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 August 2011

August 28,2011 - Last Week in the News 

Retail sales fell 1% for the week ending August 20, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3%.

New home sales fell 0.7% in July to a seasonally adjusted annual rate of 298,000 units from a downwardly revised rate of 300,000 units in June.

Orders for durable goods — items expected to last three or more years — rose 4% in July after a revised 1.9% increase in June. Excluding volatile transportation-related goods, orders posted a monthly increase of 0.7%.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending August 19 fell 2.4%. Refinancing applications decreased 1.7%. Purchase volume fell 5.7%.

The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at a revised annual rate of 1% in the second quarter of 2011, compared to the initial estimate of 1.3%. This follows a 0.4% pace of growth in the first quarter of 2011.

The Reuters/University of Michigan consumer sentiment index for August's final reading rose to 55.7 from a preliminary reading of 54.9, which was the lowest level since May 1980.

Initial claims for unemployment benefits rose by 5,000 to 417,000 for the week ending August 20. Continuing claims for the week ending August 13 fell by 80,000 to 3.64 million, the lowest level since September 2008.

Upcoming on the economic calendar are reports on pending home sales on August 29, the housing price index on August 30 and construction spending on September 1.

August 28, 2011 - Malibu / Topanga - Open House List for Sunday 8/28/2011

Are you looking to buy or lease a home? Or maybe you just want to see what's out there. Here are the open houses taking place this weekend in the Malibu area.

For more information on the listings, visit www.4Malibu.com or email us at Info@4Malibu.com.

MALIBU

• 6473 Zuma View Place No. 137 (3 bedrooms, 2.5 bathrooms): Asking $1,124,900; Sunday 2 p.m. to 5 p.m.
• 24750 West Saddle Peak Road (3 bedrooms, 3 bathrooms): Asking $1,248,000; Sunday 1 p.m. to 4 p.m.
• 20906 PCH (2 bedrooms, 2 bathrooms): Asking $5,750,000; Sunday 2 p.m. to 5 p.m.
• 31536 Victoria Point Road (3 bedrooms, 4 bathrooms): Asking $7,850,000; Sunday 2 p.m. to 5 p.m.
• 24420 Malibu Road (4 bedrooms, 4.5 bathrooms): Asking $12,750,000 (sale), $35,000 (lease); Saturday and Sunday 2 p.m. to 5 p.m.
• 3224 Malibu Canyon Road (3 bedrooms, 2.5 bathrooms): Asking $1,695,000; Sunday 2 p.m. to 5 p.m.
• 24743 Vantage Point Terrace (5 bedrooms, 3.5 bathrooms): Asking $2,250,000; Sunday 2 p.m. to 5 p.m.
• 27312 Winding Way (4 bedrooms, 5.5 bathrooms): Asking $7,350,000; Sunday 2 p.m. to 5 p.m.
• 20152 PCH (4 bedrooms, 4.5 bathrooms): Asking $2,695,000; Sunday 1 p.m. to 4 p.m.
• 11802 Ellice Street (4 bedrooms, 6 bathrooms): Asking $17,000,000; Sunday 1 p.m. to 5 p.m.
• 11624 Ellice Street (Residential Land): Asking $9,000,000; Sunday 1 p.m. to 5 p.m.
• 11744 Ellice Street (Residential Land): Asking $8,000,000; Sunday 1 p.m. to 5 p.m.
• 11824 Ellice Street (Residential Land): Asking $7,000,000; Sunday 1 p.m. to 5 p.m.
• 11768 Ellice Street (Residential Land): Asking $8,000,000; Sunday 1 p.m. to 5 p.m.
• 11902 Ellice Street (Residential Land): Asking $4,000,000; Sunday 1 p.m. to 5 p.m.
• 11846 Ellice Street (Residential Land): Asking $6,000,000; Sunday 1 p.m. to 5 p.m.
• 22626 PCH No. 8 (2 bedrooms, 2 bathrooms): Asking $1,250,000; Sunday 12 p.m. to 5 p.m.
• 24450 Malibu Road (3 bedrooms, 3.75 bathrooms): Asking $7,495,000; Sunday 2 p.m. to 5 p.m.
• 6228 Sycamore Meadows Drive (3 bedrooms, 3.5 bathrooms): Asking $3,995,000; Sunday 2 p.m. to 5 p.m.
• 31834 Broad Beach Road (3 bedrooms, 2.75 bathrooms): Asking $2,495,000; Sunday 2 p.m. to 5 p.m.

TOPANGA

• 516 Fernwood Pacific Drive (2 bedrooms, 2 bathrooms): Asking $765,000; Sunday 2 p.m. to 5 p.m.
• 1118 Mohawk (3 bedrooms, 2 bathrooms): Asking $329,000; Saturday 11 a.m. to 2 p.m.

August 27, 2011 - Foreclosures made up 31 pct. of home sales in 2Q

Foreclosures made up roughly one-third of all home sales this spring. While that's a smaller share of sales from the previous quarter, it's six times the percentage of foreclosures in a healthy housing market.

Foreclosure sales, which include homes purchased after they received a notice of default or that were repossessed by lenders, accounted for 31 percent of the market in the April-June quarter.

The share of the market would likely have been larger this spring if not for a state and federal investigation into faulty paperwork by banks and servicers. The probe has led many banks to delay foreclosure sales. Once that is complete, foreclosures will likely surge later this year.

As a slice of all home purchases, foreclosure sales peak two years ago at 37.4 percent. In the second quarter, they declined from 36 percent in the January-March period.

Bank-owned homes, which are sold after being repossessed, accounted for nearly 19 percent of all sales. That's unchanged from the previous quarter.

In all, 265,087 homes in some stage of foreclosure or owned by banks were sold in the second quarter, down 11 percent from the same period a year ago. Sales of all other types of homes also declined,

Distressed properties, often in need of repair, typically sell at big discounts and weaken prices for neighboring homes.

August 27, 2011 - How to lower your property taxes  

Despite home prices in major urban centers decreasing 31 percent between 2005 and 2009, property taxes across the U.S. increased by nearly 20 percent.  There is good news, however; homeowners can fight back.

Although homeowners cannot change their property-tax rate, which is set by the local government, homeowners can get their assessment lowered if they appeal to their local assessor.

August 27, 2011 - ?4 Malibu's Leasing Dept. & Property Management

4 Malibu Real Estate Partners offers a full-service property management & leasing department, representing Landlords & Tenants.

?Looking for Malibu Rentals? 

• No Membership Required

• Search our Malibu site for a complete list of Malibu rentals available. Updated daily.

• Daily Email Alerts

• Oceanfront, landside, vacation, furnished, unfurnished, short-term, long-term options available

• Inquire about our Relocation Program

• Concierge Services Available

• We Schedule Appointments

• Free Consultation

?Landlords - List with Us! 

• We list long-term, short-term, vacation, furnished and unfurnished properties

• Extensive Client List

• Property Management Services

• Extensive Tenant Screening Includes:

º Criminal Records Search

º State Evictions Search

° Landlord Verification

° Employment Verification

• Unparalleled Customer Service

• Knowledge of the Latest Landlord-Tenant Laws

• Maximize Your Revenue

• Shorter Vacancy Cycles

• Determine Optimal Rental Price

• Effectively Market Your Property

• Better Tenant Retention

• In-House Maintenance Crew

• Network of Licensed, Bonded & Insured Contractors

• Written Maintenance Check Program

• Advertise Your Property for Free 

?PROPERTY MANAGEMENT

If you own property in Malibu and are in need of a Malibu property management company please contact us (310.456.3655 or PropertyManagement@4Malibu.com) today for a free quote.

August 23, 2011 - Pending home sales dip in California

California pending home sales dipped in July from the previous month, as did the share of sales of distressed properties, the California Association of Realtors said.

Pending home sales in California fell 1.7% in July, according to CAR's Pending Home Sales Index. The index was 117 in July, down from June's index of 119, based on contracts signed in July. The index was up 4.9% from July 2010.

Pending sales have been ahead of last year's level for the past three consecutive months and should be on track to finish the year even with last year's pace.

The total share of all distressed property types sold statewide fell to 44.5% in July, down from June's 46.9%. The share of distressed sales also was down from a year prior, when distressed sales made up 47.7% of all home sales.

Of distressed properties sales, 17.5% were short sales, down from 19.3% in June and 20.9% in July 2010.

Pending REO sales accounted for 26.7% of the market in July, down from June's 27.3% figure, but up slightly from the 26.3% reported in July 2010.

August 23, 2011 - Home sales going nowhere fast

Analysts reacted to the July new home sales decline Tuesday with dread, saying the housing market has years of stalled recovery ahead.

The Commerce Department reported the seasonally adjusted rate of new home sales in July declined 6.8% from one year ago, coming in below analyst expectations. Sales slumped back below the 300,000 market and sit not too far from the low of 278,000 units in August 2010.

New home sales have to compete with a flood of distressed and previously foreclosed properties. The Commerce Department estimates roughly 165,000 new homes for sale on the market, roughly equal to a 6.6-month supply. However, the shadow inventory of distressed property ranges as high as 4.5 million properties, according to theMortgage Bankers Association.

Standard & Poor's recently said the market would need 44 months to work through the shadow inventory supply.

Paul Dales, a senior economist at Capital Economics, said the July figures are actually worse than they look. Taking into account the 3.5% drop in existing home sales in July, reported by the National Association of Realtors, the annualized rate of home sales dropped to 4.98 million in June.

August 21, 2011 - California home sales decline in July, but remain higher than a year ago

Closed escrow sales of existing, single-family detached homes in California dropped 4.1 percent to a seasonally adjusted 458,440 units in July, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  July home sales were up 4.5 percent from the 438,850 units sold in July 2010.  The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the July pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The statewide median price of an existing, single-family detached home sold in California dipped 0.3 percent in July to $294,230 from a revised $295,210 in June.  July’s median price was down 7.6 percent from the $318,550 recorded in July 2010.

Despite the uncertain outlook, interest rates are at near-record lows, and home prices are favorable. Well-qualified, motivated buyers who expect to own their home for more than a few years should carefully study their options now.

August 21, 2011 - Housing survey finds job loss a top concern for American workers? 

Concerns about job loss and increasing consumer pessimism reveal that 64 percent of Americans surveyed during the second quarter say the economy is on the wrong track, according to Fannie Mae's latest quarterly National Housing Survey.

The monthly survey found that 70 percent of respondents now believe the economy is on the wrong track, and just 23 percent say the economy is heading in the right direction.

More than a quarter (26 percent) of American workers reported being concerned about losing their job in the next year. While 44 percent of concerned American workers reported having a home mortgage (compared with 42 percent of all Americans), just 33 percent of them perceive their savings to be sufficient (versus 49 percent of those workers not concerned about losing their job).

Forty-four percent of these workers say their household expenses have increased significantly over the past year, compared with 35 percent of workers not concerned about losing their job.

Nearly three-fourths (73 percent) of single-family renters say it would be difficult to get a home mortgage, with 33 percent citing their credit history as the biggest obstacle to getting a home mortgage (versus 20 percent of multifamily renters), according to the survey. 

August 21, 2011 - Expiring October 31, 2011: Home Path Buyer Incentive Offer?

Fannie Mae recently extended its HomePath Buyer Incentive Offer, in which buyers may be eligible to receive up to 3.5% in closing cost assistance, through October 31, 2011. To qualify, your initial offer must have been submitted on or after June 14, 2011 and you must close by October 31, 2011. In addition, buyers and/or selling agents must request the incentive upon submission of the initial offer in order to be eligible, and only buyers purchasing a HomePath property as their primary residence qualify.

August 19, 2011 - Malibu Canyon Fire Lawsuit in Final Pretrial Stages

From Malibu Patch - 

The Canyon Fire was started in 2007 by downed utility poles that litigants claim were overloaded by several telecommunications companies.

A multiparty legal dispute regarding one of Malibu's three major fires in 2007 will soon go to trial. A pretrial conference took place last month regarding the suit involving the Canyon Fire, which destroyed 14 structures and damaged 19. The plaintiffs—residents, businesses and insurance companies—say overloaded power poles are to blame. The trial is expected to start in February.

The Canyon Fire began Oct. 21, 2007, a day Malibu was threatened by the dangerous combination of strong winds and intense heat. The fire was sparked when three wooden utility poles broke and fell, causing live electric wires to ignite the surrounding brush, according to an investigation by the state Public Utilities Commission. At the time, the poles were owned by Southern California Edison and a slew of telecommunications providers. 

The plaintiffs claim that Edison and the other companies named in the suit overloaded the poles, causing them to break and start the fire. They are asking to be reimbursed for the costs of damages and fire suppression.

A married couple whose home was destroyed had named the city of Malibu as a peripheral defendant in the consolidated suit, but that part of the case was dismissed earlier this month, said Edwin Richards, an attorney representing the city.

Among the destroyed structures in the nearly 4,000-acre fire were the Malibu Presbyterian Churchand Castle Kashan, owned by philanthropist Lilly Lawrence, the suit's lead plaintiff.

There were two other major fires in 2007. The unsolved Malibu Road Fire in January destroyed five homes, damaged four others and threatened Bluffs Parks. The Thanksgiving weekend Corral Fire, which was started by a group of young men in a notorious party location known as The Cave on State Parks-owned land, destroyed 53 homes. This was the last major fire in Malibu.   

The Public Utilities Commission's investigation of the Canyon Fire is expected to conclude early next year. The main focus of the investigation is the loading capacity of the power poles and their ability to withstand various wind forces.

A source close to the investigation told Malibu Patch that Edison had a different interpretation of the commission's general order or rules, which stipulated that the poles needed to withstand gusts of more than 90 mph. The Edison poles could only withstand gusts under 60 mph, the source said.

"The poles have been replaced," the source said. "[The commission] didn't find out until sometime around December that all the fiber optic cables [evidence in the investigation] were also destroyed ... [the commission was] led to believe that they weren't."

Edison declined to respond to the allegations.

"Due to ongoing litigation on this matter, we cannot comment on this matter at this time," Edison spokesman Steve Conroy said.

Ed Meyer, whose Piuma Road home is located just outside the area affected by the fire, said he said he has been complaining for several years about what he considers to be overloaded poles. He said his concerns have been ignored.

"You can look right now and still see the lines swinging in the wind," Meyer said. "They haven't done a single thing to fix the problem."

August 18, 2011 - Existing home sales fall 3.5% in July

Sales of existing homes in July fell 3.5% from the prior month, as tightened lending standards continue to hurt potential homeowners, according to the National Association of Realtors.

The huge trade group said sales of single-family homes, townhomes, condos and co-ops decreased to a seasonally adjusted rate of 4.67 million last month from 4.84 million in June.

NAR said July existing home sales were 21% higher than 3.86 million a year ago, which was the cyclical low immediately following the expiration of the homebuyer tax credit.

NAR said 16% of its members reported contract failures in July, while 9% said a contract was delayed in the past three months due to low appraisals, and 13% renegotiated a deal to a lower price following a appraisal less than the initially agreed price.

The inventory of existing homes for sale fell 1.7% in July to 3.65 million, representing a 9.4-month supply, according to NAR. That is up from 9.2 months worth of supply in June.

The median price on existing home sales fell to $174,000 in July, down 4.4% from a year earlier, according to NAR. Sales of distressed properties accounted for 29% of all sales in July, down from 30% in June and 32% a year ago.

August 15, 2011 - How Do You Determine A Home's Value?

Determining a home's value is not an exact science and it's never a fixed number.  Very few people outside of the real estate business can accurately come up with a value.  Why?  Homeowner's think their house is always "the best".  Appraisers look at a home based primarily on statistical data.  Buyers and Realtors® have their own views.  Depending on who you are, you may give more weight to different factors.  So, will you have a wide variety of opinions?  You bet.  These are some of the factors to consider:

A home's estimated value is almost always determined by either an appraisal or a comparative market analysis.  These are the most accurate ways to determine what the home is worth.  An appraisal is a written analysis of the estimated value of the property.  The appraiser's job is to determine the approximate fair market value.  A properly licensed appraiser who has good experience, expertise and is familiar with the area creates the appraisal.  Anyone can order an appraisal, which typically costs $200 to $400.  It will include a complete "breakdown" of the property and compare it to recent comparable sales in a "grid" format.  Photos of both the subject and the comparables will be included.  A full, formal appraisal averages between 12 and 20 pages, not including the photos.  There is a ton of information included.
 
A comparative market analysis is an informal estimate of market value that a real estate agent or broker determines based on comparable properties that have recently sold.  If a new bank loan is required to purchase a home, the majority of the time the bank will want something from an appraiser.  Regardless of what the buyer, seller or Realtor® determine as the value, the final say so is the appraiser's.  On the other hand, a buyer or seller may not agree with the appraiser's value for other reasons.  Unless all parties agree, you could have problems closing the transaction.  To make things even worse, different appraisers can see values differently.  In the case of a disputed value, it's often beneficial to get a second opinion.  That will cost someone more money, but may help to solve the issue.  With condos or planned community properties, it's a bit easier to determine value.  The first is because the place you look is within the project itself because it will likely contain nearly identical properties.
 
Can you determine a property's value through the internet?  The internet is a great source to get a rough idea of value, but that's all.  There are simply too many variables to take into consideration.  If you don't have that kind of experience, you are going to miss the number.  A professional Realtor® is always the best place to start.  As always, if you need help or advice, just respond to this email.

August 15, 2011 - COMING SOON - Malibu Bank-Owned/REO - 3B/3B - Inquire Now!

View the property website at http://www.4Malibu.com/listnow/property/31422BirdellaRd.html

- Not in the MLS
- Craftsman-style home
- High ceilings
- Large family room
- Dining room with wood-burning fireplace
- Master suite with large walk-in closet
- On cul-de-sac street
- Access to nearby hiking trails
- Close to freeway & beach
- Price TBD

View other bank-owned homes on the market & coming to market soon at: http://www.4Malibu.com/bank-owned.html

August 14, 2011 - Looking for Malibu Rental Homes? Complete List Here - Property Management Services

Looking for Malibu rental homes? Visit the complete list of Malibu rentals here.

• Beachfront
• Landside
• Furnished/Unfurnished
• Short-term/Long-term
• Vacation Rentals
• Estates, Condos, Townhomes

4 Malibu Real Estate Partners also offers a full service Leasing Department which includes a Property Mangament Division.

August 14, 2011 - Looking for distressed properties in Malibu? We have inventory.

Looking for Malibu Bank-owned/REO/Foreclosures? Stop by our new office directly across from the Malibu Pier, right next door to the Malibu Inn.  We have inventory currently on the Malibu real estate market and have shadow inventory. We have the insight to the distressed properties in Malibu & the surrounding communities. Let us know what you are looking for and we will find the right property for you.

August 14, 2011 - 5 Tips for Inspecting and Maintaining Your Garage

Routine maintenance will help your garage retain its value and keep it trouble-free for decades.

1. Keep your garage door running smoothly

Most newer garage doors come self-lubricated or with plastic parts that need no oil. You’ll need to annually oil older doors with metal rollers, hinges, and tracks. Use a leaf blower to blast all the grit, grime, dust, cobwebs, and dead bugs from the door’s parts.

Occasionally check the rubber seal on the bottom of your garage door. It can harden or chip away from wear and tear, allowing the elements to seep under your door. Replacing the seal costs less than $100. Your door may be hitting the ground too forcefully and jarring all the parts, crushing the rubber seal, or allowing light to peek through at the bottom when the door is at rest. To correct those problems, says Secord, use a screwdriver to alter the travel limit adjustment located on the door opener’s control box.

Regularly test the garage door’s sensors to be sure they still prevent it from closing if something—like your child or pet—is in the way.

2. Clean your garage floor

Hose down your garage floor annually to prevent slip hazards, stains, and pockmarks caused by road salt and auto fluids, recommends Secord. You may notice hairline cracks in your concrete slab, but those are generally no cause for concern.

If there’s a serious trip hazard because of concrete that’s crumbled or separated ¼-inch or more, take action. You can try a do-it-yourself patch with a $5 concrete mix from your local hardware store. But patched concrete often doesn’t adhere to the original slab, says Fisher, especially if a car regularly passes over the patched area. If necessary, ask a licensed concrete contractor for an estimate on replacing your slab, which typically costs about $5 per square foot.


Do-it-yourself sealants for an average two-car garage cost about $800 to $1,200 and need reapplication every three to five years. One-time, professional applications cost $1,500 to $2,000, says Secord.

3. Monitor your garage walls and foundation

Inspect interior and exterior walls and the foundation twice a year for moisture and cracks. If you see discoloration or mold, moisture is seeping in from the roof or the walls. Call a building or roofing contractor for an inspection and repair estimates.

Wall and foundation cracks smaller than ¼-inch wide that aren’t causing water damage are typically harmless. Anything larger than a hairline crack is something to be concerned about. If one side of your ceiling appears a little lower than the other, the foundation or footing has settled. That’s sometimes hard to evaluate with a visual inspection; if necessary, get out your level.

4. Clean interior doors and gutters

Once a year, clean and inspect the interior door. Make sure the door is properly weatherstripped and that the threshold seal fits snugly against the bottom of the door.

Most building codes require the door allowing entry to your home to be fire-rated and self-closing. If the door is damaged or the self-closing mechanism has failed, repair or replace it. You’ll pay $250 to $300 for a new fire-rated door, plus $25 to $75 for installation.

If your garage has gutters, clean them every spring and fall and inspect them for damage. While you’re at it, check your roof for damaged or missing shingles or tiles.

5. Watch for pest invasions

Insects like termites and carpenter ants can furtively damage your garage walls. Inspect dark, cool, and moist spots, especially where garage walls meet the foundation, for borings from carpenter ants or termites. Termites digest the lumber, but carpenter ants tunnel it. If you see trails of sawdust, it’s carpenter ants. If you see chewed wood, it’ll likely be termites. Call in pest-control experts for an inspection and treatment.

Analysts at the bank originally lowered their prediction on future home prices in June. If prices continue to fall at this rate, they will be down 37% from their peak when they finally reach a bottom.

JPMorgan Chase analysts said a drop in distressed home sales activity buoyed prices a bit in the past few months, with the CoreLogic home price index rising for the third straight month in June, edging up 0.7%. Tighter underwriting standards across the board remain a challenge, with many borrowers unable to qualify for loans.

Without a fundamental improvement in the demand-supply imbalance, both seasonality and distressed sales may turn against us in the coming winter and push home prices lower.

Analysts said leading indicators in May suggested near-term improvements, but they also noted potential risks tied to a double-dip recession combined with headwinds from the U.S. debt downgrade and the European debt crisis.

Even though more consumers are turning to rental properties, JPMorgan said rising rental prices could eventually push potential homeowners off the fence, encouraging them to buy properties.

August 12, 2011 - Sand Castle on Billionaire Beach is Up for Auction

What is the starting bid for the Malibu house once asking $65 million? – A more modest $22 million. Even so, in auction terms that means a new record: It’s the highest priced home ever go to auction.

Talk about a motivated seller! This is another example of a growing trend of high-end home sellers choosing to auction their residences off as a way to nearly guarantee a home sale sooner than later.

The six-bedroom, nine-and-a-half-bathroom “castle” boasts a master suite with dual baths and two dressing rooms, a massive 90-foot great room, an oceanfront gym, and a blue leather chair-studded home theater room that cost $1.5 million to build.

There is also a wood-paneled library displaying a huge salt water aquarium and around the corner, a tequila tasting room. The 4,500-square foot oceanfront patio holds an outdoor kitchen and a 75 foot two-lane lap pool — the biggest ever permitted to be built in Malibu. The patio leads down to the sand and water, of which there is 150 feet of frontage.

August 12, 2011 - Housing affordability up in California with home price decline

Housing affordability increased in California in the second quarter as prices dropped from the same period a year earlier.

Fifty-one percent of California households could afford a single-family home priced at the median, according to the California Assn. of Realtors. That was an increase from 46% during the same period last year, when buyer tax credits fueled the market and pushed up prices. Affordability decreased from the prior quarter, but that was due to seasonal variations that pushed up prices.

Potential buyers needed to earn a minimum annual income of $63,080 to qualify for the purchase of a home priced at the state’s median, $293,580, which is the price at which half the homes sold for more and half for less. The house payment on that purchase, including taxes and insurance, would be $1,580, the group reported, assuming a down payment of 20% and an effective composite interest rate of 4.85%.

During the second quarter, affordability fell in the priciest parts of the state. San Bernardino County was the most affordable in the state, with a rate of 77%, while San Mateo County was the least affordable, with only 21% of households in the state able to afford that county’s median-priced home, the group reported.

August 12, 2011 - Home ownership hits lowest level since 1965

As the foreclosure crisis continues to wreak havoc on the housing market, a source of national pride has taken a sour turn. Home ownership is on the decline and, according to a recent Morgan Stanley report, the United States is fast becoming a nation of renters.

Last Friday, the Census Bureau reported that the percentage of people who owned a home had dropped to 65.9% during the second quarter -- its lowest level since the first quarter of 1998 and a far cry from the high of 69.2% reached in late 2004.

As the foreclosure crisis continues to wreak havoc on the housing market, a source of national pride has taken a sour turn. Home ownership is on the decline and, according to a recent Morgan Stanley report, the United States is fast becoming a nation of renters.

Last Friday, the Census Bureau reported that the percentage of people who owned a home had dropped to 65.9% during the second quarter -- its lowest level since the first quarter of 1998 and a far cry from the high of 69.2% reached in late 2004.

While becoming a cosigner may seem like a good solution, money manager and lenders caution against those who are asked to be the cosigner.

A cosigner, even if not living in the house, is really a coborrower, meaning he or she still is responsible for payments if the occupant is unable to meet his or her obligations.  In other words, if the principal party defaults on the loan, the cosigner is on the hook.

One financial planner suggests potential cosigners take a less risky alternative, such as providing a cash gift for the down payment.  Under current tax laws, a person can give as much as $13,000 to a person, free of gift taxes, or $26,000 per person, if a married couple filing jointly is giving the money.

Those considering cosigning a mortgage must conduct due diligence.  First, the cosigner must understand why the family member or friend is asking for help.  Potential cosigners shouldn’t be afraid to look into the requestor’s personal finances to help determine whether he or she will be able to repay the loan.  Perusing credit reports also will show the track record he or she has for paying off debts.

A discussion about worst-case scenarios also should take place before signing on the dotted line.  Working out a written contract containing an agreement about what would happen in the event of a default, also is recommended.

Cosigners also should keep in mind that the mortgage will show up on their credit report, and could affect their own ability to borrow money or buy a second home.  If the principal borrower makes a late payment, that also will show up on the cosigner’s report.

August 11, 2011 - Foreclosure activity down across the West Coast - www.Malibu.com

Foreclosures across the West fell in July from the prior month, according to ForeclosureRadar.

The firm collects and analyzes foreclosure information from Arizona, California, Nevada, Oregon and Washington.

In Arizona, notices of trustee sales fell 16.8% last month when compared to June, marking the fourth-consecutive monthly decline. Back-to-bank foreclosure sales also fell, dropping 6.4% from June.

In California, notices of default filings dropped by 11.7% from June and 30.6% from a year ago, while notice of trustee sale filings were down 5.4% from June and 25.3% lower than July 2010. Nevada's notice of default filings fell 8.1% from June to July while notice of trustee sale filings fell 21% from June figures.

Oregon's notice of default filings dropped below 1,000 filings for the first time since February of 2008. The number of properties sold back to the bank were down 34.7%, while properties sold to third-party investors fell 17.8% from June.

In Washington, notice of trustee sale filings fell 16.8% between June and July, while foreclosures going back to the bank jumped 50.9% and foreclosures sold to third-party investors rose 43.6%.

The data firm said investors are faster at reselling foreclosures when compared to banks. Those results vary by area, with Oregon banks taking an average 232 days to offload inventory — or 156 days longer than third parties, who take only 76 days. In Washington, however, it took banks only 52 days longer than third parties to resell foreclosed property.

Banks dealing with California properties take about 104 days longer on average to resell real estate, while banks working on Arizona and Nevada houses take about 70 days longer to move inventory compared to third-party investors.

Politicians and bureaucrats are putting pressure on banks to become landlords, which will hurt local economic activity, as fewer properties are made available to local investors, also impacting their Realtors, contractors, and property managers; as well as to home buyers in need of affordable housing.

California foreclosure activity slowed again in July, except for a slight increase in Sold to 3rd Party auction sales on the courthouse steps. Notice of Default filings fell by 11.7 percent from June, and 30.6 percent from a year ago. Notice of Trustee Sale filings were down 5.4 percent from June, and have dropped 25.3 percent from July 2010. Cancellations decreased for the third consecutive month, with a 5.3 percent drop compared to June, and were down 32.0 percent year-over-year. Foreclosures going Back to Bank (REO) declined 4.0 percent from June, down for the second month in a row. Foreclosures Sold to 3rd Parties nudged up 1.2 percent from June, and are at the same level as this time last year. Time to Foreclose decreased slightly from June, down less than one percent to 313 days; although year-over-year remained up 19.5 percent. 3rd Party investors continue to resell inventory faster than banks, with the average at 131 days compared to the average Time to Resell for Banks at 235 days. 

The Institute for Supply Management reported that the monthly composite index of manufacturing activity fell to 50.9 in July after a reading of 55.3 in June. A reading above 50 signals expansion. It was the 24th straight month of expansion.

Retail sales fell 0.3% for the week ending July 30, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 4%.

Total construction spending rose 0.2% to $772.3 billion in June, following an upwardly revised 0.3% gain in May. Economists had anticipated an increase of 0.1% in June.

Factory orders fell 0.8% in June to a seasonally adjusted $440.7 billion, following an upwardly revised 0.6% increase in May. Excluding the volatile transportation sector, orders rose 0.1% in June.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 29 rose 7.1%. Refinancing applications increased 7.8%. Purchase volume rose 5.1%.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 52.7 in July from 53.3 in June. A reading above 50 signals expansion. It was the 19th straight month of expansion in the services sector.

Initial claims for unemployment benefits fell by 1,000 to 400,000 for the week ending July 30. Continuing claims for the week ending July 23 rose by 10,000 to 3.7 million. The monthly unemployment rate fell to 9.1% in July from 9.2% in June.

Upcoming on the economic calendar are reports on wholesale trade on August 10, international trade on August 11 and retail sales on August 12.

Home values across the United States fell 6.2% in the second quarter from a year earlier with a slight 0.4% gain from the first quarter, according to Zillow.

The average home values hit $171,600 during the three months ended June 30, but remain nearly 30% below the peak of June 2006, according to the online real estate services firm.

Values dropped in 142 of the 154 metropolitan statistical areas covered by Zillow. About two-thirds of the MSAs experienced home value appreciation.

At the same time, the rate of foreclosure resales fell from the peak in March when 21.4% of all sales were classified as foreclosures. In June, 19.7% of sales involved foreclosures.

The report concluded the double-dip decline in home prices that began in 2010 continued in the first quarter of this year, with prices dropping in 302 of the 384 markets surveyed.

Article from the Malibu Patch:

Rejecting the arguments of nearby residents, a majority of the Planning Commission on Tuesday night determined the Malibu Inn is meeting the demands of its conditional use permit from the city, and should be allowed to stay open until 2 a.m. all week. The restaurant/bar, which reopened in April, has only been allowed to operate until 2 a.m. on Thursday, Friday and Saturday as well as Sunday when the following Monday is a federal holiday. It has been forced to close at 12 a.m. on other days.

A group of residents living directly west of theMalibu Pier, which is located on the other side of Pacific Coast Highway from the Malibu Inn, said there is much noise coming from the facility. They said they would appeal the commission's decision to the City Council.

Alex Hakim, who bought the venue with his brother Steven in a 2009 foreclosure auction, said he did not expect the facility to operate until 2 a.m. every night, but he wanted the opportunity to stay open that late when it is needed. Hakim noted that nearby venues are allowed to operate past midnight, including BeauRivage (2 a.m.), Moonshadows (1 a.m.) and the former PierView and Windsail restaurants that are currently under construction (2 a.m.).

"We have proven ourselves as a respectable, first-class business like we set out to do," said Hakim, who called the revamped Malibu Inn "a food-first establishment and a live entertainment venue second."

He continued, "And at this time, we would like an opportunity to be at the same even-playing field as the other restaurants as well as have an opportunity to recoup our investment."

This argument persuaded Commissioner Joan House, who said she did not like having what she called "a two-tier system" in Malibu.

"For some reason that smacks as very undemocratic to me," she said.

While Hakim as well as Malibu Inn associates and supporters that addressed the commission said that much was being done to be cooperative with residents, including making the building soundproof, the neighbors painted a different picture.

"Having lived across the street, I can tell you there is a massive game of cat and mouse going on," resident Jonathan Roth said. "The operator, when we walk across the street and complain that the doors are open and we can hear the music, they close them for about 30 seconds, and then they open again. And as a resident and a homeowner, it gets a bit tiring doing that."

According to the city staff report, no complaints were made from when the business opened in April until June. There have been three complaints since that time, including one from the Malibu Inn when it needed help to get rid of a person who management said had arrived intoxicated.  

Commission Chair Jeff Jennings said when forced to determine who was correct between the residents and city/sheriff's officials, he went with the latter. He said sheriff's officials would not hesitate to say there were problems if they existed.

Robert J. Allan, who lives near the Malibu Inn, said after the meeting that he would provide evidence at the City Council hearing that Malibu Inn management was violating the permit. He said with its decision, the commission had chosen "money over public safety."

"[The Malibu Inn is] generating money," Allan said. "The city is broke. So they take the money over the public safety. It's as simple that."

Whether the city could be considered "broke" is a matter of opinion. Go here to see the 2011-12 city budget.

Hakim said after the meeting that he believed the criticism of the Malibu Inn was based on how the previous owner operated the venue.

"The previous owner might not have operated the place correctly, and they're scared that we are going to be similar to the previous owner," Hakim said. "And we've made every attempt to prove ourselves, and I think we have proven ourselves."

Commissioner John Mazza was the lone vote against extending the Malibu Inn's hours. He wanted to wait until January to vote on this, so that there could be more time to assess the Malibu Inn's operation.

"I used to party there 20, 30 years ago," Mazza said. "I know how obnoxious I was, so I have to consider that there is probably some reality to [the neighbors' complaints]. We don't have enough information to know what exactly is happening to the residents of the neighborhood."

The commission is expected to review a report of the Malibu Inn's compliance with its conditional use permit in November.

***** Come see 4 Malibu Real Estate Partners new office at the Malibu Inn. 

A Realtor^® or real estate salesperson is much more than the average salesperson.  Their primary job is to help you buy or sell a home and represent your best interests.  If you're unfamiliar with the real estate "game", the resources and expertise they provide is beyond most people's initial understanding.  Unless you are experienced in the biz, you will never know all of the pitfalls that can and do come up.  Most of them will cost you more time, money and grief than the agent's commission is worth.  You may not even be aware of your "mistake" until after the transaction has closed.  What they do is almost considered an art form.  Even with all of the resources out there, primarily the internet, 4 out of 5 people still use an agent for a sale or purchase.  The internet has enabled consumers to gain more information about the process and view some properties on line.  Still, that's the tip of the iceberg.  Seeing all available properties and obtaining the most recent sales data can only be accessed by a licensed real estate agent who is a member of the local MLS.  (Multiple Listing Service)  Like an attorney, CPA or other professional, their skills and knowledge are highly desirable and well worth the price.

For most people, buying or selling a home is near the top of the most important events in one's life.  Sure, some people are able to sell or buy a home without the services of a real estate agent.  For sellers, that's called a for-sale-by-owner, or FSBO.  You attempt to figure out a price, then stick a sign out front.  Next, wait to be contacted in person or by phone.  Then, spend time dealing and negotiating with possible buyers, paperwork, and hope for the best.  Will those buyers actually be able to qualify to buy your home?  Most agents won't show your home for several reasons.  First, they won't get paid.  Second, FSBO's are typically overpriced to begin with.  Third, they will usually not work with a self-represented, inexperienced seller.  Further, you won't be able to use the MLS, which makes your home visible to all potential buyers.
 
Real estate brokers and sales agents are paid to sell properties.  Depending on your area, that could be anything from farms to condos. They also find buyers the properties they're searching for.  Most spend endless hours assessing property values and searching through neighborhoods and cities.  Why?  That's what it takes to best represent each client.  It's a full time job and only a professional can properly handle it for you.  As always, if you need help or advice, just respond to this email.