It appears that maximun loan limits for conforming mortgages will soon be raised from $417,000 to $625,00. According to real estate professionals a much needed increase for the coastal real estate market and San Diego in general which as a median price hovering at $500000.

While much needed to make financing more affordable throughout the region, the changes will not be enough to stop the decline in real estate sale and prices until inventory levels reach a healthy level from the current glut.  The changes will help by allowing more buyers ito the market place to absorb the current inventory.  According to a National Association of Realtors survey the number of new households being formed is off by about 50% in the last 6 mos indicating growing pent up demand and buyers waiting on the sidelines.  I predict that if the economy doesn’t totally tank the new higher loan limits,  pent up demand, and continued low mortgage rates will bring the buyers back into the market.   And it will be a buyers market for quite some time.

It appears that maximun loan limits for conforming mortgages will soon be raised from $417,000 to $625,00. According to real estate professionals a much needed increase for the coastal real estate market and San Diego in general which as a median price hovering at $500000.

While much needed to make financing more affordable throughout the region, the changes will not be enough to stop the decline in real estate sale and prices until inventory levels reach a healthy level from the current glut.  The changes will help by allowing more buyers ito the market place to absorb the current inventory.  According to a National Association of Realtors survey the number of new households being formed is off by about 50% in the last 6 mos indicating growing pent up demand and buyers waiting on the sidelines.  I predict that if the economy doesn’t totally tank the new higher loan limits,  pent up demand, and continued low mortgage rates will bring the buyers back into the market.   And it will be a buyers market for quite some time.

There is serious discussion between Congressional leaders and the White House about increasing the loan limits from $417,000 to $625,000 (perhaps as high as $725,000 in high-cost areas) for guaranteed/insured Fannie Mae and Freddie Mac loans.   From LATimes.com - “And in a provision crucial to high-housing-cost states such as California, there would be a significant one-year increase in the size of mortgages that could be backed by the government. That would make it far easier for homeowners to refinance into more affordable mortgages.”

Single family homes sales on the Palos Verdes Peninsula may not directly be affected.    In 2007, the average price (reported monthly) for a single family home that sold on the Peninsula fluctuated between $1,513,000 and $2,355,000.  The actual high for 2007 was $12,900,000 and the low was $807,500.

This change may favorably affect townhomes and condominium sales here on the Palos Verdes Peninsula as the average price (reported monthly) for a condo/townhome in 2007 fluctuated between $516,000 and $688,000.  The actual high for 2007 was $1,050,000 and the low was $235,000.

Indirectly, increasing conforming loan limits will affect the Palos Verdes Peninsula because of the “domino effect”.  In other words, buyer’s from other areas wishing to purchase in Palos Verdes will find buyers for their homes who will be taking advantage of these higher Fannie Mae/Freddie Mac guaranteed loan limits.

This is great news for the housing industry. 

As I was putting out my “Open House” signs one Sunday, I was already being followed by a car waiting to view the home.  By the time I actually arrived at the home, there were already 3 cars waiting for me to open up the house.  The day continued in that fashion.   It was one of the busiest open houses ever.  Families kept touring through for 3 hours.

One family had two small children who disappeared while I was talking to their parents.  I suggested to the parents that we check on them.  It was a two story house with a pond in the backyard.  You guessed it, they children decided to go for a swim and were in the pond.  The parents grabbed their kids, apologized and made for the door.

When we returned upstairs (which was actually the entrance), I noticed there was a beautiful brass and glass bowl missing from the kitchen counter.   Once I started looking around, I found there were even more items missing - an antique lamp, decorative items from the bathrooms including towels and even an area rug. 

One of the things I like about Lake Forest is the number of city sponsored events.   One tradition is the annual Snowfest.  This year snow will be in Lake Forest on January 26.  No need to drive to the mountains, snow will be just around the corner.  This will be a fun time for the whole family.

The City sponsors many other events and excursions.  Not only is Lake Forest a great community, there is always something to do!

The Valmonte neighborhood is located in Palos Verdes Estates.  The best thing about this neighborhood is that it is a family neighborhood.  There are usually groups of children playing outdoors on any given day.    The topography is relatively flat which is great for walking, riding bikes, playing ball, etc.   It is a very friendly area with lots of people taking walks and stopping to chat. 

Houses were built individually by owners who purchased lots - this is not a tract neighborhood.  The first house was built over 70 years ago.  There are  mixed style homes from Ranch, Spanish, Contemporary, Tuscan, Craftsman, etc. all approved by the Palos Verdes Homeowner’s Association.  Housing prices in 2007 ranged from $912,500 to $2,685,000. 

The weather is temperate; it’s been said Valmonte is in a “banana belt” - not too much fog, wind or heat - it’s perfect.  Valmonte is located on the north side of the Palos Verdes Peninsula so it is closer to beaches, freeways and shopping “off the hill”.  There are no sidewalks, street lights or signals.  At night you can see the stars.

Yesterday, rumors were swirling that Bank of America may be buying the troubled Countrywide.  This is good news for the financial markets and ultimately for our local real estate.  This piece of news will add some calm to the aura of uncertainty surrounding Countrywide and other lenders who have been impacted by the subprime mess.

With the calming of the financial sector and the increased confidence it spawns, the perception of “everything is okay now” will encourage buyers to come back into the real estate market.  It is such a matter of perception and the press has been very negative last year which scared many buyers and sidelined them with a “wait and see” attitude.

In addition, Federal Reserve Chairman Bernanke hinted at another rate cut.  Marion Duffy, of ERA Orange County, says “that this announcement will have a very positive effect on our market.”

When it comes to buying and selling real estate, California has more disclosures than Heinz has pickles.  But they should not be taken lightly and are there to protect both the buyer and the seller.  Buyers may not take two of them as seriously as they should.  They are the Neighborhood Noise Sources disclosure and the Neighborhood, Area; Personal Factors disclosure.  I think the most important message these two disclosures give is that what bothers one person may not bother another or what one person may consider a nuisance is no big deal to another.

The Neighborhood Noise Sources disclosure advises the buyer that although the property may not be in an “identified airport noise influence area”, there still may be aircraft noise as well as other sources of noise such as traffice, trains, etc.  The Neighborhood, Area; Personal Factors disclosure advises the buyer that there may be other conditions that affect the desireability of the property to the buyer.  The buyer has the right and the responsibility to check into any condition the buyer considers important regarding the neighborhood and the area.

While it is true that some sellers do not disclose a known nuisance or even try to cover it up (big mistake on the part of the seller!), there are some conditions that the seller may not be aware of or that the seller just does not consider a nuisance.  

I have a friend who bought a home in Irvine several years ago.  She bought a house on a corner lot near the entrance of the tract.  Once she moved in, she discovered that her tract is actually a short cut many motorist take to avoid lights at busy intersections.  It is particularly bad during the morning rush hour.  She said there are times that she has a hard time just pulling out of her driveway without getting hit.  Maybe the sellers were aware of this and failed to disclose it.  Maybe they left for work really early or didn’t work at all and were not affected by it. 

After an offer has been accepted by the seller, the buyer has a “contingency period” to do inspections and investigations of the property.  This is typically 17 days.  I suggest that a buyer drive by the property several times during that period and at different times, morning, night, weekdays, weekends.  Walking through the neighborhood is also a good idea.  Take note of the traffic, parking, noise, etc.  Talking with neighbors is also an excellent source of information.

It is so easy to get wrapped up in finding the perfect house, that we forget that the neighborhood is a really important element of that house.  Take the time to check out the neighborhood and area.  You can change and remodel almost anything in the house, but there is very little you can do to change the neighborhood.

My Lab (Labrador Retriever) is 11 years old today.   Maddie is the perfect dog: happy, sweet, loyal -the perfect companion.  Though not a very good watch dog.  If you are outside the front door, her bark makes her sound like she is this big ferocious dog.  But as soon as you enter, you’ll find she is really a big sissy - and that is just the way I want her. 

I should say she is perfect except for one thing.  She sheds and sheds and sheds, everyday, all year long.  I do not know how that dog has hair left on her body!  But she does and it keeps coming out.  Apparently this is fairly common with labs, especially the yellow ones.  A few years ago I started having Maddie shaved every few months, and that helps considerably.  She still sheds but it is much smaller hair and not so annoying.  And, Maddie loves getting shaved because she instanly looks 10 pounds thinner! 

I love Maddie, shedding and all.  After all, I know I have some imperfections too.  By the way, if you are a lab lover, I suggest reading Marley&Me by John Grogan.  I’m about half way through the book and I am really enjoying it.  At one point I was laughing so hard I could hardly see the words.

 Anyway, happy birthday to Maddie!!

My neighbor passed away in her home just two weeks shy of her 102nd birthday.   When I think back on the 33 years we “shared a fence”, I cannot  remember her ever being stressed about anything.  The other neighbors have also commented on this phenomenon.  We never saw her angry, upset, tense or worried.   She loved everybody.  We think this is the secret to her longevity.  She was such an inspiration.

At her memorial service, I heard how in response to some “bad” news, she said, “Oh well”.   The gentleman giving the eulogy had her mannerisms down perfectly - the cocking of the head to the side, the shrug of the shoulders, the raising of the eyebrows and the words, “Oh well”.  I remembered how many times I had actually seen her do this.

“Oh well” is my mantra for this new year.  This was put to the test yesterday when an “issue” came up for a client.  Instead of jumping into fix mode complete with my adrenalin soaring, I said “Oh well, let me make some calls”.  The problem was taken care of without any stress on my part and the client was very grateful.  I love it.