Prediction of Price Growth Will Slow Down

2013 has been a rollarcoast in home prices and setting breaking levels in certain areas.  Many buyers are asking if this new trend is a bubble and will it end?  Let's take a look.

Since June of last year, home prices have rose by 11.9%.  On a seasonally basis (real estate has seasons) there was a 0.6% from May (spring) to June (summer).

According to Wall Street Journal's Nick Timiraos, prices will still rise but not as fast as this previous year.  This could mean that the 'bubble' everyone was asking about...isn't a bubble that will burst.

WHY????

Economists from Goldman Sachs Group offered three reasons why home price gains will be moderate:

1) Housing is no longer that cheap.  Prices in relations to incomes and that relation to rents - home prices are no longer "undervalued" as they did two years ago.  Recent home prices gains have put home prices on a national basis back at "fair value."

2) Sharp spike in mortgage rates led buyers to pause. With the low historical interest rates created an urgency to jump into the market.  Since the 1% increase in June, buyers are stepping back and re-considering their options.

3) Biggest drivers of price gains are going to play a smaller role going forward.  Home price have increased in part of the decline in foreclosure and distressed homes.  Investors are slowing down their purchase because the bargains of last year has dried up.

So.... unit there is new construction which is gearing up to open by next year (go to NewHomeSource for upcoming development communities) - it looks like this upward trend will continue into 2014.

Source: The Wall Street Journal

Home Sellers, learn how to price ahead of the market curve

Real estate markets change all the time. You want to make sure that you're pricing the house ahead of the curve -- no matter what the market.  Contact us for a free Home Value report. 

Details on the proposed Pedestrian Bridge Near the Metro Universal Station in Studio City

by Yvette Betancourt

Major details will be revealed tonight, Wednesday November 14th, at Studio City Neighborhood Council meeting.  This project has been in the works for a while with the original plan to be an underground tunnel for Metro riders.  However, due to the high cost of construction of $22 Million, the idea of a pedestrian bridge became an alternative choice. Personally I prefer the Pedestrian Bridge than a long underground tunnel. It brings a unique urban pedestrian experience.  

The presentation is tonight at 7pm at the CBS Studio Center, 4024 Radford Ave., Building 8, MPR 3.  

Source: StudioCityPatch.com

UPDATE 11/15/12: The five member board came to the unanimous conclusion to support Pedestrian Bridge that is now being referred as Universal Evolution Plan.  In the past, the expansion plan has been rejected when the original proposal include 3,000 residence.  

Universal will work closely with Cahuenga and Ventura Blvd specific plan review board to assure plans for traffic mitigation.  The city council also asked the new expansion plan to connect a bike path (part of the Los Angeles Bike Path) from Griffith Park to Studio City.  

Instead of a residential component, there will be a two 500 room hotels where former Fung Lum's used to be.

Open House Pick for the Weekend

Great Open House for this weekend! South of the blvd on Coldwater Cyn! Newly updated and priced to sell.  Stop by and take a peek. 


5445 Coldwater Cyn
Sunday June 17th from Noon to 4pm.


For more information or flyer on Coldwater Cyn, email me. 


Listing Courtesy of Nerses Ananyan of Titus Realty, Inc