January 21, 2011

California Home Sales Up Again

Author: admin - Categories: California Financing, California Real Estate News

Home sales have been increasing but have the average price for a house in California has declined. Clearly the foreclosures have flooded the market. Just a few years ago, many home buyers would get a 1st and 2nd mortgage to avoid having to pay mortgage insurance. These “80-20″ loans were discontinued because so many of the loans defaulted. This is an example of a “high risk” financing program that had a negative impact on the housing crisis.

Once again real estate news remains mixed for California, as home sales rise, but so do new home loan defaults. California home sales rose in December to their highest level since May, according to a report Friday from the California Association of Realtors as the inventory of unsold homes dwindled. December’s sales were up 5.9% from November’s revised figure of 491,590 but were down 6.8% from the revised 558,840 of December 2009. The unsold inventory index for existing, single-family detached homes was 5 months in December, down from 6.2 months in November but up from 3.8 months in December 2009. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

California Home for SaleStatewide, the 10 cities with the highest median home prices in California during December were: Beverly Hills, $2.18 million; Los Altos, $1.30 million; Calabasas, $1.17 million; Laguna Beach, $1.10 million; Manhattan Beach, $1.8 million; Newport Beach, $1 million; Santa Monica, $921,000; Cupertino, $904,500; Rancho Palos Verdes, $849,000; Los Gatos, $840,000.Statewide, the cities with the greatest median home price increases in December compared with the same period a year ago were: Beverly Hills, 54.3 %; Calabasas, 39.1 %; Poway, 25.5 %; Ridgecrest, 23.3 %; San Juan Capistrano, 19.2 %; Compton, 17.5 %; Laguna Hills, 15.7 %; Santa Cruz, 14.1 %; Gilroy, 14.1 %; La Habra, 13.2 %.

Read more: California home sales hit 7-month high in December | Silicon Valley / San Jose Business Journal

January 8, 2010

California Bank Testing Commercial Real Estate

Author: admin - Categories: California Financing, California Real Estate News, California Real Estate Transactions, Commercial Real Estate, Southern California Real Estate

Southern California’s Inland Empire, a suburban sprawl to the east of Los Angeles, has been among the hardest hit by the real estate crisis.   All the while, the largest bank based in the region, CVB Financial Corp., has survived even as rivals perished. But CVB’s exposure to commercial real estate in the area could still cause problems for the lender. California loan modifications and California Short Sales continue to play a dominant role in state real estate transactions, but now they are affecting the commercial market place.

During a December presentation for CVB’s investors, Chief Executive Christopher Myers described a bleak commercial property market in Ontario, a city in the heart of the Inland Empire and the site of CVB’s headquarters.  “You go up our street — there are 10 buildings of 50,000 to 150,000 square feet with 75% vacancy,” Myers said of the town’s main artery, Haven Avenue, according to a transcript of the presentation. “We have zero loans against those 10 buildings.”   However, an office building at 800 N. Haven Ave. in Ontario was part of collateral for a $16.575 million revolving line of credit that Citizens Business Bank, the banking unit of CVB, extended in March 2008, according to the deed of trust. In August of that year, the property partly secured a $16 million promissory note issued by the bank, another deed of trust shows.  > Read the entire California Real Estate Article.