January 27, 2009

The Real Estate Mortgage and Credit Meltdown How Did We Get Here and Where Do We Go?

Author: admin - Categories: Published Real Estate Articles, Real Estate News - Tags: ,

Panel discussion at USC featuring: Larry Harris, Fred V. Keenan Chair in Finance and former Chief Economist of the U.S. Securities and Exchange Commission. Richard Green, Lusk Chair in Real Estate.

January 19, 2009

Southern California Home Prices End Year 2008 down 35%

Author: admin - Categories: California Real Estate News, Housing Spotlight, Published Real Estate Articles, Real Estate News - Tags: , , ,

In a recent LA Times article written by Peter Y. Hong, Southern California home prices continued their decline at the end of 2008, closing the year at 2003 price levels, a real estate research firm reported today. The December median sales price for all Southern California homes fell to $278,000, a 35% drop from the same month a year prior, according to San Diego-based MDA DataQuick.

Recent foreclosure news suggests that short sales and re-defaults from unsuccessful loan modification plans, may be misleading the severity of the foreclosure crisis in Southern California.

Los Angeles County’s median sales price of $320,000 was down 32% from December 2007, while Orange County’s median price fell 30% to $397,000. San Diego’s median price dropped 30% from December 2007, to $300,000. Ventura County’s $338,000 median December sales price was down 36% from the prior year. Reduced sales prices drove the number of Southern California homes sold in December up by 51% over the previous year. “It does look like the spigot is being opened a little bit, at least for low-cost home purchases,” said John Walsh, MDA DataQuick president. The typical monthly mortgage loan payment that California homebuyers committed themselves to paying was $1,239 last month, down from a revised $1,380 for the previous month, and down from a revised $2,060 for December year ago. Read the complete LA Times article.

January 16, 2009

Falling Home Prices Hitting Hard

Author: admin - Categories: California Real Estate News, Housing Spotlight, Real Estate News - Tags: , , , , , ,

Foreclosures are closely tied to home prices – they tend to rise as prices fall. And nationally, home prices have fallen more than 21% from their peak, according to the S&P/Case-Shiller Home Price index. In many areas, the decline has been much worse. In Los Angeles, San Francisco and Miami prices are down 30% or more. They’ve fallen more than 40% in Phoenix and nearly that much in Las Vegas. Loan modifications are helping thousands of borrowers avoid foreclosure, but the home that are lost to foreclosure are sold at such a discount the effects in the housing markets are astounding.

Declining prices put many homeowners “underwater” on their mortgage loans, owing more than their homes are worth, which makes them more likely to default. And adding a flood of bank-owned homes to already slow markets further outstrips demand and dampens prices, creating a spiral of lower prices and higher foreclosures. As a result, more homeowners who fall behind on their mortgage payments end up losing their homes, according to Jay Brinkman, the chief economist for the Mortgage Bankers Association. Foreclosure news seems to arise daily as foreclosure rates rose 81% in 2008.

In California and Florida 80% of the homeowners who miss a loan payment end up in foreclosure, according to the MBA. That’s a much, higher percentage than in the past. “The number of mortgages 30 days past due are still below what they were during the 2001 recession,” said Brinkman. But the proportion of those loans that went into foreclosure was much lower, he added – about 10%. “Delinquency itself has become a much clearer predictor of foreclosure,” said Sharga. If home prices keep plunging, the foreclosure scourge will likely continue. And S&P’s chief economist, David Wyss, expects home prices to continue to decline, bottoming in early 2010 roughly 33% below their 2006 peak.

January 13, 2009

Predicting the Bottom of the Real Estate Market

Author: admin - Categories: California Real Estate News, Housing Spotlight, Jason Cardiff, Published Real Estate Articles, Real Estate News - Tags:

Suze Orman discuss on when do you know if the Real Estate has reached the bottom. When has the housing market reached the bottom? In most cases, when the prices begin to go back up, then you have reached the bottom.

Watch this video to learn more about the real estate market reaching the low point.

According to KMG president Jason Cardiff, “Timing the real estate market is very difficult.” Cardiff continued, “Like the stock market, predicting the bottom can be a great way to make money quickly, but even most experts are unable to call the bottom.” Sign up now and have the latest real-estate news delivered to you as it is reported.