WINTER 2008 – THE STATE OF REAL ESTATE IN 2008
COMMERCiAL REAL ESTATE MARKETPLACE
SOLID FUNDAMENTALS
BUT SLOWING INVESTMENT ACTIVITY

OVERVIEW

Experts say this is a good market for investors seeking opportunities for properties with good longer-term income stream projections rather than short term price appreciation…
 
The National Association of Realtors Commercial division notes three trends in commercial real estate that dominated 4Q 2007:

  1. The credit crunch that is still impacting the residential sector began to influence the ability of many commercial property investors to get funding.
     
  2. While investment activity has fallen off noticeably since August of this year, the fundamentals have remained relatively healthy.
     
  3. Both the Commercial Leading indicator (CLI) and the SIOR Index clearly point to a general slowing in the pace of commercial real estate activity.
THE RESIDENTIAL REAL ESTATE PHILoSOPHY
– WAIT IN 2008?
Southern California home sales and prices tumbled in 2007…and the housing frost is not likely to thaw in spring.

Financial pundit Jim Cramer of the NBC show Mad Money, does not expect the housing market to improve until after the presidential elections.

20/20 hindsight – economists now widely agree that housing prices were inflated by the easy availability of mortgage loans to people who would not qualify under normal market conditions.

And now all property owners are feeling the effects of an overactive marketplace. The median sales price for Southern California houses and condominiums in December was $425,000, down from $435,000 in November and 16% below the peak of $505,000 set last year, according to DataQuick Information Systems.

Experts say that the low median sales prices indicate a drop in more expensive homes typically financed with "jumbo" mortgages greater than $417,000. Only 22%  of sales financed with jumbo mortgages in December, as compared to August, when 40% of Southern California home purchases were financed with such mortgages.

More statistics: the number of homes sold in SoCal in December 2007 fell 45% from a year earlier, - a level DataQuick noted as being "by far the lowest" December home sales number since the firm began its data analysis in 1988.

The declining sales and prices continue a downturn that began last spring. The drop has been augmented by the subprime fallout which offered easy availability of mortgage loans to people who could not afford the payments.
Winter at the beach
TIDBITS
What's the Cost of Going Solar?
LIGHT RAIL UPDATE
EXPOSITION LINE TIMELINE


Population on the Westside has risen 23% since 1990 (compared to a 6% increase for LA). However, only 30% of Westside workers live in the area, which means more than 300,000 people commute here each day. The Exposition Corridor project is key to increasing mobility and reducing congestion.

FINDING VALUABLE OPPORTUNITIES IN A
SLOW REAL ESTATE MARKET
You’re smart, you know the score. Statistics show real sales in Southern California are down close to 50%. If you’re a property investor – opportunities currently abound. Properties are sitting on the market. A motivated seller is more open to negotiation in a soft market like this one that we’ll be sitting in until after the elections. Add increased motivation to continual low interest rates — and in the right situation, there are deals to be had. If you’re thinking about investing in real estate, think like the seasoned pros, keep these five ideas in mind:
GREAT OPPORTUNITY FOR 9 UNITS
ON THE WEST SIDE
1506 Barry Ave., Los Angeles, CA 90025
featured properties:
Mixed Use In Santa Monica

CENTRALLY LOCATED INDUSTRIAL COMPOUND

FINE PROFESSIONAL OFFICE SPACE
FOR LEASE IN LOS ANGELES


LARGE COMMERCIAL BUILDING + LOT ON HIGH VISIBILITY CORNER IN INGLEWOOD

TRANQUIL RETREAT IN SHERMAN OAKS



www.SoCalGreenRealEstateBlog.com
Southern California Green Real Estate Blog
A Green Scrapbook
When it comes to planning Green is the operative word today. Our state, our cities, our residents are trying to become more economically efficient, but yet, no one is quite sure whose doing what.

www.SoCalGreenRealEstateBlog.com is a scrapbook of whose doing what when it comes to Greening California.

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If they’re snatching dogs in Chandler, AZ, perhaps we on the West Side should be aware of how to protect your pet…

Subject: Jack Russell Rescue of Scottsdale - Dog Snatching Ring in Chandler???

I try to keep you all advised of things that are going on in our area in the dog world. It appears that there may be a dog snatching ring operating in the East Valley near or in Chandler and surrounding areas. For more information, go to: http://news.nationalgeographic.com and read the whole article about Pima County. 

Santa Monica Real Estate Courtesy of Jodi Summers and Sotheby's International Realty

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