While there are numerous shortpay transactions taking place on the Westside of Los Angeles the below report from MSN supports the areas with the most foreclosures.

Foreclosure rates: 20 cities with highest filings and state-by-state rankings

The highest foreclosure rates are primarily in cities where the proceedings don’t move through the courts.

By Melinda Fulmer of MSN Real Estate

Community Events for The South Bay

Chamber of Commerce -

Manhattan Beach – www.manhattanchamber.net

Dec. 11   Used Book Sale ~

                 Manhattan Beach Friends of the Library

                 10-3pm, 1320 Highland Ave.

Every Tuesday  Manhattan Beach Farmers Market

                  11-4pm, 13th Street and Morningside

Hermosa Beach – www.hbchamber.net

Every Friday    Hermosa Beach Farmers Market ~

                              12-4pm, Valley Drive & 11th Street    

                        rain or shine every Friday except December 24th and 31st, 2010

Holiday Events:

Dec. 11    Christmas Boat Parade Redondo Beach Marina 5:00-7:00pm

                    Snow Fest and Hermosa Beach Holiday Tree Lighting  3:00-8:00pm, Pier Plaza

Dec. 12   Fireworks Festival ~

                   4-8 pm, Manhattan Beach Pier

Volunteering: 

Friends of the Manhattan Beach Library seeking new volunteer members ~

For more information, Call (310) 376-2649

Botanical Garden needs volunteers ~

Each Friday    Volunteers are needed to help from 9:30-11:30 am

Located in Polliwog Park on Peck Ave., N. of M.B. Blvd, Call (310) 546-1354

Brett Arends explains why owning a home is a good thing.

• By BRETT ARENDS

Enough with the doom and gloom about homeownership.

Sure, maybe there’s more pain to come in the housing market. But when Time magazine starts running covers that declare “Owning a home may no longer make economic sense,” it’s time to say: Enough is enough. This is what “capitulation” looks like. Everyone has given up.

The Sept. 6 cover of Time magazine: This is what capitulation looks like.

After all, at the peak of the bubble five years ago, Time had a different take. “Home Sweet Home,” declared its cover then, as it celebrated the boom and asked: “Will your house make you rich?”

But it’s not enough just to be contrarian. So here are 10 reasons why it’s good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer’s market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We’re four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor’s Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it’s mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You’ll never catch the bottom. It doesn’t really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

  

Brett Arends discusses why he thinks now is a particularly good time to buy a home.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What’s not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won’t see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You’ll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you’ll get a tax break on capital gains–if any–when you sell. Sure, you’ll need to do your math. You’ll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

The June 13, 2005 cover of Time.

4. It’ll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You’ll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. “You can tell the ones that have been bought,” said my local guide. “They’ve painted the front door. It’s the first thing people do when they buy.” It was a small sign that said something big.

5. You’ll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you’re better off buying.

6. It offers some inflation protection. No, it’s not perfect. But studies by Professor Karl “Chip” Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That’s valuable inflation insurance, especially if you’re young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

View Full Image

Associated Press

A house for sale in Shelby, Ohio.

 

7. It’s risk capital. No, your home isn’t the stock market and you shouldn’t view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It’s forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won’t. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn’t a cost. You’re just paying yourself by building equity. As a forced monthly saving, it’s a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That’s below last year’s peak, but well above typical levels, and enough for about a year’s worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slumpin western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the “glut” simply won’t matter: It’s concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won’t have any long-term impact on housing supply in your town.

Last week, we effectuated a reduction that is $4,505,000 lower than the original list price.  The current price is the LOWEST price per square foot for land on the market today.  In doing a simple and quick analysis, we were able to determine that 2408 The Strand in Hermosa Beach is now by far the most aggressively priced home. If you take all of the current listings on the Strand, the numbers are pretty compelling.   See below:

ANALYSIS:

 “Competition”:        sq. footage:         $/sq.ft           Projected Value of 2408 The Strand

3500 The Strand           3670              $2,452/ft                     $18,713,995

3124 The Strand            2731              $2,196/ft                     $16,764,689

1534 The Strand           2396              $2,086/ft                     $15,926,540

1540 The Strand           4199              $1,846/ft                     $14,086,210

2666 The Strand           4914              $1,679/ft                     $12,813,186

2408 The Strand           7632!!            $1571/ft                     $11,995,000 *actual price!

If you haven’t already seen 2408 The Strand–YOU SHOULD.  It is “the Quintessential Beach House.” Originally built in the early 1900’s by the Doheny family, this 5172 square foot home has incredible appeal and charm. The ocean views are stunning from every room, while preserving the privacy inside. The main house has five large bedrooms, three and one half bathrooms and two beach showers. There is 1000 square feet of living space including four additional bedrooms and one bathroom over the large three car garage. The main value of this property is however in the enormous piece of land. The lot is more than twice the size of an average Strand lot, spanning twice the width and one and a half times the depth. The size of the lot is 7632 square feet including two separate buildable lots of approximately 30 x 129 feet, making it one of the largest single lots on the Hermosa Strand. It can and will also be sold (if buyer(s) desire) as two separate lots to build custom or for speculation.  Please contact Lauren Forbes for details or to schedule a private showing at 310-901-8512 or lauren@laurenforbes.com

LOS ANGELES, CA – Gibson International http://www.gibsonintl.com/, a prominent real estate company serving the Westside and beach communities of Greater Los Angeles, has been selected for membership in Chicago-based Leading Real Estate Companies of the World® (LeadingRE), Scott L. Gibson, the company’s president and founder, announced today.

Gibson International joins Leading Real Estate Companies of the World®, a global network comprising 600 of the best-known local and regional real estate firms, with 5,000 offices and 150,000 sales associates in the U.S. and more than 30 other countries.  Collectively, these firms sell almost 1 million homes annually in the U.S. valued at nearly $250 billion, which is more than that of any national brand or franchise.

Leading Real Estate Companies of the World® is the country’s largest network of residential real estate firms.  Its network affiliates are widely recognized as the premier providers of quality residential real estate and relocation services.  Leading Real Estate Companies of the World® also excels in the upper-end market.

As an affiliate of Leading Real Estate Companies of the World®, Gibson International can assist individuals purchasing or selling property in virtually any community in the U.S. or abroad with services including real estate assistance, comprehensive destination orientation programs, household goods move management and more.  The membership also enhances Gibson International’s ability to assist with corporate relocation accounts through RELO Direct®, LeadingRE’s third party relocation company.

Gibson notes that selection as an affiliate of the Leading Real Estate Companies of the World® network represents another step in the development of the firm and its ability to meet the high-end real estate needs of its Los Angeles clientele.

“I credit our success and business growth to the progressive, entrepreneurial structure of our brokerage and to an outstanding team of results-oriented agents,” Gibson said.  “This affiliation brings added value to the personal service-based experience our agents can offer.”

Gibson continued, “Our Westside agents and their clients have reacted very favorably to our business model, which allows agents to use advanced technology and powerful networks to their advantage.  The agents joining us were specifically chosen for their sales success and professionalism with the highest integrity.  This affiliation strengthens the extensive support system we offer to our team.”

Gibson International, with 65 highly qualified sales associates, was selected for Leading Real Estate Companies of the World® membership only after meeting the network’s exacting standards.

“We are delighted to welcome Gibson International to Leading Real Estate Companies of the World®,” commented Pam O’Connor, President and CEO of LeadingRE.  “Their selection was based on the company’s outstanding reputation, as well as its demonstrated ability to deliver the same high quality service and reliability as our other affiliates.  This level of service is the foundation of our network and is the basis for our longevity and success as one of the industry’s leading providers of real estate and relocation services.”

About Gibson International:  Founded in 2008, Gibson International is a high-quality real estate brokerage based in Brentwood, California.  The fast-growing firm, headed by leading real estate veteran Scott Gibson, presents a unique, full-service business model, which incorporates the latest in technological advances with enhancements to help its agents achieve success and “work-life balance.”  Its team of agents includes some of the most respected names in Westside real estate, and each agent averages more than 10 years of real estate sales experience.  Gibson International can be reached by telephone at 310-820-0195.  More information about Gibson International is available online at http://www.gibsonintl.com.

About Leading Real Estate Companies of the World®:  Leading Real Estate Companies of the World® (www.LeadingRE.com) is a global real estate network comprising over 600 of the best-known local and regional real estate firms.  With nearly 5,000 offices and 150,000 sales associates in the United States and more than 30 countries abroad, LeadingRE affiliates sell $250 billion in home sales, representing nearly one million transactions annually.  The network has among its members the #1 market leader in 41 of the top 90 markets in sales volume, transaction sides or both – nearly double that of the closest competitor.

Editor’s Note: Scott Gibson is available for interviews to discuss the company’s performance as well as the continued 2010 outlook for residential real estate in Southern California.

Stock Market Close for the Week

WEEK IN ADVANCE

Sharon Sharp-Kelley, President

Escrow L.A., Inc.

 11755 Wilshire Boulevard, Suite 2340

Los Angeles, California 90025

(310) 231-9100, fax: (310) 231-9200

 sharon@escrowla.com

~ Experience, Integrity, Professional Service

~ Independent and unaffiliated, serving you since 1993

June 12, 2010|By Lauren Beale, Los Angeles Times

Bob Chamberlin, Los Angeles Times

In the Middle Ages, moats were the thing. More recently, the rich have taken refuge behind tall hedges, view-obscuring walls and guarded gates.

But today’s super-wealthy, seeking even greater privacy, are increasingly buying adjacent properties as a buffer zone around their mansions. And that’s made the compound the hottest commodity on L.A.’s high-end market, real estate brokers say.

On the Westside, the growing list of compound owners includes movie industry titan Terry Semel, financier and producer Tom Gores and corporate housing kingpin Howard Ruby, founder of Oakwood Worldwide.

Divorcing Dodgers owners Frank and Jamie McCourt maintain two compounds, one in Holmby Hills and another in Malibu.

“If you don’t have a neighbor anymore, you create more privacy,” said Kurt Rappaport, co-founder of Westside Estate Agency, with offices in Beverly Hills and Malibu.

Not that the “buffer” homes are vacant. Some house family, friends, guests or staff. But these aren’t mother-in-law cottages or little guesthouses like the one Kato Kaelin holed up in at O.J. Simpson’s old place in Brentwood: Think multimillion-dollar mansions — next door, behind or even a few doors down.

The adjoining properties may be used during major fundraisers or large-scale entertaining, Rappaport said, to create more parking or as a place to stage the catering during lavish events. Some buyers have been known to tear down well-known homes for more elbow room.

Property records don’t fully capture the trend. Owners typically want the flexibility of selling the parcels individually, and so they usually don’t apply for a lot merger to create a formal compound. Still, veteran real estate agents say high-end buyers are increasingly looking to snap up adjoining properties.

“We’ve never seen this much activity going on,” said Drew Mandile, who works as a team with Brooke Knapp at Sotheby’s International Realty, specializing in Bel-Air.

Mandile and other agents said there were perhaps two or three compounds in Bel-Air 10 years ago. Today, there are at least nine.

“A decade ago, the idea of combining properties was extremely rare,” Rappaport said. “Now in the ultra high end it’s the norm to strategize about amassing multiple properties.”

Notable designs and functional living spaces

February 5th, 2010

We don’t normally blog about the designs of board games, but since Monopoly is the most famous board game of all time and has somewhat its root in different real estate “properties” we thought we would use it as a perfect way to start the weekend.

This new version of Monopoly is a special 75th anniversary version of the game and includes a number of interesting changes. The board is circular, doesn’t have paper money but debit cards instead, and when you pass go you don’t get a measly $200, but $2,000,000 to account for all the inflation and the change in real estate prices since 1935 when Monopoly was first released.

What do you think of this new design? Do you like the new look or does it disappoint? Post your comments below, @ reply your thoughts on our twitter or post them on our Facebook Fan Page!

http://www.styleture.com/2010/02/05/new-monopoly-game-design-does-it-deliver-or-dissapoint/

 

New Monopoly Game 

 

New Monopoly Game 

It’s a bit like guessing how many pennies are in a gallon jug at the state fair, but housing analysts keep trying to count how many foreclosed homes banks and mortgage investors own.

Why should we care? Unlike at the state fair, there is no prize for guessing right. Still, if we can track the number of these REO (“real estate owned”) homes, we can get some sense of how banks and others are doing in their efforts to dispose of the properties and how much longer they will be weighing on the housing market.

The good news is that two of the leading contenders in this guesstimating game–Tom Lawler, an independent housing economist and gentleman farmer in Leesburg, Va., and Robert Tayon, an analyst at Barclays Capital in New York–have been comparing their methods recently and learning from each other. Both are in the same ballpark and both say the REO count is on the rise.

Mr. Lawler estimates there were 574,000 one- to four-family REO homes at the end of the first quarter, up from 518,000 at the end of 2009 but well below a peak of 668,000 in the third quarter of 2008. More modest (honest?) than most economists, Mr. Lawler describes his estimates as “crude” and “a work in progress.” He figures his tally is too low–he can’t find good data on all of the thousands of REO owners– but still “indicative” of the trend.

Mr. Tayon of Barclays estimates that REOs totaled 522,000 in March, up from 479,000 at the end of 2009 but below the peak of 688,000 in September 2008.

After soaring in 2008, the REO total shrank for most of 2009 as foreclosure-prevention efforts slowed the flow of defaulted loans toward resolution and investors rushed to buy what they saw as bargains in hard-hit areas such as Phoenix and Las Vegas. Now, as banks and other loan servicers work their way through the backlog of loan-modification applicants and reject many of them, the REO count is rising again. Mr. Tayon expects it to peak at 538,000 in August 2011 before starting to decline gradually.

Fannie Mae and Freddie Mac, two of the biggest holders of REO, both expect their REO inventories to increase in the next few quarters, Mr. Lawler says.

The expected rise in REO supply will “challenge” housing markets in areas with high concentrations of foreclosures, Mr. Lawler adds. But he doesn’t think the effect on prices will be as severe as it was in late 2008 and early 2009, when loan servicers dumped huge amounts of property on the market.

There are still plenty of struggling borrowers at risk of losing their homes. The Mortgage Bankers Association, a trade group, last week reported that 14% of mortgage loans on one-to-four-unit homes were 30 days or more delinquent or in the foreclosure process as of March 31. That represents about 7.3 million households. The rate was 12% a year earlier. At the same time, fewer people have fallen behind in recent months as the economy has improved.

Those who want to guess how many REOs will be in the jug two years from now will have to take a view on whether the economy is going to produce enough jobs to create demand for all those houses.