Newsletter

May 2013

Beverly Hills Market Watch

Home Prices Rise for 13th Straight Month in March
May 7 2013 3:00PM Owners of Brentwood real estate might have seen their property values appreciate in March, as home prices posted a strong month. According to CoreLogic's Home Price Index report, prices jumped 10.5 percent on a year-over-year basis in March, the 13th straight month of gains and largest improvement in seven years. When compared to the previous month, prices were up 1.9 percent. Home prices are expected to continue to increase next month, as the Pending HPI predicts they will jump 9.6 percent year-over-year and 1.3 percent on a monthly basis in April. California posted the second highest appreciation at 17.2 percent, only trailing Nevada, which saw home prices rise 22.2 percent. "Home prices continue to rise at a double-digit rate in March led by strong gains in the western region of the U.S. Looking ahead, the CoreLogic pending index for April indicates that upward price appreciation will continue," said Anand Nallathambi, president and CEO of CoreLogic. Near-record-low mortgage rates have been a driving factor behind home price gains, as increased buyer demand is creating multiple offers on properties, driving up the sales price. To begin May, 15-year fixed-rate mortgages hit a new all-time low, according to Freddie Mac, which could help boost home values further for homeowners in Brentwood. THEMLS.com
Dear Friends, We were on a roll last month! We experienced a continued gradual improvement in rates throughout April, lowering rates by another 1/8% to %. The unemployment report issued last Friday put a stop to that trend, however. Rates have jumped % since then. This continued see saw movement in rates is nothing unusual. However, rate jumps like that are a reminder that significantly higher rates are on the horizon as the Federal Reserve is poised to stop buying Treasury Bonds and Mortgage Backed Securities soon. As the economy continues to gradually improve, the need of this economic stimulus will diminish. Doubtless, the end of QE3 will have a significant impact on mortgage rates (and stocks). The only question is the timing of the change in policy. With rate increases looming, it is worth to remember that the impact of low rates on the affordability of housing is very significant. Potential real estate sellers will realize that as mortgage rates move up, the value of their assets decline. The current combination of low rates and high demand for housing is a powerful incentive for potential sellers to make a decision to sell rather sooner than later!

Marco Pirozzolo Estates Agent

Cell: 310.975.5765 Office: 310.724.7100
marcopirozzolo@gmail.com www.marcopirozzolo.com

Nanette Marchand Estates Agent

Cell: 310.617.5564 Office: 310.724.7100
nanettemarchand1@gmail.com

www.nanettemarchand.com

Wondering How Much Your Home is Worth?

How has the price of your home changed in todays market? How much are other homes in your neighborhood selling for? If you're wondering what's happening to prices in your area, or you're thinking about selling your house, Well be able to help. Just give our office a call for a no-fuss, professional evaluation. We won't try to push you into listing with us or waste your time. Well just give you the honest facts about your home and its value. We can give you the inside scoop on what's happening in the housing market near where you live!

Stephan Wiederkehr
Broker Associate, South Bay Equity-Lending Direct: 310-872 9039 sbwiederkehr@gmail.com
From real estate to finances, construction to design, inside and out, Demo2Diamonds.com is a complete turnkey real estate investment operation which integrates each and every part of your property investment into one system. Were here to take your ideas and make them come to life.

1305 N Clark St
3 BR 4 Bth (Sunset Strip)

Ask Price: $2,250,000

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Newsletter
May 2013

Beverly Hills Market Watch

Golden State Designs Construction Co. Joins Demo2Diamonds Team
A home is a sacred and precious space. It is where lives form and forge ahead. It is where our families thrive and our memories dwell. The team at Golden State Designs (license # 884604) prides itself on understanding the homeowners visions and dreams and making them a reality all while taking into consideration time and budget constraints. They perform for their clients at the highest level of quality construction, and provide services at fair and market competitive prices. They believe in providing service and support to clients before, during, and after the construction experience. It is this trusted and familiar bond between client and contractor, that Golden State Designs has been able to fulfill their clients needs for the past thirteen years. Golden State Designs has established itself as a premier construction company in Southern California. Owner and founder, Gad Petel, has set out to be a unique contractor whose first priority is the client. In addition he has created a team that individually and collectively dedicate themselves to providing their cliental with exceptional workmanship, extraordinary service, and professional integrity. Mr.Petel also collaborates with Alan de la Rosa, director of sales & marketing. Both gentlemen share in the same values and beliefs as they forge new ways in which they can help homeowners protect the value and integrity of their home. Currently, Golden State Designs helps clients with both commercial and residential needs in regards to ground up construction, home remodeling, additions, and other traditional contracting repairs and services, but they also provide out-of-the-box services where they can serve as objective unbiased contracting consultants helping to guide home owners through various stages of a project. Should a homeowner already have existing construction that was built without a permit, Golden State Designs can go to the city on the homeowners behalf and obtain the necessary documentation to make the non permit construction valid; instantly adding value to your home. Golden State Designs are the certified applicators of Life Time Plus Paints, an exterior protective coating that will safeguard the outside of a property: never breaking down, repelling all water, and reflecting heat. The perfect measure to take on Southern California homestead. Golden State Designs is a clients contractor. If you have any contracting needs, concerns, or questions you can contact this personal hands-on company directly. With an initial free consultation, Golden State Designs will come to your home, listen to your ideas, designs, concerns, schedule, and budget. After obtaining all the necessary information, they will put together a proposal and give you the means to make your dream home a reality. Their toll free number is (888) 568-6630.

Economic Update
This week marked more good economic news. Real Estate related news began Tuesday when NAR reported March resale number of homes under contract rose 7% from March 2012. Case-Shiller, by far the most conservative on real estate, reported a year over year price increase for LA of 14.1% in their 20 major city report for February. I dont really know what this means as they don't state median (half are more, half are less), or average price. Its some formula they have for most homes and neighborhoods. Keep in mind the median was up 24% during that period! Based on what I am seeing 14% is low! Stocks soared today after a much stronger than expected jobs report. The economy added 165,000 nonfarm payroll jobs. The unemployment rate fell to 7.5%, a 4 year low. The DOW and S&P are on track to end the week up almost 2% and the NASDEQ up 3.3%. Finally, this is starting to shape up as what a recovery looks like! Stocks also were up with the S&P500 ending the month of April at a record high. The major markets
finished April with the DOW up 13.3, NASDEQ up 10.2% and S&P up 12% for the year. This run up has been a result of higher than expected earnings, dropping unemployment, robust home sales, rising home prices, dramatically fewer foreclosures, and rising consumer confidence. As the economy improves, demand for loans increases, and interest rates rise. Rising rates, in turn, drive down the price of bonds. The yield hit 1.75% today as investors jumped into stocks and out of bonds. Minutes from the Federal Reserve meeting last month indicated that policymakers seemed headed to winding down their bond purchasing before a weak March jobs report took them by surprise. They will continue purchases of Treasurys and agency mortgage backed securities until the outlook for the labor market has improved. If the outlook for labor market conditions improve as anticipated, the Fed will then decrease purchases of massive bond buying in the year and stop them by year-end. If the Fed does in fact try to pull-out and exit the $85 billion bond buying program because the program has either been deemed a success or has become ineffective, it is possible the Fed will face many unintended consequences. Syd Leibovitch, Rodeo Realty

This newsletter and any information contained herein are intended for general informational purposes only and should not be construed as legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek competent professional advice and/or legal counsel with respect to any matter discussed in this newsletter.

THIS NEWSLETTER IS NOT INTENDED TO SOLICIT PROPERTIES CURRENTLY FOR SALE .

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