Mortgage delinquencies have dropped dramatically

Pastdue

During the first quarter of 2013, California saw a huge improvement in mortgage delinquencies.

The state ranked second in terms of the steepest decline after the rate fell 36.6% to 4.22%. Nation-wide, every state saw a decrease in mortgage delinquencies. At 4.56%, that rate is down 21% from a year ago, and 12% from Q4 of 2012.

All housing data points to improvements in mortgage delinquencies, and reports suggest it will continue to progress this year to about 4.5%. At the same time, borrowers are taking advantage of record-low mortgage rates, currently posted at 3.52% (30 year fixed).

Echo Park home prices up 11% year-over-year

Echo-Park

We gave you the run-down for real estate numbers in Northeast Los Angeles, but here's a close-up of Echo Park real estate numbers for March:

Sales of Single Family Homes:

• Homes sold: 12
• Median Price: $576,000
• Price percent change from a year ago: +11.0%
• Median Home price per square foot: $534

Condo Sales:

• Condos sold: 1
• Median Price: $420,000
• Price percent change from a year ago: +19.1%

Source: DataQuick

Home prices are rising in Echo Park - now is the time to buy before they go up even more!

Foreclosure activity in California dropped dramatically

home-judicial

Big news for California real estate numbers: Foreclosure activity in the state has hit an all-time low since the last housing boom.

During the first quarter of this year, only 18,567 mortgage default notices were filed – that’s 51.4% down from Q4 of 2012, and 67% down from the same time last year. The drop is being attributed to recent regulations placed on foreclosure activity – particular the Homeowner Bill of Rights that took effect on January 1.

DataQuick expects that foreclosure activity will pick up slightly once lenders adjust to these new policies.

Interested in Echo Park real estate or purchasing a home in other Northeast Los Angeles neighborhoods? Contact me today!!

The housing market is on fire!

Housing Prices in Los Angeles

The housing market is burning a trail through its way back to 2007 prices. Is it a bubble?

This is a question no one can answer with certainty. What’s certain is that there are the few elements driving the increases, including:

• Interest rates
• Inventory
• Competition

Low interest rates have been in place for some time now, and they have brought some balance to an unstable market. When these rates are coupled with constrained inventory, home prices are increasing by leaps and bounds. Inventory levels are a gauge for future values of properties, and the levels have been low since the middle of last year and continuing to shrink.

For those who thought they would never hear it again… what a great time to be a seller.

The market has been brutal to buyers. Most properties are receiving multiple offers and under value properties are receiving 30 to 40 offers. Only time will tell where the dust will settle.

What’s selling right now?

Just a year ago, a large portion of sales were distressed. Many bank owned properties and a good volume of short sales were typical inventory with an “equity sale” every now and then. A sale where someone actually had equity was given its own name - it was not a common situation. Today, there are still short sales and the occasional bank-owned sale, but equity sales have become normal again. There are properties listed as short sales that get offers of $155,000 over asking price, and sell as an equity sale instead, which recently happened with an offer I wrote.

Short sales and bank-owned sales will be around for many more years but as long as they are not the dominate percentage of the sales, they will have less of an impact on value.

Contact me to get a find out what will be on the market soon!