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Interest Rates at All-Time Record Lows !!!

Interest rates plummeted to new historical lows this week. Volatility in the stock market is expected to continue as well as the flight to safety.  This should continue to keep interest rates down in the near-term. Below are some excerpts from this week’s newsletter on interest rates from HSH Associates :

With just a slight wobble downwards, mortgage rates set new record lows this week. A modestly growing domestic economy is producing little upward pressure for rates, while downward force from the Eurozone trouble is a considerable counterbalance. Slack seasonal demand for funds may be playing a bit of a role, too, as even a couple of week upturn in applications for mortgages remains below levels seen as recently as October.

Today’s conforming 30-year fixed rates finished the week at 4.05% + 0.31 points on average.  This eclipsed the previous low of October 10 by five basis points. While there are no directly comparable records of which we are aware, rates are at approximately 60-year lows. With that said, there is little practical difference between the rates of the past seven weeks and this week’s new low.

 

Flattish economic growth with perhaps a slightly upward bias has been evident for the past couple of months now. Perhaps there could be just enough strength as to be able to tread water or even move forward slightly despite the current. Each month that we don’t lose ground allows us to propel just a little bit father along, and we may be able to generate some momentum if the situation across the Atlantic can find some stability.

The Federal Reserve Open Market Committee held its final Open Market Committee meeting of 2011and no policy changes were implemented. This statement at the eng of the meeting noted that “the economy has been expanding moderately”, while inflation “has moderated since earlier in the year.” Noted headwinds to growth included “apparent slowing in global growth” and a housing sector which “remains depressed.”

Part of the reason that interest rates have eased at the end of the year is that inflation pressures appear to be subsiding. Largely driven by commodity prices, a strong period of price gains earlier this year has begun to peter out, leveling inflation. Measures of Consumer Sentiment have moved higher of late, as have Consumer Confidence but have yet to over take highs for the year, which weren’t exactly lofty highs to begin with.  Bloomberg’s Comfort Index has been virtually flat over the past four weeks

With the holidays kicking in with a vengeance, it will be interesting to see the consumer reaction at the registers. As consumer confidence goes, so go the future of interest rates.  The equity markets will also be closely watched. Rates will again wobble, possibly downward if we don’t get a “Santa Claus” rally in the equity market.

Interest rate quotes from Al Hermann of American California Financial Services:

 

30 Yr Fixed FHA

Rate

APR

 

       

3.250

3.922

Details

       

 

Conforming 30 Yr Fixed up to $417000

Rate

APR

 

       

3.750

3.895

Details

       

 

Conforming Jumbo 30 Yr Fixed $417001 – $625500

Rate

APR

 

       

3.990

4.130

Details

       

 

Jumbo 30 Yr. to $1.5 Mil

Rate

APR

 

       

4.875

5.012

Details

       

 

Jumbo 7/1 ARM $1.5 Mil (higher loan amt available)

Rate

APR

 

       

3.375

3.489

Details

       

 
The following are interest rate quotes from Jan Schott Bank of America, Home Loans jan.schott@bankofamerica.com 310-802-2300 :

 

Conforming Loans to $417,000

 

5 Yr Fixed:         2.500% @ 1.000/pts                      2.875% @ 0/pts 

30 Yr Fixed:      3.875% @ .875/pts                         4.125% @ 0/pts

         

Conforming High Balance to $625,500

 

5 Yr Fixed:         2.625% @ 1.000/pts                     3.000% @ 0/pts*

  30 Yr Fixed:        3.875% @ 1.000/pts                     4.375% @ 0/pts

 

Non-Conforming Loans to $2,000,000

 

 5 Yr Fixed:          2.875% @ 1.000/pts                     3.125% @ 0/pts

  30 Yr Fixed:          4.250% @ 1.000/pts                     4.625% @ 0/pts

           

FHA Fixed Loans to $625,500

 

   30 Yr Fixed:        3.750% @ 1.000/pts               4.250% @ 0/pts           

For inquiries details about Palos Verdes Real Estate in and South Bay  and Palos Verdes Homes For Sale, at http://www.pvbrokers.net or palosverdesrealestateagents.net . Please feel free to contact us for any questions or Palos Verdes Residential real estate needs that you may have. 

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Palos Verdes November 2011 Real Estate Market Report

In general, the Palos Verdes Peninsula Real Estate Market has began to slow during September and October but has, since, increased in November to 50 home sales.  The represents the average monthly home sales over the last 6 months. The average number of properties listed for sale during the last 3 months is approx. 21% lower than the comparable period  last year, and the number of sales per month over the last 3 months is up 13% compared to that of the similar period last year.  The chart below illustrates the present market trends.

  Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago
  Nov. 11 Oct. 11 % Change Nov. 11 Nov. 10 % Change Sep. 11 to Nov. 11 Sep. 10 to Nov. 10 % Change
For Sale 211 238 -11.3% 211 277 -23.8% 238 304 -21.7%
Sold 50 38 31.6% 50 19 163.2% 44 39 12.8%
Pended 54 51 5.9% 54 36 50% 50 37 35.1%

Based on the average monthly sales of 50 homes, the current inventory of 211 homes for sale equates to a little over 4 months inventory

  Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago
  Nov. 11 Oct. 11 % Change Nov. 11 Nov. 10 % Change Sep. 11 to Nov. 11 Sep. 10 to Nov. 10 % Change
Avg. Sq. Ft. Price 439 471 -6.8% 439 496 -11.4% 457 481 -5.1%

The average price per sq. ft. for homes sold over the last 3 months is down approx. 5% over the comparable period last year. The average price per sq. ft. of homes sold had been relatively steady over the previous four months,but decreased in all of the cities of the Peninsula during November.  It remains to be seen if this is a trend or just a one month blip in the market.

 

Palos Verdes Estates December 2011 Real Estate Market Report

The number of Palos Verdes Real Estate Listings in the City of Palos Verdes Estates during 2011 has been relatively steady, averaging 78 homes, but is down about 25% compared to a year ago.  The average number of homes sold per month during this same period has also been very steady, averaging 15 sales per month. This equates to approx. 5 months of inventory.

  Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago
  Nov. 11 Oct. 11 % Change Nov. 11 Nov. 10 % Change Sep. 11 to Nov. 11 Sep. 10 to Nov. 10 % Change
For Sale 68 74 -8.1% 68 92 -26.1% 74 98 -24.5%
Sold 15 8 87.5% 15 5 200% 11 12 -8.3%
Pended 15 18 -16.7% 15 9 66.7% 15 12 25%

 

Palos Verdes Realtors reports this figure to be up 11% over the comparable period last year.  The overall market appears to have stabilized, however the average price per sq. ft. for properties sold in November fell for all of the cities on the Palos Verdes Peninsula.   This market has not been nearly as impacted by the foreclosure sales which have severely affected inland markets. 

 

  Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago
  Nov. 11 Oct. 11 % Change Nov. 11 Nov. 10 % Change Sep. 11 to Nov. 11 Sep. 10 to Nov. 10 % Change
Avg. Sq. Ft. Price 457 524 -12.8% 457 641 -28.7% 485 545 -11%

The following is a list of the 8 homes sold during the month of November 2011:

Address                Sales Price Bd Bth Sqft   $/Sq   Yr. Built       ML#    Sold Date   Days on Market

1517 Palos Verdes Drive West $875,000 3 2.00 1,600 $546.88 1954 V11106900 11/22/11          99

2809 Via De La Guerra  $960,000 4 2.00 1,860 $516.13 1956 V11130910 11/23/11       36

612 Yarmouth RD  $1,051,000 3 2.00 1,661 $632.75 1955 P794279 11/08/11         11

1917 Dalton RD   $1,085,000 4 3.00 2,435 $445.59 1947 V11115485 11/30/11       61

841 Rivera PL   $1,375,000 4 4.00 4,149 $331.41 1965 V11110476 11/17/11      63

2333 Via Olivera    $1,680,000 4 5.00 3,432 $489.51 1971 V11109253 11/03/11        77

1033 Via Nogales     $885,000 3 2.00 1,675 $528.36 1956 V11038626 11/28/11       227

2208 Via Alamitos    $1,000,000 4 3.00 2,645 $378.07 1966 V11062827 11/25/11      103

2615 Pinale LN    $1,170,000 5 6.00 3,905 $299.62 1959 V11048928 11/03/11    159

505 Via Media    $1,300,000 3 2.00 2,029 $640.71 1953 V11061370 11/04/11    99

3201 Palos Verdes DR   $775,000 4 2.00 1,859 $416.89 1955 U11004233 11/21/11    16

4068 Via Valmonte   $810,000 3 2.00 1,850 $437.84 1956 V11126942 11/16/11    28

3420 N Palos Verdes DR  $850,000 3 2.00 1,690 $502.96 1949 S11123160 11/08/11     36

3337 Via La Selva    $883,090 4 2.00 1,730 $510.46 1954 V11138881 11/30/11     31

4024 Via Pima   $902,500 3 2.00 1,650 $546.97 1954 V11095991 11/01/11       69

 

 

Average           $1,040,106 4.0 2.70 2,278 $482                                              74

 

 

Due to the record low interest rate environment and a stabilizing real estate market, now could be the ideal time to purchase a home in Palos Verdes Estates.  Due to the volatility in the stock market and the economy, we recommend that aggressive buyers explore the real estate markets prior to a possible recovery in this general economic decline.

Rancho Palos Verdes November 2011 Real Estate Market Report

Real Estate in Rancho Palos Verdes has been very active, with sales strong and inventory down. The level of inventory of homes for sale is down significantly with the average number of homes for sale over the last 3 months having decreased approx. 27% over the comparable period last year. The monthly average number of properties sold during the last three months compared to the similar period last year has gone up almost 29%.  The average monthly number of homes in escrow during the last 3 months has also increased 53% over the comparable period last year.

 

 

 

  Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago
  Nov. 11 Oct. 11 % Change Nov. 11 Nov. 10 % Change Sep. 11 to Nov. 11 Sep. 10 to Nov. 10 % Change
For Sale 105 111 -5.4% 105 142 -26.1% 116 158 -26.6%
Sold 30 25 20% 30 9 233.3% 27 21 28.6%
Pended 32 29 10.3% 32 22 45.5% 29 19 52.6%

The number of months inventory, based upon the average monthly sales over the last 3 months ,has also decreased to approx. 4 months of inventory, historically very low

 

 

Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago
  Nov. 11 Oct. 11 % Change Nov. 11 Nov. 10 % Change Sep. 11 to Nov. 11 Sep. 10 to Nov. 10 % Change
Avg. Sq. Ft. Price 378 464 -18.5% 378 397 -4.6% 437 435 0.4%

The average price per square foot for homes sold in Rancho Palos Verdes has been very consistent over the
last six to eight months,  even increasing over September and October, but decreased 19% in November
compared to the previous month. It remains to be seen if this is a one month aberration.

The following is a list of the 30 homes sold during the month of November 2011:

Address            Sales Price Bd Bth Sqft $/Sq  Yr.Built     ML#    Sold Date   Days on Market

2202 Sunnyside Ridge RD $675,900 3 2.00 2,068 $326.84 1958 V11119399 11/16/11 15
2040 Suana DR $721,000 3 2.00 1,740 $414.37 1960 V11109806 11/04/11 38
6264 Via Canada $875,000 5 3.00 3,859 $226.74 1955 M11122658 11/29/11 37
2952 Crownview DR $1,060,000 3 3.00 2,817 $376.29 1964 S11131680 11/21/11 46
4332 Via Frascati $1,100,000 4 3.00 2,207 $498.41 1963 V11129470 11/22/11 53
30707 E Palos Verdes Dr. $1,650,000 5 6.00 5,304 $311.09 2004 V11000011 11/10/11 215
30920 Oceangrove DR $690,000 3 3.00 2,242 $307.76 1975 S11098042 11/18/11 89
32452 Searaven DR $847,000 4 2.00 2,037 $415.81 1963 V11044339 11/22/11 225
4031 S Palos Verdes DR $1,238,000 5 5.00 4,451 $278.14 1959 S11037179 11/29/11 219
104 Spindrift DR $1,250,000 4 3.00 1,293 $966.74 1956 V11149567 11/15/11 33
39 Nuvola CT $1,578,000 4 4.00 3,470 $454.76 1998 V11049212 11/28/11 211
30815 Rue Valois $960,000 4 2.00 1,926 $498.44 1960 V11081193 11/03/11 101
30530 Camino Porvenir $1,150,000 4 3.00 2,600 $442.31 1974 V11041765 11/15/11 215
30037 Avenida Esplendida $1,200,000 3 4.00 3,500 $342.86 1973 S11088584 11/10/11 116
6831 Faircove DR $1,250,000 5 3.00 3,000 $416.67 1967 V11109676 11/15/11 88
6934 Brookford DR $840,000 3 2.00 1,854 $453.07 1962 S11092808 11/16/11 90
6632 Verde Ridge Road $1,100,000 5 4.00 2,788 $394.55 1972 V11078210 11/10/11 142
28419 Hazelridge DR $1,165,000 4 3.00 2,484 $469.00 1964 V11132835 11/18/11 40
5632 Seaside Heights $920,000 4 3.00 2,488 $369.77 1966 V11133375 11/30/11 8
5940 Finecrest DR $700,098 4 3.00 2,270 $308.41 1959 V11087256 11/18/11 82
5302 Littlebow RD $765,000 4 2.00 2,340 $326.92 1957 P789544 11/28/11 100
26644 Shadow Wood DR $870,000 4 3.00 1,917 $453.83 1961 P796824 11/04/11 6
5951 Flambeau Road $870,000 5 2.00 2,190 $397.26 1959 V11099943 11/16/11 109
27100 Mesaba DR $902,000 4 3.00 2,245 $401.78 1958 V11110300 11/09/11 26
2034 Jaybrook DR $520,000 2 2.00 1,100 $472.73 1950 P797983 11/16/11 50
2036 W Macarthur ST $530,000 4 2.00 1,629 $325.35 1955 S11067145 11/18/11 113
27630 Tarrasa DR $569,000 4 3.00 1,902 $299.16 1960 V11070978 11/18/11 164
1966 W General ST $620,000 4 2.00 1,781 $348.12 1955 S11135149 11/22/11 28
1465 W Toscanini DR $675,000 4 2.00 2,100 $321.43 1974 S11042705 11/09/11 166
29004 S Bayend DR $685,000 4 3.00 2,376 $288.30 1987 V11104151 11/08/11 76
$932,533 4.0 2.90 2,466 $397 1966 97
Average         $1,291,365   4.0 3.00    2,779     $440                                        113

Combined with record low interest rates, now is an excellent time to consider buying a home.

City of Rolling Hills Estates December 2011 Real Estate Market Report

Despite making a strong comeback in the average price per sq. ft. of homes sold during the spring,  the most recent quarter showed an approx. 6% drop from the comparable quarter a year ago.  Because of the relatively small number of monthly sales, the average monthly price per sq. ft. for this city is highly correlated to the type of homes sold during the month.

 

 

  Curnt vs. Prev Month Curnt vs. Same Month 1 Yr Ago Curnt vs. Same Qtr 1 Yr Ago