Bevery Hills, Brentwood and Santa Monica on "Forbes" List of Best Suburbs

This week, Forbes released their list of the best "standard of living" suburbs for the nation's 15 largest cities. Beverly Hills, Brentwood and Santa Monica were chosen as the best suburbs for the city of Los Angeles.

The magazine considered such obvious factors such as school quality and crime, but also looked at demographics such as income, education level, and home ownership levels of the suburb's residents.

Click here to read the full article at forbes.com.

(Property in the photo, 1611 Benedict Cyn Drive in BHPO, is currently for sale and can be viewed by clicking here!)

Breaking: Existing Home Sales RISE in February!

Numbers released from the National Association of Realtors yesterday show that sales of existing homes across the U.S. actually increased in February, a sign that things finally may be turning around.

NAR Chief Economist Lawrence Yun stated that while "we're not expecting a notable gain in existing-home sales until the second half of this year, the improvement is another sign that the market is stabilizing."

It also seems that even in areas where prices are falling, activity is strong. According to the NAR roughly half of all metropolitan areas in the nation are experiencing median price increases, while in areas that are seeing prices fall, "a rapid price decline has induced buyers to come into the market, and sales are now rising."

While it remains to be seen whether or not this improving trend will continue, one thing we know for certain is that real estate is LOCAL. Consumers need to work with professionals who have a deep understanding of their neighborhood in order to get a true understanding of a home's value and where prices may be headed.

(Property in the photo, 4218 Vicasa Drive in Calabasas, is currently for sale and can be viewed by clicking here!)

Connie on Fox Business Channels's "Money For Breakfast" Hosted by Alexis Glick

Yesterday morning I woke up VERY early to appear on Fox Business Channel's "Money For Breakfast," hosted by anchor and Business Week VP Alexis Gilck. Because the show airs live on the East Coast, I had to be in the studio on camera...at 4:15am! Needless to say, I was VERY sleepy by the end of the day.

I was asked to speak, along with Director of Deloitte & Touche LLP Real Estate Capital Markets Dennis Yeskey, about the influx of Canadian investors in the United States real estate market. It was an honor to speak with Alexis, who is an extraordinarily talented woman whom I have much respect for. Hopefully I will have honor of being asked to come on her show again in the future!

Working in Los Angeles, I cross paths with buyers from all over the world on a daily basis. One of the things that gives me an edge in working with these clients is the fact that I lived in Europe for seven years. Perhaps that is one of the reasons that I am often asked to comment on international influence on our real estate market- my time abroad gives me a greater insight and perspective to these issues. I think it is important to stay on top of what is happening in our global markets because it inevitably affects us here in the States- especially today, in a time of such uncertainty.

Fed Cuts Interest Rate by 3/4 Point

As suspected, the Federal Reserve did indeed cut interest rates today. Although the 0.75 point cut was a bit less than expected (many investors had hoped for a full point cut), Wall Street surged after the move was announced and had its largest one-day point gain in more than five years.

It remains to be seen how all of the recent rate cuts will affect our currently tumultuous real estate market. Economists note that it takes an average of six months for the effects of any kind of rate cut to be felt in the economy. What it could do sooner, however, is settle the fears of many consumers out there by letting them know that the Fed is willing to step up and do what they can to keep us out of a recession. (the dreaded "R" word!) Time will tell, but let's hope that consumer confidence can grow and that the rate cuts will begin to help us turn things around...

source: msnbc.com

Surprise Weekend Move: Fed Cuts Discount Rate

In a surprise move, the central bank cut the discount rate to 3.25% from 3.5% over the weekend, as a way to make cash more accessible to strapped banks. The move, which applies only to the Fed's short-term loans, was considered a surprise by many because it came only two days before the Fed's regularly scheduled policy meeting. At tomorrow's meeting, the Fed is expected to cut the fed funds rate (a consumer lending rate) by a full percentage point.

Stay tuned for more information on tomorrow's meeting, as well as information on how these cuts will affect you as a homeowner or potential home buyer/seller...

HEADLINE NEWS: Bear Stears Bail Out!

Bear Sterns was bailed out of trouble by the Federal government and rival bank JPMorgan Chase. This morning's move comes on the heels of last week's announcement by the Fed that it will provide as much as $200 billion in loans to banks and investment houses to try to alleviate market turmoil.

In addition, inflation has been a recent topic of discussion. Recent reports show that the rate of inflation is actually lower than many were speculating. It appears that certain areas of our economy are doing well, just as certain areas of real estate are also performing better than many are aware.

Whether you are in the market for a foreclosure fixer or a mansion in Bel Air, I can not reiterate to you enough how important it is to do your research and find quality representation. Please remmeber to qualify a Realtor as you would an attorney or a doctor.

HOPE Helpline Not Making Consumers Happy

Apparently the new Hope Now Alliance, which launched in October as a program to offer assistance to distressed homeowners, isn't offering so much hope after all. The toll-free number established for homeowners in trouble has received harsh criticism from Congress, state officials, and the very people they are aimed at helping- those facing foreclosure.

The Hope Now Alliance ws established to offer aide to the growing number of homeowners who are at risk of losing their homes. The partnership was promoted by President Bush, who mentioned it specifically in a December speech as part of his vow to take an active role in resolving the nation's housing crisis. The programe, however, has been receiving very negative feedback, plagued by insanely long wait times, difficuly getting through to a counselor, lack of follow-up on individual cases, confusion, and making minor loan modifications for those in trouble.

You can click here to read the article and hear some first-hand accounts. If you are one of those homeowners in crisis, please feel free to contact me so that I personally may put you in touch with someone who can help.

source: msnbc.com

Luxury Homes Still Selling Strongly

An article published by Businessweek yesterday discusses the strength of the ultra-luxury home market, despite all of the negativity we hear about housing on a daily basis. Some of the most lavish and luxurious homes our country has ever seen have either just sold or are currently for sale, including the former home of William Randolph Hears and Marion Davies, which is listed right here in Beverly Hills for $165 million, making it the highest asking price for a home in U.S. History.

Even in markets that we hear so much bad news about, the trend is quite clear: the high-end market IS performing. Areas like Las Vegas and Florida, with which we associate the worst of the foreclosure crisis, there are areas of robust sales. Trophy homes are moving- and moving very well. In Las Vegas, the luxury condos on the Strip still have very strong prices and sales. The same goes for Palm Beach, Florida, as well as our very own Beverly Hills. New York is also doing its part to keep up with pace, where recent mind-boggling sales include last year's $103 million oceanfront home in East Hampton, N.Y., and a $49 million townhouse on the Upper East Side which just recently closed.

How can these properties be immune to the mortgage and economic struggles being felt across the nation? Well, there are actually many reasons why these homes continue to move well.

• Quite simply, the mega-rich don't care what's going on in the mortgage markets because it probably won't affect them. If they see a property that they fall in love with, they have the means to cough up the $15 million asking price- CASH.
• The supply of those so-called "trophy" properties is limited- there are only so many of those in the world. And, there are only so many more that can be built without demolishing smaller homes, since land is a limited commodity.
• Foreign buyers are coming to our country in the face of the weak dollar to snatch up what amounts to "bargains" for them.

Who knows if this trend will continue, but for now at least it seems true more than ever...it's good to be rich. :)

Sources: msnbc.com, themls.com

Interview With Eduardo Umansky From Countrywide

Let's face it- times are confusing. I feel that we are constantly being fed mixed-messages regarding what's happening on the housing and mortgage fronts. Even as a real estate professional myself, I often need help gaining some insight as to what is REALLY happening out there, which is why I look to people like Eduardo Umansky from Countrywide Home Loans. Eduardo is experienced, intelligent, and, as I can tell you from past experience doing deals with him- he can make even the toughest loans happen. I recently asked Eduardo a few questions that I thought might offer a little perspective into this mortgage headache so many people are having. Fannie Mae just announced last week that it would begin accepting applications for Fixed Rate Mortgages starting April 1st for the new Jumbo loan limits, and May 1st for all Adjustable Rate Mortgage applications. Below, Eduardo gives us some further insight into the changes being made.

1. With the Fed funds rate cuts, why are the home loans not affected or increasing? Will the spreads continue to grow and is there anything to stop this current trend?
Fed controls liquidity and short term interest rates, such as overnight bank loans and prime rate. The influence on mortgage rates is not very significant.

2. My friend’s home equity loan has been unaffected by the Fed rate cuts- I thought the cuts would have a positive affect.
It will be affected if based on PRIME RATE changes. Those changes will appear on next month's statement.

3. When will we know the rates for the new limits that have gone into effect? I hear they will be slightly higher than the 417,000 conforming rate.
New limits for FHA are $729K for Single Family Residences, $934K for 2-unit dwellings, $1,129K for 3-unit dwellings and$1,403K for 4-units. Rates will be implemented by March 19th, 2008, or possibly earlier. Slightly higher loan limits will also be available with Government Guaranty. (Conforming loans)

4. What is the correct name for this new increased rate- is it still called a conforming loan? Yes- "conforming loan limits."

5. If I had a buyer today, could you get me this loan?
Yes, I can lock a loan and change it when actual rates are available on 3/19. The rate of the loan will be the rate of the day of the transfer.

6. What are the guidelines for this sort of loan, excluding area, that may differ from the original conforming loan restrictions?
Loans must be FULL DOC- i.e. full documentation. The FHA might also require two appraisals as opposed to the usual one.

7. Do you think this will help in the near future (next 3 months) enough that we will see some better housing data in areas with those increased limits?
This, unfortunately, will not affect foreclosures. It will help by increasing liquidity for purchases and refinances. I don't think it will have a "quick" effect in the housing market.

New Economic Data Released Today...

The Labor Department released its figures today, and they're a bit bleaker than we hoped for. Employers cut 63,000 jobs in February, which is a high for any month in the past five years. The job losses were witnessed in nearly every sector, including construction, manufacturing, retailing, finance and other professional and business services.

President Bush even spoke out today, saying that “it’s clear our economy has slowed” while trying to reassure us that the forecast was still good. He insisted that the government has recognized the problem early enough to get on top of it, and expressed hope that the rebate checks that will be sent out in May as part of the Stimulus Package would help spur consumer spending.

There was, however, some good news this week. On Wednesday HUD announced that Fannie Mae and Freddie Mac were temporarily raising their conforming loan limits, from $417,000 to as high as $729,750 in fourteen counties in California for loans originated between July 1, 2007 and Dec. 31, 2008. The idea is to make it easier for home buyers in expensive areas to get loans, as well as to increase investor demand for securities made up of more expensive mortgages. Los Angeles County, with our high home values, was one of the counties raised to the maximum level of $729,750. You can click here to see the values for your county.

(sources: car.org, msnbc.com)

Welcome!

Hello All! If you're a regular reader of my blog, you probably are surprised by the whole new look! I have revamped my blog and have vowed to update it much more frequently so that you all have up-to-the-minute insight on the real estate world. Please feel free to comment and share your thoughts- I truly enjoy hearing what you have to say.

In the meantime, you can access all of my archived blogs by clicking here.

As always, feel free to leave me a comment or send me an email if you would like me to comment on any particular subject, or if you have any thoughts about what you see here.

On that note....welcome and enjoy!

-C