Home sales rise to highest level

in 2.5 years

10.1 percent increase beat analyst expectations by more than sevenfold  

updated 1 hour, 41 minutes ago

WASHINGTON – Home sales far exceeded expectations last month, surging to the highest level in two and a half years as first-time buyers rushed to take advantage of an expiring tax credit.

The National Association of Realtors said Monday that home resales rose 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September.

Someone says we have a million dollars to spend….you’re thinking “they’re gonna get a real nice house with all that money.”  Well, I guess it depends where you want that house.  Here in the Hollywood Riviera, it doesn’t get you much anymore.  You have decisions to make when you have a million dollars to spend.  Do we buy a great location with a house that needs work?   Do we buy a little less of a location but the house is much easier to move into?  Do we spend less than the million and really buy a fixer and use the rest to fix it up?  (again thinking of the location.)  When I say location, here in the Hollywood Riviera there are two addresses – although in the end it’s all the same address.  What does that confusing statement mean?  Well, half the Riviera has a Redondo Beach address (a P.O. Box address only though) Then entire Hollywood Riviera is located in the City of Torrance (90505).  There is a perception that is backed by numbers that show it’s more desirable, thus more expensive typically to live on the Redondo Beach side of the Riviera.  Take for example the following averages:

Currently there are 14 houses for sale on the Torrance side of the Hollywood Riviera (90505)

The average dollar per square foot of these is $537.
The average price of those houses is $1,005,850.
The least expensive is $560K and the most expensive is $1,795K.

Currently there are 18 houses for sale in the Hollywood Riviera with the Redondo Beach P. O. Box (90277) address

The average dollars per square foot of these is $627.
The average price of these 18 houses is $1,457,050.
The least expensive is $699K and the most expensive is $3.7 Million.

Now let’s look at the Sold prices Torrance side vs. Redondo Beach P. O. Box side – since January 1, 2009-

On the Torrance side – 28 homes have sold so far this year – January 1st thru Sept 13th.
Their average dollars per square foot price was – $461 (note that it’s lower than the “asking price” of the Active homes.)
Their average sold price was – $835,977.
The lowest price home sold for $605K and the highest priced home sold this year for $1,460K.

On the Redondo Beach side – 23 homes have sold so far this year – Jan 1st thur Sept 13th, 2009.
Their average dollars per square foot price was – $558. (again note lower than the “asking price.”)
Their average sold price was – $1,189,332.
The lowest price home sold for $810K and the highest price home sold for $1,815,000.

Bottomline – You’d think someone with a million dollars to spend would end the day much happier than the normally do.  It’s pretty depressing for me too sometimes to show someone how little a million dollars buys you these days.  We throw around “a million dollars” like it’s chump change but it’s a lot of money. 

I just wanted to update you on the amazing rapid clip the Riviera has been on for home sales.  Look back to our May 19th, 2009 blog post and you will see that Kelly reported 10 homes in the sale pending category, with about 45 homes for sale at that time.  As of today, June 24, 2009, I am very pleased to tell you there are 24 homes in the sale pending category with only 27 homes for sale (down sharply from a high earlier this year of about 52 homes for sale)!  What a jump up we have seen lately.  It directly correlates to a lot of positive news the media has reported in the past month, and historically low interest rates.  Buyers perceive this a great time to buy, and perception becomes reality. 

Your House as Seen By:

Yourself

Your Buyer

Your Lender

Your Appraiser

Your Tax Assessor

Donate Your E-Waste and Help Save Our Schools!  

On Saturday, June 6 from 10 a.m. to 3 p.m. the Torrance Council of PTAs will be hosting an E-Waste donation day. 1-800-GOT JUNK is donating 50% of the profits from this event to the TEF/TUSD Save Our Schools Fund to replenish proposed state budget cuts of $9.4 million for the 2008-09 school year.

Acceptable items include: Computer monitors, CRTs, TVs, projection TVs, CPU, towers, printers, fax machines, all-in-one centers, radios, stereos, speakers, phones, answer machines, kitchen appliances, microwave ovens, small refrigerators, and household appliances.

Drop off location is 2336 Plaza del Amo, Torrance, at the Educational Materials Building (EMB) parking lot.

For more information please visit the Torrance Council of PTAs website at http://www.torrancecouncilofptas.org/ or call Tammy Khan at 310-972-6152 or email her at tkhan@tusd.org.

Oh my gosh… they must be kidding!  The new budget is calling for a reduction of the mortgage interest deduction. This reduction in deductible expenses will be for high income earners making more than $250,000 a year.  This group will see the deduction fall to 28 cents per dollar down from the current 35 cents for every dollar of their deductible expense.  In our area, this will effect a vast majority of home-buyers, which will further erode sales.   Please, please call your congressperson, your Senators and tell them no way, no how.  Here is today’s news release we received from the National Association of Realtors, who plan on fighting this all the way, and why they are doing so:

	Dear Fellow REALTOR®,You may have seen news reports about President Obama€™s budget proposal that was released today at 11:30 AM Eastern Time. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal. This communication is the first part of our response, we will continue to update you as the situation and events warrant.Sincerely, Charles McMillan, CIPS, GRI 2009 NAR President

Most of us have heard the news from December 16th that the Fed is targeting the Fed Funds rate in the range of “0% – .25%.”  What this means is they dropped their rate .75% to .25% but left the flexibility to cut another .25% and take the rate to 0%.

That’s all well and good but the real news for us lied in the commentary:  €œthe Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets €œ.   The buying of these securities is what directly impacts mortgage rates-investors buy securities, the prices go up and yields (and mortgage rates) go down.

This commitment is huge as it will also prompt other investors to jump in and we should see rates dipping into the mid 4% range!  This is historic as we are now at levels below the previous all-time lows seen back in June of 2003.

The City of Torrance has a wonderful recycling program – and it gets better – if you like to recycle you most likely know that the current 64-gallon grey recycle cans are usually too small.    Now you can get a new 96-gallon recycling bin for FREE from the city of Torrance.  You can either exchange it or add it to your current inventory of trash bins.  It’s an easy step – just go to this link and order yours today!  Here’s more recycling information from the City of  Torrance.

The following items can be recycled in this program:

Newspaper, Cardboard and Mixed Paper
Catalogues, magazines with staples, glossy paper, junk mail, computer paper, juice boxes, pizza and bakery boxes, corrugated cardboard as well as thinner cardboard like cereal and cracker boxes are included. Do not include paper cups or plates, napkins, tissue paper, fast food wrapping or shredded paper.

Aluminum, Tin and Metal Cans
Cans from drinks, soup, pet food and vegetables as well as empty aerosol cans are included. Clean aluminum foil and trays and wire hangers can also be recycled. Do not include scrap metals from plumbing or construction materials.

Plastic Containers
Only plastic bottles, bags or containers with a number 1 through 7 on the bottom can be recycled. Examples include soda bottles, milk jugs, shampoo bottles and butter tubs. Large styrofoam pieces can be included too. Do not include small styrofoam pieces (called popcorn or peanuts), or any bottle, bag or container without a number.

Glass Bottles and Jars
Glass bottles and jars of any color can be recycled. Do not include glass dishes, light bulbs or window glass.

Other curbside recycling tips:

We encourage residents to recycle whenever possible.  Additional recycling bins are available free of charge for residents who have extra recycling that does not fit into one recycling bin.  If you have the small, 64-gallon recycling bin and wish to replace it with the larger, 96-gallon recycling bin, click here for the request form.