We have all been anticipating a mortgage rate hike, expecting it to mark the end of an era of low rates and affordable housing. In May, the average loan with a 30 year fixed mortgage was $231,000 with an interest rate of 4.03%. The monthly prinicapal and interest rate payment is $1,107 per month. With an increase in of rates, the same loan at 4.53% would result in a 6% increase in monthly payments, bringing the monthly to $1175. Make it a larger loan, like the ones that one gets in LA and those payments might hurt.

GOOD NEWS!

The Fed decided not to raise its key interest rate in September. America's central bank hasn't raised rates in almost a decade and rates have been stuck near zero since the depths of the financial crisis in December 2008.

Concerns about a global economic slowdown, low inflation in the U.S. and volatile stock markets in August lowered the chances of a September rate hike. The Fed's inaction Thursday appears to confirm that those fears weighed on its decision despite a U.S. economy that's strengthening overall.

Overall, the Fed does sound more optimistic about the U.S. economy. It raised its expectations for economic growth this year to 2.1% from 1.9%, and it lowered its projection for the unemployment rate by the end of the year to 5%. Currently, unemployment is 5.1%.

Lucky for us, it wasn’t enough to raise the rates in September.

The Fed still plans to raise rates this year, according to new economic projections the Fed also published on Thursday. Thirteen of the 17 members of the committee predicted the Fed would raise rates by at least 0.25 percentage points, and six predicted an even larger increase.

Here we go...

Open House Joy 09.15.2015

So obviously, I have neglected the bloggosphere and have dedicated my time to Instagram (@openhousejoy), Twitter and periscope (@susannabe), and my Facebook page (Susanna B. Living). Now you will have the pleasure of yet ANOTHER avenue in which to enjoy my real estate antics, design opinions, posts about whats happening in the coastal regions of Los Angeles and general lifestyle advice.

I think I hear applause.

This week, on caravan day (or Broker's Open House Day in layman's terms) I managed to hit 6 places. I wanted to get to 10 but there was the issue of RAIN. That scary wet stuff that falls from the sky and creates chaos in LA. It was amazing to me how many open houses were cancelled. I am completly perplexed that things even get sold in Kauai or Portland, with all that rain and cancelled open houses. I could do a WHOLE blog just on the ridiculousness of LA rain but I will spare you. Check this out though.

When It Rains In LA

Despite the UNopen houses, I stumbled onto a really cute place in Venice on Marco Place. I like this street for a variety of reasons. I generally prefer the east of Lincoln area of Venice because there is more space, also, it is down the street from Superba Food and Bread. LOVE that place. They have this flaky croissanty thing with a fruity essence to it. It is so yummy. I think I could write a whole blog on just THAT. Maybe I will… Anyway... The house was built in 1927 and is a Spanish/Mediterranean style bungalow. There are trees growing out front and my initial reaction was “Small...dark”. I was so pleasantly surprised when I entered it. It was airy and light with white walls and nice wood floors. The living room flowed into the dining area that had been converted into a workspace with built in desks and then into the white and cheery kitchen. The kitchen opened up to a nice wooden deck and out to the garden that was lovely with raised beds. There is a converted garage with wood floors that would be a great office or studio. There was a great painting in there of 2 ½ baby/1/2 chicken/ostrich creatures. I wanted it. The house has 2 bedrooms that were both decent, the front one had sort of japanese inspired cabinetry in it. It looked good in the space. 2+1, 940 square feet on a 4000 square foot lot. The studio added some square footage and despite the seemingly small size, it felt spacious. Just as it is, this place would work well for a couple with or without a smaller child. It wasn’t updated and “modern” but I appreciated the charm of it and felt it was move in ready. At $1.25 million, it wasn’t an awful deal for the area. $1329 per square foot is on the higher end but that area is really so nice. The average cost per square foot is about $950 in this area. That being said, the avergae cost of a house right around here is $1.6 million.

Down the street was another house. $995K, basically a tear down. actually delete “basically” It was a tear down. The lot is 4270 square feet, so slightly larger than the one down the street. The people that lived in it really made the most of the trashiness of it. The bathroom has been painted in a green/grey/white/pink crackle peel finish that made my head itch. I will be interested to see what happens there. There were alot of developers creeping around.

The was one house I was really excited about seeing. It was the description of it that got me. It was described as “Imposing yet alluring”. What do you think of this? My thoughts are that the word imposing, though it is techincally not a bad word, sounds, well...bad. Imposing is majestic, grandiouse, stately. Pair that with the word “yet” and it gets a totally negative spin. It is SO important to write these things in a way that are appealing. I thought “Oh, a huge house that the neighbors hate because it is imposing on their light and space and YET, it is alluring” I wanted to see this thing. Because we were in the middle of a rainy apocalypse, the open house was canceled. I stood outside, in the blaring sun, first wondering if I had enough sunscreen on and secondly about all the imposing attributes of the property. Imposition #1. The Santa Monica airport VOR beacon is RIGHT there. That is that weird looking trampoline like thing at the end of the runway. Yes, I said “end of the runway”. ALSO, right there. Imposition #2 Who wants small aircraft flying 45 feet over their house? That would definaitely be an imposition to me as I lounged in my oversized imposing yet alluring bedroom on a Saturday morning. Imposition #3. Have you seen the traffic there on any given weekday at about 4pm? It is enough to make you chew your arm off. Imposition #4- It’s not raining. I’m here. Let me see the house. The description of the house also included “Boutique style closet that will be a challenge to fill” All I could think was, I wonder how many Syrians could live in it? Yes, we all would like a big closet, but this one sounds too big? Do any of us really need that much stuff? OK..So It isn’t all negative. There IS the fact that Harrison Ford crashed his plane right across the street in the golf course. You could have saved him and he and Calista would be your new besties. And that view to the park is nice. I am sure the house is gorgeous and the area is fantastic despite the planes. The schools around there are wonderful and its very centrally located for those who like to hang in Venice, Culver City and southern Santa Monica. This house was a 5+5 with 4500 square feet of interior space. That’s alot of house- not easy to find around here. It sits on an almost 10K lot, also hard to find around here. So it does have its upside. Listed at $3.395 million or around $750 a square foot which for Santa Monica is a great deal. I am looking forward to seeing the inside of this mostly alluring place.

There is a great place on Rose with a view- Well done, nicely renovated. This would be a great house to entertain in. Great open kitchen and living room that opens up to a paved deck. This is a 3+4 with 2265 square feet of living space on a 6721sq ft lot. There is a roof deck where one can see the ocean. Listed for $2.025 million.

So, maybe I was a little snarky today. It happens. One thing you can always count on with me is that I will always tell you the truth and give you my opinion….I will consider your needs and do my best to find your perfect place or get the most for your home if you are selling. Just sayin...