New Listings in NoHo! January 1st-16th

If you were wondering what's new on the market in NoHo this year, below are some of the newly listed properties that just hit.

This newly remodeled 2 bedroom, 1 bath home is located on Riverton between Burbank Blvd and Oxnard St. Everything about this home has been redone from top to bottom including the kitchen, bathrooms, and landscaping and is listed for $425,000!

This property is all about the investment potential and is zoned LAC2 which will allow commercial use/building. The property is located on Fulcher just north of Burbank Blvd. The lot size on this property is over 9,200 square feet and is listed for $575,000!

This beautiful 2 bedroom, 2.5 bath condo is located in a luxury complex on Satsuma just north of Magnolia Blvd in the heart of the Arts District! This unit is upgraded with a designer's touch with granite counters, over 1,200 square feet of living space, and listed for only $240,000!

These are not my listings and buyer is to verify all information. Information is deemed reliable but not guaranteed.

Fiscal Cliff Finally Avoided! What Was Reached And Who Does It Affect?

There has been a lot of media hype surrounding the "Fiscal Cliff" and the consequences to follow should Congress fail to reach an agreement. Much of the problem was related to the expiration of the 'Bush tax cuts.' Many Republicans wanted them to be extended, many Democrats wanted to let them expire.

President Obama has been campaigning for a tax increase on Americans who earn over $200K a year as a single taxpayer or $250K as a married couple. The Republicans argued that many of the taxpayers who fall into that bracket are small business owners and that the tax increase would limit their growth as a business and, in turn, slow job creation. But I'm not here to go over all the arguments leading up to the 'cliff.' I'm here to tell you they reached an agreement!

There were a few significant points reached in this bill. First, the Mortgage Forgiveness Debt Relief Act has been extended for another year. As a real estate agent, I can tell you this great! This allows the mortgage debt that was forgiven to the homeowner to be exempt from taxation. Many weren't aware that the amount of mortgage debt that was forgiven through a short sale, foreclosure, or loan modification could be treated as income and taxed. That's why it is always important that if you are a homeowner going through a foreclosure or short sale, to speak with a tax professional about the financial consequences involved on each side.

Capital gains rates increased on high income earners from 15% to 20%. High income earners has been redefined from $200K a year as a single taxpayer and $250K as a married couple to $400K and $450K. Capital gains rates on the sale of principle residences will not change, however, and will continue to exclude the first $250K for single taxpayers and $500K for married couples.

Many legislators who supported the bill still don't agree that this is the long term solution, but they do feel that it is the right compromise for now. I guess we'll just have to wait and see.

Average Home Prices Rise To The Same Level In 2003! What Does This Mean?

According to S&P/Case-Shiller, the average home price rose to the same level we saw in the summer of 2003, the time when the housing boom first began its climb to the 2006 peak.

Even though this doesn't mean we are about to embark in the same housing boom that we did during that period, it does give good implications that the market is legitimately turning around and the real estate market's uncertainty is now coming to an end. For most professionals in the business, we've seen this turn-around blossoming for quite some time due to the activity and demand in the market. The statistics should drive home the confidence needed for many buyers and sellers who have been on the fence about whether this is a good time to buy or sell.

This marks the 3rd straight month that we've seen the average home price increase in the 20 major city composite study and it would have been 4 months if not for a .06 decline in Detroit. Though this study is comprised of major city markets, professionals located outside of the metro markets have seen increased activity as well. Jamie Moore, president of the Rhode Island Association of REALTORS, said "We've been seeing a strengthening market for some time now, but August sales are evidence of a major turning point."

Great pricing along with historically low interest rates have been a catalyst to this rebound and with interest rates staying low through the next few years, we should expect this recovery to remain strong!

U.S. Housing Prices Are To Continue Stabilizing In 2013!

The home price index for June has shown a 0.9% increase nationally which was higher than expected. If you haven't been keeping track, this has been the 5th consecutive monthly gain.

This continual rise can be directly associated with the increase in demand and fewer distressed properties on the market. If you have been active in the market, then you have probably felt the pressure caused by competing buyers and the bidding wars that have stemmed from it. Though this may be frustrating to many buyers out there, it is a great indication that the market is not only stable, but getting stronger and stronger. A positive way to look at it is that at least you know your choice to pursue purchasing a home at this opportune time is supported by many like-minded consumers as well.

Another interesting stat is that 18 of 20 metropolitan areas saw home prices rise in the month of June, which is the most we've seen since 2006. Areas such as Phoenix, Miami, and Minneapolis have seen the home values rise on a year-over-year basis.

I know these are national statistics and some areas are doing better than others. I believe it's important to focus on the positive instead of allowing vehicles like the media to paint a negative picture in your head. In my area of Los Angeles, I've witnessed first hand the collapse of the market and have now witnessed the strength in it's rebound. And despite having the facts and statistics to prove it, I still run into people who refuse to believe it is making a turn for the better. When I ask them why they believe that and where they heard it, the most common answer is the nightly news. I personally believe this nation will get better one community at a time and we would be more proficient if we focused our efforts as individuals on our immediate surroundings instead of listening to someone who has 're-framed' the status of economy with ambiguous statements.

I hope everyone had a wonderful Labor Day weekend and if you ever have any questions regarding real estate in the San Fernando Valley or surrounding areas, feel free to contact me anytime.

June's Stats Are In! The Housing Market Is Getting Stronger!

The California Association of Realtors released June's statistics this past week and things are looking pretty good! As you have heard, the market has been gaining some traction recently and activity has been strong. Here are some of the statistics:

- Sales for the month of June rose 8.5% from June of 2011.

- The average sales price rose in June 1.3% from the month of May and is up 8.1% from the average sales price in June 2011. It is also up 30.7% from the cyclical bottom reached in February of 2009!

- Unsold inventory for single family detached homes in the month of June is at 3.5 months which is consistent with the level reported for May. It is down 5.1 months compared to June 2011. The normal inventory index should be at 7 months.

The Unsold Inventory Index is a way to measure the amount of inventory in the market by averaging the amount of time it has been taking for a listing to sell. You find how many days on the market the average home takes to sell and how many sell on average in a month. Then you find out how many homes are listed for sale and then you can calculate how many months of inventory we have.

We have been dealing with a lack of inventory for quite a while now. Its not like it was 2 years ago when a home would sit on the market for 6 months before the seller was forced to make a dramatic price reduction or pull their home off the market. With little inventory to choose from, buyers have found themselves constantly competing with other buyers for the same property. This, in effect, is one of the driving factors of home values increasing.

For sellers, this is an opportune time to put you home on the market if you are considering selling. Given, you will most likely not get the price for your home that you would've in 2006 (which is why our economy is in the state that it's in). The good news is that the price you will get for your home now will be the highest in the last 3 years. If your home is priced right and marketed correctly, not only will you get a great price, it will fly off the market before you can blink!

For buyers, I feel your pain if you have been dealing with the bidding wars. I have a colleague in my office who has written over 20 offers above asking price for his client, who is VERY well qualified, and they have been outbid mainly by cash investors. Hang in there even though it can be painful and emotional. Taking advantage of the interest rates along with the lower housing values while they are here will be something that you will 'pat yourself on the back' over for years down the road!