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Catherine Bedrossian's Blog

By Catherine Bedrossian | Agent in Los Angeles, CA
  • Bank repossessions jump over 51% in California

    Posted Under: Market Conditions in California City, Home Buying in California City, Foreclosure in California City  |  February 15, 2011 1:51 PM  |  774 views  |  No comments

    They keep saying it's coming. Here is another article I just read that seems to beat the drums
    B-Bum B-Bum B-Bum

    ForeclosureRadar.com shows that foreclosure sales, that is, either bank repossessions or sales to third parties (usually at the courthouse steps and often to investors) jumped dramatically in January from the previous month. "We have not seen this level of activity on the courthouse steps for months," says Sean O'Toole, CEO and Founder of ForeclosureRadar.com. "The increase in foreclosures is just in time to provide a fresh supply of entry level homes for the spring home buying season."

    Something else important to note is the first phase of the foreclosure process, Notices of Default (NODs) in California, fell off in January. "Remember, December was a holiday month, and a holiday moratorium month," says mortgage consultant Mark Hanson. There were only 14-15 work days in December, and 23.5K NODs, that's 1680 per day. In January there were 21 work days and 25.1K NODs. That's only 1195 a day."

    Bottom line, average daily NOD rate for CA fell from 1680 per day to 1195 per day from December to January, or 29%, according to Hanson. Why are the banks holding off? Likely trying to be ultra-careful to avoid lawsuits, or trying to manage the pipeline as they now pump out the foreclosure sales. One thing we do know, the drop in NOD's is not because the market/economy suddenly turned around. Get ready because they are coming…
  • Will 2011 be the Peak?

    Posted Under: Market Conditions in Los Angeles, Home Buying in Los Angeles, Foreclosure in Los Angeles  |  February 1, 2011 10:05 PM  |  757 views  |  No comments

    "2011 is going to be the peak," says Rick Sharga, a senior vice president at Realty Trac Inc.  One in 45 US households received a foreclosure filing last year, a record high and a 1.67 percent increase from 2009.

    2011 will offer tremendous Bank Owned Property opportunities and those who plan ahead can capitalize on this opportunity.

    Create a solid business plan and you will be in a position to move when the conditions are right for you.

    · Clearly define your investment goals.

    · Set aside your investment funds in a liquid account, so you can access it when the right property presents itself.

    · Find a Realtor who can help you decide on 2-3 areas that are strong rental markets and ask them to create a continuous watch/analyze/alert program for you.

    · Once you are alerted that there is a property match to your investment objectives, be prepared to move quickly.

    Catherine Bedrossian
    Home Sales Pro
    (310) 383-4212
    catherineb@socalhomefinds.com
    www.socalhomefinds.com

  • Rent vs. Buy Haiku

    Posted Under: Market Conditions in California City, Home Buying in California City, Rental Basics in California City  |  January 20, 2011 11:33 PM  |  771 views  |  No comments

    Rent goes up in the long run

    Home values go up in time

    Your faith you decide
  • 2011 inflationary effects

    Posted Under: Market Conditions in Los Angeles, Home Buying in Los Angeles, Financing in Los Angeles  |  January 10, 2011 11:50 AM  |  526 views  |  No comments

    I have been reading a lot about 2011 being the year we see rising inflation. While on one hand rising inflation is a sign that the economy is starting to recover, on the other hand who can afford higher prices when we have all seen our incomes and assets decline in value over the last 4 years.

    One of the best ways to combat inflation is to create fixed expenses where possible.

    Generally most people’s largest expense is their housing, so if you turn that into a fixed expense, then you are protected from your largest expense going up with inflation.

    While I don’t know much about commodities and precious metals, I do know about real estate, so here are my top 3 action items to help protect you against rising inflation.

    · If you are a renter, your housing expense is a variable cost and will generally increase every year - the increase is more when inflation is higher. As soon as you can, buy a home and get a 30 year fixed mortgage. This will turn your housing expense into a fixed cost. As an example if you are paying $1,500 in rent today, you will pay double that amount in 10-15 years, depending on the rate of inflation over that time. Remember when one bedroom apartments were renting for $550.00 in LA?

    · If you have a Home Equity line or First Mortgage that has a variable interest rate, then look into refinancing into a fixed rate loan. I know interest rates are real low right now and you are enjoying low payments on your equity lines, but once they start to go up, you will not be able to refinance at a low rate. It is wiser to pay a little more now, vs. a lot more later…

    · If you have money to invest, invest in income producing real estate. Look at purchasing a single family or multi family home. With today’s depressed prices and interest rates where they are, you can invest with a small positive cash flow on your money – I say small, but it will be more than what you get when you put your money in the bank. However, the real return on investment comes in the future. You will have 3 sources of return:

    o    Equity that is built as you make your monthly mortgage payments

    o    Equity Built when home prices go up as a result of inflation

    o    Increased monthly cash flow when rents go up as a result of inflation

       

    Please contact me if you need help buying, selling or refinancing. I am here to help you navigate your Real Estate transaction with the least amount of stress and best possible outcome.

    Best Regards,

    Catherine Bedrossian

    Home Sales Pro

    (310) 383-4212

    catherineb@socalhomefinds.com

    www.socalhomefinds.com

     

  • Who Should invest in Real Estate in 2011?

    Posted Under: General Area in Los Angeles, Market Conditions in Los Angeles, Home Buying in Los Angeles  |  January 4, 2011 12:53 PM  |  489 views  |  1 comment

    We all know the Real Estate Market has declined anywhere from 20-50% in California. There are a lot of so called “experts” issuing warnings that there may be further decline in values on the horizon, since there are still 14 million homeowners in the country that owe more on their homes than the home is currently worth. While this may be true, NO ONE really knows where the bottom of the market is. If you analyze Homebuilder and REIT stocks for 2010, you will see significant upturn, which is being interpreted by some analysts as a very good sign for the Real Estate industry.

    I work with a number of savvy investors who understand that you don’t invest in the General Market – but you do invest in the Right Deal. This strategy is more sound now than ever, since in today's market, there are more desperate sellers and more deals than ever.

    That is why I believe 2011 will be a great year to invest in Real Estate. Now, not every Foreclosure or Short Sale is a good deal. Make sure you properly analyze each scenario, before you make an offer to purchase. Work with a Realtor who understands not only comparative market analysis, but also financial analysis, as this is where you will make money if you choose The Right Property at The Right Price.

    Please contact me if you are interested in finding The Right Property at The Right Price.

    Best Regards,

    Catherine Bedrossian

    Home Sales Pro

    (310) 383-4212

    catherineb@socalhomefinds.com

    www.socalhomefinds.com

     

  • California Real Estate Market Beat

    Posted Under: Market Conditions, Home Buying, Home Selling  |  December 1, 2010 3:01 PM  |  332 views  |  No comments

    According to reports from various industry watch groups, 32,669 new and resale homes closed escrow in California during Oct 2010, this is a 21% drop from Oct 2009, with 41,280 closed sales. Statewide home sales have dropped slowly but consistently since June of this year. Southern California home sales are trending downward more quickly than Northern California.

    REO sales accounted for 36% of all resales in Q3 2010— down from 39% of resales one year earlier. Declining REOs are a positive sign; however the drop is not likely to continue into 2011, as delinquencies have recently been on the rise in California.

    Real Estate investors accounted for 22% of resales in SoCal and 20% in NorCal. The high-tier home market, or “jumbo loans” (loans over $419,000) accounted for 18% of resales in SoCal and 34% of NorCal sales, up from 16% and 31% one year earlier. The rise indicates high-tier properties are becoming an increasing portion of total home sales, most likely due to increasing defaults in the high-tier range, which forces owners to sell at more attractive prices.

    To continually be kept abreast of Real Estate trends and information in Southern California please visit www.socalhomefinds.com and request to be added to our mailing list.

  • Is this the right time to buy or should I wait a while longer?

    Posted Under: Market Conditions in California, Home Buying in California  |  November 16, 2010 11:25 PM  |  347 views  |  No comments

    I am asked this question almost every day. My answer is always the same: We will only know the market has hit bottom in hindsight! Once you accept this reality, it becomes easier to relax and see how lucrative the market conditions are at this very moment.

    5 factors have contributed to this phenomenal market opportunity:

    1.    Home prices have fallen over the past 3 years as a result of foreclosures

    2.    Interest rates are lower than they have been in many decades

    3.    There is a large inventory of homes for sale because the homeowners are unable to keep making their payments

    4.    There are a lot of nervous buyers, who are unsure of their employment prospects and generally nervous about the recent bank foreclosures news stories

    5.    We are in the slow Real Estate season because of the holidays and the cold weather

    If you are looking to buy a personal residence or an investment property, this is a great time to become serious about it. Yes, prices may fall some more, but there is no guarantee that interest rates will stay this low or that the inventory will be this robust.

    Do not rush into anything; simply find a seasoned Real Estate agent that can help you navigate the current home buying waters. There are great tools available that can be configured by your agent to get you the most up to date live data about available properties, current market values and return on investment information. The right agent will be able to review the homes that meet your specific needs and get you the up to date information every morning before you have had your first cup of coffee. It is then up to you to look through the information and decide which opportunities are worth pursuing.

    When you find a home you like that is priced right, you and your agent need to act quickly. Even though the market is slow, the good deals fly out the door. Be ready to grab The Right Home for The Right Price at The Right Time.
 
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