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.


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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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Stunning Newly Constructed Architectural

Stunning architectural hits the market tomorrow. Stainless steel, concrete and glass combine to, as listing agent Aaron Kirman states, "raise the bar for architectural homes in Los Angeles." I think I agree... do you?

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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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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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.

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The Kitchen.

A kitchen will make or break the deal for me. And this kitchen, from the Sabine on South Lake development in Southeast Pasadena, is definitely a winner.

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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Pricey Real Estate

Some pricey real estate, shows up in a place where you might not expect it...

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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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The Closet.

To some people a closet can make or break a deal. Check out the master bedroom closet from a unit at the newly developed Roxbury Place, adjacent to Beverly Hills.

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.


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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.

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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.

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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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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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