2015 Housing Forecast

According to Freddie Mac economists, the following projections in housing for 2015

1. Mortgage rates: Interest rates will likely be on the rise next year. By next year, Freddie projects mortgage rates to average 4.6 percent and inch up to 5 percent by the end of the year.
2. Home prices: Continued house-price appreciation and rising mortgage rates will dampen affordability for home buyers. Historically speaking, that's moving from 'very high' levels of affordability to 'high' levels of affordability.
3. Housing starts: Homebuilding is expected to ramp up in the new year, projected to rise by 20 percent from this year. That will likely help total home sales to climb by about 5 percent, reaching the best sales pace in eight years.
4. Single-family originations: Mortgage originations of single-family homes will likely slip by an additional 8 percent, which can be attributed to a steep drop in refinancing volume. Refinancings are expected to make up only 23 percent of originations in 2015; they had been making up more than half in recent years.
5. Multi-family mortgage originations: Mortgage originations for the multi-family sector have surged about 60 percent between 2011 and 2014. Increases are expected to continue in 2015, projected to rise about 14 percent.

Metropolis - The Numbers Are Out

Those of you who are privy to the highly anticipated Metropolis development have been inquiring about pricing, and rightly so. But pricing wasn't available until now. With floorplans and features being solidified as we speak, these are luxury condos are expected to rival the Residences at the Ritz Carlton, but with even more amenities according to inside sources.

Prices for the first phase will begin in the low $500s and go up to around $3MM for the penthouses. Even though there's still time until completion (ETA is 2016!), the interest has been through the roof with hundreds on the waitlist, deposits and all. Waitlisters get first dibs on the floorplan/unit among other perks, and of course the deposit is refundable if you don't move forward. Send me an email if you'd like to get on the waitlist or to find out more about the Metropolis: yuri@sartparker.com.

The Thing About Pricing to Sell...

We're approaching a slow time in downtown. Holidays are near, people are resolving to look again next year, and inventory is low. This also means that properties are sitting on the market longer. And when properties sit, it doesn't look good. Which is when price drops happen. And that gives buyers hope that prices can be dropped even further. Moral of the story if you're putting your place on the market? Know the cycles of real estate, and price accordingly.

Median Price from Sep 2013 vs Sept 2014

Stats are out: The median home price in California was $428,290 back in September 2013. The median home price in September 2014 was $460,940. That's a 7.6 percent increase. And need I say again that interest rates are at an unprecedented low?

For DTLA Homeowners Considering Selling: What Are Buyers Looking For?

Despite low inventory, buyers expect a lot for their money. If you're considering selling your place, the asking price should take these buyer requests into consideration. In my experience working in downtown, these are the things buyers are looking for, in order of importance. If you're planning on buying a condo, then these things should also be taken into consideration as they may impact the price when you re-sell the place.

1. Lots of natural light
2. Higher floor in the building
3. Views of the skyline, city lights, and/or mountains
4. Parking included (whether assigned or deeded)
5. Walkable and safe
6. Low HOA dues
7. Outdoor amenities such as a pool, deck or garden, or gym
8. Private outdoor space such as a patio or balcony
9. Front desk security/doorman/package service
10. In-unit washer & dryer

Call or email me for a free opinion of value. yuri@sartparker.com or 310-869-2655.