EYE ON INTEREST RATES Fixed rate mortgages continued to climb this week.  According to a national survey of mortgage lenders, rates for 30 year fixed-rate mortgages averaged 6.375% this week, up from 6.25% last week. Rates for Jumbo loans, loans for more than $417,000, climbed to 6.5% up from 6.375%.  The last time rates were at these levels was July of 2002. Need help getting pre-approved for a loan?  Just call (310)306-6525 x166 or email me dan@danmayrealestate.com 

Typical LA County Home Now Costs Half a Million

As reported in the April 13th edition of the Los Angeles Times, for the first time ever, the median price of a home in LA County is now above $500,000.  It is noteworthy that the median price has doubled in just 4 years.  No wonder that with such a rapid increase, Southern California communities are often listed as some of the nations "most over-valued areas".  

In March of this year, the median price of a home in LA County jumped 15% from 2005 to $506,000 according to Dataquick Information Systems, a San Diego real estate research firm.  Therefore LA County has now joined San Diego, Orange and Ventura counties in crossing the half million dollar mark, which keeps Southern California among the nations most expensive housing markets.   

In order to qualify for the median priced home, a household would need annual income of approximately $120,000 and have a 20% down payment.  However, the median household income for the county is $47,000.  

Such high values and low affordability have raised the concerns about a repeat of the last time LA's real estate market went from hot to cold.  From 1991 to 1996 local home prices fell nearly 20%, one of the few areas to experience a decrease in the 90's.  However, economists claim that a lot has changed since then. The region is much less dependent on one industry, such as aerospace, where a high number of layoffs due to defense cutbacks sparked the real estate decline.  There is also much less homebuilding than there was going on 15 years ago and mortgage rates are much lower. 

***** Investors Corner*****

1.  Albuquerque, NM  13 units  (12) 1+1 and (1) 3+2  Scheduled Gross Income $61,980 Drive-in garden type property with 6 duplexes and a 3br house Asking $475,000  Call (310)306-6525 x166 for more details. 

2. Phoenix, AZ  15 units built 1986  (10) 2+1 and (5) 1+1 on 10, 420 sq. ft. on .59 acres (2) 2 story block construction buildings in East Phoenix, 5.50% CAP 6.14% Cash on Cash Asking $895,000  Call (310)306-6525 x166 for more details. 

3. Hollywood,CA  10 units (9) 1+1's and 1 single Scheduled Gross Income $112,800 built 1979 NO RENT CONTROL! Asking $1,375,000 Call (310)306-6525 x166 for more details.

 "Links of the Month” See below for the (3) real estate related websites you should visit 

1.  Consumer Credit Counseling Services, Los Angeles

2.  Wall Street Journal Real Estate Discussion Section

3.  Comprehensive Source for Home Design and Plans