60 Minutes just aired an interesting piece about homeowners who owe more on their mortgage than what the house is worth. While those who cannot afford their payments are forced into bankruptcy, a growing number of homeowners who CAN afford their payments are simply "walking away" from their homes. In some estimates, 1 in 5 homeowners who go into default, CAN afford to make their payments but are choosing not to!
Nearly 11 million homeowners nationwide are in such circumstances. California has it pretty bad at 33% but our neighbors to the east Arizona and Nevada are in much worse condition boasting negative mortgage rates at 50% and 65% respectively.
According to Bloomberg:
“A growing number of U.S. homeowners owe more than their properties are worth after prices extended their two-year decline in the first quarter.
Almost 21.8 percent of all owners were underwater as of March 31. At the end of the fourth quarter, 17.6 percent of homeowners owed more than their original mortgage, while 14.3 percent had negative equity three months earlier.
Property values dropped 14 percent from a year earlier in the first quarter, reducing the median value of all U.S. single- family homes, condominiums and cooperatives to $182,378, Zillow said. The gain in underwater homeowners will lead to more bank repossessions, the company said.”
With more foreclosures on the way, we will probably see prices continue to fall until we solve our double digit unemployment rate and see fewer homeowners simply walking away from their homes.
Sunday, May 9, 2010
Wednesday, October 7, 2009
Another 4plex just steps from Beverly Hills
http://www.postlets.com/res/2780885
Charming 4plex in an amazing Beverlywood/Beverly Hills Adj. location. All 4 units are rented with good standing tenants and high rents. All 4 units have undergone upgrades in the past 4 years including remodeled kitchens and bathrooms. Laundry facilities on site, 4 garage parking spaces, hardwood floors throughout in every unit, water softener system, grassy courtyard.
Gross income is just under $94,000 per year!
1 unit @ $2100
2 units @ $1900
1 unit @ $1889
Charming 4plex in an amazing Beverlywood/Beverly Hills Adj. location. All 4 units are rented with good standing tenants and high rents. All 4 units have undergone upgrades in the past 4 years including remodeled kitchens and bathrooms. Laundry facilities on site, 4 garage parking spaces, hardwood floors throughout in every unit, water softener system, grassy courtyard.
Gross income is just under $94,000 per year!
1 unit @ $2100
2 units @ $1900
1 unit @ $1889
Monday, September 21, 2009
Tuesday, July 28, 2009
New Listing - 11272 Laurie, Studio City
First time on market in over 20 years!!! 3 Bedrooms, 2.5 Bathrooms + Den located in the most sought after CARPENTER School District. Fabulous unobstructed canyon views from the family room, Large LR with fireplace, formal DR, wet bar, Paneled den, all bedrooms have walk-in closets, master bedroom with 2 walk-in closets, private pool & grassy back yard, OVER 2600+ sqft and 15,000 lot size. Great floor plan, needs TLC. Easy to show.
Proudly offered at $899,000
Thursday, May 28, 2009
The Bottom of the Bubble...
Is yet to come...
No we still haven't hit the bottom of the housing decline but there continue to be positive signs for home buyers. With sales of existing homes increasing nearly 3% in April, primarily due to strong numbers of purchases in low price ranges.
First-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. According to Lawrence Yun, National Association of Realtors chief economist,“Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish.”
Which can be rather frustrating for clients who are qualified to buy in the low $400s that seem to be competing with many other home buyers almost always resulting in multiple offers and bidding wars.
Yun continues, “Because foreclosed properties will likely be released into the market over the rest of year, it is critical that distressed homes be quickly cleared from the market. Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida – this will set the stage for healthy market conditions going forward.”
Let's hope so, Yun! One thing's for sure is that we need to fix unemployment otherwise more homes will be lost to foreclosure and prices will continue to slump with only fewer well-qualified buyers willing to make the plunge into home-ownership.
No we still haven't hit the bottom of the housing decline but there continue to be positive signs for home buyers. With sales of existing homes increasing nearly 3% in April, primarily due to strong numbers of purchases in low price ranges.
First-time buyers continue to influence the market but there also is a seasonal rise of repeat buyers. According to Lawrence Yun, National Association of Realtors chief economist,“Most of the sales are taking place in lower price ranges and activity is beginning to pick up in the midprice ranges, but high-end home sales remain sluggish.”
Which can be rather frustrating for clients who are qualified to buy in the low $400s that seem to be competing with many other home buyers almost always resulting in multiple offers and bidding wars.
Yun continues, “Because foreclosed properties will likely be released into the market over the rest of year, it is critical that distressed homes be quickly cleared from the market. Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida – this will set the stage for healthy market conditions going forward.”
Let's hope so, Yun! One thing's for sure is that we need to fix unemployment otherwise more homes will be lost to foreclosure and prices will continue to slump with only fewer well-qualified buyers willing to make the plunge into home-ownership.
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