Wednesday, April 29, 2009

HOME SALES UP 66% IN LOS ANGELES

Home sales jumped 65.6 percent in the Los Angeles area in March, compared to the same period a year ago, while the median home price fell 31.9 percent, according to figures released earlier this week.

The median price of an existing single-family home in Los Angeles was $295,100 in March, compared to $308,540 the previous month and $433,400 last year, according to the California Association of Realtors.

In Orange County, home sales increased 47.4 percent in March, compared to the same month last year, while the median home price was $444,520, down 24.9 percent from $592,100 in March 2008.

Home sales increased 63.8 percent in March in California, compared with the same period a year ago, while the median price of an existing home declined 39 percent, according to CAR's report.

The median price of an existing, single-family detached home in California in March was $253,040, compared to $247,590 the previous month and $414,520 in March of last year, according to CAR.

The cities with the greatest median home price increases in March compared with the same period a year ago were Lemon Grove, 18.6 percent, and Rancho Santa Margarita, 3.1 percent.

Tuesday, April 28, 2009

C21 COMMUNITIES FORUM GETS NATIONAL ATTENTION

From Inman News this morning...

Century 21 Real Estate LLC has expanded its social media marketing efforts with an online interactive advice forum that the company is comparing to similar offerings from Trulia and Zillow.

The new "Talks" forum is hosted on a new C21 Communities landing page on the company's main site, www.Century21.com.

The C21 Communities landing page also includes an online radio channel, C21 Talk Radio, and links to the company's social networking sites on Facebook, Flickr, Twitter and YouTube.

In an interview on C21 Talk Radio, Bev Thorne, senior vice president of marketing for Century 21 Real Estate, said C21 Communities is the latest example of how the company is using money it once spent on national television advertising to build its brand online.

A Century 21 Adobe Flash ad campaign was recently selected as "Best Real Estate Online Ad" by the Web Marketing Association's Internet Advertising Competition Awards.

Thorne said C21 Communities takes advantage of the size of the company's global network. The "Talks" forum -- which allows agents to field questions posed by consumers -- is "very similar to Trulia Voices and Zillow Advice," Thorne said.

Century 21 is holding a "Tweetup" in San Francisco on April 28 to solicit consumer feedback on C21 Communities.

Tom Kunz, Century 21's president and CEO, will host a Q&A session live on C21 Talk Radio from 3-4 p.m. PDT April 30.

To check out C21Communities, click HERE

Tuesday, April 21, 2009

Friday, April 17, 2009

AUDIO OF CENTURY 21 CEO TOM KUNZ WITH JON LANSNER

CENTURY 21 CEO Tom Kunz was interviewed this week by Orange County Register real estate columnist Jon Lansner.

In the interview, Kunz says that he expects California and the West to lead the recovery, saying that West Coast states "led us into this thing and they'll lead us out of it."

Further, Kunz warns that those who stay on the sidelines too long may see their purchase power eroded as interest rates rise in the months ahead.

"The person who tries to time the bottom of the market, if they're not watching interest rates, whatever they might pick up... will be eaten up by the higher cost of capital."

To listen to the interview, click HERE

Thursday, April 16, 2009

SALES UP 43% IN SAN DIEGO AS PRICES HOLD STEADY

In San Diego, sales are soaring while prices are holding steady, according to the latest figures released by DataQuick this week.

The median price for homes in San Diego County was $285,000 last month, the same as one month before and $5,000 above January’s median of $280,000. Sales were up 43% from one year earlier, the largest increase for any March in the past five years.

For all of Southern California, sales were up over 50% while median prices fell 35%.

The average payment on a mortgage loan in March was $1,074, down nearly $800 from one year earlier, illustrating again the exceptional affordability brought on by discounted prices and the lowest interest rates in 40 years.

With the overall inventory of resale homes below 14,000 for the first time in three years, it would take less than 5 months to deplete all inventory at the current pace of sales. However, at price points below $400,000, there is less than two months of active inventory, according to DataQuick.

To read the Union Tribune on San Diego's improving conditions, click HERE

Wednesday, April 15, 2009

TYPICAL CALIFORNIA MORTGAGE PAYMENT NOW UNDER $1,000

The typical mortgage payment for homes that closed last month in California was just $958, down nearly 50% from one year ago ($1,712) and the lowest "adjusted for inflation" payment ever recorded in the state by DataQuick, which has been tracking real estate activity since 1988.


At $958, the current average monthly payment is 54.4% below the peak of the 1989 real estate cycle and 63.1% below the peak of the current cycle, which topped out in June of 2006.


Sales in Southern California have increased for nine consecutive months, driven largely by foreclosure inventory. Foreclosures represented over 55% of all resale activity in Southern California in March, and 57% of all sales statewide.

Sunday, April 12, 2009

INTERVIEW WITH THOR SORENSEN, CENTURY 21 AWARD

This week, Romero on Real Estate speaks with Thor Sorensen, who was the number one agent in CENTURY 21 Award’s Carlsbad office in 2008. Last year marked the seventh consecutive year Sorensen has earned Masters or Centurion recognition in the CENTURY 21 System. Even in a transitioned market, Sorensen has kept his sense of optimism and purpose and is having another fantastic year.


RORE: HOW’S THE CARLSBAD MARKET?

SORENSEN: That’s interesting – I get asked that question all the time. If you read what’s in the press, you would think it’s nothing but foreclosures and short sales. But Carlsbad isn’t like other markets. We haven’t gone down by 50%, like some places. We haven’t had as many job losses as other areas, and this is an area where people still really want to live.


RORE: HOW WOULD YOU DESCRIBE 2009, SO FAR…

SORENSEN: It’s been more of a challenge, for certain. In some ways, with so many buyers, it feels like 2003 or 2004 all over again. There’s low inventory, low interest rates and the affordability index is higher than it has been in a long time. When you put it all together, in many areas it feels like a feeding frenzy.


RORE: SO IF THERE AREN’T AS MANY FORECLOSURES IN CARLSBAD, IS IT FAIR TO SAY THE COMPETITION FOR THOSE THAT DO COME ONLINE IS FAIRLY INTENSE?

SORENSEN: A lot of people think that working with banks on foreclosures is hard. I don’t find that to be difficult at all. The hard part is actually getting the offers accepted. The banks are slow to respond and there is so much competition. You can’t have buyers expecting to write offers $100,000 below list price and get anywhere. That approach is not going to work. You have to invest some time working with your buyers to help them understand the market and what it’s going to take to be successful, because a lot of people don’t understand this market.


RORE: WHAT ADJUSTMENTS HAVE YOU BEEN MAKING TO YOUR BUSINESS PLAN?

SORENSEN: I have been sending something out in the mail to my sphere every month for the past six years, so they are all used to hearing from me. But the big thing this year has been to focus on creating more personal contact. I’m scheduling additional pop-bys, carrying Padres schedules in my car, having lunch with past clients whenever I can fit it in. A personal meeting is seven times more effective than a phone call, and a phone call is seven times more effective than a mailer. So I’m meeting with people face to face two to three times a week and I’m asking them, “How can I add value to your business or your life?”


RORE: WHERE ARE YOU GETTING YOUR BUYER LEADS?

SORENSEN: I have become so much more aware of the need to ASK for referrals – from past clients, centers of influence, anyone I know or meet. I’ve learned from Joe Stumpf that the best opportunity to ask for a referral is during a transaction, not weeks or months later. So I’m asking people for referrals, but I’m also asking questions like “who do you know that’s been looking for a home but isn’t getting the results they want?”


RORE: WHAT ADVICE WOULD YOU GIVE TO A NEWER AGENT ATTEMPTING TO GET ESTABLISHED IN THIS MARKET?

SORENSEN: Start with the basics. When I started in this business seven years ago, I used to order 1,000 business cards every 90 days and my goal was to distribute 21 of them each day. If you can take that approach, and stay with it consistently, it’s going to lead to something. Real estate is a full contact sport.


RORE: SOUNDS LIKE GOOD ADVICE FOR SEASONED AGENTS AS WELL!

SORENSEN: Even though we’re all working hard to put deals together, you cannot lose sight of the fact that we are in sales. That means we must be in direct contact with other people every day, not just when we feel like it. If you aren’t devoting time each day to talking directly with people and generating new business, the best you can hope for is riding the roller coaster, where your business is going up and down and you’re never really making progress.


RORE: HOW DO YOU STAY POSITIVE WHEN SO MANY NEGATIVE THINGS ARE BEING SAID ABOUT REAL ESTATE AND THE ECONOMY?

SORENSEN: For one, I’ve stopped taking the paper and I don’t watch the news. When it rains, people are surprised when I’m caught off guard. I’m just not paying attention to negative messages.


RORE: SO WHAT IS TAKING THE PLACE OF THE NEWS?

SORENSEN: Over the first few months of this year I have really been focusing on the good things in life, as well as the good things in my business. I read Randy Pausch’s “Last Lecture”, and it really caused me to appreciate the good things in life. A lot of people are allowing negative news to influence them without even realizing it. If you can surround yourself with positive news and positive influences, you’re going to be a better person and you’re going to perform at a higher level.

Friday, April 10, 2009

Wednesday, April 8, 2009

NEW CONSTRUCTION TAX CREDIT FUNDS GOING FAST

In less than one month, $16.6 million of the $100 million set aside for California's new construction home buyer tax credit has been spoken for. At this pace, funds for the $10,000 state income tax credit will depleted before the summer is over.

K. Hovnanian Homes has reported a 25% increase in visitor traffic in March, but builders throughout the state are reporting that the vast majority of buyer activity is taking place in more entry-level developments. Half of the new homes placed under contract this year are priced below $300,000.

New home sales continue to lag behind last year's pace, as resale foreclosures continue to be the primary magnet for investors and first-time buyers, but the $10,000 tax credit and aggressive marketing campaigns should help jumpstart new construction.

There were only 65,000 new homes built in California last year, the lowest number since the state began keeping records in 1954.

Monday, April 6, 2009

FANNIE MAE AND FREDDIE MAC LIFT MORATORIUM ON FORECLOSURES

Here's an underreported story worth following.


A ban on foreclosure sales and evictions from houses owned by mortgage giants Fannie Mae and Freddie Mac, which began as a high-profile effort just before the holidays to keep people in their homes as the government tried to come up with homeowner rescue plans, is over.

Fannie Mae said in a brief statement that “Fannie Mae’s suspension of foreclosure-related evictions concludes as of March 31, 2009. The company has in place special foreclosure sale requirements that take into account the Making Home Affordable program. A foreclosure sale may not occur on any Fannie Mae loan until the loan servicer verifies that the borrower is ineligible for a Home Affordable Modification and all other foreclosure prevention alternatives have been exhausted.”

I cited over the weekend that inventory is down throughout Southern California, while sales activity is up. In other words, more buyers competing for fewer available homes.

The Fannie / Freddie moratorium made this problem worse by disrupting the supply of new inventory. It may take a few weeks to play out, but it's possible we may get a late spring / early summer surge of new foreclosures. We'll continue to watch these developments closely.

Saturday, April 4, 2009

ORANGE COUNTY SNAPSHOT SHOWS CHANGED MARKET

The latest data release from OCAR comparing March 2009 to the corresponding period one year earlier shows a dramatic change in the Orange County real estate climate:

* The inventory of homes has fallen by two-thirds, from a nine month supply to a three month supply

* The number of "SOLDS" in March was up 25% from one year ago

* The number of "PROPERTIES IN ESCROW" increased 59% from one year ago

* There are 28% fewer "ACTIVE" homes on the market today than one year ago

Clearly, there are plenty of buyers and investors interested in discounted homes, low interest rates, and (for those who have not owned in the past three years) an $8,000 tax credit.

Psychology has always been a huge driver in real estate, and it certainly appears to me like we are turning the corner on the demand side of the equation.

Thursday, April 2, 2009

CAR OFFERS UP TO $1,500 PER MONTH FOR FTB'S WHO LOSE THEIR JOB

The California Association of Realtors is launching a new program that will help eligible first-time home buyers who lose their job continue to make mortgage payments for up to six months.

Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

CAR's Housing Affordability Fund is dedicating $1 million its Mortgage Protection Program, and estimates as many as 3,000 families could benefit from the program this year.

To apply for the program, home buyers must request an application for the CAR Mortgage Protection Program from the CENTURY 21 Award or CENTURY 21 Superstars agent.

This is bold, directed leadership from CAR with the purpose of bringing even more first-time buyers back into our market. The benefits should be immediate and I would presume the $1 million in funding will go quickly, so talk to your clients about this program today!

To qualify for the Mortgage Protection Program, applicants must:

* Be a first-time home buyer – someone who has not owned a home in three or more years

* Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009

* Use a California Realtor in the transaction

* Purchase the property in California

* Be a W-2 employee (cannot be self-employed)

Wednesday, April 1, 2009

NO APRIL FOOL'S JOKE - UT PAINTS BRIGHTER PICTURE FOR HOUSING

"Eight months of rising home sales, reports of competitive bidding on properties, and growing confidence among investors, first-time buyers and home builders all seem to suggest a local real estate market on the mend."

So begins Roger Showley's article in today's San Diego Union Tribune, which paints a much brigher picture of the San Diego housing market than what we have been accustomed to seeing in print.

Now those of you out there selling homes know that there is competition for well-priced listings - in fact, bidding wars are not uncommon with bank owned foreclosures in many areas.

But with interest rates in the 5% range, values 25% to 40% off their 2005 highs and an $8,000 tax credit for first time buyers (through November 30), fencesitters are getting lonely as more and more serious buyers charge back into the market.

February marked the eighth straight month of higher home sales (year-over-year), showing again that buyers and investors both feel like the San Diego real estate market has regained its affordability. The change is most pronounced in areas like Eastlake (Chula Vista) and Oceanside, where values have fallen so far that first-time buyers are rolling back into the market at rates far greater than in other areas of the county.

According to the UT article, since January 1 the proportion of sales in Eastlake is occurring at twice the community's normal level, while Oceanside is selling at a rate four times greater than its traditional norm.

During the good years, the spring market was always crazy. Right now, we're back into our most active spring market in at least four years.