Mark 's Blog

JANUARY HOME SALES JUMP 21%

Mark Gonzales (Rodeo Realty) — Thu, 05 Mar 2009 13:29:57 -0600

As property prices are reaching lows unseen since 2003, prospective buyers who were waiting on the sidelines are now jumping into the market. The January single-family home median price was $350,000, a 24.7% drop from a year ago, while the condo median price was $190,000, a 48.4% drop.

Sales of existing single-family homes increased 21% in January 2009 compared to January 2008 in the San Fernando Valley, representing a total of 518 homes. In the meantime, condos increased 58.1% with a total of 166 condos sold.

However, as the demand for real estate is increasing, the supply of active listings is limited, and the number of properties receiving multiple offers is soaring, which may soon impact prices.

For the full article, please visit the SRAR at:

http://www.srar.com/members/rronline/3-2-SFVsales.php

FREE MONEY FOR 1ST TIME HOME BUYERS!!

Mark Gonzales (Rodeo Realty) — Tue, 17 Feb 2009 13:20:16 -0600

If you purchase a home before September 1, 2009 and you are a first time home-buyer (someone who has not purchased a home within the last 3 years, see http://www.hud.gov/offices/hsg/sfh/ref/sfhp3-02.cfm for exact details) you will be eligible to receive a tax credit for $7,500 which does not have to be repayed. The previous stimulus bill had the tax credit listed as a repayable interest free loan for 15 years. However, there are income limits that disqualify 1st time homebuyers to receive the credit for those single home purchasers who make more than $95,000 in adjusted gross income and $170,000 for married couples who file jointly.

For more information check:
http://www.seevalleylistings.com/article.aspx?xml=http://realtytimes.com/rtnews/xml/20090216_washingtonreport.xml

Recent Sales Data Points Out That The Real Estate Market May Be At the Bottom

Mark Gonzales (Rodeo Realty) — Thu, 05 Feb 2009 14:30:00 -0600

Here are several articles explaining the 2008 sales data, how we may be at the bottom the market's down cycle and why prices may increase soon. As I've said in many of my earlier blogs, multiple offers are being received on almost every listed property priced below $500k with some listing agents seeing 10 or more offers. Buying activity from my clients has surged. Homes for sale (especially foreclosures priced under market value) are selling above list price. Many buyers are taking advantage of extremely low interest rates and pricing which have made owning a home even more affordable. These factors coupled with the after tax benefits of being able to deduct mortgage interest and property tax, monthly payments on a home are close to and in many cases equivalent to renting a home.

Click the following links to view articles supporting the opinion that we may be at the bottom:

LA Ranks #7 on Forbes List on World's Best Places For Real Estate Buys

http://www.forbes.com/2009/01/21/investment-obama-realestate-forbeslife-cx_mw_0121realestate.html

Southland Home Sales off Bottom

http://www.dqnews.com/News/California/Southern-CA/RRSCA090119.aspx

San Fernando Valley Home Sales Increase 13% in 2008

http://www.srar.com/members/rronline/2-2-SFVsales.php

Affordability More Than Doubles

http://www.srar.com/members/rronline/1-19-Affordability.php

What do you think? Do you think the market is hitting the bottom soon? I'd love to hear your feedback

Positive News for the San Fernando Valley Real Estate Market

Mark Gonzales (Rodeo Realty) — Mon, 17 Nov 2008 15:22:59 -0600

Here's an article from the Southland Regional Association of Realtors showing significant increases in the number of sales from last year. Could this mean that the bottom is near? Read below and let me know what you think?

San Fernando Valley Home Sales Surge from Last Year's Low Point
Driven by foreclosures and homes sold by traditional sellers at favorable prices, sales of existing single-family homes in the San Fernando Valley during September soared a whopping 81.8 percent compared to a year ago, the Southland Regional Association of Realtors^® reported.

A total of 658 homes changed owners last month - 296 sales higher than in September 2007. Home sales have been steadily increasing since a year ago September - which set a record low of 323 sales -with this September posting the fifth consecutive month with the total at 650 sales or higher.

"Recovery of the local housing market is underway," said Mary Funk, president of the Southland Regional Association of Realtors. "Every time a foreclosed home finds a new owner or a buyer expresses confidence by buying a home from a traditional seller, we move a step closer to resolving the housing crisis and returning to some level of normalcy.

"Even as some home owners still struggle with the excesses of the past," Funk said, "once-in-a-lifetime opportunities to buy are available now or will soon emerge. Yes, it's more difficult to get a loan today, yet there are many programs available or emerging that are designed to aid current owners and help prospective buyers get into a home. No one knows how long these favorable conditions will be around."

It is to early to predict whether rescue efforts from the nation's capital will prolong or speed recovery, Funk said.

Funk and Jim Link, the Association's chief executive officers, said they expected foreclosed properties to continue to be dominant factor in the market, yet both expressed confidence that the worst of the fallout from the financial meltdown has passed.

"Recent sales activity and the number of properties that are already in escrow suggest that the market has hit bottom and is bouncing back," Link said. "Buyers want to take advantage of the relatively few properties listed for sale and capture prices that have not been seen in years." Buyers generally have been focusing on unique opportunities to purchase single-family homes, simply because homes that were too expensive two years ago now may be within reach.

Still, condominium sales also increased during September, soaring 36.1 percent to 21 1 transactions - 56 sales higher than a year ago.

September marked the third time in four months that condo sales exceeded the 200-transaction benchmark after stumbling along below 200 for 10 consecutive months with the 105 condo sales of this January being the low point of this cycle.

"There's no doubt that sales are being driven by favorable prices," Funk said. "Plus, a purchase today indicates that buyers realize that housing remains a relatively rare commodity in Southern California, which is expected to add tens of thousands of new residents over the coming years."

The median price of single-family homes sold during September declined 37.1 percent from a year ago to a median of $392,500. It was the first time since 2003 that the median dipped below $400,000.

Likewise, the condo median price of $260,000 dropped 33.3 percent - $1 30,000 lower than a year ago. September marked the fifth consecutive month that the condo median has been below $300,000. Today's median condo price was last seen in 2003 and early 2004.

Pending sales - a measure of future closed escrow activity - increased an incredible 163.1 percent during September. The Association reported a total of 1,305 open escrows at the end of the month. That compares to 496 year ago - one of the lowest tallies in recent years and close to the record low of 385 pending escrows posted in December 1991.

"Generally, people are surprised to learn that there is a relatively limited inventory of properties listed for sale throughout the San Fernando Valley," Link said. "Owners realize that this is not the time to test the market.

"That leaves two types of sellers," Link said, "both of whom are highly motivated: banks holding foreclosed properties and traditional sellers who either must sell due to personal circumstances, such as a work transfer, or owners who have sufficient equity in their current property and understand that whatever the perceived loss in a sale will be more than recaptured when they buy a replacement property."

There were a total of 6,009 properties listed for sale at the end of September, down 22.2 percent from a year ago.

At the current pace of sales, that represents a 6.9-month supply, only slightly on the high end of the 5- to 6-month supply which real estate experts believe indicates a balanced market. The inventory at the current pace of sales was at a 16.2-month supply this January when there were 6,928 properties for sale and a mere 428 total sales.

For comparison, during the housing downturn of the 1990s the inventory soared to a record high of 14,976 in July 1992 and the inventory at the then current pace of sales hit a high of 23.0-months.

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.

Unique Homebuying Opportunities Abound

Mark Gonzales (Rodeo Realty) — Mon, 17 Nov 2008 15:13:30 -0600

Although the newspapers and Wall Street is flooded with depressing information on the economy, and despite Dow Jones record lows as well as the recent news that the government will not be buying up bad debts from banks, there are still multiple opportunities in the Real Estate Market for buyers who hold a decent fico score and can validate their current income. This means that many buyers are still finding foreclosure and short sale deals well under the market value compared to 2005. To help buyers buy these properties, several programs have been created to help buyers qualify and receive funding from banks.

This is a recent article by the Southern Regional Association of Realtors which lists the different programs available to buyers today.

Unique Homebuying Opportunities Abound
Regardless of market conditions, an opportunity always exists in the residential real estate market. That tried and true maxim is particularly accurate today as aid programs appear that are designed to steady the residential housing market and reopen the doors of home ownership to a wide range or prospective buyers.

Even as some home owners still struggle with the excesses of the past, once-in-a-lifetime opportunities to buy are available now or will soon emerge. No one knows how long these special programs will be available.

Remember, prices are at an all-time low. Interest rates are favorable. Lenders are making loans, albeit at higher qualifying standards. And, while not excessive, the inventory of homes listed for sale offers a wide selection. That inventory contains attractively priced homes being sold through foreclosure proceedings along with many listed for sale by traditional sellers, which often can offer a quicker, easier sale at a more attractive price.

There is ongoing debate as to whether rescue efforts from the nation's capital will prolong or speed the recovery, but several points seem crystal clear:

Recovery is, in fact, underway. More assistance programs are likely to emerge in coming weeks. At some point in the not to distant future, today's buyers' market will fade and a golden opportunity to buy a home and invest for the future will pass.

This is a brief overview of just a few of the many aid programs designed to help first-time and repeat home buyers. A more detailed version of this story aid programs are available at www.srar.com.Contact your Realtor^®for details.

Higher Loan Limits

The higher loan limit of $729,750 - due to be eliminates at the end of December - makes loans more affordable, especially in high-cost housing regions such as California.

FHA loans are back

FHA loans are back in force and are plentiful. In some instances the down payment required is as low as 3%. More than 20 percent of new loans are expected to have FHA financing.

Realtors offer $4,000 Grants

First-time home buyers who purchase a home in the San Fernando or Santa Clarita Valleys may be eligible to receive a $4,000 grant to ease the burden of closing costs. The grants are available from the Southland Regional Association of Realtors. For details, write via email to Rubenf@srar.com.

L.A.City and California Programs

An array of city and state programs are available to help low- to moderate-income buyers into a home. Many programs are aimed at first-time buyers, but repeat buyers are welcome, too, to get assistance with a down payment or closing costs.• The California Housing Finance Agency - CalHFA offers multiple programs to help families purchase a home. Call your Realtor today for details on these and a growing number of homebuying opportunities!

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.

Some Homebuying Tips in Today's Market

Mark Gonzales (Rodeo Realty) — Mon, 17 Nov 2008 15:11:23 -0600

Regardless of what you might have heard about the home buying market, the statistics in Southern California show that this is a great time to buy. First time buyers, investors, and even all cash buyers have found the current market conditions to make owning a home more affordable and easier than ever before. However, having sold Foreclosure and Short Sale properties much of the year, I have some tips to offer for those looking to purchase a home in the next few months.

Condominiums and Town-homes: While the inventory has increased on many of these desirable alternatives to the Single-Family home, there are a couple of things which you should keep in mind.

First, you should get as much information on the Home Owners Association (H.O.A.) as possible when you are in escrow on a Condo or Town-home. An experienced Buyer's Agent will ensure you receive H.O.A. disclosure documents and help you digest the disclosures. You should pay special attention to the financial statements of an H.O.A. Many of these properties are located in complexes who have struggling H.O.A.'s and low cash reserves. This will affect your ability to get a loan on these properties. In addition, it could be a signal that higher monthly dues and assessments are foreseeable in the future.

Second, try to get information on how many units are currently-owner occupied verses tenant-occupied. These statistics will affect your ability to get a loan as well. Complexes with more than 15-25 percent based upon which lender you use, are finding it difficult to secure a loan. These standards are changing on a daily basis so contact your lender and find out their specific requirements regarding condos and town-homes.

Short Sales: From homes built in the 50's to homes built in the 21^st century, short sale homes have been coming onto the market as more and more people are faced with financial issues that make it difficult to pay their mortgages.

Homes that are classified as short sales, occur when the owners of such properties work with the banks to accept a lower amount than currently owed on the property. Such owners in a distressed situation as they can no longer afford to meet their mortgage obligations and opt to execute a short sale to avoid foreclosure as it is less detrimental to their credit. What today's buyer needs to understand about these Short Sale situations is that it is a very long process, but often times it is worth the wait. If you are currently in a situation which will allow you to wait 3-6 months before moving into or taking ownership of your new home, these short sale deals are right for you.

The important thing is this: Have a good understanding of what the bank is looking for in its returns before you place your offer! Often times these properties are listed far below market value in hopes to receive multiple offers. Look at the comparables, at the amount owed by the current owner, and then make an informed decision on what your purchase price should be. Trying to low-ball these properties will only result in your offer being rejected 3-6 months after you place your offer and it most cases can be a waste of time for all parties involved.

In all purchase situations you should work with a knowledgeable and experienced Realtor as they will be able to guide you through the process while protecting your best interests.

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.

ARE WE AT THE BOTTOM?

Mark Gonzales (Rodeo Realty) — Tue, 28 Oct 2008 17:57:24 -0500

The sales data for September has been released from Southland Regional Association of Realtors and to everyone's surprise the numbers are outstanding.

Existing single-family home sales in the San Fernando Valley dramatically increased 81.8 percent during September compared to a year ago. 658 homes sold to new buyers last month- 296 more homes sold that last year this same time.

The number of condo sales also saw an increase during September at 36.1 percent to 211 transactions 56 sales higher than a year ago.

This may signal that we are the bottom of the sharp decline in local real estate values that we have seen in the last 3 years. From personal experience I'm seeing much demand from Buyers as they recognize that pricing of homes are at affordable levels. While my Buyer clients who are actively writing offers see competition from other buyers who are looking take advantage of the opportunities that the local real estate market presents. I would say 90% of my sales have involved multiple offer situations. With that said, it may be still be too early to accurately predict, whether recovery will be slow or fast due to the fact that the details of the legislative efforts that aim to rescue homeowners are still being ironed out.
Moral of the story is that if you are looking to buy a property, can comfortably afford the monthly payments, and have plan to live in the home for at least 5 years, you will most likely see appreciation in your home. The tax advantages in most cases afford homeowners monthly payments that are in some cases equivalent to renting. Most importantly you can take pride in saying you own your own home.For more information visit: http://www.srar.com/members/rronline/10-27-SFVsales.php

Family Fun In October: Los Angeles

Mark Gonzales (Rodeo Realty) — Wed, 08 Oct 2008 16:28:54 -0500

Looking for ideas for you and your family this October and November? Here are a few family fun activities happening in the valley. Hope to see you there!

Dia de los Muertos-Hollywood Forever Cemetery
6000 Santa Monica Blvd., Los Angeles. On November 1st from 4011p..m., the historic Hollywood Forever Cemetery will be transformed by the vibrant colors of the afterlife. Pay homage to the dearly departed when you join in the self-proclaimed "largest and most authentic Day of the Dead celebration," which features a costume procession with traditional Aztec blessings and regional musical-dance group dedications. The highlight is the evening concert for the beloved souls, plus theater performances, displays by local artisans, and traditional Mexican cuisine, all surrounded by altars. Admission is free, but Dia de los Muertos attire is strongly encouraged, so go crazy with the face paint.
323.447.0999 or http://www.ladyofthedead.com/

West Hollywood Halloween Costume Carnaval
8300 Santa Monica Blvd., West Hollywood. West Hollywood's Halloween festivities are not for the faint of heart. Free weeklong events lead up to the Costume Carnaval, which celebrates its 20th anniversary this year. The largest Halloween street party in the United States, spectators can expect extraordinary costumes, fabulous drag queens, and well over half a million revelers.
323.848.6400 or http://www.weho.org/

Calabasas Pumpkin Festival
3701 Lost Hills Road, Agoura Hills. Don't' just pick up your future jack-o-lantern at the supermarket-make an event out of it with the Calabasas Pumpkin Festival, a 2-day street fair featuring four stages of live music & entertainment, a karaoke contest with cash prizes, an "authentic" western town, pumpkin pie eating and seed spitting contests, pumpkin bowling, wildlife way station and pet adoptions, no to mention rides, games, tons of food, and a beer garden with pumpkin beer. Admission is free and the festival runs October 18 & 19 from 10a.m.-5 p.m. both days.
818.222.5680 or http://www.calabasaspumpkinfestival.com/

REAL ESTATE MARKETS ARE LOCAL, SOME LA AREAS SEE DOUBLE DIGIT GAINS

Mark Gonzales (Rodeo Realty) — Fri, 03 Oct 2008 14:57:50 -0500

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.

file:///C:/Documents%20and%20Settings/Jeanette/My%20Documents/blog%20photos/LACountyHomeSales0708.jpg.html#

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.

REAL ESTATE MARKET OUTLOOK

Mark Gonzales (Rodeo Realty) — Thu, 25 Sep 2008 16:32:37 -0500

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

2008 SUCCESS!!! MARK'S SUCCESS TRACKER

Mark Gonzales (Rodeo Realty) — Thu, 18 Sep 2008 13:52:14 -0500

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!!!

MY RECORD SPEAKS FOR ITSELF!

2008 HOME SALES:

THANKS TO ALL OF MY CLIENTS
FOR MAKING 2008
A PHENOMENAL YEAR!

6850 BOVEY AVE.                  $460,000
19630 SATICOY ST.                 $299,000
6534 AURA AVE.                     $369,000
20134 LEADWELL #334           $275,000
5500 OWENSMOUTH #318      $260,000
18433 HATTERAS #507           $355,000
9174 LANGDON AVE.             $390,000
6501 RANDI AVE.                   $475,000
22652 PAUL REVERE             $840,000
23745 BURTON ST.                $585,000
20232 LORNE ST.                   $430,000
10179 LARWIN AVE. #2          $379,000
13320 ROSCOE BLVD.           $360,000
11542 BURBANK BLVD. #4     $292,500    IN ESCROW
7836 SHOUP AVE.                  $439,000    IN ESCROW
5354 DENNY AVE.                $339,000    IN ESCROW
                                        $6,547,500 GROSS SALES

SHERMAN OAKS GALLERIA RENOVATED IN LESS THAN A MINUTE

Mark Gonzales (Rodeo Realty) — Thu, 18 Sep 2008 13:44:25 -0500

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.

IT'S STILL HAPPENING....MULTIPLE OFFERS

Mark Gonzales (Rodeo Realty) — Thu, 18 Sep 2008 13:39:45 -0500

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.

THE NUMBERS ARE IN!! SALES INCREASE 16% FOR THE MONTH OF JULY

Mark Gonzales (Rodeo Realty) — Thu, 18 Sep 2008 13:37:49 -0500

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

IS THIS REALLY THE WORST MARKET IN YEARS???

Mark Gonzales (Rodeo Realty) — Thu, 18 Sep 2008 13:35:43 -0500

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.

Housing and Economic Recovery Act of 2008

Mark Gonzales (Rodeo Realty) — Thu, 28 Aug 2008 14:53:35 -0500

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).

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.

JUST A QUICK REAL ESTATE THOUGHT

Mark Gonzales (Rodeo Realty) — Thu, 28 Aug 2008 14:49:11 -0500

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!

FORECLOSURES, GREAT DEALS WITH HIGHER RISK PT III

Mark Gonzales (Rodeo Realty) — Thu, 28 Aug 2008 14:46:37 -0500

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.

FORECLOSURES, GREAT DEALS WITH HIGHER RISK PT. II

Mark Gonzales (Rodeo Realty) — Thu, 28 Aug 2008 14:45:15 -0500

To continue my rant on this hot topic on foreclosures where's part II explaining why buying foreclosures have higher risk:
2. Foreclosures are sold AS-IS. I tell all my clients that when you buy a foreclosed property you are purchasing it AS-IS, which means the bank who owns the property will not agree to complete repairs or provide any credits in advance. So the tactic of buying a foreclosure and then asking for a HUGE repair credit won't work. However, the buyer sill has a right to ask, after all the worst thing that could happen is that they say NO! I encourage credit or repair requests especially if there are significant repairs that involve mold, water damage, tenting the home for termite repairs. Some banks will often provide the termite and retrofitting reports during negotiations. If the cost of such repairs proves to be a significant amount of money, I will always advise the client to ask for a credit upfront to help pay for those repairs. With that said, I would advise anyone looking to purchase a foreclosure to not buy one if you assume the bank will do repairs or provide credits. It's just not realistic in our current market.

STAY TUNED FOR PART III.

FORECLOSURES, GREAT DEALS WITH HIGHER RISK

Mark Gonzales (Rodeo Realty) — Thu, 28 Aug 2008 14:43:56 -0500

To the 1st time homebuyer or novice real estate investor, the word FORECLOSURE or REO means a good deal. While in most cases this is true, many buyers are surprised to learn that buying Foreclosures are riskier than purchasing a home owned by a traditional home seller who is not in distress.
So you may ask what makes purchasing a foreclosure so risky? Having recently represented several buyers in the last 60 days, I've learned the pitfalls and risks associated with purchasing these GOOD DEALS
Here's what I've learned:
1. A hot foreclosure deal usually gets many buyers to compete for the same property. After all that's the point of buying in a buyer's market, to get a good deal. About 65% of the foreclosure properties I'm selling have multiple offers. Multiple offers have been so evident lately, that one of my friends who represents banks as a listing agent had 30 offers on a property. Point is be prepared to bid over list price if you really want the property. Of course it has to make sense to do so. I provide all my buyer clients with a Buyer Comparative Market Analysis, which is a list of comparable homes for sale, in escrow, and that have sold. If the price you're willing to offer (plus estimated repairs) is 10-15% below market value, it may be a wise decision to jump ship and place that offer. Besides, you can always cancel the sale if you find something you don't like within the agreed upon timeframes.

SO THAT I DON'T LOSE MY READERS WITH A.D.D., I WILL BE COMPLETING THIS POST IN A 3 PART SERIES.

MULTIPLE OFFERS!!! HAPPENING AGAIN??

Mark Gonzales (Rodeo Realty) — Thu, 28 Aug 2008 14:42:13 -0500

Yes it's true! I'm seeing multiple offer situations on well priced properties. Multiple offers can be seen on Foreclosure and Short-sale listings the most. The general impression out there is that Real Estate isn't doing so hot right now. While it may be true that number of sales are their lowest in over a decade. Single family homes in the $300k-$400k range are attracting multiple offers from qualified buyers who are utilizing special FHA loans which require only 3% down payment and to everyone's surprise there are buyers who are placing offers with ALL CASH and 20-50% down payment. With inflation at its highest level in years, the dismal performance of the stock market, many savvy investors still bet that purchasing Los Angeles real estate is a secure long term investment. I agree with this due to basic laws of economics; supply and demand factors: they're not making any more land, developments are becoming more vertical than horizontal, and the glitz and glamour continues to lure more people to the city resulting in appreciating values over next 7-10 years.

Now the REAL PROFESSIONALS CAN SHINE-Get your listings SOLD

Mark Gonzales (Rodeo Realty) — Wed, 27 Aug 2008 18:25:26 -0500

Here's a blog I recently wrote which provides tips on how to get your home sold in down market.

Now the REAL PROFESSIONALS CAN SHINE-Get your listings SOLD

It's amazing what a down market can do for real estate professionals who take their careers seriously and dedicate the time, hard work, and dedication necessary to attain the skills required to successfully help buyer and sellers close sales transactions. In the past 60 days a majority of our listings have sold within 3 weeks, despite the fact that inventory has been increasing and the amount of buyer's have dwindled down. Here's what we've done to get our listings sold:

1. Price below the active inventory comparable to the listing.

Often sellers will price their home based on sold comparables. While this maybe the way to sell listings in an appreciating market it may not be the best way in a declining market. Sold values are based on list prices from the previous 60-90 days, which in a declining market are usually higher than what a buyer is willing to pay. If sellers are hesitant to set a realistic list price, than ask that the home be reduced in 3 weeks if no offer is received.

2. Make sure the listing is fantastic marketing/showing condition.

If a seller wants to get top dollar for their home, they must make sure that their home is in top quality condition. Painting, thorough cleaning, enhancing curb appeal and making repairs that are obvious to the naked eye will help bring in offers that are higher than if such actions are not done. Buyers pay more for the convenience of not having to make repairs or upgrades. This is extremely important in a down market as buyers will take cost of doing such items and multiply them by 2-3 times the actual cost of making such repairs.

3. Pay attention to the way you market the listing.

Essentially as Realtors we are selling a product (the home) and help create an emotion associated with the product by marketing or presenting in a certain manner. Consumers pay more for products that are associated with a desirable lifestyle. This theory can be applied to denim jeans. There are now a hundred brands of jeans and they can range from $20.00 to over $400.00. You may ask why one brand of jeans costs more than another when essentially they are the same product "denim jeans." One answer it's the way they are marketed. So pay attention to the pictures and how you write your marketing remarks in the public remarks section. With the IDX and sites such as REALTOR.COM your marketing remarks and pictures are being seen by hundreds of thousand of people. Use words that enhance the home and ooze how buying the home will enhance the buyer's lifestyle and quality of life. Also, don't forget to upload a virtual tour with music to help create an emotion that will help the listing stand out in the buyer's mind.

4. Make sure the web presence of the listing is maximized.

According the NAR, over 72% of buyers search the internet before even stepping into home. Knowing this fact make sure your listing is present on all the most popular websites such as REALTOR.COM, Zillow.com, Trulia.com, Craigslist.org, and Googlebase. You can create a free virtual flyer which will post to many real estate sites at http://www.vflyer.com/

These are just some of the ways we've used to get our listings sold. Hopefully it helps to get your listings sold as well.

Positive Attitude- A necessary ingredient for success

Mark Gonzales (Rodeo Realty) — Wed, 27 Aug 2008 18:24:26 -0500

So just want to share some positive thoughts to help uplift and inspire those who believe in positive thinking....

So yesterday I start my day excited and enthused because I have to send an offer on behalf of one of three buyer clients I picked up 2 Fridays ago. They are WELL QUALIFIED and are extremely motivated to purchase a home which is rare in this slumping real estate market. However, they are so smart to buy because there are amazing deals out there. So as I'm completing their offering package I get called out of my office during the company meeting that I could not attend because I was working on the offer (as of today I'm in escrow with these buyers). I come out of my office and they wish me happy birthday. Then I slip back into my office to get back to work and then I was called out again. Apparently, I made TOP 5 in the office out of 80+ agents! I was ecstatic as it has always been a dream of mine to be in the top rankings since I've joined one of the top real estate brokerage firms in the nation. After briefly basking in my exciting and proud moment I slip back into my office to finish working.

I continued my day by going home to my new place in Sherman Oaks, a neighborhood I absolutely love and enjoy and think how blessed I am to be working and making money in an industry that everyone (including the media) says is going through a decline. Then I made a short trip to Hollywood to pick up this beautiful painting that I purchased from the World of Wonder gallery. During my trip to the gallery I get a phone call from my new Realtor friend, Danica Rozelle, saying that her client accepted a counter offer that my seller drafted. To make a long story short, she said "Happy Birthday, we're in escrow!"

These accomplishments coupled with my 25th birthday make me realize how blessed I am and that with the right attitude, determination, and hard work you can persevere no matter what the circumstance is. I took huge chance stickin to residential sales as I gave up the opportunity to have a very lucrative career in commercial real estate to pursue a full-time career in residential real estate. I did this simply because I didn't have my heart in selling buildings. However, after having much success in the past 3 weeks since making the decision to commit to residential, I now know the decision was correct.

Moral of story is stick to what your passionate about. Passion and happiness come first before money. If you're not passionate about what you do, then it will be harder to become successful and attain happiness.

So my friends, stay positive no matter what people tell you or no matter how much competition you're against. Always be thankful and grateful and think of how you can help people in everything you do. Doing these things will help you lead fulfilled, happy, and successful lives. I wish everyone more success and happiness. Happy Holidays!

Importance of the Listing Detail Report

Mark Gonzales (Rodeo Realty) — Wed, 27 Aug 2008 18:23:33 -0500

9 out of 10 times a listing will be sold with the help of a selling agent showing the property to their prospective buyers. Therefore one of the items that seller's should pay attention to and ask their agents is how will you market my home to other agents?

While ther are numberous methods to promote and market listings to agents such as Broker's opens houses, mass e-mailing, and mailers. The single most important way listings are marketed is the Lisiting Detail Report. The details that go into this report are important as this may be the first impression that buying agents and their clients have when searching for homes. If the marketing remarks, pictures, and virtual tours do not entice the agent to show the property, then they will not send the listing information to their clients and therefore the property will not be shown. Decreasing the chance of getting offers.

So make sure that marketing remarks and photos appeal to readers to convey the listing in a way that gets the agents excited to show the property. More showings mean more offers and more offers means that there is a higher possiblity the home will sell faster and for the most money in a dynamic real estate market.

Importance of the Listing Detail Report

Mark Gonzales (Rodeo Realty) — Fri, 07 Mar 2008 04:27:07 -0600