"Palos Verdes Resident since 1947"

July, 2013, Newsletter

Dear Neighbor: 

As I said in my March newsletter, “it’s just a matter of time (and not much time) before rates rise”.  Well, that time arrived last week as you probably heard on the news.  30-year fixed rates on loans over $730,000 have shot up to nearly 6% from around 4% a month ago.  Though it may look high, 6% is still low by historic standards (my parents loan on Pleasant Hill Drive was 6.25% in 1963), and it’s a pretty safe bet that it will look real good in 6-12 months.  Needless to say, after the initial flurry of buyers trying to lock in a loan, this rate rise will have a negative effect on prices.  If you follow this stuff, you know that this rise was apparently caused by the Fed’s hint that they may stop the bond buying program that has helped keep rates low. 

As I say, while 6% may look high now, accustomed as we have become to 4%, a look at the last 40 years will demonstrate how low 6% really is.  When I got into this business 30 years ago, 30-year fixed rate loans could not be had under 14%.  So if you’re thinking of buying, re-financing, or selling, I’d be getting it in gear.  My crystal ball is out of warranty, but many are saying that this could be the start of a long-term rise in interest rates. 

All the listings I mentioned in my last newsletter have sold.  Meanwhile, I have a lovely 2440 square foot 5 bedroom 2.5 bath home with rare 3-car garage in Los Verdes that will hit the market at $1,099,000 about the time you receive this.  Rather than try to cram it in here, go to my website, www.DanaGraham.com for pictures and description.  I will have another home of over 2700 square feet and remodeled in the same general area for about $1.2 million before the end of July.  By the time you get this I will also have a highly desirable 2 bedroom 2.5 bath end unit townhouse in The Gardens (off Western) for $399,500.  So call me if any of those are of interest to you – 310 613-1076.

Lastly, in a [some would say] crazy market such as we’ve been [ahem] enjoying, having an experienced agent on your side can make a big difference.  Apart from knowing where the best loans are (this can help even when you’re the seller because if the buyer can’t get his loan, you have no sale), knowing the best way to handle the frequent “multiple offer situation” common in a frenetic market can greatly increase your chances of getting the highest possible price.  It can also eliminate your chances, in the heat of the moment, of simultaneously selling your house to more than one buyer.  I’ve seen this happen (never to my clients) and it’s not pleasant.  The media has recently discovered “pocket listings” so I’ll probably put an article on my website about that, but call me if you just can’t wait.  My clients also have the benefit of all the skilled and reasonable tradespeople I’ve accumulated over the years:  for example, I have people who can sell your unwanted stuff so you not only don’t have to pay to move it but you get money for it, as well as people who can cost-effectively fix pretty much anything in your house either before we go on the market or anything we agree to during escrow.  See “Testimonials” at the top of my website for what my past clients say.

Thank you again for your continued support, and I look forward to hearing from you.

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