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.

Hollywood Hills West estate once owned by Marvin Gaye is listed at $3.799 million

A compound once owned by “Silky Soul Singer” Marvin Gaye and his first wife, Anna, has come on the market in Hollywood Hills West at $3.799 million.

The 1.46-acre estate includes a four-bedroom, five-bathroom main house, a guesthouse, an outdoor kitchen and an eight-car motor court. Water spills down a wall of boulders and into the swimming pool. There are three fireplaces and 3,156 square feet of living space.

Gaye, who died in 1984 at 44, found success in the late 1960s singing duets with Tammi Terrell such as “Ain’t No Mountain High Enough” and “Ain’t Nothing Like the Real Thing.” His hits included “I Heard It Through the Grapevine,” “What’s Going On” and the Grammy Award-winning “Sexual Healing.”

The Gayes owned the house in the mid-70s when Anna Gaye, the elder sister of Motown founder Berry Gordy, filed for divorce. She kept the house until 2008, when it sold for $1.91 million.

Rare opportunity to own this consisting of 3 parcels encompassing approximately 1.46 acres of land in Outpost Estates. Part of the land is flat and undeveloped, just waiting to be utilized. A private drive leads to an 8-car motor court and a completely remodeled 4-bed, 5-bath home. Experience breathtaking and serene settings on expansive park like grounds on one of the largest compounds in Outpost.

Please contact me at  (310)402-8181 or jkryukova@gmail.com for more information, showings, and other properties in the Hollywood Hills, Beverly Hills, and Surrounding areas for sale and lease!

 

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Nada Nadia Villarreal and Anthony Paradise of Sotheby’s Sunset office are the listing agents.

2013 Cyprean Dr. Hollywood Hills, CA 90046 OPEN SUNDAY!!

OPEN SUNDAY 9/23/12 2-5PM!

Zen Hilltop Contemporary on private shared street. All rooms enjoy spectacular
canyon, valley and mountain views. Living room w/ beamed ceiling and fireplace
open to deck overlooking canyons. Master Suite has huge steam shower tiled w/
limestone counter tops. Large walk in closet, also bonus room for office. First
floor has extra 1/1+living room w/private entrance. Bamboo floors, tiled
kitchenette & own deck. Wonderland school district & 2 car garage.

Size: 3 bedrooms, 3 bathrooms

Asking Price: $899,000

Location: Hollywood Hills, Laurel Canyon, Wonderland School District

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Give the housing market a high five…finally!

First, existing home sales in April jumped more than three percent over March numbers. Also, overall inventory was down and, the biggie, according to the National Association of Realtors, is that median home prices were up more than 10 percent from last year. Another plus is that new home starts are moved to an annualized rate of 717 homes—the highest level since 2008. Even better, those stats are for all four regions of the country. On the West Coast, for example, existing-home sales in April were 7.3 percent above last year and the median price ($221,700) soared 15.9 percent. In Los Angeles and nearby communities, for example, multiple offer situations are increasing. Real estate gurus like NAR Chief Economist Lawrence Yun credits “job growth, low interest rates, bargain home prices and an improving economy.” Add to the mix pent-up demand, rising rents and the realization that record low interest rates won’t last forever, and becoming a homeowner is looking good for the rest of the year. Increased sales of new homes will provide new hope where foreclosure inventory is high, predicts Celia Chen, a housing analyst for Moody’s Analytics. She says buyers “will forgo distressed homes that tend to be in disrepair in favor of newly built homes.” That’s more than speculation, too. Toll Brothers, Inc., the largest luxury home builder, just reported a higher-than-expected quarterly profit and a strong jump in new orders.

Start smiling. The housing market is!

Hot Deal of the Week! Sunset Strip Property!

Hot Deal in an incredible Hollywood Hills Location: 8530 Franklin Ave. Los Angeles, CA 90069

Foreclosure Property

Asking Price $920,000

3 Bedroom/ 3 Bathroom

2,183 Sq. Ft. – Interior

6,810 Sq. Ft. – Lot Size

Perched high above the Sunset Strip you will find this bright and airy home in the trees. Upon entering you have views through the living room out toward the city. The open living / dining / kitchen area has hardwood floors, beamed ceiling and a brick wall with a fireplace. Also on the first floor you will find a family room with fireplace and deck access as well as a bedroom suite with large bath. Upstairs are more bedrooms and a beautifully done bathroom with classic touches. Located minutes from famous shopping, dining and entertainment.

PLEASE CONTACT ME FOR SHOWINGS OR INFORMATION: (310)402-8181

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Please visit my website: www.juliekproperties.com

Listing Courtest of: Joyce Essex Harvey DRE 00935813

Bill would encourage foreigners to buy U.S. homes

American consumers and the federal government haven’t been able to bail out the sinking U.S. real estate market. Now wealthy Chinese, Canadians and other foreign buyers could get their chance.

Two U.S. senators have introduced a bill that would allow foreigners who spend at least $500,000 on residential property to obtain visas allowing them to live in the United States.

The plan could be a boon to California, which has become a popular real estate market for foreigners, particularly those from China.

Nationwide, residential sales to foreigners and recent immigrants totaled $82 billion in the 12-month period ended March 31, up from $66 billion the previous year, according to the National Assn. of Realtors. California accounted for 12% of those sales, second only to Florida.

“Overall, Los Angeles is the perfect place for investors,” said YanYan Zhang, an agent with Rodeo Realty in Beverly Hills, who travels to China several times a year to meet potential clients.

Sandra Miller, a broker at Engel & Volkers in Santa Monica, an international real estate firm that caters to foreign clients, said about 10% of the luxury market now is composed of foreign investors. She estimated that offering them U.S. visas would triple that figure, as well as help sales elsewhere.

“California, Florida, New York, Colorado, Hawaii and Texas — those states will see a huge increase in demand,” she said. “The whole Westside would certainly benefit.”

The bipartisan proposal, part of a package that also would make it easier for international tourists to visit the U.S., is similar to an existing program that puts foreigners on a fast track to a green card if they invest at least $500,000 in an American business that creates at least 10 jobs.

“Many people want to come and live in the United States,” said Sen. Charles Schumer (D-N.Y.), who introduced the legislation Thursday along with Sen. Mike Lee (R-Utah). “They will be here spending money and paying taxes, and the most important thing is they’ll sop up the extra supply of homes we have right now compared to demand, and that’s what’s dragging our economy down.”

The legislation would create a new homeowner visa that would be renewable every three years, but the proposal would not put them on a path to citizenship. To be eligible, a person would have to buy a primary residence of at least $250,000 and spend a total of $500,000 on residential real estate. The other properties could be rented.

The program would come with several restrictions.

The purchase would have to be in cash, with no mortgage or home equity loan allowed. And the property would have to be bought for more than its most recent appraised value, Schumer said.

The buyer would have to live in the home for at least 180 days each year, which would require paying U.S. income taxes on any foreign earnings. Buyers would no longer be eligible for the temporary visa if the property were sold.

The buyer would be able to bring a spouse and minor children to live in the U.S. but would need to apply for a work visa to hold a job. Neither the buyer nor dependents would be eligible to receive Medicaid, Medicare or Social Security benefits.

“The bill does not limit people from being productive,” Schumer said. “It simply prevents them from coming here and taking jobs that otherwise would go to Americans.”

Billionaire investor Warren Buffett and others have advocated boosting the U.S. economy by attracting foreign investment.

The Visa Improvements to Stimulate International Tourism to the United States of America Act, or VISIT-USA Act, aims to do that by also making several other changes to visa policies.

Among them are allowing Chinese tourists to receive a five-year visa that permits multiple visits. They now must apply for a new visa every year. Canadians would be allowed to stay in the U.S. for more than 180 days without having to obtain a visa.

Schumer and Lee have lined up support from the U.S. Chamber of Commerce, the U.S. Travel Assn. and the American Hotel & Lodging Assn. Schumer said he was working to get the backing of the Obama administration, which received the bill’s details Thursday.

“For too long, we have created barriers, and too many hoops and hurdles, which act to deter visitors from other countries coming to the United States to spend their money and create jobs,” said Chamber of Commerce President Thomas Donohue. “This is a loss we can ill afford in today’s economy.”

Robert Toll, executive chairman of Toll Brothers Inc., a Pennsylvania builder of luxury homes, joined Schumer on a conference call with reporters to back the foreign home-buyer proposal. He said it was no different from tax breaks designed to attract businesses.

Lee described it as a free-market way to boost demand in the real estate market after “big-government programs have failed to work.”

10.21.11 http://www.latimes.com/business/la-fi-visas-home-buyers-20111021,0,6715779.story

April 2011 Sales and Price Report

California home sales decline in April; median home price increases.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 499,830 units in April, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  April home sales were down 2.9 percent from March but up 5 percent from the previous year.  The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the April pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

“An improving economy, coupled with the steady pace of distressed sales in the market and the typical seasonal pattern in the median home price, suggests the statewide median price has reached its low point for this year and is unlikely to hit the bottom reached in February 2009,” said C.A.R. President Beth L. Peerce.

The statewide median price of an existing, single-family detached home sold in California rose 2.5 percent in April to $293,570, up from a revised $286,510 in March.  April’s median price was down 4.4 percent from the $307,000 recorded in April 2010.

“While down from March, April’s sales level still was solid, posting the strongest year-over-year sales gain since August 2009,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “At this point in the cycle, the market seems to be responding to the fundamentals of the housing market and economy, and sales are on track to match or slightly exceed last year’s figures.”

Highlights of C.A.R.’s resale housing report for April 2011:

  • The Unsold Inventory Index for existing, single-family detached homes was 5.4 months in April, down from 5.3 months in March, but up compared with April 2010’s 4.9-month supply. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
  • Thirty-year fixed-mortgage interest rates averaged 4.84 percent during April 2011, down from 5.10 percent in April 2010, according to Freddie Mac. Adjustable-mortgage interest rates averaged 3.20 percent in April 2011, compared with 4.16 percent in April 2010.
  • The median number of days it took to sell a single-family home was 53 days in April 2011, compared with 37.4 days for the same period a year ago
If you’re thinking about selling do it before the so-called “Double Dip” hits and if you want to buy…the time is now – incredible interest rates combined with great prices make for amazing opportunity to own!
Courtesy of the California Association of Realtors May 16,2011