October 2013

from your neighborhood real estate experts

Home Prices Rising at Fastest Pace Since Start of Bubble
The S&P/Case-Shiller home price index for 20 major metro areas released Tuesday offers the latest sign of runaway price inflation earlier this year, amid short supplies of homes for sale, heavy demand, and very low mortgage rates. Prices tend to slow down after June, but the July report showed still strong price gains. Prices rose by 1.8% from June, the largest June-toJuly increase in the 14-year history of the 20-city index. The year-to-date gains, however, are the most eye-opening. Prices in July stood 11.2% above the level of December 2012. By contrast, prices in the same period last year were up 5.8%. In 2004, prices rose by 11.3% year-to-date through July. The Case-Shiller index tracks home prices on a three-month moving average; Tuesdays report measured prices on home sales that were recorded in the May-to-July period, and buyers would have closed on contracts to buy those homes one or two months before then. Rising mortgage rates could ultimately slow the pace of price gains, though the supply of homes for sale still remains quite tight in many parts of the country. Nick Timiraos The Wall Street Journal
Coming Down To Earth
After a torrid and unrelenting increase in mortgage rates since May, the rate bubble finally burst and mortgage rates have started to fall to less scary levels. Rates have improved by % and more with further improvements expected. We are still far off the interest rate lows seen in the early parts of the year. How far down rates will go is obviously unknown. For me however, the big change is that we have seen a big momentum shift in the bond market (the bond market in essence set mortgage rates). While before last weeks Fed meeting all indicators pointed to continued rate hikes, the Feds surprising decisions shocked the market into a 180 degree turn-around. The mood has completely changed. However, there are a few threatening clouds on the horizon. So much will depend on how many jobs were created in August. Another factor is how the political grid lock in Washington DC is evolving. A quick resolution to a possible Government shut down has the potential to push rates higher. This could actually be a good moment in time if you are looking to buy or sell a house. Rates are lower again, so the affordability of homes is still fantastic, enticing new buyers to enter the market. On the other hand, home values have appreciated markedly from last year, seemingly forming a mini-bubble and giving a great opportunity for many home owners to sell after years of bad news. The last six months sharp rate increases has slowed the housing markets momentum, hurting both buyers and seller. The last 10 days much hoped for decline in rates now has ensured that both the home affordability is staying positive while at the same time it has the great potential to revive the momentum in the housing market. I would call this a win - win! Stephan Wiederkehr South Bay Equity Lending Direct: 310-872 9039 stephan@southbayequity.com
This letter and any information contained herein is intended for general informational purposes only and should not be construed as legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek competent professional advice and/or legal counsel with respect to any matter discussed in the newsletter.

Marco Pirozzolo
Realtor
CA BRE License #01918280 NYS DOS Brokers Lic #30PIO900998 Direct: 310.975.5765 mpirozzolo@coldwellbanker.com

Wondering How Much Your Home is Worth?

How has the price of your home changed in todays market? How much are other homes in your neighborhood selling for? If youre wondering whats happening to prices in your area, or youre thinking about selling your home, WE CAN HELP YOU! Just give my office a call for a nofuss professional valuation.

THIS NEWSLETTER IS NOT INTENDED TO SOLICIT PROPERTIES CURRENTLY FOR SALE.

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October 2013
RECENT SOLDS FROM THE "THEMLS"
Properties Sold Within the Last 30 Days in Areas 1660 & 1659 S. Redondo Bch West of PCH As of 09/26/13 Address Area Orig List Price $799,000 Beds Bath Square Feet 3 2 1,130 Land Size 6,216 Pool Y/S N Year Built Date Listed Date Sold Price Status Days on Sold Price Per/SqFt Market
Pending Price

Mamma Adelinas Recipe Corner

Recipe of the Month: Hand Made Tagliatelli
We just purchased the amazing Imperia pasta machine so that Mamma Adelina can show us how to make home made Tagliatelli. The following recipe is what you will need to prepare the dough and the technique needed: 1 Cups of Bobs Red Mill Semolina Flour. tsp. Salt, optional. 2 Eggs or 3 Egg Whites, beaten 2 Tbsp. Olive Oil. Combine Bobs Red Mill Semolina flour and salt. Add beaten eggs water and oil. Mix to make a stiff dough. Knead 10 minutes or until dough is elastic with the palms of your hands. Wrap dough in a towel to rest for 20 minutes. On a lightly floured surface (semolina) roll out to desired thickness then feed to desired thickness in the pasta-cutting attachment. For more info on how to cut the pasta go to: http://www.youtube.com/watch?v=bZl Qqq1svRk

1219 Ynez Ave

1660

1951 07/31/13 09/25/13 $825,000

$730

SOLD

17

1208 S Gertruda 1660 Ave

$800,000

1,112

5,846

1950 07/25/13 08/15/13 $815,000

$733

SOLD

406 Ave D

1660

$949,900

1,664

5,003

1950 08/21/13 09/11/13 $957,000

$575

SOLD

33

438 Ave E

1660

$929,000

1,363

5,765

1955 07/30/13 08/27/13 $940,000

$690

SOLD

18

228 Ave E

1659 $1,299,999

2,343

6,016

1929 06/14/13 09/11/13 $1,150,000

$491

SOLD

51

733 Sapphire St Listing Count 6

1660

$969,000

1,374

4,640

1921 06/26/13 09/04/13 $939,000

$683

SOLD

18

$957,817

Avg

1,498
Avg Discount from List Price to Sale Price: 98.74%

$937,667

$650

24

Property Type Count: 6 Avg Orig Price $: 956,817 Avg Square Feet: 1,498 Avg Price $: 957,817 Avg LP/SF $: 650 Avg Sale Price $: 937,667 Avg DAYS ON MARKET: 24

J Mitchell Design
Wine Cellars & Storage www.jmitchelldesign.net 310.850.2575

Winner of Starbucks Gift Card

Congratulations to Barbara Melson of Manhattan, NY for winning the Starbucks Gift Card Trivia Question Last Month! Answer: Midnight in Paris

This letter and any information contained herein is intended for general informational purposes only and should not be construed as legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek competent professional advice and/or legal counsel with respect to any matter discussed in the newsletter.

THIS NEWSLETTER IS NOT INTENDED TO SOLICIT PROPERTIES CURRENTLY FOR SALE.