EYE ON INTEREST RATES After raising steadily over the past 2 years, mortgage rates declined more than a tenth of a percentage point, dropping back to 6.77% for a 30 year fixed rate mortgage based on a survey of leading mortgage lenders. Rates have not been that low since June 21 of this year.  The good news is that rates appear to be leveling off at less than 7%.  While it's true that rates are higher than they were in the past 4 years, historically they are still very, very attractive.  Need help getting pre-approved for a loan?  Just call (310)306-6525 x166 or email me  dan@danmayrealestate.com

Market Update: Good news for buyers, and not that bad for owners/sellers too!  Experts say the market is returning to more "normal" levels  According to a recent article in the Los Angeles Times Newspaper, real estate industry analysts say that the recession that our SoCal market felt in the 1990's is very unlikely to happen again.  Why? The spike in inventory caused by aerospace industry layoffs and the 8 to 10% interest rates that were present are not in the picture this time.  The area now boasts a stronger, more diverse economy that will insulate the area from a real estate recession. Experts are forecasting that home values will continue to rise in 2006.  They predict a 6 to 7% increase over the median price of $460,000 in 2005.

Many people have pointed to San Diego, where the median home price actually dropped by 1% and sales volume 24% from the same time last year, as an indicator that the LA area would be hit next.  However, the industry analysts disagree.  They attribute the decrease in value and activity to local San Diego conditions, namely the overbuilding of condos in the downtown area. In contrast to San Diego, the rest of Southern California (Los Angeles, Riverside, Ventura counties) increased 7.4% from same time last year to a median value of $494,000.

Economists and analysts also point out that the Southern California area is adding 200,000 to 300,000 new residents each year so the demand for homes is not expected to slow any time soon.  And with the stock market continuing to trade in a tight range, people are keeping their money out of stocks and in real estate.

"MUST HAVE PHONE NUMBERS FOR LOS ANGELES"

1. Austin, TX  4 (2+1) units 3120 sq. ft. of living space built in 1982 generating $28,800 annual income and fully rented. On a cul-d-sac in hot area of town. Asking $246,000 Call (310)306-6525 x166 for more details.

2.San Bernardino, CA. 4 (2+1) units 3,264 of living space recently rehabbed $37,100 income asking $544,900 Call (310)306-6525 x166 for more details.

3. Hollywood, CA 8 units $96,000 Gross Income 13 GRM Asking $1.249M recently reduced  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. http://www.gotexit.net/  I recently attended this seminar.  It is recommended for investors, realtors, and financial professionals.  Helpful overview of exit strategies for highly appreciated real estate owners.

2. Real Estate Investors Answer Book 

3. Professional Networking  LeTip is one of many popular professional networking groups designed to help grow your business also check out www.lincla.com