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hello this is Ron Henderson president and broker multi-religious services
it is january 27 2014 in this is a real estate market update for the San
Fernando Valley Los Angeles California 2012 and 2013
were very strong years for local market with major price appreciation hedge
funds in foreign investors were coming in buying bulk REO's
in buying multiple units in single-family dwellings for all-cash
driving pricing over the past few months though
it is definitely slowed the quantity a close ill started 2013 strong
tracking the street the 2012 but eased up in May when the interest rates are
going up
if we look at the last few months the newly-opened s rose
you can see where the quantity a sales are well behind the last couple years
part of that is because low inventory levels
we have more inventory than we did beginning in the year but it's still
light compared with historic levels
historically we average around five or six months with them and Tori
in December we only had two and a half but I guarantee you that will be going
up the spring
the pricing is appreciated over 20 percent a year
over 2012 and 2013 but starting last August
the appreciation is stalled and actually dropped the little
now what are we gonna watch for
in 2014 how much impact will institutional on foreign investors have
gone forward
they were market drivers over the past few years
but now that the pricing has been driven higher they're not going to continue to
be aggressive buyers
the Federal Reserve started easing up on the quantitative easing
the been forcing the interest rates artificially low levels
but the rates have been going up since last May several dodd-frank regulations
applicable to mortgages became affected
as a january 10th just a couple weeks ago this is already have an affect on
buyers qualify for loans
enough so the consumer groups were already complaining at a congressional
hearing last Wednesday
the combination of higher prices higher interest rates
in Taylor loan underwriting guidelines is gonna supply headwinds to the market
going forward
I'm not saying that the market's going to collapse
mainly because inventory levels are still tight and lot owners have
accumulated in equity position they didn't have previously
in fewer underwater on their loans qualifying for refinance or purchase
money loan
is going to be more difficult going into the future if a borrower doesn't fit
into
that little box a little quote buying mortgage box
that that bill I am approvals over 75 lenders
and there are nine QM loan programs out there
if you have any specific questions always feel free in contacting me
through my website
mres dot com or the phone number or
email address shown below till next time take care