Santa Monica Property Blog

LOS ANGELES REAL ESTATE SNAPSHOT – SEPTEMBER 2010

By Jodi Summers

So, do you want the good news or the band news when it comes to the local residential housing market? Start with the bad, the end to the $8,000 federal tax credit incentive for buying home has ended, and hopefully, anyone who wanted in on the tax discounts got a chance to take advantage of them. That’s why when the credit expired; home sales in Southern California (houses, townhomes and condominiums) fell by 21.4% compared with the previous year. The good news? The median sales price for a home in Los Angeles County increased by +5.6%.

“The fallout from the first-time home-buyers credit continues, but in a perverse way, this is a good thing,” Dan Greenhaus, chief economic strategist for Miller Tabak + Co., notes. “Investors are getting their first ‘organic’ look at the housing market in nearly one year.”

People are buying in the good areas. SoCal zip codes in the top one-third of the housing market (obviously Santa Monica falls into that group); accounted for 30.8% of existing single-family house sales last month, up from 30.4% in June and 27.7% a year ago. Over the last decade those higher-end areas have contributed a monthly average of 33.3% of regional sales. Their contribution to overall sales hit a low of 21.0% in January 2009.

High-end sales would be stronger if adjustable-rate mortgages (ARMs) and “jumbo” loans were easier to obtain. Adjustable rate mortgages have become much more difficult to obtain the credit crunch hit three years ago, and since fixed rate mortgages have come down so impressively.

Last month ARMs represented 6.1% of all purchase loans, down from 6.7% in June but up from 3.4% in July 2009. Over the past decade, a monthly average of nearly 40% of all home purchase loans have been ARMs.

Overall, a total of 18,946 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in July. That was down 20.6% from 23,871 in June, and down 21.4% from 24,104 for July 2009, according to MDA DataQuick of San Diego.

“It appears some of the sales that normally would have occurred in July were instead tugged into June or even May as buyers tried to take advantage of the expiring tax credits. Some of last month’s underlying technical numbers were largely flat, indicating that the market is treading water,” said John Walsh, MDA DataQuick president.

People are all in a panic because the 21.4% sales drop for residential real estate reeks of foreboding. Yes, this was the steepest year-over-year decline for Southland sales since March 2008, when sales fell 41.4%, but, let’s put it in perspective, the market lost momentum after the federal tax credit incentive expired and we are being pelted with ominous news about an unsteady economic recovery, if you were buying a home and haven’t yet, what’s the hurry? Join the legions of prospective buyers and wait-and-see, while prices continue their upward cycle.

“We do expect some sideways buying and selling to kick in, especially among homeowners who have owned for more than seven years and didn’t take out equity during the frenzy,” concludes Walsh.” You may have to ‘discount’ your self-perceived home value, but if the person you’re buying from has to do the same thing, it doesn’t matter. And you may get a spectacularly low mortgage rate.”

We’re working our way into an election, things will get better, it’s on the political agenda, and that’s why those are the sidelines have decided to wait and see.

We’re here to help you with industrial properties. Please contact Jodi Summers - jodi@jodisummers.com or 310.392.1211, and let us move forward together.

**

http://www.laedc.org/eedge/index.html#3

http://www.dqnews.com/Articles/2010/News/California/Southern-CA/RRSCA100817.aspx

http://latimesblogs.latimes.com/money_co/2010/08/sales-.html

http://latimesblogs.latimes.com/.a/6a00d8341c630a53ef0133f350c369970b-pi

http://allrmc.com/images/los_angeles.jpg

http://www.unmarriedamerica.org/members/news/2004/March-Images/taxes.jpg

http://camhf.com/mobile-home-loan-blog/wp-content/uploads/2009/07/879a2e7ee07086f615c2a4651dd6010f-298×300.jpg

http://www.carandhomeinsurance.co.za/articleimages/HomeLoanDeals_HomeLoans_HomeLoanCriteria.jpg

http://2.bp.blogspot.com/_1p20WdeXKKs/SxdENF40fNI/AAAAAAAAGdo/BAJA1Xw7ang/s200/TaxCredit.jpg

http://www.apartmenttherapy.com/uimages/la/atla-082308-lat03.jpg

http://www.flickr.com/photos/jodisummers/4817707380/in/set-72157624556255322/

http://www.socalmultiunitrealestateblog.com/?p=715

GLOBAL DEMOGRAPHICS ARE SHAPING REAL ESTATE TRENDS

GLOBAL DEMOGRAPHICS ARE SHAPING REAL ESTATE TRENDS

Edited by Jodi Summers

Global Demographics: Shaping Real Estate’s Future offers recent research from the Urban Land Institute about the effect of global demographic change on real estate.

“Over the next 20 years, demographic megatrends — and their variations by continent — present the real estate industry with tremendous opportunity to not only grow, but to better serve the people real estate is designed for,” said David Jacobstein, senior advisor to co-sponsor Deloitte LLP ’s Real Estate practice. “Mature economies — especially growing ones — offer attractive investment opportunities, but emerging markets require vast quantities of infrastructure, as well as residential, retail, office, and hotel properties to support their burgeoning populations.”

Findings from the report include:

Aging

The aging of the world’s population is arguably the single most dramatic demographic trend today, with three key trends emerging:

v In 2006, almost 500 million people worldwide were 65 and older.

v By 2030, individuals 65 and older are projected to increase to 1 billion — equaling one out of every eight people on earth.

v The most rapid increases in the 65-and-older population are occurring in developing countries, which will see a jump of 140 percent by 2030.

Real estate implications

v Retirement housing is the primary real estate beneficiary of global aging, with the U.S. senior housing industry set to benefit from the opportunity to produce new products.

v Rapid consolidation of senior housing operators will result in more professional and cost-effective management.

v Investor interest will continue to grow because economic cycles have little effect on dementia and nursing care facilities.

v There is increased demand for affordable senior housing and senior housing options in ethnic communities.

Urbanization

As of 2007, 3.3 billion people — half of the world’s population — live in urban areas. With that number expected to increase to 60 percent by 2030, five key trends are emerging:

v One billion people live in slums, with 90 percent of this population occurring in developing countries.

v At least 133 million city dwellers in the developing world lack durable housing.

v Twenty percent of urban dwellers in emerging nations are overcrowded, with more than three people per bedroom.

v Only two-thirds of the world’s urban population has access to tap water, with only 46 percent having access in their homes.

v More than 25 percent of the world’s urban population lacks adequate sanitation.

Real estate implications of these urbanization trends include:

v Investing in infrastructure — whether new or established — is essential to the viability of long-term commercial real estate projects. Privatization of infrastructure through public/private partnerships with investment funds are becoming increasingly important, with notable examples occurring in the United States, Spain and France.

v Better land use controls should be implemented to prevent high-density, informal communities from developing and reduce outward urban sprawl because both trends present difficulties to residents in terms of infrastructure, safety and lifestyle.

v There is increased demand for housing and retail as a result of a growing workforce.

v In stagnant or shrinking populations, new construction must be viewed as replacement properties — even if that entails older building demolition to maintain vacancy rates — as has occurred in continental Europe.

v Emerging markets can leap from traditional, organic models to contemporary multi-use projects and residential communities if ground level infrastructure is established.

v The lack of mortgage availability in the emerging market is the greatest limitation on new development.

http://www.reuters.com/article/pressRelease/idUS187513+12-Jun-2008+BW2008061

http://www.topnews.in/health/regions/united-kingdom?page=26

http://totallycebu.com/aging-lecture

http://www.flickr.com/photos/lwr/165513789/

STUDIES SHOW GREENING BUILDINGS IS GOOD FOR THE BOTTOM LINE

by Jodi Summers

It’s been studied and documented, greening your office building improves your bottom line. Let us share a round of facts with you.

“Increasing energy efficiency in our buildings can increase occupancy rates, leasing prices and sale prices — all in a highly-competitive environment,” confirms a new report from Ceres and Mercer titled “Energy Efficiency and Real Estate: Opportunities for Investors”

The report also concluded that real estate managers who don’t put energy efficiency measures into their properties risk lower profits in the future.

And having said that, if you’re adhering to our statewide CALGREEN Code, you’re already ahead of the game. The California Building Standards Commission is setting minimum green-building criterion that may, at the discretion of any local government entity, be applied.

Buildings currently account for 39 percent of the energy used in the United States, 71 percent of electricity use, and 39 percent of C02 emissions. A recent report by McKinsey & Company notes that the U.S. economy has the potential to reduce annual non-transportation energy consumption by roughly 23 percent by 2020, eliminating more than $1.2 trillion in waste.

Republicans and Democrats actually agree that green real estate is important. In June 2009, legislation was approved by the House of Representatives to control climate change by limiting heat- trapping pollution and creating a trading system for pollution permits. The bill calls for cutting greenhouse-gas emissions from 2005 levels by 17 percent by 2020, and 83 percent by mid- century.

So everyone thinks this is a great idea, but how does this affect your bottom line? A 2009 Maastricht University study that showed rental premiums of 3.5 percent on “green” U.S. office properties, while Energy Star buildings had 6 percent higher occupancy rates and sold for a premium of 16-17 percent per square foot.

Here are some of the noteworthy conclusions from these reports about investing in energy efficient real estate:

- Energy efficient buildings offer a measurable financial benefit over non-green buildings, in the form of higher rent, occupancy, valuation and lower operating costs.

- No- or low-cost energy efficiency improvements can have quick and dramatic impacts on property operating costs.

- Poorly performing buildings represent an opportunity for a significant investment gain when it comes to energy efficiency.

- Additional improvements require planning, partnerships and initial investments, but can also decrease operating expenses and raise resale and leasing value.

- Investment managers and products that consider energy efficiency and green building practices are increasingly available to investors.

- Barriers to implementing energy efficiency improvements are eroding as demand grows, research on the benefits continues, and supporting products and services improve feasibility and cost-effectiveness.

Essentially, greening your building is the best thing for your bottom line. In confirmation, we’ll site a report from KPMG, which finds that energy consumption in buildings can be cut by 30 to 50 percent and still produce a positive return on investments.

**

http://www.environmentalleader.com/2009/12/22/energy-efficiency-and-real-estate-profits-go-hand-in-hand/

http://www.socalofficerealestateblog.com/?p=953

http://www.socalofficerealestateblog.com/?p=965

http://www.tiaa-cref.org/public/about/index.html

http://www.socalindustrialrealestateblog.com/?p=325

http://abeldesigngroup.files.wordpress.com/2009/07/green-building.jpg

http://www.buildandrebuild.com/wp-content/uploads/2009/06/stat-green-building.jpg

http://allgreen.com/site/images/stories/office_windows_trees_reflected.jpg

http://www.metaefficient.com/images/fukuoka_green_roof.jpg

LOS ANGELES COUNTY PROFILE

Edited by Jodi Summers

For all of you factoid junkies, here is some really interesting information about Los Angeles County compiled by the Los Angeles Economic Development Corporation-

• Los Angeles County (Los Angeles-Long Beach-Glendale Metro Division) covers 4,084 square miles, and had a January 1, 2008 population of 10,363,800 residents; an increase of 844,500 persons since 2000. The County’s population would make it the eighth largest state in the nation, just behind Ohio and ahead of Michigan. (California Department of Finance)

• A quick demographic profile of Los Angeles County indicates that: 47.3% of the population is Hispanic, 28.8% white non-Hispanic, 14.4% Asian-Pacific Islander, and 9.6% black. About 75% of the population has a high school diploma or more, while 28% has a bachelor’s degree or more. (American Community Survey 2007)

• Los Angeles County has a diverse economic base (based on the concept of “industry clusters”). Measured by 2007 employment, the leading industries are: 1.) tourism and hospitality with 456,000 workers; 2.) professional and business services with 288,000 workers; 3.) direct international trade with 281,000 workers; 4.) entertainment (motion picture/TV production) with 244,000 workers; and 5.) wholesale trade and logistics with 199,000 workers.

• The “new economy” of Los Angeles County is largely technology driven. This cluster includes bio-medical, digital information technology, and environmental technology, all of which build on the vibrant technological research capabilities of the County. Another key driver is creativity. There is a growing fusion between technology and creativity such as in video games and film production.

• Los Angeles is the largest manufacturing center in the U.S., employing 376,500 workers in 2007. The most important sectors are: apparel with 56,700 workers; fabricated metals with 49,100 workers; food products with 43,000 workers; aerospace products & parts with 38,100 workers; and search, detection & navigation products with 26,987 workers.

• International trade is a major driver of the area’s economy. The Los Angeles Customs District— which includes the ports of Long Beach and Los Angeles, Port Hueneme, and Los Angeles International Airport—is the nation’s largest. The value of two-way trade passing through Los Angeles totaled $357.3 billion in 2008, compared with $353.4 billion for second-place New York. Major investments are under way to expand the ports, LAX airport and related transportation facilities in Los Angeles County.

• Higher and specialized education is a strength of Los Angeles County, with 112 public and private colleges and universities. These range from UCLA, USC, California Institute of Technology, and the Claremont Colleges to top-rated specialized institutions, like the California Institute for the Arts, the Art Center College of Design, the Fashion Institute of Design and Merchandising, and the Otis College of Art. Medical education is also a strong point; Los Angeles has two each of medical schools, dental schools, and eye institutes, plus specialized research and treatment facilities like the City of Hope. The County’s community colleges offer many innovative programs, including culinary arts, fashion design, multimedia, and computer assisted design and manufacturing.

**

http://www.laedc.org/reports/LA%20County%20Profile.pdf

http://www.visitorguide2000.com/lacounty/images/losangeles.gif

http://ewingsir.com/files/2009/10/los-angeles-county-seal.gif

http://www.chooselacounty.com/images/doingbusiness/la-county-map.jpg

http://www.losangelestravelguide365.com/files/Los-Angeles-County-Assessor_274759927.jpg

http://rlv.zcache.com/los_angeles_county_tshirt-p235643210452817779q9bf_400.jpg

http://www.seiu721.org/regions/los_angeles_county/LA%20Times-LA%20County%20Rally-9-29-09.jpg

http://www.blogcdn.com/green.autoblog.com/media/2009/06/mini-e-lasd-post.jpg

SANTA MONICA REAL ESTATE SNAPSHOT – AUGUST 2010

By Jodi Summers

First the big picture, then Santa Monica. The Los Angeles Economic Development Corporation reports that home sales in Southern California (houses, townhomes and condominiums) rose in June to 23,871 units (new and resale homes), edging up by +2.6% compared to June of 2009. On a month-over basis, June sales rose by +7.2% and were the strongest since July 2009 when 24,104 homes were sold.

Analyzing two years of supply and demand in Santa Monica, Clarus Market Metrics calculates that comparing July 2008 vs. July 2010, the number of for sale properties is up 7%, while the number of sold properties is up 19%.

In June, the median price in Los Angeles County increased by +4.7% to $335,000 and sales ticked up by +2.8%.

In Santa Monica, contrasting July 2008 vs. July 2010, the median price of for sale properties is down 10% to $ 899,000 and the median price of sold properties is up 5% to $942,000.

Southern California’s housing market is still troubled, but compared with last year, there has been a great deal of improvement. Prices and sales have been trending up the last several months, but much of that may be attributable to investors and government support. Investors accounted for 19.7% of the homes sold in June.

Locally, the strengthening market means the months’ supply of inventory is down to 4.6 months from 5 months two years ago. (Experts say 3.7 months is parity.)

“It is clear that investors are back in the market,” notes Robert Leveen, a senior vice president of Lee & Associates investment services group. “There is significant activity around any REO property. Buyers assume that the lender is motivated to sell at any price. There is sufficient demand in the marketplace and although there are discounts,

certain product will trade with multiple offers, and the discount is not as steep as many buyers would want.”

More money was spent buying homes in June than in the past two years. Still, mortgage financing (or the lack thereof) remains a pressing issue, but seems to be relaxing in Santa Monica. Brad Blackwell, a national mortgage sales manager at Wells Fargo Home Mortgage notes that, to write a jumbo loan in the coastal areas of Los Angeles and Orange counties, the lender is currently asking for a 20% down payment or that percentage of equity, down from 25% last year.

According to author E. Scott Reckard in ‘The jumbo mortgage market is beginning to thaw,’ “The reason: Wells believes high-end home prices are stabilizing in those coastal counties. But the bank still requires higher down payments in the Inland Empire and other battered housing markets such as Florida, Nevada and Arizona, where prices for jumbo-size homes don’t appear to be stabilizing”

The continued slowdown in the real estate market has been attributed to the fact that jumbo loans remain much harder to get than before the recession. Currently, borrowers typically must have a credit score of at least 700, compared with boom-era minimums in the 600s.

Another sign of the easing credit market is the increasing availability of “stated income” loans – but unlike the phat times, borrowers are asking for at least a 40% down payment.

We’re here to help you with residential properties. Please contact Jodi Summers -jodi@jodisummers.com or 310.392.1211 and let us move forward together.

**

http://www.laedc.org/eedge/index.html#5

http://www.globest.com/news/1704_1704/losangeles/300864-1.html?ET=globest:e22790:277110a:&st=email

http://southorangecounty.wordpress.com/2010/02/25/the-jumbo-mortgage-market-is-beginning-to-thaw/

http://www.santamonicapropertyblog.com/?p=2127

https://www.terradatum.com/

http://www.elephantcountryweb.com/circusellies/barnum1.jpeg

http://www.brownstoner.com/brownstoner/archives/mortgage-1008-2.jpg

SANTA MONICA REAL ESTATE SNAPSHOT – JULY 2010

by Jodi Summers

Locally, our real estate news is positive. UCLA Anderson senior economist Jerry Nickelsburg, described California as, “…A divided state, as coastal California recovers while inland California, devastated by the collapse of the real estate market, continues to languish.”

We are lucky to be on the coast, as our market in Santa Monica is beginning to rise again. Comparing Santa Monica single family residence sales from Jun-08 vs. Jun-10 the number of sold properties by month is up 23%.

And what’s even more interesting, is that the price seems to be rising more quickly than sellers are realizing. Contrasting Median For Sale vs. Median Sold from Jun-08 vs. Jun-10, you’ll note that the median price of for sale properties is up 1% BUT the median price of sold properties is up 5%.

Our single family residence statistics confirm the midyear UCLA Anderson Forecast which notes that the Los Angeles regional economy will likely recover faster than the rest of the state, even though the economic recovery in California is going to climb slower than the rest of the country this year. Like the slow rise is sale prices, we are seeing a slow decline in unemployment. In California, state unemployment dropped from 12.5% in April to 12.4% in May.

Forecast director Edward Leamer, in a report titled “A Homeless Recovery,” offers these optimistic signs to show our economy is coming back, “If the next year is going to bring exceptional growth, consumers will need to express their optimism in the way that really counts - buying homes and cars…”

Measuring Jun-08 vs. Jun-10, the number of homes in Santa Monica under contract properties by month is up 22%.

We’re here to help you with residential properties. Please contact Jodi Summers – jodi@jodisummers.com or 310.392.1211 for details.

**

http://www.globest.com/news/1684_1684/losangeles/300380-1.html?ET=globest:e22415:277110a:&st=email

http://www.costar.com/News/Article.aspx?id=B4DDC752B7245C006B76C18CE64493DB&ref=100&iid=188&cid=383F14EEE265B182474DA2442BACBBBF

http://www.edd.ca.gov/About_EDD/pdf/urate201006.pdf

https://www.terradatum.com/agentmetricsonline/property_type_selection.td

ALTERNATIVE ENERGY POLL – SOLAR RULES

Edited by Jodi Summers

An overwhelming majority -92% of Americans polled - Support Solar Energy Development, according to the 2009 Schott Solar Barometer. The Schott Solar Barometer is a national survey conducted by independent polling firm Kelton Research.

The overwhelming support for solar power is consistent across political party affiliation with 89 percent of Republicans, 94 percent of Democrats and 93 percent of Independents agreeing that it is important for the U.S. to develop and use solar power.

Furthermore, close to eight in 10 (77%) Americans feel that the development of solar power, and other renewable energy sources, should be a major priority of the federal government, including the financial support needed. This sentiment also remains the same since June 2008 (77%).

If only given the opportunity to support one source of alternative energy, 43 percent of Americans would opt for solar over other sources such as wind (17%), natural gas (12%) and nuclear (10%).

Almost half of all Americans (49%) say they’re currently pondering solar power options for their home or business – and another three percent already have solar power. Among those who would like to take advantage of solar power at home or at work, seven in 10 (70%) envision they would make the change within the next five years.

The general consensus is that many Americans feel they lack information – fewer than one in five (12%) - can claim that they’re extremely informed about the subject of solar power in general. What’s more, almost three in four (74%) Americans admit they wish they knew more about solar power options for their home or business.

http://www.cleanedge.com/news/story.php?nID=6455

http://www.resourceactionprograms.org/blog/index.php/tag/southern-california/

http://saferenvironment.wordpress.com/2009/02/02/solar-power-%E2%80%93-sustainable-green-energy-to-protect-our-economy-and-environment/

http://www.geni.org/globalenergy/library/articles-renewable-energy-transmission/solar.shtml

http://www.sunandclimate.com/images/solar-power-dallas.jpg

http://www.generatormart.com/200806092224444674.shtml

http://earth911.com/blog/2007/10/15/pros-and-cons-of-solar-power/

SANTA MONICA PROPERTY SNAPSHOT – MAY 2010

By Jodi Summers

As the new homebuyer’s tax credit era draws to an end, it may go down in history as a concept that revived the residential housing market. Lawrence Yun, chief economist for the group, said the federal tax credit that was to expire at the end of this month had been a “resounding success.”

To keep the momentum rolling, California is now offering a statewide credit, for as much as $10,000 for first-time buyers and those purchasing newly built homes, still a weak point in the market. But for the most part, the downward spiral of 2008-2009 has ended, and now, in the L.A. area, home sales and prices are in a slow rise up from the bottom. Around Southern California, DataQuick news reports that, “The market is still tilted toward low-cost distress sales, but not by as much as previously.”

In Santa Monica, comparing prices over the past two years, the median sold price is up 12%, with the current average selling price $ 910,000.

“I’m fairly sanguine, frankly,” said Michael D. Larson, a housing and interest-rate analyst with Weiss Research. “While the credit expires April 30, more forces are at work here. Home prices are now reasonable in many parts of the country, and financing costs remain low.”

“It’s a reflection of just how grim things got, that we’ve now had almost two years of sales gains and we’re still 18% below the sales average. The market won’t rebalance until mortgage lending patterns normalize, and that’s just not happening yet. Some of the best deals out there right now are happening when the buyer comes in with cash,” said John Walsh, MDA DataQuick president.

Locally, for the past two years, the number of for sale properties is up 10% and the number of sold properties has not changed.

Last month sales of homes priced at $500,000 or more made up 19.4% of all Southland transactions, compared with 18.5% in February and 14.9% in March 2009. Over the past five years, $500,000-plus deals averaged 35% of monthly sales, while over the past 10 years they averaged 26% of all transactions…and that would be why the average months supply of inventory in Santa Monica is down -2.7% to just over four months – 3.7 months is parity in the marketplace.

Absentee buyers – mostly investors and some second-home purchasers – bought 21.3% of the homes sold in March. Buyers who appeared to have paid all cash – meaning there was no indication that a corresponding purchase loan was recorded – accounted for 27.1% of March sales. In February it was a revised 30.0% – an all-time high. The 22-year monthly average for Southland homes purchased with cash is 13.8%.

**

http://www.dqnews.com/Articles/2010/News/California/Southern-CA/RRSCA100413.aspx

http://www.ktla.com/news/landing/ktla-socal-home-sales,0,849872.story

https://www.terradatum.com/agentmetricsonline/agentmetrics_online.td

http://www.latimes.com/business/la-fi-home-sales-20100428,0,7766448.story

http://latimesblogs.latimes.com/money_co/2010/04/us-sales-of-previously-owned-homes-rise-68-in-march.html

https://www.terradatum.com/agentmetricsonline/agentmetrics_online.td?__m_sid=121

SANTA MONICA REAL ESTATE SNAPSHOT – APRIL 2010

By Jodi Summers

The stimulus package must be working. Southern California home sales are up for the 20th month in a row as buyers continued to snap up bargain properties. Locally in Santa Monica, comparing March 2008 to March 2010, the median price of for sale properties is down 10% and the median price of sold properties is down 31%.

The sales distribution is still slanted toward lower-cost distressed homes, although not as steeply as most of last year.

“It’s possible the stars won’t line up this way again for many years. With prices and mortgage interest rates this low, the cost of ownership is about as low as we’ve seen it in decades,” observed John Walsh, MDA DataQuick president.

Savvy buyers have been taking advantage of the current conditions. Locally the number ofis up 143% from two years ago…

While the number of sold properties is up 38%, according to Clarus Market Metrics.

The median price paid for a Southland home was $275,000 last month, up 1.3% from $271,500 in January, and up 10.0% from $250,000 for February 2009. In Santa Monica, the sale price of a single family residence averaged $795,000 a drop of -8.36% from a year ago, when the average home price was $867,500. DQ News reports that prices bottomed out in April 2009.

“The market is less lopsided, but before a real rebalancing occurs adjustable-rate and jumbo mortgages need to come back. Not to where they were in 2007, but back to where they were a few years before that,” Walsh said.

While 44.8% of all Southland purchase mortgages since 2000 have been adjustable-rate (ARMs), it was 4.0% last month, down from 4.3% in January and up from 2.1% in February last year. Foreclosure resales accounted for 42.3% of the resale market last month, up from 42.1% in January, and down from 56.7% a year ago, which was the all-time high. That promised next wave of distressed properties has yet to appear, thanks, in part to the government’s efforts to divert foreclosures.

Government-insured FHA loans, a popular choice among first-time buyers, accounted for 38.5% of all home purchase loans in February. Investors bought 18.9% of the homes sold in February. All-cash buyers accounted for 29.3% of February sales.

**

https://www.terradatum.com/agentmetricsonline/agentmetrics_online.td?__m_sid=121

http://pro.themls.com

http://www.socalmultiunitrealestateblog.com/wp-content/newuploads/2010/01/image004.jpg

http://latimesblogs.latimes.com/money_co/2010/04/mortgage-rates-federal-reserve-mbs-purchases.html

http://www.dqnews.com/Articles/2010/News/California/Southern-CA/RRSCA100316.aspx

http://www.latimes.com/classified/realestate/sns-realestate-home-affordability,0,3554499.story

http://www.dqnews.com/Charts/Monthly-Charts/CA-City-Charts/ZIPCAR.aspx

WE WIN! LOS ANGELES IS THE MOST OVERPRICED CITY IN THE UNITED STATES

By Jodi Summers

Los Angeles likes being on top…though we’d rather be famous than infamous. But today, we’re infamous, as Forbes sites L.A. as the most overpriced housing market in the U.S. Forbes then ranked these metros using four measures: average salary for workers with a bachelor’s degree or higher, with data from PayScale.com; annual unemployment statistics from the Bureau of Labor Statistics; cost of living, according to Moody’s Economy.com; and the Housing Opportunity Index from the National Association of Homebuilders and Wells Fargo, which measures the number of homes sold in a given area that would be affordable to a family earning the local median income, based on standard mortgage underwriting criteria.

Here’s the top 20 list so you can chuckle and guffaw….

No. 1: Los Angeles, Calif.

(Los Angeles-Long Beach-Glendale, Calif.)

Cost of Living: 47 of 50

Housing Opportunity: 47 of 50

Unemployment Rate: 47 of 50

Average Salary: 15 of 50

~~

No. 2: Chicago, Ill.

(Chicago-Naperville-Joliet, Ill.)

Cost of Living: 44 of 50

Housing Opportunity: 36 of 50

Unemployment Rate: 43 of 50

Average Salary: 23 of 50

~~

No. 3: Miami, Fla.

(Miami-Miami Beach-Kendall, Fla.)

Cost of Living: 26 of 50

Housing Opportunity: 46 of 50

Unemployment Rate: 39 of 50

Average Salary: 31 of 50

~~

No. 4: New York

(New York-White Plains-Wayne, N.Y./N.J.)

Cost of Living: 47 of 50

Housing Opportunity: 50 of 50

Unemployment Rate: 37 of 50

Average Salary: 6 of 50

~~

No. 5: Providence, R.I.

(Providence-New Bedford-Fall River, R.I.)

Cost of Living: 26 of 50

Housing Opportunity: 28 of 50

Unemployment Rate: 48 of 50

Average Salary: 37 of 50

~~

No. 6: Riverside, Calif.

(Riverside-San Bernardino-Ontario, Calif.)

Cost of Living: 23 of 50

Housing Opportunity: 34 of 50

Unemployment Rate: 49 of 50

Average Salary: 26 of 50

~~

No. 7: Long Island, N.Y.

(Nassau-Suffolk, N.Y.)

Cost of Living: 40 of 50

Housing Opportunity: 48 of 50

Unemployment Rate: 17 of 50

Average Salary: 24 of 50

~~

No. 8: Cleveland, Ohio

(Cleveland-Elyria-Mentor, Ohio)

Cost of Living: 32 of 50

Housing Opportunity: 5 of 50

Unemployment Rate: 44 of 50

Average Salary: 40 of 50

~~

No. 9 (tie): San Diego, Calif.

(San Diego-Carlsbad-San Marcos, Calif.)

Cost of Living: 35 of 50

Housing Opportunity: 41 of 50

Unemployment Rate: 27 of 50

Average Salary: 16 of 50

~~

No. 9 (tie): Newark, N.J.

(Newark-Union, N.J./Pa.)

Cost of Living: 40 of 50

Housing Opportunity: 44 of 50

Unemployment Rate: 23 of 50

Average Salary: 12 of 50

~~

No. 11: Philadelphia, Pa.

(Philadelphia, Pa.)

Cost of Living: 35 of 50

Housing Opportunity: 38 of 50

Unemployment Rate: 23 of 50

Average Salary: 21 of 50

~~

No. 12: Portland, Ore.

(Portland-Vancouver-Beaverton, Ore.)

Cost of Living: 19 of 50

Housing Opportunity: 39 of 50

Unemployment Rate: 28 of 50

Average Salary: 30 of 50

~~

No. 13 (tie): Memphis, Tenn.

(Memphis, Tenn./Miss./Ark.)

Cost of Living: 8 of 50

Housing Opportunity: 15 of 50

Unemployment Rate: 42 of 50

Average Salary: 48 of 50

~~

No. 13 (tie): Tampa, Fla.

(Tampa-St. Petersburg-Clearwater, Fla.)

Cost of Living: 16 of 50

Housing Opportunity: 22 of 50

Unemployment Rate: 38 of 50

Average Salary: 37 of 50

~~

No. 15: Orlando, Fla.

(Orlando-Kissimmee, Fla.)

Cost of Living: 5 of 50

Housing Opportunity: 50 of 50

Unemployment Rate: 32 of 50

Average Salary: 45 of 50

~~

No. 16: St. Louis, Mo.

(St. Louis, Mo./Ill.)

Cost of Living: 28 of 50

Housing Opportunity: 11 of 50

Unemployment Rate: 35 of 50

Average Salary: 36 of 50

~~

No. 17: Jacksonville, Fla.

(Jacksonville, Fla.)

Cost of Living: 11 of 50

Housing Opportunity: 17 of 50

Unemployment Rate: 35 of 50

Average Salary: 44 of 50

~~

No. 18: San Francisco, Calif.

(San Francisco-San Mateo-Redwood, Calif.)

Cost of Living: 46 of 50

Housing Opportunity: 49 of 50

Unemployment Rate: 8 of 50

Average Salary: 2 of 50

~~

No. 19 (tie): Boston, Mass.

(Boston-Quincy, Mass.)

Cost of Living: 45 of 50

Housing Opportunity: 37 of 50

Unemployment Rate: 13 of 50

Average Salary: 9 of 50

~~

No. 19 (tie): Warren, Mich.

(Warren-Troy-Farmington Hills, Mich.)

Cost of Living: 28 of 50

Housing Opportunity: 2 of 50

Unemployment Rate: 46 of 50

Average Salary: 28 of 50

~~

http://www.dqnews.com/Articles/2009/News/California/Southern-CA/RRSCA090415.aspx

http://www.forbes.com/2009/05/06/cities-expensive-top-lifestyle-real-estate-overpriced-cities_print.html

http://www.latimes.com/business/la-fi-homes5-2009may05,0,2234983.story

http://www.socalmultiunitrealestateblog.com/?p=361

http://www.carofthecentury.com/versai34.jpg

http://www.visitingnewengland.com/PageMill_Resources/image2252.gif

www.superstock.com/stock-photos-images/840-429

http://www.tampaspartans.com/images/logos/Univ%20of%20Tampa%20Shield%204.jpg

http://freepages.history.rootsweb.ancestry.com/%7Eclassicpostcards/Parent%20Directory/usa/florida/duval/skyline.jpg