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.

ARE WE AT THE BOTTOM?

The sales data for September has been released from the 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 than 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 at 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. 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 the recovery of the housing market 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 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 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

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.

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. 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.

THE GREAT WALK ON WILSHIRE FROM DOWNTOWN LOS ANGELES TO SANTA MONICA

I thought this was a neat video:

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.

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.