La Jolla, CA---Southern California home sales last month shot up more than usual from May to the highest level for any month since June 2010, when the market got its last big boost from homebuyer tax credits. Sales of lower-cost homes, driven by investors and first-time buyers, and even high-end sales continued to outshine traditional move-up activity in middle price ranges, a real estate information service reported.

A total of 20,532 new and resale houses and condos sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in June. That was up 11.6 percent from 18,394 in May but down 14.0 percent from 23,871 in June 2010, according to San Diego-based DataQuick.

On average, sales between May and June have risen 6.2 percent since 1988, when DataQuick's statistics begin. June sales have varied from a low of 18,032 in 2008 to a high of 40,156 in 2005. Last month’s sales count was 26.1 percent below the June average of 27,772. Among all months, June has had the highest number of sales most often – in eight of the past 23 years.

La Jolla, CA.--The number of California homes that went into foreclosure fell to a four-year low last quarter, the result of a more stable housing market as well as policy changes in the mortgage servicing industry, a real estate information service reported.

A total of 56,633 Notices of Default (NoDs) were recorded at county recorders offices during the April-to-June period. That was down 17.0 percent from 68,239 for the prior quarter, and down 19.2 percent from 70,051 in second-quarter 2010, according to San Diego-based DataQuick.

Last quarter's activity was the lowest for any quarter since 53,493 NoDs were recorded in the second quarter of 2007. It was well below half the record 135,431 default notices recorded in the first quarter of 2009.

"A lot of theories are being floated as to why the numbers are down. Bank policy changes. Legal challenges. Politics. Holding back temporarily so as not to flood the market. The fact of the matter is that no one really knows, outside of lending and servicing industry insiders. One thing is certain: Homeowner distress spreads fastest when home price declines are steepest. And it now appears likely that, barring some new economic shock, the worst of the price declines are behind us," said John Walsh, DataQuick president.

The statewide median sales price was $250,000 in the second quarter this year, down 7.4 percent from $260,000 a year earlier. In first-quarter 2009, when foreclosure activity peaked, the $227,000 median was down 39.5 percent from $375,000 a year earlier. The latter decline reflected not only steep home-price depreciation but very weak high-end sales amid robust sales of low-cost inland foreclosures.

10. You priced along with other homes listed for sale, rather than homes that had actually sold.

9. Despite the fact values have fallen all over town and continue to decline, you believe this doesn’t apply to your home.

8. You priced your home based on how much you spent improving it.

7. You priced your home based on an appraisal from well over 3 months ago.

6. You believe your house is “unique” and different from all other homes, despite its similarities in size, age, condition and location to other homes. You believe your homes “uniqueness”  warrants a higher price than all those other homes.

5. You sincerely believe that if you just stay on the market for long enough,  eventually that one “right” buyer will come along, fall in love with your house and pay whatever you’re asking.

4. Despite many showings, no one has made an offer on your home.

3. Your home has been on the market for a very long time..6 months..12 even.

2. Your Realtor didn’t agree with your pricing, or worse -  the original Realtor wouldn’t list your home at “your” price so you had to search for someone else who would.

1. You are getting NO SHOWINGS. This is the number one sign that your home is overpriced. If its been marketed, but no one is interested in coming inside the market has already rejected your home at its current price.

Banks seized 421,212 homes in the first six months of the year, down from 529,633 between January and June last year, foreclosure listing firm RealtyTrac Inc. said Thursday.

The decline reflects lenders taking longer to move against homeowners who have fallen behind on their mortgage payments. The banks are working through foreclosure documentation problems that first surfaced last fall and an ensuing logjam in some state courts. Lenders also have put off on taking action against delinquent borrowers as U.S. home sales have slowed this year.

As the processing delays mount, however, so has the backlog of potential foreclosures _ homes that otherwise would have been repossessed by lenders this year.

RealtyTrac estimates that 1 million foreclosure-related notices that should have been filed by banks this year will be pushed to next year. The filings include notices for defaults, scheduled home auctions and home repossessions _ warnings that can lead to a home eventually being lost to foreclosure.

Real estate experts and agents say the uptick in mega-estate sales may portend a turnaround in the broader housing market.

A diamond-encrusted lining is emerging in Southern California's cloudy real estate market.
At least a half-dozen Westside mega-estates have sold for more than $20 million so far this year — creating a deafening buzz in local realty circles. Only a few home sales in other Southland counties have surpassed the $20-million mark.

Annualized rate of home sales increases from 4.730 million in April 2011to 4.860 million in May 2011.  Average prices of homes sold increased 1.5 percent from April 2011 to May 2011.

June 8, 2011 – The REAL Trends Housing Market Report showed that the combination of new and existing home sales in May 2011 increased from 4.730 million to 4.860 million despite unfavorable news in general economy.  On a year over year basis May 2011 home sales declined 8.6 percent compared to May 2010 rate of 5.318 million.

Mortgage rates remained mostly unchanged this past week, with the 30-year, fixed-rate mortgage remaining 4.5% for a second week.

Even still, disappointing economic news kept rates well below 5% and significantly lower than the 6% mark that defined more stable economic times. The U.S. has not seen mortgage rates higher than 6% since late 2008.

Freddie Mac said the 15-year, fixed-rate mortgage rose to 3.69% this past week from 3.67% a week earlier, but down from 4.13% a year earlier.

In addition, the five-year, Treasury-indexed hybrid adjustable-rate mortgage averaged 3.25%, down from 3.27% a week earlier and the 5-year ARM averaged 3.84%. The one-year, Treasury-indexed ARM hit 2.99% this past week, up from 2.97% a week earlier.

Bankrate said the traditional 30-year mortgage fell to 4.66% from 4.71% the prior week. Meanwhile, the 15-year, fixed-rate home loan slipped to 3.83% from 3.86%, and the Jumbo 30-year, fixed-rate mortgage edged up to 5.23%. Adjustable-rate mortgages were also mixed with the average five-year ARM falling to 3.36% and the seven-year ARM growing to 3.65%.

"Disappointing economic news, such as continued weak housing numbers, and ongoing nervousness about Greece led government bond yields and mortgage rates lower," Bankrate said. "Mortgage rates are closely related to yields on long-term government debt. Although Fed Chairman Ben Bernanke confirmed that bond purchases known as QE2 will end as scheduled this month, long-term interest rates remain at ultra-low levels due to the economic softness and overseas debt concerns."

Home prices in the U.S. rose 0.5% in the month of April, according to the FNC Residential Price Index.

The index increased for the first time since the withdrawal of the homebuyer tax credit in April 2010, despite nation's economic malaise. Prices in April shrugged off downward pressure from a continued high number of foreclosures.

The FNC 10-MSA composite showed a 0.4% increase from March. The 30-MSA increased 0.6% in April. Home prices nationwide remained 6.4% lower than one year ago.

These results are contrary to what others may believe are continued price deteriorations, FNC analysts said. Listing activities increased more than 65% with the arrival of the summer home-buying season. The difference between the initial listing price and the final sales price dropped 4% in the first quarter of 2011 from a 6.7% difference at the end of 2010.

The amount of time these distressed properties spent on the market dropped to 2.5 months in April from four months in October 2010.

Home prices in 17 markets went up at an average rate of 2.5%.

"Despite downward price pressure from high volumes of foreclosure sales, home prices continue to gain traction in April after remaining relatively unchanged in March," FNC said.

The Move Inc. Investor survey, which surveyed real estate investors, suggests that local markets will be heating up with renewed investor interest and activity. Compared to a year ago, 62 percent of investors are paying more attention to home values in their local markets—only 43.5 percent say it will be harder to find bargains and 41.5 percent expect it to be easier to sell their properties in the next six months.

Meanwhile, 22 percent of investors are bullish and expect prices to rise in the next six to 12 months, and 53.5 percent expect prices to remain relatively the same. Twenty-three percent expect prices to fall in the next six to 12 months.

The Move Investor survey also found that investors are prepared to compete vigorously with traditional first-time homebuyers for hot deals. Two-thirds of investors (65.5 percent) said they expect that first-time buyers’ problems getting a mortgage will make it easier for investors to compete for properties. One in five investors (18.5 percent) say they’ll be cash-only buyers, a strategy that’s out of reach for most first-time buyers. Eight out of 10 (80.5 percent) expect cash discounts from sellers.

Today’s investors – not stereotypical, deal-driven flippers

Contrary to the tactics used by “flippers,” 50 percent of today’s real estate investors plan to hold their properties for five-plus years. Only 11 percent expect to sell within 12 months of purchase. Two-thirds (67.5 percent) say they’re investing for the long term.

Fifty-nine percent (59 percent) told Move they’re new to real estate investing, with 33.5 percent considering their first investment purchase and 8.5 percent in the process of buying and selling their first investment property. Another 17 percent said they just completed their first transaction and plan to make more. Only 36.5 percent have experience in more than one property transaction.

When it comes to repairs and maintenance, 56.5 percent of investors say the repair and maintenance of investment property has not been difficult. Moving forward, 42 percent plan to invest their own time and energy to improve, repair and maintain their properties. The rest said they’d hire a contractor for repairs (29.5 percent) or purchase move-in-ready properties (28 percent). The majority (65.7 percent), don’t expect repair costs to exceed 20 percent of the property’s purchase price.

“This data suggests today’s climate is hot for investing and is attracting a lot of new people that don’t fit the stereotypical deal-driven flippers that buy and sell properties quickly,” said Move, Inc. Chief Executive Officer Steve Berkowitz.

Investors combine cash and credit to snap up properties

While cash is king in many circles, 75.5 percent plan to combine cash and credit to purchase properties as they build their real estate portfolio. In fact, 59.5 percent plan to put less than half down on their next property purchase and they’ll finance the rest. Those planning to use more than 50 percent cash and finance the remainder account for 16 percent of today’s investors. Investors told Move the second most difficult challenge has been finding financing (57 percent).

“The fact that most real estate investors plan on combing cash and credit for their purchases goes against the conventional wisdom that investor transactions today are mostly cash-only sales,” says Berkowitz. “We were surprised to learn that 75 percent of investors are financing portions of their purchases. This suggests they’re seeing tremendous or once in a lifetime opportunities and may be tapping into credit or taking out second trusts on existing properties. The data also shows they’re expecting high returns to match the level of investment they’re making in an arena that is new to many investors.”

High risk leads to high ROI expectations

Based on the investments they’re making in today’s environment, real estate investors clearly expect high yield returns. Nearly half (48 percent) expect a profit of 20 percent or more from their property investments, a 4 percent annual rate of return over five years. Another 40 percent expect a profit of 10 percent, and only 6.5 percent expect a 5 percent or less return on investment. Half (50 percent) of today’s real estate investors plan to hold their properties for five-plus years.

Property investments gateway to homeownership for many

While the survey shows investors will outnumber traditional homebuyers three to one, nearly half (49 percent) plan to live in their investment property until it’s sold or turned into a rental property. Slightly more than half (56.5 percent) will put their investments to work as rental properties, and 28 percent plan to purchase vacation property that they’ll eventually sell. The Move Investor survey also found 30 percent of real estate investors are interested in buying retirement property as an investment.

“The survey suggests some first-time buyers may be looking at investing as a strategy to becoming homeowners,” Berkowitz said. “While today’s market is tough for some, it’s also motivating millions to take an unconventional approach and creatively search for new ways of entering the housing market.” 

Nationally, foreclosures represented 28% of sales in the first quarter of 2011, according to the Wall Street Journal.  How did our area fare?

As we look at the above table, we notice that only 6% of sold properties were foreclosures during Q1 on the Westside.  In a nation where the statistic shows almost 1 out of 3 homes sells in foreclosure, it is important to see that foreclosure sales only represent 1 out of 20 homes sold in Westside Los Angeles communities!  While national trends are important indicators, real estate is largely local. 

Nationally, foreclosures represented 28% of sales in the first quarter of 2011, according to the Wall Street Journal.  How did our area fare?

As we look at the above table, we notice that only 6% of sold properties were foreclosures during Q1 on the Westside.  In a nation where the statistic shows almost 1 out of 3 homes sells in foreclosure, it is important to see that foreclosure sales only represent 1 out of 20 homes sold in Westside Los Angeles communities!  While national trends are important indicators, real estate is largely local. 

More investors are bullish about home prices in the coming year and are beginning to aggressively hunt for residential real estate investments in their own backyards, according to a new survey conducted by Move Inc.

The firm's real estate investor survey found 22% of investors are bullish about home prices going up in the next six to 12 months, a slight uptick from prior periods. About 53.5% expect home prices to remain relatively the same.

However 22% is a much higher share of the market than expected, prompting Move Inc. to conclude in its survey report that "local markets may be heating up with renewed investor interest and activity."

Based on survey results, Move concluded 69% of investors believe they'll have an easier time finding investment properties in the future, while 43.5% believe it may be harder. Some 62% are paying more attention to local home values, with the expectation that it may be time to jump off the sidelines.

Even though first-time homebuyers are often considered the ones to watch when it comes to jump-starting a lagging housing market, 65.5% of the investors who responded to the Move survey said they expect first-time homebuyers to have trouble qualifying for mortgages in an era of heightened underwriting, making it easier for them to nab good deals.

About 18.5% expect to invest using cash-only, and 80.5% expect to receive cash discounts from sellers.

If you’re just getting started in the world of income producing property, here are 3 investment concepts you must become familiar with.  

The first is NOI or Net Operating Income. NOI is the amount of net income (after expenses) the property is producing on an annual basis. NOI is calculated by taking the gross rental income and subtracting the property’s annual operating cost. The gross income is the total rents collected plus any other income from laundry, parking, storage or other misc. sources. Your expenses are all the cost associated with maintaining the property on an annual basis, including taxes and insurance. Your mortgage payments (principal and interest) are not included as expenses in the NOI formula. Your mortgage payments are known as “debt service” and will change from investor to investor due to differing down payment amounts, interest rates, and loan terms.     

Understanding your property’s NOI is crucial to the calculation of your next investment term, the “cap rate”.  Cap-rates are used to determine the value of income producing property and are found by dividing the net operating income by the property’s cost. The cap rate is great for comparing the value of one income property to another.  

Typically any cap rate above 7 percent is considered a good investment, but obviously the higher the rate the better. As an interested buyer searching for properties, you should set a cap rate minimum based on what’s typically achieved for your area. Generally, the riskier the investments the higher the expected return …or rate. Higher cap rates are expected on older home and in less desirable areas.

ROI (return on investment) measures the annual return on the initial capital you invested. Your initial investment includes your down payment, closing cost, initial improvements and any other initial out of pocket cost associated with the property purchase. The calculation of ROI is slightly more complex than other financial measures and should be calculated using a reliable computer program or financial calculator.  ROI allows you to compare income producing property to other investment assets (stocks, bond, or alternative investments) and determine whether your money is invested in its highest and best use.  

Once you have made your offer to purchase and had it accepted, completed your home inspections, you are ready for the appraisal process.

Mortgage rates changed little in the past week, snapping a streak of weekly declines that had taken fixed rates to the lowest points of 2011, according to the latest survey from Freddie Mac.

While the 30-year fixed-rate mortgage rate ticked up to 4.50% in the week ended Thursday from 4.49% last week, still well below last year's 4.75% average, rates on 15-year fixed-rate mortgages ticked down to 3.67% from 3.68% the previous week and 4.20% a year earlier.

Are banks and distressed home sellers getting rooked on a massive scale in the booming short-sale arena — leaving hundreds of millions of dollars on the table for white-collar criminals?

A comprehensive new study estimates that they will lose more than $375 million this year when they sell undervalued houses to tag teams consisting of realty agents and investors. Worse yet, the trend appears to be growing at the rate of 25% a year.

CoreLogic, a large real estate and mortgage data research firm in Santa Ana, studied 450,000 short-sale transactions across the country during the last two years and offered these examples of how lenders are losing big bucks:

• A house in Kings Beach, Calif., was purchased near the height of the boom in 2005 for $530,000. On Oct. 28, 2009, it was sold for $247,500 to an investment group in a short sale — an arrangement in which the lender allows the delinquent owner to avoid foreclosure by selling to a third party at a price lower than the loan balance. Later that same day, the investors resold the house to a non-investor purchaser for $375,000. This produced a quick $127,500 profit — a 52% gain for the investment group in a matter of hours.

• A house in Gilbert, Ariz., sold for $400,000 in 2006. On March 2, 2010, it was bought in a short sale by investors for $220,000 and resold the same day for $267,500 — a gain of $47,500.

How do investors manage to turn such quick profits? Are they just super-sharp shoppers or is there something else going on? Law enforcement and banking industry experts say it's frequently fraud, and it works like this: Local real estate agents partner with investor groups. The agent's job is to spot borrowers in financial distress — usually people who are underwater on their mortgages, meaning they owe more than their homes are worth. They persuade the homeowners to sell to investors in a short sale at a low price. Then they contact the bank with the investors' short-sale offer.

Meanwhile, the agent finds legitimate buyers who are willing to pay more for the property, but the agent never presents their offers to the bank. To back up the investors' lowball offer, the realty agent produces an appraisal or a "BPO" — a broker price opinion of the distressed home's value that confirms the low valuation. The bank then sells to the investment group. After the closing, the investors sell the house to the legitimate purchasers at the higher price, and the realty agent and the investors split the profits.

According to the CoreLogic study, 65% of short sales that are resold within six months for profits of 40% or higher are "suspicious" — with a significant possibility the lender accepted a low payoff. Most of these transactions go undetected by the banks being defrauded, but some lead to prosecutions and convictions.

For example, Connecticut real estate agents Anna McElaney and Sergio Natera are awaiting sentencing hearings in July and October in connection with guilty pleas in federal court to short-sale bank fraud. According to the U.S. attorney's office in Connecticut, McElaney and Natera participated in a scheme in which Regions Bank, headquartered in Alabama, agreed to a $102,375 short sale on a house it financed in Bridgeport, Conn. The buyer was BOS Asset Management, an investment company controlled by Natera. Unknown to Regions Bank, however, listing agent McElaney had earlier received a signed purchase contract from a private buyer for $132,500. After closing at the lower price, BOS resold the property to the private buyer, yielding Natera and McElaney a fast $30,125 profit.

The original federal charges against the two agents alleged short-sale frauds on three other houses, including properties financed by Wells Fargo Bank and a mortgage unit of the global financial services firm Credit Suisse. The guilty pleas, however, solely involved the Regions Bank house in Bridgeport.

Though banks are the primary victims in short-sale scams, homeowners can be hurt as well. When distressed owners are pressured to sell to investor groups for less than the highest offer available, they can end up deeper in debt to the lender. In the majority of states where banks can pursue borrowers for mortgage balance deficiencies after foreclosure or short sale, homeowners may be subject to debt collection actions by banks. California does not permit lenders to demand payment of deficiencies from borrowers on mortgages used to acquire residences. However, refinancings may not be protected, according to legal experts.

But the bottom line here, as seen in the Connecticut guilty pleas, is that short-sale thievery is federal bank fraud. Realty agents and investors who participate in these schemes risk prison terms of up to 30 years, big fines plus restitution of the funds they stole.

Source - latimes.com

New York banker Frank Vanderlip was so captivated by the Palos Verdes Peninsula that he formed a syndicate of millionaires to buy up 16,000 acres of one of the original California ranchos in 1913 — sight unseen. The idea was to develop exclusive residences at Portuguese Bend with a country club, golf course, tennis courts, polo grounds and other luxurious touches on a coastline he knew was ripe for development.Vanderlip had another, more personal vision too. He felt that a hilltop at Portuguese Bend, which reminded him of the Italian coast, would be the perfect spot to build an estate for his family, one that would be copied from an ancient Roman villa.
By 1916, Vanderlip had completed just one home that "stood as the only visible fruition of the Palos Verdes Project," Augusta Fink writes in "Palos Verdes Peninsula: Time and the Terraced Land." The Cottage, as it came to be nicknamed, served as an occasional summer house for Vanderlip and his wife, Narcissa, and their six children. Positioned for views of Catalina Island and the coastline below, it's easy to see why Vanderlip chose this spot to build.
FOR THE RECORD:Real estate: The Home of the Week feature in the June 5 Business section said Suzanne Vanderlip was the widow of Frank Vanderlip Jr. She was the widow of John Vanderlip. —
The deep front yard with neatly trimmed hedges and walled gardens is fitted with a semicircle of columns that hark back to his Roman dream. But the ancient style ends there. The black-and-white façade of the sturdy, two-story Cottage with a wide covered porch suggests East Coast rather than Amalfi Coast. (Vanderlip's more famous summer estate, Beechwood, sits on New York's.)
Inside, the Cottage still has a period feel. Fireplaces in just about every room of the house serve as a reminder of a time when a wood-burning fire was the sole source of heating. The long living room has dark wood built-in bookcases that flank a brick fireplace on one wall. On the opposite side, windows and doors lead to the porch and wide ocean views. Valances, a built-in cabinet and portable screen, also original, reflect an Asian motif in deep reddish lacquered wood.
Off the living room is the dining area, a light-filled room with a ceiling of recessed white beams and doors that open out to the porch. The rest of the first floor includes a kitchen, pantry, a small maid's quarters and a family room that was added later.Upstairs, the master bedroom suite has a large sitting area, a double bathroom, a fireplace and a large outdoor balcony that faces the ocean. Two smaller bedrooms joined by a bathroom are the only other rooms on the second floor.Vanderlip's ambitious plans — both for the surrounding communities and his own villa — didn't play out exactly as planned during his lifetime. He died in 1937, but his heirs and business partners remained active in the development and history of the peninsula in the last century.And the Cottage stands as his first venture into life on the hill.Suzanne Vanderlip, widow of the youngest son, Frank Vanderlip Jr., lived in the Cottage from the 1970s until her death in November. She, too, adored the home that had been the passion of the man nicknamed "the father of the Palos Verdes Peninsula."

Source: latimes.com

In our current economic situation, it is most certainly a buyer’s market when it comes to real estate sales. Just the same, it is taking home sellers an increasingly long time to sell their homes. Sellers have the pick of the crop, so to speak, when it comes to choosing homes in a glutted market. How can you ensure your home will sell in a timely fashion when a buyer has so many options from which to choose?

Familiarize yourself with the concept of a homeowner warranty. Savvy sellers use homeowner warranties, also known as simply a home warranty, to benefit them and get buyers to purchase their homes. A guarantee that the home they’re considering purchasing is in good shape is exactly what a buyers want. Buyers will alternatively want a guarantee that the previous owner is willing to fix any defects that later happen to occur within the first year of the home being purchased. You as a buyer will ultimately end up with a quicker sale since a homeowner warranty offers the assurances most buyers want.

Is the cost of a homeowner warranty imposed on the buyer or the seller? Sometimes local customs dictate, but ultimately each state has their own general policies. It makes sense that a seller would pay for the warranty in many locales, because selling the house more quickly as a result is a benefit the seller receives. It stands to reason that there’s less inclination for a buyer to require the seller to fix something that subsequently breaks if the buyer didn’t have to pay for the warranty in the first place.

The cost for a homeowner warranty is also relatively minimal. A typical warranty usually ranges from $250 to $400, depending again on your location, as well as what specifically is covered under the policy. The policies must be prepaid one year in advance. They can expire at the end of that term but also can be renewed on an annual basis.

There are limits to what a homeowner warranty covers, despite a seller’s initial leeriness about offering too much coverage for too long of a time period after the sale of the home. Not every plan pays for indoor appliances, and most outdoor items like sprinklers, spas and pools are not covered unless a buyer specifically requests coverage. In the event that a buyer has improperly installed or maintained something, has violated a code or creates unusual wear and tear, coverage can also be denied.

A seller often has great control over the terms of a homeowner warranty, even though the buyer may dictate its existence. There’s really no reason not to take advantage of a homeowner warranty, since it has the dual function of putting a buyer at ease and helping a seller’s home sell more quickly.

Planning to move or relocate in Colorado? Receive helpful information about Boulder real estate or real estate in Golden. Also, find detailed MLS real estate data on specific homes or properties for sale and receive help from real estate agents.

California Atty. Gen. Kamala Harris, saying that years of unscrupulous lending still haunts the state, is creating a 25-person task force to target mortgage fraud of any size — from small operations that preyed on troubled borrowers to corporations that sold risky loans as safe investments.

The team of 17 lawyers and eight special agents from the state Department of Justice will pursue three major areas, Harris said in an interview:

•Corporate fraud, including instances in which bundled mortgages were sold as securities to the state or its pension funds under false pretenses. Harris said her office plans to prosecute some cases under California's False Claims Act, which she described as "one of those very powerful tools that California uniquely has … to pursue, in essence, what are false claims that are submitted to the state."

•Scams, including instances in which consultants, lawyers and others took fees from people in foreclosure, saying they would help the homeowners get loan modifications or other remedies, but delivered nothing.

•Fraudulent lending practices, including deceptive marketing, failure to fully disclose loan terms and qualifying people for loans who couldn't afford the terms.

Harris said the mortgage fraud that ultimately led to the housing crash continues to be a drag on the state, causing huge losses in jobs, property values and state revenues.

"We are looking at a situation of up to $640 billion in wealth having been lost because of this wave of foreclosures that has hit the state," Harris said, referring to the decline in homeowner equity. "There is a direct connection" between mortgage fraud "and the issue that we are challenged with in terms of our state budget crisis."

Creation of the state's Mortgage Fraud Strike Force, which Harris will announce at a news conference Monday in Los Angeles with Mayor Antonio Villaraigosa, comes as other states turn up the heat on the lending industry.

New York Atty. Gen. Eric Schneiderman is seeking records from three major Wall Street banks as part of a broad investigation into the mortgage crisis. Also, a months-long investigation by all 50 state attorneys general into the foreclosure practices of the nation's five largest mortgage servicers is continuing.

Harris said her initiative was distinct from the multistate investigation because it would go after all aspects of the mortgage-lending business. Harris, formerly San Francisco's district attorney, made a campaign promise last year when running for attorney general that she would crack down on mortgage fraud.

Many Wall Street financial institutions — private equity firms, hedge funds and banks — bundled often poor-quality mortgage loans into securities during the boom years and sold them to major investors, including pension funds. That resulted in billions of dollars in losses when borrowers defaulted on the loans, triggering the financial crisis.

Harris said that although successful prosecutions of major players in the mortgage meltdown have been difficult, the severity of the crisis called for a tough-minded approach to mortgage fraud, one that could target executives of major financial institutions.

"If the evidence leads us there, no case will be too big or too small to pursue," Harris said. "There remain millions of people affected by the mortgage crisis."

Angelo R. Mozilo, whose Calabasas-based Countrywide Financial Corp. was a major underwriter of risky subprime loans, agreed to a $67.5-million civil settlement with federal regulators but was not prosecuted criminally, despite a nearly three-year investigation by the Justice Department. Countrywide was acquired by Bank of America Corp. in 2008.

Harris' office reached a $6.5-million settlement this year with Mozilo and another former executive of Countrywide who the state had accused of predatory lending. Consumer advocates decried that settlement as far too small to be meaningful.

"The burden of proof in a criminal case is very high," Los Angeles defense attorney Jan Handzlik said. "It would be necessary for the AG to prove beyond a reasonable doubt that the mortgage executives had knowledge of the fraud and acted with a criminal intent."

Handzlik added that such proof is difficult "when those executives are relying on the representation of numerous other institutions such as the ratings agencies, the lenders who gave out the mortgages in the first place, the insurance companies that backed these securities and so forth."

William K. Black, a University of Missouri-Kansas City law professor and an aggressive regulator of the savings and loan industry after its crisis in the 1980s, said the state prosecutors could be successful if they carefully chose their targets.

Black asserted that the federal government has the means to pursue these cases but hasn't shown the will.

"The success rate in the savings and loan cases, despite the fact that they were more complex … was 90%, and this was against the best criminal defense attorneys in America," Black said.

Source: latimes.com

2010 Market Recap

As you prepare for the year ahead, it is important to revisit what transpired in the housing market in 2010 in order to help determine what can be anticipated in the coming year.  It is evident that 2010 has been a year of transition toward stability in the housing market when looking at three main housing indicators:  median price, sales and unsold inventory.

The state median price, at $296,820 in November, experienced its first year-over-year decline after 12 consecutive months of gains.  With a 21 percent rise above the February 2009 trough of $245,230, the median price in California could be an indication of the beginning of stability in the housing market.

Year-to-date sales dropped 9.8 percent in November, consistent with our forecast of a 10 percent annual decrease.  The seasonally adjusted sales in November were up 93 percent from the trough of 254,650 three years ago, and were 19 percent above the long run annual average over the past 39 years.  Despite the year-to-date drop, sales figures are faring reasonably well when historical data is taken into consideration.

The unsold inventory index is a good indicator of home prices; when the housing supply falls below seven months, it usually leads to price appreciation.  The November unsold inventory index was 6.2 months, indicating the length of time necessary to sell the entire, current housing supply.  This figure is 13 percent below the long-run average of 7.1 months and 63 percent below the recent peak in January 2008 at 16.6 months.  Because this index has maintained a relatively healthy range in 2010, between 4.6 and 6.6 months, it is another indication of the beginning of stability in the California housing market.

In addition to these three main housing indicators, it is necessary to also examine other factors affecting the state of the housing market, such as the type of sales, size of downpayments and types of mortgages.

Other Indicators of Stability – Annual Housing Market Survey

The breakdown of type of sales from C.A.R.’s 2010 Annual Housing Market Survey helps to paint a more accurate picture of overall market conditions.  More specifically, the number of distressed sales compared to overall sales is particularly important in determining the health of the real estate market.  For the past few years, we have seen significant numbers of distressed properties on the market.  In 2010, the share of distressed sales relative to all sales declined to 41 percent from 46 percent in 2009.  Although there are still many distressed properties on the market, this reduction is a good sign that the housing market is heading in the right direction.

When comparing the various components of distressed sales, there are some noteworthy distinctions.  While the percentage of foreclosures and REOs declined since last year, the percentage of short sales increased from 14 percent in 2009 to 22 percent in 2010.  Short sales also tend to be higher priced and to stay on the market and in escrow longer than REOs and foreclosures.  They are also in better condition because they are typically occupied and maintained during the short sale process, unlike foreclosures and REOs.  Because short sales are more favorable financially for banks and we are seeing them in higher frequencies, this could lead to improvement in lending conditions, which would be favorable for the housing market.

After shrinking consecutively over the past four years, the median downpayment increased 25 percent from $40,000 in 2009 to $50,000 in 2010.  More buyers are now putting down the recommended 20 percent of the purchase price, compared to only putting down 12 percent in 2006.  The percentage of buyers with zero downpayment has declined to 4.8 percent of buyers, compared to 21 percent of buyers in 2006.  Buyers also turned to their savings, rather than creative loan products, for their downpayments in 2010.  These are all indicators of a healthier environment for recovery.

There has been a significant change in the distribution of loan products in the last several years of the housing market cycle; the gap between FRM, ARM and other loan products was smaller between 2004 and 2006 for new first mortgages.  That gap has widened tremendously with FRMs now consisting of 97 percent of all new first mortgages.  The share of first time buyers who used an ARM declined from 53 percent in 2005 to only two percent in 2010, with repeat buyers following that same trend.  The proportion of transactions with second mortgages has also diminished since 2006.  Consistent with the trends in types of sales and sizes of downpayments, mortgages also exhibited signs of increasing solidity.

With the tightening of credit standards, FHA loans have risen in popularity and made up 29 percent of all loans in 2010, compared to only one percent in 2006 and 2007.

2011 Forecast

Now that the government incentives that stimulated the housing market, such as the first time buyer tax credit, have run their course, the market must operate on its own moving forward.  While we still anticipate 2011 to be a transition year, as 2010 has been, it will continue moving further toward stabilization.  We expect the annual sales and median price to increase two percent to 502,000 and $312,500, respectively.

Although foreclosures appear to be on the decline during the second half of 2010, they are expected to remain high in 2011 as foreclosure filings rise, employment statistics remain weak and the economy continues its struggle to emerge from the recession.  The November REO inventory of 112,000, according to Foreclosure Radar, translates approximately to an additional 2.4 months on the Unsold Inventory Index (UII); coupled with the 6.5 month MLS listings figure, the total UII would be about nine months. While this is above the 7 month long run average, it is well below peak levels that would trigger a significant decline in prices.  This inventory is unlikely to worsen in the long run, according to the trend that we’ve seen over the past year.  This means that overall, with notices of default decreasing while REOs are increasing, the market is showing continued signs of stabilization with respect to the “shadow inventory”.

There are some wildcards that will prevent the housing market from reaching a full recovery in the near term: the possibility of another recession, Federal economic policies, negative equity homeowners and shadow inventory.  Despite these uncertainties, there will be some tremendous opportunities in the housing market for first-time buyers, investors, long time owners and international buyers.  These opportunities will pave the way to recovery in 2012 and beyond.

Source: car.org

The blizzard of complex disclosure forms required in getting a mortgage soon could ease a bit as a new federal agency tries to streamline and simplify an important part of the process.

In its first major move, the Consumer Financial Protection Bureau released two prototypes of shorter and easier-to-understand disclosure forms that lenders must give home buyers when they apply for a mortgage.

The goal is to help consumers better comprehend the terms of the loans and compare them with mortgages available from other banks, Elizabeth Warren, the special White House and Treasury Department advisor helping to launch the consumer bureau, said Wednesday.

"With a clear, simple form, consumers can better answer two basic questions: Can I afford this mortgage, and can I get a better deal someplace else?" she said, stressing that the agency wants public feedback to help make the forms as understandable as possible. "That's good for American families and good for the markets they depend on."

The prototypes have simpler language and use highlighted terms, arrows and "yes or no" graphics to provide key details about a loan. Those include whether the mortgage terms can change, projected monthly payments for different years and a new piece of information — how much of the loan would be paid off in five years.

Seven banking executives saw the prototypes Tuesday and liked them, said Bob Davis, executive vice president of mortgage finance for the American Bankers Assn.

"Our bankers felt this type of proposal was an improvement and a simplification, and we're happy to see it," Davis said.

Some mortgage industry leaders have supported simplified disclosures but have warned about the costs of the changes and possible new legal liability.

The bureau said the prototypes would be merged into one two-page form after it solicits extensive public feedback through its website, consumerfinance.gov, and interviews with consumers and industry representatives in Los Angeles, Chicago and four other cities.

The new form would replace two slightly longer mortgage disclosures that many home buyers complain are duplicative and difficult to understand.

"They're complicated and convoluted," said Richard Green, director of the USC Lusk Center for Real Estate. "Simplifying them is a good thing, but it's actually a very difficult thing to do because mortgages are just complicated."

Created in great part because of regulatory failures leading up to the subprime mortgage meltdown, the consumer bureau is making simplified mortgage disclosures a priority as it prepares to start operations in July.

Changing the disclosure forms is the first of several ways the agency will become a key player in mortgage regulation. For instance, it also will set new standards for how companies service home loans.

"This isn't just about giving consumers information in a clearer way," said Travis Plunkett, legislative director for the Consumer Federation of America. "It's about changing the way that lenders offer information to consumers to make sure they're not being deceptive and they're not low-balling financial risk."

The financial reform law enacted last year created the consumer bureau and directed it to develop a "single, integrated disclosure for mortgage loan transactions" by July 2012.

Lenders are required to provide two forms to a consumer within three days after he or she applies for a mortgage. The forms outline the loan's interest rate, initial monthly payment and other features.

One form is a two-page Truth-in-Lending-Act mortgage disclosure statement. The other is a three-page "good faith estimate" required by the Real Estate Settlement Procedures Act.

"They are intended to convey the basic facts about home loans to help consumers comparison-shop … but these forms have overlapping information and complicated terms that can be difficult to understand," Warren said.

In a poll last fall by Consumer Reports magazine, 84% of respondents who had applied for a loan or credit card recently said they had some difficulty understanding the financial disclosures.

The consumer bureau released the forms as part of its "Know Before You Owe" project to get feedback from the public, consumer groups and the mortgage industry.

Over the next four months, the agency will conduct interviews about the forms with consumers and mortgage industry officials in six cities — Los Angeles, Chicago, Albuquerque, Baltimore, Birmingham, Ala., and Springfield, Mass.

After settling on a single prototype, the consumer bureau will start a formal federal rule-making procedure, which also requires public comment. Such comment is crucial because providing new information, such as how much of the mortgage would be paid off after five years, could backfire by overloading consumers, USC's Green said.

"A lot of people when confronted with all those numbers just kind of panic," he said. "I think testing is a really great idea. If you give people a form and ask them about it and they seem to know what's going on, that's a good sign."

Source: latimes.com

These may sound suspiciously like teaser quotes with tricks in the fine print, but they are in fact signs of an important shift underway among American homeowners: Not only have they been refinancing at a robust pace in recent weeks, but they're dialing down on the remaining number of years they plan to pay on their mortgages.

chief economist Frank Nothaft calls the shift to shorter terms "a very strong trend." In his company's latest quarterly survey of refinancers, more than 1 in 3 borrowers who ditched their 30-year fixed-rate loans opted to replace them with 15-year or 20-year mortgages at near-record low rates.

Among community banks and lending institutions that originate mortgages to retain for their own portfolios, the trend is toward even shorter maturities. Jeff Lipes, president of the Connecticut Mortgage Bankers Assn. and senior vice president of Family Choice Mortgage near

, Conn., says some institutions are dangling fixed rates just under 3% to refinancers who want to compress their terms to as little as seven years and are willing to set up automatic payment withdrawal accounts.

"It can make a lot of sense if you can do it," he said — especially for baby boomers in their 50s who want to be mortgage-free by the time they hit retirement.

Obviously you'd need to have the income or financial reserves sufficient to pay the extra money each month. Plus you'd need to be able to qualify for a refi in the first place under today's toughened underwriting standards.

Paul Skeens, chief executive of Colonial Mortgage in Waldorf, Md., said shifting to shorter-term debt "is a great move" — he's refinancing his own home to a 10-year term right now — "but do you have the appraisal to support it? Do you have the credit scores you need?"

With short sales and bank foreclosures still a heavy drag on market values, getting an appraisal high enough for a refi "can be almost impossible in some areas," Skeens said.

For some low-cost refi programs, lenders want to see at least 25% equity in the house. Higher FICO credit score requirements by

and Freddie Mac are another big impediment; both companies reserve their best rates for borrowers with FICO scores of 740 and higher.

The shift to shorter-term loans is part of an even broader trend among consumers emerging from the scary moments of the recession and global financial crisis: de-leveraging, reducing long-term household debt burdens and getting out of adjustable-rate loans. According to Freddie Mac data, "cash-out" refinancings, where homeowners increase their mortgage debt by more than 5%, accounted for just 25% of refinancings in the latest quarter, compared with 80% and higher during the boom years.

In the first quarter of 2011, 84% of homeowners who refinanced hybrid adjustable-rate mortgages switched to fixed-rate replacement loans ranging from 15-year to 30-year terms, Nothaft says. Part of the reason, he believes, is that today's rock-bottom fixed rates — with conventional 15-year rates in the upper 3% range and 30-year loans averaging just above 4.6% — are exceptionally attractive.

Plus, Nothaft said, "there's a lot of chatter about the [

] pushing rates up" in the coming months, so many homeowners are checking out their options on locking in rates that may well be the best they will ever see. Freddie Mac's own forecasts put 30-year fixed rates at 5.25% by the final quarter of this year.

The takeaway here: Even if you've already got a low mortgage rate, consider going shorter term, lowering your rate even further and owning your home debt-free sooner.

Source- Los Angeles Times

Even without a homebuyer tax credit, home sales are on track to outperform last year's rate. Being credited are the improving job market, sustained economic growth, and, of course, superior housing affordability conditions. Experts are predicting home sales to reach higher than 5 million for this year–up about 7-10 percent over last year.
 

Currently unemployment stands at about 9 percent, but more than 100,000 jobs are created monthly and nationally that could mean 1.5 million new jobs in 2011, according to the National Association of Realtor's (NAR) Chief Economist, Lawrence Yun.

Painting an even more optimistic picture, Frank Nothaft, Chief Economist for Freddie Mac (secondary mortgage market company), expects more job growth–nearing the 2-million mark. However this will only make a dent in the unemployment rate.

Approximately 2 million jobs were lost in the recession (2008-2009) and an expected 2-million new incoming job entrants from college, etc. will continue the unemployment gap. However, experts say the unemployment rate should fall to 8.8 percent in 2011, 8.6 percent the following year, and then drop to 6 percent, a more normal level, around 2015. Yun also expects the Gross Domestic Product to grow 2.5 percent in 2011 and in 2012, 2.7 percent.

Still, housing prices are the most affordable ever which means that, based on NAR's Affordability Index, those who earn the national median income have 170 percent of the income needed to purchase a home priced at the national median. Marking four solid years of little price change, Yun expects the median existing-home price to stay at approximately $170,000 for the next couple of years.

What are helping make these homes so affordable are the low interest rates. Couple that with the surplus of inventory of distressed homes where homeowners are "under water" (owing more than the value of the home) and it's understandable why the market is so affordable.

But despite the low rates and affordable housing, experts say, the lending conditions are not quite ripe for increasing home sales even though lenders are now in a position (with plenty of cash) to make loans to qualified buyers. What some call the new "overly" strict lending standards are being blamed for the present lack of more robust housing sales.

So what's the best position for a homebuyer? Cash, of course, works great in any market conditions. All-cash buyers represent 40 percent of the market. This type of buyer typically isn't a first-time buyer. Instead these are usually investors who either believe they'll get a better return on their money by investing in real estate or they can't get mortgage financing. And a recent NAR study found that 59 percent of investors paid all cash. According to past surveys, that figure is significantly higher than the 32 percent and 17 percent in 2006 and 2004, respectively. Hot cash markets included Florida, California, and Arizona. Meanwhile, experts say refinancing may only produce half the activity it did last year which could create reason for banks to be more willing to lend to home buyers again.

Source- RealtyTimes

Fixed-rate mortgages are at their lowest point of the year, Freddie Mac says.

The widely watched weekly survey, released Thursday, showed mortgage rates declining for the fifth consecutive week amid mixed economic and housing data. The 30-year fixed-rate loans averaged 4.61% and the 15-year, 3.80%. Borrowers would have paid 0.7% of the loan amount in upfront lender fees to obtain the rate, Freddie Mac said.

Last year at this time, the 30-year fixed-rate mortgage averaged 4.84%, according to Freddie Mac, which surveys rates lenders are offering to well-qualified borrowers who make down payments of at least 20% or have that much equity in their homes if they are refinancing.

As rates fall, applications for home loans have risen. The Mortgage Bankers Assn. said Wednesday that applications for new loans last week were 7.8% higher than in the previous week.

Source- Los Angeles Times

Sure, L.A. was a boom town last decade but it was not necessarily a bubble, like Phoenix, Las Vegas and the cities in California's Central Valley. In those places, speculation drove much of the home price increases and the bust has had a devastating impact on the local economies.

The huge Los Angeles metro area, the second largest in the United States, has an extremely diverse economy, which protects it from the cyclical ravages experienced by more one-dimensional cities. The population continues to grow, which ultimately supports prices.

Home prices rose 0.2% in 2010, according to Fiserv, but many sellers are still keeping their asking prices low, hoping for a quick sale. They dropped 8% in March, compared with 12 months earlier, according to Move.com, but appear to have stabilized.

The big positive indicator for the housing market is that, once put on the market, homes, especially well-priced foreclosures, don't sit. They sell in a median of only 79 days, one of the main reasons for Move's positive forecast.

As the foreclosure pipeline dries up and more conventional sales start to claim higher market share, the home price numbers should start to improve as well.

Source- CNNMoney

Generally speaking, the real estate market is on a downward shift at the moment. Owning a house is part of the American dream and letting go of a place that a renter was finally able to call their own can be difficult. Yet with the current state of the market, making a decision to say sell my house fast could be the best and only option. This is especially in a situation where a home owner is facing imminent foreclosure.

The economic downturn means most people cannot afford to buy a home so those trying to sell are having a hard time finding buyers. For a homeowner facing foreclosure, this may be the only way out. For one, selling directly to another buyer which is called a short sale even if the offer price is not very good could cut ones losses in the long term.

A direct sale, also called a short sale could cut the losses might incur while waiting for a better offer. It will take time for there to be a vibrant economy and viable real estate market again. Experts say there will be a wait of at least two years before this happens. Meanwhile, the value of properties will continue to drop and refusing to sell until a good offer comes along could mean eventually having to sell a house for even less.

Another benefit of a short sale is that one can cash in on the buyers market. It would be possible to get a house that is worth a lot that the owner also needs to dispose off fast. When things begin to look up, the house bought for a low price could then be sold for what it is worth which would mean making a good amount of money.

A direct sale will also see the cost of selling come down significantly compared to a sale that is made through a bank. No surveys fees, realtors fees and their commissions and other costs such as evaluation fees or costs of closing a sale will have to be paid. Instead, a buyer and seller agree on a price directly and will only need to pay a lawyer to draw up a sale agreement and change the name on the deed of the house.

Selling directly means incurring only the cost of having the sale formalized through a lawyer and having the ownership deed changed to the name of the new owner. Perhaps the other cost that will be paid is the cost of advertising the property. This can be done most affordably on the internet where at least 80 percent of potential buyers go to look for available property.

A short sale, as its name suggests, is also a good option for the short time it takes to execute. It can take as little as two to three weeks for a short sale to be completed compared to a bank or realtors sale. A long process could cost a home owner more as homes continue to drop in value.

Avoiding foreclosure would also mean avoiding a bad credit history and poor credit rating. Taking care and clearing smaller loans like student loans or credit card debt could bring a rating up. With a loan as big as the one taken for a home, it could take a long time to delete this dark mark. One could be unable to ever qualify for a home loan in future.

Are you saying “I wish I could sell my house fast today?” If you are, we can show you sell my house Portland and help you out.. Free reprint available from: Latest Tips On Hints On Advantages Of Sell My House Fast.

Beverly Hills CA apartments attract wealthy investors

The Platinum Triangle

Beverly Hills, the California City in a City (Los Angeles) Is known for Rodeo Drive, and celebrity residents is attracting wealthy individuals seeking real estate investments, and driving up prices for its Trophy apartment buildings.

This March a 24 Unit multifamily complex, located one block from the Four Seasons Hotel Los Angeles at Beverly Hills, sold for US$7.5M, giving its buyer a lower return than similar buildings in the USA.

High net worth buyers are accepting lower and lower cap rates, a measure of yield in the real estate industry, for rental apartments in the Los Angeles area’s wealthiest neighborhoods. The cap rate is a property’s annual income divided by the purchase price.

The Beverly Hills investor accepted an annual cap rate of 4.5%, more than 2 percentage points below the national average, said a Managing Director at Los Angeles-based real estate firm Charles Dunn.

Nationwide, the average cap rate for apartment buildings slipped to 6.6% in 2-H of Y 2010 from 6.9% in the 1-H of the year, according to New York-based research company Real Capital Analytics Inc.

A 29 Unit apartment building in Bel Air, part of the Platinum Triangle of wealthy neighborhoods along with Beverly Hills and Holmby Hills, sold in March for US$7.2M.

Giving it a cap rate of 4.6%, the average rate in the Los Angeles area’s richest neighborhoods slipped to about 4% during Q-1 Y 2011 from 5% in mid-Y 2010.

Multifamily property prices have risen as much as 30% in the most affluent parts of Los Angeles over the past 18 months. Values have risen even as California’s jobless rate stood at 12% in March, higher than the US average of 8.8%. The state’s credit rating from Standard & Poor’s is the lowest in the USA, and Governor Jerry Brown is working hard to close a US$15B budget deficit.

Values in Highend neighborhoods are being driven by demand for multifamily properties priced at US$20M or more. The USD volume of such transactions rose 202% last year in Los Angeles County, more than the nationwide increase of 179%.

Building tenants in wealthy neighborhoods “are the so- called echo boomers, the children of rich baby boomers, combine them with a affluent growing immigrant population, and you have set the stage for a tremendous run in the apartment business.

US apartment vacancies declined to the lowest in almost 3 yrs in Q-1 Y 2011, as the weak home buying market fueled rental demand.

Cap rates for apartment buildings also are dropping in Manhattan and Connecticut, including such wealthy areas as Greenwich. In those areas, they declined to 6.7% in Q-1 from 6.9% in Q-2 2010.

In Southern California, the search for safe investments is driving wealthy individuals to buy multifamily properties in upscale neighborhoods. The interest in these areas is less driven by the valuations, which in fact are high, but investors are excited by the yields relative to fixed income, and they are focused on the tax advantages. Plus they can walk down the street and point at it

Buying apartment buildings in affluent neighborhoods is a great investment strategy for those that have patient capital.

A rebound in the real estate market may boost buyer confidence and inspire investors to focus less on wealthy neighborhoods and more on “class B assets or mid-tier areas, as the economic recovery will lead to price appreciation due to diminishing demand.

Source- Live Trading News

LOS ANGELES—Fewer Americans had their homes repossessed by banks or were put on notice for being behind on their mortgage payments in April compared to a year ago.

That would ordinarily suggest improving fortunes for U.S. homeowners, but the decline had less to do with any turnaround in the housing market than with foreclosure processing delays that appear to be getting worse. That is threatening to drag out a housing recovery, foreclosure listing firm RealtyTrac Inc. said Thursday.

It's taking longer for lenders to move against homeowners who have stopped paying their mortgage and to take back homes already in some stage of the foreclosure process. In states like New York, for example, it now takes an average of more than two years for a home to go from the initial stage of foreclosure to being repossessed by a bank, the firm said.

Those delays, partly due to banks working through foreclosure documentation problems that came to light last fall, means it could take many more years for lenders to deal with a backlog of seriously delinquent properties, which numbers up to 3.7 million, by some estimates.

"It's going to take between three to four years just to get those loans into foreclosure at our current pace," said Rick Sharga, a senior vice president at RealtyTrac. "And that doesn't spell good news for the housing market."

Banks repossessed 69,532 homes last month, down 5 percent from March and down 25 percent compared with April of

last year, according to RealtyTrac, which tracks warnings sent to homeowners throughout the foreclosure process.

The number of properties receiving an initial notice of default fell to 63,422, down 14 percent from March and down 39 percent from April, 2010.

Homes scheduled for auction for the first time also declined in April, falling to 86,304. That's down 7 percent from March and 37 percent below April of last year.

A weak housing market, sliding home prices and pressure on lenders to give troubled homeowners more time to work out new payment arrangements or loan terms have all contributed to the longer time frame for foreclosures.

Many banks also have taken steps to revisit thousands of foreclosure cases since last fall, delaying the processing of new foreclosures. The logjam has been compounded by court delays in states like Florida, New York and New Jersey, where foreclosures must be approved by a judge.

In the first three months of this year, it took an average of 400 days for a U.S. home to go from receiving an initial notice of default to being foreclosed on, RealtyTrac said.

That's up from an average of 340 days in the same period last year and more than double the 151-day average in the first quarter of 2007.

The delays are even lengthier at the state level. In New York and New Jersey, the foreclosure process took more than 900 days, on average, to run its course in the first quarter—more than three times the average length of time in the first quarter of 2007 for both states.

In Florida, one of the states hardest hit by the foreclosure crisis, the process took an average of 619 days in the first quarter, up from 470 days a year earlier. In the first quarter of 2007, it took an average of 169 days for the process to play out, RealtyTrac said.

Barring a pickup in the pace of foreclosures, it is likely fewer homes will be repossessed this year than in 2010, when lenders took back more than a million, Sharga said.

Despite the drop in foreclosure activity last month, several states continue to have outsized foreclosure rates.

Nevada had the highest foreclosure rate in the nation, with one in every 97 households receiving a foreclosure notice in April. It also bucked the overall national trend, as bank repossessions jumped 23 percent from March and climbed 12 percent from April of last year, RealtyTrac said.

Lenders may have elected to pick up the pace of foreclosures in Nevada to take advantage of brisk foreclosure sales in Las Vegas. In March, sales of previously occupied homes in Las Vegas hit a five-year high, with distressed properties accounting for 69 percent of sales, according to DataQuick.

Source- Daily News

If you've been looking for a way to pay for energy improvements to your house, two little-publicized new mortgage programs could provide the cash you need.

Both the

and mortgage investor

recently have launched options in the energy conservation arena. Here's a quick overview, with some pros and cons:

The FHA's PowerSaver program allows eligible owners to borrow up to $25,000 at fixed rates between 5% and 7% for as long as 20 years to finance high-efficiency windows and doors, heating and ventilating systems, solar panels, geothermal systems, insulation and duct sealing, among other retrofits.

Although PowerSaver is officially a pilot program, Shaun Donovan, secretary of Housing and Urban Development, estimates that 30,000 such loans will be closed in the next two years. It eventually could become a major national program for residential energy upgrades, with total loans extending into the millions, he said.

One important element in the program is energy audits. Although they won't be mandatory, most participating lenders are expected to encourage owners to sign up for an energy efficiency analysis by a certified specialist. The audit should pinpoint where your house is leaky or otherwise inefficient in energy use, and should recommend the specific types of upgrades or additions that could help cut your bills and reduce greenhouse emissions.

The FHA will insure loans to cover the improvements up to the $25,000 maximum under the following guidelines:

•The house must be your principal residence, detached and single-family only. No rentals, no investor homes, no second homes.

•You'll need to demonstrate that you are a solid credit risk. Minimum FICO credit scores of 660 are required, plus your total household monthly debt-to-income ratio cannot exceed 45%.

•Houses with negative equity will not qualify. You'll need some level of equity in the property; there is no mandatory minimum stake, but the combined primary mortgage debt plus the PowerSaver second lien cannot exceed 100% of the appraised market value of the house. You could, for example, have a 10% equity position in a $200,000 home, and still qualify for up to $20,000 in a PowerSaver.

•Lenders are likely to take an extra hard look at all your income and asset documentation because, unlike other FHA-insured mortgages, PowerSaver will cover only 90% of the lender's loss or insurance claim in the event of a default.

Eighteen lenders around the country have signed up so far to participate, including giant Quicken Loans — a Top 10 national mortgage originator — and local players such as California-based Sun West Mortgage, Seattle's HomeStreet Bank, the Bank of Colorado, Stonegate Mortgage in the Midwest, Pennsylvania-based AFC First Financial Corp. and the University of Virginia Community Credit Union. A spokesman for Quicken Loans said the company hoped to offer PowerSaver in as many as 34 states during the pilot period.

Some pros and cons of PowerSaver: The biggest plus is its low fixed interest rate and long term — especially in comparison with most homeowners' alternative options such as bank home equity loans and lines of credit, which typically cost more and may have less favorable payback terms.

The main potential drawbacks center on the program permitting total household mortgage debt loads of up to 100% of market value. Some borrowers could encounter payment problems if they experience even slight income declines. If property values in the area decrease, the loans could put owners into negative equity territory.

Fannie Mae's "energy improvement" mortgage add-on program is significantly different from the FHA's. Rather than a separate loan to finance the energy retrofits, Fannie folds the cost of the improvements — capped at up to 10% of the estimated market value of the home following the energy-efficiency enhancements — into the mortgage amount itself.

In effect, Fannie's program, which is available through participating lenders nationwide, allows you to buy an existing house and improve its energy usage significantly with one mortgage at current market rates. Most single-family properties are eligible for the program, except for manufactured houses and cooperative units.

Be aware that Fannie requires an audit by a certified Home Energy Rating Systems expert upfront to justify the proposed modifications to the house as truly cost-efficient. The audit must be paid for by the borrower, but Fannie will credit an extra $250 through the lenders to partially defray this expense.

Source- Los Angales Times

Here's a bit of good news for anyone still thinking about refinancing a home loan -- mortgage rates have once again drifted lower for well-qualified buyers.

A Freddie Mac report on Thursday said the lenders it surveys were offering 30-year fixed-rate mortgages at an average rate of 4.71% early this week, compared with 4.78% the week before.

Rates for 15-year fixed loans, a popular option for homeowners looking to refinance mortgages, averaged 3.89%, down from 3.97%.

Buyers would have paid 0.7% of the loan amount upfront to the lenders to obtain the rates, according to Freddie Mac, the government-controlled home finance giant. Borrowers typically owe significant additional fees to third parties such as appraisers, and can "buy down" rates by paying lenders more initially.

The initial rates for floating-rate mortgages fell as well, Freddie Mac said.

Fixed mortgage rates tend to track the yield on the 10-year Treasury note, which has fallen recently on weaker economic data. Laguna Niguel mortgage broker Jeff Lazerson said rates of 4.375% were available to some people with good credit this week because of the trend.

Freddie Mac conducts one of the most widely watched surveys of home loans, asking lenders across the country what rates they are offering to borrowers with solid credit who have at least a 20% down payment or equivalent equity in their homes if they are refinancing.

Source- Los Angeles Times

We just released our Q2 2 Rent vs. Buy Index, which found that buying a home has become more affordable than renting in nearly 80% of major U.S. cities since last quarter. Find out how things have changed in your neighborhood with our interactive rent vs. buy map and let your buyers know whether it's smarter for them to rent or buy in your area

Click to view the Rent VS. Buy map now

Source: Trulia.com

Millions of young adults are beginning to move out of their parents’ homes and create new households at the fastest rate since 2007. Some housing experts are predicting these young adults may provide a major jump to U.S. housing starts--possibly by more than 50 percent, even by next year--and increase housing consumption at a rate nearly double that of the past two years, Bloomberg News reports.

In 2011, between 750,000 and 1 million new households are expected to be created, says UBS Securities LLC’s Maury Harris and IHS Global Insight’s Patrick Newport. In the year ended March 2010, new households stood at 357,000--the lowest on record, according to U.S. Census data. The “depressed rate” in new household formation has continued to jeopardize the housing market’s recovery, experts say.

But as the employment picture continues to improve, more young adults are leaving Mom and Dad’s house and making a new home for themselves. The “moving-back-in-with-Mom-and-Dad phenomenon” had caused a backlog of pent-up households, Charles Lieberman, chief investment officer with Advisors Capital Management LLC in Hasbrouck Heights, N.J., told Bloomberg News. “Improved economic conditions” will “enable these households to split up and resume living in their own residences.”

Housing starts are expected to get a boost to about 648,000 this year and near 900,000 in 2012 (it stood at 586,800 last year), says Brad Hunter, chief economist and national director of consulting for Metrostudy. The increase in housing starts, he says, reflects a “shadow demand” for new homes among family members who have moved in together because of economic conditions.

“The demographic component of housing demand is strong," he says. "It’s just the economic and psychological components that are holding things back."

Source- REALTOR

Move Trends presents our top Real Estate stories for the past week:

Pending Homer Sales Rise, Again: Based on numbers released by the National Association of Realtors, March saw another increase in pending home sales. The Pending Home Sales Index rose 5.1 percent, from 89.5 in February to 94.1 in March. However, the index is 11.4 percent below 106.2 from March last year.

30-Year Mortgages Fall: Fixed-mortgage rates for 30-year loans have declined this week to 4.78 percent (from 4.8 percent last week), while 15-year loans slipped to 3.97 percent (from 4.02 percent), reported Freddie Mac on its Weekly Primary Mortgage Markey Survey.

Mortgages Scarce for Minorities: Funds for refinancing mortgages were more available to white people in major U.S. cities than minorities, according to the study “Paying More for the American Dream V” (conducted by a coalition of nonprofit organizations). The study also found that lenders were more than twice as likely to deny refinancing applications in minority communities than in white neighborhoods.

Delinquency Continues to Decline: The Fannie Mae Monthly Summary indicates that delinquency is still decreasing. While conventional single-family delinquency dropped from 4.45 to 4.44 percent, the multifamily delinquency rate declined from 0.69 to 0.65 percent.

Source- Move trends

While her masterpiece home “Ohana” still sits on the Beverly Hills real estate market, actress Jennifer Aniston has purchased a penthouse in New York City for $5.9 million.

Although luxurious, the West Village condo is totally different vibe from the “Friends” star’s custom estate in Los Angeles. The 18th-floor pad, built in 1958, is in a coveted prewar Bing & Bing building. The one-bedroom, one-bath home has original hardwood floors, sweeping views of the skyline — from New York Harbor to the Empire State Building — and an updated gourmet kitchen. A private 900-square-foot terrace wraps around three sides of the penthouse and is perfect for outdoor entertaining. A one-bedroom, one-bath apartment may sound small for a celebrity pad, but this penthouse is a generous 1,477 square feet — fairly roomy for New York real estate. Besides, according to the NY Daily News, Aniston also purchased the unit below the penthouse, another one-bedroom, one-bath unit. Reportedly she plans to turn the two floors into a duplex.

Aniston purchased her Beverly Hills home in 2006 for $13.5 million, a year after her much-publicized divorce with Brad Pitt, and threw herself completely into renovating the mid-century property, adding 10,000 square feet as well as turning it to a completely private and eco-friendly home. Upon its completion, she christened the estate “Ohana” and described the home as a place that “vibrates with the love that created it” in a March 2010 Architectural Digest article.

Despite the effort she put into building her dream home, Aniston told “Good Morning America” recently that it was too much and she was looking to return to New York City:

I grew up here. I miss it. There’s nothing like being in the city…[it's] the city of every man. It’s all walks and I love that.”

Her Beverly Hills home is being sold through as a $42 million pocket listing by real estate agent Jade Mills.

Source- Zillow.com

LOS ANGELES, CA -- More than three-quarters (82%) of independent landlords say they would rent to someone who lost a home in foreclosure, assuming the applicant traditionally had good credit, according to a survey released today by The National Association of Independent Landlords.



"Landlords typically won't rent to applicants with poor credit--and a foreclosure will absolutely slam someone's scores. The exception is when they see people who have paid their bills their whole life, but lost their job, can't meet their mortgage and must hand their keys back to the bank," said Tracey Benson, president of The National Association of Independent Landlords.



Despite recent credit problems, Benson said, applicants with a foreclosure can prove good risks, chiefly because they did once own their own home: "These people are used to taking pride in where they live. Often, they lost their jobs and homes through no fault of their own."



Increasingly, mortgage defaults stem more from lost jobs than ill-equipped borrowers who lost homes they never should have bought, Benson said. A thorough background check, like one conducted by The National Association of Independent Landlords, will indicate into which category an applicant falls--and whether financial woes are part of a recent spate of bad luck or a life-long trend.



"Because of this abundance of defaults, there is a greater need for rental property, so landlords should carefully vet applicants," Benson said.



The National Association of Independent Landlords polled 563 members from March 21 through March 25, 2011.

Source: thecreativeinvestor.com

Another Paul Williams home has hit the market in Beverly Hills, this time with a price tag of $7.75 million. As we've mentioned before, Williams was the first African-American architect recognized by the American Institute of Architects (AIA). He designed countless other homes around Los Angeles as well as city landmarks like the Beverly Hills Hotel and Los Angeles International Airport. He designed this particular home in 1924.

This house has since been updated and expanded to 6,001 square feet, and now boasts four bedrooms, five bathrooms, and an office and maids' room. The master bedroom has two dual marble bathrooms and walk-in closets that are as big as bedrooms themselves. Outside the home, the .45 acre property boasts private lawns, patios, a pool, and a tennis court. See this place for yourself by taking a peek at the slideshow below.


Source: huffingtonpost.com

LA JOLLA, Calif. (DQNews) -- The number of financially distressed California homeowners who were dragged into the formal foreclosure process declined again last quarter, the result of turmoil and policy changes within the mortgage industry as well as shifts in the economy, a real estate information service reported.

A total of 68,239 Notices of Default (NoDs) were recorded at county recorders offices during the January-to-March period. That was down 2.2% from 69,799 for the prior quarter, and down 15.8% from 81,054 in first-quarter 2010, according to DataQuick. The San Diego firm tracks real estate trends nationally via public property records.

Last quarter's activity was the lowest since 53,493 NoDs were recorded in the second quarter of 2007. It was just over half the record 135,431 default notices recorded in the first quarter of 2009.

"Lenders and servicers have put various temporary holds on foreclosure filings while they work on procedural issues and respond to regulatory and legal challenges. It's unclear how much of last quarter's decline can be attributed to market factors and strategic decisions, and how much can be attributed to the formalities of the foreclosure process," said John Walsh, DataQuick president.

Most of the loans going into default are from the 2005-2007 period: the median origination quarter for defaulted loans is still third-quarter 2006. That has been the case for two years, indicating that weak underwriting standards peaked then.

Most of the loans made in 2006 are owned and/or serviced by institutions other than those that made the loans.

The most active "beneficiaries" in the formal foreclosure process last quarter were JPMorgan Chase (JPM_)(9,634), Wells Fargo(WFC_) (8,329) and Bank of America (BAC_) (7,158).

The "servicers" (or the Trustees in the formal foreclosure process) that pursued the highest number of defaults last quarter were ReconTrust Co (mostly for Bank of America and MERS), Quality Loan Service Corp (Bank of America), California Reconveyance Co (JPMorgan Chase), NDEx West (Wells Fargo) and Cal-Western Reconveyance Corp (Wells Fargo).

California's priciest zip codes collectively saw mortgage defaults buck the market-wide trend again and rise slightly quarter-to-quarter, while their defaults fell less on a year-over-year basis than in the overall market. The state's 80 zip codes with median sale prices of $800,000 or more last quarter posted a 5.8% quarter-to-quarter increase in default notices and a 4.7% year-over-year decline.

Source- The Street

Jack Nicholson, who turned 74 on Friday, April 22, is reportedly selling his Malibu home, which has an asking price of $4.25 million, according to real estate listings.

He has not commented on the reports, including one published in the Los Angeles Times. The three-bedroom, two-bathroom ranch-style home sits on about 70 acres of land and the property itself is comprised of 2,313 square feet.

It was built in 1966 and includes a pool, spa, putting green, cabana, tennis court, a bar and a guest house. The home has been on the market for at least three weeks.

Nicholson is known for films such as "The Shining" and "Chinatown," and won Oscars for his role in the movies "As Good As It Gets," "One Flew Over The Cuckoo's Nest" and "Terms of Endearment."

Nicholson also owns a house on the famed Mulholland Drive, as well as homes elsewhere in the Hollywood Hills and in Hawaii, Venice, California and Aspen, Colorado, according to the Real Estalker blog, which tracks celebrity property sales.


Source: hottorhottmess.blogspot.com

It may be a buyer's market in the housing industry, but in celebrity real estate, it's the sellers that are making out best.

According to Zillow.com, many Hollywood actors and actresses stand to gain millions of dollars more than they paid before moving into their residence, even after cutting the initial asking price. The star-studded list with new-found wealth includes Charlize Theron, Uma Thurman, Winona Ryder, Diane Keaton, Jennifer Aniston and Dennis Quaid.

Zillow.com reports that some of the celebrities' homes have yet to be sold, however, because they put so much work into renovating their properties, there is high potential for significant profit. For instance, Zillow.com reports Jennifer Aniston bought her Beverly Hills estate for $13.5 million, but after modernizing the home, she stands to earn $28.5 million. Others have already seen more green. The website reports Uma Thurman sold her property for $12 million after purchasing it for $9.5 million, a profit of $2.5 million.

This may not be the norm, however, as findings from a Trulia.com report indicate sellers have cut $24 billion in potential home equity over the past year.
 

Source: upack.com

The state's foreclosure crisis abated during the first three months of the year as lenders pushed the lowest number of Californians into the formal repossession process since the second quarter of 2007.

The number of Golden State residents who entered foreclosure in the first quarter declined 2.2% from the prior quarter and 15.8% from the same period in 2010. A total of 68,239 notices of default -- the first stage of foreclosure -- were filed on homes during the first three months of the year, according to San Diego research firm DataQuick.

That was the lowest level since 53,493 default notices were recorded in the second quarter of 2007 and is just over half the record 135,431 default notices recorded in the first quarter of 2009.

Banks did step up the number of homes they took back from defaulting borrowers already in foreclosure. A total of 43,052 trustees deeds were filed in county offices in the first quarter, a 21.5% increase over the prior quarter and up 0.5% from the first quarter of 2010.

Citing "pervasive" misconduct in foreclosures, federal banking regulators last week ordered the nation's biggest banks to overhaul their procedures and compensate borrowers. A wider-ranging investigation conducted by a coalition of state attorneys general and other federal agencies, including the departments of Justice, Treasury and Housing and the Federal Trade Commission is ongoing.

The degree to which the foreclosure slowdown in California has to do with these changes and how much the drop can be attributed to changes in the state's economic landscape is unclear. A significant number of homes in the Golden State are underwater, meaning that more is owed on the properties than they are worth. The unemployment rate remains high at 12%. Experts view both factors as a major contributor to foreclosures.

Source: latimes.com

"Glee" mastermind Ryan Murphy has sold a Sunset Strip-area home for $2,775,000, the Multiple Listing Service shows.

The Carl Maston-designed Midcentury Modern was built in 1947 and restored. Wood-framed glass walls open to a swimming pool, lawn and outdoor entertaining space, which includes a barbecue and fire pit. The 3,210-square-foot gated house has a library/office, an eat-in kitchen, three bedrooms and three bathrooms.

Source: latimes.com

Source: hollywoodhillseastmls.com

One of the hardest, most important decisions homebuyers face is how much to offer for their home. And the glut of information on the web about real estate only makes buyers even crazier than the decision itself does. Supply, demand, foreclosure rates, mortgage rates – buyers think they need to run spreadsheets and do fancy math to make a smart offer. And THAT can be super intimidating.

But the fact is, there is a pretty short list of steps you need to take to make a smart offer – one that gets you a great value, but is also likely to be successful at getting the property. (A low offer does not make for a great deal if you don’t get the house!) And most of the same steps apply to sellers trying to set the list price that will lure the most buyers (and net them the most cash)!

Step 1: What do the “comps” say? First things first. When it comes to pricing a home, or making an offer to buy one, the ‘first thing” is the home’s fair market value. Both buyers and sellers should work with an experienced, local agent to understand what the home’s value is. Most agents will do this by offering you a look back at similar properties that have recently sold in the neighborhood – i.e., the comparable sales, or comps.

HINT: You can also find comps for a home listed on Trulia by scrolling down to the section labeled Sold Homes near 1234 Merriweather Lane on the property's Trulia listing page.

Ideally, look for comparables that are very recent sales (3 months or less before you’re listing or buying), very similar properties (i.e., same number of bedrooms, bathrooms, square footage; and similar style, condition and amenities). If you do get into contract, these may be the same comparables which will be considered by the appraiser, so looking at them before making an offer can:

(a) provide factual support for a lower-than-asking offer or for the asking price, in a negotiation, and

(b) result in a sale price at which the property will actually appraise, later on - avoiding the common glitch of the deal falling through because the appraisal comes in way below the agreed-upon price.

Also, looking at comps is the first step for locating a home’s seller and prospective buyer in the reality-based universe of current home values. The fact that you bought or refinanced the place at a given value 5 or 6 years ago is entirely irrelevant to what it’s worth today, as is the buyer’s belief that the place was worth $100K less at the trough of the market, in 2009.

Step 2: What can you afford? This step is much more critical for buyers than for sellers. (Unfortunately, sellers, the facts that you need to net a particular amount to buy your next home or pay your existing mortgages or credit card bills off has no relationship whatsoever to the price at which you should list or will sell your home.)

Buyers – it’s a must to make sure that your offer price for any given home falls within the range of what is affordable for you. This includes offering a price within the range for which your mortgage was preapproved, but also includes making sure that the monthly payment and cash you’ll need to close the deal (down payment + closing costs) are affordable in light of the particular house. If, for example, the property will require repairs for which you’ll need to conserve cash, or has HOA dues you hadn’t planned on, you may need to rejigger your offer accordingly.

Step 3: What’s your competition? (And what’s theirs?) This is another step at which it’s critical to check in with your agent. You need to know what level of competition you’ll face – whether you are a buyer, or a seller. As a seller, you can find this out by looking at things like how many comparable homes are listed in your town or your neighborhood in your general price range (your agent will brief you on this). Sellers should also consider what type of transactions their home will be up against – the more distressed properties (foreclosed homes and short sales) with which your home must compete, the more aggressive you must be with your pricing to get your home sold.

The more competition you have, as a seller, the lower you should tweak your list price to attract buyers to come see your home. (And the more buyers come to see your home, the more likely you are to get an offer!)

Buyers should also be cognizant of the competition level they will face for homes. Believe it or not, even on today’s market there are properties and neighborhoods in which multiple offers are the name of the game. Work with your agent to understand the list price-to-sale price (LP:SP) ratio , which lets you know how much under or over the asking price properties are selling for in your target home’s neighborhood; the higher the LP:SP ratio, generally speaking, the less competition there is among buyers.

Your agent can also brief you on:

(1)The number of offers – if any - that have been presented on “your” property (which the listing agent will usually, gladly tell). If there are other offers, you’ll want to make a higher offer to compete successfully against them; and

(2)The number of days the home has been on the market, relative to how long an average home stays on the market before it sells – the longer it has, the more pressure is on the seller, price-wise, and the less competition the buyer is likely to have. (One exception is the sweet spot scenario, when a property that has been on the market for a long time has a price reduction and gets a bunch of offers as a result! )

4.How much do they need to sell (or buy) it? Buyers: Has the listing in which you’re interested been reduced at all? By how much? Has the listing agent informed you that her clients are highly motivated, flexible or have an urgent need to sell?

Sellers – most buyers are not in a high state of urgency to buy these days, given the long-term, high affordability of homes and interest rates, except when they have an urgent personal reason for moving, e.g., buyers who are relocating for work. Of course, all of real estate is hyperlocal, so it’s important to understand how motivated buyers are in your local market, generally speaking, before you set your list price.

Trulia’s new, interactive Price Reductions Map offers a number of clues to critical indicators of buyer and seller motivations in your home’s town and zip code, in just a click on the map - including:

·how many homes in your target property’s area have had at least one price reduction,

·how likely a home in the area is to have multiple price reductions.

The higher these numbers are, the stronger of a buyer’s market it is, and the more bargaining power buyers likely have. And if you’re the seller, the higher these numbers are for your area, the lower you may need to price your home to be successful at getting it sold.

5. How much do you want to buy, or sell, the place? Step #4 was about taking the motivations of the folks on the other side of the bargaining table into account when formulating your offer and your list price. This step is all about you – what’s your level of motivation? Now, buyers, you certainly shouldn’t offer a price way above what the place is worth (see Step #1) just because you really, really want it, unless you have the cash to throw around. But within the range of the home’s fair market value, it may make sense to move higher within that range if you are highly motivated to get that particular property.

Sellers: think of your list price as the most powerful marketing tool at your disposal. if you really want or need to sell, get aggressive about setting your price as low as makes sense for your your home's value and local market dynamics to attract qualified buyers and help your home stand out against all the competition.

Source- trulia.com

The real estate bust appears to have done little to alter Americans' confidence in the investment value of homeownership.

A robust 81% of adults said buying a home is the best long-term investment a person can make, according to a national survey by the Pew Research Center in Washington.

"Owning a home is really a part of the American dream, and that is just part of the American psyche and something that people aspire to," said Kim Parker, associate director for the center and one of the study's authors.

The study's results were unexpected, given the deep plunge in home prices and the fallout from the mortgage crisis, she said. Homeownership topped the list of long-term financial goals for Americans, according to the study; respondents rated homeownership, as well as living comfortably in retirement, more important than sending children to college or leaving offspring an inheritance.

The public's faith in real estate has been bruised since the last time a comparable survey asked people about the wisdom of investing in real estate. A total of 37% of respondents said they "strongly agree" that homeownership is the best investment a person can make while 44% said they "somewhat agree." The same question was asked by a CBS News/New York Times survey in 1991, and at that time 49% "strongly agreed" and 35% "somewhat agreed."

"The study results are surprising in that so many households still believe that homeownership is a good investment, even after the plunge in home values that has occurred over the past couple of years," said Celia Chen, a housing economist for Moody's Economy.com. "The preference for homeownership has deep roots in the history of this nation, and apparently even a severe correction in house prices can shake American's belief in homeownership only slightly."

The telephone survey was comprised of a nationally representative sample of 2,142 adults conducted from March 15 to March 29 by Princeton Survey Research Associates International. Interviews were done in English and Spanish. The margin of sampling error for the data is plus or minus 2.7%.

While home prices have entered a renewed decline after showing some improvements last year, many economists believe that the worst of the housing crisis is probably over. That sentiment could help to explain the resiliency in Americans' optimism.

"People may have the feeling that the worst is behind us," Parker said.

Though other investments such as stocks tend to produce a better return, the housing market has generally avoided the wild swings that the stock market has over time, potentially helping to explain real estate's lasting allure, Parker added.

Homeowners in the surveywere more positive about the financial wisdom of owning a home than were renters. But even among renters, the desire for homeownership remains strong, according to the survey's findings. Just 24% of renters surveyed said they rent out of choice and 81% said they would like to buy.

The decline in values has struck a wide swath of Americans. About half, or 47%, of homeowners said their property is now worth less than when the recession began, and 31% said the value of their home has not improved. Just 17% said their home is worth more than before the recession.

Of those who said their properties have lost value, 86% said they expect it to take at least three years for values to recover, 42% said at least six years and 10% said they expect a recovery in 10 years or more.

Despite those sentiments, 82% of homeowners who indicated their home is worth less than before the recession said homeownership is the best long-term investment a person can make.


Source: Latimes.com

Southern California's apartment dwellers probably won't face big rent increases any time soon, but the steep declines seen in recent years are beginning to ebb as the economy improves, a new study says.

Rents are predicted to remain largely flat for Southern California's market through 2012, according to a forecast by USC's Lusk Center for Real Estate. Rents changed little across Southern California in 2010 — ranging from a 1% increase in the Inland Empire to a 0.2% decline in San Diego County.

From landlords' perspective, the region continues to lag behind the rest of the nation, where overall rents increased 2.3% last year. But that might change if California's economy continues to pick up. Nearly 100,000 net new jobs were added in the Golden State in February, and that kind of pace could help strengthen the rental market.

"The economic improvement in the last couple months could definitely lead to a faster recovery than we are anticipating right now," said Tracey Seslen, a professor at the USC Lusk Center who co-wrote the study. "The jobs number for the last two months showed really nice growth."

Factors potentially keeping the lid on rents include decreased demand for rentals as people look to buy homes, lured by skyrocketing affordability. In addition, investors are increasing the supply of single-family homes for rent by purchasing foreclosures and converting them to rentals. High gasoline prices also could drive down rents in far-flung areas by encouraging employees to move closer to their jobs.

The rental study was based on rental data for apartment buildings of five units or more from the research firm MPF Research. It does not include rental data on single-family homes, which have been putting pressure on the traditional rental market since the housing bubble burst and foreclosures hit the market.

"Single-family homes that are being rented out compete with traditional multifamily product — high-rises or garden apartments," Seslen said. "That supply is very hard to calculate."

Mia Melle, president at RentToday.us, a company that manages rental homes for investors throughout Southern California, said that the rental market had been saturated with investor-owned properties and that prices of these homes continued to decline, particularly in low-income areas.

"A company or a hedge fund that just bought 100 houses, they have the ability to offer more affordable rents, which lowers the rental market as a whole," she said. "The bigger guys are not going to haggle. They just want to get them rented."

The economy continues to take its toll on the rental market, Melle said, with people who have experienced reduced hours, layoffs or furloughs struggling to make their rental payments.

"On the flip side, things are leasing very quickly for us," she said. "If it is priced right, it is leasing within days, meaning that there are a lot of tenants out there."

Southern California's rental market has been good to Adam Cohen, 28, the president of Inland Empire Recycling, a scrap metal yard.

Cohen has been renting a four-bedroom, 21/2-bathroom home in Rancho Cucamonga with a big backyard with a koi fishpond for the last three years with his wife, Selina, 28, three daughters and son. The family pays $1,750 a month, and Cohen said his landlords had not raised the rent on him much.

Although Cohen said he viewed renting positively, he hopes to become a homeowner this year.

"The housing market is in a great spot right now for buyers," he said. "I would like to get in while the getting is good."

Along with an improving economy, some other factors may work to increase rents in Southern California, according to USC's rental study. They include a squeeze on the supply of apartment buildings because construction of apartment buildings slowed during the real estate downturn.

Separately, data for the first three months of the year show that rents in Southern California have increased little compared with the rest of the nation, according to Reis Inc., a real estate information firm. Los Angeles rents rose 0.2% from a year earlier while the U.S. as a whole increased 1.9% from a year earlier, Reis said.

Source: LAtimes.com

Los Angeles officials took a stand Wednesday against sprawling, soaring homes in foothill communities as they enacted a new city ordinance that limits building sizes on hillside lots.

Mayor Antonio Villaraigosa said before signing the so-called Hillside Mansionization Ordinance that it would make construction standards more safety conscious in the landslide-prone areas and maintain the hillside neighborhoods’ rustic character.

“Part of what makes LA unique and attractive are our hillsides,’’ he said. “There’s nothing more upsetting for those of us who lived in the hillsides than to see the beautiful landscapes disturbed by a big box.’’

Officials passed a similar ordinance in 2008 for the city’s flatlands, but the hillside ordinance took more work because the steepness of some terrain made it harder to calculate allowable home sizes.

The new rules, which the City Council passed in March and will formally go into effect on May 9, use a formula that takes into account parcel size, steepness of slopes and other factors. The rules also increase the amount of analysis and monitoring that must take place when hilly terrain is graded so homes can be built.

Ron Ziff, who lives in a hilly part of the Sherman Oaks neighborhood, said a handful of massive villa-like homes with Spanish-tile roofs and stucco walls — some sprawling over 7,000 square feet — have sprouted in his neighborhood of 2,000- to 2,500-square-foot houses in recent years.

“There were huge mansions being built, property-line to property-line,’’ he said. “They are completely out of character with this community.’’

City officials and residents said most of the construction had taken place during the mid-2000s’ housing boom, when sale prices for homes made hillside construction projects worthwhile, despite their expense and complexity.

The ordinance will have little immediate impact, since construction has tapered off considerably, but the wealthy home seekers who flock to Los Angeles’ foothills will likely start looking for places to build luxurious new houses for themselves once the economy recovers, said Stuart Gabriel, who directs the Richard S. Ziman Center for Real Estate at the University of California, Los Angeles.

“Clearly it may be less relevant to the current depressed state of homebuilding, but that doesn’t mean that it will be irrelevant in the future market,’’ he said. “Los Angeles will continue to be a very dynamic city with a very significant global profile and there will continue to be a demand for high-end housing.’’

Gabriel predicted that some high-end property shoppers will begin skipping over Los Angeles, choosing instead to buy parcels in nearby cities with less restrictive construction ordinances so they can live in bigger homes. The consequence of that could be decreased property tax revenue, he said.

But Councilman Paul Koretz, whose west Los Angeles district includes several foothill neighborhoods, said the stiffer regulations were necessary.

“We need to preserve the character and integrity of our hillsides and their communities, and those efforts are evermore vital,’’ he said.

Source: Boston.com

The longest-lasting “Housewife” on Bravo’s “Real Housewives of Orange County” is ready to sell her home. Original cast member Vicki Gunvalson has put her house on the Coto de Caza real estate market for $2,695,000.

The decision to sell was no secret; Gunvalson discussed selling the luxurious home in a recent episode. Reportedly, she and husband Donn Gunvalson, also are in the midst of a divorce.

Many of the “Housewives” have had issues with keeping up on payments on lavish homes, and a few have come close to foreclosure, including Tamra Barney who sold her O.C. home as a short sale. Gunvalson, however, is selling her 5-bed, 6-bath home the regular way. Real estate agent Laura Simmons told the Wall Street Journal “she’s hoping for quick sale.”

Despite a premier location in a gated community — often favored by celebrities, athletes and doctors — a sale may not be as quick as the agent hopes. According to Zillow data, median Coto de Caza home values have fallen 5.4 percent year-over-year.

That’s not to say that the Gunvalsons’ estate isn’t lavish. The property is located on a full acre in the “woods” of Coto de Caza. High ceilings are featured throughout the 5,400 sq ft home, complete with “oversized” rooms and luxury details. The newly renovated downstairs level includes a suite and brand-new hardwood floors. The family room has a full wet bar overlooking the $500,000 “resort-style” pool and additional swim-up bar. A full outdoor kitchen has a built-in barbecue, mini-fridge, and “recessed” grotto including a TV and full-sized bath. The pool area also features a stone fireplace and gas ambient heaters.

The home is being listed by Laura Simmons of Weichert Realtors.

A gated Beverly Hills, Calif., compound that was once home to Elvis Presley and wife Priscilla has been leased out for $20,000 a month.

The French Regency-style estate, built in 1958, sits on 1.18 acres in the Trousdale Estates area of Los Angeles. Recently remodeled, the 5,367-square-foot house has new flooring, a new kitchen and laundry room, and a resurfaced pool and spa.

A guesthouse is attached to the four-bedroom, five-bathroom main home.

The property had been listed for lease at $25,000 a month.

Source- HeraldNet

Forget stocks. Don't bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.

From his wide-rimmed cowboy hat to his roper boots, Mike Castleman fits moviedom's image of the lanky Texas rancher. On a recent March evening, Castleman is feeding cattle biscuits to his two pet longhorn steers, Big Buddy and Little Buddy, on his 460-acre Bar Ten Creek Ranch in Dripping Springs, a hamlet outside Austin in the Texas Hill Country. The spread is a medley of meandering streams, craggy cliffs, and centuries-old oaks. But even in this pastoral setting, his mind keeps returning to a subject he knows as well as any expert around: the housing market. "I'm a dirt-road economist who sees what's happening on the ground, and in 35 years I've never seen a shortage of new construction like the one I'm seeing today," declares Castleman, 70, now offering a biscuit to his miniature donkey Thumper. "The talking heads who are down on real estate will hate to hear this, but America needs to build a lot more houses. And in most markets the price of new homes is fixin' to rise, not fall."

Castleman is in a unique position to know. As the founder and CEO of a company called Metrostudy, he's spent more than three decades tracking real-time data on the country's inventory of new homes. Each quarter he dispatches 500 inspectors to literally drive through 45,000 subdivisions from Baltimore to Sacramento. The inspectors examine 5 million finished lots, one at a time, and record whether they contain a house that's under construction, one that's finished and for sale, or a home that's sold. Metrostudy covers 19 states, or around 65% of the U.S. housing market, including all the ones hardest hit by the crash: Florida, California, Arizona, and Nevada. The company's client list includes virtually every major homebuilder and bank -- from Pulte (PHM) and KB Home (KBH) to Bank of America (BAC) and Wells Fargo (WFC).

The key figures that Metrostudy collects, and that those clients prize, are the number of homes that are vacant and for sale in each city, and the number of months it takes to sell all of them. Together those figures measure inventory -- the key metric in determining whether a market has a surplus or a shortage of new housing.

Today Castleman is witnessing an extraordinary reversal of the new-home glut that helped sink prices just a few years ago. In the 41 cities Metrostudy covers, a total of 78,000 houses are now either vacant and for sale, or under construction. That's less than one-fourth of the 343,000 units in those two categories at the peak of the frenzy in mid-2006, and well below the level of a decade ago. "If we had anything like normal levels of buying, those houses would sell in 2½ months," says Castleman. "We'd see an incredible shortage. And that's where we're heading."

If all the noise you're hearing about housing has you totally confused, join the crowd. One day you'll read that owning a home has never been more affordable. The next day you'll see news that housing starts have plunged to nearly their lowest level in half a century, as headlines announced in March. After four years of falling prices and surging foreclosures, it's hard to know what to think. Even Robert Shiller and Karl Case can't agree. The two economists, who together created the widely followed S&P/Case-Shiller Home Price indices, are right now offering sharply contrasting views of housing's future. Shiller recently warned that the chances were high for a further double-digit drop in U.S. home prices. But in an interview with Fortune, Case took a far brighter view: "The lack of new home building is a huge help that a lot of people are ignoring," says Case. "People think I'm crazy to be optimistic, but housing is looking like the little engine that could."

To see where real estate is truly headed, it's critical to keep your eye firmly on the fundamentals that, over time, always determine the course of prices and construction. During the last decade's historic run-up in prices, Fortune repeatedly warned that things were moving too fast. In a cover story titled "Is the Housing Boom Over?," this writer's analysis found that the basic forces that govern the market -- the cost of owning vs. renting and the level of new construction -- were in bubble territory. Eventually reality set in, and prices plummeted. Our current view focuses on those same fundamentals -- only now they're pointing in the opposite direction.

So let's state it simply and forcibly: Housing is back.

Two basic factors are laying the foundation for dramatic recovery in residential real estate. The first is the historic drop in new construction that so amazes Castleman. The second is a steep decline in prices, on the order of 30% nationwide since 2006, and as much as 55% in the hardest-hit markets. The story of this downturn has been an astonishing flight from the traditional American approach of buying new houses to an embrace of renting. But the new affordability will gradually lure Americans back to buying homes. And the return of the homeowner will start raising prices in many markets this year.

Of course, home prices are low and home construction is weak for a reason: incredibly low demand. For our scenario to play out, America will need a decent economy, with job creation and consumer confidence continuing to claw their way back to normal.

One big fear is that today's tight credit standards will chill the market. But we're really returning to the standards that prevailed before the craze, and those requirements didn't stop prices and homebuilding from rising in a good economy. "The credit standards are now at about historical levels, excluding the bubble period," says Mark Zandi, chief economist for Moody's Analytics. "We saw prices rising with fundamentals in those periods, and it will happen again."

To see why, let's examine the remarkable shift in home affordability. A new study by Deutsche Bank measures affordability in two ways: first, the share of income Americans are paying to own a home. And second, the cost of owning vs. renting. On the first metric, the analysis finds that homeowners now pay just 9.8% of their income in after-tax mortgage, tax, and insurance payments. That's down from 17.2% at the bubble's peak in 2007, and by far the lowest number in the Deutsche Bank database, going back to 1999. The second measure, the cost of owning compared with renting, should also inspire potential buyers. In 28 out of 54 major markets, it's now cheaper to pay a mortgage and other major costs than to rent the same house. What's most compelling is that in all of the distressed markets, owning now wins by a wide margin -- a stunning reversal from four years ago. It now costs 34% less than renting in Atlanta. In Miami the average rent is now $1,031 a month, vs. the $856 it costs to carry a ranch house or stucco cottage as an owner. (For more, see The top 10 cities for home buyers)

Not all markets will bounce back equally, of course. Housing resembles the weather: The exact conditions are different in every city. But in general the big U.S. markets fall into two different climate zones right now. We'll call them the "nondistressed markets" and the "foreclosure markets." A more detailed look shows why the forecast for both is favorable.

Nondistressed markets: Ready for launch

No cities went untouched by the collapse in prices over the past few years. But markets such as Northern Virginia, Indianapolis, Minneapolis, San Diego, the San Francisco suburbs, and virtually all of Texas held up reasonably well. In those areas prices spiked far less than in bubble cities -- the foreclosure markets we'll get to shortly -- chiefly because they didn't get nearly as many speculators who thought they could flip the homes or rent them to snowbirds.

The nondistressed markets will be able to get prices rising and construction growing far faster than the harder-hit areas for a simple reason: Although some of these markets are still suffering from foreclosures, they don't need to work through the big overhang haunting a Las Vegas or a Phoenix. The number of new homes for sale or in the pipeline is extraordinarily low in nondistressed markets. San Diego is typical. It has just 921 freestanding homes for sale or under construction, compared with 4,425 in late 2005. The challenge for these cities is to generate enough demand to reduce inventories of existing, or resale, homes. In the entire country the resale supply stands at 3.5 million houses and condos. That's a fairly high number, since it would take more than eight months to sell those properties; seven months or below is the threshold for a strong market.

But in the nondistressed cities, the existing home inventory is lower, closer to seven months on average. So a modest increase in demand will translate into strong gains in both prices and new construction. That should happen quickly, because most of those markets -- including Silicon Valley, Northern Virginia, and Texas -- are now showing good job growth.

Zandi of Moody's Analytics expects that prices will rise three to four points faster than inflation for the next few years in virtually all of the nondistressed markets. His view is that prices will increase in line with rents, which are now growing briskly because apartments are in short supply. Those higher rents will encourage buyers to cross the street from an apartment to a home of their own.

In Northern Virginia, Chris Bratz, an engineer, and his wife, Amy DiElsi, a publicist, are planning to leave their rental apartment and become homeowners for the first time. The main reason? Buying has simply become a far better deal than renting. "The market got completely inflated, then it crashed, so prices are coming back to where they should be," says Chris. As the couple have watched prices fall, they have also watched the rent on their apartment spiral upward, reaching $2,700 a month. They calculate that they should be able to purchase a townhouse for between $400,000 and $500,000 and pay less per month for a mortgage.

The nondistressed markets will also lead the way in construction. Zandi predicts that for the nation as a whole, single-family housing "starts" -- measured when a builder pours a foundation for a new home -- will rise from 470,000 in 2010 to as much as 700,000 this year. A large portion of that activity will happen in nondistressed markets where a tightening supply of resale houses will start making new homes look like a good deal. "Our main competition is from resales," says Jeff Mezger, CEO of KB Home. "The prices of those homes have stayed so low, because of low demand, that it's hampered the ability of builders to sell new houses."

But many would-be buyers simply prefer a brand-new house. Eventually they'll move from renters to buyers, and the trend will accelerate now that prices are no longer dropping. In Minneapolis, Yuan Qu and her husband, Xiang Chen, a researcher at the University of Minnesota, just moved from a two-bedroom rental to a new light-blue four-bedroom ranch with a chocolate-colored roof on a spacious corner lot. They paid $400,000, a bargain price compared with a few years ago. The couple, both in their early thirties, moved to Minnesota from China six years ago. "We wanted to buy a house, and we've been waiting and waiting and waiting," says Qu. "The prices went down for so long, we finally thought they couldn't keep falling." For Qu the only choice was new construction. "We're not very handy people," she admits.

Foreclosure markets: The outlook is brightening

The true disaster areas for housing since the bubble burst have been Sunbelt cities such as Las Vegas, Phoenix, and Miami -- places that boasted great job and population growth in the mid-2000s, only to suffer a housing crash that swamped them with empty homes and condos and crushed their economies. But people always want to live in those sunny locales, and their job markets are starting to recover, albeit slowly. In foreclosure markets the inventory problem is far greater because it includes not just traditional resale homes but millions of distressed properties. Fortunately those houses are now such a screaming deal that investors, including lots of mom-and-pop buyers, are purchasing them at a rapid pace. To be sure, some foreclosure markets won't rebound for years because they're both vastly overbuilt and far from big job centers; a prime example is California's Inland Empire, a real estate disaster zone 80 miles east of Los Angeles.

But the outlook is brightening for Phoenix, Las Vegas, Miami, and parts of Northern California. A big positive is the tiny supply of new homes entering the market. Phoenix, for example, has a total of just 8,100 new homes that are either for sale or under construction, down from 53,000 in mid-2006. The big test in these cities is absorbing the steady stream of distressed properties. The foreclosures put downward pressure on the market far out of proportion to their numbers because of markdown pricing. "We had levels of inventory even higher than this in 1990 and 1991," says MIT economist William Wheaton. "But they were traditional listings, not foreclosures, so they didn't create the big discounts you get with foreclosures."

Wheaton reckons that we'll see a flow of around 1 million foreclosures a year, at a fairly even pace, from now through 2013. That figure is frequently cited as evidence that the market is doomed for years in most foreclosure markets. Not so. The reason is that the vast bulk of those units, probably over 600,000, according to Gleb Nechayev, an economist with real estate firm CB Richard Ellis (CBG), are being converted to rentals either by investors or their current owners. Those properties are finding plenty of renters, since the rental market is still extremely strong across the country. Remember, the millions who lost their homes to foreclosure still need somewhere to live.

A typical investor is Alex Barbalat, a Russian immigrant who's purchased seven homes east of San Francisco in the towns of Bay Point, Antioch, and Pittsburg. His average purchase price is around $100,000 for homes that once sold for between $300,000 and $500,000. But he has no trouble finding renters, since his tenants can commute to jobs in San Francisco on the BART transit system. Barbalat is pocketing rental yields on the prices he paid of around 12%, and he's in no hurry to sell. "I'm holding them until prices drastically rise," he says.

Investment funds are also entering the game. Dotan Y. Melech looks for bargains in Las Vegas for UnitedAMS, a firm he co-founded that manages apartments and other real estate investments. The firm has raised more than $20 million from outside investors to purchase distressed properties. So far, Melech has bought around 300 houses and plans to purchase another 200 this year. He has no trouble renting the houses he buys, since, he estimates, occupancy rates in Las Vegas are touching 95%. The "cap rate," or return on investment after all expenses, is between 8% and 10% -- twice the rate on 10-year Treasuries. Melech rents to people who lost their homes but are reliable renters. "A lot of people can't be buyers because their credit got hurt," he says.

Even with investors jumping in, buying activity in foreclosure markets hasn't yet increased enough to bring inventories down. It will soon. Zandi thinks prices will fall a couple of percentage points lower in the distressed markets in the short run. "But that will be overshooting," he says. "It's like an elastic band. If prices do drop this year, they will need to bounce back because they'll be far too low compared with rents and replacement cost." Renters will come off the sidelines to purchase homes in the years ahead, precisely the opposite trend of the past few years.

Consider the example of Michael Dynda, a retired Air Force avionics technician who now works for a government contractor in Las Vegas. Dynda, 49, is a first-time buyer who put off purchasing for years, in part because prices were falling so rapidly in Las Vegas, with no bottom in sight. But last year the combination of bargain prices and low mortgage rates became too good to resist. He ended up purchasing a 2,300-square-foot stucco home for $240,000, or about half what it would have fetched in 2007. Dynda got a 4.38% home loan, and pays the same amount on his mortgage as on the rent on the house he left to become a homeowner. "The timing was about as good as it could get," says Dynda.
Back on the ranch, Mike Castleman is lounging in his creek-front mansion, built from "a hundred tons of fine central Texas limestone." As he shows off his collection of custom-made guitars, including one crafted to resemble the skin of a rattlesnake, the homespun housing guru once again returns to his favorite topic.

Castleman claims that this recovery will look like all the others: It will bring a severe shortage of housing. He invokes the livestock business to explain. "It takes three years between the time a bull mates with a cow and when you get a calf ready for market," he says. "That's how it is in housing too. We'll get a big surge in demand and the drywall companies will take a long time to ramp up, and it will take years to get new lots approved. Buyers will show up looking for a house in a subdivision, and all the houses will be sold. The builders will tell them it will take six months to deliver a house." But those folks, says Castleman, will be set on buying a place. "And they'll want it so bad they'll bid the prices up!" In other words: Beat the crowd.

Source- CNNMoney.com

With More than 60 percent of L.A. LIVE Homes in Escrow, Nation's Leading Hotel
and Residential Tower Takes Home Another Prestigious Industry Accolade

LOS ANGELES — The award-winning Hotels and Residences at L.A. LIVE have earned the U.S. Green Building Council's (USGBC) Silver Leadership in Energy and Environmental Design (LEED) certification for the AEG development's strategic, sustainable design and green innovation.

This prominent distinction recognizes the landmark L.A. LIVE 54-story high-rise tower, housing The Ritz-Carlton Residences at L.A. LIVE, The Ritz-Carlton, Los Angeles, and the JW Marriott Los Angeles at L.A. LIVE, as an environmentally responsible, profitable and healthy place to live and work. Designed by California-based architecture firm Gensler, the residential tower spans a total two million square feet on 2.5 acres of land and contains more than 1,000 hotel rooms and 224 first-class private residences.

"This innovative building represents what is great about Los Angeles today, and also provides a view of the city's blueprint for tomorrow," said Lance Williams, Executive Director of USGBC-LA, the organization that awarded the residential tower the Silver LEED distinction. "It's the perfect intersection of sophistication and sustainability."

In addition to its convenient proximity to several city transit stations, other strategic features that qualified The Hotels and Residences at L.A. LIVE for the Silver LEED distinction include:

* Energy-efficient windows, designed to maximize daylight
* Water-saving plumbing fixtures and filtering of storm water runoff, keeping waterways clean
* Cool roof installation, covered parking and water-efficient rooftop landscaping, reducing heat island effects
* Use of low-volatile organic compound materials to minimize in-air toxins
* Offering a wide range of alternative transportation opportunities, including bicycle support, discounted parking for low-emitting and fuel-efficient vehicles, carpools and vanpools, an employee rideshare program, and extensive public transportation within walking distance
* Use of recycled materials throughout the building, in addition to the major use of recycled steel in the building's overall construction
* Recycling areas on every floor of the tower and at the building's main loading dock

"L.A. LIVE is all about providing the best in entertainment, accommodations and services through its first-class hotel, residences and restaurants," said Timothy J. Leiweke, president and CEO of AEG, developer of L.A. LIVE. "As we have demonstrated with the STAPLES Center and L.A. LIVE, AEG is committed to building the most environmentally sustainable venues, an effort further underscored by our newest development earning this prestigious distinction."

The recent completion of The Ritz-Carlton Residences at L.A. LIVE achieved developer AEG's original vision for the project and downtown Los Angeles. The Residences have experienced tremendous sales success, with its first residents moved in, and more than 60 percent of its 224 residences in escrow.

The Silver LEED certification represents AEG's ongoing commitment to sustainability as part of the AEG 1EARTH program and adds to L.A. LIVE's myriad awards and accolades received within the past six months by industry leaders. The project's distinctions include the Urban Land Institute's "Global Award for Excellence," Luxury Real Estate's "Best New Community," Americas Lodging Investment Summit's "2010 Development of the Year" award, and most recently, "Building of the Year," by Downtown News.

About The Ritz-Carlton Residences at L.A. LIVE

The Ritz-Carlton Residences at L.A. LIVE is one of the first luxury-branded residences in Los Angeles, offering exclusive "All-Access Living" in the heart of the exciting new sports and entertainment district L.A. LIVE. Residents enjoy privileged access to five-star lifestyle experiences, including services of The Ritz-Carlton Hotel, such as a dedicated residential concierge/doorman, valet parking and VIP status with The Ritz-Carlton Hotel guest relations.

For residents, just an elevator ride away are unparalleled amenities, including a world-class restaurant, residential sky lobby with landscaped terrace, private heated rooftop pool, state-of-the-art spa and fitness center, and exclusive residential lounge, with private board room and media room.

Source- allaccessliving.com

Christina Aguilera has put her 11,500-square-foot gated mansion in Beverly Hills on the market at $13.5 million.

Set on nearly two-thirds of an acre, the Mediterranean-style home has a grand foyer with a sweeping staircase, a fanciful children's room, a gym, a game room, a gift-wrapping area, a movie room, a beauty salon, a guesthouse with a recording studio, and a total of six bedrooms and nine bathrooms. The master bedroom suite contains a lounge, a fireplace and dual bathrooms and closets. Outdoor entertaining areas include a pagoda and a swimming pool with a waterslide and grotto spa.

Aguilera, 30, will be a judge on NBC's upcoming singing competition show "The Voice," in which blind selections will be made solely on a contestant's audition sound. She has won Grammys for hits including "Ain't No Other Man" and "Candyman" and she starred with Cher in "Burlesque" (2010).

The property was purchased from Ozzy and Sharon Osbourne in 2007 for $11.5 million, according to public records.

Brooke Kaufman of Hilton & Hyland, Beverly Hills, is the listing agent.

'Not too much fuss' in Los Feliz

Actress Ashley Jensen and her husband, actor Terence Beesley, have listed their Los Feliz-area home for sale at $1,999,000.

Jensen, who is from Scotland, and Beesley, from England, have used the midcentury house to host visitors from Britain and to entertain.

"We wanted a house that we knew we were in L.A.," Jensen said. "There's an amazing view of not only the cityscape, but you can also see the sea on certain days."

The 2,404-square-foot home incorporates steel, tile and glass in a minimalist approach. "It's not too much fuss," she said. There are three bedrooms and 21/2 bathrooms.

Jensen liked living near the studios when shooting her scenes as seamstress Christina on "Ugly Betty" (2006-10). "Yet you feel like you are in the middle of the countryside and you have deer and skunks," she said. "You are in among nature, yet you can walk to the grocery, bars, restaurants and can even walk to the farmers market."

The pair put in an infinity pool that has a view of Hollywood, and Beesley designed the terrace and exterior space. "We tried to make it … David Hockney," Jensen said of the pool. "On bright shiny days it's very blue."

They are selling because they would like a house that is more toddler-friendly with a flat lawn.

Jensen was in the recently released "Gnomeo & Juliet" and is working on other animated projects while splitting her time between L.A. and London. Beesley is writing a pilot.

Public records show the property was purchased in 2007 for $1.65 million.

Jacqueline Gowers of Sotheby's International Realty, Los Feliz, is the listing agent.

It's not 'The O.C.,' it's the BHPO

Actress and model Mischa Barton has her Beverly Hills Post Office area compound for sale at $8,695,000 or for lease at $30,000 a month.

The main house and three guesthouses have a total of eight bedrooms, 10 bathrooms and six fireplaces in nearly 9,800 square feet of living space. The 1.2 acres include a swimming pool and spa.

Barton, 25, starred in "The Beautiful Life" (2009) and "The O.C." (2003-06).

Ginger Glass of Coldwell Banker, Beverly Hills North, has the listing.

Fit for the king of the forest

A Beverly Hills home originally built for Bert Lahr, who played the cowardly lion on "The Wizard of Oz," is on the market at $28.5 million.

Designed by Paul R. Williams in 1941, the gated estate sits on 1.3 park-like acres. The 12,000-square-foot main house includes a media room with wet bar, a wine cellar and tasting room, six bedrooms, seven bathrooms and three half-baths. A 3,000-square-foot secondary house, with its own driveway, has two bedrooms and 21/2 bathrooms. A third newly built structure contains a two-lane bowling alley, game room, bar and half-bath.

Among other celebrities who have called the compound home were actress Betty Grable, band leader Harry James and actress Melanie Griffith.

Lahr, who died in 1967 at 72, was an actor and a comedian. He won a Tony for his role in the musical "Foxy" in 1964.

Before its current renovation and expansion, the property sold in 1999 for $2.55 million, according to public records.

Joe Babajian and Michelle Ficarra of Rodeo Realty, Beverly Hills, are the listing agents.

A steal in Manhattan Beach

Update: Former Laker Chris Mihm has sold his Manhattan Beach house for $2.07 million.

The custom Mediterranean, built in 2002, has a 25-foot-high entry, a coved ceiling in the formal dining room, a game room, 8-foot-high doors and an island with seating in the kitchen. The villa, more than 4,300 square feet, includes five bedrooms and 51/2 bathrooms.

Mihm, 31, played for the Lakers from 2004 until 2009, before he went to the Memphis Grizzlies and was sidelined by an injury.

He bought the property in 2004 for $2.16 million.

Chad Fahlbusch of Northwest Realty, Manhattan Beach, was the listing agent.

Monrovia house has novel history

The house that social reformer and novelist Upton Sinclair lived in during the 1940s through the '60s is for sale in Monrovia at $1.5 million.

Built in 1923, the Spanish Colonial Revival-style residence is listed on the National Register of Historical Places and is a National Historic Landmark. High arched windows, Mission Revival roof parapets and an ornate arched doorway are among the original features. French doors open off the living room and formal dining room to a covered side patio. A grand staircase leads to the three bedrooms, and both bathrooms have Batchelder tile. A guesthouse sits in the backyard.

The 2,380-square-foot house last changed hands in 2002 for $725,000.

Sinclair, who died in 1968 at 90, rose to fame for his novel "The Jungle" (1906), which looked at meat packing industry conditions. He won the Pulitzer Prize for fiction for "Dragon's Teeth" (1942).

Cecilia Farnum of Century 21 Adams & Barnes is the listing agent.

Source- Los Angeles Times

The insurance programs would make borrowers' mortgage payments for up to six months if they become unemployed during the coverage period.

Insurance programs that make borrowers' mortgage payments for up to six months if they lose their jobs during an initial one- to two-year coverage period are gaining popularity. Home builders are offering it to new buyers, and some of the country's largest banks and mortgage lenders think it's a win-win idea for shaky economic times.

Better yet, the bank, builder or other sponsor of the plan typically provides it free — no direct, out-of-pocket cost to the consumer — as part of its marketing package. Most programs come with specific dollar ceilings on coverage, often ranging from $2,000 to $2,500 a month. Some limit the amount they'll pay to principal and interest only. Others cover principal, interest, property taxes and homeowners insurance up to a specific amount.

Although there are no hard statistics on the number of such plans in the marketplace, Teri Cooper, executive vice president of Mortgage Payment Protection Inc. of Heathrow, Fla., one of the largest providers of "involuntary unemployment" policies, estimates that as many as 200,000 buyers are covered by her firm's Mortgage Guardian programs alone.

Bank of America, which operates a "borrower protection plan" that the bank funds itself, says it has covered thousands of new mortgages — limited to those with initial principal balances less than $500,000. Terry H. Francisco, a spokesman for the bank, said the plan has covered $110 million in monthly payments for unemployed borrowers during the last two years. During 2010, the bank provided 156,000 purchasers with its protection program; as of last December, mortgages covered by the plan totaled $36 billion in loan balances.

In the Seattle-Puget Sound market, Quadrant Homes, a subsidiary of Weyerhaeuser Real Estate Co., recently began offering an insurance plan as a way to reassure buyers that they'd be able to withstand an unexpected job loss.

With unemployment figures scarily high, said Ken Krivanec, Quadrant's president, "we wanted to give our buyers a little of the confidence they might need" to move ahead with a purchase.

Virtually all involuntary unemployment programs charge borrowers nothing for the coverage directly, but there's often plenty of fine print that limits payouts under certain circumstances.

Here's a look at some of the features that buyers and borrowers should focus on when they're offered free job-loss mortgage insurance.

•Obviously, nothing is truly free. The lender or builder typically is paying a wholesale insurance premium to obtain the coverage, and rolls that into the deal somewhere. In the case of Mortgage Guardian's programs, premiums range from $200 to $300 and up per policy, depending on the expected volume of insurance, the length of the coverage and the size of the insured monthly payment.

•Not all unemployment events are equal. Under most plans, you need to be eligible under state law for unemployment benefits, and you need to successfully apply for them. Also, the layoff or plant closing or other event cannot have been known to you in advance of the mortgage closing. Firings and dismissals for cause are not covered.

•Not all employment is equal either. For example, if you are self-employed, or are a temporary or seasonal worker, you probably won't be eligible for benefits.

•Once you've closed escrow, there's a 60-day vesting period in the Mortgage Guardian program. Then insurance payments can't flow until 30 days after unemployment begins.

•For virtually all programs, once the initial period of coverage is up, homeowners are expected to either pay premiums on their own or look elsewhere for insurance. Bank of America's plan, for instance, is free for the first year. After that, extended coverage is available at the rate of 7.5% of the monthly principal and interest due, Francisco said. In Quadrant's program, "coverage ends 24 months after the closing date and cannot be extended by the buyer or Quadrant Homes."

Another key fact to keep in mind about job loss insurance for mortgages: It is generally not available direct to the consumer. Cooper says her firm works only through participating lenders, builders, mortgage insurers and some state housing agencies that can create the volume of business needed to make the insurance risk-pooling feasible.

Bottom line: If you understand the limitations and read the fine print, job loss coverage can be a "why not?" proposition. The builder or lender offering it is paying premiums at rates unavailable to individual consumers, and the coverage — if you qualify — is for real if you suddenly find yourself without employment.

Source- Los Angeles Times

Ten of the builder's new Southern California developments will have solar panels incorporated as a standard feature on each house.

In a nod to the growing popularity of sun-powered houses, Los Angeles-based KB Home said it was rolling out 10 new Southern California developments that would have solar panels incorporated as a standard feature for each property.

The homes will be outfitted with six-panel photovoltaic solar systems built by SunPower Corp. The standard system will be capable of producing about 30% of daily energy use for an 1,800- to 2,000-square-foot home, said Steve Ruffner, president of KB Home's Southern California division. Potential buyers will have the option of upgrading to systems as large as 14 panels, which could cut electricity bills to zero, he said.

Although the solar panel industry has grown rapidly in recent years, particularly in California, the move to incorporate solar panels as part of a development was noteworthy because the market for newly built homes remains dismal, analysts said.

"It's definitely meaningful that they are doing this and particularly meaningful because there hasn't been a lot of home construction," said Shayle Kann, managing director of solar research for GTM Research. "To do something that adds up-front costs to a new home, but saves it money over the long-term by ways of lower electrical costs, is an important step."

KB Home has provided solar power systems as an option for buyers in the past, but this will be the first series of developments with solar energy systems as standard. The company is testing the waters for the popularity of these developments and may expand beyond the Southland if successful.

"The reason we're are trying it here is because there is a great interest in solar power, because of the amount of sunshine we get per day," Ruffner of KB Home said. "We will see how it performs and what the customer demand is."

The 10 new developments will be rolled out this year and in early 2012. The developments are being built in Eastvale, Chula Vista, Temecula, Lancaster, Santa Clarita, Chino, Valencia and Lake Forest. The homes will sell at a premium to new homes without solar systems, but Ruffner said the energy cost savings of having the panels incorporated in the design made them worth it.

Source- Los Angeles Times

McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey (PMMS), which shows the 30-year fixed-rate dropping to 4.76 percent while the 15-year fixed-rate hit its lowest rate at 3.97 percent since December 2010.

30-year fixed-rate mortgage (FRM) averaged 4.76 percent with an average 0.7 point for the week ending March 17, 2011, down from last week when it averaged 4.88 percent. Last year at this time, the 30-year FRM averaged 4.96 percent.

15-year FRM this week averaged 3.97 percent with an average 0.7 point, down from last week when it averaged 4.15 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.57 percent this week, with an average 0.6 point, down from last week when it averaged 3.73 percent. A year ago, the 5-year ARM averaged 4.09 percent.

1-year Treasury-indexed ARM averaged 3.17 percent this week with an average 0.6 point, down from last week when it averaged 3.21 percent. At this time last year, the 1-year ARM averaged 4.12 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, reports, "With the crisis in Japan, investors rushed to buy the security of U.S. Treasury bonds , which lowered its yields and other interest rates as well. This allowed fixed mortgage rates to drift lower this week."

"In aggregate, families have been strengthening their balance sheets. In the fourth quarter of 2010, household net worth rose by $2.1 trillion, boosted by gains in the stock market. This helped lower their financial obligation ratio (debt payments relative to disposable income) to the lowest level since the first quarter of 1995." Today's Local Market Conditions Report

Source- Yahoo Real Estate

Earthquake insurance is expensive and limited, but standard California coverage would pay for a no-frills shelter should a temblor damage your home.

Japan's massive earthquake has created a surge of interest in quake insurance in a place more than 5,000 miles away — California.

"Earthquakes are clearly on the top of people's minds," said Glenn Pomeroy, chief executive of the California Earthquake Authority, a nonprofit group designed to make quake coverage available to any Californian who wants it.

"The images coming out of Japan are surreal, and the news just keeps getting worse and worse. This has riveted people's attention like no event I can remember."

Only about 12% of Californians with home insurance have quake coverage. And the percentage of people who buy quake insurance in other states — including those with active faults — is far lower.

Should you buy quake coverage?

There's no clear answer. The problem is that quake coverage is costly and limited. Experts say that it takes careful analysis to decide whether the expense is worth the potential benefits.

Although coverage varies state by state — and sometimes from one insurer to the next — it's important to look at what the coverage costs, covers and excludes. Let's take a close look at California's standard earthquake policies to see how dramatically this coverage differs from standard home insurance.

Cost

The only thing you can say for sure about earthquake coverage is that it's expensive.

But the price can vary depending on a number of factors. Quake coverage is generally priced at the higher end for older homes, homes made of masonry or brick, homes that have multiple stories, and homes that sit on sandy alluvial soil that's less stable than clay or rock.

Consider the costs for a policy overseen by the California Earthquake Authority. A $500,000 policy for a one-story home in Beverly Hills would cost $648 if the home had been recently constructed of wood. But the same policy would cost more than three times as much — $1,962 — if the home was constructed of masonry or brick.

There's an online calculator on the California Earthquake Authority site (www.earthquakeauthority.com) that can be used to help estimate the cost of a policy, depending on various factors.

Deductibles

A fire or home insurance policy usually sets the deductible at a dollar amount. But the deductible on a quake policy is usually by percentage — typically 10% or 15% of the structure's replacement cost. So, if you buy a $500,000 policy, it would not begin paying until your covered losses exceeded $50,000 for a 10% deductible policy or $75,000 on a 15% deductible.

Coverage

The purpose of most earthquake coverage is to get a roof over your head, Pomeroy said. It isn't aimed at getting your home back to the same shape it was in before the disaster.

Although the structure of a home and attached garage would generally be covered, after deductible, the walkways, driveways, decks and patios would be covered only to the extent that they provide safe passage into or out of your home. Swimming pools and landscaping would not be covered.

Decorative brick and masonry would not be covered. The policy would pay to button up the structure with stucco or wood to keep out the cold, but you would be on your own if you wanted to replace the decorative stonework that made your home more elegant.

Likewise, the policy would pay to replace a stained-glass window in the bathroom or foyer door, but only with an ordinary window.

If your home is made of plaster, the policy would repair the plaster on the outside, but it would pay only for drywall for the inside walls. The policy also excludes coverage for detached structures, such as guesthouses and pool houses. If your chimney falls down, the policy would pay $5,000 to repair it. If it costs more, the additional cost is yours alone.

The contents of your home are covered to the limits of your policy, but again, there are numerous exclusions — such as china and crystal and many other items that are likely to break.

"What we try to do is make sure that people will have shelter," Pomeroy said, "but the policy is not the Cadillac of all Cadillacs."

Source- Los Angeles Times

It's no easy job, being the lungs of Los Angeles.

But Griffith Park, the foremost green space in a city notorious for meager parkland and abundant smog, endures bravely, maybe even heroically. Venture into the park, or nearby Elysian Park, or one of the creative neighborhoods in between, and you'll find not only beloved landmarks such as Griffith Observatory and Dodger Stadium, but also happy surprises, such as the time-travel supply shop, or the cafe where cops dine daily to the sound of echoing gunfire, or the Korean greetings that echo at dawn every day atop Mt. Hollywood.

The more time you spend in these occasionally gritty, mostly gentrified neighborhoods around the park — Silver Lake, Los Feliz and Echo Park — the more you realize that they're incubators of American pop culture. Thousands who live here work onstage and off in movies and TV, make music, art and theater, keep up with the interwebs and savor all things ironic (including the nonword "interwebs," a.k.a. the Internet to the rest of us). Yes, Hollywood is glitzier and Beverly Hills is richer. But who's cooler? These 10 micro-itineraries, the third in a series that concentrates on Los Angeles and Orange counties, might help you decide.

And while you're at it, maybe you can decide what to call these people. Many call themselves Eastsiders, which sounds great but annoys people who live east of the Los Angeles River in the area long known as East L.A. Maybe we should call this the Near East instead. Or maybe, given that Griffith Park, Echo Park, Elysian Park and the Dodgers' ballpark all rub against one another, these people are Parksiders.

From the ferns to the stars. In 1896, mining magnate Griffith J. Griffith donated 3,015 hilly acres that became L.A's biggest park. Later he put up the money for Griffith Observatory and the Greek Theatre. And in between donations, the hard-drinking Griffith shot his wife in the face (it wasn't fatal) and served two years in prison. But you're here to hike, not judge. Drive to the shady corner of Griffith Park known as Ferndell (or Fern Dell, depending on the source), park by the Trails Café, then head uphill. Yes, on foot. Follow the West Observatory Trail for about a mile up the scrubby hills until — voilà! — three domes and a flawless lawn appear. That's Griffith Observatory, the city's hood ornament. It opens at 10 a.m. on weekends, noon on Wednesdays, Thursdays and Fridays. Browse the wonders of science within the 1935 building, which reopened in 2006 after a dramatic addition, mostly underground, that added dozens of exhibits and a cafe. Though shows in the Samuel Oschin Planetarium cost $3-$7 a person, most of the building is free. Outside again, savor one of the city's best views. Check out the bust of James Dean. (His 1955 movie "Rebel Without a Cause" includes scenes here.) Then head back down the hill to the Trails Café and its outdoor picnic tables, avocado sandwiches, vegan chili and homemade baked goods. Your kids — the same kids who begged you to carry them down the hill — will soon be hopping among the stumps and hay bales.

Modernism, murder and "Snow White." Silver Lake, a series of hills surrounding a scenic pair of reservoirs five miles northwest of downtown L.A., is where many of America's leading Modernist architects first made their marks from the 1930s to the '60s, working on sloping lots because they were cheaper. Walt Disney built his first studio and made "Snow White" at 2725 Hyperion Ave. (now occupied by a Gelson's supermarket). And in 1969, Charles Manson and followers drove here and killed Leno and Rosemary LaBianca in their home on Waverly Drive. For more on Disney and Manson, and much more on the architectural legacy of Richard Neutra, Rudolf Schindler and others, sign on for a two-to-three-hour tour from Laura Massino Smith, founder of Architecture Tours L.A. After a cup at LAMILL Coffee Boutique (1636 Silver Lake Blvd.) and a stroll along the east or west reservoir footpaths, you meet Massino Smith, who wheels you through the hills in her minivan, spinning the stories behind the dozens of homes whose open floor plans, big windows and spare geometry were revolutionary in their time. In the 2300 block of Silver Lake Boulevard, you go pedestrian to explore a colony of Neutra buildings (including his former home, which is open for tours 11 a.m.-3 p.m. most Saturdays). Atop Micheltorena Street, you glimpse the craziest tennis court ever, cantilevered from a hilltop as part of the Silvertop estate designed by John Lautner.

Cops and Dodgers. Elysian Park, near downtown, is home to Dodger Stadium. But first, take Stadium Way or Echo Park Avenue to Academy Road. And pretty soon — boom! — you're at the Los Angeles Police Academy, where you're likely to hear shots from the nearby firing range. Show up between 6 a.m. and 2 p.m. on a weekday, and you can eat at the L.A. Police Academy Revolver & Athletic Club's café, where the 9mm burger is a bargain at $5.95. Don't miss the old photos, nightsticks, handcuffs, brass knuckles and true-crime magazines on the walls. If you get a chance, thank a cop. The city's crime rate has been dropping since the early 1990s, and homicides happen about as often as they did in 1967, when the population was far smaller and Don Drysdale was pitching in the nearby stadium. Speaking of which: The Dodgers play 81 home games a year in Dodger Stadium (which dates to 1962), and if you can afford it (remember, you're paying the many divorce lawyers of owners Frank and Jamie McCourt), see one. But whether you do or not, consider a nightcap at the Short Stop on Sunset in Echo Park. For decades it was a cop bar, and it has a police patch collection by the pool table and a set of lockers where officers used to lock up their guns. The cops stopped coming a decade ago, and a younger, shaggier set has claimed the place. There's a jukebox, a batch of old Dodger pictures, a mirror ball hanging over the dance floor and a vintage photo booth. Mug shots, three bucks.

To the top of Hollywood. Rise before dawn. Get to the Griffith Observatory parking lot (which is free but fills fast). Start at the Charlie Turner Trailhead, just north of the lot, and hike uphill. You're climbing Mt. Hollywood, whose peak (1,625 feet) offers staggering views. It's a three-mile round trip through scrub and chaparral, the pines of Berlin Forest and the shady oasis of Dante's View. From the mountaintop on a clear day, you can see the sun rise to the east and a sliver of Pacific to the west. Almost every day, you'll get an eyeful of the Los Angeles basin, the San Fernando Valley, the San Gabriel Mountains and the Hollywood sign on nearby Mt. Lee. (There's no hike to the Hollywood sign, and no access to it. Do this instead.) As the mist lifts from the ridges, listen to the birdsong — and the Koreans. Dozens of Korean Americans like to begin their days with hikes here. So does City Councilman Tom LaBonge, who hollers greetings in their language and carries a football on his dawn hikes. He's been on this trail daily since 1978.

The village of Los Feliz. Do happy people live in Los Feliz? Well, some. But the area got its name from José Vicente Feliz, an 18th century settler who received this real estate through a Spanish land grant. The Greek Theatre, home to many summer concerts, is a few blocks north of the commercial district on Vermont and Hillhurst avenues. Barnsdall Art Park (including Frank Lloyd Wright's Hollyhock House and a picnic-ready grassy knoll at 4800 Hollywood Blvd.) is a few blocks south. Once you snag a parking spot (or arrive at the Sunset-Vermont Metro stop), walk Vermont between Franklin and Prospect avenues. Begin with people watching and caffeination in a sidewalk seat at Figaro (1802 N. Vermont Ave.), which carefully cultivates its French flavor, or Fred 62 (1850 Vermont Ave.), a 24-hour retro-kitsch diner with lime-green walls. Both draw celebrities and often show up on TV, and among customers at either, you may encounter attitude. (For larger outdoor dining areas and more people-watching, there's also Alcove Café at 1929 Hillhurst Ave. and Home restaurant at 1760 Hillhurst Ave.) Browse Skylight Books (1818 N. Vermont Ave.), and check this week's T-shirts at Y-Que Trading Post (1770 N. Vermont Ave.), where today's news is tomorrow's silk-screen theme. (Recent inspirations: the fragile states of Egypt and Charlie Sheen.) If you stay on the block for dinner or drinks, the dull façade of Dresden Restaurant (1760 Vermont Ave.; since 1954) conceals a neighborhood treasure: the lounge act of Marty and Elayne, who have been playing and singing, Tuesdays through Saturdays, sometimes in matching caftans, for nearly 30 years.

Cowboys, Indians, gorillas and elephants. The Los Angeles Zoo can't match San Diego's, but it's cheaper ($14 an adult), and it's right in Griffith Park. A new Asian elephant area opened in December, but the best entertainment is still the Campo Gorilla Reserve, where your kids might get within inches of a gorilla's nose (with a thick viewing window in between). Their near-human attributes (we mean the gorillas) are endlessly absorbing. If you're more interested in human doings, the Autry National Center's Museum of the American West, just across the street, may surprise you. It covers not only Indians, cowboys and other newcomers but also pop culture's portrayal of them. And it has a great gift shop full of books, art, music, blankets and belt buckles.

Tchotchkes and tiki. You owe somebody a gift, right? Perhaps a grown-up pop-culture sort of gift, not necessarily in good taste? Step into the vast and semi-subversive retail wonderland known as Soap Plant / Wacko and the Luz de Jesus Gallery (all at 4633 Hollywood Blvd.) in Los Feliz. Tiki tchotchkes, concert posters, Beatles lunchboxes, Bozo kazoos, rubber frog handbags — they're all here in a former post office building, along with many picture books not suitable for children. After shopping, get a bite at Umami Burger (4655 Hollywood Blvd.), a block to the northwest. And then it's time to catch a movie at the Vista Theatre (4473 Sunset Drive; Spanish on the outside, Egyptian on the inside). Or maybe you'd rather head for a drink at Tiki Ti, three blocks southeast at 4427 Sunset. No beer, no wine, no credit cards. What you get are tiki drinks, about 90 of them, served since 1961 in a tiny, 12-stool space that fills up quickly. Important note: Smoking is allowed inside because all bar employees are part of the Buhen family, which owns the place. The Ti is usually open Wednesday nights through Saturdays, but every three months, the Buhens take three or four weeks off. So check before showing up. And once you're inside, certain drink orders will cause everyone around you to start yelling "Ooga-Booga!" Act as though you expected it.

Sunset Junction. Remember that weird spark Melrose Avenue had in the 1980s? Something like that is happening now at Sunset Junction, the stretch of Sunset Boulevard storefronts near Sanborn Avenue in Silver Lake. Slouching twentysomethings with high cheekbones and thrift-shop wardrobes. Budding authors and auteurs, poised over their MacBooks by the blue-and-white Nicaraguan tile work in Intelligentsia Coffee & Tea (3922 Sunset Blvd.) or listening to Jacques Brel under the parasols at the Casbah Cafe (3900 Sunset Blvd.). Now's your chance to inspect the 300 artisanal cheeses at the Cheese Store of Silverlake (3926-28 Sunset Blvd.), the 24 flavors of ice cream made from scratch at Pazzo Gelato (3827 Sunset Blvd.), the eight kinds of currywurst cooked at Berlin Currywurst (also at 3827 Sunset; opened in February). To soak it all up, find street parking (arrive early) or grab a spot in the little lot on Sanborn just west of Sunset. Lunch at Forage (3823 Sunset Blvd.). Listen for stray solos outside the Silver Lake Conservatory of Music (3920 Sunset Blvd., co-founded by Red Hot Chili Peppers bassist Flea). Browse the $12 shadow puppets at ReForm School (3902 Sunset Blvd.), the comic books at Secret Headquarters (3817 Sunset Blvd.), the music at Vacation Vinyl (3815 Sunset Blvd.), the mixological marvels at Bar Keeper (3910 Sunset Blvd.). You get extra points for coming on a Saturday morning, when the Silver Lake Farmers' Market sets up near Sunset and Edgecliff Drive. You lose those points if you show up unaware on the summer weekend of the annual Sunset Junction Street Fair (Aug. 27 and 28 this year), when live bands and vendor stalls take over the streets and as many as 75,000 revelers (paying $15-$20 each) crowd in.

The lake, the ladies, Taix and time itself. Echo Park, a blue-collar Latino neighborhood for decades, keeps getting trendier and more affluent. Start with a stroll around the Echo Park Lake — if there's water in it. (City officials plan to drain it for repairs, perhaps as soon next month.) Cruise the aged ladies of Carroll Avenue — that is, drive past the greatest concentration of well-tended Victorian homes in Los Angeles, seven blocks south of Sunset by way of Douglas Street. And walk Sunset between Echo Park Boulevard (where a striking Ricardo Mendoza mural wraps around a clinic building) and Taix (pronounced "tex"), the long-enduring French restaurant (1911 Sunset Blvd.) where Park Avenue comes to an end. You'll find stalwarts such as the Echo Park Pawn Shop (1702 Sunset Blvd.) and Pescado Mojado seafood (1701 Sunset Blvd.) jostled by newcomers such as the bookshop-café Stories (1716 Sunset Blvd.). The Echo and its downstairs sibling the Echoplex (1822 Sunset Blvd. and 1154 Glendale Blvd., respectively) are two of the city's leading venues for live rock music. El Prado (1805 Sunset Blvd.), once a dive bar, is now downright genteel (and plays mostly old vinyl on its sound system). On Thursday nights, the nonprofit Echo Park Film Center (1200 N. Alvarado St.) screens alternative and/or documentary films, asking only a $5 donation. But before the day gets away, you need to hit the storefront labeled Echo Park Time Travel Mart (1714 Sunset Blvd.) In the rooms behind, tutors from the 826LA organization (another nonprofit, part of a national network founded by author Dave Eggers) offer free academic help and writing workshops for students ages 6 to 18. Upfront, the outfit raises funds by selling supplies for time-travelers — like robot milk ($19.99 a bottle) and centurion helmets ($99.99 each). If you pretend this is all normal, the clerk at the counter will too.

By hoof and rail. Got kids? Proceed to the ponies near the southeast entrance of Griffith Park at Los Feliz Boulevard and Riverside Drive. There, Tuesdays through Sundays, your child (age 1 or older) can sit on a tethered pony (which will make eight circles for $3) or ride two laps, untethered, on a larger oval track (also $3). On weekends, the scaled-down Griffith Park & Southern Railroad carries children and parents for $2.50 a ride, and more trains await in Travel Town and at L.A. Live Steamers at the north end of the park. The park's biggest playground, Shane's Inspiration, is a short drive from the ponies, and along the way there's a spot to rent bikes and a historic merry-go-round that's open weekends all year and every day in summer. Show up around noon on a Sunday and between carousel tunes you'll hear a strange throbbing in the air. That's the Griffith Park drum circle, always free, frequently fascinating.

Source- Los Angeles Times

Designer Angie Thornbury remakes a Hollywood Hills ranch home with panoramic views into a trendy, modern space almost three times its original size.

Don't let the dance pole and two-story bar fool you. Although most of the Hollywood Hills homes designed by Angie Thornbury have been sold to bachelors, there's something for everyone in this house above the Sunset Strip.

Thornbury began renovating what was then a 2,400-square-foot ranch house three years ago, transforming the former tract home in the prestigious "bird streets" area of the Hollywood Hills into a trendy, modern space nearly three times its original size. She designed the house around the views that span from downtown Los Angeles to the Pacific Ocean and San Nicolas Island. The windows facing south and east take in unobstructed vistas, and even the mirrors in the living room are angled to reflect the views.

It's the fourth multimillion-dollar Hollywood Hills home that Thornbury and her son, real estate agent Cory Sheldon, teamed up to build and market.

"We do everything from start to finish," said Thornbury, whose other children also have a hand in the family business. Her daughter Liberté Chan, a KTLA-TV Channel 5 reporter, shoots video for marketing materials; her other son Randy Sheldon is a computer technician and informal consultant for all things related to computer integration technology, including how to adjust blinds, shades and lights from an iPad.

"Who else can you call at 3 a.m.?" Thornbury said about the perks of working with her children.

With high ceilings, gallery walls and French oak floors, the house is clean and contemporary without being cold. The ground floor was designed to emphasize open space, and the living room, dining room and game area are all connected as part of a "great room." Natural light pours in from seven skylights in the great room, and sidelights are strategically placed so not a single room in the house needs artificial light during the day.

The ground floor, which is actually the top floor, has square glass floor panels that offer a peek of the sleek two-story bar and lounge below. Dubbed the "white bar" for its white marble counters, white tile floors and white walls, the bar also has a full kitchen. A true entertainment home, the house also includes a two-story theater that seats 20 and has a balcony lounge, and a studio spa room with a whirlpool tub and massage table.

Thornbury relied on classic European styling but used materials that were manufactured locally. She used a circle motif because the shape, she said, has a completeness to it. Accordingly, curved lines make their way into many design elements, from the walls of the entryway to circular additions to the exterior roof.

Los Angeles Times

The process of buying a home can be overwhelming–from the growing paperwork to the house-hunting search for a home, buyers sometimes feel a little intimidated.

But today, searching for your perfect home is easier than ever. There are many real estate agents to choose from, a large inventory of homes in many areas, and technology that makes checking out a home as easy as clicking on a few Internet sites. Of course, that's just for a quick look. Getting in the car with an agent and exploring the properties in person will give you better ideas of what you want and, perhaps more importantly, what you don't want.

Now, there are even apps designed to help you keep track of the homes you visit. And there are many to choose from. Take for instance, CrumbTracks, a free app designed by a husband-wife team (Bobby and Eileen Beckmann). It's an iPhone app aimed at helping you stay organized while viewing many different homes. The couple built the app based on their own need to keep information all in one place while house hunting.

"I was looking for an app that would allow me to record things in different homes that I liked and kind of keep a journal," says Eileen.

The app has four different icons that offer a variety of features to assist you with your real estate search. One is a wish list. It lets buyers create a list of what they're looking for in a home. They can choose from items on the list or add their own. The design gallery allows the app to take pictures or video of the home and store it in their design gallery. "They can also share their videos ... via email," says Beckmann. My listing allows buyers to store the physical address and its specifics about the home. The fourth section houses a mortgage calculator to help buyers calculate the cost of buying a home.

Because the market for apps can be stiff competition, the couple decided to offer their app for free to gain consumer interest as they continue to enhance it. "We want to try to get some Realtors involved with it," says Beckmann.

Realtor.com introduced its app, Home Search, earlier this year. The app takes data from about 933 of the nation's Multiple Listing Services, updating the content rapidly for the app. It allows you to make notes inside the app and even give a home you see a "star rating." It then saves the home so that you can refer to it again.

Apps have been around for quite a while now; Trulia launched a real estate app back in 2008 and there are so many more today. Do a search, just on the iPhone, and you'll find plenty.

Beckmann sees the apps as critical to helping with the long, and sometimes tedious, process of finding that perfect home. "It's nice to be able to have a tool to store information in one spot and communicate it with others," says Beckmann.

The average house-hunting process takes about 12 weeks and buyers visit sometimes 20 homes or more before deciding which one is "just right".

Source- Realty Times

Big banks put the brakes on foreclosure activity last month as the American foreclosure system faced a major overhaul and homeowners challenged their lenders in court.

The decline in foreclosure actions — from default notices to bank repossessions — dropped the most in states where a court order is required to take back a home; such so-called judicial states do not include California.

Nationally, foreclosure activity fell 14% from January and 27% from February 2010, according to RealtyTrac. That is the largest year-over-year decline since the Irvine data firm began keeping statistics in 2005.

Evidence of a foreclosure slowdown comes as state attorneys general and federal regulators push the banks to revise the way they service loans, consider troubled borrowers for potential mortgage relief and conduct their foreclosure proceedings. Officials last week sent the nation's biggest mortgage servicers a 27-page list of terms outlining these demands.

"The foreclosure process is stalled, and the seemingly impending settlement is delaying foreclosures," said Mark Zandi, chief economist for Moody's Economy.com. "The whole process is slowing down because of these issues."

Negotiations involve the five largest providers of home loans. They include the arms of four national banks: Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. Also part of the talks is Ally Financial Inc., the former GMAC, which services loans through its GMAC Mortgage unit.

The wrangling began last year after revelations that some of the nation's largest financial institutions relied on "robo-signers," people who signed key court documents used in thousands of foreclosure cases across the country without reading or understanding them. The revelations led several banks to issue foreclosure moratoriums and lawmakers to question the integrity of the entire foreclosure system.

The February decline was probably related, in part, to banks resubmitting foreclosure filings that had been found to be faulty, said Rick Sharga, RealtyTrac senior vice president. About 70,000 foreclosure filings were resubmitted nationally last month, a number RealtyTrac did not include in its February estimates.

Courts have also delivered setbacks to some of the nation's largest lenders in recent months, ruling on behalf of homeowners in key foreclosure cases. This increased scrutiny is probably leading banks to be more cautious with the way they conduct repossession proceedings, said Walter Hackett, an attorney who represents Inland Empire homeowners.

In seeking a global settlement, government agencies have proposed penalties against banks ranging from $5 billion to $20 billion. That money would be used to fund principal write-downs, officials have said.

But bank executives and Republicans this week began publicly pushing back. "We've got to be very careful that we don't create an environment where we encourage people not to pay, and that's the danger you have when you get into broad-based principal forgiveness," Charlie Scharf, chief executive of retail financial services for J.P. Morgan Chase, said in a CNBC interview Wednesday.

Sen. Richard Shelby (R-Ala.) also on Wednesday blasted efforts by the state attorneys general and the Obama administration, calling them a "regulatory shakedown."

House Republicans sent Treasury Secretary Timothy F. Geithner a letter asking him to explain the government's legal justification for trying to impose sweeping changes on the way banks process problem loans, the Associated Press reported.

A total of 225,101 properties received a foreclosure filing last month, according to RealtyTrac, meaning 1 in every 577 homes was caught in some stage of the process. Big banks took back 64,643 properties, a 17% decline from January and an 18% drop from February 2010.

In California, 56,229 properties received filings, a 16% decline from January and an 18% decline from February 2010. Banks took back 12,734 properties, a 20% drop from January but a 1% increase from February 2010.

Source- Los Angeles Times

Mortgage rates held steady this week, with lenders offering 30-year fixed-rate loans at 4.88% on average and 15-year fixed loans at 4.15%, Freddie Mac reported in its latest weekly survey.

The borrowers would have paid 0.7% of the loan balance in upfront lender fees and discount points to obtain the rates, Freddie Mac said Thursday.

In Freddie's survey a week earlier, the 30-year was being offered at 4.87% and the 15-year at 4.15%. Start rates on adjustable loans were nearly unchanged as well, the survey showed.

The 30-year mortgage rate, which twice dipped to less than 4.2% last fall in the Freddie survey, climbed back above 5% in mid-February before again dropping below 5%.

Freddie, the giant loan buyer and issuer of mortgage bonds, nearly collapsed during the financial crisis. It was made a ward of the government to support the housing markets, and loans backed by Freddie, government-controlled Fannie Mae and the Federal Housing Administration now make up 95% of the mortgage business.

The Freddie Mac survey is conducted each Monday through Wednesday. It asks lenders to report popular combinations of rates and fees on loans of up to $417,000 that they are offering to borrowers with good credit, a 20% down payment or 20% home equity, and enough provable income to make the loan payments.

Well-qualified borrowers who shop around often find slightly better deals, and it's possible to pay more upfront to get a lower rate.

Source- Los Angeles Times

Even as home seizures stall nationally with big banks facing a potential overhaul of the foreclosure system, California’s real estate agents want to see an alternative to foreclosure made simpler.

The short sale, in which a lender allows a borrower to sell their property for less than what is owed, remains doggedly difficult to do, the California Assn. of Realtors contends in an open letter published Thursday in seven major California newspapers, including the Los Angeles Times.

The real estate group is pushing for banks to approve more short sales and for regulators to streamline the process. The real estate agents argue that short sales are better for consumers and banks.

“We’re focusing the spotlight on short sales and calling on regulators, elected officials, nonprofits, business organizations, companies and individuals with a stake in California’s economic future to resolve this issue and others that get in the way of a recovery,” Beth L. Peerce, president of the Realtors group, wrote in the letter.

For a deeper look at some of the issues dogging short sales, take a look at this Times article on the subject published last year.

Source- Los Angeles Times

Bank of America, the nation's largest bank, announced new initiatives Thursday intended to keep military families from losing their homes to foreclosure.

The new programs come as big banks face national scrutiny over their foreclosure practices and a potential overhaul of the foreclosure system looms. The bank said its new programs would offer mortgage principal reductions for some military borrowers who have fallen behind on their payments.

The plans also call for a reduced 4% interest rate on mortgages for those eligible under the Servicemembers Civil Relief Act. The bank also said it would create a mortgage unit dedicated to servicing military members.

The housing crisis has hit military families particularly hard. Many who bought during the boom and now must relocate because of fresh orders are faced with selling their homes at a big loss. With few buyers and renters, particularly in hard-hit markets, they also are faced with options that include renting at a loss, separation from their loved ones or, in some cases, foreclosure.

Big banks reportedly have foreclosed on military family members in violation of a law meant to protect them. (Take a look a this article by the New York Times and this article by U.S. Banker.)

Bank of America is rolling out the program only to loans owned and serviced by the bank. Some loans that the bank services are owned by outside investors, and the bank said it is negotiating with those investors to see if it can expand the program to include all of its military customers.

The principal reduction component of the plan announced by Bank of America would be significant, lowering the amounts raised on some mortgages to as low as the current market value of those homes. The bank said it would offer interest rate reductions on top of principal reductions as needed and when possible.

The plan to write down principal comes as Bank of America’s own chief executive this week pushed back on writing down loans for troubled borrowers. In seeking a global settlement, government agencies have proposed penalties against banks ranging from $5 billion to $20 billion. That money would be used to fund principal write-downs, officials have said.

"There’s a core problem that if you start to help certain people and don’t help other people, it’s going to be very hard to explain the difference," Moynihan said earlier this week, according to the New York Times. "Our duty is to have a fair modification process."

The most popular real estate slogan has always been "location, location, location." Well, folks, there's a new slogan in town, and his name is "price, price, price." You can have the most fabulous Malibu beach house, but if you are overpriced, you won't sell in today's market.

How do you know where to price your house? How do you know that your real estate agent has priced accurately to sell?

Here are a few tips to steer you in the right direction.

Appraisals: Your real estate agent or brokerage will have a list of local appraisers. You can also visit The Appraisal Institute online at appraisalinstitute.org. Simply click on "find an appraiser". An appraisal costs just a few hundred dollars, but it affords you a clear idea of the amount for which a buyer can be approved.

Comparables: What are homes like yours selling for? Comparables can be found by analyzing homes in your neighborhood, or in nearby neighborhoods, that have similar square footage, upgrades, and amenities. If a comparable home sold for $150,00, there's little chance you'll find a buyer willing to pay $180,000 for your overpriced home. You always want to be the least expensive home in the neighborhood, when it comes to selling, not the most! Everybody loves a deal.

Be Competitive: Underpricing a home is a strategy that some agents employ to garner interest and to create a bidding war through multiple offers. A well-priced home is sure to get more showings than a home that costs more than the competition. More showings mean more exposure, which ups the chances of you receiving an offer.

Lender Communication: Lenders will only allow a buyer to borrow up to the amount a home appraises for. That means if you are overpriced, even an eager buyer may hit a lending road block.

Consider Leasing: If you've been caught in a depreciating market, you may have more money in your home than you can sell it for at this time. A reasonable option is to lease your home. Your real estate agent should be able to work out the specifics of any contract for you.

How Bad You Need to Sell: This is the real kicker. Some homeowners want to sell, but they don't need to. That means they can wait out a down market, or even wait for the "perfect" buyer. If, however, you find yourself needing to move across town, or across the state, then you will have to be more willing in today's market to compromise. And compromise is all about price when it comes to real estate.

Buyers are savvy. Technology allows them to search the local MLS, research the latest trends, and even see how your neighborhood's prices have changed over the last 30 days. They will know if your home is overpriced. It is best to error on the side of too little than too much in this numbers game. If you price your home right, however, you're sure to find a ready and willing buyer.

Source- Realty Times

It can be a little confusing. Do I recycle this carton, but not that box? Do I need to rinse this out before I toss it? How does one know what is acceptable for recycling and what isn't? Here is a very rudimentary cheat sheet for you to use! Let's break it down into categories.

Paper:

1. Corrugated cardboard. This means moving boxes, shipping boxes, and product boxes can all be recycled!

2. Office Paper. Most offices go through a lot of paper. From faxes, to memos, to old projects -- recycling paper is a great way to save a tree!

3. Junk Mail. Yes, even after email, we still get tons of snail-mail junk mail. If you are unable to opt-out of receiving this deluge, then at least recycle the weekly ads. And you can shred and recycle credit card offers and other mail!

4. Phone books. See the comments for junk mail above!

5. Gable-top cartons. Milk cartons and orange juice containers can also be sent to the recycle center.

6. Magazines. You may find some recycling programs still don't accept "glossy paper." But, in all actuality, glossy paper can be easily recycled using today's modern technologies.

Metal:

1. Soup and Coffee Cans.

2. Aluminum Foil.

3. Soda Cans. To be really proactive, set up a collection bin at your office to collect post-snack and post-lunch cans.

Glass:

Glass takes a long time to decompose. It takes longer than your lifetime and mine added together, multiplied by 100 and ... you get the idea. There are certain types of glass you cannot recycle, however. You CANNOT recycle: light bulbs, TV tubes, Pyrex dishes, mirrors, windows, or ceramics.

Plastic:

Plastic must be clean! So wash it out and send it on its way. Most plastic has a recycling code on the bottom. Codes 3, 6, and 7 are less likely to be accepted.

And no plastic shopping bags, unfortunately. Now is the time to buy some reusable bags!

Electronics:

From televisions, cell phones, VCRs, printers, and fax machines can all be recycled! The bad news? Microwaves, smoke alarms, and your old fridge need to disposed of in other ways.

Batteries:

You may already know that your car battery can be recycled, but did you know that those run-down AA, AAA, and other household batteries can also be recycled?

Why recycle? Recycled paper requires only 60% of the energy needed to make new paper. And that's just the tip of the recycling iceberg. It really is a no brainer. So, make a little extra effort at your office and home to save the planet, one glass bottle or pop can at a time.

Source- Realty times

McLean, VA – Freddie Mac (OTC: FMCC) released the results of its Primary Mortgage Market Survey® (PMMS®), which shows a drop in long-term fixed rates for the third consecutive week.

30-year fixed-rate mortgage (FRM) averaged 4.87 percent with an average 0.7 point for the week ending March 3, 2011, down from last week when it averaged 4.95 percent. Last year at this time, the 30-year FRM averaged 4.97 percent.

15-year FRM this week averaged 4.15 percent with an average 0.7 point, down from last week when it averaged 4.22 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.72 percent this week, with an average 0.6 point, down from last week when it averaged 3.8 percent. A year ago, the 5-year ARM averaged 4.11 percent.

1-year Treasury-indexed ARM averaged 3.23 percent this week with an average 0.6 point, down from last week when it averaged 3.4 percent. At this time last year, the 1-year ARM averaged 4.27 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac, reports, "Mortgage rates saw an overall improvement this week. Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year's high set just three weeks ago. This means that homebuyers could now expect to pay $263 less per year on a $200,000 loan."

"However, housing demand still remains weak. New home sales in January were near record lows dating back to 1963 when the data began, according to the Census Bureau . Similarly, pending sales of existing homes fell for the second consecutive month in January, according to the National Association of Realtors® ."

Source- Realty Times

The share of Golden State homes purchased with cash rose to a record level last month as investors and others took advantage of lower prices and less competition during the market's winter doldrums, a real estate information services reported.

Last month 30.9 percent of all new and resale houses and condos sold statewide were bought without a mortgage - the highest level in at least 23 years, according to San Diego-based DataQuick Information Systems, whose statistics go back to 1988. Last month's cash figure was up from 28.9 percent of sales in December and 28.5 percent a year earlier.

January's high point follows a record year for cash deals in California. Last year cash buyers purchased 27.8 percent of all homes sold, up from 26.0 percent in 2009, which was the prior annual peak.

The trend extends well beyond California. For last month and for all of last year, the portion of homes bought with cash climbed to peak levels in DataQuick's statistics across much of the West, including the Phoenix, Las Vegas, Reno, Denver, Portland and Seattle regions.

The all-cash deals were transactions where there was no indication in the public record of a purchase mortgage recorded at the time of sale. Some of these "cash" buyers could have used alternative financing arrangements outside of a typical, recorded purchase mortgage. Also, in some cases cash buyers might be taking out mortgages after their purchases.

Over the past decade, cash buyers purchased a monthly average of 13.9 percent of the homes sold in California, though since November 2008 the cash level has been above 20 percent.

For the past couple of years all-cash deals have become far more common in lower-cost markets where prices have dropped sharply, luring investors and other buyers who either can't qualify for a traditional mortgage, or who simply view housing as a relatively attractive place to park their money. Moreover, using cash can get you to the head of the line if there are multiple offers on a property, given sellers favor the relative speed and certainty of all-cash transactions.

Last month 51.9 percent of those paying cash were absentee buyers, meaning their property tax bills will be sent to a different address. In most cases this indicates the buyer is an investor, though in vacation markets a fair number would be second-home purchasers. Of the cash buyers who appear to be owner occupants, it can't be determined from public records what percentage bought for purely investment reasons, perhaps with a plan to sell after prices start rising again.

Foreclosures are a big target for cash buyers, but not the only target. About 52 percent of the homes purchased with cash in January had been foreclosed on in the prior 18 months.

The median price paid for a Golden State home purchased with cash last month was $160,000, down from $175,000 in December and $164,000 a year earlier. That compares with a median of $239,000 last month for all homes sold statewide.

The median-size of a California home purchased with cash last month was 1,344 square feet, with 3 bedrooms and 2 bathrooms. The median size of resale single-family detached houses bought with cash was 1,443 square feet, while for resale condos it was 1,050 square feet.

Last month resale houses made up 75.3 percent of the cash sales, while resale condos were 22.2 percent and all newly built homes just 2.5 percent.

The median age of existing single-family houses bought with cash last month was 41 years, while it was 29 years for existing condos.

Of the 247 California zip codes that logged at least 10 cash sales last month, 60 saw cash buyers purchase more than half of all homes sold. Of those 60 zip codes, 25 were in Riverside, San Bernardino and Sacramento counties.

Some of the larger counties that saw a record share of sales go to cash buyers last month were Contra Costa, Fresno, Orange, Sacramento, Santa Clara and Solano counties. Although most of the state's 58 counties did not see a record level of homes purchased with cash last month, enough of the larger ones saw a record or a near-record level to pull the entire state up to its highest point for any month since at least 1988. (Many of the state's large counties did see a record portion of homes bought with cash in all of 2010, compared with all other years back to 1988).

Source- DQNews

Urban centers are the hot thing now for shopping, entertainment and recreation. Coastal cities such as Vancouver and Boston are viewed as very attractive markets. They're considered some of the most dependable markets since their home prices don't change much.

Elizabeth Marquart, Real Estate Emissary in Los Angeles, believes that the biggest trend is people no longer wanting large homes! In the last ten years, the trend was “bigger is better” with people building gigantic houses. Some would have no yard and have as much house as they could. Buyers of today are going the complete opposite direction. There are the baby boomers who are downsizing now because their kids are gone. Those kids are buying houses, and these are people who want to be closer to the city and they want smaller houses that cost less to maintain. A lot of them are looking for homes that are eco-friendly that they are able to put solar panels on or have a vegetable garden in. Because of that we’re going to start seeing a lot of those huge homes on the market that aren’t selling.

Since the holidays more of us are feeling confident. We are being told that we might not want to count on prices dropping any further. The advice: take a risk and write the offer! If you see a house out there that you like that’s a little bit out of your budget, and if it’s been on the market for more than 60 days, write your offer. Get the seller to come down on price – don’t wait for it to get reduced. Everybody waits, and a lot of times when it does get reduced, multiple people write offers. Just got for it. The worst they could do is say no.

With regards to selling, make your house look like a model home – it is key. A lot of buyers don’t have vision, and they can’t imagine what the house would look like without all your stuff in it. Box all your things like collections and family photos, anything personal. If the house is vacant, you want to rent furniture, this is called staging. Let people see how it should be decorated. A vacant house will not sell for the majority of buyers out there.

Good news for Canada: the Canadian real estate market is set for higher than expected growth in 2011.

In the United States, three of the top ten real estate markets expected to do well in 2011 are: San Antonio, San Francisco and Salt Lake City.

Source- Hollywood trend report

Senior Obama administration officials, newly joined by state attorneys general, were on the brink Thursday of finalizing major elements of a possible settlement with large U.S. banks accused of flawed and fraudulent foreclosure practices, sources familiar with the discussions said.

But absent from this otherwise united government front, which is preparing to submit a proposed settlement to financial firms within days, is the regulator of the nation's largest banks, the Office of the Comptroller of the Currency.

The OCC has raised concerns that the firms might be required to pay too large a fine - $20 billion or more - and adopt mortgage procedures that the agency doesn't think make financial sense.

The sources spoke on the condition of anonymity because the terms of the discussions weren't finalized.

This split within the federal government echoes previous disagreements among regulators over how to respond to the financial crisis. The OCC and other bank regulators have been accused of coddling the firms they are supposed to be overseeing while agencies that have advocated a get-tough approach have been criticized for trying to gum up the financial machinery that makes the U.S. economy hum.

The nation's foreclosure crisis remains one of the drags on the U.S. economic recovery, and Obama administration officials are under pressure to help homeowners facing foreclosure.

Even as officials neared consensus over the changes they would require banks to make in foreclosure practices, there was still no decision about how large a penalty banks should face and whether they should pay a fine or devote the sum to helping rework mortgages for distressed borrowers. Officials have told banks they would like the industry to help avert 1.5 million new foreclosures, sources said.

On Thursday, senior officials from the Department of the Treasury and the Department of Housing and Urban Development discussed finalization of these terms. These discussions occurred as the Justice Department,, which has been coordinating the efforts, prepared to approach banks with a potential settlement.

One person close to the discussions said that a final round of face-to-face negotiations with banks would be held in the coming days, probably in Washington.

If the settlements are finalized, they could resolve a range of allegations that go beyond the flawed foreclosure practices, which came to light in the fall. The alleged infractions include that the banks failed to comply with federal rules requiring mortgage modifications, broke state laws when foreclosing on borrowers and lied to federal housing programs.

Last fall, the nation's largest banks were forced to freeze tens of thousands of foreclosures after widespread reports of problems with documents. After months of investigation by federal and state officials, the Justice Department has been holding discussions with representatives of banks in Washington about a potential settlement, sources said.

In recent days, federal officials have coalesced around proposed changes in bank practices aimed at safeguarding the mortgage modification and foreclosures processes, sources said.

Source- The Washington Post

FEDERAL Housing Administration mortgages, the government-insured loans that have surged in popularity in recent years, will be getting slightly more expensive this spring.

The F.H.A. announced this month that it was raising the annual mortgage insurance premium for borrowers by a quarter of a percentage point — to 1.1 or 1.15 percent of the loan amount for 30-year fixed-rate loans, and 0.25 or 0.50 for 15-year or shorter-term loans.

The higher premium applies to F.H.A. loans taken out on or after April 18.

The agency called the change a “marginal increase” that would be “affordable for almost all home buyers who would qualify for a new loan.” But industry experts say that some consumers, especially those considered marginal borrowers, may now be prevented from buying or refinancing a property.

The annual premium for 30-year loans was already changed in November, to 0.85 percent or 0.9 percent; the level used to be 0.50 percent or 0.55 percent. (The annual premium for 15-year or shorter-term loans, previously zero to 0.25 percent, did not change at that time.)

“It’s going to make fewer people qualify” for the loans, said Michael Moskowitz, the president o