Real Estate_LA

REALTOR® Magazine-Daily News-Mortgage Rates Continue Record Slide

2010-11-12T14:33:00.000-08:00

REALTOR® Magazine-Daily News-Mortgage Rates Continue Record Slide

Daily Real Estate News | November 12, 2010 |

Mortgage Rates Continue Record Slide
Freddie Mac reports that rates on fixed mortgages again fell to their lowest levels in decades this past week, with the average interest on 15-year loans dipping to 3.57 percent from 3.63 percent a week earlier, and the average interest for 30-year loans sliding to 4.17 percent from 4.24 percent. That is the lowest since 1971.

The impact of the favorable borrowing costs is being muted somewhat, however, by a high rate of joblessness, foreclosures, and tight credit.

Source: Boston Globe (11/12/10)

Pending home sales index rise 5.3% in March - latimes.com

2010-05-07T09:25:00.001-07:00

Pending home sales index rise 5.3% in March - latimes.com

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Real estate: Flipping houses is back in South Los Angeles - latimes.com

2010-05-03T08:40:00.001-07:00

Real estate: Flipping houses is back in South Los Angeles - latimes.com

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Housing starts rise a modest 1.6% in March

2010-04-19T08:52:00.001-07:00

Housing starts rise a modest 1.6% in March

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On the Market: Short sales

2010-04-19T08:49:00.001-07:00

On the Market: Short sales

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Freddie Mac reports rise in mortgage rates

2010-04-09T10:33:00.001-07:00

Freddie Mac reports rise in mortgage rates

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Hope for California's future?

2010-04-09T09:50:00.001-07:00

Hope for California's future?

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REALTOR® Magazine-Daily News-Bankers: The End of Foreclosure Crisis Is Near

2010-02-26T14:59:00.001-08:00

REALTOR® Magazine-Daily News-Bankers: The End of Foreclosure Crisis Is Near

Bankers: The End of Foreclosure Crisis Is Near
The Mortgage Bankers Association is seeing signs that the foreclosure crisis is ending.

“The continued and sizable drop in the 30-day delinquency rate is a concrete sign that the end may be in sight,” says Jay Brinkmann, MBA’s chief economist, in a published statement.

Brinkmann said that normally there is a large spike in short-term mortgage delinquencies at the end of the year because of high heating bills and holiday expenditures. This year, there was not only no spike, but the 30-day delinquency rate actually fell from 3.79 percent to 3.63 percent.

Thirty-day delinquencies have historically been a leading indicator of serious delinquencies and foreclosures, Brinkmann said.

“[This] gives us growing confidence that the size of the problem now is about as bad as it will get,” he said.

Source: Mortgage Bankers Association (02/19/2010)

REALTORÂ® Magazine-Daily News-Fed: Interest Rates to Remain Low

2010-02-26T14:59:00.000-08:00

REALTORÂ® Magazine-Daily News-Fed: Interest Rates to Remain Low

Fed: Interest Rates to Remain Low
Investors breathed a sigh of relief Wednesday when Federal Reserve Chair Ben Bernanke told Congress that interest rates are likely to remain low for an extended period. The economy, he said, "still requires support for recovery."

Investors see these low rates as a boon to a recovery of employment and business.

Bernanke’s announcement also took the edge off the news Wednesday that housing sales hit a new low in January.

"Even though nothing he said was particularly new, it was just enough to calm the ruffled feathers that were out there," said Jim McDonald, chief investment strategist at Northern Trust in Chicago.

Source: Associated Press, Tim Paradis (02/24/2010)

REALTOR® Magazine-Daily News-Expanded Tax Credit Offers Big Opportunity

2010-01-15T11:47:00.001-08:00

REALTOR® Magazine-Daily News-Expanded Tax Credit Offers Big Opportunity

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Mortgage rates edge down

2010-01-14T12:59:00.001-08:00

Mortgage rates edge down

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Report: California foreclosures drop in December

2010-01-13T16:10:00.001-08:00

Report: California foreclosures drop in December

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The Paraty House by Marcio Kogan Architects » CONTEMPORIST

2010-01-12T15:07:00.001-08:00

The Paraty House by Marcio Kogan Architects » CONTEMPORIST

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10 years...no gain in home prices

2010-01-11T10:54:00.001-08:00

10 years...no gain in home prices

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Realty Times - Washington Report: REO Discontent

2010-01-11T10:51:00.001-08:00

Realty Times - Washington Report: REO Discontent

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Schwarzenegger proposes tax credit to spark new home building - Sacramento Business, Housing Market News | Sacramento Bee

2010-01-08T13:34:00.001-08:00

Schwarzenegger proposes tax credit to spark new home building - Sacramento Business, Housing Market News | Sacramento Bee

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Housing may be headed for double dip - Real estate- msnbc.com

2010-01-08T13:33:00.001-08:00

Housing may be headed for double dip - Real estate- msnbc.com

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Mortgage rates drop to record lows -- for those who can qualify

2009-12-01T08:55:00.001-08:00

Mortgage rates drop to record lows -- for those who can qualify

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Mortgage rates drop to record lows -- for those who can qualify

2009-11-27T16:07:00.001-08:00

Mortgage rates drop to record lows -- for those who can qualify

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You may qualify for a home-buyer tax credit -- latimes.com

2009-11-11T00:13:00.001-08:00

You may qualify for a home-buyer tax credit -- latimes.com

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Obama Signs Extended Tax Credit into Law

2009-11-06T18:14:00.000-08:00

Expected to contribute approximately $22 billion to the economy, Congress overwhelmingly passed a bipartisan measure this week extending the $8,000 home buyer tax credit to April 30, 2010.

The legislation, which is part of a larger bill that also extends unemployment benefits, was signed into law by President Obama today.

More people are now eligible to take advantage of the law, which includes a $6,500 tax credit for buyers who are current home owners and have lived in their home for five of the past eight years.

Income limits for eligible home buyers were also expanded to $125,000 for single buyers and $225,000 for couples, up from $75,000 for individuals and $150,000 for couples. Qualifying home prices are capped at $800,000.

NAR's Government Affairs Division has compiled facts on the changes made to the current tax credit. NAR members sent more than 500,000 letters to leaders in Congress and made nearly 13,000 telephone calls to Senate offices last weekend to encourage support. So far this year, REALTORS® have spent nearly $14 million lobbying Congress, according to federal campaign finance records compiled by the Center for Responsive Politics.

Sen. Johnny Isakson, a Georgia Republican and a former member of NAR, was key in extending the credit, as well as pushing it through initially. Other prominent boosters include the National Association of Homebuilders and the Mortgage Bankers Association.

Listen to NAR President Charles McMillan's podcast announcement.

NAR economists estimate that approximately 2 million people will take advantage of the tax credit this year.

Sources: NAR and The Associated Press, Julie Hirschfeld Davis (11/06/2009)

REALTOR® Magazine-Daily News-Big Rebound in Existing-Home Sales

2009-10-24T10:39:00.001-07:00

REALTOR® Magazine-Daily News-Big Rebound in Existing-Home Sales

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Fewer short sales are coming up short

2009-10-24T10:25:00.000-07:00

Carolyn Said, Chronicle Staff Writer

Wednesday, October 21, 2009

That transaction, in which borrowers sell their house for less than they owe, has earned a reputation as a frustrating morass with banks taking weeks or months to respond to offers and then often rejecting them. Because lenders swallow a loss on short sales, they have the ultimate say.

But now real estate professionals and banks say the logjam is starting to ease, with decisions coming more quickly, more short sales trading hands, and the prospect of a new Treasury plan that will further lubricate the process.

"A year ago I wouldn't touch a short sale," said Kevin Kieffer, a Realtor with Keller Williams Realty in Danville. "It would be random prices banks wouldn't agree to, you would be tied up six months hoping to get a property sold. But now we're seeing banks up front negotiating prices and giving us criteria. They're getting creative to make things move."

An analysis of Multiple Listing Service records by Emeryville's ZipRealty shows that short sales indeed are gaining ground.

From last September through March, about 600 short sales were completed in the nine-county Bay Area each month, accounting for about 9 percent of existing-residence sales. The monthly short sales topped 700 in April and May and has hovered around 900 to 1,000 a month since then, putting it at about 14 percent of sales. (Zip said the actual numbers may be higher, as not all short sales are flagged as such in the MLS.)

Cindi Hagley, a broker-associate with Windermere Welcome Home in San Ramon, said many banks are getting faster in rendering decisions on short sales, but others still take three or four months.

"The larger banks are coming to the table," she said. "My gut feeling is that short sales seem to be the preferred avenue for distressed property now. It's cheaper for them to do a short sale than go all the way to foreclosure."

For homeowners, a short sale provides a more dignified transition than a foreclosure - and will allow them to return to homeownership sooner. Fannie Mae, for instance, requires at least a five-year wait after a foreclosure but only two years after a short sale - and less if the homeowner wasn't delinquent.

Short sales are also better for the neighborhood because the home stays occupied instead of becoming a vacant foreclosure that may attract crime. And for banks, short sales let them skip the expense and time of going to foreclosure.

Several developments are helping to expedite the sales:

-- Pre-approval. Some banks are proactively deciding what amount they will accept for a short sale house. Sometimes they reveal the amount; sometimes they don't, but either way it expedites the process. Homes with this arrangement are listed as "Lender pre-approved short sale."

"It's an internal reserve price that lets us know the floor we'll accept on a short sale," said Dave Sunlin, senior vice president for foreclosures and real estate at Bank of America, which doesn't reveal the price for competitive reasons.

Considering options

At Wells Fargo, Ben Windust, senior vice president of default operations, said the bank is testing various short-sale approaches, including pre-approved sale amounts that it does reveal. That pilot is only for homes that Wells owns in its portfolio; homes owned by investors require more complex decision-making.

-- Proactive discussion with homeowners. Windust said another Wells pilot is to monitor real estate listings. "If we see we have a (Wells Fargo) borrower who listed property, if it's underwater, we might proactively reach out to them to work with us now on a short sale."

Similarly, JPMorgan Chase spokesman Gary Kishner said, "We are working on a more proactive approach to short sales by obtaining a listing of our delinquent borrowers who have their property listed for sale and then reaching out to help them sell the property."

Wells, Chase and other banks said it benefits homeowners to let their banks know early on that they want to pursue a short sale so the home's value, paperwork stream and other factors can be determined.

-- Treasury plan. In May the Treasury Department said it would offer a streamlined framework for short sales and incentive payments of $1,500 to homeowners, $1,000 to loan servicers and $1,000 to second-lien holders. That plan is supposed to be implemented very soon.

"As we understand it, it allows lenders to work with borrowers to mutually agree on how to market the property, set the price for it, gives us a fixed amount of time to sell the property and if not, converts it into a deed in lieu of foreclosure," said BofA's Sunlin.

-- Technology and staffing. BofA said it recently adopted a Web platform called Equator (formerly REOTrans) for managing short sales, as well as bulking up its short-sale staff.

But despite the progress, many short sales are still exasperating.

"Four of our offers are still out there in home-buying purgatory also known as the short sale," said first-time home buyer Travis Shinkle of Fairfield. He and wife Kasey made some of those offers as far back as May and the homeowner accepted them - but they're still waiting to hear from the banks.

Still obstacles

And even when there is progress, it doesn't always sound like it.

"Before you'd fax something 10 or 15 times before it would get anywhere," said Janelle Boyenga, a Realtor with Intero Real Estate Services in Los Gatos. "Now you only have to fax it in three or four times. And banks are ambiguous when they call: They said I could get back to you in an hour or in a month."

E-mail Carolyn Said at csaid@sfchronicle.com.

http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/10/21/BUOG1A5M2P.DTL

This article appeared on page C - 1 of the San Francisco Chronicle

Feared flood of foreclosures in California may be averted -- latimes.com

2009-10-21T14:00:00.001-07:00

Feared flood of foreclosures in California may be averted -- latimes.com

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Signs of life in Southern California's housing market

2009-10-14T21:09:00.001-07:00

Signs of life in Southern California's housing market

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C.A.R. Releases California Housing Market Forecast for 2010

2009-10-07T16:27:00.000-07:00

Multimedia:

Click here to view California’s median price from 1970 to 2009.

LOS ANGELES--(BUSINESS WIRE)--“California’s housing market continued its strong sales rebound this year, resulting from the continued pace of distressed properties coming to market,” said C.A.R. President James Liptak. “This follows two years of double-digit sales declines in 2006 and 2007. Looking ahead, we expect sales to moderate to a more sustainable pace.”

The CALIFORNIA ASSOCIATION OF REALTORS^® (C.A.R.) "2010 California Housing Market Forecast" will be presented this afternoon during CALIFORNIA REALTOR® EXPO 2009 (www.realtorexpo.org), running from Oct. 6-8 at the San Jose Convention Center in San Jose, Calif. The trade show is expected to attract more than 7,000 attendees and is the largest state real estate trade show in the nation.

“After experiencing its sharpest decline in history, we expect the median price to rise modestly next year,” Liptak added. “2010 will mark the beginning of the ‘new normal’ for California’s housing market. This ‘new normal’ likely will feature a steady stream of sales driven by distressed properties in the low end of the market, coupled with moderate home-price appreciation.”

The median home price in California will rise 3.3 percent to $280,000 in 2010 compared with a projected median of $271,000 this year, according to the forecast. Sales for 2010 are projected to decrease 2.3 percent to 527,500 units, compared with 540,000 units (projected) in 2009.

“Housing in California has become a tale of two markets,” Liptak said. “The low end continues to attract first-time buyers and investors, with a resulting shortage in the number of homes for sale. Sellers at the high end, however, continue to be challenged by the ability of home buyers to secure financing as well as their concerns about where prices are headed. While demand from first-time buyers for low-end properties will continue throughout next year, sales could be impacted if discretionary sellers do not return to the market by the second half of 2010.

“2009 marked a unique opportunity for first-time home buyers,” Liptak said. “Homes were more affordable than they have been in years, interest rates hovered near historic lows, and the federal tax credit helped more than 1 million people become homeowners nationwide. Now is the time for Congress to extend the federal tax credit and to expand it to all buyers, not just first-timers.”

“With distressed properties accounting for nearly one-third of the sales in 2010, inventory will be relatively lean, under six months during the off-season months, and a roughly four-month supply during the peak season,” said C.A.R. and Vice President Leslie Appleton-Young. “We expect the median price to decrease slightly through the remainder of 2009 and into next year, then rise before leveling off next summer. For the year as a whole, home prices are forecast to reach $280,000.”

“Although it appears at this time that lenders are closely monitoring the flow of distressed properties onto the market, there could be an exertion of downward pressure on home prices should a heavier than expected wave of foreclosures come to market next year,” she said.

“The wild cards for 2010 include foreclosures, loan resets, the labor market, and the California budget crisis, as well as the actions of the federal government,” Appleton-Young said.

Don’t miss “The ‘New Normal’: What Recovery Means in 2010” at the San Jose Convention Center in San Jose, Calif. on Thursday, Oct. 8, from 2:30 p.m. to 4 p.m. Panelists include Richard Green, director of the Lusk Center for Real Estate at the University of Southern California; Glenn E. Crellin, director of the Washington Center for Real Estate Research at Washington State University; and Jack Kyser, chief economist for the Los Angeles Economic Development Corporation. C.A.R. Vice President and Chief Economist Leslie Appleton-Young will serve as moderator.

2010 Forecast Fact Sheet

	2003	2004	2005	2006	2007	2008	2009F	2010F
SFH Resales (000s)	601.8	624.7	625.0	477.5	346.9	439.8	540.0	527.5
% Change	5.1%	3.8%	0.03%	-23.6%	-27.3%	26.8%	22.8%	-2.3%
Median Price ($000s)	$371.5	$450.8	$522.7	$556.4	$560.3	$346.4	$271.0	$280.0
% Change	17.5%	21.3%	16.0%	6.5%	0.7%	-38.2%	-21.8%	3.3%
30-Yr FRM	5.8%	5.8%	5.9%	6.4%	6.3%	6.0%	5.2%	5.6%
1-Yr ARM	3.8%	3.9%	4.5%	5.5%	5.6%	5.2%	4.8%	5.2%

Seeking Real Estate Bargains? Try Looking at the High End

2009-10-01T18:14:00.000-07:00

Mainstream Home Prices May Be Rising, But Luxury Properties Still Offer Deep Discounts
By BRETT ARENDS Wall Street Journal

Falling real estate prices are becoming as much a feature of high-end neighborhoods as ocean views, infinity pools and four-car garages.

While the latest data suggests prices for mainstream homes may be stabilizing after several years of pain, the news for luxury homes isn't looking as good.

That's bad news for sellers, naturally, but anyone in the market for a home listed for $2 million or more will find deeply discounted asking prices—and may be able to command even lower prices.

On Tuesday, data from the Federal Housing Finance Agency showed that average home prices ticked up 0.3% nationwide between June and July, including a 1.6% bounce on the west coast. The gains are modest, and they are partly influenced by the season—higher-end homes tend to sell better in late spring and early summer, as families try to move before the school year. Analysts are disappointed the rise was not higher.

Nonetheless, prices have now risen three months in a row. And compared with the disastrous events of the past few years, anything other than Armageddon is apt to raise spirits.

But these numbers only relate to homes purchased with conforming loans backed by the FHFA—in most areas, that describes mortgages of up to $417,000, or up to $713,000 in the country's most expensive regions.

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ROI23
Bloomberg News

A stone patio surrounds the pool outside a spec home at 38 French Road in Greenwich, Conn. The city is seeing the worst home-sales market—and deepest discounts—in decades.
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That overlooks luxury and high-end homes, where the outlook remains bleak.

"I would say we're 40% off 2007 prices for everything," says broker Chad Rogers, who covers the area from Malibu to Hollywood Hills for Hilton & Hyland, a Beverly Hills real-estate firm. "We're now seeing prices consistent with where we were back in 2003."

"The $10 million to $30 million properties are on the market for a very long time," says Cathy Wood, a real estate broker covering Beverly Hills and surrounding areas for realty firm Gibson International. "They're seeing a lot of price reductions."

Realtors, she says, "are now selling $500,000 condos, when they used to sell $5 million homes."

Across the country in hedge-fund haven Greenwich, Conn., local broker Eric Bjork at Prudential Real Estate finds a similar effect. "There's a new level of value being set," he says. "The $8 million [homes] are selling for $6 million, and the $10 millions are selling for $8 million. When you do the math, it looks like an adjustment of 20% to 30%."

You'll find similar anecdotal data in several high-end markets. But real estate Web site Trulia.com, which tracks listing prices on multiple listing services across the country, took a look at what's happening to listing prices for homes over the $2 million mark.

Such homes only account for about 2% of the properties listed on the site, but represent 25% of the total price reductions by value. Overall, sellers listing homes for more than $2 million have dropped their asking prices by a total of $7 billion, with an average price reduction of 14%. The average for all properties tracked by Trulia is only 10%.

Data for individual Zip codes is intriguing, whether you're in the market or you just like to rubberneck. According to Trulia data, 28% of the homes currently for sale in Beverly Hills (Zip code 90210) have dropped their price, with an average discount of 11%. In Aspen, Colo., (81611), 39% of the homes have cut their price, by an average of 16%.

On New York's Upper East Side (10065), no less than 40% of the homes have slashed prices—and by an average of 18%. In California, some of the most exclusive areas in Newport Beach, Big Sur and Monterey have seen a third of the sellers reduct prices, by an average of about 15%. Malibu? More than half have cut prices.

Chip Case, economics professor at Wellesley College and one half of the Case-Shiller index duo, says that some of these markets may be finally catching up to the wider housing market crash. "That level was more in the hold-out category," Mr. Case says. "Up until recently the foreclosures weren't hitting that level .But they are now. There's no question about that. You're seeing some contagion from the prime level to the luxury end."

Bottom line: At the high end, it's a good time to be shopping for that dream home.

During—and after—a bubble, investors often hope that "quality assets" will hold value. It's usually a vain hope. Just ask people who owned luxury condos in Tokyo after 1990, or investors in Cisco Systems (CSCO) after the tech-stock bubble popped. Real estate is not that different.

Sooner or later, even rich homeowners need to sell. They get divorced. Their company collapses. They relocate or retire. And, when they get tired of waiting, they cut their price. Factoring in taxes, upkeep and the opportunity cost of keeping money in a non-performing asset, an empty luxury home may be costing owners a lot just by sitting there. That gives them a powerful incentive to make a deal.
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First-time buyers, it's time to take advantage of housing tax credit -- latimes.com

2009-10-01T18:03:00.001-07:00

First-time buyers, it's time to take advantage of housing tax credit -- latimes.com

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Architectural gems up for sale -- latimes.com

2009-10-01T11:40:00.001-07:00

Architectural gems up for sale -- latimes.com

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Will the home buyer tax credit get packed away?

2009-09-28T10:04:00.001-07:00

Will the home buyer tax credit get packed away?

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New-home sales data are mixed -- latimes.com

2009-09-26T08:22:00.001-07:00

New-home sales data are mixed -- latimes.com

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Homeowners who 'strategically default' on loans a growing problem -- latimes.com

2009-09-25T10:19:00.001-07:00

Homeowners who 'strategically default' on loans a growing problem -- latimes.com

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Economy is stabilizing but still fragile, Fed says -- latimes.com

2009-09-10T18:24:00.001-07:00

Economy is stabilizing but still fragile, Fed says -- latimes.com

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Housing market may be nearing equilibrium, latest price numbers indicate -- latimes.com

2009-09-10T18:23:00.001-07:00

Housing market may be nearing equilibrium, latest price numbers indicate -- latimes.com

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The Wall Street Journal says "Yes, the Housing Market Has Rarely Looked Better"

2009-09-04T08:48:00.000-07:00

By JAMES B. STEWART

Passing through the Fort Myers, Fla., airport a few weeks ago, I noticed people eagerly signing up for a free bus tour of foreclosed real estate—with all properties offering water views. During the ride to my hotel, the young driver volunteered that he had just bought his first house, paying $65,000 for a foreclosed property in nearby Cape Coral that last sold for over $250,000. He said he had never expected to be able to buy anything on a driver's salary, let alone something that nice.

Last week, Standard & Poor's reported that its S&P/Case-Shiller U.S. National Home Price index of real-estate values increased this past quarter over the first quarter of 2009, the first quarter-on-quarter increase in three years. Its index of 20 major cities also rose for the three months ended June 30 over the three months ended May 31, with only hard-hit Detroit and Las Vegas experiencing declines. The week before that, the National Association of Realtors reported that sales volume of existing homes was up 7.2% in July from June.

In short, the data suggest that real-estate prices hit a bottom some time during the second quarter, and have now begun to rise. There's no way to be certain that this marks the end of the long, painful correction that followed the real-estate bubble, but clearly prices are no longer in free-fall. That means if you've been sitting on the fence, it's time to act.

Ordinarily I'd never try to time the real-estate market, but I can understand why buyers have been cautious. Few want to buy in down markets, just as stock buyers avoid bear markets. And for most people, of course, buying a house is a much bigger decision than buying a stock. But with real-estate prices nationally now down about 30% from their 2006 peak and showing signs of turning up, the prices aren't likely to go much lower. Every real-estate market is local, and so there may be a few exceptions. Overall, though, I can't imagine a better time to buy than now.

In addition to bargain prices, buyers also should find plenty of homes to choose from. The inventory of unsold homes was 4.09 million units in July, up 7.3% from June, according to the National Association of Realtors. And mortgage rates this week were at a two-month low of close to 5%, according to Zillow. Even the stricter appraisal process is working to the advantage of buyers. Appraisals are coming in far lower than most sellers have been expecting, forcing them to face the new reality of sharply lower prices. And with stricter standards, lenders aren't going to let buyers borrow more than they can afford, which protects buyers and helps to keep prices down.

Unless you're really prepared to accept the demands (and headaches) of being a landlord, I don't recommend direct ownership of real estate as an investment. The days of buyers lining up to flip Miami Beach and Las Vegas condos are mercifully gone.

There are much easier ways to make money in real estate, such as real-estate investment trusts or buying shares in home builders and other housing-related businesses (such as Home Depot). Historically, the mean rate of return on real estate has been around 3%, according to research from Yale economist Robert Shiller, who co-developed the Case-Shiller index. Shares in REITs and other stocks have often done much better.

But there's a good reason homeownership has been such a central part of the American dream. It delivers security, pride of ownership, a sense of community and decent investment returns as a bonus. I felt glad for my driver in Florida. He represents the other side of the foreclosure crisis. For every hardship story, and no doubt there are many, others are realizing their dreams of home ownership and getting what may well turn out to be the deals of their lives.

James B. Stewart, a columnist for SmartMoney magazine and SmartMoney.com, writes weekly about his personal investing strategy. Unlike Dow Jones reporters, he may have positions in the stocks he writes about. For his past columns, see: www.smartmoney.com/commonsense.
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Now Is the Time to Buy in Real Estate

2009-08-28T16:33:00.001-07:00

Nobody knows when the actual bottom of the market hits until it is long past. In my opinion, we are close to the bottom of the Los Angeles real estate decline. Many listings have gone into multiple offers when it is priced well. The homes priced below $700,000 have tons of activity with buyers just looking for the right home. On the higher end, seller's are holding on to their high prices and their homes. Homes are sitting on the market for a long time when priced above $1,000,000.
Now Is the Time to Buy in Real Estate

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Fed Chair Says the Worst Is Over

2009-08-28T09:42:00.001-07:00

REALTORÃâÃÂ® Magazine-Daily News-Fed Chair Says the Worst Is Over

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Lobbying intensifies to extend first-time home buyer tax credit -- latimes.com

2009-08-27T23:52:00.001-07:00

Lobbying intensifies to extend first-time home buyer tax credit -- latimes.com

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Southland home sales rise again as higher-cost areas awaken

2009-08-26T12:12:00.000-07:00

August 18, 2009

La Jolla, CA---Southern California homes sold last month at the fastest clip for a July in three years and the fastest pace for any month since December 2006. The median price paid rose slightly from June – marking the third consecutive month-to-month gain – as sales in pricier coastal areas continued to rise and sales of lower-cost foreclosures waned, a real estate information service reported.

A total of 24,104 new and resale houses and condos closed escrow in San Diego, Orange, Los Angeles, Ventura, Riverside and San Bernardino counties last month. That was up 3.6 percent from 23,262 in June and up 18.6 percent from 20,329 a year ago, according to San Diego-based MDA DataQuick.

July’s sales total was 8.7 percent lower than the average number sold in July – 26,410 – since 1988, when DataQuick’s statistics begin. July home sales have ranged from a low of 16,225 in July 1995 to a peak of 38,996 in 2003.

Sales have increased year-over-year for 13 consecutive months. They’ve been driven higher by increased affordability, low mortgage rates, plentiful government-insured FHA financing for first-time buyers, robust investor demand and, more recently, improved access to the “jumbo” financing used to buy more expensive homes.

Last month the share of Southland purchase loans above $417,000 rose to 15.1 percent, the highest since it was 15.6 percent in August 2008. These “jumbo” mortgages became more expensive and more difficult to obtain after the credit crunch hit in August 2007. Before then, nearly 40 percent of Southland sales were financed with jumbo loans, then defined as over $417,000.

Although sales of lower-cost foreclosures have tapered off, the high end of the housing market has awakened this summer from a long slumber, during which sales had been at or near record lows. July sales of existing single-family houses rose above a year ago in many coastal towns, including Manhattan Beach, Redondo Beach, Huntington Beach, Newport Beach, Carlsbad, Encinitas and La Jolla. Among the higher-cost Southland communities not posting such a gain were Malibu, Rancho Palos Verdes, Beverly Hills, Brentwood and Del Mar.

Across the Southland, resales of single-family houses priced $500,000 and above rose to 20.1 percent of all existing houses sold in July, compared with a low this year of 15.0 percent in March. However, a year ago 27.2 percent of sales were for more than $500,000.

The recent shift toward more sales of higher-cost homes, in conjunction with the decline in sales of deeply discounted foreclosures, has put upward pressure on the median sale price. The median is the point where half of the homes sold for more and half for less. The dramatic declines in the median over the past two years were partly the result of the high-end housing market all but shutting down, just as resales of low-cost, inland foreclosures exploded.

Last month 43.4 percent of the Southland houses and condos that resold had been foreclosed on in the prior year – the lowest level since June 2008. July’s foreclosure resales figure was down from 45.3 percent in June and from a peak 56.7 percent in February 2009.

The median price paid for all new and resale houses and condos sold in the Southland last month was $268,000, up 1.1 percent from $265,000 in June but down 23.0 percent from $348,000 a year ago. July was the third consecutive month in which the median rose on a month-to-month basis.

“Have prices hit bottom? While some data continue to hint at that, it remains an especially risky call to make given the uncertainty over the magnitude of future job losses and foreclosures. The recent drop in foreclosure resales, coupled with the rise in high-end sales, has helped stabilize some of the regional home price measures. But there’s still quite a bit of distress out there, and plenty of unknowns with regard to how lenders and borrowers will choose to proceed,” said John Walsh, DataQuick president.

“Even if we are at or near bottom,” he added, “history suggests we could bounce along that bottom for quite a while.”

Last month’s median was the highest since it was $278,000 last December, but it stood 46.9 percent below the peak $505,000 median reached in the spring and summer of 2007.

In the region’s more affordable areas, many first-time buyers continued to choose government-insured FHA financing. Such loans were used to finance 37.2 percent of home purchases last month, up from 36.9 percent in June and 19.7 percent a year ago.

Investors and other absentee buyers, defined as those who will have their property tax bills sent to a different address, bought 19.4 percent of the Southland homes sold last month. That’s up from 15.5 percent a year ago and a monthly average since 2000 of about 15 percent. San Bernardino County had the highest share of absentee buyers in July: 27 percent.

MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

The typical monthly mortgage payment that Southern California buyers committed themselves to paying was $1,180 last month, down from $1,193 the previous month, and down from $1,710 a year ago. Adjusted for inflation, current payments are 45.7 percent below typical payments in the spring of 1989, the peak of the prior real estate cycle. They are 56.2 percent below the current cycle's peak in July 2007.

Indicators of market distress continue to move in different directions. Foreclosure activity remains near record levels, while financing with adjustable-rate mortgages is near the all-time low but has recently edged higher. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above-average in some markets, MDA DataQuick reported.

	Sales Volume			Median Price
All homes	Jul-08	Jul-09	%Chng	Jul-08	Jul-09	%Chng
Los Angeles	6,592	8,082	22.60%	$400,000	$321,000	-19.80%
Orange	2,799	3,128	11.80%	$461,000	$420,000	-8.90%
Riverside	4,116	4,699	14.20%	$260,000	$185,000	-28.80%
San Bernardino	2,521	3,549	40.80%	$230,000	$140,000	-39.10%
San Diego	3,431	3,809	11.00%	$364,000	$320,000	-12.10%
Ventura	870	837	-3.80%	$420,000	$375,000	-10.70%
SoCal	20,329	24,104	18.60%	$348,000	$268,000	-23.00%

Source: DQNews.com Media calls: Andrew LePage (916) 456-7157 or John Karevoll (909) 867-9534

California backlog of unsold homes drops as July home sales rise, Realtors group reports

2009-08-26T10:50:00.001-07:00

California backlog of unsold homes drops as July home sales rise, Realtors group reports

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Neutra, through the eye of John Bertram

2009-08-21T17:52:00.000-07:00

August 21, 2009 | 5:20 pm

When John Bertram was 10, his family moved into a 1942 architectural home in Denver. "It was a red brick box with steel corner casement windows and travertine window sills and stairs. It looked like a nightclub," recalls the Los Angeles architect, 43. "I'd never seen a modern home before. There was so much clarity to the design that a kid could draw it."

These days, Bertram's drawings are more complex blueprints for luxury living: minimalist designs strongly influenced by the work of midcentury Southern California modernist Richard Neutra. For Bertram, the inspiration is personal. He lives in a lesser-known Neutra in Silver Lake. Click on the following links to take a spin through the 1939 McIntosh residence that he calls home and get a glimpse of his latest project, the Lookout house in Beverly Hills. You also can read the full story and see the sidebar on Bertram's resources for cork flooring, motorized shades, house numbers and more.

-- David A. Keeps

Photo credits: Christine House / For The Times

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