Realtor Report Realtor®Report
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May/June,2015May/June 2015 May/June,2015 ® ® ReportRealtors ® ® Realtor ReportRealtors RealtorThe Official Publication of Southland Regional Association of The Official Publication of Southland Regional Association of Investors Shift ToPG. 2 Investors Shift ToPG. 2 Multifamily Units MultifamilyREAL TOR®UnitsE XPO Thursday, June 11, 2015 R9:00amEA - 2:30pmLTOR® EXPO ThursdaThe Odysseyy, June 11, 2015 156009:00am Odyssey Drive Granada- 2:30pm Hills, 91344 RAFFLE PRIZES & FREE LUNCH SESSION SCHEDULE 9:15TheAM - 10:00 OdysseyAM Sin-dication or Syndication,RAFFLE PRIZES & FREE LUNCH Team Names 15600 Odyssey Drive GoodGranada or BadHills, for 91344 Real Estate? 10:15 AM - SESSION11:00 AM Risk Management SCHEDULE Panel AM Sin-dication or Syndication, PG.3 10:159:15AMAM - -1 10:001:15 AM Sneak Peek...Speed “App”ing Team Names Good or Bad for Real Estate? 11:30 AM Lunch in the “Carnival Lounge” Risk Management Panel 10:15 AM -12:00 11:00 PMAMRaffle Prizes PG.3 11:15 AM Sneak Peek...Speed “App”ing 6 Blunders 10:1512:00 AMPM - 1:15 PM Top Producer Panel Lunch in the “Carnival Lounge” 12:151:30 PMAMFinal Raffles & Affiliate Raffles 12:00 PM Raffle Prizes Home6 Blunders Sellers 12:00 PM - 1:15 PM Top Producer Panel MakeHome Sellers 2:15 PM Final Raffles & Affiliate Raffles PG.6Make PG.6 LUNCHES FREE CARNIVAL In Memoriam FOR FIRST ATTENDEES! 350 LUNCHES LOUNGE FREE CARNIVAL Pg.6 FOR FIRST In Memoriam TTENDEES! BY DISCOVERA THE LASTEST PRODUCTS 350 LOUNGE TABLE HOST Pg.6Valley Home & SERVICES FROM OVER 40 BY DISCOVERHave THE fun! LASTEST Play Games! PRODUCTS Win Prizes! Learn Lots! Sales Post & SERVICES FROM OVER 40 TABLE HOST fREE WIFI & POPCORN Valley Home For more informHaveation, fun!co Playntac tGames!Jason Arancibia at 818-947-2298 or [email protected] Win Prizes! Learn Lots! SolidSales GainsPost fREE WIFI & POPCORN PG.5 For more information, contact Jason Arancibia at 818-947-2298 or [email protected] Solid Gains 9ROXPH,VVXH PG.5 9ROXPH,VVXH 2015 INVESTOR SURVEY ADVERTISEMENT INVESTORS SHIFT TO MULTIFAMILY UNITS NOW THAT THERE ARE FEW DISTRESSED HOMES FOR SALE period of time at an average of 6.1 years in AND PRICES HAVE REBOUNDED, 2015, down from 8 years in 2014, and 7.9 INVESTORS HAVE LARGELY RETREATED FROM THE SINGLE- years in 2013. FAMILY HOME MARKET, • Investors also owned fewer properties on average in 2015, 6.4 properties, down from SHIFTING THEIR ATTENTION TO MULTIFAMILY INVESTMENTS, 8.3 in 2014 and 6.5 properties in 2013. THE CALIFORNIA ASSOCIATION • In a sign of optimism, the vast majority, OF REALTORS REPORTED RECENTLY. 70 percent, of investors believed their The Association’s 2015 Investor Survey property would increase in value in one found 21 percent of investors purchased year. Three-fourths said the property would multifamily properties during the past year, increase in value in five years. up from 19 percent in 2014 and 14 percent • Investors expect the property to in 2013. appreciate an average of 27 percent during Eighty percent of the transactions were their ownership period. non-distressed, up from 70 percent in 2014, • Investors intend to charge a median reflecting theADVERTISING recovering housingSUPPLEMENT market. monthly rent of $1,850 and plan to increase Additionally, consistent with investors that2015 by $50 Investor or 2.7 percent Survey next year. Home, Condo purchasing more equity and multifamily • While the majority of individual investors Prices Highest properties, the statewide median sales price wereInvestors Caucasian/ white, Shift 55 percent, to the Multifamily share Units increased to $375,000 in 2015, up from ofNow minority that there investors are few grewdistressed slightly, homes rising for sale and prices have rebound- Since 2007 $320,000 in 2014 and $292,000 in 2013. fromed, investors 40 percent have in largely 2014 retreated to 45 percent from the in single-family home market, 2015.shifting their attention to multifamily investments, the California Association By Gaye Rainey, President, and David R. Walker Investors also turned to higher-priced of Realtors reported recently. Southland Regional Association of Realtors® properties given a lack of inventory of lower- Homes and condominiums sold dur- The Association’s 2015 Inves- ing April in the San Fernando Valley priced properties. Twenty-three percent of % tor Survey found 21 percent of investors purchased multifamily had the highest median resale prices investment properties purchased ranged " !$, " !% since 2007. between $501,000 to $1 million, up from 16 properties during the past year, up #&, from 19 percent in 2014 and 14 slowed as rising prices mean fewer house- activity from first-time buyers, posted its #", #), #', Preliminary percent in 2014, and 9 percent were above $1 $ , holds can qualify for a home loan. highest median price in seven years. "#, percent in 2013. statistics from For example, the year-to-year increasesmillion, up fromThe median8 percent price inof condominiums2014. # , Eighty percent of the transac- the Southland !&, ), for local home sales during April posted that changed owners this April was " , tions were non-distressed, up from Among the reasons investors cited for (, Regional As- double-digit gains from 2012 to 2014 $350,000, up 12.2 percent over a year ago ! , 70 percent in 2014, reflecting the sociation of — 12.4 buying now include “good price” (39 , recovering housing market. Realtors placed "% "%!% % !! ! - percent, percent), followed closely by “good location” Additionally, consistent with the median Rate of home price increases slowing investors purchasing more equity 15.3 per- price of single- cent, 12.8 (38 percent), “future development potential” and multifamily properties, the as pool of qualified buyers dwindles family homes at percent, (9 percent), and “size” (7 percent). statewide median sales price $555,000, up 6.9 increased to $375,000 in 2015, respec- Additional findings include: More ).1 percent over a tively. Yet the difference between April for the highest median since September up from $320,000 in 2014 and ® year ago for the 2014 and April 2015 showed a mereinvestors—65 2008. The percent—rented record-high median condo their price )-1 $292,000 in 2013. Realtor® Gaye Rainey highest median REALTOR REPORT single-digit increase of 6.9 percent. of $397,000 was set in January 2006. Investors also turned to 2015 President, SRAR properties, rather than flip them, 26 percent, -"-1 since November No doubt the economy is stronger Detailed press releases reporting local higher-priced properties given a 2007. up from 58 percent in 2014, but down from today, yet area workers see lagging or tepid home and condominium sales during April ,".1 lack of inventory of lower-priced The local increases in income, leaving a local73 home percent willin 2013.be distributed this week. properties. Twenty-three percent ,".1 President market has seen the median price above of investment properties purchased resale market stuck in second gear despite• Investors The held Southland properties Regional Association for of a Realtors® short is Gaye Rainey $500,000 for 14 consecutive months, but pent-up demand. a local trade association with more than 9,100 members &1 +1 '&1 '+1 (&1 (+1 )&1 )+1 *&1 *+1 ranged between $501,000 to $1 the April median price was the first time serving the San Fernando and Santa Clarita valleys. Similarly, the local median price of million, up from 16 percentPresident-Elect in 2014, it hurdled the $550,000 benchmark since SRAR is one of the largest local associations in the nation. condominiums, which typically get heavy and 9 percent were above $1 million, up from 8 percent in 2014. Gina Uzunyan the local and national housing markets and CONSUMER PRICEAmong INDEXES the reasons investors cited for buying now include “good price” (39 percent), fol- economies plunged into the worst recession lowed closely by “good location” (38 percent), “future development potential” (9 percent), and Single-Family Median Price April 2002 Through April 2015 MARCH 2015 Chief Executive Officer since the Great Source: Southland Regional Association of Realtors¨ “size” (7 percent). Jim Link Depression of the PERCENT CHANGE 2002 $293,000 $700,000 Additional findings include: More investors—65 percent—rented their properties, rather 1930s. 2003 $356,000 21.5% INDEXES than flip them, 26 percent, up from 58 percent in 2014, but down from 73Santa percent Clarita in 2013. Valley Division It was in June 2004 $477,500 34.1% $600,000 YEAR ENDING 2005 $553,000 15.8% • Investors held properties for a short period of time at an average of 6.1 years in 2015,President 2007 that the 2006 $605,000 9.4% $500,000 down from 8 years in 2014, and Bob Khalsa local single-family 2007 $625,000 3.3% 2008 $465,000 -25.6% $400,000 MAR FEB MAR7.9 years in 2013.FEB MAR MAR median hit its all- 2009 $355,000 -23.7% $ • Investors also owned fewer 2010 $379,000 6.8% 2014 2014 2015 2014 2015 2015 $300,000 time record high of 2011 $354,900 -6.4% properties on average in 2015, $655,000. 2012 $399,000 12.4% Los Angeles - 6.4 properties, down from 8.3 in 2013 $460,000 15.3% $200,000 Realtors report 2014 $519,000 12.8% Riverside - 242.491 241.297 243.7382014 and 6.5 properties0.1 in 2013.0.5 1.0 that prices continue 2015 $555,000 6.9% $100,000 Orange County • In a sign of optimism, the to rise due to a still $0 vast majority, 70 percent, of REALTOR® expo 2002 2004 2011 2013 too-tight inventory 2007 2009 2015 Realtorinvestors® Report believed their property May/JuneSAVE 015 THE DATE www.srar.com of homes listed for sale and heavy demand would increase in value in one from buyers, but the rate of increase has year.