CALIFORNIA HOME SALES UP 101%

California Home Sales up 101%

California Home Sales up 101%Quick Facts - Existing, single-family home sales increased 100.8 percent in January to a seasonally adjusted rate of 624,940 units.
The statewide median price of an existing single-family home decreased 40.5 percent in January to $254,350
The Unsold Inventory Index was 6.7 months in January, compared with 16.6 months in January 2008
The median number of days it took to sell a single-family home was 49.9 days in January 2009, compared with 70.8 days in January 2008

Source: California Association of Realtors®

Some Homebuying Tips in Today’s Market

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 21st 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.

2008 SUCCESS!!! MARK’S SUCCESS TRACKER

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!!

MY RECORD SPEAKS FOR ITSELF!

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

2008 HOME SALES:

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

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.

IT’S STILL HAPPENING….MULTIPLE OFFERS

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

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/summaries/2008/july/SFV.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.

SHERMAN OAKS GALLERIA RENOVATED IN LESS THAN A MINUTE

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.

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.

IS THIS REALLY THE WORST MARKET IN YEARS???

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.

Housing and Economic Recovery Act of 2008...What does it mean???

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).

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.

FORECLOSURES, GREAT DEALS WITH HIGHER RISK PT III

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. If there is any indication that the Buyer cannot close on time due to the loan processing, delays in receiving reports, and any other extenuating circumstances, I make sure that an addendum is drafted extending the close of escrow date. I also indicate that the per diem will be waived if escrow is closed by the new close of escrow date.

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.

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.

FORECLOSURES, GREAT DEALS WITH HIGHER RISK PT. II

To continue my rant on this hot topic on foreclosures here’s Part II explaining why buying foreclosures have higher risk:

• 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 tune for Part III....

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.

FORECLOSURES, GREAT DEALS WITH HIGHER RISK

To the 1sttime 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:

• 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?

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.

TOOLS OF THE TRADE

If you're in the housing market you need to do your homework before hitting the listings! Analyze your income vs. debt and use the how much can I afford? tool so the housing dollar signs don't grow bigger than your maximum wallet capacity.

Other tools of the trade to help ease your money mind: mortgage payment amortization, mortgage calculator

Already own a home? Test out this handy tool: should I refinance?

My Brag Sheet

I pride myself in having the academic knowledge and theoretical skills to help clients make educated decisions. After a long and treacherous journey through college, I am proud to say that I earned my Bachelor's Degree in Business and Real Estate from California State University, Northridge . Whereas most agents have only taken relatively few courses in Real Estate, I have formal training in the fields of Real Estate & Business Law, Real Estate Finance, Business Communications, and Economics. I love to talk and make sure that I’m fighting for your best interests. By using my negotiation skills I have helped save homebuyers significant amounts of money, while home sellers I represented received top dollar for their homes. In addition to my academic accolades, I’m a self proclaimed internet marketing geek!! I make sure that the homes I sell are listed on of the country’s most powerful internet real estate websites. My client’s homes can be seen REALTOR.COM, HOMEGAIN.COM, ZILLOW.COM, and RE/MAX.COM. Shoot me an e-mail or if it's really important call me and I'll show you how I can help you reach your real estate goals!

Buying and Selling...It's Serious Stuff!

Buying and selling a home is one of the most significant financial decisions a person can make in their life. With the dynamics of the real estate market and the increasingly important role of technology and the internet, it is important who you choose to represent you in the purchase and selling of your home. An excellent Realtor must have the experience, knowledge, and innovation to successfully sell homes in today's real estate market. Recognizing that Los Angeles’ real estate consumers are savvy, sophisticated, and of course hip and stylish, I have created a plan and system that successfully helps clients reach their real estate goals while making the experience positive and fun.