it isn't easy being green! Unless you join the LA Green Business Networking meetup group!
Join like-minded business owners and entrepreneurs who have a green philosophy in their personal and business lives - to network, share ideas, learn, and discuss important issues related to green living and business.
Future plans for meetings include keynote speakers, educational presentations, and more!
WHAT: Inaugural meeting
WHEN: June 4, 2009 @ 7:00 pm
WHERE: Visit www.Meetup.com/LA-Green-Business-Networking for location
Tiffany Wilson has lived in the South Bay of Los Angeles County for almost 10 years. She and her family enjoy the safety and rich family features that the beach communities of the South Bay have to offer, including a close and neighborly community. Also, having experienced an out-of-country move to California over 10 years ago, she is perfectly positioned to assist out-of-state and foreign buyers in their search for real estate in the South Bay and the additional surrounding communities of Los Angeles and Orange County. She can be reached directly at tiffany.wilson@shorewood.com or 310-503-0557.
I ran into an old friend of mine from Surfrider today, and he told me all about a new campaign that the South Bay Chapter of Surfrider is working on - Ocean Friendly Gardens. As a Realtor with the Green designation, I am excited to see this movement towards responsible gardening.
Gardening does not have to be a lot of work. In fact, there are many things that you can do to have a SPECTACULAR looking garden or yard, with little work and maintenance. I know - I speak from experience!
So find out what YOU can do to improve the area where you directly live, and the oceans that South Bay residents love so much.
WHAT: FREE Ocean Friendly Gardening & Landscaping Workshop
WHEN: Saturday, June 6 from 9:30 am to 1:00 pm
WHERE: Hermosa Beach City Hall, 1315 Valley Drive, Hermosa Beach
RSVP: Space is limited so registration is required! You can register online here.
BONUS: Come early from 8:30-9:30 for a special presentation by Ed Begley Jr on "Graywater".
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Do you want to hear about me, or what I can do for YOU? How about a Realtor who keeps in touch with the changing market, so she can adapt to best serve her clients. Competency, knowledge, and service.
I LOVE real estate, and I appear to have an affinity for it. I began investing in real estate in 1999 and have learned a lot along the way and bought some great homes. I have enjoyed this experience immensely, and I find that it helps me greatly when serving my clients.
But it's not just about real estate - it's about the people I work with: my current & future clients, financial professionals, title and escrow, insurance professionals, my peers, and all others involved. Real estate is serious business, but that still doesn't mean we can't have fun with it, does it?
Some people think I am crazy for being in a career in real estate with the way the current state of the housing and finance industry. But, I have always walked to the beat of my own drum. My primary motivator for working in real estate is not financially driven, but because it is something I truly enjoy. I am up for all of the challenges, looking at them as opportunities to grow and learn, not pitfalls. This is no fairweather real estate agent, my friend!
I think it is important to have a mantra - a slogan - which tells people what you are all about. I think I have found one for myself which is simple and succinct:
Responsible Real Estate
Of course I want to act in a responsible manner in all my real estate dealings, but I want to go further than that:
I specialize in the South Bay, beach and surrounding cities of Culver City, El Segundo, Gardena, Hawthorne, Hermosa Beach, Lawndale, Lomita, Manhattan Beach, Palos Verdes Peninsula, Redondo Beach, Rancho Palos Verdes, Rolling Hills, and Torrance.
I also specialize in Real Estate Investing and Green Real Estate.
Who are my clients?
Buyers and sellers who are:
I intend on serving ALL of my clients at a minimum in the following manners:
Individuals and families selling or relocating to or within the South Bay
I have lived, worked, and played in the South Bay for almost 10 years now - and counting! I have driven the streets to and from work, my family and I have frequented the beaches, we have dined all over (shout out to Wahoos Fish Taco in Manhattan Beach, the BEST restaurant in the whole world), shopped here, and enjoyed this wonderful area that I made into home after relocating from the cold, northern regions of Canada.
Buyers:
Sellers:
Real Estate Investors & Foreign Buyers
I am a real estate investor myself, and I always look at every piece of real estate with an investor's eyes. I am also a foreigner, having made a large move from Canada to Southern California over 10 years ago. I am familiar with what investors and foreign buyers are looking for and what they have to deal with. I have also served foreign buyers in the past when considering the purchase of real estate in Costa Rica. To top it off, I have also personally purchased out-of-state real estate safely and successfully. That is only possible with the help of a good agent, and mine has taught me the proper way to do it.
Tiffany has the experience in customer relations, sales and marketing, and most importantly, a desire to succeed through self-motivation. Her dedication and passion lends a unique commitment to service excellence, of which her colleagues and clients have, and will continue, to benefit from in the future. Tiffany is a genuine asset to the industry, to her clients, as well as to her colleagues, friends and family.
- Renee Crow, Missouri real estate agent with Realty Professionals
From my first contact with Tiffany, the choice was obvious: Wayne and Tiffany came well prepared, with their "homework" done and every detail attended to. They were there to sell themselves , but it was clear that they had listened attentively to our needs as sellers: they were extremely clear on a well-researched asking price that would be attractive in the current market and yet acceptable to us, and they had a creative marketing plan that went far beyond the office caravan, brokers' open, and open house after open house and included every possible potential buyer , whether it was someone just surfing the internet, starting to think about buying or someone who had been searching with the help of a real estate agent and just waiting for the perfect house to come on the market.
I signed the listing paperwork on a Monday evening, the listing went public Tuesday morning, and by that Thursday evening, we had a realtor call to say she had an offer on its way. We went from listing to closing in a mere 38 days.
Throughout the entire process, Tiffany and Wayne were always available to me via phone and email, and they never hesitated to stop by in person when necessary. Their teamwork is tightly choreographed and between the two of them all aspects of our sale were handled without a hitch. The internet listing was beautifully done with a maximum of photographs, the hard copy materials were thoughtfully conceived and flawlessly executed.
I highly recommend Wayne Lester and Tiffany Wilson to anyone considering selling their home.
- Elizabeth Baker, Torrance, CA
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