Sunday, August 19, 2007

Homes Sold in Chatsworth for July 2007


New: 75
Avg Listing Price: $889,865
Under Contract: 18
Avg Listing Price: $751,871
Sold: 30
Avg Sales Price: $626,400
%Sales Price Versus /Listing Price: 98.66%
Avg Days on the Market: 49
Homes Sold In Chatsworth For June 2007

Property Type: Residential
New: 75
Avg LP: $934,278
Under Contract: 18
Avg LP: $704,532
Sold: 38
Avg SP: $701,915
%SP/LP: 96.85%
Avg DOM: 61

Tuesday, August 14, 2007

Foreclosures


LOS ANGELES/LONG BEACH, CA has 38,199 Foreclosures filings and 1 Filing per 87 Households, an increase of 125% from the 1st Half of 2006

Tuesday, July 17, 2007

Foreclosures
7/17/07

According to real estate data provider PropertyShark.com, Foreclosures were on the rise in Los Angeles, in the second quarter,recorded 3,793 first-time trustee sales during the period, an increase of 54.6 percent from the first quarter of 2007, and a 202 percent increase compared to the first quarter of 2006.

The top five ZIP codes in Los Angeles County for trustee sales were in Lancaster and Palmdale.

Tuesday, July 10, 2007

Homes Sold on the 1st Quarter of 2007

Van Nuys Zip Code 91401

Average Price $ 510,800
Homes Sold 34
Average Days on the Market 54
% of Asking Price/Sold Listing Price 97.3 %

Van Nuys Zip Code 91402

Average Price $ 454,500
Homes Sold: 34
Average Days on Market: 89
% of Asking Price/Sold Listing Price: 98.9%

Van Nuys Zip Code 91405

Average Price $ 491,200
Homes Sold: 33
Average Days on Market: 69
% of Asking Price/Sold Listing Price: 96.2%

Van Nuys Zip Code 91406

Average Price $ 521,900
Homes Sold: 48
Average Days on The Market: 85
% of Asking Price / Sold Listing Price: 97%

Saturday, May 05, 2007

VIDEO

Townhome For Sale Located at 13102 1/2 Dronfield, Sylmar CA 91342n


VIDEO LISTINGAlberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant
http://www.granadahills.kwrealty.com  Real Estate News, Mortgages, Trends



Wednesday, May 02, 2007

Homes Sold in Tarzana Woodland Hills and West Hills on First Quarter of 2007

1st Quarter of 2007

Tarzana

New Listings 250
Sold Listings 49
Avg Listing Price $993,161
Avg Sold Price $755,424
Days on The Market 73


Woodland Hills

New Listings 475
Sold Listings 119
Avg Listing Price $872,209
Avg Sold Price $796,217
Days on The Market 69


West Hills

New Listings 218
Sold Listings 63
Avg Listing Price $724,163
Avg Sold Price $640,853
Days on The Market 70


Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant
http://www.granadahills.kwrealty.com  Real Estate News, Mortgages, Trends


Friday, April 13, 2007

Homes Sold in Arleta Canoga Park and Encino First Quarter of 2007

San Ferndando Valley Statistics

For the 1st Quarter of 2007

ARLETA

Listings: 134
Average Listing Price $ 533,318
Homes Sold: 18
Average Sold Price $ 493,466
Average Days on The Market: 83

CANOGA PARK

Listings: 200
Average Listing Price $ 472,831
Homes Sold: 27
Average Sold Price $ 427,494
Average days on the Market: 97

ENCINO

Lisitings: 338
Average Listing Price $ 1,082,961
Homes Sold: 59
Average Sold Price $ 915,500
Average Days on the Market : 62

Alberto Pacheco
Realtor Calbre Lic 01200694
818 481 9211
Keller Williams Porter Ranch
Real Estate Consultant
http://www.granadahills.kwrealty.com  Real Estate News, Mortgages, Trends



Thursday, February 22, 2007

Real Estate

Rates on 30-year mortgages fell this week to the lowest level in six weeks.

The mortgage company Freddie Mac reported on Thursday that 30-year, fixed-rate mortgages averaged 6.22% this week compared with 6.30% last week.

The decline was only the second since early December. It pushed rates to the lowest level since the 30-year mortgage was at 6.21% the week of Jan. 11.

Analysts said the drop reflected in part weakness in the housing industry, shown by a 14.3% plunge in construction of new homes and apartments in January. That decline pushed the seasonally adjusted annual rate of home building down to 1.408 million units last month, the slowest pace in nearly a decade.

"Market participants were concerned over how much drag the slowing housing market may have on economic growth," said Frank Nothaft, Freddie Mac's chief economist.

Freddie Mac's survey showed that other types of mortgage rates also fell this week.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, were at 5.97%, down from 6.03% last week.
Five-year adjustable rate mortgages slipped to 5.96% from 6.01% last week.

One-year ARMs dropped to 5.49% from 5.52% last week.
The mortgage rates do not include add-on fees known as points. Thirty-year, 15-year and five-year mortgages all carried a nationwide average fee of 0.5 point. One-year mortgages carried an average fee of 0.7 point.

A year ago, rates on 30-year mortgages stood at 6.26% while 15-year mortgages were at 5.89%, five-year adjustable rate mortgages averaged 5.96% and one-year ARMs were at 5.32%.

Tuesday, November 28, 2006

Real Estate: November 2006


Home prices post record drop in October

Median price sinks 3.5 percent from a year earlier, trade group see more price declines ahead.

November 28 2006

NEW YORK (CNNMoney.com) -- The price of existing homes sold in October fell for the third straight month and posted the biggest drop on record, an industry group said Tuesday, adding it expects weakness in pricing to drag on into next year.

The National Association of Realtors said that the median price of a home sold in October was $221,000, the same as in September, but down 3.5 percent from October 2005.

The previous record drop was a 2.1 percent decline in November 1990, the real estate group said. While month-to-month declines in home prices are not uncommon, year-to-year drops had been rare before the recent housing slump.

Last August was the first month in 11 years to see such a decline. September was originally reported as a record 2.2 percent drop, but a revision in those numbers put that price decline at 1.8 percent.

The weakness in home prices isn't likely to go away soon, according to Realtors spokesman Walter Molony. "We do expect we'll see prices stay below year-ago levels through the end of this year, and pick up in the first quarter of 2007," he said.

Pat Vredevoogd Combs, a Grand Rapids, Mich., Realtor and president of the trade group, said in a statement the the market has become a good one for buyers.

"With the exception of parts of the West, sellers are cutting their price enough to encourage sales," she said. A sharp drop in sales and prices in once-hot markets such as Washington D.C. and parts of Florida, coupled with improved sales in some lower-price markets in Texas, have driven median prices down 7 percent in the South.

But all four regions of the country posted a year-over-year decline in median prices. "A fourth of the nation - areas that had the biggest boom - is in a correction that will take longer to balance," she added.

By Chris Isidore Cnnmone.com

Monday, November 13, 2006

Real Estate

Bear market in housing futures

Trading in the Case Shiller indices say prices are heading down.

NEW YORK (CNNMoney.com) -- Home prices fell from July to August in seven of the 10 major housing markets covered by the S&P Case Shiller indexes. The composite index for all 10 cities fell 0.36 percent.

But prices are heading down a lot more, if the investment pros who trade in housing futures can be believed.

Housing Futures based on the Case Shiller housing futures are speculating that housing prices will drop.
City IndexAug 06 FuturesAug 07 Projectedchange

Boston
177.29
167.0
-5.8

Chicago
167.99
158.0
-5.9

Denver
140.27
132.0
-5.9

Las Vegas
234.78
217.4
-7.4

Los Angeles
273.80
256.0
-6.5

Miami
276.80
254.6
-8.0

New York
212.93
198.4
-6.8

San Diego
247.30
232.2
-6.1

San Francisco
217.23
204.0
-6.1

Washington, DC
248.08
230.0
-7.3

Composite
225.17
208.8
-7.3

Source: Tradition Financial Services Note: All cities were assigned a base of 100 in 2000. An index of 177.90 means prices have risen 77.9 percent since then.

Housing futures based on the Case Shiller indexes and traded on the Chicago Mercantile Exchange have predicted a decline in the 10 markets around the country of 7.3 percent from August 2006 to August 2007. Prices in all 10 cities are projected to fall.

The S&P CME Housing Futures and Options, launched this past spring, enable investors to hedge against a drop in the value of residential properties in the future or to bet that those values will go up.

Miami, according to the futures, will experience the steepest plummet at 8 percent, and prices in Boston, at minus 5.8 percent, will hold up the best.

"I've been poring over the data for a long time now, given the anecdotal information we've been reading about home prices," says Fritz Siebel, director of housing derivatives at Tradition Financial Services, an institutional brokerage that trades futures of the Case Shiller indices. "I think the latest price drops are significant. These are pretty big numbers."

One month does not a trend make but Siebel points out that because of the gap between contract signings and when the front door keys actually change hands, August prices reflect closing prices of sales initiated earlier in the year, when many believed the housing market was still truckin' along.

Since them, markets have probably fared worse. Says Siebel, "The underlying metrics of the market - inventory, rate of sales - have not cleared. I don't see it getting better soon."
Neither, it seems, do speculators.

If the predicted decline happens, however, it may not be as severe as the futures trading indicates. According to Robert Shiller, the co-creator of the indexes, there is a risk premium to be taken into account; at this point, more traders are interested in protecting themselves against loss than are interested in buying into a growing market. That imbalance drives down the futures prices.

In addition, the futures have been traded very thinly to date and the smaller the sample size, the greater is the margin for error. As the market in housing future trading expands, the accuracy of their predictive value should increase
Real Estate

Bear market in housing futures

Trading in the Case Shiller indices say prices are heading down.

NEW YORK (CNNMoney.com) -- Home prices fell from July to August in seven of the 10 major housing markets covered by the S&P Case Shiller indexes. The composite index for all 10 cities fell 0.36 percent.

But prices are heading down a lot more, if the investment pros who trade in housing futures can be believed.

Housing Futures based on the Case Shiller housing futures are speculating that housing prices will drop.
City IndexAug 06 FuturesAug 07 Projectedchange

Boston
177.29
167.0
-5.8

Chicago
167.99
158.0
-5.9

Denver
140.27
132.0
-5.9

Las Vegas
234.78
217.4
-7.4

Los Angeles
273.80
256.0
-6.5

Miami
276.80
254.6
-8.0

New York
212.93
198.4
-6.8

San Diego
247.30
232.2
-6.1

San Francisco
217.23
204.0
-6.1

Washington, DC
248.08
230.0
-7.3

Composite
225.17
208.8
-7.3

Source: Tradition Financial Services Note: All cities were assigned a base of 100 in 2000. An index of 177.90 means prices have risen 77.9 percent since then.

Housing futures based on the Case Shiller indexes and traded on the Chicago Mercantile Exchange have predicted a decline in the 10 markets around the country of 7.3 percent from August 2006 to August 2007. Prices in all 10 cities are projected to fall.

The S&P CME Housing Futures and Options, launched this past spring, enable investors to hedge against a drop in the value of residential properties in the future or to bet that those values will go up.

Miami, according to the futures, will experience the steepest plummet at 8 percent, and prices in Boston, at minus 5.8 percent, will hold up the best.

"I've been poring over the data for a long time now, given the anecdotal information we've been reading about home prices," says Fritz Siebel, director of housing derivatives at Tradition Financial Services, an institutional brokerage that trades futures of the Case Shiller indices. "I think the latest price drops are significant. These are pretty big numbers."

One month does not a trend make but Siebel points out that because of the gap between contract signings and when the front door keys actually change hands, August prices reflect closing prices of sales initiated earlier in the year, when many believed the housing market was still truckin' along.

Since them, markets have probably fared worse. Says Siebel, "The underlying metrics of the market - inventory, rate of sales - have not cleared. I don't see it getting better soon."
Neither, it seems, do speculators.

If the predicted decline happens, however, it may not be as severe as the futures trading indicates. According to Robert Shiller, the co-creator of the indexes, there is a risk premium to be taken into account; at this point, more traders are interested in protecting themselves against loss than are interested in buying into a growing market. That imbalance drives down the futures prices.

In addition, the futures have been traded very thinly to date and the smaller the sample size, the greater is the margin for error. As the market in housing future trading expands, the accuracy of their predictive value should increase
Real Estate

Bear market in housing futures

Trading in the Case Shiller indices say prices are heading down.

NEW YORK (CNNMoney.com) -- Home prices fell from July to August in seven of the 10 major housing markets covered by the S&P Case Shiller indexes. The composite index for all 10 cities fell 0.36 percent.

But prices are heading down a lot more, if the investment pros who trade in housing futures can be believed.

Housing Futures based on the Case Shiller housing futures are speculating that housing prices will drop.
City IndexAug 06 FuturesAug 07 Projectedchange

Boston
177.29
167.0
-5.8

Chicago
167.99
158.0
-5.9

Denver
140.27
132.0
-5.9

Las Vegas
234.78
217.4
-7.4

Los Angeles
273.80
256.0
-6.5

Miami
276.80
254.6
-8.0

New York
212.93
198.4
-6.8

San Diego
247.30
232.2
-6.1

San Francisco
217.23
204.0
-6.1

Washington, DC
248.08
230.0
-7.3

Composite
225.17
208.8
-7.3

Source: Tradition Financial Services Note: All cities were assigned a base of 100 in 2000. An index of 177.90 means prices have risen 77.9 percent since then.

Housing futures based on the Case Shiller indexes and traded on the Chicago Mercantile Exchange have predicted a decline in the 10 markets around the country of 7.3 percent from August 2006 to August 2007. Prices in all 10 cities are projected to fall.

The S&P CME Housing Futures and Options, launched this past spring, enable investors to hedge against a drop in the value of residential properties in the future or to bet that those values will go up.

Miami, according to the futures, will experience the steepest plummet at 8 percent, and prices in Boston, at minus 5.8 percent, will hold up the best.

"I've been poring over the data for a long time now, given the anecdotal information we've been reading about home prices," says Fritz Siebel, director of housing derivatives at Tradition Financial Services, an institutional brokerage that trades futures of the Case Shiller indices. "I think the latest price drops are significant. These are pretty big numbers."

One month does not a trend make but Siebel points out that because of the gap between contract signings and when the front door keys actually change hands, August prices reflect closing prices of sales initiated earlier in the year, when many believed the housing market was still truckin' along.

Since them, markets have probably fared worse. Says Siebel, "The underlying metrics of the market - inventory, rate of sales - have not cleared. I don't see it getting better soon."
Neither, it seems, do speculators.

If the predicted decline happens, however, it may not be as severe as the futures trading indicates. According to Robert Shiller, the co-creator of the indexes, there is a risk premium to be taken into account; at this point, more traders are interested in protecting themselves against loss than are interested in buying into a growing market. That imbalance drives down the futures prices.

In addition, the futures have been traded very thinly to date and the smaller the sample size, the greater is the margin for error. As the market in housing future trading expands, the accuracy of their predictive value should increase

Tuesday, November 07, 2006

Real Estate

Now is a Good Time to Buy a Home

Are housing consumers suffering from some form of "market psychosis"?During the recent boom years in 2003-2005, sellers were calling the shots -- dictating prices and terms to multiple bidders who were knocking down their doors in many markets."Today, with the real estate market slowing in many parts of the country, all the market fundamentals show that buyers are now in the driver's seat," said Jerry Howard, CEO of the National Association of Home Builders (NAHB).

"Consider the facts: prices are competitive, rates are low, the selection of homes is high in all price ranges and sellers are ready to bargain."So why are some prospective home buyers having second thoughts?

It appears emotions are overtaking common sense. For instance, many homeowners who are looking to sell and trade up to a better house are hesitating because the value of their current home may have dropped from peak levels.

"If my neighbor sold his house for $250,000 six months ago, why should I have to settle for $225,000 today?" But waiting out the market to recoup a $25,000 "loss" could prove to be a poor decision.

While the value of the buyer's house may have fallen, that so-called loss has probably already been more than offset by a reduction in the price of the home he is thinking about buying.

Furthermore, by waiting, he may lose out on the price advantage that currently exists.First-time home buyers who choose to "play it safe" and keep renting are essentially postponing the opportunity to build household wealth.

Currently, with rental vacancy rates tightening, they can probably expect to see an increase in the rent they pay. No one can accurately predict the peaks and valleys of the housing market.

If you try waiting for the absolute best deal, you could end up literally waiting for years, missing out on the opportunity to become a homeowner while prices are moderating.

Though local housing markets periodically adjust according to overall economic conditions, over the long term real estate has consistently appreciated. On a national level, home appreciation has historically risen 5-6 percent annually.

At that rate, the value of a home doubles every 13 years. Not only is homeownership a stepping stone to a future of financial security, it provides a permanent place to call home and enormous personal satisfaction. In today's housing market, the real risk is in waiting to buy a home.

We know that interest rates are low today. We know that home prices are leveling off and even down in some markets. We know that there are plenty of homes on the market to choose from. We know that sellers are willing to bargain. And we know that builders are willing to offer attractive incentives to get your business.Any or all of these favorable variables could change for the worse six months from today.

Alberto Pacheco
818 481 9211
Keller Williams Porter Ranch
www.stoppayingrentinla.com
My Email

Friday, November 03, 2006

Real Estate

Homeowners with ARMs are optimistic

Homeowners with adjustable-rate mortgages worry about rising interest rates, but most believe that they will be able to refinance their loans if necessary, according to a study released today. A survey of homeowners conducted for San Francisco-based Wells Fargo & Co. found that about 1 in 7 respondents had an adjustable-rate mortgage.

An ARM is a mortgage whose interest rate is typically tied to a short-term security such as one-year Treasury bills or the London interbank offered rate, or Libor. The borrower's payments change over time with the adjusting interest rate.As home prices rose during the recent housing boom, an increasing number of home buyers turned to ARMs to purchase homes.

The reason: ARM rates were lower than those for traditional 30-year fixed mortgages. Lenders also devised ARM variations that gave borrowers even lower monthly payments by allowing deferment of principal and/or interest.Over the last year, fixed and adjustable mortgage rates have crept higher. Mortgage company Freddie Mac reported last week that the interest rate on 30-year, fixed-rate mortgages averaged 6.40% in the most-recent survey period.

A year earlier, the rate was 6.15%. The Wells Fargo study found that nearly 80% of homeowners with ARMs said they were concerned about rate increases. But more than half said they believed that they could refinance their loans. And about 20% said they were prepared for rate adjustments and didn't plan any changes.

Last week, the Mortgage Bankers Assn. reported that the refinance share of mortgage applications increased to 45.6% from 45% the previous week. Wells Fargo's third annual study also found that homeowners expected their properties to appreciate, although they apparently were aware that price increases were slowing.

About 10% said they expected their home values to increase a lot, 53% said values would increase "a little," and 27% predicted they'd stay the same. The rest expected a decline or weren't sure. The survey of more than 1,300 homeowners was conducted by Media, Pa.-based ICR. The margin of error was about 3 percentage points.

From Times Staff and Wire Services

Wednesday, October 25, 2006

Real Estate

Home prices: 1st drop in 11 years

Sales slow, prices hit by second biggest year-over-year drop on record; surge of homes for sale seen keeping prices weak.
By Chris Isidore, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- Home sales slowed and a key measure of prices fell for the first time in 11 years last month, spurred by the biggest glut of new homes on the market in more than a decade, an industry group said Monday.

The National Association of Realtors report on existing home sales showed that the median home price in August was $225,000, down 1.7 percent from a year earlier.
More on housing weakness

More home markets 'extremely' overvalued

Still rising prices and interest rates leave dozens of markets in dangerous territory, according to a new report. (more)

Foreclosures spiked in August

Rising payments on adjustable-rate mortgages contribute to 53% jump in foreclosures. (more)

Sharp home price pullback

Government index shows the largest quarter-to-quarter fall off in home price increases in three decades. (more)

Getting real about the housing bubble

Fortune's Shawn Tully dispels four myths about the future of home prices. (more)

Quick Vote
What are housing prices doing in your area?
Rising
Falling
Stable
or View results

It was the first year-over-year decline in median prices since April 1995, when that measure slipped only 0.1 percent. And it was the biggest year-over-year drop since the record 2.1 percent decline recorded in November 1990, when the nation was in recession.

While month-over-month declines in prices are not uncommon, year-over-year decreases in prices are a more serious sign of a slumping housing market. Even in other recessions, home prices generally have risen year-over-year on a national basis. The median price is the point at which half the homes sell for more and half sell for less.

The decline in home prices follows a period of record sales and very strong sales gains up through the end of 2005. The average price of a home in 2004 was up 9.3 percent from the previous year, and last year the full-year price average was up 12.4 percent.

The downward pressure on prices came from the record inventory of homes on the market in August. The group said there were 3.9 million homes on the market, up 38 percent from a year earlier. That gave the market a 7.5-month supply of homes, also up sharply from the 4.7-month supply available in August 2005, and the average 4.3-month supply throughout 2004.

The last time the group estimated a 7.5 month supply was April 1993. The report also showed the pace of sales essentially leveling off, slipping to an annual pace of 6.30 million in August from a revised July reading of a 6.33 million rate. While that's down just a bit from July, the pace of sales is down 12.6 percent from a year earlier.

Economists surveyed by Briefing.com had forecast that sales would slow to a 6.20 million pace in August. The group's report also showed the average price, which is typically higher than the median price, slipped 1.5 percent from a year ago to $271,000 in August.

David Lereah, the trade group's chief economist, said the relatively small drop in sales in August suggested that housing has cooled to a more sustainable pace, although he conceded the weakness in prices is likely to continue.

"We do expect an adjustment in home prices to last several months as we work through a buildup in the inventory of homes on the market," he said in the group's statement.
Mortgage rates have come down in recent weeks, with the average 30-year fixed rate mortgage now at 6.4 percent, according to mortgage financing firm Freddie Mac (Charts).

That's down from 6.79 percent in early July. The drop in rates, which reduces the cost of home ownership, won't necessarily show up in existing home sales figures for several months, though.

But some in the industry say lower mortgage rates won't be enough to revive the sales market, which hit its ninth record in 10 years in 2005. Sellers also will have to start reducing prices to get sales back on track.

"In some areas home sellers are not making sufficient adjustments in their listing price, so their homes are staying on the market and contributing to the buildup in inventory," said Thomas Stevens, a realtor in Vienna, Va., and the president of the trade group.

Existing home sales is not the only portion of the real estate market to show weakness.

New home sales and prices for new homes have fallen sharply as well, with many of the nation's leading builders, including KB Home (Charts), Lennar (Charts), Toll Brothers (Charts) and Hovnanian (Charts), lowering guidance on home sales in recent weeks, reporting lower prices and excess supply of homes on the markets.

The government report on new home sales in August is due Wednesday. While that's a fraction of the overall market, the new home sales report is closely watched as a leading indicator of the market since it's based on sales when contracts are signed, not on closings, which are often months later.

More home markets 'extremely' overvalued

Price drops seen for 10 top housing markets

Foreclosures spiked in August

More on the real estate market

Tuesday, October 24, 2006

Real Estate

Builders to buyers: Take this house, please!
The once-hot housing market's about-face has created amazing incentives for buyers. What are you waiting for?

By Jean Chatzky, Money Magazine editor-at-large

How would you like a $10,000 gift certificate for Pottery Barn? A $30,000 in-ground swimming pool - installed? The chance to toss back a few drinks with rocker John Legend? These and many other fabulous prizes can be yours if...you buy a house!

That's right, Bob Barker. After years of soaring prices, in the past few months the real estate market has dropped faster than most people thought it would, even in markets where most people thought it wouldn't. Home builders, mortgage lenders and even some enterprising individual sellers have been racking their brains to come up with tantalizing incentives to get potential buyers to the closing table and to convince top brokers to work with them.

As buyer's markets go, this is shaping up to be a good one - as long as you know how to play it to your advantage.
But gimmicks like new pools and mingling with rock stars are a distraction, says Mark Zandi, chief economist of Moody's Economy.com. If you're truly savvy about selecting and bidding on a home, you may be able to do better, he says. Much better.

Home inventories have gone skyward in the past year. In August (the most recent month for which data are available) there were 4 million homes on the market in the United States, a million more than at the same point in 2005. Combine that with the boost in interest rates and you have a lot of nervous sellers.

"Until now sellers didn't want to cut their prices. They were much more willing to provide an incentive - refinish the deck, seal the driveway, help with the financing, anything but cut the price," says Zandi. That's because incentives are cheaper for the seller in most cases.

Knocking 5% off a $300,000 home, for example, costs $15,000, but giving away that Pottery Barn shopping spree costs less and sounds sexier.

Right now, however, there's enough inventory that sellers are starting to do both: lower prices and provide incentives. This sharp change is not happening at all times in all markets, Zandi says, and only by knowing what kinds of freebies are being doled out can you jump on the trend and score a better deal (and maybe a new pool too). Here's what to do.

Hit the Incentive Piñata

It makes sense that people selling on their own are often quick to offer incentives instead of dropping the price. Many have trouble coming to grips with the fact that their home is worth less than they thought it would be, so they resist cutting the price until absolutely necessary.

List: See forecasted declines for largest U.S. markets

Instead they offer to pay your closing costs or to leave the Sub-Zero behind. Let your eyes - and the inspector you hire to check the place out - guide your requests. If the house needs painting, new windows or a fresh buffer of trees, now's the time to ask. And ask for a price cut to boot. Builders and developers use incentives first for a different reason: Reducing the price on one house in a neighborhood could hurt the prices of the remaining homes (and it peeves buyers who already paid full price).

Anyone shopping for a newly constructed home has the most to gain. After drying up during the boom, explains David Seiders, chief economist for the National Association of Home Builders, incentives are back in force. A recent survey of NAHB members revealed that 55% of builders are offering more amenities, 42% are paying closing costs and 26% are absorbing points on mortgages.

In addition, the survey showed that 80% are encountering buyer resistance to the price of homes, the most since the early 1990s. As a result, nearly 45% of builders are trimming prices.

Improve Your Mortgage

Buyers are also getting incentives for taking out mortgages, says Anthony Hsieh, president of LendingTree.com. For example, 20% of home builders are using "buy-down" programs, in which they buy down your mortgage by two percentage points in year one and one point in year two.
That can, in fact, be a great deal. But tread carefully. Some other trendy mortgage offers are a little too much like credit cards with teaser rates attached. They're cheaper in the early years than what you might qualify for, but they escalate quickly.

"Buyers have to be very careful not to be swept off their feet to take the wrong product," says Hsieh. "You don't want to get blinded into the wrong mortgage." The key to knowing whether the loan being offered to you is a good deal or a bummer is to run the numbers on a few scenarios, says Keith Gumbinger of HSH.com, a publisher of mortgage information. You want to know what your actual payment will be not just in years one and two but for as many years as you're planning to live in the house.

Gumbinger recommends watching financing offers for early-termination fees and prepayment penalties. A lender's goal in offering subsidized financing is to keep you there until the payment escalates - and beyond - which often means making it expensive for you to get out.

Look for Alternative Cuts

The buyer's market has created a market for something that's not usually on the list of negotiable factors in the sale of a home: title insurance. (It's rarely on the list of comprehensible factors either, but that's another story.) That is changing thanks to Titleinsurance.com, a new Web site that operates kind of like a LendingTree.com for title insurance.

Consumers go to the site, fill in information about their transaction and get a handful of quotes from title insurers in the county. The site currently has some 325 title insurers signed up to bid and is limiting itself to five per county. The service is nonbinding and is free to consumers. Revenue comes from title insurers who pay, essentially, for leads.

How much money you will save depends on the competition in your area, but with title insurance averaging less than 0.5% of your loan but sometimes costing as much as 1.5%, the gap can be a couple thousand dollars or more

Monday, October 23, 2006

Real Estate


Buy my house, please!

As the market cools, it will take more work to get that 'For Sale' sign out of your front yard. –

To say that it's been a seller's housing market is the understatement of the year. Homeowners looking to sell in most parts of the country haven't had to wait around very long for a suitable offer, and those in the best markets have seen their homes swooped up in a matter of days, even hours.

In early 2003, in fact, 21 percent of all houses went into contract less than one week after going on the market, according to the National Association of Realtors (NAR). On average, houses sold in just five weeks – nearly half the time it took throughout the 1990s.

"I believe this may be our best year ever," said David Hemenway, a realtor in Cottage Grove, Ore., who's been in the business since 1968. On the other side of the country in Sebring, Fla., realtor Chip Boring is enjoying a record year.
Yet, both are aware that great times can't last forever. "Up until the last 2 1/2 years the average time on the market was anywhere from 180 days to 210 days," Boring said. And Hemenway recalls the early 1980s when his listings lingered on the market, sometimes for years.

As interest rates creep up, buyers' budgets creep down and markets return to more normal levels, sellers will discover that it takes a little more work (and patience) to unload their homes. Many already have. While there is little you can do to change the laws of supply and demand, you have some control over whether your house sits or sells.

Here are the most common reasons houses don't sell, in order of importance.

The price is not right

Even in the best of markets, setting your price too high is a mistake -- unless you really don't want to sell your house.
"Starting too high is the worst thing you can do," said Hemenway.

Why? Because your greatest opportunity for selling your house is immediately after it goes on the market. That's when the majority of serious buyers will see the house.
"Even if you lower the price to reflect the market, you'll have fewer people coming through than if you'd just priced it right to begin with," said Hemenway.

In fact, it's not until after you bring the price down below the market – something few sellers want to do – that interest will pick up again.

To make matters worse, say real estate agents, the longer a house sits the harder it is to sell. "Everyone thinks there must be something wrong with the house if it hasn't sold," said Boring, adding that for this reason he won't take on a listing if the seller insists on asking more than the house is worth.

To drum up new interest among buyers, sellers sometimes pay for extra advertising or offer to, for example, pay for closing costs as a way to get buyers' attention. "In markets where people don't have a lot of cash, paying for closing costs or buying down interest rates with points up front can put you at a huge advantage," said Ron Phipps, a realtor in Warwick, R.I.

The house is in the wrong place

When markets are good, buyers are more willing to buy on the outskirts of an area or turn a blind eye to busy streets, bad views and other problems. But when markets cool down, it's these spots that suffer the most, said Hemenway.

Short of moving the house, there is not much you can do if it is in the wrong location. But while in the house you can take care to make sure you don't over-improve your property relative to the ones around it.

"If you have a $300,000 house in a neighborhood of $100,000, be prepared to lower the price or let it sit," said Boring.

Buyers can't get past the front door

Realtors say that getting buyers to take a look inside a house is the biggest challenge of selling a house. Once they've stepped through the door buyers are more likely to consider a place.
"I recently sold a house that from the front was not very inspired," said Phipps. "The buyers came to the open house only because they needed to kill time, but once inside they were interested."

For this reason, a little time and money spent on curb appeal will go a long way. Trimming the grass, washing the windows and planting a few flowers may be all it takes.

In the case of houses whose best features are inside or out back, Phipps recommends taking good interior pictures and putting 360-degree tours online.

Sellers sometimes get buyers to look past their homes' imperfections with creative extras. "I've seen sellers offer decorating allowances, and pay for cleaning service and landscaping," said Phipps. "Several years ago a seller in the bakery business offered to bring the buyer a different cake every month."

Too much chintz and tchotchkes

Less is more when it comes to attracting buyers.
"Put all of those pictures of your family and other personal treasures away," said Sheryl Gregory, a broker in Wynthrop, Maine. "It distracts buyers and makes it harder for them to picture themselves in the house."

She also recommends taking down distracting curtains and putting on a fresh coat of paint. "Buyers sometimes get scared if they wander through a house and think they're going to have to do a lot of painting," she added.

According to Sarah Max cnn/money
Real Estate


Buy my house, please!

It's been a seller's housing market is the understatement of the year. Homeowners looking to sell in most parts of the country haven't had to wait around very long for a suitable offer, and those in the best markets have seen their homes swooped up in a matter of days, even hours.

In early 2003, in fact, 21 percent of all houses went into contract less than one week after going on the market, according to the National Association of Realtors (NAR). On average, houses sold in just five weeks – nearly half the time it took throughout the 1990s.

"I believe this may be our best year ever," said David Hemenway, a realtor in Cottage Grove, Ore., who's been in the business since 1968. On the other side of the country in Sebring, Fla., realtor Chip Boring is enjoying a record year.
Yet, both are aware that great times can't last forever. "Up until the last 2 1/2 years the average time on the market was anywhere from 180 days to 210 days," Boring said. And Hemenway recalls the early 1980s when his listings lingered on the market, sometimes for years.

As interest rates creep up, buyers' budgets creep down and markets return to more normal levels, sellers will discover that it takes a little more work (and patience) to unload their homes. Many already have. While there is little you can do to change the laws of supply and demand, you have some control over whether your house sits or sells.

Here are the most common reasons houses don't sell, in order of importance.

The price is not right

Even in the best of markets, setting your price too high is a mistake -- unless you really don't want to sell your house.
"Starting too high is the worst thing you can do," said Hemenway.

Why? Because your greatest opportunity for selling your house is immediately after it goes on the market. That's when the majority of serious buyers will see the house.
"Even if you lower the price to reflect the market, you'll have fewer people coming through than if you'd just priced it right to begin with," said Hemenway.

In fact, it's not until after you bring the price down below the market – something few sellers want to do – that interest will pick up again.

To make matters worse, say real estate agents, the longer a house sits the harder it is to sell. "Everyone thinks there must be something wrong with the house if it hasn't sold," said Boring, adding that for this reason he won't take on a listing if the seller insists on asking more than the house is worth.
To drum up new interest among buyers, sellers sometimes pay for extra advertising or offer to, for example, pay for closing costs as a way to get buyers' attention. "In markets where people don't have a lot of cash, paying for closing costs or buying down interest rates with points up front can put you at a huge advantage," said Ron Phipps, a realtor in Warwick, R.I.

The house is in the wrong place

When markets are good, buyers are more willing to buy on the outskirts of an area or turn a blind eye to busy streets, bad views and other problems. But when markets cool down, it's these spots that suffer the most, said Hemenway.

Short of moving the house, there is not much you can do if it is in the wrong location. But while in the house you can take care to make sure you don't over-improve your property relative to the ones around it. "If you have a $300,000 house in a neighborhood of $100,000, be prepared to lower the price or let it sit," said Boring.

Buyers can't get past the front door

Realtors say that getting buyers to take a look inside a house is the biggest challenge of selling a house. Once they've stepped through the door buyers are more likely to consider a place.
"I recently sold a house that from the front was not very inspired," said Phipps. "The buyers came to the open house only because they needed to kill time, but once inside they were interested."

For this reason, a little time and money spent on curb appeal will go a long way. Trimming the grass, washing the windows and planting a few flowers may be all it takes.

In the case of houses whose best features are inside or out back, Phipps recommends taking good interior pictures and putting 360-degree tours online.

Sellers sometimes get buyers to look past their homes' imperfections with creative extras. "I've seen sellers offer decorating allowances, and pay for cleaning service and landscaping," said Phipps. "Several years ago a seller in the bakery business offered to bring the buyer a different cake every month."

Too much chintz and tchotchkes

Less is more when it comes to attracting buyers.
"Put all of those pictures of your family and other personal treasures away," said Sheryl Gregory, a broker in Wynthrop, Maine. "It distracts buyers and makes it harder for them to picture themselves in the house."

She also recommends taking down distracting curtains and putting on a fresh coat of paint. "Buyers sometimes get scared if they wander through a house and think they're going to have to do a lot of painting," she added.

According to Sara Max CNN/MONEY

Thursday, October 19, 2006

Real Estate

More Homeowners Going Into Default

A housing market slowdown combined with rising payments on adjustable-rate loans is leading to a sharp hike in notices from lenders.

By David Streitfeld and Martin Zimmerman, Times Staff WritersOctober 19, 2006

The number of Californians who are significantly behind on their mortgage payments and at risk of losing their homes to foreclosure more than doubled in the three months ended Sept. 30, providing the latest evidence of trouble in the housing market, figures released Wednesday show.Lenders sent out 26,705 default notices — the first step toward a foreclosure — during the July-to-September period, up from 12,606 during the same quarter in 2005, according to DataQuick Information Systems.

Defaults are still well below their peak level of 59,897, which came in the first three months of 1996, as the state's last housing slowdown was ending. But the report shows that the slumping housing market is taking a toll on more homeowners especially those with mortgages that offer low initial payments at the cost of higher bills down the road."We were putting buyers in homes with loans they could not afford to sustain over the long haul," said Bob Casagrand, a San Diego real estate agent. "If you're a marginal buyer with an adjustable mortgage, you're rolling the dice on the future."Foreclosures are rare when the housing market is strong and prices are rising. In those conditions, borrowers can usually sell their homes quickly, or they have enough equity to allow them to refinance their loans. But in another disquieting sign, DataQuick reported that 19% of the owners who went into default earlier in the year actually lost their homes to foreclosure in the third quarter, more than triple the 6% in 2005.Mortgage payments are such a big part of the household budget for many Californians that it takes only a little trouble to fall behind.

For Stacey and Mike Broussard, all it took was an exceptionally rainy spring. That meant Mike Broussard was laid off from his job as a heavy equipment operator."I tried to juggle things around — we were eating a lot of peanut butter and a lot of beans — but it got out of control," said Stacey Broussard, 39.She was in charge of the bills and each month would pay what she could of the $1,300 the lender expected for the mortgage on their home northeast of San Francisco in Antioch. At the end of August, she said, she tried to make another partial payment, but the lender said anything less than a full payment would lead to a default.

One day her husband said she had a notice from the post office to pick up a special letter. She knew what it was, but he didn't. "I was trying to fix it before I told him," she said. "That was the worst moment."Mike Broussard is now employed again, and the couple — who are lucky enough to have equity in their home — are working with TerraCotta Group, a Manhattan Beach real estate and mortgage company that specializes in helping delinquent homeowners get out of default.

When she started TerraCotta 2 1/2 years ago, company President Tingting Zhang said two or three people would come through her door on the typical day looking for help. Now, it's 30 to 40. "And we haven't reached the peak yet," said Zhang, who believes that the combination of rising interest rates and high-risk mortgages could spell defeat for a rising number of borrowers.Just Wednesday morning, Zhang dealt with a Lancaster resident who had taken out a $310,000 adjustable-rate mortgage with a starter interest rate of 5.4% and a monthly payment of $1,050. In July, the interest rate climbed to 8.5% and the monthly payment jumped to $2,306. A year-end adjustment will send the monthly payment to $2,744."The borrower is totally unprepared for this rate adjustment," Zhang said.The fallout is starting to show up in the workload at credit counseling outfits.

Gary Aguilar, counseling manager for Springboard, a nonprofit credit counseling agency in Riverside, said the amount of mortgage-related work he and his staff were doing had "pretty much tripled this year."The softening of the housing market was the trigger, as new homeowners with little or no equity in their properties found themselves unable to sell at a high enough price to pay off the balance of the loan and still cover all of the sale expenses."Whereas a year ago, people could have put their house on the market and sold their way out of the problem, now they're stuck with the house," said Richard Pittman, housing services coordinator for credit counselor ByDesign Financial Solutions in Los Angeles

Provided by Los Angeles Times