market conditions: The Rise of a Great Market - 04/17/12 01:44 AM
 
I am loving this real estate market right now. The moment has arrived! Record breaking mortgage rates, the highest level of home affordability in years, increased demand, and a decrease of homes on the market- make this one of the best times to buy or sell a home in recent years!  
According to Realtor.com the number of homes on the market has fallen 22% in the last month. In addition, asking prices have increased 6.8% as demand from buyers has increased. Inventory of homes on the market is estimated to be at a 6.1 month supply, which is the lowest … (0 comments)

market conditions: Interesting News for the Investment Property Community - 04/11/12 05:19 AM
Interesting News for the Investment Property Community The Federal Reserve has released guidelines that could encourage the practice of converting lender-owned foreclosed homes into rental properties. By converting foreclosures to rentals with steady cash flow, banks could reduce the number of their "substandard assets," a classification used by banking regulators to determine the health of banks. The central bank also said that lenders could receive Community Reinvestment Act credit for providing housing to low-income and moderate-income people by successfully converting foreclosed homes into rentals. The policies could help encourage a nascent move to turn banks' foreclosure inventory into rental properties and then sell those homes … (2 comments)

market conditions: What a Recovery Looks Like - 04/02/12 08:36 AM
Over the past few months, many economists have concluded that that the U.S. housing market has reached a turning point and is healing. This may sound hard to believe, since home prices are not shooting back up.
 
Indeed, prices aren't likely going to rise for a while. But this doesn’t mean the housing market isn't on the mend. Perhaps we're looking at the recovery all wrong, and this is according to Paul Dales at Capital Economics. In a report to clients recently, he said higher prices won't be the sign that tells us there's a real recovery under way. … (0 comments)

market conditions: Getting Ready to Buy a House - 03/15/12 04:43 AM
Getting Ready to Buy a House Advice for first-timers     Spring is here! And I’m starting to meet a lot of those excited first time buyers. I was inspired to dedicate this week’s newsletter to them. So here is my advice, new members of the buying club…     1.  You want a decent downpayment.  FHA loans are more of a hassle and more expensive than conventional loans; conventional loans with less than a 20% downpayment usually require hundreds of dollars worth of mortgage insurance, the dreaded PMI.     Moreover, saving a reasonable downpayment--ideally 20%, and minimally, at least … (0 comments)

market conditions: Supply and Demand: Correcting the Imbalance - 03/05/12 01:50 AM
I love when business concepts like supply and demand get to prove themselves. Inventories of homes listed for sale in January dropped by 6.6% from December to 1.77 million, the eighth straight month that listings have declined. For-sale listings are 23.2% below year-earlier levels and at the lowest point since the housing bust accelerated five years ago, according to data fromRealtor.com. So, do the principles of supply and demand come into play right now? Do costs go back up?   Housing inventories typically rise heading into the spring selling season, but only four markets saw inventories increase from December, none of … (1 comments)

market conditions: Confidence - 02/20/12 04:28 AM
According to a survey conducted by Fannie Mae in January, 71% of 1,000 people polled believe that now is an excellent time to buy a home.  Thirty percent of respondents also reported that they believe the U.S. economy is heading in the right direction, compared to only 22% when surveyed in December. 
 
Sales of existing homes are also expected to rise between 2-5% in the coming year.  Bel Air has reported a 14.3% price increase from 2010 to 2011, while West Hollywood and Beverly Hills have also reported prices up from the previous year. Home sales in Los Angeles County have risen 0.8% … (1 comments)

market conditions: 2012 -- Year of the Political Economy - 01/23/12 07:35 AM
Fannie issued an article about how 2012 is the year of the political economy. Stating that the rise and fall of our housing market would be based entirely on how the economy itself fares this year. And so far so good. The housing sector is showing improvement due to gains in employment.
 
Not only that but Fannie believes the second half of this year will be great for the housing market because of positive consumer behavior. The global economy is to be considered when trying to make a housing forecast. But the Brightside of 2012 will show growth because of … (1 comments)

market conditions: Here’s the Good News! - 12/05/11 06:57 AM
 
I always try to be a positive person and I try my hardest this time of year. Everyone should be jolly! So here are bits of good news I’ve discovered in the market recently…
Pending sales of existing U.S. homes surged in October by the most in nearly a year. And I should know, I’m in escrow on one- about to be two properties. My clients aren’t alone; Americans are taking advantage of low interest rates for mortgages. Sales of existing homes jumped in October, they are up 1.4%, rising to 4.97 million units from a downwardly revised 4.90 million … (2 comments)

market conditions: Giving Thanks for an Improving Market! - 11/21/11 08:06 AM
As big as our t-day plates will be, I have even bigger plans for 2012. October’s home sales rose 1.4% to a seasonally adjusted annual rate of 4.97 million.  It’s growing ever nearer to the economists’ estimation of a healthy housing market.
 
The October increase in home sales beats analysts’ expectations. Just like my mother’s turkey recipe beats everyone else’s attempts. 
 
Activity among first-time buyers rose slightly last month to make up 34 percent of sales. That's up from 32 percent in September. First-time buyers are the last people I thought would come to the rescue of this … (3 comments)

market conditions: Don't Believe the Holiday Hype - 11/14/11 08:40 AM
Many sellers that I have spoken to are all about the holidays being a bad time to put your house on the market. This has come as a shock to me seeing that I’ve sold homes over the holidays for the past 15 years.
The most common question for sellers is “When is the best time to put our house on the market? Answer: “Whenever you’d like.” In fact, there is a group of motivated, ready and willing buyers for nearly every possible home. 
I encourage people to think back to when they bought their home originally. Did you buy … (0 comments)

market conditions: The Bill that Can Change the Market - 10/24/11 09:13 AM
The Bill that Can Change the Market
The newly proposed bipartisan Senate bill is poised to encourage foreigners to buy U.S. homes. The bill would allow foreigners who spend at least $500,000 on a residential property to obtain visas allowing them to live in the United States.
American consumers and the federal government have tried their darndest and not been able to bail out this real estate market. Now wealthy Chinese, Canadians and other foreign buyers could get their chance.
Two U.S. senators have introduced a bill that would allow foreigners who spend at least $500,000 on residential property to obtain … (2 comments)

market conditions: The Truth Behind Some Real Estate Myths - 07/26/11 10:45 AM
When it comes to real estate, all is not always as it seems. Many buyers — and some sellers — labor under misconceptions that could sink their housing aspirations.
Take the notion that you will hunt for a house until you find the "perfect" one. Sorry. There is no such thing as the perfect house. Even gently used houses come with blemishes. And new homes rarely, if ever, have absolutely everything you want at the price you want to spend.
Another popular myth is that the longer a house is on the market, the more willing the seller will be to … (1 comments)

market conditions: Postive Trends in the Market - 06/20/11 04:42 PM
I hope that everyone is having a wonderful month and is surviving the effects of Los Angeles' June gloom; however, the sun does seem to be breaking through the clouds in more ways than one. We have noticed some positive upswings and trends in the market with the high end of the market still holding strong. Also, the number of homeowners behind on their mortgages is down and mortgage rates have hit all time lows. This month we are almost even with sales in the $5 million and $10 million dollar range. There have been 24 closed sales of $10 million … (0 comments)

market conditions: To Own or Rent: That is the Question - 04/07/11 10:09 AM
Making the determination to rent or buy will always require a close evaluation of your personal circumstances. Lately, the economy and high unemployment rate have only made it more complex for many families. And that's in spite of historically low mortgage rates.
Many are reconsidering homeownership as a lifetime goal and no longer consider renting a taboo.  But owning a home is a mainstay of the American dream that offers numerous benefits to the homeowner.
Here are two reasons why I always believe owning is superior to renting, if you are in the financial situation to choose, of course.
Homeownership is … (0 comments)

market conditions: Springtime Real Estate - 03/14/11 10:32 AM
Spring is such an amazing time to buy or sell a home. The season, innately, has hopeful and optimistic characteristics and it creates the perfect energy for finding a new home. A recent poll showed that 68% of potential homebuyers and home-sellers expect that their property values will recover in the next year or two. That is up from 47% that expected their home prices would rise at this time last year.
The spirit of renewal that comes during Easter and the luck of the Irish that surrounds March have helped me close many transactions over the years. I have recently … (2 comments)

market conditions: Mortgage Interest Deduction - 02/07/11 09:45 AM

Here's what's happening in the real estate world. The National Commission on Fiscal Responsibility and Reform released its recommendation last week, including the proposed limitation to the mortgage interest deduction ("MID") for homeowners.
This may not affect you, those of you who own one home with a small mortgage. For people with multiple residencies and/or large mortgage sums, now is the time to pay attention. In brief, the commission proposes to limit the mortgage interest deduction to only primary residences (today, they apply to second homes as well), and cap the deduction to $500,000 worth of mortgages (today, it's $1 … (1 comments)

market conditions: Existing Home Sales and Job Growth on the Rise - 01/24/11 10:20 AM
Existing home sales continue to be the beacon of hope in this housing recovery. Sales of existing homes jumped in December, marking the fifth month of gains in the past six months, based on an industry report released Thursday.
Previously-owned home sales climbed 12.3% in December to an annual rate of 5.28 million, from 4.70 million in November, according to the National Association of Realtors. That puts sales at the highest level since the homebuyer tax credit expired in June.
The December rate came in much higher than expected. A consensus of experts surveyed by Briefing.com had forecast an annualized sales … (0 comments)

market conditions: Time to Stop Renting - 01/13/11 08:27 AM
Economist Mark Zandi is among the many leaders who believe that the trend of renting over buying is about to reverse. Many people opted out of buying during the real estate decline in Los Angeles but the tide is about to change. This is a great sign since a healthy housing market features renting and buying at near equal levels.
2011 is the year that buying will reign superior over renting in almost every part of the country. Home prices are very low right now and so is home construction. Household finances as well as the unemployment rate are expected to … (1 comments)

market conditions: New Year, New Results - 01/04/11 08:50 AM
Property markets across the country are relying on an economic recovery to make their Christmas wishes come true. The past year was a tough one. But home prices stabilized in the first half of 2010 as the government offered tax credits to spur sales. That stimulus has come and gone.
This year, similarly, the market will also be affected and driven by what goes on in Washington. Get excited! 2011 has the potential to further the recovery! Large price declines have made housing more affordable than at any point in the last decade. New housing construction is stuck at its … (2 comments)

market conditions: A Luxury Recovery - 12/16/10 07:19 AM
The luxury housing market in Los Angeles still has plenty of zest.  The highest-priced sale in the nation took place in Bel-Air this year.  A 48,000-square-foot Versailles-style estate sold for $50 million.
Another record was set in the Hollywood Hills when actor Sacha Baron Cohen paid $18.9 million on a villa there. The highest priced transaction in that area.
These high profile deals are not only great for those involved but also for society at large.  During the down cycle of the 1990’s, the turnaround in the luxury market was the first indicator of recovery. If mansion prices continue to make … (1 comments)