Lowest Interest Rates in 50+ Years

The e-mails from the lenders are pouring in to my inbox this morning. As of this morning, the 30 year fixed Fannie Mae Rate (conventional loans) is now 4.375%, and the FHA 30 year fixed is 4.750%!!! Even Jumbo 30 year fixed rates to $3 million are now 5.375%!!! And, if you're willing to pay a point (not a bad thing if you plan on living in your home for several years), your rate can be even lower, saving you thousands over the life of your loan, and maybe hundreds off your payment now.

Get on board with the new buying opportunity! Please contact me immediately if you would like to be prequalified for a higher purchase price.

The Cost of Waiting to Buy

I couldn't possibly say this any better, and I've been saying it in the past in several different ways, so I'm going to give you Pat Zaby's article on the topic:

Cost of Waiting to Buy by Pat Zaby

The financial news is full of stories warning about the inability to predict the bottom of the stock market. A 40% decrease in stock prices in one year have uncovered some great values available for investors and buying them at their absolute lowest price will not make much difference for the people who hold them for a while.

Home prices are very much the same. There has been a correction in the market and prices are down in most parts of the country. Combine these with the attractive rates currently available and it is a bargain that everyone will look back on saying that "this was the best time to buy."

Let's make an assumption that the prices may still decline 5% more before they start appreciating again. If while a buyer was waiting for the price on a $250,000 to go down 5% to $237,500, and the interest rate goes up one percent from 5.25% to 6.25%, which is entirely possible, the buyer's monthly payments will increase almost $79 per month.

For most buyers, the monthly payment to control the cost of the home is much more important than the price paid or even the equity in the home.

Or, read on about Warren Buffett's response to the current economic situation, where he says he's never seen people so fearful as now, BUT, he's buying.

Real Estate Downfall, or "Life in the Bunkers"

Taking a break from serious writing here ... (by the way, my last You Tube post was a nice piece on home staging):

What's For Sale in Long Beach under $300,000?

In October, 2007, I wrote a post about properties under $300,000. The picture has changed considerably:

Then, there were 360 houses, condos, co-ops, and own-your-owns available in Long Beach. And now, there are 737 in the same category under $300,000. That's DOUBLE the inventory in that price range! And, the bonus is that right now interest rates are even lower, and may go as low as 4.5% for a 30-year fixed (see Treasury Considers Plan to Stem Home-Price Decline ), and even as we write, the mortgage applications more than doubled last week. Lots of loan guidelines have changed in the last year--one of the important things to remember is that a decrease in your interest rate lowers your payment immediately, as opposed to trying to save more money for your down payment. Try an internet real estate calculator to make simple P&I comparisons.

In the meantime, what is available for about $250,000? MLS P665655 (listing photos shown) is a one-bedroom condo in Stoneybrook, a nice condominium association on the edge of Alamitos Heights and a 5-minute drive to Belmont Shore. List price is $251,000, 13 days on the market as of today, and the association features a beautiful planted landscape with walkways and streams, spa, sauna, two swimming pools, a large clubhouse, tennis courts, weight and locker rooms. Gated parking is located under each condo building, with elevator access to upper floors.

For more info on this or other buying opportunities, just contact me!

Holiday Things to Do and See in Long Beach

If you were a tourist in the area, what would you like to visit? (Or, maybe you live here, but you're looking for something to do in the holiday period.)

The Long Beach Museum of Art, in a former turn-of-the-20th-century residence, is on the bluff overlooking the Pacific Ocean, with Claire's Cafe, outdoor sculpture, and recent gallery addition.

The Aquarium of the Pacific has winter day camps, educational programs for children, holiday events, harbor cruises, the aviary and the Shark Lagoon, an online learning center, and many many exhibits throughout its halls. Not to be missed. And visit the Queen Mary's hotel, ballroom, restaurants and shops--this is a historic ship still retaining many original features. El Dorado Park is one of the largest area parks in Los Angeles County--ponds, ducks, lots of parking, and has a Nature Center with walking trails.

And, for more gardens, visit the Earl Burns Miller Japanese Garden at CSU Long Beach. The campus is also home to the Richard and Karen Carpenter Performing Arts Center, and its holiday schedule of events--easy parking access off of Atherton.

For an easy walk over water, try the Belmont Pier or the Seal Beach Pier just over the line in Orange County. You might be there in time for the Christmas Parade in Belmont Shore or the Seal Beach Christmas Parade in Old Town, or take a holiday boat ride for the Harbor Lights.

If you're looking for property while you're here, please visit my property search page, or give me a call at 562-896-2609.