New home sales drop 9.2% in January

New home sales dropped 9.2% in January according to a Commerce Department report released this morning - well below analyst expectations.

Still, the biggest drop in sales was in the Midwest, followed by the Northeast.

Southern California home sales have dropped as well; however, not as nearly as much as in some areas. In fact, area real estate agents claim the supply of homes in Los Angeles and Orange counties is dwindling. Since there are still a large number of interested buyers, some think a another run-up in prices is set to take place this spring.

Southern California home supply dwindling

Area real estate analysts in Los Angeles and Orange Counties think the bidding wars for homes might be heading up again according to a LATimes article.

"After a bloated summer and fall, the inventory of homes for sale has slimmed down to the point that multiple offers are commonplace again, real estate experts say. And the low supply could trigger a spring season of stepped-up price increases after six months of relative flatness."

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Housing bubble talk heats up to end the week

He said, she said. That's the story of the real estate bubble, nothing but contradictory data.

CNBC just finished such a segment on the housing bubble. Some say there is no bubble, some say there are tiny bubbles in the national market, others say to expect depreciation of about 20 - 30 percent in areas like California.

It all comes down to a fundamental shift - whether you believe one has occurred, or not.

If one has occurred, then it is possible that real estate prices, and housing prices, could continue their upward run for some time, especially if the economy grows more than expected. This is the position of most people within the real estate and mortgage industries.

On the other hand, academics studying historic data, compare the current U.S. real estate market to the stock market bubble and the current Japanese real estate market. Via that scenario, housing will take a real tumble.

In any event, risk does seem to be rising.

Existing home sales down for January

Numbers just came out on CNBC. Existing home sales for January were down, just slightly below analyst expectations. More on this later.....

Do you trust your real estate agent?

As far as most real estate agents are concerned - the quicker the sale, the better - unless, of course, it is the agent's home.

A University of Chicago economics study surmised that since real estate agents acquire their commissions at close, most real estate professionals pressure clients into selling too cheaply and quickly.

Waiting for a better offer just isn't in the interest of most agents, yet waiting a few extra days can often net a better offer by thousands of dollars - a pittance in extra commission to your agent, but a notable difference for the seller.

Make sure to get an independent appraisal before selling your home to ensure that you, and not just your agent, get a good deal.

Los Angeles County real estate up, sales down

The media home price for Los Angeles County rose to $414,000, but sales dropped almost 5 percent. More from the LATimes.

Foreclosures down in California

Foreclosure activity in California dropped to its lowest level in more than 13 years in 2004, thanks to robust home sales and rising prices, DataQuick Information Services reported. (More from LATimes)

Southern California real state cooling, a little

The median Southern California home price — the point at which half of all properties sold for more, half for less — appears to be flattening out according to the LATimes.

Nonetheless, very expensive Ventura County real estate is set to sizzle again, according to other reports. "It's going to be a pretty good year for people in Ventura County," said economist Bill Watkins, executive director of the forecast project. "The economy is on an upswing, no doubt."

Traffic; however, was cited as a serious problem for Ventura - not only current traffic, but the anticipated growth in traffic. (more on this story)

Though prices remain high, houses in Southern California aren't selling quite as fast as they used to. "Sales are strong, but not at a peak, and price increases are slowing down, especially in the markets that took off first back in 1998 and 1999," said Marshall Prentice, DataQuick president in a release yesterday. (More on this from CNNMoney)

Orange County real estate appreciation slows

Orange County real estate is still hot, but last month appreciation fell below 20% for the first time in almost two years, according to DataQuick Information Services.

The median price for houses and condominiums sold last month rose 18.7%, to $534,000, from the year before. That was down 3% from December's record median of $551,000.

That trend was also noticed in Los Angeles real estate earlier this week. However, Los Angeles County real estate is still significantly more affordable than Orange County where only about 13% of residents can afford to purchase a home.

Los Angeles County Home Prices cool, at least a little

According to a LATimes.com article, "For the first time in 19 months, the year-over-year rate of housing appreciation in Los Angeles County has dropped below 20%, statistics released Wednesday showed. "

The January median home price rose 17% to $414,000, the slimmest increase since June 2003.

This doesn't mean housing prices are dropping any time soon according to real estate experts, instead, many analysts are predicting that home prices will reduce to about 10% gains by the end of the year.

Click here to be contacted by a Los Angeles real estate agent.

Experts debate real estate bubble, or lack of one

Are housing prices going to drop in Los Angeles, Southern California, or anywhere in the rest of the nation? Well, that really depends on whom you ask.

Some experts think there is a bubble nationwide, some just in certain markets, particularly coastal markets, and still others think this new market is the new reality of American real estate according to an article on CNNMoney, Will housing prices pop?

There simply is no consensus. About the only thing most analysts can agree upon is the idea that the market is slowing and that double digit appreciation gains are going to be less common.

Beyond that it's anybody's guess and is really a question to be asked almost on a neighborhood-by-neighborhood basis - increasing the importance of a good real estate agent.

Click here to have a real estate agent, specializing in your neighborhood, contact you.

Inland Empire real estate cooling

According to a LATimes article, In Riverside County, Housing Market Shows Definite Signs of Slowing, "Southern California's hottest housing market is experiencing a bit of a frost".

Riverside and San Bernardino Counties, with their growing populations and relatively low land costs, have been one of the steadiest and fastest-growing markets in California.

In the last three years, the median price for new and resold homes in Riverside County has soared 55%, but that growth in home price has slowed considerable in recent months, even reversing in some areas.

For more on this Southern California real estate article, click here.

Home Buying Season Begins

According to a CNNMoney Article, Kick off! Game plan for home buyers, the home buying season doesn't really kick off until after the SuperBowl.

So if you are ready to contact your real estate agent to buy a new house, there are a few things to do first. Most important, get pre-approved for your mortgage. If there is any competition on the home you would like to purchase, those bids without pre-approved loans will get tossed out first.

Sometimes the largest downpayment can be factor, even though it shouldn't, but real estate agents have noticed that sellers tend to gravitate towards bids with the highest downpayments.

Click here to be contacted by a Los Angeles or Southern California real estate agent.

Selling your home, but not sure about your real estate taxes?

Selling your home, but not sure how such a move is going to affect your taxes?

Married couples, selling their primary residence (the house you have owned and lived in for two of the last five years), can profit up to $500,000 without having to pay income tax; whereas singles can profit $250,000.

Gains beyond the above would be taxable at the rate for long-term capital gains, roughly 5 - 15 percent.

If your profits are going to be more than the limits noted above, there are additional criteria that can be considered to reduce your tax liability, for example, home improvement expenses can be taken into consideration.

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California bubble got ya thinking take my home equity and run?

If you watch the financial news, you know that bubble talk is a frequent topic when the conversation is about Los Angeles and Southern California real estate.

While most market analysts don't see a bubble burst anytime soon, they do see the market slowing in many areas of Southern California.

Of course, some areas of Los Angeles, the Inland Empire, San Bernardino County and more, continue to rise in value.

The trend for many on the coast is to move inland, and not just inland California, but Arizona and Nevada as well.

Because of the equity gained on the Southern California coast, many are using those gains to move up in inland, cheaper areas.

According to a recent BusinessWeek article, Southern Californians are migrating to Las Vegas and Phoenix in mass numbers, causing month-long wait times for moving vans.

If you think it's time to sell your house, let us help you find a real estate agent that specializes in your area of Los Angeles or Southern California.

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