Timely Real Estate News………………………………………..17 December 2007
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Happy Holidays…..brrrrrrr! Baby, it’s cold outside
Yes, it certainly feels like the Holidays. Winter surely arrived early — but you know what?….it’s fun to bundle up in your warm overcoat, put on some of those gloves and toss that wool scarf you never seem to wear around your neck and head out to do your holiday shopping. I love the holiday season — the parties, the decorations, seeing friends and lights every where. Puts a big smile on my face…so I do hope that all of you have a wonderful Holiday season. We, indeed, have much to be thankful for as we end our Year 2007.
So, what gives with the market these days?
The housing market, in general, has been experiencing challenging times as you know. And one of the sure signs that we are seeing a slowing down in home sales (as reported in my last Schiffer Line on December 4), inventories are up, sales are down, but prices remain steady for our communities of Beverly Hills, Brentwood, Bel-Air, and Beverly Hills Post Office. That is the good news.
The bad news? If you’re in the market to buy a home, it is going to be tougher to get the loans on terms that we have enjoyed for so many years. There are two big issues facing us:
1) The loan-to-value ratio is going to be changing with major banks early next year– on a general basis, buyers are going to have to put more money down — 30% or more according to John Ciolino of First Capital Mortgage,
2) Also credit scores are being looked at more closely — someone with a credit scores in the high 600s, who would normally not have to pay a point at the most for their loans, will now be paying two points. Loan applicants with credit scores in the 700s, will be paying one point — where before, they paid none.
And with mortgage rates climbing this week according to Freddie Mac, we have been enjoying a relatively low-interest environment for the past two years. Higher rates, increased credit scrutiny and higher down-payment requirements all add up to stiffer challenges for both buyers and sellers.
As I have been pointing out over the past several years, when the market began tightening up, buyers and sellers have to be more considerate of existing market conditions — the feeding frenzy of multiple offers and zooming real estate prices are for the most part a thing of the past, though we are still seeing multiple offers. As we all know, the real estate industry — like everything else — is cyclical. But for now, be patient….watch your credit scores…and be prepared to put more down on your next purchase than you have had to in the past.
The 405 and Sepulveda Pass Project
There is a lot going on right now regarding this very important project – The reverse lane project on Sepulveda is slated to being in March of 2008, but in checking it appears that most likely will be delayed as well, I am not sure for how long. As for the proposed changes on the 405 for the car pool lane, the final EIR/EIS report is going to be ready for approval in late January 2008. In the meantime, a host of community organizations, homeowner groups, including Bel-Air Crest Association and individuals (including yours truly), are meeting within the Los Angeles Department of Transportation (LADOT) over the next several weeks to discuss specific projects within the overall program.
There are a myriad of planning details that are being worked on by hundreds of dedicated and interested citizens. it appears that the LADOT is listening — and I’ll keep you up to date on all of this.
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Going Green with Green Tips
For the new year with the SchifferLine, I am going to be passing on to you “Green Tips” — a selection of recommendations from various sources on living “Green”. If you have a suggestion you’d like to include in our Green Tips…please forward them to me and we’ll pass it along to all of our neighbors, too.
For a start, I am sure we all have seen the term “sustainable” in the markets, restaurants, etc. That pertains to flooring as well.. so the Green Tip of the day is to consider some materials other than the normal, carpeting or wood… one of the solutions to replace wood is bamboo as it is sustainable (replaces itself faster) than a tree obviously would. Another more obvious solution would also be stone floors. The chemicals in the carpet and padding are not considered green products.
Again, if you have any suggestions, please do pass them along.
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Have a Happy Holiday and enjoy your family.
