Los Angeles Times - the muted market

This week I was quoted in The Los Angeles Times. I was interviewed by Dianne Wedner for a feature about the state of the real estate market today, as compared to a year ago. The article made the front page of this Sundays real estate section. Here is a snippet straight from the article: "It's pretty ugly out there," said longtime Coldwell Banker broker David Toyama, who specializes in Eagle Rock, Glassell Park, Highland Park and Azusa. His business is down 50% from a year ago, he said, "and that wasn't our best year either." Hope springs eternal, however, and spring typically is the season of highest hopes for buyers and sellers. Despite slumping consumer confidence and ever-worsening economic news, some hardy souls are venturing into the housing market, and not all of them are just looking.

As part of the story, one of our current listings on Townsend Avenue in Eagle Rock is also featured. Ben Manibog the listing agent was gracious enough to arrange for the reporter and photographer to sit thorough an open house of ours. The open house was well attended by 23 prospective buyers. The reporter was able to interview many of them first hand. The host for the open house, Denise Barnes was also interviewed. One of Denises recent buyers is also featured on the cover photo in front of their new home. The photo is captioned, "The usually bustling spring home sales season is quite restrained this year, but some hardy souls are buying."

Here are some interesting facts pulled from the article:

Deal sweeteners

Many buyers are on hold while awaiting that outcome. But with new and resale home and condo closings in Southern California down 41.4% in March from a year ago and the median price off 23.8%, at $385,000, some sellers and builders are luring buyers into the market with discounted prices and concessions, such as paying loan points, helping with closing costs and upgrading kitchen amenities or carpeting.In Los Angeles County, the March median home price fell 18.5%, to $440,000, from a year ago; in Orange County, 19.6%, to $506,000. The hard-hit Inland Empire saw values tank 27.1% and 28.2% in Riverside and San Bernardino counties, respectively. Meanwhile, sales in Los Angeles County plummeted 49%; in Orange County, 46.9%; and in Riverside and San Bernardino counties, 26.9% and 38.0%, respectively. Nearly 38% of existing Southland homes that sold in March were foreclosure resales -- houses sold after they were foreclosed on last year.By a widely used measure of inventory, there has been an average 8.3-month supply of homes on the market in Los Angeles County during most of the last two decades, according to the California Assn. of Realtors. That's how long it would take for the supply of homes to be sold at the prevailing pace. In February, that supply was 21.2 months, compared with 10.6 a year ago. It went as low as 1.1 months in December 2003.The market slide means bargains galore in areas hard hit by foreclosures, such as Hemet 92543 in Riverside County, where median prices plummeted 48%, to $130,000, during the first quarter this year, compared with the same period a year ago, according to DataQuick.

Agent Toyama recently brokered a sale in Baldwin Park in which the first-time buyers, stretching to afford the $325,000 home they wanted, were told by their lenders that they had to pay off some debt to get the green light for the loan.The sellers, eager to clinch the deal, paid a portion of the closing costs, freeing up money for the buyers to settle some of their debts. The sale went through. "When sellers tune out reality," said agent Adriana Toyama, David Toyama's wife, "I refuse their listing."

The article is a fresh current look into the real estate market on a typical Sunday in Los Angeles. I think you will find the information interesting and relevant. It is written from the most important perspective we can have right now, the home buying public. Here is the address to the article, or just click on the title above for the full article. I will try to post the article her at a later time.

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