Finding an area with appreciation potential
Some real estate experts believe that home buyers who purchase a house during the current market will gain equity if they stay in the house for at least five years and purchase in a desirable neighborhood.
MAKING SENSE OF THE STORY FOR CONSUMERS
• Neighborhoods with strong employment bases, such as hospitals, universities, and government, tend to be recession-proof. People desire to live near their jobs, so housing that is in close proximity to these types of industries are generally in higher demand than those in other areas.
• High gas prices and roadway congestion have led many people to seek “walkable” communities – neighborhoods that offer both daily needs such as grocery stores and coffee shops to more specialty items like hair salons, all within walking distance. Walkable communities also provide public transportation, which is becoming more desirable to many home buyers and is increasing demand for housing in these areas. One Web site, walkscore.com, calculates the walkability of a community by locating stores, restaurants, schools, parks, and other attractions that are within walking distance. The scores are based on a 100-point scale with 100 points being a “walker’s paradise.”
• Home buyers who seek a new or nearly-new home should search in areas where the homebuilder is known for honoring warranties and building high-quality homes that are structurally sound. Homes in these areas are more likely to weather well and gain value in the future than homes in areas where the homebuilder is unknown.
• Homes in neighborhoods with sales momentum generally appreciate at a faster pace than areas where sales are flat. Some real estate industry consultants advise clients to pay close attention to the “list to sale” numbers, which reflect the difference between the asking price and the final closing price. Usually, if the gap in list-to-sale numbers is narrow, then the real estate market in that area is improving.
To read the full story, please click here:
http://www.chicagotribune.com/classified/realestate/advice/chi-select-neighborhood_chomes_1oct31,0,5272949.story
Should you buy a home now?
Thursday, August 07, 2008
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
With home prices in California declining by 37.7 percent in June compared with a year ago, some consumers are wondering if now is the right time to purchase a home, or if they should wait for prices to stabilize. Some real estate experts believe that home prices will continue to decline and that buyers should wait, while others recommend that home buyers take factors other than price into consideration, such as the benefits of owning versus renting.
MAKING SENSE OF THE STORY FOR CONSUMERS
· Consumers who are hesitant about purchasing a home today because they fear price depreciation, need to understand that real estate is cyclical and that prices will increase again. Home buyers should view a house as a long-term investment and not be fixated on short-term prices. Some economists believe that consumers should purchase a house if they plan to live in or hold the property for at least seven years. This will allow the market to stabilize and homeowners to possibly profit from their investment, if they decide to sell.
· Although a typical monthly mortgage is higher than a rent payment, home buyers who qualify for a fixed-rate mortgage, such as those backed by the Federal Housing Administration, will have consistent monthly payments, while renters are generally subjected to annual rent increases. Mortgages also can be paid off and the house can be owned free and clear, while renters will consistently have a monthly payment.
· To help home buyers lower the financial risk of homeownership, experts recommend that consumers purchase a home within their means and have enough in savings or other assets to cover the mortgage payment for at least six months if they lose their job.
The Truth about Making Money in Today’s Real Estate Market
We would like to offer a complimentary real estate seminar (a $99 value) as a benefit to the employees at your company.
We would like to share our experience and knowledge to teach people how to make educated decisions about buying, selling and investing in today’s real estate market.
There is no obligation to buy anything. We are not selling products or services. Our mission is to educate and provide guidance with honesty and integrity for people who may be overwhelmed, doubtful or indecisive due to misleading messages in the media about local real estate. For example, did you know there are areas in Los Angeles county that have appreciated over the last year?
As realtors and members of the California Association of Realtors (CAR) and National Association of Realtors (NAR) we will discuss the facts not the hype. Topics will include:
• Last Market Crash
• Best Buying Opportunity in 35 years
• Where are the Deals?
• Why Should You Buy in Today’s Market?
• Why Should You Sell in Today’s Market?
• What You Should Know Before Buying?
• Incentives, Discounts, Promotions
• Ideas to Get a Down Payment
• How Does the Process Work?
Call us now!
Best Hollywood Homes Team & Promenade Realtors
http://www.BestHollywoodHomes.com
Email Igor Korosec
Gayle Barnes
Keller Williams Realty Sunset
SoCal home sales jump in April but still lag year-ago period
Southern California homebuyers stepped off the sidelines in April, snatching up foreclosures and homes priced under $500,000 at a rate that was 22 percent higher than in March but down 19 percent from April 2007 and the lowest level since 1995, according to DataQuick Information Services.
MAKING SENSE OF THE STORY FOR CONSUMERS
The median home price for the six-county region was $385,000, unchanged from March but down 24 percent from an April 2007 peak of $505,000. April marked the first time in eight months that the median price did not decline.
Sales were strongest in areas hit hardest by foreclosures: Riverside County (where sales increased month to month for the first time in two years), Lancaster, Chula Vista, Anaheim, Lake Forest and Victorville experienced the strongest rebounds. Two-thirds of homes sold during the month in Los Angeles, Orange, Ventura, San Bernardino, Riverside and San Diego counties were priced under $500,000. About 38 percent of the homes sold were in foreclosure at some point during the previous year, up only 2 percent from March but sharply higher than the 5 percent reported a year ago. In Riverside County, 53 percent of sales involved troubled properties.
The credit crunch, potential for a recession, and uncertainty over when foreclosures will peak caused DataQuick analysts to remain cautious. Lack of financing for high-value homes continues to be an issue and could forestall a recovery if the trend persists. In April, only 15 percent of Southern California home loans were above $417,000, down sharply from the same period a year ago.
To read the full story, please click here:
http://ap.google.com/article/ALeqM5h_DkmV9N0qyf2vfd5bqwsVnBh0JgD90OUO9G0
REAL ESTATE MARKET CONDITION & L.A. COUNTY LATEST REAL ESTATE STATISTICS
As you may already know the Los Angeles prices of single-family homes, condos, land and, in small amount also multi-family buildings, declined in most cases approximately 20%. Real estate gurus as well as the California Association of Realtors are predicting that prices will decline a maximum of 5 more percent in the next few months. The declining real estate is/was caused by an enormous increase of foreclosures. Most of the homeowners that got into financial difficulties and fell behind with their mortgage payments have already sold or lost their properties. I started observing multiple offers on the remaining short sales, foreclosures and bank owned properties. The mortgage loan limits were increased to almost $730,000, but this is just temporary relief at this point of time. Along with other realtors, I am involved in writing letters to US Senator Dianne Feinstein. You may view her recent response that I received from her at http://www.movingtohollywoodhills.com
For your information I would also like to mention that if a home price declines 10%, it is equal to 0.5-1% mortgage interest increase. Therefore, it is my opinion that if you need/want to buy within the next few months, please start searching now. And if you are intending to sell your current home, I’d encourage you to wait if you can, until the market starts going up again.
Based on several inquiries & offers that I have been dealing with lately I am encouraging all my clients to get pre-approved, get at least the first page of the FICO score from the lender, make sure that you have enough money for down-payment on your bank account, plus a reserve for 3 months of mortgage payments, taxes and insurance. All this is a must in almost 90% of pre-foreclosures and foreclosures. Further on, it is also very helpful if I have on my hands a Buyer-Broker Agreement. If you have misplaced or never received that agreement from me, please contact me and I will re-send it. This agreement helps if I need to negotiate for example with the bank that owns the property, before we make an offer.
FREE & FREE & FREE – updated monthly
Click here for LOS ANGELES COUNTY LATEST REAL ESTATE STATISTICS
Best Hollywood Homes Team in assoc. with CLAW released another complimentary feature for our clients, associates & friends.
SHORT SALE Article & Audio
Weekly Geni.us, audio, Posted by joshfowler – View profile
Philip Tesoriero started out in the real estate business in 1989. His main source of business came from rehabbing REO and distressed properties as an investor and contractor. In 2002 Philip decided it was time to open his own Real Estate Brokerage after years of working as an agent specializing in the sale of HUD and REO properties. The company grew quickly and Philip was the owner/manager of 40 plus agents servicing the Long Island New York market. In late 2006 Philip decided to sell his company and open a new firm that specializes in Default Real estate sales.
Listen in as we discuss:
1. What is a short sale
2. What is the benefit of a home owner doing a Short sale
3. What is The Mortgage Forgiveness Debt Relief Act of 2007 and what does it have to do with short sales?
4. What is the key factor to a successful short sale?
5. How does a bankruptcy affect the short sale process?
6. What is the sellers motivation to complete a short sale?
To contact Phil email him gelip@optonline.net See article »
CA Homes Sales Decrease Review
LOS ANGELES (Feb. 25) – Home sales decreased 29.8 percent in January in California compared with the same period a year ago, while the median price of an existing home fell 21.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
“This most recent decrease in the median price is yet another result of the liquidity crunch, which has choked off sales in recent months for nearly half of California’s housing market,” said C.A.R. President William E. Brown. “Sales do appear to be edging up, but recent declines in the median price have been due to a lack of sales in the over $500,000 range, where funds are extremely scarce and jumbo loan rates are at near-record margins compared to conforming loan rates.”
Closed escrow sales of existing, single-family detached homes in California totaled 313,580 in January at a seasonally adjusted annualized rate, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. Statewide home resale activity decreased 29.8 percent from the 446,820 sales pace recorded in January 2007.
