Real Estate News & Tips - Luxury Los Angeles Real Estate Services by Julie Kryukova

Home price rise continues to pick up speed

The pace of home price increases continued to accelerate in February, according to a reading Tuesday that showed the biggest gain since near the height of the housing bubble.

The S&P Case-Shiller index of home prices in 20 major markets posted a 9.3% rise over the last 12 months. That’s up from the 8.1% rise in January. It was the biggest 12-month gain in the index since May 2006, which was just one month after the index showed record-high home prices.

The index showed a 12-month decline in prices almost every month over a five-year period through May 2012. But every month since then has shown a gain in home prices, and each month’s gain has been stronger than the one that came before.

“Despite some recent mixed economic reports for March, housing continues to be one of the brighter spots in the economy,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.

Stan Humphries, chief economist for home price tracker Zillow, said there are signs in themarket that the pace of increase started to slow in March.

“Regardless what data you look at, home values are clearly rising at an unsustainable pace,” he said. He said the increases in the index need to be taken with a grain of salt, being distorted by the shift in transactions to private home sales rather than the foreclosure sales that had been dominating the market.

The housing recovery has been driven by a number of factors, including near record-low mortgage rates, a drop in foreclosures and reduced unemployment, all of which have helped lift both new-home sales as well as sales of previously owned homes. The rising home prices has helped bring back some buyers who had been reluctant to buy while prices were falling.

Mike Larson, real estate analyst at Weiss Research, said he’s concerned that much of the increase is being driven by investors flooding into some markets to buy homes in order to rent them out, outbidding the potential homeowners who want to live in a home.

“Prices are not at bubblicious levels, but you’re talking about a trend that can be destabilizing,” he said.

Mark Vitner, senior economist with Wells Fargo Securities, said part of the reason for the sharp rise in prices is the comparison to depressed prices a year earlier. He said comparisons will become more difficult later this year. and the pace of increase should slow.

Home price increases boost the overall economy. Besides the jobs created by a pick-up in construction and home sales, rising prices mean fewer homeowners are underwater on their mortgages, owing more than the home is worth. That allows more homeowners to refinance, saving money they can spend on other things.

The Case-Shiller index showed the improvement in home prices is broad based, as every market posted an increase for the second straight month. The biggest increases came in Phoenix, a market hit hard by the bursting of the housing bubble, where prices were 23% higher than a year earlier.

But prices were up more than 10% in half of the markets — San Francisco, Las Vegas, Atlanta, Detroit, Los Angeles, Minneapolis, Miami, San Diego and Tampa all posted double-digit percentage gains, and Denver just missed that mark. New York posted the smallest gain, with only a 1.9% rise in prices.

Dean Baker, co-director of the Center for Economic and Policy Research, said some neighborhoods in Phoenix are actually seeing a 40% increase in prices over the last year, driven once again by property speculators. He said in many markets that were most hurt by the bursting of the housing bubble, there is a danger of new bubbles forming.

“The end of this round of speculation is not likely to be much prettier for the areas affected than the end of the last round,” he said.

Even with the strong improvement in prices over the last 12 months, the index is still down 28% from the 2006 peak.

14245 Dickens St. #307 Sherman Oaks, CA 91423

OPEN SUNDAY 2-5PM

$629,000 3bedrooms/2.5bathrooms 1,821 sq. ft.

Property Website: http://dickenscondo.com/

This three-bedroom, two-and-a-half bathroom top-floor town home offers all of the must haves in a sought-after neighborhood south of Ventura Boulevard.

Enter the light filled home to find a bonus room perfect for a playroom, office, or den. The spacious living room features high ceilings, recessed lighting, an attached dining area, and a balcony with a gas hook-up for outdoor bbq-ing. The large eat-in kitchen offers tons of storage space, stainless steel appliances, and sunny window overlooking the complex’s sparkling pool.

The well-appointed bedrooms are downstairs, allowing for extra privacy from the upstairs space. Once down the stairs, you will find two good sized guest rooms with large windows and great closets. The in-unit laundry is also located conveniently near the bedrooms, as well as a shared full bathroom.

The over-sized master bathroom offers all of the luxury and amenities of your very own home spa experience. The master provides a large walk-in cedar closet, a second wall closet, and a separate vanity and sink area. The large bathroom with a separate tub and shower also offers a unique feature – your very own sauna!

The complex offers a large swimmer’s pool, great patio chairs for lounging and BBQs, and a nice, hot Jacuzzi for those chilly L.A. spring eves. Two secure side-by-side parking spaces along with several guest spaces allow for easy access to and fro.

This Sherman Oaks location can’t be beat. Walk to restaurants, movies, shopping, your favorite yoga spot, and the new Ralphs on Ventura Blvd. The building’s address is in the highly sought-after Sherman Oaks Elementary School district, and there’s certainly enough space to raise a family in this large 1,821 square-foot unit!

Sherman Oaks

3961 Farmouth Drive Los Angeles, CA 90027

Asking Price: $1,079,000

2bedrooms plus Den

2 Bathrooms

7,554 Sq. Ft Lot

2,156 Sq. Ft. Interior

One of the area’s most-desired developers struck gold with this 1980 architectural wonder. Modernist builder Steven Hill’s elements and style are intact on the inside and outside of this unique, loft-like residence. Soaring light-filled spaces permeate the home. A contemporary, open floor plan showcases a two-story living room, dining room, kitchen, cocktail lounge, convertible den, balconies, decks, and spectacular city lights views from almost every room.

Enter the home through a unique vestibule. To either side of this ante room are two one-car garages (direct-access parking for two cars total). Ascend a light-flooded staircase to the first level of the home, which centers around a living room with fireplace, vaulted ceilings, walls of glass, and dynamic views. Adjacent to the living room is an intimate cocktail lounge with built-in bar. This area could be modified and used as a screening area.

The house’s dining area also faces easterly views. High ceilings and glass brick add volume and brightness to this room. Bamboo floors accentuate the space. The custom dining table is rumored to have been crafted by Steven Hill, as well.

Hill was not afraid of angles–”right,” 45-degree, or otherwise. The home’s kitchen is an example of Hill’s fascination with intersecting lines. Plenty of cabinet space, original grey ceramic tiles (a Hill obsession), and a clerestory window complete the room.

Up a half-level is a guest bedroom, a large convertible den (which could be used as a bedroom), and an angular full bathroom lined with Hill’s favorite grey tiles.

Higher up is the home’s master suite level. A large bedroom features a fireplace, walk-in closet and a sliding glass door which opens to a view across the city’s lights to the San Gabriel mountain range. The master suite’s over-sized bathroom features a separate tub and step-in shower large enough for two. Bonus alert: Bathe or shower while taking in city lights views through a picture window! A stack laundry unit is also on this level.

Outside is a steel sky bridge that leads to a large lot with three decks. There is also a yard area past the decks that provides plenty of room for the possibility of a pool or grassy lawn. Over-the-top views abound from these outdoor areas.

This creative space is located north of Los Feliz Boulevard on a quiet, coveted cul-de-sac that features more expensive homes. Griffith Park is a few steps from the front door.

According to public records, there have only been two owners of the property; Hill himself (from 1980 to 1984) and the current trust. Are you ready to be the third owner?

TRUST SALE. Court confirmation is NOT required.

New Listing Alert: Stunning Spanish in the Grove Area of LA $1,749,000

435 N. Martel Ave. Los Angeles, CA 90036 (Walking distance to The Grove – lovely location)

3bedrooms/3.5bathrooms/2,500 Sq. Ft

ASKING PRICE: $1,749,000

Please contact me at jkryukova@gmail.com or call (310)402.8181 for more information or to schedule showings:

This rebuilt, remodeled, redesigned three-bedroom, three-and-a-half bathroom Spanish residence in the heart of The Grove/Melrose area sets a high standard for the neighborhood. Walk to everything or stay home and enjoy a sequestered life behind gates and mature ficus hedges. Amazing finishes, fixtures and top-of-the-line stainless-steel appliances reflect a Hollywood era gone by, but provide a complete set of today’s most sought-after elements–including a built-in Miele espresso machine.

An elegant light-filled living room with extra tall and wide picture windows, wood-burning fireplace and barrel ceiling offers ample room for formal entertaining.

Just outside the living room is a lofty combination of rooms in the center of the house. A chef’s eat-in kitchen, dining area, media room and powder room form an axis of activity for residents desiring an open floor plan conducive to contemporary living and entertaining.

The chef’s kitchen features Caesarstone counter tops, custom Downsview cabinetry, a professional-grade Wolf range (multiple burners + griddle + grill + double ovens) and a stainless-steel Wolf hood. The room’s over-sized center island provides that hard-to-come-by space for cooking and entertaining while also keeping an eye on the game on the media room’s flat-screen television. Upper and lower cabinet lights and recessed halogens provide multiple options for mood lighting. Stainless double sinks with filtered water system, an appliance lift door (for microwave or toaster oven), Miele dishwasher and Sub-Zero refrigerator/freezer make this kitchen one of the best in the area.

Bonus alert! A designated media/family room in three-bedroom Spanish homes around The Grove is a rarity. This room adjoins the dining area and provides a sight line into the kitchen area. Five-speaker surround sound makes watching screeners a theatrical experience. Custom floor-to-ceiling blackout draperies (throughout the home) convert this area into a true home theater.

Two guest suites (each with their own sparkling bathrooms) and a massive master suite with a huge spa-like bathroom and a giant walk-in closet provide plenty of private living space. The master bath has an over-sized step-in rain shower, a separate extra-deep tub, Carrara marble counters, Walker Zanger and Ann Sacks tiles, custom wood Downsview cabinetry, mirrors, double sinks, in-wall speakers and a TV monitor. Can you say “Mandarin Oriental” or “Ritz-Carlton”?

The master bedroom’s walk-in closet/dressing area has a floor-to-ceiling built-in closet system by California Closets including hanging areas, dressers and storage cabinets. Each of the other two bedroom closets also has built-in storage systems. One of the two guest rooms has a built-in “office wall” with upper and lower custom wood cabinetry by Downsview and a Caesarstone counter/desktop, a perfect work-from-home or study area.

A laundry room (with king-sized side-by-side front-loading washer/dryer) provides built-in storage shelves for cleaning supplies. A media cabinet and linen cabinet augment the house’s storage components.

The home has a security system, Harman/Kardon sound system (with individual room-by-room volume controls), climate control, art lighting, double-paned E-glass windows and French doors. A “California basement” houses some of the home’s systems, as well as additional long-term dry storage.

Outside is a restful, private backyard retreat with a pool, waterfall and spa. A shady, luxury hotel-style cabana with a vaulted ceiling creates opportunities for an outdoor living/dining room, game room or carport.

A driveway gate can be operated electronically and provides access to off-street parking. There is additional off-street space for two cars in front of the gate. Access to the grassy hedged-in front yard and front door is through an electronically-secured pedestrian gate.

This home is a rare example of an extensive renovation done right. Impeccable attention to detail and not a single thing to change. Move in, unpack and enjoy California indoor/outdoor living at its best.

NOTE: Assessor’s interior sq.ft. is 2,300. A recent floor plan draft from R.E.S.T. calculates interior sq.ft. at 2,439. Outdoor cabana is not included in these calculations. [Buyer to verify square-footage.]

Year-over year US home prices up sharply in November

U.S. home prices in November extended their steady recovery from the housing bust, rising 7.4 percent compared with a year ago. It was the biggest year-over-year increase in 6½ years.

CoreLogic, a private data provider, said Tuesday that prices also rose 0.3 percent in November from October. The month-to-month figures are not seasonally adjusted. CoreLogic compiles its indexes by tracking sales of the same homes over time, using data on sales in all 50 states.

The gains in home prices have been widespread across most of the country. And CoreLogic forecasts that prices will increase 6 percent this year.

Prices in November were higher than in November 2011 in all but six states. And only 13 of 100 large cities that CoreLogic studies reported year-over-year price declines. That was down from 20 cities in October.

The sharpest increases were in Arizona, Nevada and Idaho. North Dakota and California rounded out the top five.

Steady price increases are helping fuel the housing recovery. They’re encouraging some people to sell homes and enticing would-be buyers to purchase homes before they get more expensive. Rising prices also reduce the number of homeowners who owe more on their mortgages than their homes are worth.

“All signals currently point to a progressive stabilization of the housing market and the positive trend in home price appreciation to continue into 2013,” said Anand Nallathambi, CEO of CoreLogic.

Despite the gains, home prices nationwide are still nearly 27 percent lower than in April 2006, when prices peaked during the housing bubble.

Some of the biggest gains have been in states that were hurt the worst. Prices in one of them, Arizona, have jumped nearly 21 percent in the past year, the most of any state. But prices in that state are still nearly 40 percent below their peak.

And prices in Nevada have risen 14.2 percent in the past year but remain 53 percent below peak levels.

The states where prices continue to fall include Delaware, where they are 4.9 percent below a year ago, and Illinois, down 2.2 percent. Connecticut, New Jersey, Rhode Island and Pennsylvania are also reporting declines.

Prices rose 24 percent in Phoenix in the past 12 months, the most of any large metro area. Riverside-San Bernardino, Calif. was next with a 9.7 percent rise. It was followed by Los Angeles, where prices rose 8.4 percent.

Source: Sfgate.com

How to Negotiate with Sellers

Buying a home is one of the most important purchases most people will make. In order to make the right decision the first time, potential buyers need to be prepared. Consider the following before starting negotiations:

Be prepared Research the housing market in the target area. Once you have information about the general area, focus on the particular property and seller. Look for answers to questions such as:
1. Why is the homeowner selling? (If they’re moving because they find the area undesirable, you might want to consider this issue.)
2. How long has the home been on the market? (If it has been on the market for a long time, perhaps there are negative facts about the property that you need to know.)
3. How much did the seller pay for the home compared to the current asking price? (If the seller paid more, find out why. Was it a general real estate trend, or did property values in that particular neighborhood go down?)
4. What is the seller’s time frame for selling and moving? Does it fit within your needs?
5. Are there any defects in the home or problems with the surrounding neighborhood? (For example, is the roof so old that it will likely leak during the next storm? Is there a new construction project in the area that will lead to major traffic congestion?)

As the potential buyer, you want the advantage. While you want answers to all your questions to the seller, reveal very little about your circumstances.

Do not give the seller personal information such as your income, the maximum you are able to pay for a down payment or the home, or when you want to move.

Make sure that your agent knows not to reveal any such information to the seller or his/her agent.

Also, do not let the seller see how much you want the property. If you appear desperate or overly enthusiastic, the seller then has the stronger bargaining position. When meeting with the seller or listing agent, keep your emotions in check.

Establish a Timeline Find out if the seller needs to have the sale closed sooner rather than later. If the seller is feeling pressured to sell, use that to your advantage in negotiating. Even if you, the buyer, are the one with the deadline for purchasing a home, don’t let yourself be rushed into making concessions or a purchase you may regret later.

Report: Home Prices Poised for Growth in 2013

In stark contrast to this time last year, the housing market is chugging into 2013 with a head of steam.

Home-listing prices were up 5.1% nationally in December on a year-over-year basis, according to data released Thursday by real-estate listings and data company Trulia. Out of the 100 major metro markets covered by the report, 82 of them saw year-over-year gains. At the end of 2011, asking prices had fallen 4.3%, and only 12 markets had posted positive price changes.

“Prices are going into 2013 with strong tailwinds,” said Jed Kolko, chief economist for Trulia. He cites a general strengthening of the job market, which in turn means more families able to cover a sizeable down payment. An increase in household formation, which is also the product of improving job prospects, and home construction could further bolster demand.

Mr. Kolko notes that the sharpest tightening of inventory is taking place in Western states. Four of the top 10 cities to see the largest asking price recovery were in California, including Oakland, San Jose, Sacramento and Fresno.

Las Vegas, which was hit hard after the bubble burst, came in at the top of the list with a 16.3% year-over-year listing price increase. In the same period in 2011, prices dropped 11.2%.

To be sure, even among the markets with major gains, some are better positioned for a sustained housing recovery than others.

While Las Vegas may have seen the largest asking price turnaround, it remains far below pre-bust levels. The problem, Mr. Kolko says, is that the market remains unstable, with high vacancy rates, lingering foreclosures and subpar job growth.

On the other hand, metros like Seattle, which came in second on the list of cities with the highest asking-price recovery, are on a smoother path to growth because of their strong economic fundamentals, he said.

Meanwhile, rents rose nationally 5.2% in the same period. In 17 of the 25 biggest rental markets, home prices are rising faster than rents, according to Trulia. Whereas ownership was typically more affordable than renting in most markets in recent years, as sales demand rises, that edge is becoming less apparent, Mr. Kolko said.

Commercial real estate market improving, USC study says

The office and industrial real estate sectors continue to improve for Southern California landlords, a report said, but high office vacancy will remain common for the foreseeable future as businesses put more workers into less space. The regional economy has strengthened the past year and enabled some businesses to hire more workers, according to USC’s annual Casden office and industrial property forecast. That has resulted in higher occupancy and rising rent for industrial buildings, while office landlords are seeing rising occupancy and smaller declines in the amount of rent they can charge.
“We predict office market rents to stabilize in as little as six months, but a sustained recovery could be many years off,” said Casden report author Tracey Seslen. Office occupancy probably won’t return to pre-financial crisis levels until some of the region’s office buildings are taken out of commission or converted to other uses.

“A paradigm shift in the way tenant firms use office space will force landlords and developers to rethink their investment strategies even as the economy improves,” she said.

Source: LA Times

Home prices show biggest jump in 6 years in October!

Home prices increased 6.3% in October from a year earlier, the biggest year-over-year gain since 2006, according to Irvine research firm CoreLogic.

Prices dipped 0.2% in October from September, but such a drop was expected at the end of the home-selling season, the firm said Tuesday.

October marked the eighth straight month of year-over-year prices increases and added to recent evidence of growing strength in the housing market. CoreLogic reported Monday that foreclosures were down 17%
in October from a year earlier.

“The housing recovery that started earlier in 2012 continues to gain momentum,” said Mark Fleming, CoreLogic’s
chief economist. “The recovery is geographically broad-based with almost all markets experiencing some appreciation.”

Home prices increased 21.3% in Arizona, the most of any state. California saw a 9% increase. Prices increased
from October 2011 in all but five states — Alabama, Delaware, Illinois, New Jersey and Rhode Island.

The Phoenix-Mesa-Glendale area in Arizona had the largest year-over-year price increase of any metro area, at 24.5%. The Riverside-San Bernardino-Ontario metro area was second at 7.3%. And the Los Angeles area was fourth at 6.4%.

Excluding foreclosures and other distressed sales, home prices nationally increased 5.8% in October from a year
earlier. Those prices were up 0.5% from September, the eighth straight monthly gain.

Source: LA Times

Top Reasons to Opt for Seller Financing!

The son of a longtime friend recently caught me at a Friday night high-school game and informed me he and his wife had turned down an older home in the neighborhood they always wanted, for a new home in a subdivision.

They also declined the possibility of no-cost seller financing from the owner of the older home because the builder offered a slightly lower rate on the new home.

“We just felt like we wouldn’t have to do anything on the home for years,” Patrick said. “We couldn’t afford any expensive surprises.”

While I disagreed with him on both topics, I kept my opinions to myself because he had already made his decision and was looking forward to moving into his new home. Here’s why I would have chosen differently.

First and foremost, you can always repair or remodel a home, but you can never single-handedly fix a neighborhood. If you know the schools, churches and streets that are important to you, it’s usually best to buy where you have done your primary research. And, new homeowners often underestimate upkeep.

But just as important are the credit and cash needed to get a loan today. Lenders are being more cautious and are demanding more skin in the game.

Recently, Fair Isaac Co., the developer of FICO scores, revealed that 78.5 percent of all consumers have scores that fall between 300 and 749. The FICO score ranges from 300 to 850. So only about one in five American have a FICO score of 750 or higher.

Ellie Mae Inc., a provider of mortgage origination software to lenders,reports that borrowers approved for mortgages in September had an average FICO score of 750. What message does that send to prospective home buyers?

Besides high credit scores, borrowers are coming in with higher down payments to satisfy lender requirements. According to Ellie Mae, home buyers who used a Fannie or Freddie loan had, on average, a 21 percent down payment. Homeowners who refinanced had average equity in their homes of 30 percent.

Doug Duncan, Fannie Mae’s chief economist, recently said he thought that loan standards will eventually ease as banks reduce some extra risk-based fees that they have added to benchmark quotes since the mortgage meltdown.

But is there a viable plan B? What if you didn’t have to go to a lender for a home loan?

Seller financing is an underestimated benefit not only because of today’s increased lender scrutiny, but also because the buyer dodges most all the fees associated with the loan. For example, in Patrick’s case, he decided on a 3.5 percent loan from a lender rather than a 4 percent loan from the homeowner.

Let’s say the total costs of a $200,000 loan come to 2 percent of the loan amount, or $4,000. The monthly difference between a 3.5 percent loan and 4 percent loan is approximately $57 a month. Not only would Patrick have to borrow more or come out of pocket with the extra funds (in addition to the down payment needed on the house), but he would also need more than seven years to make up the monthly difference.

While many owners make “cash-out, conventional” financing a requirement when selling a home, others are more than willing to negotiate price and terms. Homes are selling quickly in many neighborhoods, but others continue to sit. It’s those owners who can be “all ears” if it means closing a deal and moving on with their lives.

And, some sellers, particularly seniors with no high-rate place to park their cash, are not opposed to accepting a healthy down payment and “carrying the paper” on their real estate as long as they are guaranteed 4 percent interest on their money. In most cases, it’s difficult to get that rate in non-risk accounts.

Buyers and sellers can build in safety features to make carrying the paper palatable for both sides. If you are a buyer, there’s no harm in asking. You could save time, anxiety and a lot of cash — an inexpensive surprise.

If you’re looking to buy, lease, or lease – please contact me at 310.402.8181 or jkryukova@gmail.com

Click here to visit my website

Source: Inman news