Justin Brennan San Diego Real Estate Blog: October 2012

Wednesday, October 17, 2012

A NEW HOUSING BOOM MAY BE COMING. GET READY TO RUMBLE

A new housing boom

By Chris Isidore @CNNMoneyOctober 12, 2012: 1:01 PM ET

NEW YORK (CNNMoney) -- The long-battered housing market is finally starting to get back on its feet. But some experts believe it could soon become another housing boom.

Signs of recovery have been evident in the recent pick ups in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.

But while many economists believe this emerging housing recovery will produce only slow and modest improvement in home prices, construction and jobs, others believe the rebound will be much stronger.

Barclays Capital put out a report recently forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015.

"In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing starts," said Stephen Kim, an analyst with Barclays, in a note to clients.

In addition to what Kim sees as a big rebound in building, he's bullish on home prices, expecting rises of 5% to 7.5% a year.

Construction is expected to be even stronger, with numerous experts forecasting home construction to grow by at least 20% a year for each of the next two years. Some believe building could be back near the pre-bubble average of about 1.5 million new homes a year by 2016, about double the 750,000 homes expected this year.

"We think the recovery is for real this time around," said Rick Palacios, senior analyst with John Burns Real Estate Consulting. "If you look across the U.S. economy right now, there are only a handful of industries looking at 20-30% growth over the next 4-5 years, and housing is one of those."

Justin C. Brennan

Estates Director

Harcourts Prestige Properties

7825 Fay Ave # 190

La Jolla, CA

619-823-2120

www.TheLaJollaLife.com

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Posted via email from Justin Brennan Real Estate

Thursday, October 11, 2012

As Prices Rise, Homeowners Gain Lost Equity! Q3 2012

Homeowners Recover 13.5 Percent of Lost Equity Through Q3

Posted By susanne On October 10, 2012 @ 3:40 pm In Consumer News and Advice,Finance

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After a sharp first quarter rise, total equity has grown to $863 billion, or 13.5 percent, since the end of 2011. The number of underwater borrowers has declined by 11 percent since the end of last year, from 12.1 million in the 4th quarter of 2011 to 10.8 million in the second quarter of 2012.

Nearly 1.3 million homeowner assistance actions have taken place through the Making Home Affordable Program, while the Federal Housing Administration (FHA) has offered more than 1.4 million loss mitigation and early delinquency interventions. The Administration’s programs continue to encourage improved standards and processes in the industry, with HOPE Now lenders offering families and individuals more than three million proprietary mortgage modifications through July.

As of August, more than one million homeowners have received a permanent HAMP modification, saving approximately $539 apiece on their mortgage payments each month, and an estimated $15 billion to date. In August, 81 percent of homeowners with eligible non-GSE mortgages benefitted from principal reduction with their HAMP modification. Eighty-seven percent of homeowners entering the program in the last two years have received a permanent modification.

“As the September housing scorecard indicates, our housing market is showing important signs of recovery – with homeowner equity at a four-year high and summer sales of existing homes at the strongest pace in two years,” says HUD Acting Assistant Secretary Erika Poethig. “The Administration’s efforts to keep housing affordable and refinances strong are critical with so many households still struggling to make ends meet. That is why we continue to ask Congress to approve the President’s refinancing proposal so that more homeowners can secure the help they need.”

Rising home values have brought homeowner equity to its highest level since the third quarter of 2008 and helped lift 1.3 million families above water. Homeowner equity jumped $406 billion, or 5.9 percent, to $7,275 billion in the second quarter of 2012. After a sharp first quarter rise, total equity has grown to $863 billion, or 13.5 percent, since the end of 2011. The number of underwater borrowers has declined by 11 percent since the end of last year, from 12.1 million in the 4th quarter of 2011 to 10.8 million in the second quarter of 2012.

The Administration’s foreclosure programs are providing relief for millions of homeowners as we continue to recover from an unprecedented housing crisis. Nearly 1.3 million homeowner assistance actions have taken place through the Making Home Affordable Program, while the Federal Housing Administration (FHA) has offered more than 1.4 million loss mitigation and early delinquency interventions. The Administration’s programs continue to encourage improved standards and processes in the industry, with HOPE Now lenders offering families and individuals more than three million proprietary mortgage modifications through July.

Homeowners entering HAMP continue to benefit from deep and sustainable assistance. As of August, more than one million homeowners have received a permanent HAMP modification, saving approximately $539 on their mortgage payments each month, and an estimated $15 billion to date. In August, 81 percent of homeowners with eligible non-GSE mortgages benefitted from principal reduction with their HAMP modification. Eighty-seven percent of homeowners entering the program in the last two years have received a permanent modification

Justin C. Brennan

Estates Director

Harcourts Prestige Properties

7825 Fay Ave # 190

La Jolla, CA

619-823-2120

www.TheLaJollaLife.com

Posted via email from Justin Brennan Real Estate

Tuesday, October 9, 2012

NEW La Jolla Market Stats 3rd Qrt 2012 | Justin Brennan

Join Luxury home specialist, Justin Brennan, as he details some new market numbers for La Jolla CA in the 3rd Quarter. Visit http://www.thelajollalife.com/ for more info and stats.

619.823.2120

VIDEO LINK:

Justin C. Brennan

Estates Director

Harcourts Prestige Properties

La Jolla, CA

619-823-2120

www.TheLaJollaLife.com

Posted via email from Justin Brennan Real Estate

Monday, October 8, 2012

What's Next for Celebrity Homes? A Boutique In Your Closet

Hollywood director Colin ( Skyline ) Strause’s bedroom closet resembles a designer boutique: a private, wenge-wood-paneled space where shoes are displayed in backlit cubicles, perfectly spaced sport coats hang on illuminated rods, and plush chairs provide a respite from browsing. “People walk into my bedroom and say, ‘Whoa,’ because it looks like a Louis Vuitton store,” marvels Strause.

His $200,000 showcase storage area is the work of Lisa Adams, a pint-size, M.B.A.-toting, college-trained chemist turned designer who founded her bespoke closet design firm, LA Closet Design, five years ago. “The trend now is shopping in your closet and having it feel like a boutique space,” explains Adams.

Read full story ….

http://www.forbes.com/sites/morganbrennan/2012/10/05/whats-next-for-celebrity-homes-a-boutique-in-your-closet/

Justin C. Brennan

Estates Director

Harcourts Prestige Properties

7825 Fay Ave # 190

La Jolla, CA

619-823-2120

www.TheLaJollaLife.com