By Jodi Summers

Optimistic news on the housing market from two very respected sources – the Wall Street Journal and Forbes. Yeah us! According to Forbes, three of the top ten markets where home prices are rising are in California.

Enjoy this fact for residential real estate in Santa Monica – comparing February 2008 to February 2010, the number of under contract properties is up 120%, according to Clarus Market Metrics.

Asking prices on single-family homes have increased as much as 36% from the previous year in some local cities, Forbes notes, an indicator that is “a bounce off the bottom of the bubble bursting.”

In Santa Monica, contrasting Feb. 2008, to Feb. 2010, the median price of for sale properties is down 15% and the median price of sold properties is down 10%.

Three of the top ten markets where home prices are rising are in California. They say it’s because markets in that state were inflated earlier, many were well positioned to make a comeback even before the larger economy recovered. According to the 2010 National Apartment Index Report by Marcus & Millichap, our sister city, San Diego, came in @ No. 2 (behind Washington D.C.) as a residential market to watch due to expectations for resumed employment and household growth. (Los Angeles is @ No. 13, thanks to perceived strengths in our marketplace. )

Forbes notes rising prices in the SoCal cities of Poway and Arcadia, as well as Sunnyvale up in Silicon Valley. You will be delighted to note that in Arcadia, prices increased an average of 28%. Inventory is up, and prices “overall” are on the rise, following “a natural seasonal trend for healthy markets, but it hadn’t been reflected in California since the bust.”

“That natural seasonal stuff didn’t happen in 2008 in the California markets,” observes Michael Simonsen, CEO of Altos Research. “2007 to 2008 was the big bust, so the expected seasonal uptick didn’t happen. It did in 2009.”

In Feb. 2008, we had 10.6 months of property inventory on the market. In Feb. 2010, the average months supply of inventory is down -53.1% to about 5 months. Sages say 3.7 is parity in the marketplace..

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Another infobyte to bolster your confidence in the local residential real estate market – the Wall Street Journal proclaims that shadow inventory is unlikely to hurt the marketplace. Nearly 5 million houses and condos, of which the mortgages are delinquent, will go through foreclosure over the next few years, concludes research by John Burns Real Estate Consulting Inc. The study also presumes that there is strong investor demand for these properties, “as long as employment continues to recover and interest rates remain moderate, these sales won’t have much impact on overall prices.”

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We would like your real estate business. If we can provide you with more detailed information, please contact the SoCal Investment Group through Jodi Summers, Jodi@jodisummers.com. We look forward to working with you in your next real estate transaction.

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http://www.realtor.org/rmodaily.nsf/pages/News2010021602?OpenDocument

http://www.forbes.com/2010/02/25/housing-sales-decline-markets-equities-real-estate.html?partner=alerts

https://www.terradatum.com/

The Wall Street Journal, James R. Hagerty (02/16/2010)

Join the conversation! 5 Comments

  1. Foreclosed homes accounted for 24 percent of all residential sales in the second quarter of 2010.

  2. Bank of America said it’s extended its review of foreclosure documents to all 50 states, and will stop all foreclosure sales until the review is completed.

    Meanwhile, PNC Financial Services Group Inc. says it’s halting most foreclosures and evictions in 23 states for 30 days, bringing to four the
    number of lenders who have publicly acknowledged potential problems in their handling of foreclosure paperwork. PNC said it took the step so it can confirm its foreclosure procedures are in compliance with state laws.

  3. What is the budget and head count of the office of accountability?

  4. SACRAMENTO-The State of California has officially gone to market with 11 office properties totaling 7.3 million square feet after disclosing in December that it would sell the office buildings on a sale-leaseback basis to raise funds to keep California’s government going. The California Department of General Services, which in December named CB Richard Ellis to market the properties, expects that the sales of the buildings will generate in excess of $2 billion in one-time revenue. Offers are due by April 14 on the portfolio, which is expected to draw interest from investors worldwide.

  5. Anyone know of a hard money lender with decent rates?

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Jodi Summers
Sotheby’s International Realty
310.260.8269
jodis@jodisummers.com
www.SoCalInvestmentRealEstate.com
www.SantaMonicaLandmarks.com
www.SoCalIndustrialRealEstateBlog.com
www.SoCalOfficeRealEstateBlog.com
www.SoCalGreenRealEstateBlog.com
www.SantaMonicaPropertyBlog.com

Jodi Summers Bio

With $100,000,000 in listed inventory, Jodi Summers understands the coastal commercial real estate market. A top producer with Sotheby’s International Realty, Jodi knows finance, rules, regulations, procedures and methods. She is accurate, knowledgeable, timely and aware of how government shapes the cities of Southern California.

Jodi is born in Brooklyn, raised in and around Manhattan – the family business was marketing, Madison Avenue style. Childhood math quiz questions calculated demographic and psychographic percentages or analyzed the allocation of adverting dollars. Word games were for devising slogans.

An honors graduate from the Walter Cronkite School of Journalism at Arizona State University, Jodi moved to California to achieve her goal of living by the beach with a palm tree and a hibiscus bush in her yard.
She thrived as an entrepreneur in the entertainment, media and marketing industries. One of her books, “Marking and Marketing Music,” is in second edition.

“My marketing and communication skills have proven to be a true gift when it comes to promoting real estate,” observes Jodi. “And I am consistently able to get an exceptionally high price per square foot for my sellers.”

Discipline (Jodi holds a Black Belt in Tae Kwon Do), organization, motivation, excellent communication skills and knowing & satisfying the needs of her clients have been her essentials for running a successful business. A passion for investment real estate explains her emphasis in asset-yielding properties.

Her team joined Sotheby’s International Realty for the company’s powerful brand and stellar reputation.
“We offer the broad market knowledge needed to assist clients in formulating a sound acquisition strategy,” Jodi amplifies. “Together, we evaluate various markets, property types and neighborhoods to devise a customized approach that meets each client’s specific objectives.”

Jodi is a member of the Action Apartment Association of Westside income property owners, the Santa Monica Conservancy historic preservation society, the Ocean Park Association, the Friends of Sunset Park community group, the Real Estate Investors Club of L.A., and the Culver City Rock & Mineral Club. Members of her team are fluent in Spanish and Italian.

“Our reputation assures your satisfaction.”

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