
Sunday, April 4, 2010
Water, Wood, Glass & Steel

Another gorgeous architectural has been unveiled in Beverly Hills. Remodeled from the ground up 1125 Carolyn Way offers modern finishes and beautiful mature landscaping. We are still waiting for a property Web site to be unveiled, but in the meantime check out this teaser photo.. List price $5.5 million.
Thursday, April 1, 2010
Thursday, March 25, 2010
Save The Hollywood Sign
The city of Los Angeles, non-profit groups and KPCC have teamed up in a last effort to save the area surrounding the Hollywood sign from development. They are hoping to purchase the surrounding property for $12.5 million, but in order to do so they must raise an additional $3 million by April 14. If the money is not raised, the property will be sold to real estate developers for $22 million, and a series of ridge top mansions will be built on the land.
>> Click here for more information <<
>> Click here for more information <<
Wednesday, March 24, 2010
B of A To The Rescue?
Today Bank of America will be announcing a new program that will assist homeowners who owe more than 120% of their homes value. It will be 5-year process involving principal reductions to bring mortgages down to 100% of home value. However, unlike most plans that have "helped" homeowners, this one requires on-time payments...
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>> Click here for more information <<
Monday, March 22, 2010
Friday, March 19, 2010
Zoom Zoom
High-speed trains are finally coming! President Obama has 'stimulated' this process by offering $8 billion for 13 high-speed corridors across the US, which includes a route between San Francisco and the Los Angeles!! This initiative has international companies flocking to the US to take part in this revolution. Perhaps it will also end up drawing foreign investments... This will not just make travel more convenient, it will improve the value of our communities and subsequently the value of our properties!
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Up, Up & Away
Good news. From February 2009 to February 2010 the average California home price increased by 11%! Analysts attribute this to a decrease in California foreclosures and an increase in high-end sales. This is not just of interest to consumers, but to banks as well. Banks have stronger assets, as the loans they wrote last year are worth less than the assets that secured them. In other words, banks have had such a rough patch because mortgages are secured by real estate. If that real estate loses value, then the mortgage has not guaranteed way of being repaid. On the flip side, when a bank forecloses on a home that has a higher value than the outstanding debt, it can still recover the balance of the mortgage or even a profit.
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Thursday, March 18, 2010
Sell! Sell... Sell?
Ever since the announcement that the state property would be sold to try to salvage the state's deficit Californians have been in an uproar. But the anger has died down, as the properties are not selling. Most notably, the O.C. Fairgrounds recently were up for auction. However, the bids came in well below expectations so the land was not sold. The state is recklessly trying to sell off its assets when they are clearly undervalued. It should take its foot off of the gas pedal, and focus at streamlining its systems. Perhaps by halting the spending millions of dollars for the governator's self-serving celebrity clad advertisements for California? Thoughts...?
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Wednesday, March 17, 2010
Homes For The Homeless
Over the years Santa Monica has had a love/hate relationship with its large homeless population. However, since 2007 civil rights activists and Santa Monica's residents have been fighting with the homeless against persecution and harassment by police. This has led to the development of numerous low-income housing developments, so that these people can have a place to call home. In one of the more expensive areas of Los Angeles, these developments offer rents from $300-$400 per month... This is extremely inexpensive for Southern California in general... And I am pleased with the benchmark Santa Monica is setting. Ignoring a problem, as Santa Monica had in previous years, only makes it worse. We need to find ways to reintegrate these people back into society, and finding a place for them to live is the first step.
>> Click here for more information <<
>> Click here for more information <<
Wednesday, March 10, 2010
Mortgage Applications Continue To Rise
Although more people are applying for mortgages, the number of people pursuing refinancing is dropping. Perhaps this is because those who can afford to refinance have already done so? Interestingly, the demand for homes is increasing, but there are still clear signs that we will be hearing about massive foreclosures well through this year...
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Sunday, March 7, 2010
Pricey Real Estate
Some pricey real estate, shows up in a place where you might not expect it...
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Saturday, March 6, 2010
11,300,000 Homeowners Are Upside Down
11,300,000 homeowners owe more on their homes than their homes are worth! These borrowers will have a VERY difficult refinancing, since they lack enough assets to secure a mortgage. Furthermore, they also will have trouble selling their home as they will have to pay the bank the difference between the selling price and the balance of their loan...
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When The Economy Strays, Criminals Get Away?
As California struggles with its budgets, jailed inmates in Los Angeles are enjoying early releases... Yes that is correct, the city would prefer to let criminals loose before cutting jobs. How does this relate to real estate? Good questions. Where will these criminals go? Back to their neighborhoods. It is not right. We need to be able to stand by our laws regardless of economic conditions.
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>> Click here for more information <<
Friday, March 5, 2010
Whistle While You Work
Ways to encourage real estate purchases:
#1 - Tax incentives
#2 - Informed representation
#3 - Employment
We already know that #1 and #2 are already in effect, but #3 is beginning to look promising. Even with California's unemployment rate well above the national average, economists are saying that the worst is over. However, it is important not to focus on the unemployment rate. We can expect the unemployment rate to increase slightly as people being looking for work as new jobs become available. In January California added 32,500 jobs in multiple sectors.
This is crucial to the real estate recovery.
People need jobs to buy real estate, and to maintain mortgages.
>> Click here for more information <<
#1 - Tax incentives
#2 - Informed representation
#3 - Employment
We already know that #1 and #2 are already in effect, but #3 is beginning to look promising. Even with California's unemployment rate well above the national average, economists are saying that the worst is over. However, it is important not to focus on the unemployment rate. We can expect the unemployment rate to increase slightly as people being looking for work as new jobs become available. In January California added 32,500 jobs in multiple sectors.
This is crucial to the real estate recovery.
People need jobs to buy real estate, and to maintain mortgages.
>> Click here for more information <<
Thursday, March 4, 2010
Good News?
Northern California is showing signs of true recovery in the housing market. Our northern neighbors saw multiple offers for 36.6% of the homes sold in January. And although this figure includes foreclosures, multiple offers mean there are parties competing to buy the same property. However, the issue analysts are concerned about is the growing number of shadow properties. Shadow properties are homes that have already been foreclosed, but that have not been placed on the market. If too many of these properties get listed simultaneously it could cause another decline in home values.
>> Click here for more information <<
>> Click here for more information <<
Wednesday, March 3, 2010
Stunning NEW Development In Los Angeles
ULTRA-MODERN newly constructed development opens its doors and already has 1 unit sold and 4 units in escrow. Take a look at this place. Stunning.
>> Click here for more information <<
>> Click here for more information <<
Low Rates Stimulate Growth.
According to an analysis conducted by the Fed, the housing bubble was not caused by its low rates. This information was released to help bolster support for low current and future rates. The bottom line: low rates stimulate growth, not trouble. However, whether rates are high or low, it comes down to taking personal responsibility. We all need to read the fine print to make sure we are not getting in over our head.
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When The Rates Are Low, People Will Borrow Money
Delinquent mortgages aside, new mortgages are on the rise. It seems that regardless of impending foreclosures, the banks are still making loans. Or rather, the rates are SO low right now (4.95 for a 30-year fixed), that borrowers are applying for new mortgages and homeowners are refinancing. Will this be enough to balance bank books...? We will have to wait and see.
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>> Click here for more information <<
Monday, March 1, 2010
Will Record Mortgage Delinquencies Prohibit Recovery In The Real Estate Market?
I am constantly being asked, "When will the market improve?" The truth is that no one knows for sure, but I feel comfortable in suggesting that a true recovery will not happen until the mortgage crisis truly subsides. Excessive mortgage delinquenices give way to excessive foreclosures. And according to the AP during the fourth quarter of last year almost 7% of mortgage borrowers were 2-months or more behind on their payments. That is very troublesome.
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>> Click here for more information <<
Thursday, January 28, 2010
Do Not Be Confused By Sensational Headlines
Recently fans of Michael Jackson purchased a house he rented in Las Vegas for over $3 million. The story is being publicized as a sign Las Vegas market conditions are improving. I completely disagree, when it comes to the Las Vegas market which was completely over-inflated well beyond California. This was the biggest sale in over a year, for the city of Las Vegas. Developments are the major force in Las Vegas real estate transactions. Unfortunately, the only development seeing substantial returns is the City Center, and even they have not been able to sell out. Research your area, and your prospective property before purchasing. Don't fall victim to sensational headlines.
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Are Foreclosures A Good Deal?
Foreclosures have not always been a good deal. Sometimes they can even cost more than purchasing a non-bank owned property, when you consider the repairs that the buyer will end up paying for. So is there good news? Yes. Across the nation foreclosed properties are selling at prices 28% below (on average) similar properties that are not in foreclosure. Remember though, that we also need to take into account the prevalent practice of allowing homeowners to price their property and many of them have priced their properties well above market value.
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Tuesday, January 26, 2010
The best news from the worst place?
Freddie Mac's CEO believes the housing market is about to plateau before it rebounds. However, it is hard to trust the man at the helm of Freddie Mac. I equate it to trusting the chef at a restaurant where I got food poisoning... but read the article and tell me what conclusions you arrive at.
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>> Click here for more information <<
Tuesday, January 19, 2010
Home Values In Los Angeles Are UP!
GREAT NEWS! Home prices are up in Los Angeles. In December 2009 prices increased 1.4% when compared to November 2009, and by 4% when compared to December 2008. We have all heard news about how the volume of residential real estate sales has increased, but could a steady increase in home values be a light shining at the end of the tunnel we have been trapped in since the mortgage crisis broke. Or has the market been falsely inflated by government incentives?
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>> Click here for more information <<
Thursday, January 14, 2010
Earthquake Relief
Sorry it has been a few days since I have posted. Life has been really busy, with work and a pending move. But today I am not writing about real estate. Today I am writing to inform you all where you can go to make a donation to the victims of the earthquake in Haiti. Every dollar helps, and they certainly need it.
>> Click here for more information <<
>> Click here for more information <<
Saturday, January 9, 2010
Banks Are Ready To Write Mortgages On Vacation Homes
At the height of the financial crisis it was hard to get a loan for a primary residence, let alone a vacation home. However, now banks are prepared to write mortgages on second homes. Though there seems to be hesitation on the part of borrowers. With the national unemployment rate hovering around 10% this hesitation seems more than justified.
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>> Click here for more information <<
Friday, January 8, 2010
Improving Real Estate Conditions = Upward Trend In U.S. Stock Market
U.S. Stocks have steadily increased to a 1-year high, hovering around 10,600 points! While holiday sales have assisted the stock market, it is an “easing real estate concern” that has significantly bolstered the market. Across the nation sales are up, and in many areas home values are also on the rise. The real estate industry was at the heart of our financial crisis and it looks as if it will also be at the crux of our financial salvation.
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>> Click here for more information <<
Westchester Sepulveda Boulevard Improvement Complete
Westchester residents have reason to celebrate as a 2-mile stretch of Sepulveda Boulevard running through their city has recently been improved. One of many public projects, this renovation has added landscaping and increased the street’s width to accommodate heavier traffic. I expect this will positively affect neighboring real estate as the city did an excellent job (see link below). Furthermore, stay tuned for news on other public projects in the LA area.
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>> Click here for more information <<
Thursday, January 7, 2010
Shanghai Home Values Increase By 68%
What if your home’s value increased 68% in one year? Yes. One year. That is what residents of Shanghai have experienced. It will be interesting to see what Chinese homeowners do with their newfound equity. Will they make smart decisions...? Or unload their equity in lines of credit like many Americans did before the market crash.
>> Click here for more information <<
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Happy New Year?
Happy New Year! I just got back into the country and was disappointed to see that interest rates have gone up past 5%! Though it does seem from what I have read thus far that rates are on a slight downward trend. However, this is a far cry from the 3.5% that was forecasted for January/February 2010 just weeks ago... I will keep you all posted.
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>> Click here for more information <<
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