[Midwest Division] Shopping center in Channahon offering incentives to prospective small business tenants

Shopping center in Channahon

Three generations of the Brandolino family have owned and managed commercial shopping centers locally.

Father/son duo Fiore and Jeff Brandolino purchased the shopping center at 25520 Pheasant Lane in Channahon at the corner of Route 6 and Ridge Road earlier this year.

Some of the current tenants include Mallard Point Veterinary Clinic and the Office Bar & Grill.

When they bought the center, they knew there were vacancies and had planned to get creative in finding new tenants. For any local small business looking to open shop in Channahon, they are willing to place their “bet on the winning horse.”

“Yes, we want to help out the small local business in our community,” Brandolino said in a press release. “We believe in this community and want to be part in the growth of our hometown. We currently have a vacancy that would be absolutely perfect for a barber shop or beauty salon. In fact, we already have the sign above the unit, ‘Barber Shop.’ If someone is willing to invest their heart into opening a business, we are willing to help make it a success. Based on the proposed use and business model of the tenant, we are prepared to be generous in helping them get the business up and running for the new year.”

For more information on the space available, call 815-735-1848.

Read original article in The Herald News 


February 2017 SCV Market Statistics

Feb-2017 SCV Market Stats

February 2017 Santa Clarita Real Estate Market: The Santa Clarita real estate market saw a drop in the total number of active listings and homes sales from February 2016 for Single Famly Residents, while, the average home price had increased from a year ago.

Valencia Real Estate Market News, Canyon Country Real Estate Market News, Newhall Real Estate Market News, Stevenson Ranch Real Estate Market News, Saugus Real Estate Market News, Castaic Real Estate Market News, Agua Dulce Real Estate Market News & Acton Real Estate Market News.


Cover Story: The Tolucan Times Interview with Jeff Brandolino

Property investment tips with Jeff Brandolino, President and Founder of Brandolino Group, Inc. Real Estate Investment Company

Jeff Brandolino was featured in Wednesday’s The Tolucan Times Cover Story on property investment tips. Read the full story HERE or check out the latest edition of The Tolucan Times.

Tolucan-cover-Jeff-Brandolino
Photo from The Tolucan Times – Property investment tips with Jeff Brandolino, President and Founder of Brandolino Group, Inc. Real Estate Investment Company

Tolucan-story-Jeff-Brandolino

Read the full story HERE

Interview with Jeff Brandolino

Are there investing secrets?

When looking for an investment property, find value-add opportunities.  A property that is performing at its best can only get worse.  We look for properties that we can add value to and increase profits by rolling up our sleeves and doing what we do best!

How can we retire wealthy?

Buy Real Estate and HOLD it long term! Invest with partners and spread your money for diversity. I would rather have 50 percent of two properties than 100 percent of one.

Should I pay cash for Real Estate?

No! Rates are at an all time low. Use bank leverage while it is available at these low costs. Lock in fixed rates and let your rental income pay off the bank over time.

Has the house flipping business slowed down?

Yes. We continue to treasure hunt daily and with hard work, the deals are out there. We have built a well-oiled machine that will continue on through all market conditions.

Are you guys looking for new investors?

Not actively. But we are always open to meeting new potential investors, having the relationships in place is key for when the timing is right.

Do you sell homes or only invest?

We do it all! I focus on acquisitions and listing our assets for sale, while our amazing team of agents list and sell, sell, sell.

About Brandolino Group, Inc.

Jeff Brandolino is a seasoned and top producing real estate agent with Realty Executives (licensed since 1998). With roots in the Santa Clarita Valley, over the years Brandolino Group has extended its reach to all of Los Angeles County.

In late 2006 Brandolino had the vision to redirect his focus into real estate investing just as we entered the Great Recession. Brandolino and his partners have been successfully acquiring, renovating and selling hundreds of properties, with over $300 million in volume over the last decade. They have also managed to acquire a significant portfolio of residential, multi-residential and commercial real estate of which they have repositioned, leveraged and continue to hold as long term investments.

Brandolino Group also has a property management division—Valleywide Leasing, Inc.—that allows them to have complete control and hands on involvement managing their portfolio.

Jeff Brandolino, a Toluca Lake resident, recently opened a second office to be closer to the community in which he resides. Today, Brandolino Group, Inc. investment headquarters is located in Burbank at their recently acquired and renovated commercial building on Burbank Blvd. 


Tax Benefits for Senior Citizen Homeowners

Tax Benefits for Senior Citizen Homeowners

Senior Citizen’s Replacement Dwelling Benefit

In most cases, these constitutional tax initiatives allow senior citizens to transfer the trended base value from their current home to a replacement property if certain requirements are met. This may result in substantial tax savings.

Prop 60 & 90 Form

Homeowner Tax Exemption Form

Counties Currently Accepting Prop 90

Who Qualifies?

  1. The replacement property must be your principal residence and must be eligible for the Homeowners’ Exemption or Disabled Veterans’ Exemption.
  2. The replacement property must be of equal or lesser “current market value” than the original property. The “equal or lesser” test is applied to the entire replacement residence, even if the owner of the original property acquires only a partial interest in the replacement residence. Owners of two qualifying original residences may not combine the values of those properties in order to qualify for a Proposition 60 base-year transfer to a replacement residence of greater value than the more valuable of the two original residences.
  3. The replacement property must be purchased or built within two years (before or after) of the sale of the original property.
  4. Your original property must have been eligible for the Homeowners’ or Disabled Veterans’ Exemption.
  5. You, or a spouse residing with you, must have been at least 55 years of age when the original property was sold.

Two New Custom Homes In Thousand Oaks Available Now!!

Custom Spanish Monterey

front

Walking distance to The Lakes dining and shopping center, now boasting Lassens’ market, which offers a wide variety of organic products; Thousand Oaks Civic Arts Plaza; beautiful Gardens of the World; and the gourmet Mastro’s Steakhouse.

» 4 bedrooms, bonus room, office, & library

» Omega Dynasty cabinetry

» High end finishes throughout

» 3 car garage, copper gutters

» 8′ solid core doors

» Wine Cellar

Learn More »


 

Custom Craftsman

front2

Walking distance to The Lakes dining and shopping center, now boasting Lassens’ market, which offers a wide variety of organic products; Thousand Oaks Civic Arts Plaza; beautiful Gardens of the World; and the gourmet Mastro’s Steakhouse.

» 4 bed upstairs

» Office/den downstairs with french doors

» Omega Dynasty cabinetry

» High end finishes throughout

» 8′ solid core doors

» Custom garage doors

Learn More »


Your Own Private Paradise On One Of The Best Streets In Hasley Canyon – 31050 Burlwood Drive

31050 Burlwood Drive, Castaic, CA 91384

31050 Burlwood Drive Castaic
31050 Burlwood Drive Castaic

When you close the gate, you close off the rest of the world and you are now free to create whatever paradise you desire. The city is gone and nature dominates. If you desire a top of the world view where your creativeness is unleashed or to create an equestrian center with all your horsemanship desires, you now have the power to create your own reality, away from the stress of the maddening world.

  • This gated property has 80 acres with a tentative map almost complete for 4 parcels. 2-10 acre parcels, 1 20 acre parcel and one 39 acre parcel.
  • 5,000 square foot workshop currently exists as well as a modular home. Live in the modular and store your toys in the barn while you develop this exclusive estate.
  • 2 wells on the property. One produces 30 gallons per minute and the other produces 16 gallons per minute. Public water is to the property. Agricultural zoning which allows a multitude of uses.
  • Two adjacent 80 acre parcels are available also as well as an additional 512 acres. The subject property is the gateway property to an additional 672 acres that contiguous to the subject and available.

 

 View Listing Website


Los Angeles Real Estate Heats Up With Mogul Money

By: Kathy McDonald – Variety

Execs and celebs buying homes are remaking Southern California neighborhoods

Numbers don’t lie. Like box office grosses, home sales reflect economic reality. Per real estate news firm Data Quick, year-over-year residential real estate sales prices are up 18.4% across the Los Angeles area in early 2014 and the inventory of homes and condos for sale remains low. At the upscale end of the market, often in those Los Angeles neighborhoods favored by showbizzers, demand is the strongest, resulting in multiple offers over asking price for contempo properties and select empty lots.

“The market is better than it’s ever been,” says owner of Pardee Properties, Tami Pardee, a real estate agent who specializes on L.A.’s Westside. Home prices in Venice and the surrounding areas have been “incredibly impacted,” per Pardee, by Silicon Beach — the corridor from Venice to Playa Vista, where tech and digital media firms are headquartered.

The upward trend in the area’s home prices is referred to as the “Google effect” because employees of the firm (and related venture capitalists and tech start-ups like Snapchat) prefer to live within walking or biking distance of their workplaces. The area is its own real estate hot spot: Pardee recently sold three contiguous empty lots totaling 7,000 square feet (and off the market for 70 years) for $4.5 million. In December, Snapchat CEO Bobby Murphy bought a two-bedroom, ultra-contempo architectural beach pad in a small-lot subdivision for $2.1 million — double the median price of surrounding homes.

“We’re finding the real estate market is as hot as it was in 2006,” says Stacy Gottula of Coldwell Banker Previews Intl. “We’re back at that price point.”

Trousdale Estates, the so-called bird streets above Sunset Strip, the Pacific Palisades and the upper reaches of Bel-Air continue to attract those in the biz. “The view properties are a big deal” for industryites, Gottula says, “and gated private homes are always in demand.” She adds that it’s not uncommon to see properties with acreage and privacy selling in the $2,000 per square foot range, which is actually a value when compared to other cities such as London or Hong Kong, where prices often rise above $4,500 per square foot. Naturally, this makes Los Angeles popular among international buyers.

Gottula notes that talent, unlike in years past, tend to buy, sell and move more frequently. “They like change, keep up with trends, which today is a contemporary house that has light, glass and views,” says the agent.

Execs are also active. Financier Megan Ellison, producer of Oscar-nommed “American Hustle” and “Her,” sold three lots in the bird streets at a significant profit and has since purchased a $30 million mega-manse on top of Mt. Olympus that’s a probable teardown, per Ellison, who has not yet chosen an architect to remake the gated compound.

Although the Hollywood Hills and the Westside have appeal for creative types, the dense, walkable and traditional neighborhoods of Highland Park, Eagle Rock and Echo Park are also in demand. Multiple offers and over asking prices for select properties (an Eagle Rock mid-century fixer recently sold for $200,000 over asking) and all-cash deals are a matter of course in this burgeoning northeast section of town.

Revised land use plans along Lincoln Boulevard and developments along the under-construction Expo rail line promise increased density along the route and in Santa Monica. Close to the beach and adjacent to the city’s new Tongva Park, Ocean Avenue South is the first new luxury condominium and apartment development to come to market in decades. “We’re delivering 158 ultra-luxury condos in the civic core,” says Gino Canori, senior VP, Related California, developers of the project, which has been on the boards since 2006.

As the Ocean Avenue South units are released, the first 12 sold out. Pricing is top of market (from just under $1 million for lofts to mid-$7 million). The ocean views, all-new constructions and fully designed condos are in a desirable area where there’s job growth. This combination of factors ensures that “the demand is there,” says Canori.


CoreLogic Reports 4 Million Residential Properties Returned to Positive Equity in 2013

By: CoreLogic®

––Approximately 6.5 Million Residential Properties with a Mortgage Still in Negative Equity––

CoreLogic® (NYSE: CLGX), a leading residential property information, analytics and services provider, today released new analysis showing 4 million homes returned to positive equity in 2013, bringing the total number of mortgaged residential properties with equity to 42.7 million. The CoreLogic analysis indicates that nearly 6.5 million homes, or 13.3 percent of all residential properties with a mortgage, were still in negative equity at the end of 2013. Due to a small slowdown in the quarterly growth rate of the Home Price Index, the negative equity share was virtually unchanged from the third quarter of 2013.*
Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgages than their homes are worth. Negative equity can occur because of a decline in value, an increase in mortgage debt or a combination of both.

For the homes in negative equity status, the national aggregate value of negative equity was $398.4 billion for fourth quarter 2013, compared to $401.3 billion for third quarter 2013, a decrease of $2.9 billion.

Of the 42.7 million residential properties with positive equity, 10 million have less than 20-percent equity. Borrowers with less than 20-percent equity, referred to as “under-equitied,” may have a more difficult time obtaining new financing for their homes due to underwriting constraints. Under-equitied mortgages accounted for 21.1 percent of all residential properties with a mortgage nationwide in 2013, with more than 1.6 million residential properties at less than 5-percent equity, referred to as near-negative equity. Properties that are near-negative equity are considered at risk if home prices fall.

“The plight of the underwater borrower has improved dramatically since negative equity peaked in December 2009 when more than 12 million mortgaged homeowners were underwater,” said Mark Fleming, chief economist for CoreLogic. “Over the past four years, more than 5.5 million homeowners have regained equity, reducing their risk of foreclosure and unlocking pent-up supply in the housing market.”

“Stability and growth in the housing market are essential for a durable recovery of the U.S. economy,” said Anand Nallathambi, president and CEO of CoreLogic. “The rebound in home prices in 2013 helped 4 million property owners regain at least some positive equity in their largest asset—their home. We still have a long way to go to eliminate the negative equity overhang but significant progress is being made every day across most of the country.”

Highlights as of Q4 2013:

  • Nevada had the highest percentage of mortgaged properties in negative equity at 30.4 percent, followed by Florida (28.1 percent), Arizona (21.5 percent), Ohio (19.0 percent) and Illinois (18.7 percent). These top five states combined account for 36.9 percent of negative equity in the United States.
  • Of the 25 largest Core Based Statistical Areas (CBSAs) based on population, Orlando-Kissimmee-Sanford, Fla., had the highest percentage of mortgaged properties in negative equity at 31.5 percent, followed by Tampa-St. Petersburg-Clearwater, Fla. (30.4 percent), Phoenix-Mesa-Scottsdale, Ariz. (22.1 percent), Chicago-Naperville-Arlington Heights, Ill. (21.4 percent) and Atlanta-Sandy Springs-Roswell, Ga. (19.9 percent).
  • Of the total $398 billion in negative equity, first liens without home equity loans accounted for $205 billion aggregate negative equity, while first liens with home equity loans accounted for $193 billion.
  • Approximately 3.9 million upside-down borrowers hold first liens without home equity loans. The average mortgage balance for this group of borrowers is $219,000. The average underwater amount is $52,000.
  • Approximately 2.6 million upside-down borrowers hold both first and second liens. The average mortgage balance for this group of borrowers is $293,000.The average underwater amount is $75,000.
  • The bulk of home equity for mortgaged properties is concentrated at the high end of the housing market. For example, 92 percent of homes valued at greater than $200,000 have equity compared with 81 percent of homes valued at less than $200,000.

*Third quarter 2013 data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.

Methodology
The amount of equity for each property is determined by comparing the estimated current value of the property against the mortgage debt outstanding (MDO). If the MDO is greater than the estimated value, then the property is determined to be in a negative equity position. If the estimated value is greater than the MDO, then the property is determined to be in a positive equity position. The data is first generated at the property level and aggregated to higher levels of geography. CoreLogic data includes 49 million properties with a mortgage, which accounts for more than 85 percent of all mortgages in the U.S. CoreLogic uses its public record data as the source of the MDO, which includes both first-mortgage liens and second liens, and is adjusted for amortization and home equity utilization in order to capture the true level of MDO for each property. The calculations are not based on sampling, but rather on the full data set to avoid potential adverse selection due to sampling. The current value of the property is estimated using a suite of proprietary CoreLogic valuation techniques, including valuation models and the CoreLogic Home Price Index (HPI). Only data for mortgaged residential properties that have a current estimated value is included. There are several states or jurisdictions where the public record, current value or mortgage coverage is thin. These instances account for fewer than 5 percent of the total U.S. population.

Source: CoreLogic
The data provided is for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Lori Guyton at lguyton@cvic.com or Bill Campbell atbill@campbelllewis.com. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.

About CoreLogic
CoreLogic (NYSE: CLGX) is a leading property information, analytics and services provider in the United States and Australia. The company’s combined data from public, contributory and proprietary sources includes over 3.3 billion records spanning more than 40 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, transportation and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in seven countries. For more information, please visitwww.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.

For real estate industry and trade media:
Bill Campbell
bill@campbelllewis.com
212-995-8057

For general news media:
Andrea Hurst
ahurst@cvic.com
405-487-7721


More Than 4 Million First-Time Buyers Want to Enter the Housing Market in 2014, Buoyed by Strong U.S. Housing Confidence

By: Zillow

Homeownership Aspirations Among Current Renters Highest in Markets Hard-Hit by Housing Recession, According to Inaugural Zillow Housing Confidence Index

– U.S. Housing Confidence Index currently stands at 63.7.

– If all renters indicating they want to buy a home in the next year actually did, it would represent more than 4.2 million first-time home sales.

– Renters in Miami, Atlanta & Las Vegas expressed the most desire to become homeowners.

– All aspirations unlikely to be realized soon, as homeownership headwinds persist.

Millions of current renters nationwide aspire to buy a home in the next year, according to the inaugural edition of the Zillow Housing Confidence Index (ZHCI)(i) , suggesting strong demand among potential first-time homebuyers if market conditions are favorable. But existing headwinds, including tight inventory, rising mortgage interest rates and growing affordability problems in a handful of areas, may make it difficult for potential buyers to follow through on those aspirations as the market enters the busy spring home shopping season.

In 19 of the 20 large metro areas surveyed, more than 5 percent(ii) of all residents indicated they wanted to buy a home in the next year. Among current renters, homeownership aspirations were particularly strong, with about 10 percent of all renters nationwide saying they would like to buy within the next 12 months. The vast majority of these respondents also said they were confident or somewhat confident they could afford homeownership now(iii) . If all renters that indicated they wanted to buy actually did purchase a home in the next year, it would represent more than 4.2 million first-time home sales(iv) , more than double the roughly 2.1 million first-time home buyers in 2013.

Homeownership aspirations among current renters were the highest in Miami, Atlanta and Las Vegas, three metro areas that were among the hardest-hit by the housing recession, according to the Zillow Homeownership Aspirations Index (ZHAI), a component of the broader ZHCI.

But despite strong desires to own a home, market conditions remain mixed for potential buyers. While inventory is up nationally compared to a year ago (up 11.1 percent), it still remains well below optimal levels, and has fallen year-over-year in eight of the 20 metro areas surveyed by the ZHCI. Recent data from the Census Bureau also indicates that the share of new homes built as rental units has grown, while the share of new construction dedicated to the kinds of single-family homes likely to be favored by first-time buyers is down(v) .

Mortgage interest rates are also on the rise, currently standing at about 4.2 percent nationally, according to the Zillow Mortgage Marketplace, well above 2013 lows of roughly 3.3 percent. And as interest rates rise, homes in a number of particularly hot markets, including San Francisco, Los Angeles, San Jose and San Diego, are already looking unaffordable for buyers with lower incomes, especially first-time buyers, as more income is devoted to mortgage payments.

“For the housing market to continue its recovery, it is critical that homes are both available and remain affordable to meet the strong demand these survey results are predicting, particularly from first-time homebuyers,” said Zillow(R) Chief Economist Dr. Stan Humphries. “Even after a wrenching housing recession, this data shows that the dream of homeownership remains very much alive and well, even in those areas that were hardest hit. But these aspirations must also contend with the current reality, and in many areas, conditions remain difficult for buyers. The market is moving toward more balance between buyers and sellers, but it is a slow and uneven process.”

The Zillow Housing Confidence Index, sponsored by Zillow, Inc. and developed by Pulsenomics LLC, is measured on a 0 to 100 scale, with readings above 50 indicating positive sentiment. The overall ZHCI for the U.S. stood at 63.7 at the start of the year(vi) . Of the 20 metro areas surveyed, 11 had individual confidence levels higher than the U.S. as a whole. The overall U.S. ZHAI among all households, which measures consumers’ plans to buy and their attitudes toward the social value of homeownership, stood at 62.4.

“While it is reassuring to see all of the headline ZHCIs in positive territory, the underlying indicators of homeownership aspirations, housing market conditions and expectations for each metro area and tenure segment reveal significant variability,” said Pulsenomics Founder Terry Loebs. “Several of these drivers of overall housing confidence registered negative or only marginally positive readings in some cities. These data confirm that real estate recovery and economic healing are relative, local phenomena, and in some instances, likely reflect the lingering psychological impact of the housing bust.”

Zillow_chart
More Than 4 Million First-Time Buyers Want to Enter the Housing Market in 2014, Buoyed by Strong U.S. Housing Confidence

About Zillow:

Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Agentfolio®, Mortech®, HotPads™ and StreetEasy®. The company is headquartered in Seattle.

Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions, Agentfolio and StreetEasy are registered trademarks of Zillow, Inc. HotPads and Zillow Digs are trademarks of Zillow, Inc.

 About Pulsenomics:

Pulsenomics LLC (www.pulsenomics.com) is an independent research and consulting firm that specializes in data analytics, new product and index development for institutional clients in the financial and real estate arenas. Pulsenomics also designs and manages expert surveys and consumer polls to identify trends and expectations that are relevant to effective business management and monitoring economic health. Pulsenomics LLC is the author of The Home Price Expectations Survey, The U.S. Housing Confidence Survey, and The U.S. Housing Confidence Index. Pulsenomics®, The Housing Confidence Index™, and The Housing Confidence Survey™ are trademarks of Pulsenomics LLC.

(i) The ZHCI is computed by Pulsenomics from data compiled by the Zillow-sponsored U.S. Housing Confidence Survey (HCS), consisting of more than 10,000 interviews with adult landline and cellphone users nationwide, collecting more than 300,000 consumer responses pertaining to the real estate market where each survey respondent lives. The headline Housing Confidence Index is comprised of three sub-indices: the Housing Market Conditions Index, measuring recent and prevailing home value trends and current buying/selling conditions; the Housing Expectations Index, which gauges expected changes in local home values, the overall affordability of homeownership and the relative value of homeownership; and the Homeownership Aspirations Index, which measures consumers’ plans to buy and their attitudes toward the social value of homeownership. To view [or download] all 256 index values that comprise the ZHCI data set, or to learn more about the ZHCI calculation methodology, please visit Zillow.com/research or pulsenomics.com.

(ii) At least 500 HCS questionnaires are completed within each of the 20 metropolitan areas where Pulsenomics conducts this survey research. For each edition of the HCS, Pulsenomics compiles more than 300,000 response data points that are recorded within the 10,000 completed questionnaires. At a 95% confidence interval, the theoretical margin of sampling error for an aggregated, household-weighted sample of 10,000 (comprised of 20 metro-level probability samples of 500 each) is +/- 1.2%. The theoretical margin of sampling error for a probability sample of 500 drawn from a single U.S. metro area population is +/- 4.4%.

(iii) In 17 of 20 metros surveyed, at least 90 percent of surveyed renters who said they want to buy in the coming year indicated they were “confident” or “somewhat confident” they could afford a home. In Seattle, 82 percent indicated confidence, and in Dallas and San Francisco, 84 percent indicated confidence.

(iv) For purposes of this analysis, we label current renters that plan to purchase a home as “first-time” homebuyers. We acknowledge that a portion of current renters may have owned a home in the past (but this share is unknown and it is likely the majority of renters that do purchase a home in the next year will be doing so for the first time).

(v) http://www.census.gov/construction/nrc/

(vi) The inaugural U.S. Housing Confidence Survey was fielded between Jan. 6 2014 and Jan. 13 2014.

SOURCE Zillow, Inc.


Housing markets rebound faster when foreclosures proceed quickly

By Kenneth R. Harney

Home prices are rising faster in ‘nonjudicial’ states such as California, where foreclosures can be carried out without being tied up in court procedures for years.

Why have many of the local housing markets that were hit hardest during the bust — especially in California — bounced back so vigorously and quickly, with prices close to or exceeding where they were in 2005 and 2006?

And why have many others along the East Coast and in the Midwest had a slower move toward recovery, with sluggish sales and gradual increases in values?

Though multiple economic factors are at work, appraisal industry experts believe that they have isolated a crucial and perhaps surprising answer: Real estate markets rebound much faster in areas where state law permits foreclosures to proceed quickly, moving homes with defaulted loans into new owners’ hands expeditiously, rather than allowing them to sit and deteriorate, tied up in court procedures for years. Prices of foreclosed homes in such areas typically are depressed and negatively affect values of neighboring properties, but they don’t remain so for lengthy periods because investors and other buyers swoop in and return them to residential use rapidly.

By contrast, in states where laws allow large numbers of homes in the process of foreclosure to remain in legal limbo, often empty and unsold, home-price recoveries are hindered because lenders are prevented from recovering and reselling the units to buyers who will fix them up and add value.

Pro Teck Valuation Services, a national appraisal firm in Waltham, Mass., recently completed research in 30 major metropolitan areas that dramatically illustrates the point. All the fastest-rebounding markets in October — those with strong sales, price increases and low inventories of unsold houses — were located in so-called nonjudicial states, where foreclosures can proceed without the intervention of courts.

All the worst-performing markets — where prices and sales have been less robust and there are excessive numbers of houses available but unsold — were located in judicial states, where post-default proceedings can stall foreclosure completions for two to three years or even more in some cases.

Among the best-performing areas were California markets such as Los Angeles and San Diego. California is a nonjudicial state. Among the worst performers were Florida markets such as Tampa and Fort Myers, as well as parts of Illinois and Wisconsin. All of these are judicial states.

Currently 22 states are classified as judicial foreclosure jurisdictions, including Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin. All other states handle foreclosures without court participation.

Tom O’Grady, chief executive of Pro Teck, says the differing rebound patterns of judicial and nonjudicial foreclosure states jumped out of the study data dramatically.

“When we looked closer” at rebound performances state by state, “we observed that nonjudicial states bottomed out sooner” — typically between 2009 and 2011 — “versus 2011 to 2012 for judicial states, and have seen greater appreciation since the bottom,” typically 50% to 80% compared with just 10% to 45% for judicial states, O’Grady said.

“Our hypothesis,” he added, “is that nonjudicial states have been able to work through the foreclosure [glut] faster, allowing them to get back into a non-distressed housing market sooner, and are therefore seeing greater appreciation.”

California, for example, experienced severe price declines immediately after the bust hit in 2007 and 2008 — thousands of foreclosed homes flooded the market, depressing values of other real estate in the area. O’Grady calls this a “concentrated foreclosure effect” that is painful while it’s happening but relatively quickly purges the marketplace by turning over distressed units to new ownership.

Judicial states, on the other hand, tend to be still struggling with homes flowing out of the foreclosure pipeline, prolonging the negative price effects on other houses for sale.

O’Grady noted that in nonjudicial states such as California, foreclosures now account for just 10% of all sales, and home listings amount to a four-month supply — well below the national average. In slow-moving judicial states, by contrast, 25% to 50% of sales are foreclosures, and unsold inventory represents a five-month to 10-month supply.

the “location, location, location” mantra, inherent in that concept is something less well-known: State laws governing foreclosure affect market values and govern how well they bounce back after a shock. Prices take much longer to recover when foreclosures drag out for years.