Federal Reserve easing off on bond purchases

federal-reserve

As a sign of increased confidence in a stabilizing economy, the Federal Reserve is cutting back on its $85 billion per month bond-buying stimulus programs. This is the third round of easing off; the policy began in September 2012.

Beginning in January, the Federal Open Market Committee is tapering purchased of Treasury and mortgage-backed securities by $5 bill each, a 12.5% cut for the latter. Zero interest rates on Federal lending will remain unchanged.

It’s not a huge move – further cutbacks are expected in the future, it’s just unclear when that will happen as unemployment is still high and there is more recovery that needs to occur.

Los Angeles Sues Largest Banks For Discriminatory Lending

losangeles-sues-banks

Six years after the housing bubble, the residual effect of the crisis lingers.

The City of Los Angeles sued Citigroup, Wells Fargo, and Bank of America recently in U.S. Federal Court. City Attorney Mike Feuer alleges that banks "engaged in a continuous pattern and practice of mortgage discrimination in Los Angeles since at least 2004 by imposing different terms or conditions on a discriminatory and legally prohibited basis." One citation is a study which estimates the more than 200,000 foreclosures in Los Angeles during the foreclosure crisis resulted in $78 billion in decreased home values, $481 million in lost tax revenue, and $1.2 billion in additional services to maintain vacant and foreclosed properties.

The banks deny the allegations of discriminatory lending.

"These lawsuits send the firm message that we will use every tool at our disposal to fight for all Los Angeles taxpayers and neighborhoods," Feuer said.

Weekly market report: The holidays are here!

Fewer properties are going into escrow as we approach Christmas and the New Year. New listings dropped to 22 from the previous 46, with back on market, price reductions, and pending/back ups trailing slightly lower. Solds and available inventory remained steady at 39 solds and 242 available. December 16, 2013

• New listings: 22
• Back on Market: 7
• Price Reductions: 10
• Pending/ Back up: 31
• Sold: 39
• Total available inventory: 242

See the stats from previous December dates after the jump.

December 9, 2013

• New listings: 46
• Back on Market: 12
• Price Reductions: 12
• Pending/ Back up: 38
• Sold: 38
• Total available inventory: 244

Click on the map below to search active listings in Northeast Los Angeles:

NortheastLosAngeles

Looking to buy or sell? As a 30+ year resident of Echo Park, I know the area! Contact me today!

Areas in Northeast Los Angeles/the Urban Hillsides I serve include: Atwater Village, Echo Park, Eagle Rock, Glassell Park, Highland Park, Lincoln Heights, Los Feliz, Mt. Washington, Silver Lake, and Montecito Heights.

Homeowner alert: HELOC draw periods expiring

Do you own a HELOC that originated between 2004-2009? Be prepared for higher payments. Over 75% of HELOCs (Home Equity Line of Credit) originated between 2004 and 2009. According to Lender Processing Services, the vast majority of these will amortize over the next couple of years. The first warning shot will be for 2004 HELOC borrowers. A good number of 2004 borrowers have been paying interest-only for the last 10 years. Depending on the situation, some will have balloon payments due, or their payments will rise to get the loan paid off in 30 years. Some will be able to refinance, but it will be harder to qualify versus the boom time of 2004. Payments may double in some cases.

Don't be caught unaware. Check with your loan servicer on your specific situation and options well ahead of time.

Business as usual, showing a solid market in Northeast Los Angeles

New listings rose to 46 after a traditionally slower Thanksgiving holiday week. Back on markets were at 12, up 1 from the week before and staying in a tight range. Price reductions were at 12, showing a trend down and a solid market. Pendings/back ups remained at 38 with no significant change since end of October. Sold homes popped up to 38 with a steady inventory of 244 for the Northeast L.A. area. December 9, 2013

• New listings: 46
• Back on Market: 12
• Price Reductions: 12
• Pending/ Back up: 38
• Sold: 38
• Total available inventory: 244

See the stats from previous weeks after the jump.

November 28, 2013

• New listings: 14
• Back on Market: 11
• Price Reductions: 15
• Pending/ Back up: 38
• Sold: 26
• Total available inventory: 231

November 21, 2013

• New listings: 36
• Back on Market: 8
• Price Reductions: 17
• Pending/ Back up: 40
• Sold: 30
• Total available inventory: 262

November 14, 2013

• New listings: 41
• Back on Market: 15
• Price Reductions: 18
• Pending/ Back up: 45
• Sold: 29
• Total available inventory: 262

November 5, 2013

• New listings: 32
• Back on Market: 19
• Price Reductions: 20
• Pending/ Back up: 46
• Sold: 43
• Total available inventory: 268

October 29, 2013

• New listings: 43
• Back on Market: 18
• Price Reductions: 21
• Pending/ Back up: 55
• Sold: 44
• Total available inventory: 267

Click on the map below to search active listings in Northeast Los Angeles:

NortheastLosAngeles

Looking to buy or sell? As a 30+ year resident of Echo Park, I know the area! Contact me today!

Areas in Northeast Los Angeles/the Urban Hillsides I serve include: Atwater Village, Echo Park, Eagle Rock, Glassell Park, Highland Park, Lincoln Heights, Los Feliz, Mt. Washington, Silver Lake, and Montecito Heights.

Market outlook in the Urban Hillsides communities

New listings are down 50% from beginning of month, which is a typical seasonal adjustment. Properties going into escrow are consistent, while sold properties are down slightly. The monthly pattern shows a solid market as we move further into the holiday season. November 28, 2013

• New listings: 14
• Back on Market: 11
• Price Reductions: 15
• Pending/ Back up: 38
• Sold: 26
• Total available inventory: 231

November 21, 2013

• New listings: 36
• Back on Market: 8
• Price Reductions: 17
• Pending/ Back up: 40
• Sold: 30
• Total available inventory: 262

November 14, 2013

• New listings: 41
• Back on Market: 15
• Price Reductions: 18
• Pending/ Back up: 45
• Sold: 29
• Total available inventory: 262

November 5, 2013

• New listings: 32
• Back on Market: 19
• Price Reductions: 20
• Pending/ Back up: 46
• Sold: 43
• Total available inventory: 268

October 29, 2013

• New listings: 43
• Back on Market: 18
• Price Reductions: 21
• Pending/ Back up: 55
• Sold: 44
• Total available inventory: 267

Click on the map below to search active listings in Northeast Los Angeles:

NortheastLosAngeles

Looking to buy or sell? As a 30+ year resident of Echo Park, I know the area! Contact me today!

Areas in Northeast Los Angeles/the Urban Hillsides I serve include: Atwater Village, Echo Park, Eagle Rock, Glassell Park, Highland Park, Lincoln Heights, Los Feliz, Mt. Washington, Silver Lake, and Montecito Heights.

Market outlook in the Urban Hillsides communities

Fewer properties are selling as we move into the holiday season, but fewer are entering the market as well. Inventory is identical to last week's numbers, which are staying strong. November 21, 2013

• New listings: 36
• Back on Market: 8
• Price Reductions: 17
• Pending/ Back up: 40
• Sold: 30
• Total available inventory: 262

November 14, 2013

• New listings: 41
• Back on Market: 15
• Price Reductions: 18
• Pending/ Back up: 45
• Sold: 29
• Total available inventory: 262

November 5, 2013

• New listings: 32
• Back on Market: 19
• Price Reductions: 20
• Pending/ Back up: 46
• Sold: 43
• Total available inventory: 268

October 29, 2013

• New listings: 43
• Back on Market: 18
• Price Reductions: 21
• Pending/ Back up: 55
• Sold: 44
• Total available inventory: 267

Click on the map below to search active listings in Northeast Los Angeles:

NortheastLosAngeles

Looking to buy or sell? As a 30+ year resident of Echo Park, I know the area! Contact me today!

Areas in Northeast Los Angeles/the Urban Hillsides I serve include: Atwater Village, Echo Park, Eagle Rock, Glassell Park, Highland Park, Lincoln Heights, Los Feliz, Mt. Washington, Silver Lake, and Montecito Heights.