Zillow and Trulia, two competing online real estate listing services, are now joining forces to create one online real estate listing database behemoth. Both services provide current listings on single-family and multi-family properties that are represented by agents and brokers. Uniquely, Zillow offers users the preference to search for properties labeled as “For Sale by Owner.”

Zillow has agreed to purchase Trulia in a $3.5 billion all-stock deal. While the announcement for the deal was made this past Monday, the merge will complete next year. Both Zillow and Trulia will maintain their names and respective websites. The two companies will also retain their CEOs – Pete Flint of Trulia and Spencer Rascoff of Zillow.

The most significant driving factor behind the deal is the advertising revenue generated by both services. Zillow and Trulia thrive through their placement of ads on their websites. Crucially, in regards to real estate marketing, “the combined revenue of both companies represents less than 4% of the estimated $12 billion that real estate professionals spend on marketing.” The boards of both companies hope that a combined service will be an enticing model to showcase advertisers.

Source: http://www.usatoday.com/story/money/business/2014/07/28/zillow-trulia-acquisition/13260727/

Current California foreclosure numbers are exhibiting the same low level as the market in 2005. Fourth quarter numbers for 2005 were the last lowest level for foreclosures in the state – a total of 15,337 defaults recorded. The overall amount of defaults in California reached their highest levels in recent years during 2009; the first quarter saw 135,431 defaults filed.

DataQuick notes that lenders issued a total of 17,524 defaults to Southern California property owners who are severely behind on their payments. This exhibits a 32 percent drop from the second quarter of 2013, as well as a 9 percent drop from the first quarter. Foreclosures fell by 33 percent to 3,836 properties in Los Angeles County and 29 percent to 1,543 properties.

These latest statistics prove that homeowner distress is diminishing. Foreclosure numbers are falling, the economy continues to strengthen, and home prices are on the rise.

Source: http://www.dailynews.com/business/20140717/foreclosure-activity-in-california-remains-at-8-year-low

Los Angeles County apartment tenants are having a harder time keeping up with rent increases due to stagnant income growth. This creates pressure for landlords who wish to increase rents. Real estate data firm Reis Inc. reports that the average price for an apartment in LA County reached $1,471 for the second quarter of this year.

Adjusted for inflation, Southern California’s median household income has dropped 11 percent since 2007. Reassuringly, this region has benefited from gaining back most of the jobs lost during the recession. However, because of slowing income growth, households (especially those in the lower-income bracket) are forced to remain as renters. Housing prices have continued to climb over the last two years whether one is looking to rent or buy.

Vacancy rates in the Southland remain at a low three percent, with tenants electing not to move up due to not having additional funds. Despite this trend, certain areas in Los Angeles are still seeing rental price hikes. Similar to Silicon Valley and San Francisco, the areas of Santa Monica and Venice are experiencing a tech boom with industry professionals able to afford increasing rents. The majority of renters have median household incomes of $40,000, which does not leave much room for housing expenses. According to a report filed by Harvard University’s Joint Center for Housing Studies, 33 percent of Southland renters spend at least half of their income on rent. Tenants are struggling to cut other aspects of their costs to compensate

Source: http://www.latimes.com/business/la-fi-apartment-rents-20140703-story.html