Southern California home foreclosure rates continued their decline for the month of March. There were a total of 8,438 foreclosures across all six counties in Southern California. This is a 23 percent drop from February figures. One in every 3,433 homes was in foreclosure during the month of March. Banks are now responding to foreclosures that have been put on hold due to an overwhelming new flood of foreclosure activity in recent months.

The foreclosure dips in the San Fernando Valley varied by area. Palmdale showed the highest numbers with one in every 438 homes entering foreclosure. The neighboring area of Lancaster also showed concerning numbers with one in every 438 homes entering foreclosure. More high figures include Sylmar (one in every 508 homes), Pacoima (one in every 582 homes), and Sunland (one in every 618).

San Fernando Valley communities with low foreclosure rates for March include Sherman Oaks (one in every 2,135 homes), Burbank (one in every 1,531 homes), and La Cañada-Flintridge (one in every 1,209 homes).

Source: http://www.sfvbj.com/news/2014/apr/10/home-foreclosures-fall/

The housing market in the San Fernando Valley, colloquially known as the Valley, remains slow continuing a trend from late last year. Distressed property sales are at a low, dropping 11 percent when comparing January 2014 numbers to those seen in the first month of 2013. Distressed property numbers, including short sales and foreclosures, are now diminishing. This January saw distressed properties account for only 15 percent of total property sales. This is a significant dip from 34 percent of total property sales for January 2013.

These changes indicate a potential return to a pre-recession status quo, influencing price improvements seen with houses and condominiums. The median home price that covers Toluca Lake through Calabasas grew to $485,000 this January from $420,000 in January 2013.

Default notices by lenders saw a rise of 41 percent this past January. Although this is cause for some alarm, default notices were at a high in 2012 and diminished significantly in 2013. This could prove to be a temporary surge. There is also a shortage of inventory that is hindering the number of sales. The current amount of homes and condominiums for sale are not allowing for a stabilized an even market. This can only be achieved a “six-month supply” pace while the market is lagging at just under a three-month supply pace.

A lot of people wonder what the responsibilities of a Property Manager is.

The Property Manager is the point of contact for the Landlord and the Tenants.

For vacant properties, it begins with leasing. Advertising, showing the space, then qualifying and reviewing potential renters applications. Once approved, the Property Manager prepares the lease and forwards for execution by the tenant. Some leases have additional paperwork attached, depending on the property and/or location.

Typically managers will do a walk through of the property prior to handing over the keys. Photographing or videotaping the property before the tenant takes possession, as well as once they vacate is important. Most good managers will also  document any deficiencies to the property, before & after the tenant is in possession.

Then once the tenant is in the space, the Property Manager becomes the point of contact for the tenant. The property manager handles complaints, maintenance requests, lease extensions, rent increase/reductions, notices to tenants, late fees etc… The manager collects all rents and disburse’s funds to the Landlords. Paying all the properties expenses (mortgage, property tax, insurance, etc…). Furthermore the Property handles the book-keeping for the property. This may include preparing financial statements, or monthly reports. In addition, the Property Manager performs routine walk throughs of the property, or drive-bys. Maintaining that the property insurance is up to date is also important.

A Property Manager alleviates all the day-to-day management responsibilities for landlords & investors of real estate.

Turnover in a rental complex is typically a cause for concern for landlords. However, turnover in a unit can often be a benefit. If a problem tenant previously occupied the unit, then landlords cannot wait for this person to be removed. Turnover is typically caused by a tenant deciding to move to a different type of residence or simply relocate to another city or state. This kind of turnover is uncontrollable, however, there are options to manage turnover and even control.

The national turnover rate in 2012 was set at 54 percent. This has proven to be a consistent figure since that year, with a single community needing to replace half of its occupants per year. Classical thinking would lead landlords to believe that a vacancy could still be filled at a higher rate. However, this is becoming increasingly difficult to do because of the economic downturn.

While one cannot stop someone from a desire to move to a new city, there are many strategies that landlords can use to aid in reducing turnover in their buildings. Residents need certain aspects of the place they live in to be maintained. There must some form of a “sense of community” between all residents (something that could prove difficult if the rental complex is just a building on a lot). If this proves difficult to establish, landlords should look to improve the appearance of their units and exteriors as much as possible. This means that they should either take the initiative and monitor the condition of these factors, or hire a competent on-site/off-site manager to routinely inspect these qualities. Residents also appreciate heightened safety and security in buildings. Perhaps above all, residents appreciate timely and dependable response from those managing the building. All of these factors are used by residents to determine the value of the property, as well as if they would like to remain where they are. Landlords are encouraged to instill some form of community rules and regulations to keep tenants pleased.

Source: http://www.aoausa.com/magazine/?p=1846

Rental housing demand continues to climb causing an increase in rents and denting the disposable income of Americans. The current rental vacancy rate – which is determined from the number of available units on the market that are unoccupied – dipped by half a percentage point to 8.2 percent in the final quarter of 2013. A peak was seen in 2009 at 11% rental vacancy, but this figure’s downturn could be blamed on the recession and the struggling housing market for that year range.

Families are turning to rentals for many concerning reasons. Many families were displaced because of rampant foreclosures. Lending standards were stricter for this period causing the inability of many families to obtain affordable mortgage packages. Others came to the conclusion that buying and maintaining a home is out of reach.

Demand for rental housing is high while supply is low causing landlords to increase prices. October through December 2013 saw a 3 percent hike in median asking rent for unoccupied units (up to $746 in 2013, as opposed to $724 in 2012). This rental rate high surpassed overall inflation for 2013, rising by double. Because of this, disposable income of citizens was hit considerably. Disposable income fell 0.2 percent in December 2013 from November – a second decline over a three-month period. Americans had to rely on savings money to satisfy their spending needs.

If rental prices continue to rise, this could encourage families to take the plunge and buy a home. The construction and development industries are also on the rise with more multifamily units, including mixed-use projects, being developed for 2014. Additionally, current homeowners should be encouraged to potentially sell their homes, due to the steady growth of the economy coupled with higher home prices. If these families move on to new home options, this would increase supply of housing for new buyers or buyers that have been scouring the market for some time. 

Source: http://blogs.wsj.com/economics/2014/01/31/rental-housing-grows-more-scarce-driving-rents-up/

The Mortgage Bankers Association (MBA) issued their latest weekly report, which showed a 4.7 percent increase in overall mortgage applications. This is a 4 percent increase from last week’s released report on an adjusted basis. Couple with this, unadjusted figures saw a 7 percent increase week-over-week.

The MBA also keeps a refinance index, which saw a 10 percent increase, and refinancing completions rose by 64 percent. Out of all of these new applications, 7 percent were for adjustable rate mortgages, which is down from percent from last week. This month saw the largest decrease in the average mortgage loan rate, which went down from 4.66 percent to 4.58 percent – the newest low since November 2013. Fifteen-year fixed-rate mortgages saw interest rates dip from 3.72 percent to 3.68 percent.

These interest rate decreases are of particular interest, since rates were rising from November 2013 into the New Year. However, the announcement made by the U.S. Federal Reserve to restrict an $85 billion per month bond-buying program they initiated played a major role in mortgage application lows. This change can only be a good sign for the housing market, and should build some momentum for the spring season.

Source: http://finance.yahoo.com/news/mortgage-applications-continue-rise-rates-154050646.html

The U.S. has been plagued with a foreclosure crisis for some time, but signs are surfacing that this period in the country’s history will soon be over for the time being.

A foreclosure is a shell term that includes default notices, auctions, and bank repossessions – all of these declined by 15% in November 2013. The total number of foreclosures for this month reached 113,454 properties. Total filings saw a 37% decline from 2012.

With the economy’s health improving steadily, and the FHA’s recent announcement of a shift in strategy to aid more homeowners in obtaining affordable mortgages, homeowners are now more optimistic. This renewed optimism is quelling foreclosures, partly because home prices are on the rise and owners are decided to keep their homes for the long run. Currently, markets where foreclosures are still relatively high include Florida, Delaware, Maryland, and South Carolina.

Source: http://money.cnn.com/2013/12/12/real_estate/foreclosure-low/index.html