Real Estate Information

A new survey found that 12.1 percent (one out of eight) of today's home buyers plan to purchase a home as an investment property, compared with 5.6 percent in March 2009, according to the Move.com Homeownership Survey.  Of those interested in buying a home as an investment, 15.8 percent were men and 8.1 percent were women. 

The survey also found that buyers who plan to purchase foreclosures expect to profit both from deeply discounted purchase prices, as well as healthy appreciation rates over the next five years.  Most foreclosure buyers (58.2 percent) expect to pay 20 percent or less than market price for a foreclosure, while 38.5 percent expect a discount of 25 percent or greater.  While, 73 percent expect their properties to appreciate ten percent or more in five years, 28 percent expect their purchases to appreciate 20 percent or more during that same investment horizon. 

Interested in buying an investment property in Los Angeles? Have questions? Ask Eileen.

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Congress has voted to extend the current higher Fannie Mae, Freddie Mac and FHA loan limits through 2010. The present loan limits would expire at the end of 2009 and revert to previous lower limits. The higher limits, along with the home buyer tax credit extension, are necessary to keep the markets moving at this critical time," said National Association of Realtors President Charles McMillan.

"Home sales have shown significant movement upwards in the past six months and reduced inventory in some segments of the housing market, but not in all. Home purchases in the middle-income and higher brackets have not moved much, and those markets must improve before we can experience a fully sustained housing recovery. These higher loan limits will help motivate qualified home buyers to purchase in those markets," McMillan said.

Let's look at Los Angeles real estate sales in October to see how the housing recovery is progressing locally. 

 CCautiontiCaon: Caution: In all of these Los Angeles neighborhoods, housing quality and size, as well as lot size, vary greatly. Therefore, the highest and lowest sold prices often reflect which particular houses sold and are not generally indicative of an increase or decrease in overall value. So I caution against reading too much into the following statistics:

Beverly Hills Real Estate Sales Statistics - Single Family Homes

Beverly Hills Post Office Real Estate Sales Statistics - Single Family Homes

Bel Air Real Estate Sales Statistics - Single Family Homes

Hollywood Hills East Real Estate Sales Statistics - Single Family Homes

 Hollywood Hills West Real Estate Sales Statistics - Single Family Homes

West Hollywood Real Estate Sales Statistics - Single Family Homes

With prices continuing to moderate paired with historically low interest rates, Los Angeles real estate is a great buy.

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California First-time Buyer Affordability Index - Third Quarter 2009: 64 percent (Source: C.A.R.)

Mortgage Rates - week ending 11/12/09 30-yr. fixed: 4.91% Fees/points: 0.7% 15-yr. fixed: 4.36% Fees/points: 0.6% 1-yr. adjustable: 4.46% Fees/points: 0.6% (Source: Freddie Mac)

More and more Los Angeles home buyers are looking for green features in the homes they buy. The green trend is a means of lowering costs, becoming more environmentally friendly, and adopting a healthier lifestyle. 

The average green buyer will pay $12,400--on average--for green features, according to the National Association of REALTORS. National Association of Home Builders green-building standards program manager Kevin Morrow expects the market share of green-certified homes to rise to 20 percent in 2010 from about 10 percent in 2009 and 2 percent in 2006. 

Green features Los Angeles home buyers are looking for include energy efficiency, water efficiency, resource efficiency, and indoor air quality and include such elements as Energy Star appliances, low-flow shower heads, carpets and paint with low volatile organic compounds, and building materials procured from local suppliers.

Today's Los Angeles home buyers benefit from tax credits and other financial incentives. 

Learn more about buying green by visiting EileenWalshRealtor.com or give us a call anytime. 

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Everyday life can get crazy at times; many people fantasize about running off to their own personal retreat right here in California. But how do you know which vacation home is best for you?

Choosing A Location

Do you want to be in the middle of all the activity or enjoy the peace and quiet of a secluded location?  Is a condo in the mountains your cup of tea or a farmhouse tucked away in the woods? Whichever environment you prefer, here are some things you should consider:

• Popularity.  A house in a hot vacation market will usually cost more than a place off the beaten path.  At the same time, continued popularity may help you profit from appreciation.
• Proximity to your home.  If you plan to visit regularly, look for a place that's easy to get to. 
• Rental possibilities.  If you're hoping to offset some costs by renting the home for part of the year, find out about seasonal demand for rentals in the area.

Maintaining Your Getaway

Regular upkeep is more difficult with a vacation home than with your primary residence, but no less important.  The value of the home, both as an investment and as a place you enjoy visiting, depends on good maintenance. 

If your primary residence is not far from your vacation home, you may want to make weekly visits to mow the lawn, water the garden, clean the gutters or shovel snow.  If doing it yourself is impractical, consider hiring a vacation property management company to provide maintenance services during the times when you're not using the home. 

Visit EileenWalshRealtor.com to learn more about buying a vacation home or give me a call for more personal service.

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Have a question? Ask Eileen!

The extension of the home buyer tax credit until April 30, 2010 and the inclusion of a tax credit for some existing Los Angeles home owners is causing many fence-sitters to decide that NOW is the time to take the plunge and buy a home. There is some preparation involved, however. Below are 10 steps you need to take to prepare for Los Angeles home ownership: 

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you'd like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don't forget to factor in closing costs. Closing costs - including taxes, attorney's fee, and transfer fees - average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications.How large of mortgage do you qualify for? Also, explore different loan options - such as 30-year or 15-year fixed mortgages or ARMs - and decide what's best for you.

7. Get preapproved. Organize all the documentation a lender will need to pre-approve you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you've saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of home ownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced REALTOR® who can help guide you through the process.  That's me! Contact me and together we'll find your dream home!

And don't forget, in many cases the tax credit can be used towards your down payment and closing costs!

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The ‘American Recovery and Reinvestment Act of 2009' which became law last February, promotes energy independence and green jobs through tax credits and government grants. This is part of an effort to make Los Angeles homes and buildings more energy efficient. 

Energy saving provisions include: 

• $6 billion to state and local governments for energy efficiency and conservation grants for energy audits, retrofits and financial incentives.
• 30% tax credit (increased from 10%) to homeowners for new furnaces, windows and insulation.
• $5 billion to modernize the nation's electricity grid and install smart meters on homes, saving homeowners money.
• $5 billion for weatherization assistance for low income households.
• $2 billion for federally assisted housing (section 8) efficiency efforts.  

This bill is good news for Los Angeles home owners wanting to make their homes more energy efficient. Interested in buying a Los Angeles home? Visit EileenWalshRealtor.com.

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Have questions? Ask Eileen.

The $8,000 first-time home buyer tax credit was scheduled to expire in just a few short weeks…Nov 30, 2009. However, the Senate voted unanimously to extend the credit on Monday and the House of Representatives approved the extension yesterday afternoon by a vote of 403-12. The extension now also includes a tax credit for "move-up" home buyers. The bill now goes to the President for his signature, which is expected to happen today.

Home Buyer Tax Credit Expansion and Extension  

• The $8,000 tax credit will be extended and available for first-time home buyers through May 1, 2010.  Income limits are expanded to $125,000 for single tax payers and 225,000 on a joint return.
• A new $6,500 tax credit will be available for "move-up" buyers who purchase between December 1, 2009, and May 1, 2010. To qualify, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.
• Prospective buyers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.
• Limitation on the cost of a purchased home is $800,000. 

If you know anyone looking to buy their first Los Angeles home at a time when prices and interest rates are still low, or if you are thinking of buying another Los Angeles home and getting the new $6,500 credit please contact me today.

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The California Association of Realtors is encouraging legistators to extend the $8000 first-time home buyer tax credit which is scheduled to expire November 30, 2009. Read the full story:

LOS ANGELES (Oct. 23) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today called for the U.S. Senate to swiftly adopt the Dodd-Lieberman-Isakson amendment, which would extend and amplify the hugely successful first-time home buyer tax credit until June 30, 2010.

“The success of the home buyer tax credit and its positive impact on the real estate market is clear,” said C.A.R. President James Liptak. “According to our research, nearly 40 percent of first-time buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered. This underscores the significance of the federal tax credit to the housing market’s recovery in California.

“The Dodd-Lieberman-Isakson amendment would expand the credit by removing the first-time buyer requirement and instead would apply to all home buyers,” he said. “The amendment also would increase the qualifying income limits to $150,000 for single buyers and $300,000 for those filing joint income tax returns.

“We urge Senators Feinstein and Boxer to demonstrate their support for home buyers in California and quickly adopt the Dodd-Lieberman-Isakson amendment,” Liptak said.

Under additional provisions in the Dodd-Lieberman-Isakson amendment, taxpayers would be able to claim the credit on purchases completed in 2010 on their 2009 income tax returns. The amendment maintains the provision that home buyers do not have to repay the credit provided the home remains their primary residence for 36 months after purchase, and waives this requirement for active duty military personnel who move due to a military order.

Leading the way…® in California real estate for more than 100 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States, with nearly 163,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Contact me to learn how you can get your $8000 tax credit!

Time is running out on the first-time home buyer tax credit being offered by the federal government. You must close on your Los Angeles home no later than Nov 30, 2009 to be eligible. Here's what you need to do to get yourself ready to buy a Los Angeles home:

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in, taking into account items such as schools, recreational facilities, proximity to amenities, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment, but there are still 10% down loans out there (plus FHA 3.5% down loans). Also, don’t forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you’ve saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®...that's ME! Find an experienced REALTOR® who can help guide you through the process.

Give me a call today before your Nov 30 deadline!!

Have questions? Ask Eileen!

Should I move up to a larger home is a question many Los Angeles home owners are asking.  The questions below will help you decide whether you're ready for a home that's larger or in a more desirable location. 

1. Have you built substantial equity in your current home? 

If you have owned your Los Angeles home for a number of years you might have built up some equity. Look at your annual mortgage statement or call your lender to determine your loan balance. Then give me a call to determine your home's market value. The difference between your loan amount and market value is your equity. You can also get your market value by clicking here. 

2. Has your income or financial situation improved? 

If your income has increased, you may be able to afford a higher mortgage payment. 

3. Have you outgrown your neighborhood? 

Often, the neighborhood or location you buy your first home in may no longer suit your needs. You may want to be closer to work, be in a better school district or have a home on a lake rather than close to it. 

4. Are there reasons why you can't remodel or add on? 

Sometimes adding on to your current home is the answer. If you will end over-improving for the neighborhood, moving may be a better option. 

5. Are you comfortable moving in the current housing market? 

In the current Los Angeles real estate market, your home may not sell quickly for what it would have a few years ago, but the home you buy also less expensive expensive. 

6. Are interest rates attractive?

A low rate not only helps you buy a larger home, but also makes it easier to find a buyer and interest rates are currently at record lows. 

If you answer yes to most of the questions, it's a sign that you may be ready to move. If so, please visit EileenWalshRealtor.com to learn more about the Los Angeles real estate market or give me a call. I'm glad to help!

Have questions? Ask Eileen!

What's your Los Angeles home worth?