Hello Hill Section People,

Fall has fallen, and the days grow shorter, and even as we continue to have the summer we already had, the real estate market in Manhattan Beach remains as hot as it ever has.  An interior lot on The Strand just sold north of $13 Million Dollars!  That means that prices in the hill section may also be poised for more increases, especially at the higher end of that market. Call me if you want to know what your home might be worth in the current marketplace.

But that is not what I wanted to speak with you about.  I wanted to talk briefly again about income property.  Low interest rates have made real estate investment even more attractive than ever, because so many more properties make sense now.  The idea that you can buy a single family residence with 30% down and rent it out and actually MAKE money would have been absurd to think just a few years ago.  And larger buildings make even more sense.  Real estate is the ONLY investment vehicle that gives you all four benefits of ownership:

1)   Cash Flow that increases over time

2)   Tax Benefits that help offset your cash flow

3)   Equity build up –tenants liquidate your debt

4)   Appreciation – this is the big one

The Beach Cities are an excellent place for such investment.  If you have never invested, I can help you make that first step.  If you are a seasoned investor, I can help you realize greater cash flow and adjust your portfolio to your needs.  We even have a full service Property Management company to handle everything.

Let Freedman Ring for all of your real estate needs.

I hope your Spring is going well.  As the attached chart shows, the local real estate market is still on fire, marked by low inventory that is driving higher prices for many properties.  Multiple offers on listed properties are more the norm than the exception.  The entire South Bay is in a similar spot.  But it must be noted that that the entire country is not enjoying this type of real estate market.  Our area feels like it is part of a resurgent economy.  And, in fact, our little snapshot of the world is doing pretty well indeed.  So, it begs the question: how long is it going to last?  If the government continues to help hold interest rates down, and the result is not a vibrant economy nationwide, what will happen when rates inevitably rise?

It is conceivable that the market we are currently enjoying in Manhattan Beach will hit a wall.  Even with low interest rates, when market resistance develops to rapidly rising prices, some buyers may hold off making decisions.  This would result in more inventory, causing sales volume to slow down, and prices to plateau, and ultimately fall.  There are no signs of this in our current environment – but eventually it will change.  The point is that we are in the garden spot – the prime part of the market when everyone looks like a genius.  It’s Spring, inventory is really low, and prices continue to rise.  So if you are thinking about selling over the next 12 months NOW may be the perfect time to do it.

 

Active

Backup/

Months of

Sold

Listings

Pending

Inventory

Thru 4/14/14

Manhattan Beach

58

63

0.92

88

Tree Section

12

19

0.63

21

Sand Section

18

14

1.29

27

Hill Section

6

6

1.00

10

East Side

22

24

0.92

30

 

Perhaps you are thinking of selling, taking advantage of your capital gain exclusion and pulling equity off the table by downsizing.  Or maybe it’s time to take advantage of your increased equity to get a larger home for your growing family and locking in a great long term interest rate in the process.  THIS may be the best chance to do this that we may ever see again.  It may seem like hyperbole, but I truly believe it.

I pride myself in my ability to walk my clients through the process of analyzing their real estate goals and achieving them.  Whether purchasing a new home or investing in other property, I can help you clarify your purpose.  Is this the right time for you sell, buy, invest?  Let’s talk about it.  It costs you nothing, and I promise you will gain from the conversation, whether we wind up working together or not.