Month: November 2013

After a slow month of closings in September with 18, the pace picked up a bit in October with 22 Single Family Residences being sold.  A big difference in the past two months is how many homes sold at or above the list price. In September, only six of the sales were at list or higher while 18 were this month. 

Ocean Park charmer goes 275k over asking– 1420 Sunset Avenue, located just north of Penmar golf course, is a 4 bed/3 bath house on about a 7K lot. The square footage was not published in the MLS due to some rooms not being permitted but we heard it was 1800+.  The property was listed at $1.099M and sold for $1.375M. Despite needing some upgrades (especially kitchen and bathrooms) this home got a lot of attention from young families due to its size and large backyard.  They received over 10 offers.   

Thanks to John Ciolino at First Capital Mortgage (contact: 310-656-8201), here is some key information everybody should know concerning their credit.  The better FICO score you have typically means you will be offered a lower interest rate from the bank when applying for a home loan.

1- Is it best to pay off your credit cards in full each month?

No, to maximize FICO score, it is best to leave a small balance.

2- If you have a collection account, is it best to pay it off in full?

No, a paid collection is the same as a collection.  A “paid collection” today hurts FICO scores more than an older “collection”.  Only pay collection if the creditor agrees to “remove” collection. 

3- If I buy new furniture, would my credit be better if I charged it on my Visa or financed through the store with “no interest” until 2017?

“Deferred” debt has a higher default rate and has bigger impact on credit score.

4- Does is it make sense to close old credit card accounts that you are no longer using?

Not necessarily, one of the FICO factors is length of credit.

5- Which is more damaging to credit?

a. 30 day mortgage late on July ’12 on a $1 million dolllar loan  or b. 30 day late on Visa June ’13; $64.00 balance?

The more recent debt has a bigger impact on FICO than the amount of debt!

The strong momentum of the market for both single family residencies and condos is demonstrated in our latest third quarter report.  Some areas see a dramatic increase in price as well as strong reduction in average days on market compared to 2012.  

However, as you have read in my recent blog postings the market is starting to “normalize” above the $1.5 million dollar mark in the past month.  We still see plenty of multiple offer activity on choice properties due to the lack of inventory especially in choice zip codes. 

If you would like more detailed information on a specific zip code or area on the Westside, please shoot me an e-mail at john.skinner@thepartnerstrust.com and we will gladly get the information to you. 


Please click the link below:

The nation’s homeownership rate was 65.1% on a seasonally adjusted level in the third quarter, the Census Bureau reported. Homeownership hasn’t been this low since the last three months of 1995. 

The fact that homeownership has fallen during the housing rebound shows investors have been a major force in sending home prices skyrocketing. Individuals and Wall Street players have descended on the housing market, looking for bargains and cash flow. They have scooped up many lower-priced homes to flip or rent out. Last month 33 percent of all existing home sales in the US went to “all-cash” sales, a massive part of the market. Since the typical American doesn’t have much money saved to purchase homes, these are not your typical first-time home buyers. 

But now, investors have shown signs of pulling back because higher prices have made their investments less attractive. That has raised questions about whether first-time buyers will step in to fill the void, which experts say is key to a continued recovery. 

The homeownership rate peaked, on a seasonally adjusted level, amid the housing boom, at 69.4% in the second quarter of 2004. 

(Sources: LA Times and Doctor Housing Bubble)

A better economic picture sent mortgage interest rates higher this week, with Freddie Mac reporting that a 30-year fixed-rate home loan averaged 4.16%, up from 4.1% last week.

Check out this LA Times article about the future development plans for Santa Monica, especially involving the areas around the new expo rail line which will link the city to Downtown LA. Santa Monica  (2016) is poised for  more growth and depending on people not using cars as frequently.  I sure hope they are correct or the gridlock that is already unbearable in Santa Monica during rush hour will be a true nightmare. 

Link: Santa Monica is bracing for a growth spurt