Crippling student loan debt continues to loom over would-be buyers causing them to delay the purchase of a first home. The troubling reality is that some borrowers may never be able to buy. On top of student loan debt, young home buyers have to worry about increases in home prices, much stricter lending standards, and an uncertain job market. The prevalence of good well-paying jobs necessary to pay off large loans in a timely manner is more difficult than ever to obtain.

Student loan debt has been identified as the main deterrent for first-time buyers. This is troubling for the real estate industry since part of it relies on these new home buyers to eventually turn into move-up buyers – people selling their first home in order to purchase a newer property. The new trend is to delay significantly before making that initial purchase.

First-timers in the marketplace dropped to just 28 percent in California, with 38 percent being the typical turnout. Before the recent recession, college graduates were seen as the class of people most likely to buy a new house since those who hold a degree have the chance at higher paying jobs. Now, there are more 30-year-old homeowners with student debt than those without it. Those new home buyers that do hold good jobs in this economy are setting goals to have purchasing power to handle a down payment, even if that timeframe has been pushed.

The office market in Los Angeles is witnessing a steady resurgence that is benefiting landlords. The overall Los Angeles vacancy rate dropped to less than a percentage point while monthly rents increased five cents per square foot.

The rental market for offices steadied in the aftermath of the recession, but growth in this sector has not reached the levels of past economic recovery periods. However, current vacancy rates have reached their lowest point since 2008. The first quarter of 2014 just came to a close, and the vacancy rate in the counties of Los Angeles, Orange, Riverside, and San Bernardino has dipped to 17.3 percent from 17.9 percent one year earlier. Landlords are now asking $2.36 per square foot in rents, which highlight the 5 cent increase.

Los Angeles has shown promising gains in occupancy for office space, but it is behind other markets, such as New York. Orange County had two big vacancies recently – Fisker Automotive and AT&T left their buildings – pushing the vacancy rate for this region to 15.4 percent. The housing market is improving in Orange county which is causing a turnaround for local mortgage and financial services companies, as well.

Source: http://www.latimes.com/business/realestate/la-fi-office-report-20140420,0,2807796.story#axzz2zXgkvV1P

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/