If You Haven’t Watched the News for a Few Days You Are Probably Already Feeling Better

The news continues to be negative on all fronts (they have to make their ratings after all). However, Scott Gibson, President of Gibson International, insists that its important to maintain perspective.

When people say to me I lost $9,000 in the stock market today, I can’t help but ask, “Did you sell?” because if you didn’t actually sell then you haven’t lost anything yet. It’s important to stay the course and know that we will get out of this. It’s short term thinking that’s really preventing the solid recovery that we need.

Scott continued to discuss a need for perspective particularly when it comes to a discussion of the various markets. While it’s important to pay attention to other markets such as those in Europe, it’s important to note their size and ultimate weight in the global economy. California alone is one of the largest economies in the world so it’s important to not lose sight of the effects of local economy on everyone’s day to day versus how instability in Italy is going to affect the market here. Hard assets continue to get a boost from uncertainty, seen most dramatically in gold. As Scott said lightheartedly, “Hopefully soon, real estate will be seen that way too.” He is still betting that the market will see a solid year end finish compared to previous years.

Rumor Mill: Fannie Mae and Freddie Mac Changes in the Works

It is rumored that Fannie Mae and Freddie Mac may form something similar to the Resolution Trust Corporation formed at the end of the 80s as a result the savings and loans collapse earlier in the decade. This organization would be a way for the double FMs to sell homes to private investors to get them off their books and into the markets to improve their balance sheets. A few individuals in the know have stated that the double FMs have already stopped releasing properties as they have been for the last several months which makes this rumor a more than likely possibility.

First Time Buyer Market is Hotttttttt

Agents expressed a common sentiment at today’s meeting that the first time buyers market is definitely hot, hot, hot. The under $600k homes and condos were busiest this past weekend, with many young couples showing up extremely intent on buying. Carla Winnie, Associate Manager at Gibson International, held open her listing at 1925 South Beverly Glen in Westwood (LP: $599,000, on the market since 8/12) and said not only that it was “packed” but that she has one offer and is expecting a second one soon. Top reason for this caliente group of possible clientele? Savvy parents are letting their kids in on the secret us agents already know: record low interest rates+low prices+ low inventory= a fantastic time to buy. This window is closing in the Los Angeles market and it’s closing soon. Jason Squire, an extremely active agent in the valley had this anecdote to share.

I’ve been working with a client from New York for almost two years. He is an incredibly intelligent guy who has been keeping a solid eye on the economy and he has now said to me, “Jason, it’s time.  I want to buy something for my daughter ASAP.” He knows that we are coming up on year 5 of this cycle and that if we haven’t hit the bottom of the bell curve, we are going to be hitting it soon.

Last But Not Least: Hot New Properties From Gibson International

OPEN TOMORROW 8/22 FROM 11am -2pm

Come visit us again next Monday for more info on what people are talking about in this crazy business!

For more info you can always contact me directly at 310.622.7436.

To connect with agents in this article please reach out to them on their direct lines:

Scott Gibson: 310.622.7401
Carla Winnie: 310.622.7418
Jason Squire: 310.622.7482

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Home sales surged 17 percent in the West last month, as buyers scrambled to take advantage of low mortgage rates and qualify for tax credits that expire at the end of this month.

The median price in the 13-state Western region was $209,400, down almost 8 percent from a year ago, the National Association of Realtors said Thursday.

Nationwide, by contrast, sales of previously occupied homes rose almost 20 percent from March of last year, without adjusting for seasonal factors. The median sales price was flat at $170,700,

Shoppers who have been on the hunt for some time can hear the clock ticking and are trying to make offers before the tax credits run out. Even some people who weren’t planning to buy are jumping in, said Kathi McLeod, sales manager for Windermere Real Estate in Boise, Idaho.

First-time buyers can get a federal tax break of up to $8,000, while current homeowners who relocate to a new home get up to $6,500.

”Last year, a lot of buyers were afraid to follow through with a purchase because of the economy and the extent that lending had changed,” she said. ”What we’re seeing now is confidence, as well as acceptance of what types of loan programs are available.”

Sales across most major Western metros improved in March, according to The Associated Press-Re/Max Monthly Housing Report, which tallies all home sales in the metropolitan statistical areas. The report, also released Thursday, counts sales filed by all real estate agents, regardless of company affiliation.

All but one of the 13 Western cities tracked in the report saw annual sales increases last month. Boise and Seattle both posted gains of more than 50 percent, according to the report. Los Angeles was the only major city that saw a decline in sales, off 7 percent.

San Francisco saw the sharpest gain in median price, up nearly 38 percent to $489,000. The city also had the lowest average number of days on the market, which dropped by about a quarter from last year to 49 days.

Sales in San Francisco climbed nearly 9 percent from a year ago.

”Buyer confidence has increased dramatically from last year,” said Sue Schultes, an agent with Paragon Real Estate Group in San Francisco. ”When things are uncertain, people have a difficult time making a decision. We’re now noticing many houses selling over list prices with multiple offers and a lot more movement in the luxury market.”

In Los Angeles, Julie Kryukova, an agent with 360 Realty, said she expects there will be a jump in sales this month too as buyers grab up foreclosures and other financially distressed properties.

”People are ready to make that last-minute dash and take advantage of these deals,” Kryukova said.

While Los Angeles saw an average decline in sales, swanky pockets of the city including West Hollywood, Santa Monica and Marina del Rey are seeing sales up as much as 300 percent from last year, she said.

Though sales in Boise were strong, the city had the biggest price decline among the Western cities in the AP-Re/Max report. With a drop of 14 percent to $149,900, prices are now back to 2003-levels.

”Now we see affordability back to what it was. Inventory has grown, prices are dropping and investors are back in the market with all of these movers and first-time buyers,” said Van States, an agent with Keller Williams Realty in Boise. ”It’s shaping up to be a great selling season.”

WASHINGTON (MarketWatch) — Home prices in 20 major U.S. cities fell a not-seasonally adjusted 0.4% in January compared with December, according to the Case-Shiller home-price index released Tuesday by Standard & Poor’s.

Prices rose in only in Los Angeles in January. Only four cities had experienced rising prices in December.

The rebound in housing prices seen last fall is fading, said David Blitzer, chairman of the S&P index committee. “We can’t say we’re out of the woods yet,” Blitzer said.

On a seasonally adjusted basis, prices rose 0.3% in January.

Prices were down 0.7% in the past year. This is the closest the index has been to a positive print since January 2007.

Compared with a year ago, prices were lower in 11 of the 20 cities, led by a 17.4% drop in Las Vegas.

In Charlotte, Las Vegas, Seattle and Tampa, prices hit new lows following the financial crisis.

For the 20 metropolitan areas in which repeat sales of homes are tracked in the Case-Shiller index, prices were down 32.6% from the peak in 2006. Prices are now back to levels seen in the summer of 2003.

Falling home prices have eroded Americans’ wealth. In response, households have increased their savings and cut back on spending.

View the original article on Marketwatch.com

Total Looking for Backup: 362
Average Days on Market: 85
Looking for Backup Property Type Breakdown: Condos (186)/ Single Family (176)

ACTIVE

New Listings 2/15-2/21: 157
New Listing Property Type Breakdown: Condos (67) /Single Family (90)
Single Family High Price/Low Price: $14,995,000 / $345,000
Condo High Price/Low Price: $6,500,000 / $219,000

Information based on the following areas:
(1) Beverly Hills — (2) Beverly Hills Post Office — (4) Bel Air – Holmby Hills — (5) Westwood – Century City — (6) Brentwood — (7) West L.A. — (8) Cheviot Hills – Rancho Park — (9) Beverlywood Vicinity — (11) Venice — (12) Marina Del Rey — (13) Palms – Mar Vista — (14) Santa Monica — (15) Pacific Palisades — (28) Culver City — (29) Westchester — (31) Playa Del Rey

Information provided by CLAWmls and deemed reliable but not guaranteed.

Information based on the following areas:
(1) Beverly Hills — (2) Beverly Hills Post Office — (4) Bel Air – Holmby Hills — (5) Westwood – Century City — (6) Brentwood — (7) West L.A. — (8) Cheviot Hills – Rancho Park — (9) Beverlywood Vicinity — (11) Venice — (12) Marina Del Rey — (13) Palms – Mar Vista — (14) Santa Monica — (15) Pacific Palisades — (28) Culver City — (29) Westchester — (31) Playa Del Rey

Information provided by CLAWmls and deemed reliable but not guaranteed.

Gibson is one of the few industry experts willing to go out on a limb about the real state of the real estate market, emphasizing that we are NOT in danger of falling into a depression “in Los Angeles or anywhere else”. This assertion is backed up by solid numbers that illustrate the vast differences between the depression (when “50% of the homes in the U.S. went into foreclosure and 25% of the nation was unemployed”) and now, with a 2.5% national foreclosure rate and unemployment hovering around 7%.

Numbers released in the last few days show sales of existing homes rising by the largest amount in more than five years in September, and sales of new homes spiking. Are we beginning to see a backlash against all of the fear mongering and the beginnings of a turnaround? “The panic that is being created in the media creates missed opportunities for buyers of all types of properties, regardless of the area. Have we been insulated here on the Westside from the high foreclosure rates that have plagued many other areas—yes. But the Westside is not immune from fear,” said Gibson. “Thankfully, with the home sales surprisingly up last month, and especially Southern California sales, we are starting to see people out there who are looking at real estate in a more substantive fashion, at least on a long term basis. It’s not just an investment, it’s a basic human need.”