SILICON BEACH REAL ESTATE SNAPSHOT ~ JANUARY 2014 ~ VENICE IS WAY HOTTER THAN SANTA MONICA

January 1, 2014 on 10:41 pm | In Fascinating Information, For Your Purchasing Pleasure, Market Snapshot, Market Trends, Of Local Importance, Sellers, Statistics, Uncategorized | 1 Comment

by Jodi Summers

Two+ years ago, Google ditched their digs in downtown Santa Monica and expanded into Venice. They took over the landmark binocular building on Main St., leasing 100,000 square feet in three buildings for hundreds of employees.

Other technology monsters and puppies followed, and our neighborhood took on the name Silicon Beach. From Microsoft’s new office at Playa Vista to the scores of start-up accelerator programs and incubator programs that followed, techies seem pleased to be away from aggressive Silicon Valley and settled on our peaceful Westside.

As the tech community swell in number, housing prices are climbing. The Los Angeles Times report that 25-year-old Snapchat co-founder Bobby Murphy recently bought a new two-bedroom house in Venice for $2.1 million, more than 25% higher than Venice median December home price of $1,600,000.

Our burgeoning tech community is inciting a Westside housing grab that has enabled landlords to push sky-high rents even higher and helped send home prices above their pre-recession highs.

“There are 8.5 million people on the planet; 8 million of them would like to live at Venice Beach,” notes decade-long resident Brian. “I’ve been living here for years, but since Google moved in, Venice has become the place.”

Here’s a curious statistic, as fabulously hot as Venice might be, between Dec-2012 vs. Dec-2013 the median
asking price of for sale properties dropped -8%. In December the median asking price for the 43 homes had fallen to $1,678,000, from a media price of $1,822,000 for 46 properties the year before. Meantime the median price
of sold properties is up 22% to $1,600,000 – with 23 properties sold. Expect asking prices to rise again in the spring.

Silicon Beach sister city Santa Monica is quite a different story. In 2013, the median sold price for a home in Santa Monica is down -37%. In December, 2012, the median sale price was $2,398,350 – with 25 homes sold, while December 2013 saw a 19 homes closing price of $1,510,000 – a drop of $888,350. Meantime, median asking prices have risen 16% to $ 2,440,000.


Condo prices for each beach were similar, with Santa Monica logging in a 9% increase to a median sale price of $720,000 and the minimal Venice condo seeing 11% growth to $ 1,082,500.

Combine property types and locations and Santa Monica and Venice sold prices were cumulatively up 15% for all property types.

Around the rest of town 2013 saw residential real estate prices rise Los Angeles by more than 20%.

For more information 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.

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

http://www.santamonicapropertyblog.com/?p=5380

http://articles.latimes.com/2013/nov/30/business/la-fi-silicon-beach-real-estate-20131130

 

CHANGE IS COMING -> GET THE QUALIFIED MORTGAGE (QM) BASICS

December 28, 2013 on 8:26 pm | In Buyers, Fascinating Information, Federal Government, fUNNY...mONEY, Lenders + Vendors, Market Trends, Uncategorized | 1 Comment

edited by Jodi Summers

Now that getting a loan has finally returned to a more comfortable process, the new Qualified Mortgage (QM) rules happening January 10, 2014 add a new twist to the lending game.

QM is a newly created set of restrictions on lending guidelines and the products that are available in the secondary market. For example, there will be no more:

- Interest Only

- Prepayment penalties

- Loan terms longer than 30 yrs

- Generally no debt ratios over 43%

“The effect of QM will be that many qualified borrowers will have more difficulty in obtaining financing,” reveals Caroline McPherson, Senior Mortgage Consultant @ RPM Mortgage.

Fitch Ratings believes that after the Qualified Mortgage rule goes into effect, it will help to protect investors and provide incentives to originators and issuers to maintain high-quality originations while upholding guideline compliance.

Borrowers are still able to apply for Non-QM loans. Most mortgage brokers will continue to offer Non-QM loans, including interest only, higher debt ratios and other unique programs.

The forthcoming ability-to-repay and qualified mortgage rule will have direct consequences for the primary and secondary mortgage markets. Experts say processes will need to be developed to satisfy secondary market participants, including loan aggregators and residential mortgage-backed securities investors.

For borrowers with a debt ratio is over 43%, solutions include paying down debt so that they can qualify under the new debt ratio guidelines. Another option is FHA Loans. Mortgages insured by the federal government will have somewhat looser restrictions.

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http://www.housingwire.com/articles/27925-qualified-mortgage-rule-may-help-protect-rmbs-investors

www.rpm-mtg.com/cmcpherson

http://www.socalmultiunitrealestateblog.com/?p=2623

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THE TOP 1% VS. THE AVERAGE AMERICAN

December 15, 2013 on 5:15 pm | In Fascinating Information, fUNNY...mONEY, Uncategorized, WOW | 2 Comments

By Jodi Summers

While trolling through pages and pages of information and statistics, we came across this really cool graph of the top 1% of money earners vs. the average American > check it out….

Thanks to the Big Picture – http://www.ritholtz.com/blog/2012/03/1-vs-average-american///#more-77424

http://www.santamonicapropertyblog.com/?p=4263

http://www.socalmultiunitrealestateblog.com/?p=1910

SANTA MONICA, VENICE REAL ESTATE SNAPSHOT ~ DECEMBER 2013 > BEYOND AFFORDABLE HOUSING

December 1, 2013 on 10:52 pm | In Buyers, Fascinating Information, fUNNY...mONEY, Market Snapshot, Market Trends, Of Local Importance, Sellers, Statistics, Uncategorized | 1 Comment

by Jodi Summers

The residential real estate trends of the Silicon Beach cities Santa Monica and Venice that of their great mother, Los Angeles, only exponentially more intense.

Affordable housing for sale is a precious commodity. Around SoCal, inventory-starved, lower-cost markets lag well behind 2012 levels, as prices throughout the Southland are  nearly 22% higher than last year, reports DQ news.

The median price paid for all new and resale houses and condos sold in the six-county SoCal region last month was $383,750, up 0.5% from $382,000 in September and 21.8% from $315,000 in October 2012. The $385,000 median this June, July and August was the highest in more than five years.

Los Angeles County median price rose by 22.6% to $477,130 over the year, while unit sales declined by 5.2%.

In Santa Monica and Venice the median sold price in October 2013  was $1,167,000. The 80 properties sold averaged 46 days on the market. The recent high for the two Silicon Beach Cities was Sep. 2013 at $1,307,000. The 89 properties sold averaged 51 days on the market. The most recent stats have us in the winter lull, as November prices had fallen to $1,120,000 when 79 units sold in an average of 45 days.

“Our read on the market is that after playing some rapid catch-up, home prices hit a bit of a mid-summer wall. It took a very specific set of circumstances to trigger price gains of 20% or more over the course of a year. We had a pitifully low number of homes for sale, incredibly low mortgage rates and unusually high levels of investor purchases. In recent months each of those drivers has reversed somewhat,” deduced John Walsh, DataQuick president.

Walsh revealed that the experts still do not understand how much the housing market was affected by October’s partial shutdown of the federal government and fears of a default on the national debt.

It appears that almost all of October’s 21.8% year-over-year increase in the Southland median sale price reflects rising home prices, while a small portion reflects a change in market mix. And any mix shift has been in the wrong direction, with an increase in mid- to high-end sales, and  a big decline in sales of lower-cost distressed properties.

In October, the lowest-cost third of the region’s housing stock saw a 20.0% year-over-year rise in the median price paid per square foot for resale houses. The annual gain was 20.9% for the middle third of the market and 20.2% for the top, most-expensive third.

Sales activity in the middle and upper price ranges continued to outpace sales in more affordable markets. Last month the number of homes sold from $300,000 through $800,000 – a range that includes many move-up buyers – rose 15.5% year-over-year. The number that sold for $500,000 or more jumped 28.5% from one year earlier, while $800,000-plus sales rose 32.9%.

Santa Monica and Venice saw a rise in the median price of for sale properties is up 25% to $1,600,000, while the median price of sold properties is down -3% to $1,120,000.

Investors and second-home purchasers bought 26.5% of the Southland homes sold in October, which is the lowest share since it was 25.1% in November 2011. Buyers paying cash accounted for 27.5% of home sales, down from an all-time peak of 36.9% this February. Now cash buyers make up the lowest part of the market since Sep. 2010.

In October 12.0% of Southland home purchase loans were adjustable-rate mortgages (ARMs).  Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 26.3% of last month’s Southland purchase lending. FHA loans accounted for 19.7% of all purchase mortgages last month.

The typical monthly mortgage payment Southland buyers committed to paying in October was $1,499, down from $1,547 the month before and up from $1,115 a year earlier. Adjusted for inflation, it’s 48.8% below the current cycle’s peak in July 2007.

The average rate for a 30-year fixed-rate mortgage was 4.19%, up from the year-ago rate of 3.38%.

As mortgage rates move up, some economists speculate home prices may have peaked for the time being. “The increase in house prices already seen is bringing hesitant and previously sidelined sellers back to the market, helping to drive a loosening in supply conditions,” said Paul Diggle at Capital Economics. “Meanwhile, the recent sales activity data have come in fairly weak, which will further add to the loosening in the balance between supply and demand.”

And what of affordable housing for purchase in the Los Angeles area? Let’s let the kittle of fish stew a while longer.

For more information 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.

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http://blogs.wsj.com/economics/2013/11/26/a-look-at-case-shiller-by-metro-area-27/

https://www.terradatum.com/cmm/CLAW;jsessionid=DBE5D6EF3971B1CEF43522C95C715527

http://www.car.org/newsstand/newsreleases/2013releases/aug2013sales

http://www.santamonicapropertyblog.com/?p=5339

http://laedc.org/business-assistance/additional-resources/e-edge-newsletter/#3

http://www.dqnews.com/Articles/2013/News/California/Southern-CA/RRSCA131112.aspx

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http://www.trbimg.com/img-51088347/turbine/la-apphoto-us-home-prices.jpg-20130129/600

http://www.calculatedriskblog.com/2013/11/comment-on-house-prices-and-graphs.html

http://www.amillionlives.net/wp-content/uploads/2011/01/Calculate-a-Mortgage-Payment.jpg

http://www.trbimg.com/img-51088347/turbine/la-apphoto-us-home-prices.jpg-20130129/600

 

HOW TO FIND THE RIGHT HOME INSPECTOR

November 24, 2013 on 7:09 pm | In Buyers, For Your Purchasing Pleasure, Uncategorized | No Comments

by Mike Bouma

The market is flooded with home inspectors due to the ease of getting into the profession.  While this may seem beneficial to someone looking at hiring an inspector for their home purchase or sale, it can often be problematic.  Sure, you’ll have a large number of inspectors to choose from and chances are you’ll be able to find a great deal – however, there’s more to hiring a home inspector than just the cost.  As mentioned, getting into home inspecting is often fairly easy as licences are not all that difficult to obtain – in fact, many home inspectors operate without a licence.  As such, along with the large number of inspectors to choose from come a large number of inspectors who aren’t quite as qualified as they should be.  Fortunately, we’ve provided you with some great tips below on how to find a great home inspector.

  1. Licensing and Professional Association Membership

As mentioned, obtaining certification to be a home inspector can be a fairly simple process and doesn’t ensure that you’ll be hiring a quality inspector.  However, to be more confident in your choice, check to see if the inspector is a member of any professional associations.  For instance, in Canada there is the Canadian Association of Home and Property Inspectors and in the United States there is the National Institute of Building Inspectors.  While this still doesn’t guarantee a great home inspector, many of the requirements for becoming a member are rigorous and membership can attest to their expertise.

  1. 2. Get Referrals

Your real estate agent will be one of the best people to give you a referral to a good home inspector.  Granted their large involvement in the housing market they’ll likely know many inspectors and be familiar with the level of work they provide.  Be sure to ask numerous questions and get the names of a few inspectors they know personally.  Ask if the inspector is someone they’d hire to inspect their personal home.  In addition to your real estate agent, consider asking family and friends if they can provide you with the name of a great inspector.  If they’ve recently bought or sold a home, chances are they would have had a home inspector.

3. Interview Potential Inspectors

One of the best ways to ensure the inspector you’re hiring will provide quality work is to ask them a lot of questions.  Ask them how long they’ve been in the business, how many homes they’ve personally inspected, how long they typically take to inspect a home, and what type of reports they will provide.  These types of questions will give you an idea of the level of expertise and experience they possess.  In addition, find out if they have errors and omissions insurance as this is often a good indicator of their level of professionalism in the field.

Hiring a good home inspector doesn’t have to be difficult.  By doing a quick background check on potential inspectors, getting advice from your real estate agent, friends, and family, and interviewing potential inspectors yourself, you’ll be well on your way to finding the perfect home inspector.

Mike Bouma is a Broker with RE/MAX Ability in Oshawa, Canada. Visit Mike at http://bouma.ca/ for more articles as well as info on http://www.mikebouma.ca Bowmanville, Ontario real estate.

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http://www.hergert-inspection.com/Bellevue%20Home%20Inspector.JPG

http://bylerhomeinspections.com/sitebuilder/images/home_inspector-336×320.jpg

http://www.santamonicapropertyblog.com/?p=4646

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