OKay if you are coming to the Los Angeles area to search for a new place you need a short term rental... Or say you are a business transfer and want a week of good housing while you search for a long term apartment but do not want a boring hotel.
THEN the answer is the Venice Suites or Venice Breeze Suites.
You can find all the info on www.BestOfTheBoardwalk.com
Really cool to look out your windows and check out the serf on the beach. WiFi for the guests. And Venice Suites does include parking. A big deal in beach towns up and down the coast. Ask if parking is included. Many of the other places will say No.
Stay at the best. Right on Venice Beach for the views and fun hip feel.
IMHO. These are the best.
Keith
PS the new Google Offices are a little way away in Venice on Main Street.
Monday, January 09, 2012
Friday, December 30, 2011
Holiday in the City
I think this is the best Holiday Card for this season.
Hopping you all had a nice holiday filled with family and love. Now as we look at the new year we turn to 20 12 with aspirations for a very profitable year.
I think the new year is going to be very good.
Enjoy...
Nice! Right?
Keith
Hopping you all had a nice holiday filled with family and love. Now as we look at the new year we turn to 20 12 with aspirations for a very profitable year.
I think the new year is going to be very good.
Enjoy...
Snow Globe Los Angeles from All Cut Up Films on Vimeo.
Nice! Right?
Keith
Friday, November 18, 2011
Los Angeles Multi-Family Property Owners defended in the Court
Very good news recently. Our properties are defended by the courts from the LA Housing Department.
http://www.fairhousingcoalition.com/?p=343
So the various inspections and many various citations and harassment are hopefully coming to a stop!
This will reduce the likelihood of the harsh REAP situation that costs the owner thousands and makes legal trouble for many. Some have even lost their property!
See the link for more information. And a Thank You to Superior Court Judge Jaffe for this ruling helping to protect Housing Providers from the LAHD in its heavy handedness.
Most small businessmen (and businesswomen) who have apartment buildings (multifamily dwellings of all sizes) have been terrorized by the next city or county inspector to knock on our door.
Excess fees and taxes and petty inspections loaded with fines are killing our bottom lines.
We must band together with groups like ACTION (in Santa Monica) and AAGLA (in Los Angeles) or other associations to protect ourselves from big government abuses. they are the few who can fight the fight with/for/together so we do not get overwhelmed.
Sincerely
Keith Lambert
http://www.fairhousingcoalition.com/?p=343
So the various inspections and many various citations and harassment are hopefully coming to a stop!
This will reduce the likelihood of the harsh REAP situation that costs the owner thousands and makes legal trouble for many. Some have even lost their property!
This is a bombshell ruling! Since that time tens of thousands of properties have been placed into REAP due to supposed building code infractions cited by non-authorized LAHD inspectors. Hundreds of Millions of Dollars have been confiscated from Landlords since December 1, 1999 because of matters relating to building code violations once again cited by non-authorized LAHD inspectors.
Most small businessmen (and businesswomen) who have apartment buildings (multifamily dwellings of all sizes) have been terrorized by the next city or county inspector to knock on our door.
Excess fees and taxes and petty inspections loaded with fines are killing our bottom lines.
We must band together with groups like ACTION (in Santa Monica) and AAGLA (in Los Angeles) or other associations to protect ourselves from big government abuses. they are the few who can fight the fight with/for/together so we do not get overwhelmed.
Sincerely
Keith Lambert
Wednesday, September 07, 2011
How the 1031 Exchange Affects Income Property Investors
Section 1031 of the Internal Revenue Code has been called the single greatest wealth building tool available to real estate investors. If you are unaware how Section 1031 of the IRC can magnify your returns and help you create wealth, review this:
The effect taxes have over the long term are dramatic. I suggest having performing real estate in your portfolio.
If you want to invest in secure West Los Angeles multifamily or commercial property please consider using my services to aquire/manage/sell as needed.
Sincerely Keith Lambert
310-391-0821
An investor who purchases $100K worth of Microsoft stock in 2000 sells the stock today for $200K. The investor yields a whopping 100% return, correct? Well yes, but don’t forget that when tax time comes around, our Microsoft investor will owe the IRS and State Taxing Authority about $30K. After taxes, the profits from the Microsoft investment plummets from $100K to $70K. Still not a bad return, but after taxes our Microsoft investor now has only a total of $170,000 to reinvest.
Now let’s contrast this with an investor who makes the same returns in the real estate market. A property purchased for $100K, appreciates to $200K. The investor earns the same $100% return. The major difference however, is the investor can elect a 1031 Exchange and defer the capital gains taxes. Doing so leaves the investor with a total of $200K to reinvest.
The effect taxes have over the long term are dramatic. I suggest having performing real estate in your portfolio.
If you want to invest in secure West Los Angeles multifamily or commercial property please consider using my services to aquire/manage/sell as needed.
Sincerely Keith Lambert
310-391-0821
Monday, April 25, 2011
2 bedroom for rent - Santa Monica
I have rented several of our places in the last few months. Most rather swiftly.
Then there is this one...
http://www.hotigloos.com/viewlisting.php?id=20325261
or http://www.postlets.com/rts/5192161 for the info on it.
This unit is lagging on the market for some reason. It is not the price that is turning people away. It is the same features that rented upstairs (two recently and for far more monthly rent).
Was it the barking dog next door that made so many take a pass on this really nice unit?
Does that mean the only potential resident will be one with a barking dog themselves?
Not very happy about this turn of events.
KL.
Then there is this one...
http://www.hotigloos.com/viewlisting.php?id=20325261
or http://www.postlets.com/rts/5192161 for the info on it.
This unit is lagging on the market for some reason. It is not the price that is turning people away. It is the same features that rented upstairs (two recently and for far more monthly rent).
Was it the barking dog next door that made so many take a pass on this really nice unit?
Does that mean the only potential resident will be one with a barking dog themselves?
Not very happy about this turn of events.
KL.
Thursday, January 27, 2011
Pets and Apartment renting...
Pets are a new thing for many of the apartment buildings on the west side of Los Angeles. Allowing pets enables us to capture more tenants/clients that we used to be able to turn away. Now we need them to fill our vacancies.
Some points to ponder:
- Pet Deposits are often to low. (carpet - woodwork etc. cost big bucks)
- Staying up on the maintenance of the pet must be reinforced. (over time)
- Keeping the rest of the residents from assuming they all are now allowed to have a pet is the worst part. (they see it as favoritism. We see it as contract law.)
I've seen ... Snakes, Iguana, Birds, Dogs, Cats.
Snakes... Food is mice. What if some mice get out?
Iguana... food is crickets. They will be all over eventually. chirp chirp chirp in the neighbors kitchen etc.
Birds... Squawking (big) or pooping on the curtains (little).
Cats... Indoor is usually ok. Outdoor is not. (bring home mice to your building)
Dogs... Little ones yap. Very big ones frighten the other residents.
This can be a long list.
Just remembered the Ferret... Now that is a story. he he he
Keith
www.Lambertinc.com
Property management in Santa Monica, Los Angeles, Venice
Some points to ponder:
- Pet Deposits are often to low. (carpet - woodwork etc. cost big bucks)
- Staying up on the maintenance of the pet must be reinforced. (over time)
- Keeping the rest of the residents from assuming they all are now allowed to have a pet is the worst part. (they see it as favoritism. We see it as contract law.)
I've seen ... Snakes, Iguana, Birds, Dogs, Cats.
Snakes... Food is mice. What if some mice get out?
Iguana... food is crickets. They will be all over eventually. chirp chirp chirp in the neighbors kitchen etc.
Birds... Squawking (big) or pooping on the curtains (little).
Cats... Indoor is usually ok. Outdoor is not. (bring home mice to your building)
Dogs... Little ones yap. Very big ones frighten the other residents.
This can be a long list.
Just remembered the Ferret... Now that is a story. he he he
Keith
www.Lambertinc.com
Property management in Santa Monica, Los Angeles, Venice
Tuesday, January 18, 2011
lending... What makes the R.E. World go round.
You know the old song... "Money makes the world go 'Round"
Without lending the real estate world will not go around very much. It is possible to get loans. They do really put the lender through the ringer nowdays. If they fund at all.
So what rate do we put into the calculations as we evaluate the loan portion of the buy - don't buy evaluation. that oh so nebulous "Does it make Seance" that I hear all the buyers ask. Do i pencil it or work out detailed spreadsheets?
I'm a bit geeky so you know the answer to that. But the Loan rates...
This came in on my email today. Looks rather good. Market still getting really nice rates. But will they loan on your building. Lets find out.
Call me to review your criterion for buying an apartment building
Keith
310-391-0821
Without lending the real estate world will not go around very much. It is possible to get loans. They do really put the lender through the ringer nowdays. If they fund at all.
So what rate do we put into the calculations as we evaluate the loan portion of the buy - don't buy evaluation. that oh so nebulous "Does it make Seance" that I hear all the buyers ask. Do i pencil it or work out detailed spreadsheets?
I'm a bit geeky so you know the answer to that. But the Loan rates...
This came in on my email today. Looks rather good. Market still getting really nice rates. But will they loan on your building. Lets find out.
Call me to review your criterion for buying an apartment building
Keith
310-391-0821
Tuesday, November 09, 2010
Know The Difference Between Solvable Problems And Livable Constraints - Thoughts on Change
Interesting Quote came across my desk today.
so Financing is a Constraint.
Many of the features of the landscape around the property is a constraint.
Knowing how to solve a problem or adjust a feature is another thing. How we reach a new renter base or reconfigure to get more revenue streams are the higher and better solutions or better end results that enhance property values.
With local knowledge and an overall big picture view we can tap onto those new options. Sometimes by changing simple things like renting it furnished. Or other times by not so easy things that take years of working with the city.
Rewards for the investor comes to those who see a positive change and goes after it.
Email or Call if you want to pursue a positive future in the local Los Angeles Real Estate marketplace. There are some changes coming to the area.
Let's tap one for you.
Sincerely,
Keith Lambert
310-391-0821
"A problem is solvable. A constraint must be lived with. The art is in telling them apart.
For years, Apple viewed retail distribution as a constraint. They had to live with cranky independent computer stores, or big box mass merchants that didn't display or sell their products well. Using the internet and then their own stores, they eventually realized that this was actually a problem that could be solved.
On the other hand, there are countless entrepreneurs who believe they can solve problems relating to funding or technology that are out of reach given their scale or background. They'd be better off if they accepted them as constraints and designed around them."
- Seth Godin, from Seth Godin's blog
so Financing is a Constraint.
Many of the features of the landscape around the property is a constraint.
Knowing how to solve a problem or adjust a feature is another thing. How we reach a new renter base or reconfigure to get more revenue streams are the higher and better solutions or better end results that enhance property values.
With local knowledge and an overall big picture view we can tap onto those new options. Sometimes by changing simple things like renting it furnished. Or other times by not so easy things that take years of working with the city.
Rewards for the investor comes to those who see a positive change and goes after it.
Email or Call if you want to pursue a positive future in the local Los Angeles Real Estate marketplace. There are some changes coming to the area.
Let's tap one for you.
Sincerely,
Keith Lambert
310-391-0821
Monday, October 18, 2010
My Best Apartment in Santa Monica for a Discriminating Beach Lover!
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Monday, September 20, 2010
Santa Monica's Smokers must retreat to indoors
They Live in "la-la land" in Santa Monica City Hall
Santa Monica's Smokers must retreat to indoors because of new ordinance
New Laws are in Affect.. see www.SMDP.com - SM Soking_ban_takes_effect_today
So all of Santa Monica's Anti Smoker residents can now sue each smoker for fouling the air. And all property owners and managers have to take on an extra burden to publish the information to the tenants.
OK then the smokers will get themselves declared a protected class as they are "Disabled" and must give in to their addiction. Since they can not stop themselves and therefor not liable to the other hostile tenant. Then the rental property owner who was providing a needed service (housing) is now the new victim as they both sue the housing provider. One for protection as a Disabled renter. One for maintaining unsafe housing near a smoker.
I see dreaded litigation ahead. Santa Monica is leading ahead of the curve and making trouble for many. Are you OK with the city outlawing everything?
Smokers are prosecuted by Anti Smokers. What is next? Surly it is not an Anti Pot Smokers of Santa Monica group doing this. Now I have to notice tenants of their right to sue each other over smoking on balconies.
Personally I do not care what they smoke. The real results that affect me is that this rule forces all smokers inside, the only space left. I just have to scrape the tar and nicotine goo off of the walls and ceilings before we clean and paint between tenants. Uggh Ugly.
IMHO We housing providers can handle this. But it can get out of hand in the future.
Working to protect your RE Assets
Keith Lambert
MEANING: noun,
1. A place or a state of being out of touch with reality.
2. A place known for frivolous activities.
ETYMOLOGY:
Finally, a fictional land that is named after a real place. The term la-la land is coined from the initials of the city of Los Angeles, home of Hollywood, alluding to the fictitious nature of the movies, sets, etc.
Santa Monica's Smokers must retreat to indoors because of new ordinance
New Laws are in Affect.. see www.SMDP.com - SM Soking_ban_takes_effect_today
So all of Santa Monica's Anti Smoker residents can now sue each smoker for fouling the air. And all property owners and managers have to take on an extra burden to publish the information to the tenants.
OK then the smokers will get themselves declared a protected class as they are "Disabled" and must give in to their addiction. Since they can not stop themselves and therefor not liable to the other hostile tenant. Then the rental property owner who was providing a needed service (housing) is now the new victim as they both sue the housing provider. One for protection as a Disabled renter. One for maintaining unsafe housing near a smoker.
I see dreaded litigation ahead. Santa Monica is leading ahead of the curve and making trouble for many. Are you OK with the city outlawing everything?
Smokers are prosecuted by Anti Smokers. What is next? Surly it is not an Anti Pot Smokers of Santa Monica group doing this. Now I have to notice tenants of their right to sue each other over smoking on balconies.
Personally I do not care what they smoke. The real results that affect me is that this rule forces all smokers inside, the only space left. I just have to scrape the tar and nicotine goo off of the walls and ceilings before we clean and paint between tenants. Uggh Ugly.
IMHO We housing providers can handle this. But it can get out of hand in the future.
Working to protect your RE Assets
Keith Lambert
Monday, June 28, 2010
2 bedroom apartment on the market
It happens rarely but it happens... We have a very cool 2 bedroom apartment for rent.
It is a good location and has 2 parking spaces. Wow.
Market rents for this area used to push up near $3,000 per month. Now at 2,500 to $2650 ish. This one was upgraded with better kitchen and has 2 parking so is worth $2750.
What will it rent for is to be seen. Make an offer quick if interested.
KBL 310-391-0821
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It is a good location and has 2 parking spaces. Wow.
Market rents for this area used to push up near $3,000 per month. Now at 2,500 to $2650 ish. This one was upgraded with better kitchen and has 2 parking so is worth $2750.
What will it rent for is to be seen. Make an offer quick if interested.
KBL 310-391-0821
Thursday, May 13, 2010
Poll in LA Business Journal on LA Rent Freeze
Please Vote on the LABusinessJournal.com Poll.
The big issue is for property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. Elected officials buying votes is another way to look at it.
The city of LA is thinking of no increase for this year as the economy is in turmoil. (or a freeze for 4 months to study it) But the bills have to be paid by the property owner. The city taxes on all the utils and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Why should the tenants with lower than market rents (Mkt rents in LA are down 18-20%) get a pass this year when the owner sorely needs every penny to keep up with rising costs.
Help send the message. Click on the link and cast a vote of "No" - Look for the poll in the lower right column.
Poll: "Should the Los Angeles City Council freeze any rent increases on rent-controlled apartments pending a study on the issue?"
www.labusinessjournal.com/
The big issue is for property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. Elected officials buying votes is another way to look at it.
The city of LA is thinking of no increase for this year as the economy is in turmoil. (or a freeze for 4 months to study it) But the bills have to be paid by the property owner. The city taxes on all the utils and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Why should the tenants with lower than market rents (Mkt rents in LA are down 18-20%) get a pass this year when the owner sorely needs every penny to keep up with rising costs.
Help send the message. Click on the link and cast a vote of "No" - Look for the poll in the lower right column.
Poll: "Should the Los Angeles City Council freeze any rent increases on rent-controlled apartments pending a study on the issue?"
www.labusinessjournal.com/
Rent Freeze issue for LA City Council - 2010
Dear Councilman Rosendahl,
Please vote No on the rent increase freeze topic coming before you. Even if it is just for a delay of a few months.
The big issue is property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. This does not affect the average tenant who is at or near Market. Especially tenants who have moved in the last year or who could move to a cheaper place as the market prices are cheaper than they were just 24 months ago. (Mkt rents in LA are down 18-20% across the west side. More inland.)
The thinking in favor of no increase for this year is the “economy is in turmoil.” But the bills have to be paid by the property owner. The city taxes on all the utilities and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Rental housing providers almost universally pay the Water and Sewer and Trash. That just went up!
Why should the tenants with lowest rents get a pass this year when the owner sorely needs every penny to keep up with rising costs? The reality is that for most hard working property owners and managers is to keep up with a shrinking bottom line. Each year we are falling behind. Less profitable year after year and more regulations and taxes and fees are heaped on our business.
The LARS Ordinance calls for a 3% minimum increase. It is typically set below CPI but above 3%. The rules call for an increase. The economy in Los Angeles is not in a dire emergency in which rental housing costs are spiking up and would justify such a hurtful move as to freeze rents extra low.
Please let all of the City Councilmen know that the freeze for the few lower rentals is a bad idea. Property owners really only have time value of the rental. Once that date is lost it is revenue lost forever. So every delay is a hit in our wallets.
It may seem a minor amount at 3% but it really adds up on the bottom line. This plan is just a taking from property owners their rightful revenue. We property owners are squeezed enough.
I provide a vital service to the community in helping people have good places to live. I am a rental housing provider. A business I am proud to be in. Call or email me if you want more information.
Thanks for considering this point on the topic.
Sincerely Keith Lambert
310-391-0821
Please vote No on the rent increase freeze topic coming before you. Even if it is just for a delay of a few months.
The big issue is property rights. Reduced rents in long term LA Rent Stabilized rentals is the real topic. This does not affect the average tenant who is at or near Market. Especially tenants who have moved in the last year or who could move to a cheaper place as the market prices are cheaper than they were just 24 months ago. (Mkt rents in LA are down 18-20% across the west side. More inland.)
The thinking in favor of no increase for this year is the “economy is in turmoil.” But the bills have to be paid by the property owner. The city taxes on all the utilities and services are not waved or frozen. Property owners still must pay the bills for all sorts of things and their prices are not frozen at lower rates. Rental housing providers almost universally pay the Water and Sewer and Trash. That just went up!
Why should the tenants with lowest rents get a pass this year when the owner sorely needs every penny to keep up with rising costs? The reality is that for most hard working property owners and managers is to keep up with a shrinking bottom line. Each year we are falling behind. Less profitable year after year and more regulations and taxes and fees are heaped on our business.
The LARS Ordinance calls for a 3% minimum increase. It is typically set below CPI but above 3%. The rules call for an increase. The economy in Los Angeles is not in a dire emergency in which rental housing costs are spiking up and would justify such a hurtful move as to freeze rents extra low.
Please let all of the City Councilmen know that the freeze for the few lower rentals is a bad idea. Property owners really only have time value of the rental. Once that date is lost it is revenue lost forever. So every delay is a hit in our wallets.
It may seem a minor amount at 3% but it really adds up on the bottom line. This plan is just a taking from property owners their rightful revenue. We property owners are squeezed enough.
I provide a vital service to the community in helping people have good places to live. I am a rental housing provider. A business I am proud to be in. Call or email me if you want more information.
Thanks for considering this point on the topic.
Sincerely Keith Lambert
310-391-0821
Thursday, April 22, 2010
Market - great for buyers
As I review the apartment buildings on the market I see a lot of better and better returns available.
If you, like me, prefer the positive cash flow of an apartment building to the other types of passive income out there searching for your investment capital then please give me a call. I'll happily share the ones that I like in the West Los Angeles market.
The local area is still holding strong in the rental market. Sure with the market downturn the price of an apartment may be a little more flexible. But not off my much. Apples to Apples rents on the few units that do turn over are maybe down 12 to 18 %. But that does not mean you can not make the bills and have a good positive cash flow.
With the right amount of down payment you can win an excellent return and cash flow.
Let me know what you like.
Keith Lambert
310-391-0821
If you, like me, prefer the positive cash flow of an apartment building to the other types of passive income out there searching for your investment capital then please give me a call. I'll happily share the ones that I like in the West Los Angeles market.
The local area is still holding strong in the rental market. Sure with the market downturn the price of an apartment may be a little more flexible. But not off my much. Apples to Apples rents on the few units that do turn over are maybe down 12 to 18 %. But that does not mean you can not make the bills and have a good positive cash flow.
With the right amount of down payment you can win an excellent return and cash flow.
Let me know what you like.
Keith Lambert
310-391-0821
Saturday, March 27, 2010
Single Family Home - Open on Sunday 12-3 pm
Sunday from 12 noon to 3 pm. Come preview this nice family home.
House and Guest House in the Culver City Zip on the Mar Vista boarder.
Great upgrades to the home make it a very good deal.
Keith
310-398-3272
House and Guest House in the Culver City Zip on the Mar Vista boarder.
Great upgrades to the home make it a very good deal.
Keith
310-398-3272
Monday, March 22, 2010
Passage of the Healthcare Bill will have impacts on the markets.
"I WILL ACT NOW. I WILL ACT NOW. I WILL ACT NOW. " Og Mandino. And wondering what kind of action will happen on Healthcare reform was certainly on everyone's mind last week. But what does this mean for the markets and home loan rates?
Traders have been watching the debate closely, and it's possible that passage of the Healthcare Bill could have a negative impact on the Stock market. If this is the case, there could in turn be a positive outcome for Bonds and home loan rates.
But that's not the only action traders were keeping an eye on last week. Tuesday's meeting of the Federal Open Market Committee offered little surprise, with no change to the Fed Funds Rate, which is the rate banks charge each other for lending overnight, or the language describing that the Fed Funds Rate would remain "exceptionally low for an extended period of time."
While there is growing and well-warranted concern that continuing to keep rates low will lead to inflation down the road...and remember, inflation is the arch enemy of bonds and home loan rates...it does appear that inflation is subdued at present. Last week's reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.
And there were additional headlines last week on other possible action that could impact Bonds and home loan rates negatively. Both Fitch Ratings and Moody's have stated that the US has moved substantially closer to losing its AAA credit rating. This would be a very bad turn of events, as it would cost the US a lot more money in interest payments, by way of higher rates, to attract new investors to buy our Bonds. And higher rates on Treasuries would influence home loan rates higher as well.
Bonds were able to improve above important technical levels in the middle of the week, but were unable to hang on to these improvements. As a result, Bonds and home loan rates ended the week about the same as where they began.
The action during Sunday's healthcare vote will almost certainly impact the markets in the coming week, and there is also a full slate of economic reports to watch for. First up, there will be a double-dose of housing news with Tuesday's Existing Home Sales Report and Wednesday's New Home Sales Report.
Also, on Wednesday we'll get a read on the health of the economy with the Durable Goods Report, which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time. Friday will bring another read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.
Not to be missed will be Thursday's weekly Initial Jobless Claims Report. While last week's initial claims were essentially inline with expectations, the ugly component of the report was the 5,888,048 people collecting EUC (Emergency Unemployment Compensation) benefits. This is a 360,000 person increase from the prior week. It easily could have been far worse. The labor market continues to be weak. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
If the employment and local real estate market continue to improve, as they have in some ways, we will see some improvement in the feel for the economy. The ever elusive "consumer confidence" level that we hear about from time to time.
If you or someone you know would like to learn more about buying a home, have them give me a call.
Keith Lambert
310-398-3272
Traders have been watching the debate closely, and it's possible that passage of the Healthcare Bill could have a negative impact on the Stock market. If this is the case, there could in turn be a positive outcome for Bonds and home loan rates.
But that's not the only action traders were keeping an eye on last week. Tuesday's meeting of the Federal Open Market Committee offered little surprise, with no change to the Fed Funds Rate, which is the rate banks charge each other for lending overnight, or the language describing that the Fed Funds Rate would remain "exceptionally low for an extended period of time."
While there is growing and well-warranted concern that continuing to keep rates low will lead to inflation down the road...and remember, inflation is the arch enemy of bonds and home loan rates...it does appear that inflation is subdued at present. Last week's reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.
And there were additional headlines last week on other possible action that could impact Bonds and home loan rates negatively. Both Fitch Ratings and Moody's have stated that the US has moved substantially closer to losing its AAA credit rating. This would be a very bad turn of events, as it would cost the US a lot more money in interest payments, by way of higher rates, to attract new investors to buy our Bonds. And higher rates on Treasuries would influence home loan rates higher as well.
Bonds were able to improve above important technical levels in the middle of the week, but were unable to hang on to these improvements. As a result, Bonds and home loan rates ended the week about the same as where they began.
The action during Sunday's healthcare vote will almost certainly impact the markets in the coming week, and there is also a full slate of economic reports to watch for. First up, there will be a double-dose of housing news with Tuesday's Existing Home Sales Report and Wednesday's New Home Sales Report.
Also, on Wednesday we'll get a read on the health of the economy with the Durable Goods Report, which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time. Friday will bring another read on the economy with the Gross Domestic Product Report, which is the broadest measure of economic activity.
Not to be missed will be Thursday's weekly Initial Jobless Claims Report. While last week's initial claims were essentially inline with expectations, the ugly component of the report was the 5,888,048 people collecting EUC (Emergency Unemployment Compensation) benefits. This is a 360,000 person increase from the prior week. It easily could have been far worse. The labor market continues to be weak. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.
If the employment and local real estate market continue to improve, as they have in some ways, we will see some improvement in the feel for the economy. The ever elusive "consumer confidence" level that we hear about from time to time.
If you or someone you know would like to learn more about buying a home, have them give me a call.
Keith Lambert
310-398-3272
Friday, March 19, 2010
3 headlines that together say something good.
3 LA Times headlines all on page B2 send a good signal. – “Home Prices Rise 11.2% in the state” “First Time Jobless Claims Decline slightly; Inflation Remains in Check” and “30 year Fixed Rates Edge Up” – Now that looks like the light at the end of the tunnel I was hoping to see. This is the combination that signals a good move in the real estate marketplace.
If enough people see the light at the end of the tunnel then it will happen. We will all feel the relief of the market slowly recovering. I feel that the interest rates need to rise just a little to make the buyers get off the fence and get the cheaper money before it drays up or gets more expensive to borrow.
IMHO
Keith Lambert
www.REList.net
If enough people see the light at the end of the tunnel then it will happen. We will all feel the relief of the market slowly recovering. I feel that the interest rates need to rise just a little to make the buyers get off the fence and get the cheaper money before it drays up or gets more expensive to borrow.
IMHO
Keith Lambert
www.REList.net
Tuesday, February 23, 2010
Westside Real Estate in Review - 2009 RE info on Single Family Homes
Westside Real Estate in Review
The above review is useful. I agree with the last paragraph. But maybe it would be more useful if it also listed the lowest sale! LOL
Keith
The real estate market from late 2008 through the fall of 2009 was characterized by uncertainty and falling real estate prices over those many months. Below you will find information accumulated from the Multiple Listing Service provides an overview of the sales activity of 2009.
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Venice - 120 houses sold with an average days on market (DOM) of 76 days. The average price per square foot was $656/ft down from $784/ft from the prior year. The highest sale was 1311 Abbot Kinney Blvd which sold for $5,600,000.
Palms/Mar Vista - 235 houses sold with an average DOM of 55 days. The average price per square foot was $481/ft down from $531/ft the prior year. The highest sale was 4056 Marcasel Avenue which sold for $2,500,000.
Santa Monica - 188 houses sold with and average DOM of 72 days. The average price per square foot was $744/ft down from $835/ft the prior year. The highest sale was 703 Palisades Beach Road which sold for $6,500,000.
Brentwood - 217 houses sold with an average DOM of 94 days. The average price per square foot was $767/ft down from $969/ft the year before. The highest sale was 25 Oakmont Drive which sold for $15,150,000.
Pacific Palisades - 197 houses sold with an average DOM of 96 days. The average price per square foot was $678/ft down from $835/ft the year before. The highest sale was 1730 San Remo Drive which sold for $14,500,000.
Marina Del Rey - 25 houses sold with an average DOM of 121 days. The average price per square foot was $460/ft down from $542/ft the year before. The highest sale was 143 Voyage Mall which sold for $2,275,000.
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Bank real estate lending policies have become very restrictive in 2009, especially when borrowing for homes selling for more that $1 million dollars. Loan applications are getting much more scrutiny. Inventories of homes grew from January into the summer months, including higher end properties putting downward pressure on prices.
Buyers are being extremely selective and in many cases were looking for "a deal" and those deals were out there. Westside properties were not immune to the downturn, though when compared to the San Fernando Valley and other neighboring areas real estate prices did not fall nearly as far.
Now, with interest rates at or near historic lows, we are seeing prices for Westside real estate firming. We have been witnessing a large reduction of available inventory on the Westside which, in some cases is pushing pricing upward especially for homes in good neighborhoods and priced under one million dollars.
The above review is useful. I agree with the last paragraph. But maybe it would be more useful if it also listed the lowest sale! LOL
Keith
Tuesday, December 15, 2009
Happy Holidays
Here in our area we have some cool holiday traditions. There is a Boat Parade out in the Marina Del Rey harbor that is fun. But at night hard to get a lot of good photos.
In Venice on the canals there is a simular parade but on the smaller scale.
Here are some photos to share. ( Thanks to YoVenice.com )
In Venice on the canals there is a simular parade but on the smaller scale.
Here are some photos to share. ( Thanks to YoVenice.com )
Monday, December 14, 2009
The Recession this far...
Last week brought some market action when Fed Chairman Ben Bernanke discussed the recession, commenting that our economic recovery still faces "formidable headwinds." As you can see in the chart below, the current recession we have been in has been the longest in nearly half a century.
Because negative economic comments or news causes money to flow out of Stocks and into Bonds, Bernanke's words helped Bonds and home loan rates to improve early last week...but these improvements were short lived.
Bond prices and home loan rates responded poorly to the Treasury auctions of last week, as the Treasury instruments being auctioned off are in direct competition with Mortgage Backed Securities...and the continual record amounts of supply hitting the market requires record amounts of buying to take place as well. And remember - the Federal Reserve is winding down their Mortgage Backed Security purchasing program, so as they stretch out and ration their remaining purchases through the first quarter of next year, the reduced amount of their buying just adds to the problem.
And as with any item, when there is lots of supply and diminishing demand - Economics 101 tells us that the price of that item will subsequently go down. So as Bond prices go down, home loan rates go up - and last week saw home loan rates increase by at least .125% across the board.
Also adding to selling pressure on Bonds in the latter part of last week were several bits of good economic news. First, the Retail Sales Report for November was better than expected, marking the third monthly increase over the past four months. It appears that lower prices and good deals are helping to spur some buying activity, though it remains to be seen how this will impact retailers' bottom lines. Consumer Sentiment was also reported quite a bit better than expected.
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Coming this week... Wednesday will also bring a read on the housing market with the Housing Starts and Building Permits Report, as well as the Interest Rate Decision and Policy Statement from the Fed, following the end of their regularly scheduled Federal Open Market Committee meeting. A change in rates isn't expected - but any comments about inflation in the Policy Statement could rattle Bonds and home loan rates.
Fingers crossed.
Keith L.
Because negative economic comments or news causes money to flow out of Stocks and into Bonds, Bernanke's words helped Bonds and home loan rates to improve early last week...but these improvements were short lived.
Bond prices and home loan rates responded poorly to the Treasury auctions of last week, as the Treasury instruments being auctioned off are in direct competition with Mortgage Backed Securities...and the continual record amounts of supply hitting the market requires record amounts of buying to take place as well. And remember - the Federal Reserve is winding down their Mortgage Backed Security purchasing program, so as they stretch out and ration their remaining purchases through the first quarter of next year, the reduced amount of their buying just adds to the problem.
And as with any item, when there is lots of supply and diminishing demand - Economics 101 tells us that the price of that item will subsequently go down. So as Bond prices go down, home loan rates go up - and last week saw home loan rates increase by at least .125% across the board.
Also adding to selling pressure on Bonds in the latter part of last week were several bits of good economic news. First, the Retail Sales Report for November was better than expected, marking the third monthly increase over the past four months. It appears that lower prices and good deals are helping to spur some buying activity, though it remains to be seen how this will impact retailers' bottom lines. Consumer Sentiment was also reported quite a bit better than expected.
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Coming this week... Wednesday will also bring a read on the housing market with the Housing Starts and Building Permits Report, as well as the Interest Rate Decision and Policy Statement from the Fed, following the end of their regularly scheduled Federal Open Market Committee meeting. A change in rates isn't expected - but any comments about inflation in the Policy Statement could rattle Bonds and home loan rates.
Fingers crossed.
Keith L.
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