An influx of cash into central banks is responsible for driving down interest rates on real estate transactions recently, which is making the American dream of homeownership a more affordable possibility for many people. Although those with poor credit or a lack of funds available for a down payment, might want to wait until their situation changes to apply for a loan, those with the financial means and sufficient credit scores may be excellent candidates for a new mortgage.
]]> Experts are reporting an increase in home buying due to lower interest rates and many homes are being purchased shortly after being listed. The lower interest rates on real estate transactions are also making it more possible for homeowners with existing 30-year mortgages to refinance and qualify for 15-year mortgages. These shorter term mortgages often carry interest rates lower than the rates for 30-year mortgages, in addition to allowing homeowners to pay more towards their principal and get their homes paid off faster.Even though declining property values may be putting somewhat of a damper on the amount of inventory available on the market, more people who might not have considered it before are now finding homeownership a very near possibility. With the sudden reduction in lower interest rates, people may want to talk to a real estate attorney about applying for a new mortgage or refinancing your existing loan.
Source: Source: Pantagraph.com, “Record-low mortgage rates encourage home-buying,” Kenneth Lowe, May 3, 2013.
]]>To further discuss what impact foreign investors are having on California real estate transactions, the Asia Society is hosting discussion panel in June how these purchases could affect California in the long run.
]]> According to the organization, commercial real estate purchases in the U.S. totaled nearly $2 billion in 2012, and some real estate experts think that California could see an even higher number in their state alone this year. But why are so many Chinese investors choosing California and what impact will this have on the state's real estate market?As many people in California will attest, our state offers a highly educated and experienced workforce with strong ties to China and the international economy. With so many big-name businesses headquartered across the state, Chinese investors could see this as a business opportunity too good to pass up. As for the economy in the state, an increase in property investors will strengthen the economy by providing more properties for the real estate market and offering new jobs for the workforce.
The June discussion is focusing much of its energy on questions that could address whether this surge of investment is a long-term trend and whether American developers could be swayed to make commercial and residential properties more appealing to their Chinese clients in the future.
Source: asiasociety.org, "Courting the Chinese Buyer: The New California Real Estate Boom," May 6, 2013
]]>Despite the rise in home prices, data shows that homeownership rates have declined. According to the Census Bureau, the home ownership rate dropped 0.04 percent in the first quarter of this year.
]]> The reason for the decline may be the result of investors sweeping up good deals in the real estate market and paying for the properties with cash, therefore beating out other potential buyers."Although there are some signs that conventional, mortgage-dependent buyers are playing more of a role in the housing recovery," one property economist said. "Investors remain the dominant force behind the house price bounce-back."
Home prices all over California are rising. In Los Angeles, home prices were up more than 14 percent in February compared to the year before. In San Francisco, home prices climbed close to 19 percent.
While it is a good sign that home values are rising, certain areas of the country have people a little worried. For instance, home prices in Phoenix, Las Vegas and Atlanta have increased tremendously.
Buying a home is a momentous occasion. It's something that many people in California and beyond wait their whole lives to do. Because it is such a big purchase, people need to be sure they are making responsible decisions. It is often wise to work with an experienced real estate attorney.
Source: Los Angeles Times, "U.S. home prices keep rising, but homeownership is down," Alejandro Lazo, April 30, 2013
]]>There was a time when MPG was the prominent builder of office buildings in Southern California. However, the company has struggled ever since the housing crisis began. If the deal goes through, Brookfield would own a total of 8.3 million square feet of downtown office space.
]]> "Brookfield buying the rest of MPG's portfolio is like putting together Chrysler, Ford and General Motors. It's that impactful," the chairman of a real estate brokerage firm said. "They will totally control the high end of the market."The buildings that Brookfield plans to own are particularly attractive to white-collar professionals. They have the money to make upgrades to the buildings. However, similar to MPG, they could have a hard time finding renters because of the way businesses have changed over the years. More people telecommute and less space is needed to store files.
Although the terms of this deal appear to be settled, MPG shareholders must approve it next fall.
Commercial real estate deals of this size are often quite complex and can be very time consuming. Many hours are spent making sure that a multitude of factors has been considered and that all of the necessary filings have been made. As with other real estate transactions, an experienced real estate attorney can prove to be an invaluable resource.
Source: The Los Angeles Times, "New York firm soon to be downtown L.A.'s biggest landlord," Roger Vincent, April 26, 2013
]]>The concerns about SB 391 center upon fees that will be imposed upon homeowners during real estate transactions with the provisions that are put into effect. According to the Legislative Counsel's Digest, the bill "would result in a change in state taxes for the purpose of increasing state revenues." Those changes seem to be a point of controversy.
]]> The bill would impose a fee of $75 to be paid at the time of the recording of every real estate instrument, paper, or notice required to be recorded. There are exemptions concerning this fee, but it has been alleged that the exemption may possibly be used by the millionaire home owner while the low income home owner might still be required to pay this fee. There are also complaints about the lack of guarantees that funds would be distributed fairly to California's rural districts - if the funds are distributed there at all.Oftentimes, legislatures pass legislation with good intentions without completely thinking out the consequences. Whatever controversies exist, SB 391 was proposed with helping the homeowner in mind. Attorneys that will represent clients in various real estate transactions will want to make certain that any questions of interpretation are addressed in a manner favorable to homeowners.
Sources:
Once people have purchased their first home, they may be interested in buying additional properties. Now may be a particularly good time to do so since interest rates remain low and home prices have not reached peak values.
]]> According to the National Association of Realtors, vacation home sales increased by about 10 percent in 2012. In addition, the median price of vacation homes increased 24 percent. Some regions have seen a flurry of activity. One realtor noted that some people are fighting over vacation homes that have been on the market for years now.Despite the median price of vacation homes increasing last year, people are still able to find good deals. The median price last year was $150,000. In 2005, the median price was around $204,000.
People who are looking to buy vacation homes are typically slightly older than the average homebuyer. There median incomes also tend to be a bit higher.
Orange County residents may be reluctant to purchase a new home after seeing the trouble that so many people went through during the housing crisis. However, people looking to purchase a home at a good price may see no better time than right now to buy. To be sure people are making appropriate decisions and asking the right questions, it may be best to consult with an attorney who has experience with real estate transactions.
Source: CNNMoney, "Vaction home sales surged 10% last year," Les Christie, April 2, 2013
· Negotiating and closing residential real estate transactions can be overwhelming at times. Our firm works with people throughout the process.
]]>The number of mortgage loan originations among borrowers with lower credit scores has dropped dramatically in recent years. Mortgage loans for new homebuyers with credit scores between 620 and 680 decreased 90 percent between 2007 and 2012.
]]> About eight years ago, it was easy to get a loan, but the housing crisis taught us that more strict requirements should be put in place. However, requirements that are too rigid could have a negative impact on the economy, especially when it comes to young first-time homebuyers who typically have lower credit scores."Without first-time homebuyers, the move-up market will be sluggish, new and existing home sales will be more subdued, and purchase mortgage volumes will return only slowly," Federal Reserve Governor Elizabeth Duke said recently.
Buying a new home is an exciting process. For many people, purchasing a new home for the very first time is a way to live out the American dream. Now is a particularly good time for people to buy homes because of the opportunity to take advantage of low interest rates.
Thoughtful decisions should always be made as people are going through the home-buying process, especially when it comes to receiving affordable mortgages. In some instances, it is wise to work with a legal professional as people are working through real estate transactions.
Source: The Wall Street Journal, "Why It's Still Hard to Get a Mortgage," Nick Timiraos, April 1, 2013
•· Our firm handles a variety of real estate transactions. Please see our website for more information.
]]>Most people see the rising home prices as a good thing. However, are these large increases a sign of trouble? After all, housing prices tumbled after reaching peak levels in 2005 and 2006. Could we be headed in that direction again?
]]> Those familiar with the real estate market say people shouldn't be worried. While home prices have risen in the last year, they remain much lower than they were in 2005 and 2006. In fact, homes in California are priced close to 35 percent lower than they were during the housing boom. Home prices all across the country remain relatively low in comparison to the prices that were seen seven years ago.People should also be reassured to know that job growth has allowed more people to consider buying homes. In addition, low inventories have helped raise prices.
The housing crisis was painful for many people in California and beyond. During the crisis, many people saw significant declines in their home's value. While the experience was difficult, it may have provided people with good lessons. Going forward, people in California and others living elsewhere are likely to make more thoughtful home-buying decisions.
In addition, people may want to rely on legal professionals who have a broad understanding of the home-buying process. Working with an experienced real estate attorney may prove to be quite beneficial.
Source: AOL Real Estate, "Is California's Wild Housing Market a Sign of a Bubble?" Graham Wood, March 28, 2013
•· Our firm helps people negotiate and close a variety of real estate transactions. To learn more, please see our Southern California residential real estate page.
]]>It was recently announced that three investment groups bought dozens of buildings in the Silicon Valley area at the end of last year. The companies reportedly settled an $800 million deal.
]]> In total, 73 buildings were purchased. That amount of space is about the same as six shopping malls.Many companies in the Silicon Valley area have experienced tremendous growth in recent years, leading to a spike in leasing activity. The investors involved in this deal want to take advantage of that growth.
"This investment enables us to acquire a critical mass of assets in a rental market that is seeing one of the best growth rates in the United States," the president of Ivanhoe Cambridge said. Ivanhoe Cambridge is just one of three companies involved in the deal.
Investors could end up spending a lot more money in order to complete renovations. Many of the companies in Silicon Valley are looking for modern designs.
While this deal is particularly unique, real estate transactions of any size can be complex. Trying to understand those complexities can be difficult. That is why it is often best to work with an experienced real estate attorney throughout the process. After all, when thousands of dollars are at stake, people in California and beyond want to be sure mistakes are avoided.
Source: San Jose Mercury News, "Silicon Valley: Commercial real estate mega-deal involves 73 office and research buildings," George Avalos, March 21, 2013
•· Our firm works with people to settle a variety of real estate transactions. To learn more please visit our California commercial real estate page.
]]>According to DataQuick Information Systems, median home prices last month were more than 22 percent higher compared to February of last year. Last month, the median home price in Orange County was $477,000. This is a trend being seen all across Southern California.
]]> The president of DataQuick says this month and next could give people a sense of what the real estate market will be like for the rest of the year. It's become a seller's market as a result of low inventories. However, as home prices go up, more people may be interested in selling. In turn, that could slow increases in home prices, benefitting buyers who are interested in taking advantage of low interest rates.Whether it is your first home or a second or third property, buying a home is significant. People often dream of the day that they will officially become a homeowner. Often, people save up money for years to afford a home.
Unlike other items, a home cannot be returned or exchanged once it has been purchased. Because of the significance of buying a home, people in Orange County and others elsewhere would likely benefit from working with an experienced real estate attorney throughout the process. An attorney has a broad understanding of real estate laws. They will work to ensure the process goes smoothly for a first time home buyer or previous homeowner.
Source: Los Angeles Times, "SoCal home prices up 21%; February sales volume hits 6-year high," Andrew Khouri, March 13, 2013
•· Our firm works with people throughout the home-buying process. Please visit our Southern California real estate transactions page to learn more.
]]>Despite people offering prices that were comparable to other condos in the area, Fannie Mae, the lender backing the loan, rejected those offers and listed the condo about 30 percent higher. Buyers weren't interested in the property at that high of a price, so the man's home eventually sold at a foreclosure auction.
]]> This is a problem that appears to be widespread across the state. About half of home loans in California are owned or backed by Fannie Mae. Although the lender is trying to help people avoid foreclosure, it is also trying to get the most out of properties. Realtors say the result is that home prices are inflated all across the state.A short sale is often a good option for people who can no longer afford their home but who are trying to avoid foreclosure. However, buyers looking to get a good deal aren't interested in properties that are priced 20 to 40 percent higher than other comparable properties.
Real estate disputes like this can be difficult to resolve, especially for people in Orange County and beyond who have little real estate knowledge. People in California involved in a real estate dispute are usually best served working with an experienced attorney who understands the complexities of real estate-related matters.
Source: The San Diego Union-Tribune, "Is Fannie Mae overpricing homes?" Lily Leung, March 1, 2013
•· Our firm works with people who are dealing with complex real estate issues. To learn more, please visit our Orange County real estate dispute page.
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