Venice Style E-Newsletter February 2008

VENICE REAL ESTATE MARKET UPDATE

President Signs Economic Stimulus Bill ... Includes Raising Conforming Loan Limits

Yesterday, President Bush signed off on the $168 billion stimulus packaged approved by Congress last week, which, in addition to tax rebates for millions of working Americans and business owners, includes a vital, but temporary increase in the conforming loan limit. The economic stimulus package will allow the Federal Housing Administration, as well as Fannie Mae and Freddie Mac to offer mortgages above the current conforming loan limit of $417,000 to as much as $729,750 in high-cost areas for loans originated between July 1, 2007 and December 31, 2008.

Raising the conforming loan limits to more accurately reflect the cost of housing in California and other high-costs areas of the nation has long been a top California Association of Realtors® objective. Currently, Californians are forced into more expensive non-conforming jumbo loans, decreasing homeownership opportunities for many and forcing others into more costly – and often riskier – loan products.

“The actions of Congress and our president represent a significant victory for homeowners across the state and nationwide,” said C.A.R. President William E. Brown. “C.A.R. has long fought for increases to the conforming loan limit in order to close the gap for would-be home buyers in high-cost areas, such as California, and, with the spotlight now fully shining on this important issue, will continue those efforts and push for permanent changes beyond December 31.”

The increases call for raising the conforming loan limits to 125 percent of an area’s median home price capped at $729,750. U.S. Housing and Urban Development Secretary Alphonso Jackson will have up to 30 days to determine exactly what the loan limits for high-cost areas will be and, once those amounts have been made public, C.A.R. members will be notified.

In our area this means that many properties are now eligible for the lower-interest-rate conforming loans. For properties which require a somewhat higher loan, buyers can still take advantage of the higher limit with either a higher down payment and/or a second mortgage to make up the difference.

If you wish a referral to a local lender ... give me a call !!!

JANUARY 2008 VENICE SALES

For a look of all of the Venice property sales by month since 1999, visit my web site at http://venicebeachliving.com/sa/index.html.

THREE-YEAR COMPARISON
SINGLE FAMILY HOME SALES 2005 THROUGH 2007

Below is a series of charts comparing various sales statistics for single family home sales in Venice over the past three years. The data has been meticulously compiled from the Multiple Listing Service and DataQuick; thus offering a more accurate picture than the data from either alone can provide.

The graphs tell the picture ... the number of sales has declined significantly ... however, the prices for those properties that have sold are remaining relatively stable.

With over 20 years of selling Venice real estate behind me, I do know that the record increases in prices that Venice has seen is, in part, due to the tremendous amount of remodeling, additions and new construction that has occurred. This is a factor that is difficult to access ... but a real part of the equation that must be considered when pricing a property for sale.