October 20th, 2008

Today has been a good day in the Westside of Los Angeles.  Our continual mild weather with wonderful ocean breezes has kept the temperatures cool.  There is expectation that it will be much warmer in the high 70's in couple of days.

The supply of Westside homes has been relatively low and it frustrates my buyers that we do not have more choices.  The values from August 2007 to August 2008 dropped around 8-11% according to theMLS statistics I reviewed.  As this figure is an average, each property should be assessed independently.  Location is still primary and foundation value element, then the property's improvements ("improvements" can be a traditional home yet it can mean home+studio+guest house or another exceptional structure). Los Angeles has so many professions and globally is known for a international hub for trade, entertainment and law.

I was hoping to give great news of lower interest rates, however, we just have good news.  The "good news" being 30 year fixed rates for a conforming loan of $417,000 is 5.875% with one point.  The rates progressively get higher as the amount goes up.  I highly recommend in shopping for a loan to talk with an experienced loan agent whom is associated with a healthy financial institution.  Recently, there have been disappointments of failed loan commitments as the financial institution either changed their requirements or have stopped lending completely. 

My last three transactions have the buyers purchasing with more than 40% down.  This seems to be the trend as those with cash are able to benefit from using it in their purchase.  Some home purchase loans above the $729,000 were quoted at 8.5%.  In any case, it is best to review the loan agent's qualifications along with the institutions they represent.  As a buyer will have more power to negotiate the best price and terms.  If you are a seller, then you will have the comfort of knowing that your sale will go through because your real estate agent has assessed the buyers qualifications including the lender or lenders that have approved the buyer's creditworthiness.

This is only a brief summary and I would love to talk specifics.  I have recently sold properties in West Los Angeles, Mar Vista, Marina del Rey and Westchester.  Also, I have collaborated with two associates with one client pursuing a Woodland Hills home and another a lease of an industrial building in Torrance.  Let me help and friends to make their best decisions.

Enjoy This Wonderful October Day,

Keith

Associate Broker with Coldwell Banker Westside

11900 W. Olympic Boulevard #100, Los Angeles, CA  90064

(310)722-2562