Nationally, the real estate market has been declining in most major cities. But what the general public and media fail to see is that real estate markets are local. Each city and areas within cities have different industries that fuel their local economies. As a result, appreciation rates vary tremendously across the country and in different zip codes and towns. The Los Angeles area has a well diversified economy with one industry that is unique and indigenious to the city; the Entertainment Industry. The Entertainment Industry offers executives, celebrities, and creative professionals high salaries that help increase median prices in the most desirable areas of the county. The Los Angeles County median price sales data for July 2008 proves that real estate markets are local. There were 20 areas in Los Angeles County where median prices rose in July 2008 from July 2007. The most notable area, Playa del Rey zip code 90293, tops the list for the highest gain in median sales price for July 2008 at 41.40% with a median price of $1,238,000. Other areas include, LA/Westwood zip code 90024, where the median price for properties sold in July 2008 was $1,791,000, an astounding 32.60% gain in value from July 2007. Beverly Hills zip codes 90210 and 90212 saw appreciation rates of 23.5% and 26% respectively. Malibu had median price gain of 18.3% and Pasadena zip code 91105 had a gain of 25.90%.

Please copy this link into a new browser to see the median home sales data for all cities and areas in Los Angeles county.

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For more information please visit www.MarkSellsLA.com
Written by Mark Gonzales Copyright 2008 Mark Gonzales, Realtor, real estate agent specializing in marketing and selling residential homes, condos, and commercial real estate sales in Los Angeles, San Fernando Valley, Woodland Hills, Sherman Oaks, Studio City, Encino, Tarzana, Calabasas.
Please visit www.MarkSellsLA.com for more information.

National Association of Realtors (NAR) President Dick Gaylord sits down with NAR Chief Economist Lawrence Yun to discuss what is happening in the market and what REALTORS® can expect in the coming months.  Click the video feed to see their thoughts on the future of the Real Estate Market in 2009.

http://services.brightcove.com/services/viewer/federated_f8/1465406675

For more information please visit www.MarkSellsLA.com
Written by Mark Gonzales Copyright 2008
Mark Gonzales, Realtor, real estate agent specializing in marketing and selling residential homes, condos, and commercial real estate sales in Los Angeles, San Fernando Valley, Woodland Hills, Sherman Oaks, Studio City, Encino, Tarzana, Calabasas.  Please visit www.MarkSellsLA.com for more information.

Thanks to all my clients for making 2008 a success so far!  I've sold 16 homes and over $6.5 million in residential real estate this year!!

THANK YOU!!!

Here's a cool video I found on YouTube showing the 2 year renovation of the Sherman Oaks Galleria from drab indoor mall to the outdoor lifestyle and entertainment center that attracts patrons from all over.  It is home to many entertainment production companies and influential businesses.  Check out the 2 year renovation in less than a Los Angeles minute.

<object width= "425" height= "344" ><param name= "movie" value= "http://www.youtube.com/v/ig_5viv8ol8&hl=en&fs=1" ></param><param name= "allow FullScreen" value= "true" ></param><embed src= "http://www.youtube.com/v/ig_5viv8ol8&hl=en&fs=1" type= "application/x-shockwave-flash" allow fullscreen= "true" width= "425" height= "344" ></embed></object>

For more information please visit www.MarkSellsLA.com
Written by Mark Gonzales Copyright 2008
Mark Gonzales, Realtor, real estate agent specializing in marketing and selling residential homes, condos, and commercial real estate sales in Los Angeles, San Fernando Valley, Woodland Hills, Sherman Oaks, Studio City, Encino, Tarzana, Calabasas.  Please visit www.MarkSellsLA.com for more information.

Here's an article written by Mary Funk, President of the Southland Regional Association of Realtors and David Walker.  The recent improvements and change in lending guidelines have caused a surge in buying activity.  Almost all properties I have sold have had multiple offers, this could be a signal of the bottom and we should start seeing values stabilize within the 2009 year.  Check the info for yourself:

Multiple Offers Reappearing

BY MARY FUNK, PRESIDENT, AND DAVID WALKER, SRAR

While many prospective home buyers are still waiting in hopes of catching the bottom, others are jumping into the residential real estate market feet first and, in a growing number of instances, they wind up competing with a swelling legion eager to capture a bargain.

At a recent meeting involving dozens of members of the Southland Regional Association of Realtors^®, all of the Realtors® said they had recently encountered home purchases where a handful of buyers presented competing purchase offers.

"It's happening in all price ranges and in all communities," one participant said.

Many of the properties have list prices that had been discounted from year ago levels, including a number of bank-owned houses that had been involved in foreclosure proceedings.

The activity level is no where near the frenzy of the seller's boom, the participants said, but offers are coming ion, near and, in some instances, above the already discounted list price.

The reports represented a significant shift in a market that had been paralyzed by buyers who had been glued to the proverbial procrastinator's fence. Buyers' hesitancy created endless work but no sales for Realtors®, who typically are not compensated until an escrow closes.

That lack of urgency now appears to be fading as more buyers enter the market at a time when government-sponsored programs appear to be setting the finance industry, thus making home loans more available and affordable - albeit at stricter qualifying guidelines which require proof of income and down payments.

Buyers who are entering the market believe they have a secure source of income, faith in the local economy and realize that waiting to catch the top or bottom of any real estate cycle is risky business, with success hinging on a large close of luck.

The recent increases in government-insured mortgage limits are expected to provide much-needed liquidity and stability to housing markets across the country.

That is especially true in California - a region with particularly expensive homes - where tens of thousands of families could be eligible this year to purchase or refinance their homes thanks to the recently approved Economic Stimulus Act.

The higher loan limit expands the pool of eligible borrowers, enabling more families to qualify for safe, affordable FHA-insured mortgage loans which can be as high as $729,750.

By focusing on 30-year, fixed-rate mortgages, FHA helps home owners avoid and escape the risks associated with exotic subprime mortgage products, which have resulted in rising default and foreclosure rates.

While still at historically low levels, rising sales suggest that the worst may be past and that more buyers believe that the time to buy is now.

For more information please visit www.MarkSellsLA.com
Written by Mark Gonzales Copyright 2008
Mark Gonzales, Realtor, real estate agent specializing in marketing and selling residential homes, condos, and commercial real estate sales in Los Angeles, San Fernando Valley, Woodland Hills, Sherman Oaks, Studio City, Encino, Tarzana, Calabasas.  Please visit www.MarkSellsLA.com for more information.

The San Fernando Valley real estate market is reacting favorably to historically low interest rates and affordable pricing as existing single-family home sales have increased 16.2 percent in July from a year ago.

Mary Funk, President of the Southland Regional Association of Realtors states, "The numbers indicate that the market is at the bottom with sales on the upswing.  Demand is increasing because people realize that what they could not afford before they probably can afford now. Come next year, people who are waiting will find that they will be paying more."

In fact the median price of a single-family home as increased a modest 1.0 percent from June to $435,000.  Local experts believe that the market will remain busy and may pick up added momentum in the coming months.  Pending escrows indicate future resale activity and show the market is picking up.  There were 1,141 pending escrows at the end of July which is 39.2 percent higher than a year and up 1.2 percent from this June.  This coupled with the fact that active inventory levels have been declining since November 2007 where the number of active listings were 7,505.  As of the end of July there were 6,950 active listings.  Seems like the law of economics may come to fruition as there is more demand and less supply; making way for the stabilization of the real estate market.

CHECK THE STATS FOR YOURSELF:  http://www.srar.com/members/stats/charts/2008/july/SFVGraphs.pdf

For more information please visit www.MarkSellsLA.com
Written by Mark Gonzales Copyright 2008
Mark Gonzales, Realtor, real estate agent specializing in marketing and selling residential homes, condos, and commercial real estate sales in Los Angeles, San Fernando Valley, Woodland Hills, Sherman Oaks, Studio City, Encino, Tarzana, Calabasas.  Please visit www.MarkSellsLA.com for more information.

Here's a quote I took from an article from the Southland Regional Association of Realtors, September 2008 Realtor Report:

"There were 6,950 active listings throughout the San Fernando Valley at the end of July, down 3.4 percent from a year ago. Of that total, single-family homes accounted for 75 percent of the active listings.

At the current pace of sales, the active inventory represents a 7.5-month supply - slightly higher than the 5- to 6-month supply deemed to represent a balanced market.

By comparison, the inventory during the recession of the 1990s hit a record high of 14,976 in July 1992 and the inventory compared to pace of sales was three-times higher at a 23-month supply.

Contrary to an inaccurate public perception, the active inventory in the San Fernando Valley has been trending lower since November 2007 when it stood at 7,505."

I used to think that prices had a little further drop to go, but now that the new sales data has been released I'm starting to think that pricing may increase slightly next year and that inventory may stay flat rather than increase as buyer's who were unable to get their offers accepted in multiple offer situations begin to offer more for the next property they find that they like.  It's a hard call, but I really think that now is the time to buy.  Dang! I wish I signed a six-month lease for the rental I live in instead of a 1 year.  Hopefully there will be something I like at a good price next year.

To my readers and clients:  What do you think?  Do you think market is positioned for a rebound?  Feel free to post comments by clicking the link below.

For more information please visit www.MarkSellsLA.com
Written by Mark Gonzales Copyright 2008
Mark Gonzales, Realtor, real estate agent specializing in marketing and selling residential homes, condos, and commercial real estate sales in Los Angeles, San Fernando Valley, Woodland Hills, Sherman Oaks, Studio City, Encino, Tarzana, Calabasas.  Please visit www.MarkSellsLA.com for more information.

What does it mean???

Taken from http://en.wikipedia.org/wiki/Housing_and_Economic_Recovery_Act_of_2008

The Housing and Economic Recovery Act of 2008 (Pub.L. 110-289, H.R. 3221) designed primarily to address the Subprime mortgage crisis, was passed by the United States Congress on July 24, 2008 and signed by President George W. Bush on July 30, 2008. It authorizes the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders write-down principal loan balances to 90 percent of current appraisal value. It's intended to restore confidence in Fannie Mae and Freddie Mac by strengthening regulations and injecting capital into the two large U.S. suppliers of mortgage funding. States will be authorized to refinance subprime loans using mortgage revenue bonds.

Basically it will allow homeowners to keep their homes and refinance with loans at discounted rates for 90% of a home's current appraisal value if the lender who holds the original note is willing to take a loss.  You might think why would the lender want to take a loss?  My feeling is that lenders should be willing to do so, due to the fact that that so many homes are going to Foreclosure and are being sold as a Short sale (real estate), which costs lenders more money as they can lose between 30-50% of the appraised value after factoring selling costs.

Here's what the Government says:

An Excerpt taken from Department of Housing and Urban Development website at: http://www.hud.gov/news/recoveryactfaq.cfm

Q: How will the law help struggling homeowners keep their homes?
A: Through the Federal Housing Administration (FHA), an estimated 400,000 borrowers in danger of losing their homes will be able to refinance into more affordable government-insured mortgages. The program offers government insurance to lenders who voluntarily reduce mortgages for at-risk homeowners to at least 90% of the property's current value.

Q: How will this law make it more affordable to own a home?
A: There are a number of provisions that will make homeownership more affordable:

• Creates a refundable tax credit for first-time homebuyers that works like an interest-free loan of up to $7,500 (to be paid back over 15 years).
• Grants states $11 billion of additional tax-exempt bond authority in 2008 that they can use to refinance subprime loans, make loans to first-time homebuyers and to finance the building of affordable rental housing.
• Raises conforming loan limits for the FHA, Fannie Mae and Freddie Mac to $625,500. Because of the high cost of housing in California, a majority of the state's residents were previously shut out from these programs. Raising these loan limits will lead to lower interest rates on some loans, greater refinancing opportunities, and enable more borrowers in high cost areas to avoid the type of nontraditional and frequently abusive loans that led to the current crisis.
• Provides couples using the standard deduction with up to an additional $1,000 deduction for property taxes ($500 for individuals).

Written by Mark Gonzales Copyright 2008

Mark Gonzales is a Realtor for RE/MAX On The Boulevard, one of the Top 100 brokerage firms in the country.  He possesses a Bachelor's of Science in Business Administration with a Concentration in Real Estate from California State University, Northridge and is considered to be an innovator in marketing homes.  For permission to repost this blog please send an e-mail with 'REQUEST TO REPOST BLOG" in subject line to markgonzales100@yahoo.com.

Being at the forefront of current Los Angeles real estate market as a Realtor who entered the industry in 2005 (at 22 years old) I can truly say that this is my best year yet. There are many buyers who have been waiting on the sidelines to fulfill the need and dream to own their own home. They are looking to live and own a home for the sake of owning long term regardless of where the market will be 2-3 years. They have great credit, choose fixed financing and are able to afford these homes with their real, tax-documented income. As such buyer's absorb the inventory, we will we begin to see stabilization in the depreciation of homes and begin to see modest returns 3-6% until the next economic expansion where incomes begin to rise.

In fact, I sold over 14 properties homes in the last 120 days days which is amazing considering we have over 18,000 Realtors in the San Fernando Valley and there are 900-1600 sales per month. So yes, I believe the market is beginning to rebound, there are multiple offers on well priced properties and there are bargains out there for those who are willing to work at submitting offers on multiple properties until the right property is found for the right price.

Please contact me if you're interested in seeking representation in your next real estate transaction!

Written by Mark Gonzales Copyright 2008

Mark Gonzales is a Realtor for RE/MAX On The Boulevard, one of the Top 100 brokerage firms in the country.  He possesses a Bachelor's of Science in Business Administration with a Concentration in Real Estate from California State University, Northridge and is considered to be an innovator in marketing homes.  For permission to repost this blog please send an e-mail with 'REQUEST TO REPOST BLOG" in subject line to markgonzales100@yahoo.com.

Banks always have the buyer's sign seller addendums.  To protect the Bank/Seller, they always have the Buyer's sign addendums in addition to a standard purchase agreement.  Mind you, the addendums are drafted in such a way to protect the interest of the Bank and not the Buyer, so you must thoroughly read the contract and make sure that you understand the terms and conditions. Each time I sell a foreclosed property I spend at least a couple hours reading these addendums so that I can explain the terms to my Buyer clients and answer any questions that they may have.  It is extremely important to know what you are signing as most Banks will have clauses.  The following are clauses that can be included on the Seller Addendums:

•1.      Per Diem charges.  Banks will require that a buyer pay per diem charges between $50.00-$150.00 per day for everyday that the transaction stays open beyond the close of escrow date indicated on their addendum.  I always write in a later date on the contract to ensure that plenty of time is allotted so that we close prior to the date indicated on the addendum.

•2.      Shorten Inspection Contingency Periods.  In California, the standard contingency period for inspection is 14 days.  Banks will try and shorten the period for this contingency to 5-7 days.  In addition, they have the start of the inspection contingency period to begin on the date of the addendum.  In my opinion this is pointless because the Buyer and Seller have yet to come to an agreement.  In addition the offer is almost always subject to senior management or investor approval.  Which simply put, means that you do not have a deal until both signatures are on the contract.  I would never suggest that my Buyer's sink $400-600 on inspections when the Bank hasn't accepted the offer (unless it's an extremely good deal and the condition of the property is questionable up front).  To avoid this I write in the contract that contingency periods will begin the day after Buyer receives a copy of the executed contract signed by both Buyer and Seller.

There are others clauses that I have seen, but these are two most common ones that exist in most Bank addendums.  The main point is that you must thoroughly read the contract, ask questions, and if in doubt, have a Real Estate attorney review the contract if you feel uncomfortable with the terms and conditions.  Foreclosures and/or REO's are complex transactions that can be unpredictable at times.  Banks and their Asset Managers have strict guidelines they must adhere to and often hire escrow companies that are overwhelmed with files, so expect some challenges along the road. However, with the right real estate agent and with some risk management, purchasing a foreclosed property can reap you rewards in the form of instant equity at the close of escrow.

Written by Mark Gonzales Copyright 2008

Mark Gonzales is a Realtor for RE/MAX On The Boulevard, one of the Top 100 brokerage firms in the country.  He possesses a Bachelor's of Science in Business Administration with a Concentration in Real Estate from California State University, Northridge and is considered to be an innovator in marketing homes.  For permission to repost this blog please send an e-mail with 'REQUEST TO REPOST BLOG" in subject line to markgonzales100@yahoo.com.