October 2009
Culver City Market Report – Third Quarter
October 17, 2009 by Jane Peters · Leave a Comment
Based on the Culver City Third Quarter Market Report, the median home prices have fallen 6%.
The number of sold homes in Culver City has dropped 20%.
The properties on the market in any given month where a buyer could have written a first position offer to purchase it at any time during that month. Different from Months Supply of Inventory below. The number has increased 3%.
The number of properties going into contract on any given month shows the sales activity. This has increased 100%.
The Culver City Third Quarter Market Report, shows a drop of 28% in the number of new properties coming on the market in any given month. The shortage of inventory should lead to an increase in home prices.
This measures the speed of the market on a monthly basis. All the Days on the Market are added up and then divided by the number of properties involved to arrive at the figure.
These figures show how long it would take to sell the present inventory based on the present monthly sale rate. The number of properties on sale on the last day of the month is the remaining inventory. This figure is divided by current sales rate for the month as determined by the number of properties going under contract. This shows buyer actitivity. Some calculations take into account the number of closed sales in a month. The figure has decreased 84.0%
Beverly Hills Market Report – Third Quarter ’09
October 13, 2009 by Jane Peters · Leave a Comment
The properties on the market in any given month where a buyer could have written a first position offer to purchase it at any time during that month. Different from Months Supply of Inventory below. The number has increased 3%.
The number of properties going into contract on any given month shows the sales activity. This has increased 108%.
These figures show how long it would take to sell the present inventory based on the present monthly sale rate. The number of properties on sale on the last day of the month is the remaining inventory. This figure is divided by current sales rate for the month as determined by the number of properties going under contract. This shows buyer actitivity. Some calculations take into account the number of closed sales in a month. The figure has decreased 56.2%
This chart reflects the number of new listings coming on the market during the month in question. This figure is down 2%
This indicates the sales velocity for any given month, i.e. how long they will remain on the market until they sell. Properties that went under contact are counted. All the various days on the market are counted and then divided by the number of properties involved to arrive at the average figure. The number of days has increaed 62%. This could be due to overpricing or the difficulty in obtain a mortgage.
Santa Monica Market Report – Third Quarter ’09
October 12, 2009 by Jane Peters · Leave a Comment
The median price of a Santa Monica homes has only dropped 2% over the last year.
The number of home sold has increased by 114% over a year ago.
The number of properties going into escrow has increased by 127%.
The number of properties for sale has remained reasonably steady.
The number of new properties being listed each month has also remained pretty steady.
The total inventory of homes has dropped 66%
Supply has stayed the same as compared to the demand, which has risen 114%
Santa Monica homes are staying on the market 44% longer than a year ago.
Overall, the Santa Monica market remains strong. The decrease in inventory should result in a higher demand, and, consequently, higher prices
French Food
October 24, 2009 by Jane Peters · Leave a Comment
Monsieur Marcel is a fabulous find on 3rd St. Promenade in Santa Monica.
I had the onion soup and bouillabaisse. Probably the best I have ever had.
Monsieur Marcel
They have another location in Farmers Market/The Grove.
The Santa Monica locations is in the middle of the street with outdoor seating only. With lighting, ambiance, and people walking by you get a feeling of sitting on a Paris boulevard.
Now is a Good Time to Buy – How is Your Credit Score?
October 22, 2009 by Jane Peters · Leave a Comment
How is your Credit? Tougher lending laws are now are now leading Fannie Mae to require a minimum of 620 credit score as a qualification for some loans. This includes FHA and VA loans. However, in order to get the best rate, a credit score of 720 is required and verifiable income.
In the past a mortgage broker was able to shop around for the best rates, but the new procedures and the Home Valuation Code of Conduct (HVCC) have made this difficult. Lenders will no longer take a broker-commissioned appraisal, so the Buyer will have to pay for a new appraisal for each lender. This costs time and money. However, for those needed that extra help, then a broker is the best bet.
Despite all this, now is a good time to buy. Interest rates are low, prices are favorable and there is a possibility of an extension of the federal tax credit.
If your credit does not qualify make sure you take steps to raise it. Pay your bills on time and pay off your debt. Also, never close an old credit card and use as small a portion of your available credit that you can.
Lastly a 30-year fixed is the best mortgage to take. You never have to think about it again.
Now is a good time to buy!
Persian Food
October 22, 2009 by Jane Peters · Leave a Comment
Shahrzad Restaurant
1422 Westwood Blvd.
Los Angeles, CA 90024
Phone: 310-474-1410 begin_of_the_skype_highlighting 310-474-1410 end_of_the_skype_highlighting
The absolutely best rack of lamb you have ever had. Consistently moist and sweet.
Medium priced
Italian Food
October 22, 2009 by Jane Peters · Leave a Comment
A neighborhood bistro atmosphere. Great service, great food. Deli appetizers – try the eggplant. Delish.
Indian Food
October 22, 2009 by Jane Peters · Leave a Comment
Among the best Indian food I have eaten, and I am from the U.K. where the best Indian food outside India is found. It is on the pricey side, but worth it.
There is a story behind this name which you can read on their website.
The best, consistently good Tandoori chicken I have had.
They offer two for one discount coupons which you can use every time you go. It makes this an excellent choice for both the food and the pocket book.
Chinese Food
October 22, 2009 by Jane Peters · Leave a Comment
My favorite Los Angeles Chinese restaurant is Hop Li.
They have four locations, but the one I frequent is their “Westwood” location.
Consistently good food, always packed – an good sign – and excellent service.
Hop Woo’s food is among the best Chinese I have had. Moderately priced.
It is in a strip mall where parking is a problem and the waiters a surly to put it mildly. But if you can overlook that the food is worth it.
Jin Jiang is another excellent restaurant in West Los Angeles. Waiters are friendly, the ambiance is calming and the food is great.
Venice California Housing Market Report
October 19, 2009 by Jane Peters · Leave a Comment
Venice California homes sold down 20%
Properties going under contract has increased 40%
Properties available for purchase on any given month is down 15%
New properties coming on the market is down 23%
The number of days on the market is up 27%%
And the months supply of inventory is down 46%
Buying a Home in Los Angeles – The Most Important First Step
October 19, 2009 by Jane Peters · Leave a Comment
Buying a home in Los Angeles can be a daunting prospect.
You start to look on line at areas you would like to live and estimate the amount of home you can afford.
Well, this is not the way to start looking for a home. You must get pre-approved by a lender! No ifs ands or buts.
Many first-time buyers don’t realize the upfront costs in involved in buying a home – loan fees, insurance, escrow fees, etc. and those can make a huge difference in deciding the price range of your home search.
There is nothing more disappointing to a buyer than looking at houses that they cannot afford and then having to “settle” for the one that they can.
A good realtor is going to insist that you are pre-approved by a lender before they even start the search process. And, no offer would be accepted by a Listing Agent that is not accompanied by a pre-approval letter.
Did I mention that buying a home in Los Angeles can be a daunting prospect? In a city with many areas still getting multiple offers and homes going over asking price you are in competition. However, being ready to go when you find the right house, with the lender confirming your ability to buy that house, is going to improve your chances of having your offer accepted.
Los Angeles Market Report – Third Quarter ’09
October 11, 2009 by Jane Peters · Leave a Comment
The following represents the Los Angeles housing market trend for single-family homes over the last 13 months.
Overall the figures show the market turning around as follows:
The median price has decreased by 12% from $608,000 in ’08 to $533,000 in ’09.
The number of homes sold in Los Angeles has increased 12%, from 356 to 410.
The number of properties on the market has decreased by 42%, from 4,500 to 2,632. This is good news as the prices should start to rise due to the shortage of inventory.
The average days on the market has decreased by 2% from 79 to 77. This shows a balanced market. Anything under 30 days is fast and over 90 days is a slow market.
Other statistics show:
The number of new properties coming on the market each month has decreased by 33% from 825 to 551. Also an indication that prices could start to rise due to the inventory shortage.
Supply and Demand per month shows a significant downward trend in inventory, 42%, from 4,500 to 2,632 and a 15% upward trend in demand, from 356 to 410 in terms of homes sold.
Months supply of inventory is a great indicator that the market is slowly turning around. The time it takes to sell the existing inventory shows whether this is a Buyer’s Market, a Sellers’ Market or a Balanced Market. Anything at or below 3 months is a Seller’s Market since there is little inventory and prices get bid up due to competition. At or above 6 months is a Buyer’s Market due to the choice of homes, and therefore prices drop. Anything in between is a Balanced Market. The formula for Months Supply is the number of properties on the market at the end of each month divided by the number that had accepted offers that month.
The Months supply of inventory has decreased 66%, from 3,721 to 1,757. Another sign that the market is turning around.
How Should I Use My Home Equity For My Retirement?
October 10, 2009 by Jane Peters · Leave a Comment
There is plenty of information and advice about when to retire and take social security, but very little about managing your home equity with a view to retirement.
Equity in your home is a big part of your overall portfolio. If you are married, this is approximately 70% of your non-liquid assets per a 2009 Society of Actuaries (SOA) Report. The report also states the median value of financial assets is less than 1.5% of the median middle class income, which is $75,000, and three times the median upper income households which is around $132,000.
The report did exclude the value of Social Security and pension benefits which would reduce the home equity percentage as a part of total assets. The report is also based on a 2004 Study of Consumer Finances, which of course is far removed from today’s figures.
However, the figures are relevant because home equity and how it is financed is a large part of retirement planning.
The author of the SOA report, Anna Rappaport, states that housing costs account for approximately 35% of a homeowner’s budget before they retire which is high.
As high as home equity is, many Americans don’t take this into consideration in the retirement planning, and the usual methods people to accomplish their goals, don’t factor this into the equation.
So, what should be done with the 70% of assets tied up in your home?
There is no real agreement on this and there are so many variables to consider, but a template could be the following:
- Pay off your mortgage and reduce expenses
- Downsize, and take the cash for investment
- Sell your home, rent and invest the cash
- Take out a reverse mortgage which is going to give you an income
- Rent out rooms
- If you can get enough rent you could rent the house and find a less expensive rental for yourself, keeping the extra cash for investment
Some of these options may work and some, like reverse mortgages, can be risky.
The home equity model is complicated and work needs to be done to fine-tune it to work for most Americans.
2010 Housing Forecast
October 7, 2009 by Jane Peters · 2 Comments
According the California Association of Realtors (CAR), home prices will increase in 2010 as the low-end market and foreclosures are bought up. This will also leave a shortage of homes as the inventory dries up.
The median California price will increase by 3.3% to $280,000 with sales decreasing by 2.3% to around $527,500, the latter occurring unless the first-time home buyers’ tax credit is extended.
In the low-end to moderate market prices have decreased about 50% in some places, while in the high-end market prices have not changed much but there are less buyers.
The forecast shows sales driven by distressed properties in the low-end market causing a shortage in the number of available homes and a slight price increase.
Higher priced homes will be difficult to sell because of the drop in prices and the difficulty to obtain financing.
Ensuring a Smooth Buying and Selling Process – No Lawsuits!
October 4, 2009 by Jane Peters · Leave a Comment
When selling a home disclose, disclose, disclose.
The most lawsuits arising after close of escrow would seem to be directed at agents who do not disclose known issues affecting the condition of the property in question.
Water intrusion leading to mold are high on the list, followed by sewage systems, whether septic tanks or city sewer lines. Also misstated square footage can lead to legal problems.
Foreclosure sales, i.e. bank-owned properties, are frequently involved in these kinds of suits, as the property often has not been maintained. Unfortunately, neither the bank nor the agent representing them would necessarily have knowledge of such problems. A Buyer needs to be extra diligent in these cases.
What is known, possibly from a previous buyer’s inspection needs to be disclosed. What an agent may suspect through a visual inspection, needs to be disclosed, in this case as a suspicion, for further investigation.
And, above all, the buyer must do his or her own due diligence through the Buyer’s Inspection and subsequent inspections recommended by the Inspector. If there is any doubt inspect, inspect, inspect.
With regards to square footage, In Los Angeles as agents we rely on the information received from Public Records, and make no claim to its accuracy. If exact square footage is an issue for a Buyer then maybe they should hire and Appraiser.
If you find the section about area schools blank or filled with “Check with City”, this is because the agent cannot be responsible should the house in question fall outside a particular school district.
When representing the Seller in a multiple-offer transaction, care needs to be taken to treat each offer equally. Present them, give an educated opinion of each offer, such as credit-worthiness, reasonableness of the offer, etc. and let the Seller decide. Do not play offers against each other in order to increase Buyer competition. And absolutely do not let a Buyer’s agent know the terms of a competing offer.
Dual Agency, representing both the Seller and a Buyer, needs to be handled with special care. The agent’s fiduciary duty is to both parties and he or she must remain neutral. Some agencies prohibit dual agency.
RESPA, the Real Estate Settlement Procedures Act, is there to protect Borrowers from unfair loan settlement fees. Agents should be careful when recommending lenders as this is an area where they can be accused of taking referral fees and thus having a financial interest in the transaction.
As agents we owe a fiduciary duty (a relationship of confidence or trust) to our clients, and every effort should be made to maintain that trust.
