But it’s nice to get some affirmation from TV networks that view the world of Los Angeles real estate as TV-worthy—Home and Garden Television has recently announced plans to film a TV series called Selling Los Angeles that will essentially be a reality series with Los Angeles real estate brokers as its cast.

Looks like homes for sale in Los Angeles can be every bit as exciting as the lofts, high-rises, and old-world architecture of New York City—you might have caught the series Selling New York on HGTV that aired last Spring and is currently re-running.

If you haven’t, the premise basically features a couple of brokers from Manhattan real estate companies rubbing elbows and selling properties to some of the city’s high-profile business people.  Selling New York was shot and aired earlier this year.

I guess HGTV figured if they were going to mix Hollywood and real estate, they might as well continue it by mixing Hollywood and Los Angeles real estate. The network decided to film Selling Los Angeles in early 2011.

The show will feature a few brokers from Los Angeles real estate companies competing to pitch prominent homes for sale in Los Angeles to high profile buyers around the city.

We’re not yet sure exactly who the Los Angeles real estate brokers will be during the series, but you can bet the show will give a pretty enjoyable inside perspective on high end homes for sale in Los Angeles and the process by which they get sold…at least through the perspective of a Hollywood lens that is!

The organization began cutting back on some of their programs (and even suspended some entirely) when the state of California real estate bubble heightened and the state budget became overly problematic in late 2008.

Since then, CalHFA has announced that it is rolling out a new program with the help of about 700 million dollars of federal funding to help California residents falling behind on their mortgages keep their homes instead of facing foreclosure.

California’s real estate industry has experience much higher foreclosure and short sale rates than the norm—higher than ever, really—and news recently came out to demonstrate that foreclosure rates and short sales are continuing to climb through the third quarter of 2010.

Funding for the Keep Your Home mortgage assistance program  has already been approved by the U.S. Treasury and will begin accepting applications for qualified homeowners this coming November.

The main goals of the Keep Your Home assistance program are described by CalHFA as “preserving homeownership for low and moderate income homeowners in California by reducing the number of delinquencies and preventing avoidable foreclosures, and to assist in the stabilization of California communities.”

Homeowners who are struggling to pay their mortgages as a result of hardship from unemployment or other circumstances that contribute to financial hardship may be eligible for funds within the program.

The details of the program are slowly rolling out until CalHFA begins accepting applications later this year.  Newest details on the Keep Your Home program website include the initial proposal and state representative reactions regarding the projected effectiveness of the program.

Most recently, CalHFA’s marketing director Ken Giebel used Twitter to announce q1ualifying income levels for eligible homeowners who may wish to take advantage of the program to help avoid foreclosure.

While this number is actually a five percent decrease compared to the last six months, it’s eight percent higher than the first six months of 2009.

According to the report, “1.28 percent of all housing units (one in 78) received at least one foreclosure filing in the first half of the year.”

As you may have guessed, California tops the list in total number of foreclosures with over 340,000. This equates to one in every 39 of California’s housing units receiving a foreclosure notice over the past six months.

The only silver lining for California is that staggering total is actually almost 13 percent fewer than the number experienced in 2009’s first half, however, these numbers are still unsettling as they are higher than the nation’s ever seen overall.

Additionally, almost every other state’s foreclosure amounts increased substantially to suggest the national industry is far from recovery.

Florida and Arizona shared California’s rank with the next two highest total foreclosures, but Nevada took the cake in terms of percentages. 5 percent of their housing units, or one in every 17, received a foreclosure notice in the past six months. Arizona came in second with one in every thirty.

Some inferences can be made from these statistics. Tourism seems to be related to these numbers as California, Arizona, Florida and Nevada have some of the highest tourism rates in the country, and it’s widely accepted that tourism falters along with a down economy.

Perhaps the rate of second-home defaulting is increasing in the poor economy. Many buyers who purchased at the pinnacle of the inflated market are definitely attracted to their defaulting or short sale options in order to cut their losses on high mortgages at the expense of their credit score.

It appears the market is in for more hurdles in the coming year, as the predominant category of listings are foreclosures and short sales and numbers suggest they will continue to be for quite some time.

If you would like to sell your house in this market contact CalStar Realty and Mortgage.

The intent of the fund is to allocate $1.5 billion in federal funding to aid distressed low and moderate-income homeowners who are falling behind on their mortgages and risk foreclosure.

The first round of funding went out to the HFAs in the states of California, Arizona, Florida, Michigan and Nevada, the hardest-hit states in the housing market crash and coincidentally, five of the states that top the list of most foreclosures reported in the first six months of 2010.

A second wave of funding was approved to the states of North Carolina, South Carolina Ohio, Oregon and Rhode Island.

State HFA’s issue untaxed state bonds to help first-time low-income buyers purchase single family homes under fixed low-rate 30 year mortgages, but many have cut or even suspended their programs since the housing crash began.

State HFAs are receiving the federal monies and accepting applications to qualified homeowners whose financial hardships, such as family disaster or unemployment, have put them at risk of foreclosure.

While the Obama administration feels these programs could stop the increasing rate of foreclosures across the country, (RealtyTrac recently reported about 1.65 million foreclosures for the first half of 2010) critics claim that the funding is just a temporary bandage to a significantly deflated market, and may even prolong the housing crisis.

Critics claim that after the aid is granted and runs out, the market will still be at bottom at an inflated market.  Some realtors believe until the market truly bottoms out and inflated loans are flushed out with short sale and foreclosures, the market will not be able to legitimately recover.

California’s CalHFA was recently approved for $700 million in federal funds for their Keep Your Home program, the details of which can be found at their web page if local homeowners would like to see if they qualify.

If your house is located in the Southern California and you would like a good Realtor in Glendale to handle your property, give us a call.

But unless you are a Realtor used to making huge commissions on beach houses or a lender who’s tightening the reigns on your loaning capabilities because you have too many foreclosures, than this should actually be great news!

True, it is a cause for economic concern because lenders are indeed tightening their leashes and those looking to sell their homes (especially near the Gulf of Mexico oil disaster) are probably going to have a difficult time doing so.

But if you’re looking to buy a new home, guess what?  You win! And now is a fantastic time to start looking because the Los Angeles real estate market is flooded with homes for sale that are much more reasonably priced than they were in the past couple years.  Here are some industry negatives being widely reported that translate to great prices for buyers:

This Past May, Home Sales Were the Lowest Ever Recorded:

Though May recorded about half of the home sales nation wide that it usually does, a decrease greater than any other since our government started keeping stats in 1963, this is mainly due to expiring tax credits the government had offered previously to first time buyers in an attempt to stabilize the industry.  The good news? With expired government incentives, prices for homes have fallen.

Internet Searches for Listings are Down Almost 20%

This is likely a reflection of the income situation of the U.S. as a whole.  The good news?  There are tons of listings! If you are considering buying a home, you are much more likely to have a variety of homes to choose from in your target areas.  In a buyer’s market, you actually get to be picky!

The Median Home Price Has Fallen Since This Time in 2009

The median home price has fallen to about $200,000 nation-wide.  This means… you guessed it, prices have fallen!  We clearly learned from the “real estate bubble” that home prices were significantly inflated over the past couple years, and now those prices are falling back to where they should be in relation to mortgage rates and income levels.  This translates to a better chance of a good investment return long-term.

Foreclosures are Setting All Time Records

The plus side? There are many short sales and bank sales that are getting approved.  If you are looking for fixer-uppers or discounted homes, today is a fabulous time to get great real estate deals.

It is More Difficult to Get a Loan

With banks tightening their reigns on loans, those responsibly looking for a home purchase are much more likely to be able to pick and choose since many real estate listings will have less interest from under-qualified buyers.  More loan restrictions mean you need to be in a good position to buy, and falling prices ensure you’ll get a return on your long-term investment.

To learn more about our low interest rates or to apply for a mortgage loan visit us online or call us at 818-500-4124

A total of 22,270 new and resale houses and condos closed escrow in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties last month. That was up 9.7 percent from 20,299 in April, and up 7.2 percent from 20,775 in May 2009, according to MDA DataQuick.

May sales were the highest for that month since May 2006, but they still fell 15.0 percent short of the average number sold in May since 1988, when DataQuick’s statistics begin. The 9.7 percent increase in sales between April and May compares with an average change of 6 percent since 1988.

The combination of tax incentives and low mortgage rates helped stoke sales in mid- to high-end areas, where distress has increased over the last year and sellers have become more motivated and realistic.

The median paid for a Southland home rose to $305,000 last month, up 7.0 percent from $285,000 in April, and up 22.5 percent from $249,000 in May 2009. The May 2009 median was just $2,000 higher than the median’s post-housing-boom low of $247,000 in April 2009.

Last month was the sixth in a row in which the median rose on a year-over-year basis. However, the May median was still 39.6 percent below the $505,000 peak, reached multiple times in spring and summer 2007.

Last month was the sixth in a row in which the median rose on a year-over-year basis. However, the May median was still 39.6 percent below the $505,000 peak, reached multiple times in spring and summer 2007.

“Last month’s jump in the regional median sale price is the flipside of what we saw a year ago, when low-cost inland foreclosures dominated and sales in the costlier coastal towns struggled for a pulse. Today the bargains on foreclosures are fewer and farther between, and the high-end is approaching a normal sales rate.

“The important thing to remember, though, is that what we saw i

stimulus,” he continued. “In the second half of the year the market will have to stand on its own again, barring new forms of government involvement. Prices will be tested if there’s any sudden move by lenders to release a flood of distressed properties.”

Foreclosure resales accounted for 33.9 percent of the resale market last month, down from 36.4 percent in April and 49.8 percent a year earlier. The all-time high for foreclosure resales

On the lending front, May saw modest gains in the use of “jumbo” and adjustable-rate mortgages (ARMs). Historically both helped drive high-end sales, but they became far more difficult to obtain after the August 2007 credit crunch.

In May 6.6 percent of all home purchase loans were ARMs, up from 5.8 percent in April and up from 1.9 percent in May last year. However, the monthly ARM average since 2000 is 39.2 percent.

Jumbo loans, mortgages above the old conforming limit of $417,000, accounted for 17.2 percent of last month’s purchase lending, up from 16.1 percent in April and 12.9 percent in May 2009. But before the credit crisis, such jumbos accounted for 40 percent of the market.

Absentee buyers – mostly investors and some second-home purchasers – bought 19.4 percent of the homes sold in May, paying a median $220,000. That compares with 22.9 percent absentee buyers in April who paid a median $205,000, and 19.6 percent absentee buyers paying a median $170,000 in May 2009.

Buyers who appear to have paid all cash – meaning there was no indication that a corresponding purchase loan was recorded – accounted for 24.5 percent of May sales, paying a median $220,000. In April cash sales were 28.6 percent and a year ago it was 26.1 percent. The 23-year monthly average for Southland homes purchased with cash is 14.1 percent.

The “flipping” of homes has trended higher over the past year. Last month 3.4 percent of the Southland homes that sold had been flipped – bought and re-sold within a six-month period. That’s the same flipping rate as in April, but it’s up from 1.5 percent a year ago. Last month flipping varied from as little as 2.8 percent of sales in Orange and Riverside counties to as much as 4.4 percent in Ventura County.

Indicators of market distress continue to move in different directions. Foreclosure activity remains high by historical standards but is lower than peak levels reached over the last two years. Financing with multiple mortgages is low, down payment sizes are stable, and non-owner occupied buying is above-average, MDA DataQuick reported.

If you’re a prospective home buyer or investor looking to capitalize on the lower prices of homes in Southern California, you’ve probably shopped the market and found a number of foreclosures and short sales that have attractive prices.

But if you’ve ever made an offer on one of these homes, especially if you’re checking out real estate in California, you know that these listings are oftentimes very difficult to get.  In addition to the red tape that goes along with lenders approving short sales and offers exceeding listing prices, (sometimes by as much as $100,000), these homes also usually carry other disadvantages with them as well, such as maintenance needs. They may even just be in neighborhoods that aren’t attractive to investors.

If you’re an investor, a quick internet news search for “California real estate” will yield a slew of negative predictions, especially in the last couple months.  Though home sales were up pretty significantly in May over 2009, a lot of real estate experts are predicting a market “hangover” based on recent government incentives that expired in late April.

One of the words you might hear thrown around is “shadow inventory,” a name with ghastly connotation that almost seems to describe haunted houses or cobwebbed shacks hidden somewhere deep in the woods.  Really, the term shadow inventory isn’t necessarily a totally bad word.  Though it can affect the overall market, it has a very broad definition and might even be semi-positive for those looking to close on a home at a price much lower that southern California real estate has sold for in previous years.

In a nutshell, shadow inventory refers to houses that are on standby to be sold in some sort of distressed sale. Generally, they are those that have been foreclosed upon or repossessed by banks and are waiting to be put on the market.  Lots of real estate experts will include a vast amount of other properties in their definition of shadow inventory as well.  Some include homes where owners have stopped paying their mortgage, and others even count homes owned by buyers that wish to sell but are holding back because of the down market.

So shadow inventory is really just a “list” of homes ready to be placed on the market at lower market value.  If this number is high, experts worry because if tons of homes flooded the market under value, the real estate market as a whole would suffer.  We say the market would “suffer” because average market value might decline, but also discounted homes might prevent fair-value homes from selling in the same neighborhoods.

While prices are lower for buyers looking for a home, short sales and foreclosures usually are sold at a loss to lenders, so the long term effects could include rising mortgage rates and fewer lenders in general.  This also hurts the return of investment on those looking to sell their homes, because buyers are more likely to make offers on the discounted properties.

In essence, shadow inventory is the amount of poor inventory projected to be available in the housing market.  They are usually distressed homes in need of some kind of distressed sale.

While some less-optimistic real estate experts believe that a glut of shadow inventory will negatively affect the market, typically these homes aren’t all placed on the market in amounts great enough to saturate the industry and drive down market prices.

While a high amount of shadow inventory is not desirable for market value or investors, it’s not necessarily a great indicator for severe market disaster either—especially since the definitions can be so broad.  High shadow inventory could actually mean it’s a great time to buy, just be sure to check the numbers in your prospective neighborhoods to be sure you’re making a wise investment decision.

Prudential Financial surveyed over 1,000 Americans with a household income of at least $35,000.  Though 90 percent of those surveyed said they thought the home buyer tax credit was effective in helping many first-time purchasers take advantage of real estate investments, 65 percent of consumers that are actually shopping for homes believe the expiration of the tax credits will have little or no effect on their decision to purchase real estate.
The survey also reports that 79 percent feel that real estate prices will increase over the next five years with 20 percent predicting a substantial increase.  46 percent of real estate buyers expect prices to go up in their areas in just the next year. Only 12 percent are predicting the market will experience further decline and expect prices to fall further.

“The survey underscores the key role the federal home buyer tax credits played in stimulating residential real estate market activity and the U.S. economy,” said James Mallozzi, chairman and CEO of Prudential Real Estate and Relocation Services, Inc in a press release the company issued near the end of April.  “It also shows that most consumers believe the market has hit bottom and are more optimistic about the future.”

Despite the general downturn in the real estate market with the current recession, the survey also solidified the belief among consumers that purchasing real estate investments is still financially wise.  Roughly 75 percent of those surveyed believe a real estate investment will provide a better and more secure return than individual stocks, mutual funds or savings accounts. Many of those surveyed that are actually interested in buying a first-time home said low mortgage rates and current lower housing prices are motivating them to make a home buying investment more than any tax credits for purchasing.