Jodi Summers = Santa Monica Real Estate

SMDP: REALTORS TARGET SMALL HOMES FOR REDEVELOPMENT

May 8, 2013 on 12:23 pm | In Fascinating Information, Market Trends, Of Local Importance, Sellers, Uncategorized | 2 Comments

Here’s an article from the Santa Monica Daily Press about a recent real estate trend worth knowing about…

Santa Monicans are being targeted by real estate agents representing developers looking to turn small homes in desirable neighborhoods into mini-mansions that can be sold for double the original asking price.

The agents tend to single out older homes, often taking up a relatively small portion of the parcel on which they sit, offering a cash purchase and a promise by the buyer to take care of normal closing costs, provided the homeowner does not broadcast their intent to sell.

Residents report notes left on their doors, direct mail bearing a picture of their own home and even direct phone calls soliciting sales.

That practice is called by many names, including off-market listing, pocket listing or quiet listing, and while it is completely legal, it often is a bad deal for sellers in hot markets like Santa Monica, said Don Faught, president of the California Association of Realtors.

It has its uses, particularly when the seller is a celebrity or other high-profile individual who wants to keep the sale of their home on the down-low, but average homeowners tend to get more for their properties when they advertise them widely, Faught said.

Home prices across Southern California hit a 56-month high in March, rising 23.4 percent from March 2012, according to DataQuick, a real estate news site. Despite rising prices, the unsold inventory index — the number of months it would take to sell the current supply of homes on the market at the current sales pace — is 2.7 months for Los Angeles County.

Six to seven months is considered “normal,” said Lotus Lou, media relations manager for the California Association of Realtors.

In Santa Monica alone, the assessed value of residential real estate jumped by $1.121 billion in 2011, according to a report released in September by the Los Angeles County Assessor’s Office.

Even multi-million dollar homes are flying off the shelves, with the sale rate of homes priced at $1 million or more at its highest level since 2007, according to DataQuick.

That’s partially a result of the recovering economy, rising home prices and record number of cash purchases as well-capitalized buyers negotiate a market in which it’s difficult to get a mortgage, according to the site.

Thomas Magiar, a realtor with the WSA Partnership-Coldwell Banker on Montana Avenue, represents several such buyers — developers promising cash for homes in the north of Montana neighborhood.

Magiar dropped off letters at homes in the area that were “under-improved for the extreme value” of their location, usually one-story houses on a property that could accommodate a larger structure.

He believes that quiet listings offer some benefit to the seller like avoiding the circus of promoting their homes to outside buyers. It’s not right for all sellers, but for the small homes north of Montana Avenue, they could get a better deal than they would if they put money into their homes to fix any existing problems and then went out on the open market, he said.

“There it’s very clear because there are a lot of people who want to move to the neighborhood, have money and want to build,” he said.

Developers can buy up an old property for a couple million dollars, demolish the existing home and build a two-story luxury home where an old Craftsman once was. Those can sell for $4 to $5 million, even higher if it’s near the beach, Magiar said.

That’s not much of a selling point for Doris Sosin, one of the founders of the North of Montana Neighborhood Association, who lives on 12th Street.

Sosin received one of Magiar’s flyers, and she’s also received phone calls and mail, all of which have picked up since the economy began to improve.

At least one Sunset Park resident has also received a request for a sale which appeared to be a handwritten note that turned out to be a computer-generated form on closer inspection.

Sosin led the charge in the late 1990s against “McMansions,” homes built to the margins of their property lines. They overshadowed neighboring properties, and led to the death of many mature trees that had to be removed so that the home could be built out.

Her work resulted in new rules around single-family homes, requiring set backs and imposing controls over how much of a parcel can be covered.

The attempts to build to even those restricted maximums are unwelcome, she said, because they only succeed in making neighborhoods more expensive to move in to and replace quaint, well-loved homes with larger versions.

You don’t need six bathrooms for two people, she said.

“My goal is to make the quality of life that I’m living right now, the quality for me and my neighbors, better,” Sosin said. “That’s what I care about.”

http://smdp.com/realtors-target-small-homes-for-redevelopment/121952?utm_source=wysija&utm_medium=email&utm_campaign=newsletter

http://www.santamonicapropertyblog.com/?p=4919

http://imagesus.homeaway.com/mda01/64f46b94-0c6a-42c6-b3dd-075c88e71d07.1.12

SANTA MONICA ~ VENICE REAL ESTATE SNAPSHOT ~ MAY 2013 ~ ALL GOOD NEWS!

April 29, 2013 on 8:42 pm | In Buyers, Fascinating Information, Market Snapshot, Market Trends, Of Local Importance, Sellers, Statistics, Uncategorized | 6 Comments

by Jodi Summers

All the residential real estate news this month is about recovery. The optimism spreads across business sectors and is sprawled across all kinds of specialized news mediums. Check out the headlines and the highlights…

Median Home Prices in SoCal Continue Upward Climb – DQ Real Estate News and Information Services

The median price paid for a Southern California home hit a 56-month high in March, rising 23.4% from a year earlier as the impact of foreclosures continued to fade and sales of mid- to high-end homes shot up. Total sales were the highest in six years for a March. In Los Angeles County, the median price increased by 24.2% over the year in March to $380,000. (FYI, for Santa Monica + Venice residences the median sale price was $1,350,000.)

Home-Seller Confidence Doubles in the Second Quarter – Redfin Blog

Responses to Redfin’s Real-Time Seller Survey indicated a dramatic shift in the confidence of home sellers in the second quarter—45% of sellers believe now is a good time to sell, up from just 22% in the first quarter and 15% in the fourth quarter. Meanwhile, 44% of sellers believe now is a good time to buy. Nearly a third of sellers have no major concerns about selling, up from just 19% in the first quarter.

Survey Finds Appraisers Finding Hope in Rebounding Housing Market – National Mortgage Professional

A recently completed survey conducted by United States Appraisals found appraisers mildly encouraged by the current housing market. When asked, “What is your current level of confidence in the housing market,” 54.7% of respondents answered mildly or moderately strong, while 24.9% were neutral. The survey was completed by United States Appraisals’ nationwide panel of residential appraisers. United States Appraisals plans to conduct this survey quarterly to monitor trends and opin

“Appraisers tend to be realistic, focused on their local markets and unmoved by news stories and national numbers,” said Aaron Fowler, president of United States Appraisals. “We believe they provide a good gauge of the status of the housing market. After the last few years, a mildly strong level of confidence shows some definite improvement in appraiser attitudes.”

Fannie Economists Project 1.8M Borrowers Could Regain Equity in 2013 - Fannie Mae’s Economic and Strategic Research

The broadening housing recovery has firmed up home prices around the country, with the potential to restore many underwater mortgages to a position of positive equity, according to Fannie Mae’s Economic and Strategic Research group.

Citing data from CoreLogic, Orawin Velz, Fannie Mae’s director of economic and strategic research, notes that 1.7 million properties moved from negative to positive equity last year. Provided the home price gains seen so far this year continue, Velz anticipates another 1.8 million properties will rise out of their underwater positions by the end of 2013.

NAHB Offers Reasons for Optimism About Housing’s Full Recovery – National Association of Home Builders

The nation’s growth “is finally being driven by housing again,” proclaimed David Crowe, the National Association of Home Builders chief economist. Home prices have been rising, partly the result of tightening inventory of completed new homes, which in turn is stimulating demand. Employment—a major factor in home-buying decisions—continues to strengthen, albeit incrementally. And housing’s recovery is now national in scope.

However, that recovery has not taken full flight yet. Housing still only accounts for 3% of the total economy, or about half its historical level. Single-family home starts are at 47% of the 1.3-million-unit annual level that’s considered “normal” to meet anticipated demographic and population trends.

http://www.builderonline.com/economic-conditions/nahb-offers-reasons-for-optimism-about-housings-full-recovery.aspx?utm_source=newsletter&utm_content=jump&utm_medium=email&utm_campaign=BP_042613&day=2013-04-26

http://www.dsnews.com/articles/fannies-economic-team-concludes-18m-borrowers-could-regain-equity-in-2013-2013-04-24

http://www.dqnews.com/

http://www.santamonicapropertyblog.com/?p=4903

http://laedc.org/business-assistance/additional-resources/e-edge-newsletter/#1

http://blog.redfin.com/blog/2013/04/seller-survey-q2-2013.html

http://nationalmortgageprofessional.com/news36811/recent-united-states-appraisals-study-finds-appraisers-hopeful-regarding-housing-market

http://media.cmgdigital.com/shared/lt/lt_cache/thumbnail/960/img/photos/2012/08/10/ae/f5/appraiser_1018_BH01_276455a.jpg

https://www.terradatum.com/cmm/CLAW;jsessionid=6ABFA655C6FA797E8E7876C639A818D8

http://www.dsnews.com/articles/fannies-economic-team-concludes-18m-borrowers-could-regain-equity-in-2013-2013-04-24

http://parr.com/images/uploads/blog/NAHB-2013-forecasts.gif

SANTA MONICA REAL ESTATE SNAPSHOT ~ APRIL 2013 ~ WE NEED MORE!

April 1, 2013 on 11:25 am | In Buyers, Market Trends, Of Local Importance, Sellers, Statistics, Uncategorized | 4 Comments

by Jodi Summers

The good news rose like a phoenix from the bleakness of winter. In February, the median sale price on existing California homes ascended 24.2% to $333,880 < marking a full year price gains. The California Association of Realtors added that sales of homes priced above $500,000 increased by nearly 31% over the year (our neck of the woods) compared with sales of homes priced below $300,000 which declined by 27% over the same period…basically homes priced below $300,000 are disappearing. Lack of inventory is creating fierce competition for available homes > elevating the median sale price.

Have you had the chance to experience the frenzied bidding wars taking place on properties north of Montana Ave.? Well-priced homes for sale in the areas of much-coveted Franklin and McKinley elementary schools and near the beach can go for $500,000 above asking price. Some of our sellers with strategically located and priced properties are getting close to two dozen offers. Big cash offers are often the winners.

Didja know, in Santa Monica, our median sold price for residential properties can vary greatly depending up if more houses or condos are sold in any given month. According to Clarus Market Metrics – In February, the median sold price was way up @ $1,040,000…more houses. In March 2013, the median sold price may be down -3% year-over-year, but down 23% for the month to $795,000 < more condos sold than houses last month.

A slow mile does not lose a marathon. If we look at a three-year picture for Santa Monica sold properties, Median Sold Price by quarter is up 20% from Q1 2011. Sellers take note – prices are beginning to approach previous highs. The median price of for sale properties is up 34% from 3 years ago. We’re about to hit the busy buying season for beach lovers and families with kids…just think of how great our sales numbers will look in June!

Looking at the region, the median price paid for all new and resale houses and condos sold in the six-county Southland was $320,000 last month, down 0.3% from $321,000 in January and up 20.9% from $264,750 in February 2012. We hit a high of $330,000 in August 2008.

“March and April will offer a better view of how broader market trends are shaping up this year. One of the real wild cards will be how many more homes go up for sale,” offers DataQuick president John Walsh. “More people who’ve long been thinking of selling will be tempted to list their homes at today’s higher prices. Fewer people will be underwater and therefore could at least break even on a sale. Some investors who’ve held for a while will consider cashing in. A meaningful rise in the supply of homes on the market should at least tame price appreciation.”

Demand for homes is strong, but the lack of inventory is having a negative impact on sales. The inventory of unsold single-family detached homes in California declined last month to a 3.6 month supply < compared with 5.4 months a year ago. Los Angeles County had a 3.3-month supply of single-family homes in February, down from 5.7 months during the same period of 2012. Homes are also selling fast, with the median time on the market for single-family home in California was 34.2 days in February < versus 57.4 days a year ago.

Sellers, where are you? Demand is exceeding supply in Santa Monica with less than 1.5 months of inventory on the market in Santa Monica < an inventory drop of -63% from March 2012.

A bigger perspective. Here is a year-over-year summary of sales and price activity in Southern California by county:

Los Angeles County: unit sales declined by 5.2% over the year to February, but the median price shot up by 23.8% to $337,630.
Orange County: sales edged up by 1.0% last month, while the median price soared by 25.1% to $607,230.
Riverside County: sales of existing homes contracted by 12.0%, but the median price increased by 22.5% to $245,830.
San Bernardino County: sales declined by 12.7%, while the median price rose by 18.0% to $156,360.
San Diego County: unit sales ticked up by 0.5% and the median price increased by 12.3% to $407,220.
Ventura County: existing home sales were up by 2.4% and the median price rose by 17.7% to $461,960.

We’re here to help you with your real estate needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

http://www.car.org/newsstand/newsreleases/2013releases/febsales

https://www.terradatum.com/cmm/CLAW;jsessionid=072C8FA3CE76056976C72596933C34D7

http://www.santamonicapropertyblog.com/?p=4858

http://laedc.org/business-assistance/additional-resources/e-edge-newsletter/#2

http://www.dqnews.com/Articles/2013/News/California/Southern-CA/RRSCA130313.aspx

FOR SALE IN OCEAN PARK, SANTA MONICA ~ 3-19-2013

March 19, 2013 on 6:45 pm | In Buyers, For Your Purchasing Pleasure, Lights Camera Transaction, Market Snapshot, Of Local Importance, Sellers, Uncategorized | 2 Comments

by Jodi Summers

Finally, we have some inventory in Ocean Park, Santa Monica. There are currently nine properties for sale in our dynamic walkable neighborhood at the beach, just north of Venice. Every day feels like a holiday in Ocean Park. Here’s what we can help you buy today, courtesy of Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.

2721 2ND ST # 112

asking price: $499,000

1 Bedroom, 1 Bathroom

IF YOU LIKE QUALITY & LOCATION, THIS RARE CORNER UNIT, OCEAN PARK, BEACH PAD IS FOR YOU. NICELY UPDATED & READY TO GO. LARGE NEW WINDOWS LOOKING OUT TO GREEN GRASS LOCATIONS. CROWN MOLDING THROUGHOUT. GATED, 2 CAR TANDEM PARKING (RARE FOR 1 BR UNIT). BEAUTIFUL FLOORS. GREAT NATURAL LIGHT & OCEAN BREEZE. OPEN FLOOR PLAN. SECURED COMPLEX.

3007 3RD ST # A

asking price: $649,000

2 Bedrooms, 2.00 Bathrooms

AN ABSOLUTE DIAMOND IN THE ROUGH IN A SENSATIONAL LOCATION! THIS IS A WONDERFUL CRAFTSMAN COTTAGE SITTING ATOP THE HILL, IN OCEAN PARK, WITH OCEAN VIEWS AND A BEAUTIFUL FRONT GARDEN AREA WHICH WITH A LITTLE IMAGINATION COULD BE SENSATIONAL! NOT FOR THE FAINT OF HEART, THIS EXTREMELY PRECIOUS TURN-OF-THE-CENTURY 2 BEDROOM, 2 BATHROOM COTTAGE IS READY TO BE REMODELED AND RE-IMAGINED!

2960 NEILSON WAY #105

asking price: $690,000

1 Bedroom, 1.50 Bathrooms

GORGEOUS CORNER UNIT WITH LARGE PATIO TO TAKE IN GREEN BELT VIEWS AND WONDERFUL OCEAN BREEZES AT PRESTIGIOUS SEA COLONY II. ENJOY ALL THIS LOCATION HAS TO OFFER. CLOSE TO THE OCEAN AND MAIN STREET SHOPS AND RESTAURANTS. SIDE-BY-SIDE PARKING AND 24 HOUR SECURITY.

3118 LINCOLN

asking price: $1,295,000

# Units: 1, Lot Size: 4,652

FANTASTIC OPPORTUNITY ON HIGH TRAFFIC LINCOLN BLVD. CORNER LOT – LINCOLN AND NAVY. SMALL IMPROVEMENT ON PROPERTY. CURRENT TENANT IS CAR DEALER. 2003 PHASE ONE ON FILE. ZONED SMC4.

208 BICKNELL AVE

asking price: $1,395,000

# Units: 2, Lot Size: 4,796

WELL MAINTAINED DUPLEX NEAR THE CORNER OF BICKNELL AND MAIN. C2 ZONING. GATED ENTRANCE, WITH AMPLE PRIVATE PARKING FOR MANY CARS… TENANT OCCUPIED, PROPERTY SHOWN WITH ACCEPTED OFFER.

652 KENSINGTON RD

asking price: $1,395,000

3 Bedrooms, 1 Bathroom

BUNGALOW-INFLUENCED 1927 HOME IS LOCATED IN A QUIET NEIGHBORHOOD BLOCKS TO THE BEACH. INTERIOR REQUIRES YOUR ATTENTION WITH KITCHEN & BATHS IN NEED OF REMODELING. 3 BEDS 1 BATH ON FIRST FLOOR. 2ND FLOOR IS LARGE OPEN SPACE. ZONED FOR 2-3 UNITS. DETACHED NEWER 2 CAR GARAGE.

3009 2ND ST

asking price: $1,550,000

3 Bedrooms, 2.50 Bathrooms

THIS IS ONE OF THE LAST LOTS OF ITS KIND IN THE BEST SANTA MONICA LOCATION. TURN OF THE CENTURY HOME AND GUEST HOUSE JUST SECONDS TO MAIN STREET AND OCEAN PARK. SUN PORCH ENTRY, BRIGHT CHARM FILLED INTERIORS WITH ORIGINAL FIR FLOORS AND VINTAGE MOLDINGS. COOK’S KITCHEN WITH SERVICE PORCH, SECLUDED FRONT AND BACK YARDS. GUEST UNIT 1+1. TOTAL PRIVACY FROM MAIN HOUSE.

37 SEA COLONY DR

asking price: $1,795,000

2 Bedrooms, 2.50 Bathrooms

TURNKEY OCEAN VIEW TOWNHOUSE AT THE EXCLUSIVE 24 HOUR GUARD GATED SEA COLONY I AND JUST STEPS FROM THE BEACH. FEATURING HARDWOOD FLOORS THROUGHOUT. ALSO OFFERED FOR LEASE AT $6,850 PER MONTH.

2623 5TH ST

asking price: $1,999,000

4 Bedrooms, 5.00 Bathrooms

AMAZING OPPORTUNITY TO BUY THIS UNIQUE LOT W/ PLANS & PERMITS READY TO BE PULLED TO BUILD A MODERN STYLE HOME APPROXIMATELY 6000 SQ FEET, COST OF CONSTRUCTION $1.5M PLUS $230K FOR POOL.18 MONTHS CONSTRUCTION SCHEDULE. PERMIT IS READY AND MUST BE PULLED BY APRIL 14, 2013. DEMO MUST START OCT 14.

Do let us know how we can move forward together in meeting your real estate goals 310.392.1211 or jodi@jodisummers.com.

Best….

Jodi Summers

The SoCal Investment Real Estate Group

Sotheby’s International Realty

310.392.1211

jodi@jodisummers.com

www.SantaMonicaPropertyBlog.com

License # – 01343854

Things do not change, we change. – Henry David Thoreau

p.s. a. This is not intended as a solicitation if your property is already listed with another agent.

b. We are not the listing agent on this property.

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http://pro.themls.com/membersonly/All_Searches/prospects_frame3.cfm?theButton=run_prospect_total&search_num=67138765-6543-45bd-8256-bf73017e9e53&update_type=All_Changes

http://www.santamonicapropertyblog.com/?p=4823

SANTA MONICA REAL ESTATE SNAPHOT ~ MARCH 2013 ~ CHECK OUT THESE STATISTICS

February 27, 2013 on 9:29 pm | In Buyers, Market Snapshot, Market Trends, Of Local Importance, Sellers, Statistics, Uncategorized | No Comments

by Jodi Summers

2013 was the best January for Southern California home sales in six years. Fabulously low interest rates have generated a growing pool of buyers chasing a shrinking supply of homes. Buyers are highly motivated. Prices are skyrocketing. Just look at these incredible Santa Monica home price statistics when you compare January 2011 to January 2013:

· The median price of sold price is up 66%.
· The median price of for sale properties is up 33%.
· The number of For Sale properties is down -46%.
· The number of New properties is down -12%.
· The average days on market is down -21%.
· The average months supply of inventory is down -64%.
· The number of Sold properties is down -24%.

“Buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly,” observes NAR Chief Economist Lawrence Yun. “We’ve transitioned into a seller’s market in much of the country.”

Throughout Los Angeles, investors and cash buyers are hovering at near record levels…and the move-up market is posting sizable gains as well. In January, sales of homes priced between $300,000 and $800,000 (a range that includes move-up buyers), increased by 49.6% over the year. Sales of homes priced over $500,000 jumped by 74% year-over-year, while sales of homes priced over $800,000 were up by 84.2% compared with January 2012.

https://www.terradatum.com/cmm/claw

http://www.reuters.com/article/2013/02/20/us-usa-economy-idUSBRE91J0OW20130220

http://www.santamonicapropertyblog.com/?p=4811

http://www.inman.com/news/2013/02/21/january-existing-home-sales-slightly-tight-inventory

http://www.dqnews.com/Articles/2013/News/California/Southern-CA/RRSCA130213.aspx

http://www.dqnews.com/Charts/Annual-Charts/LA-Times-Charts/ZIPLAT12.aspx

http://blogs.wsj.com/developments/2013/02/21/housing-its-becoming-a-sellers-market/?mod=WSJ_3Up_RealEstate

http://laedc.org/eedge/archive/2013/ee021913.html#1

SANTA MONICA + VENICE REAL ESTATE SNAPSHOT ~ FEBRUARY 2013 > EVERYTHING IS SELLING

January 31, 2013 on 11:50 am | In Buyers, Lenders + Vendors, Market Snapshot, Market Trends, Of Local Importance, Sellers, Statistics, Uncategorized | 1 Comment

by Jodi Summers

Watch real estate prices rise in 2013. All the indicators imply that this will be a wealth-building year for owners of residential real estate. ★The economy is officially in recovery. ★ Housing inventories are way down. ★ Mortgage rates are at historic lows. ★ And everyone who had been waiting for the bottom of the market is now panicking to get a deal before it’s too late.

2012 set the pace for big growth. In Los Angeles County, the median sold price is up 27% from 2011. DQ News notes that the median price paid for a home in California in December was up 21.5% from the previous year. CoreLogic predicts that U.S. home prices would end the year up 7.9%. Ironically, at the beach, we didn’t keep pace with the rest of the country. For single family homes in Santa Monica and Venice, comparing December 2011 to December 2012, the median sold price is up 7%.

What this all translates to is that the average price for a home in California in December 2012 was $299,000. The median price for a home in L.A. County was $738,000. The median price of a home Santa Monica and Venice in December was $1,610,000. Life is precious at the beach.

Money and availability are two of the prime causes for the recent price hikes.

Let’s talk money…the Fed’s Quantitative Easing program, dubbed QE, is reducing mortgage rates to what Federal Reserve Chairman Ben Bernanke calls a “credibly low” level. The Fed has vowed to buy up mortgage-backed securities at $40 billion per month to keep interest rates low until the job market improves. That bodes well for qualified buyers.

“Taken together, these actions should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative,” observes to a Federal Open Market Committee report.

With low mortgage rates, buyers are getting a lot for their money.

Now let’s talk availability – inventories have declined drastically. The fine value in real estate has been impressing investors, who are jumping into the market and making all-cash purchases. They then turn these properties in to rental properties, with plans to sell as the market strengthens or to merely buy and hold.

The low inventory has left homebuyers submitting multiple bids and upbidding each other, pushing up prices – in some cases by more than $100,000 – and putting a damper on the idea of finding a deal on their dream property.

In Venice and Santa Monica, virtually all reasonably priced properties have gone pending in less than two weeks….not to mention the fact that the number of properties on the market has dropped 52% between 12-11 and 12-12.

The number of homes listed for sale at the end of 2012 stood at the lowest level in more than five year. Nationally, there were1.57 million homes listed for sale at the end of 2012, down 17.3% from one year ago, according to data tracked by Realtor.com.

Inventories were down in all of the nation’s 30 largest housing markets, compared for 2012. Sacramento led the pack with an amazing 68% decline in housing. Seattle fell 45%; San Francisco – 43%; Los Angeles – 40%; Orange County, CA and Atlanta declined 39%; and San Diego 38%.

Inventories typically decline in December, January and February as home-shopping activity cools. But in 2012, inventories never grew.

“Sellers have been reluctant to put their homes on the market,” offers Steve Berkowitz, chief executive of Move Inc., which operates Realtor.com. January and February, he notes, “are going to be an interesting time to watch” because they’ll provide early clues about buyer traffic and sellers’ expectations. Already, online search demand is up from one year ago.”

Now let’s talk about investors and their impact on the real estate marketplace.

Investor buying of single family homes as rental properties increased significantly several years ago. More recently, the entrance of and/or increased activity by “big-money” institutional investors resulted in a substantial increase in investor buying. You’ve seen it if you’ve been trying to buy in the north of Montana neighborhood of Santa Monica or on the chic streets of Venice. Many of the desirable properties are being bid up by investors going well over asking price.

If you’re in search of a deal, you need to be lucky and aggressive. Investors bought 42% of all homes sold at foreclosure auctions statewide last quarter, according to DataQuick. Not to mention that California’s foreclosure crisis eased considerably during the final quarter of last year, with the number of homes entering foreclosure dropping to a six-year low.

California has also been able to work through its foreclosure problem faster than other states, in part because foreclosures take place largely outside the courtroom, shares Celia Chen, a housing economist with Moody’s Economy.com. California has not been bogged down with the same level of paperwork issues and delays that states such as Florida or New York have experienced.

“Ultimately, fewer foreclosures means an even tighter market, which means a more rapid recovery,” concludes Christopher Thornberg, a principal at Beacon Economics. “I see very little to forestall the real estate market this year.”

The steep decline, accompanied by a similar drop in home repossessions, has cleared the path for a quickened pace of recovery of home prices. Good loans and reduced inventory suggest that housing should increase again in 2013.

We’re here to help you with your real estate property needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – jodi@jodisummers.com or 310.392.1211, and let us move forward together.