Subprimes are still there.

Subprime mortgages are still out there. But what are they?

Very simply, they’re loans made to borrowers with a FICO score of 620 or below. What borrowers should be aware of are the dangers of entering into this kind of financial commitment. To begin with, when a subprime loan is made, the rate is considerably higher than the norm. The borrower begins with payments that would surely put stress on the repay schedule. If it is an adjustable rate (ARM) loan—which quite often is the case—the payments may escalate even further as rates go up.

Subprime loans are there as a means of entering the real estate market when usual financing qualifications are not possible. The borrower gains access to a property when not really qualified, and the lender is assigned an exorbitant interest rate.

As was inscribed centuries ago—”Caveat emptor”—Let the buyer beware.

South Bay Real Estate

Whether the press knows it or not, there’s been a fairly healthy amount of activity here this year.
For your interest: Home Sales had a 28.6% increase in this area in February. The most active price category in the four beach cities during February were homes priced from $750,000 to $1 million, with 135 offered for sale, and 45 sold.

Another 115 homes were offered between $1,000,000 and $1.5 million, with 22 sold, while 73 were offered between $500,000 and $750,000 and 34 sold.

Eighty-six homes were offered at $2 million or more during the month of February, with eight selling in that price range.

Median Prices 2007...........Change from March, 2006
Manhattan Beach
SFR - $1,900,000.....................-2.6%
Condo - $1,107,000...................+30.2%
Hermosa Beach
SFR - $900,000.......................-2.1%
Condo - $894,000.....................-20.2%
Redondo Beach
SFR - $999,000.......................-0.1%
Condo - $752,000.....................+7.4%
El Segundo
SFR - $855,000.......................-7.1%
Condo - $630,000.....................+35.5%
Palos Verdes
SFR - $1,233,000.....................-10.4%
Condo - $481,000.....................-30.8%

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

The Bijou Theater - Hermosa Beach

Hermosa Beach really is a unique little beach town. It celebrated its 100th anniversary in January ‘07. It’s always been a casual version of Manhattan Beach and a little more hip than Redondo Beach. Hermosa is Hermosa, a beautiful town...big on sports, big on saloons and big on a variety of architecture and personal lifestyles.

I would come down to the Bijou Theater when I was a young man to catch films that weren’t shown elsewhere. Good stuff. What were called art films. Esoteric, by some. Sort of like the things shown at the Nuart in West L.A. (Sawtelle). At any rate, my folks never came down. They never even came surfing south of Santa Monica. If anything, they went north to Malibu. Mom only came south when she did the Catalina paddleboard (hollow-board) race every year.

The Bijou was a Neo-classical-style architectural thing of beauty. The tasteless kitsch that has since surrounded it only emphasizes the elegance that once was. Thankfully, the new art gallery that now occupies the space, has exercised taste in redoing the interior for its purposes.

The Bijou Theatre opened in 1923 as the Metropolitan. After years of showing movies, the Bijou closed, and more recently Gallery-C Art Gallery opened. Some of the character of the original has been retained. Nothing remains the same forever.

Today...

Currently, there are 100 properties available comprising:
Single Family Residences: 54
Median: $1,344,000,000; Low: $795,000; High: $11,000,000
Townhome/Condos: 46
Median: $1,362,000; Low: $409,000; High: $2,499,900

Of these properties, 28 SFRs are in the Beach Section, west of Valley Drive.
Median: $1,912,000; High: $11,000,000
And, there are 28 Townhome/Condos available in the Beach Section.
Median: $1,524,500; High: $2,499,900

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks, from the So. Bay, where living is beautiful,

Robert Kissig
Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com

Will Loan Disclosures Work?

Were Interest-only mortgages (IOs) and option ARMS (OAs) designed as creative options for borrowers, or to confuse them? More than likely the later since borrowers usually don’t understand the risks involved. As pointed out by analists, it’s not realistic to assign responsiblity of all mortgages to loan officers or mortgage brokers. Their primary concern is selling loans, not enforcing new regulations.

How about the suggestion that a new set of disclosure requirements be placed on lenders? Since most borrowers don’t understand them and they are too lengthy and full of non-info, it’s probbably not a workable solution.

Expecting lenders to explain the negatives is an unlikely event. IOs and OAs were created to lower payments...initially. Explaining the consequences is something else.

Quick Tips
Upfront Mortgage Brokers

For further details you might refer to professor of finance emeritus at the Wharton School of the University of Pennsylvania. http://www.mtgprofessor.com.

National Average Mortgage Rates - 03/22/2007
Mortgage................Rate...Points
30 Year Fixed.........6.16%..0.40
15 Year Fixed..........5.90%..0.40
1 Year Adjustable....5.40%..0.70

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks, from the So. Bay, where living is beautiful,

Robert Kissig
Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com

Paradise in the South Bay

The original Spanish settlers had it right when they named it Playa de Hermosa—Beautiful Beach.

From Santa Monica, Hermosa Beach has always been the other end of the world I grew up in—Santa Monica Bay. If I took a mind trip, the picture would always be a clean sunny day before cost of living put limits on calling it home. I remember Hermosa Beach 4th of July fireworks observed from a friend’s Pacific Palisades front yard. Gazing down the Santa Monica Bay Necklace from the north on a summer’s evening with the sky ablaze was spectacular!

As a young high school lad cruising down PCH to Hermosa Beach in my ‘36 Ford 3-window Coupe with date or buddy aboard, I’d park in front of “The Lighthouse,” the greatest jazz Mecca in the world. I played alto sax at the time, and thought I was destined to appear at The Lighthouse one day in the not too distant future. It was kind of like promising one’s self an Ames Chair before middle age. We all had grand plans for the future in those days.

What never made an impression, was real estate. Yes, we lived in comfortable homes that accommodated the whole family for feasts on holidays. And the milkman and Helmsman delivered our commodities even if we were away on vacation. But I don’t recall ever meeting a Realtor. Nope, that was a less visible profession than the local used car salesman. Who woulda’ guessed it?

Now look at what’s taken place. I believe the term ‘bizarre’ describing real estate, evolved in the South Bay in the ‘70s. It then had no limit to it’s meaning. The median price for a single family home in Hermosa Beach this week is $1,137,500, what was $1,500 when I used to come down for some jazz on The Strand. How unimaginative was I?

The growth forecast continues. I looked at property for sale this week in the million dollar range that almost made me cry. Were we so narrow minded in the days of yore, that we could not foretell what the future held for this section of paradise? Or were we just lazy?

Hermosa Beach Home Pricing March ‘07
Single Family Residence; Active: 51
Median: $1,137,500; Low: $799,000; High: $1,299,000
Townhome/Condo; Active: 50
Median: $1,174,000; Low: $845,000; High: $1,349,000

National Average Mortgage Rates
Week Ending 03/22/2007
Mortgage Rate Points
30 Year Fixed 6.16% 0.40

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks, from the So. Bay, where living is beautiful,

Robert Kissig
Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com

The Sky Is Falling!

Is it possible that someone is trying to fool the public concerning the state of the economy? Is the sudden sense of panic unfounded? Yes, there was a 250 point plunge in the Dow Jones industrial average, and an explosion in rising home foreclosure rates. Subprime loans are showing the consequences. These loans go at substantially higher interest rates, to at-risk home owners. A win-win deal, right? Wrong!

The govt. is now getting involved in monitoring any possible predatory activities involved in subprime loans. It was predicted by the chairman of the Senate Banking Committee, Democratic Sen. Christopher Dodd, that millions were in jeopardy of loosing their homes, with speculation that there will be the need for federal bailouts. The mortgage lending system needs rectifying and the practice of subprime lending is up for review.

On the positive side, as noted by Sunday Morning correspondent, Ben Stein, the economy is strong, and the proportion of foreclosures is relatively small. If this is true, it should be a pretty good indication of where the market is headed.

It looks like the ones who buy now, will be glad they did.

SOUTH BAY REAL ESTATE WATCH

Manhattan Beach 3/22/07
For Sale—Single Family and Townhouses: 120
Sand Section: 31
Tree Section: 16
Hill Section: 16
Village: 2
Heights: 11
Mira Costa: 25
Pending/Sold—Last 2 months: 134

Hermosa Beach 3/22/07
For Sale—Single Family and Townhouses: 81
Sand Section: 45
Valley: 9
East: 27
Pending/Sold—Last 2 months: 53

Redondo Beach 3/22/07
For Sale—Single Family and Townhouses: 67
No. of Torrance Blvd: 21
So. of Torrance Blvd: 19
So. of PCH: 23
Pending/Sold—Last 2 months: 67

El Segundo 3/22/07
For Sale—Single Family and Townhouses: 11
Pending/Sold—Last 2 months: 35

Palos Verdes 3/22/07
For Sale—Single Family and Townhouses: 13
Monte Malaga: 5
Malaga Cove: 8
Pending/Sold—Last 2 months: 9
______________________________________________________________________
Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks, from the So. Bay, where living is beautiful,

Robert Kissig
Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com

LAX/Hollywood Spectacular!

It looks like LAX is staging a Hollywood spectacular—a multi-million dollar return of "Encounters," the arches theme restaurant from 1969—last redesigned by Disney Productions— and the landing of the worlds largest jumbo-jet, Airbus A380, arriving non-stop from Toulouse, France. With a wing-span bigger than a football field, the rumor is it was designed in Hollywood, or possibly Disney?

A crowd of thousands was on hand Monday morning as the sun rose on another perfect Hollywood (Westchester/El Segundo) reception. There was talk of rolling out a red carpet, but there weren’t funds left in the budget. Gov. Arnold was planning a heroic appearance of some sort, but this was precluded by early-am knee problems.

The other spectacular event available for the cameras and paperazzi, were signs of local recovery in real estate. If there’s one thing on a grand scale and more spectacular than Hollywood, it’s the U.S. economy, shored up by a King Kong real estate market. It’s still a good place to park your money if the big guys know anything .

Here’s the latest on availability and the cost of living in the South Bay:

Manhattan Beach, Hermosa Beach and Redondo Beach:

Manhattan Beach - For Sale 119:
Sand Section (36); Tree Section (31); Hill Section (14); Manhattan Village (2); Manhattan Heights (10); Mira Costa (26)
149 Sold,Pending,Contingent 1/20/-3/20/07
Median: $1,887,000; High: $6,000,000

Hermosa Beach - For Sale 87:
Sand Section (47); Valley Section (14); East of PCH (26)
62 Sold,Pending,Contingent 1/20/-3/20/07
Median: $1,299,000; High: $10,600,000

Redondo Beach South - For Sale 131:
So.of Torrance Bl.(40); No. of Torrance Bl.(29);
The Village/Esplanade (62)
91 Sold,Pending,contingent 1/20/-3/20/07
Median: $875,000; High: $1,995,000

Am I wrong, or does this suggest a pretty active market?


Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com

“Civilians” Spotted in Saloon Office Meetings

Whoever said our real estate office didn’t have character? Drop into one of our Wed am meetings in the local saloon on The Strand in Hermosa Beach. I doubt there’s another office meeting in town quite like it. Equality prevails like a parochial grade-school, with the exception of prerequisite uniforms. Multi-million dollar transactions share the forum with those of the less spectacular proletariat.

Comparing conclusions of our weekly office meeting to input from the press is like comparing opinions of the Dems to the GOP c.c. matters of state. Reports from one source are diametrically opposed to the other.

How can a clear opinion possibly be arrived at? For openers, buyers/sellers should consult with a favorite Realtor. Any reasonable explanation should begin to bring clarity to the matters of Property Value, Market Forecast and Purchase Logic. What exactly can be expected in the future? It’s unlikely a magician will appear, but logic and a clear head can improve upon a lot of decisions.

(It’s been reported that some “civilians” have been spotted in the Wed am office meetings on The Strand. Which only proves that some will go to any length to gain a dependable market outlook.)

Do the following mortgage rates look like they’re from a time period in the past?

National Average Mortgage Rates - 03/18/2007
Mortgage Rate Points
30 Year Fixed 6.14% 0.50
15 Year Fixed 5.86% 0.50
1 Year Adjustable 5.47% 0.60

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com

Ponderings in the fog

Sitting here looking at the fog drifting in can’t help but leave me with a feeling of gloom. Nothing specific, but GLOOM never the less. Gloom is one of those things that is brought on with a lack of something positive on ones mind, e.g., Where should I have dinner tonight?; Is there another decent 4-plex available in Hermosa Beach?; What am I doing in real estate?

I was scanning through a friends blogs on her blog site...spectacular! What a lot of time invested. The Daily Breeze would do well to recruit her talents. Some positive media input would would bring balance to our special beach cities locale in spite of what real estate pundits and writers describe with negative certainty and forcasts of gloom.

The press leaves me depressed. Could be the overcast as well I suppose.

On the bright side, here’s what’s been happening in Manhattan Beach, Hermosa Beach and Redondo Beach:

Manhattan Beach - For Sale 119:
Sand Section (35); Tree Section (30); Hill Section (13); Manhattan Village (2); Manhattan Heights (10); Mira Costa (9)
76 Sold & Pending 1/01/-3/15/07
Median: $1,887,000; High: $6,000,000


Hermosa Beach - For Sale 82:
Sand Section (47); Hill Section (12); E. of PCH (23)
31 Sold & Pending 1/01/-3/15/07
Median: $1,299,000; High: $10,600,000

Redondo Beach South - For Sale 125:
Area 55 (40); Area 56 (25); The Village/Esplanade (37)
49 Sold & Pending 1/01/-3/15/07
Median: $875,000; High: $1,995,000

Am I wrong, or does this suggest a pretty active market?

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com

Exuberance turns to concern

Refinance to get cash and make ends meet? Nothing to it. Refinance again in six months and get a better loan with a lower interest. Bad credit? Not a problem.

Tell New Century Financial Corp.: stock down 48% from less than a year ago.

Sub-prime was going hand-in-hand with exuberance. The idea that anything drastic could befall the monster real estate market of recent years was beyond peoples imagination. A sub-prime loan was only another means of joining the real estate boom many were gorging on—transferring equity, buying and flipping, and sub-prime loans. Anything that would produce a piece of the pie.

And slowly other economic factors—conflict around the world, rising oil prices, agitation by a negative press—and consumer confidence took a turn. A booming stock market, low unemployment and historically low mortgage rates meant little, it seemed.

Seemingly, a curtain fell and there appeared a plethora of homes as buyers withdrew. They had bought the propaganda in the air. A self fullfilling prophecy followed and exuberance was followed by caution. Foreclosures now filled the neighborhoods as REOs now became all-to common.

But resilience is beginning to show on the horizon. Hard to believe, but the forcast for the overall mortgage market is optomistic.

Some strong economy!

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com

The King Is Down..for the day.

Yeah, I predicted a hands-down winner. There was no doubt in my mind, the King
was pre-annointed. Who in the tennis world could possibly equal the smoothest, Zen-like personality of the current number-1?

I was considering joining a friend to make the trip to the Pacific Life Open at Indian Wells next week. And now? Hard to believe, down in the 2nd round. Roger Federer, with a phenominal 41-match winning streak was stopped by Guillermo Canas from Argentina in the second round at the $3.285 million Pacific Life Open.

The Super Swiss 25-year old gentleman has been stopped before, but not since his loss August 16 of last year. It was then that Federer was beaten by Andy Murray in the second round of the ATP Masters Series in Cincinnati.

Federer’s seven straight finals was one short of the final titles won by Bjorn Borg, Ivan Lendl and John McEnroe. His amazing record since the beginning of 2004 is 259-16. An incredible feat.

I sometimes wonder at the impressive accomplishments of realtors competing with the vast number of Agents & Brokers in the South Bay. The Beach Reporter and The Easy Reader testify to the fierce competition that is faced in an ever changing and challenging market.

What was over-the-top pricing and wild pricing records set daily for a few years, has moderated and made it possible to take a more contemplative approach. The winners in real estate emerge from a huge field of competitors not unlike the game of tennis. The difference being that winners in tennis most often emerge early in years, while real estate success is generally built on experience.

As with tennis, in real estate every day is a new day, and perseverance generates an energy and excitement in search of the perfect solution.

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA

310-640-7897
www.KissigRealEstate.com

Real Estate-A Reflection of The American System

President Bush is dealing with various local governments in South America this week, concerning oil, education, the global war on terror, and U.S.-style capitalism vis-a-vis Latin America’s poverty.

I seems, in simplistic terms, that the gigantic gains in local real estate prices in recent years demonstrates the effectiveness of the American lifestyle and capitalistic philosophy. The American real estate paradigm, a segment of the American system, illustrates the effectiveness of this approach to structuring governments and the resulting lifestyles.

Is there a better example of how effectively the American system functions than local real estate?

Feel free to contact me if you need help locating property in So.
California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA

310-640-7897
www.KissigRealEstate.com

So where’s your money?

So where’s your money? Ginepri advances in Pacific Life Open at Indian Wells, CA

American Robby Ginepri was a first-round winner at the $3.285 million Pacific Life Open. And there will be other winners in the early going.

But is there much reason to think that ultimately the winner is in question? Is there any doubt that the winner of the first ATP Masters Series event of the year is a given? It’s almost a shame that a bunch of fine players can play their hearts out, all the time overshadowed by the ominous shadow of the calmly, unflappable 25-year-old phenom Roger Federer, knowing that the odds are, he will prevail.

But play the challengers will, striving to raise their games to a level that is anywhere near perfection. And one day, the unthinkable will happen and there will be a new phenom, a new champion of champions.

Tennis—a challenging way to make a living. Possibly, more tenuous than Real Estate. But both sharing some of the same striving for success. What an unequalled feeling of accomplishment when there’s a solution to a deal, a closed escrow with a happy and profitable conclusion.

I still think tennis is more fun.

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA

310-640-7897
www.KissigRealEstate.com

Online ad spending growth expected

2011 local-search and online revenues to hit $11 billion

According to a forescast by the Kelsey Group, a research and consulting company, online yellow pages and local search
growth is predicted in 2006 from $4.1 billion to $11.1 billion in 2011.

Similarly, the real estate industry is expected to experience dramatic growth in online marketing. One study from the research and consulting company, Borrell Associates, reports that online real estate advertising grew from $1.2 billion in 2004 to $1.7 billion in 2005. Their forecast for 2010 is $3.1 billion.

Those realtors recognizing the potential have been feeling their way into blogging. I, for one, have been feeling my way and spending more time in the process than I ever expected. But I’m convinced it’s time well spent. My web site—www.KissigRealEstate.com— is starting to look like a Christmas tree. Adding Robert’s Beach Blog is just another bobble.

You’ll be hearing more from me.

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA

310-640-7897
www.KissigRealEstate.com

The Way It Was.

“’It seems like only yesterday...,’ so to speak. Driving down Sepulveda Blvd. from Westwood Village in my ‘32 Ford, longboards sticking out of the rumble seat in the rear; we made our first stop at Manhattan Beach, before proceeding on to points south. The only reminders still standing today are a few million dollar clapboard beach houses, the pier roundhouse and Ercoles Saloon.

Beach properties were affordable then, when the beach seemed to have limited attraction mostly for weekenders and vacationers who peferred to stay close to home rather than travel to Catalina Island or Big Bear. That was before the ‘price barrier’ emerged and the beach became stylish.

And this month the median price in Manhattan Beach for townhouses ($1,525,000) has exceeded single family homes ($1,308,000). No matter how you look at it, times have changed.

Like the license plate frame proclaims: ‘Manhattan Beach...Heaven On Earth.’
I’ll be happy to show you around.”

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA

310-640-7897
www.KissigRealEstate.com

Injury to Beckham might affect debut

Manhattan Beach's new celebrity home owner and LA Galaxy's newest super-star acquisition injured!

David Beckham suffers possible knee ligament damage in Real Madrid game and will undergo tests today. He has been set to move to the Galaxy this summer.

By Grahame L. Jones, Times Staff Writer
March 5, 2007

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA

310-640-7897
www.KissigRealEstate.com

It's A Good Time To Consider A Second Home

There's a great opportunity if approached with care and a certain amount of homework. Check it out.

HomeAway, Inc.. surveys report the average weekly rate collected by vacation property owners is $1,656 and that rent is collected 20 or more weeks each year.

That's enough to generate more than $750 in positive monthly cash flow on a mortgage that costs $2,000 a month. The cash flow doesn't include reoccurring costs, beyond the mortgage, associated with vacation rental property, but it also doesn't take into account tax benefits associated with second home ownership.

And there's the invaluable, but tangible personal benefit of owning a getaway playhouse in a world where woe is the norm rather than the exception. The potential is there, but not for everyone.

Buying a vacation home, especially one you're going to rent out, means embarking on a whole new lifestyle. Read up on the subject so you'll know what to expect. Doing plenty of research and making an educated decision will keep your vacation home dream from turning into a nightmare.

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks,

Robert Kissig

Real Estate West
Manhattan Beach, CA

310-640-7897
www.KissigRealEstate.com