Johnny Burke

The Senate voted wednesday to extend and expand the $8,000 first-time homebuyers tax credit, and passed the measure by a measure by a 98-0 vote.

The tax credit will be extended to applications taken by April 30th 2010 so long as they close by June 30th, and will also be expanded to those who have owned their current home for 5 tears and want to upgrade. Current homeowners will be eligible for tax credits up to $6,500.

WASHINGTON, Nov. 5 /PRNewswire-FirstCall/ - Fannie Mae (NYSE: FNM) is implementing the Deed for Lease(TM) Program under which qualifying homeowners facing foreclosure will be able to remain in their homes by signing a lease in connection with the voluntary transfer of the property deed back to the lender.

"The Deed for Lease Program provides an additional option for qualifying homeowners who are facing foreclosure and are not eligible for modifications," said Jay Ryan, Vice President of Fannie Mae. "This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities."

The new program is designed for borrowers who do not qualify for or have not been able to sustain other loan-workout solutions, such as a modification. Under Deed for Lease, borrowers transfer their property to the lender by completing a deed in lieu of foreclosure, and then lease back the house at a market rate.

To participate in the program, borrowers must live in the home as their primary residence and must be released from any subordinate liens on the property. Tenants of borrowers in this circumstance may also be eligible for leases under the program. Borrowers or tenants interested in a lease must be able to document that the new market rental rate is no more than 31% of their gross income.

Leases under the new program may be up to 12 months, with the possibility of term renewal or month-to-month extensions after that period. A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.

For additional information about the Deed for Lease Program, including full details on program eligibility, please review the GuidAnnouncement on www.efanniemae.com.

There were 5 SFR sales in October in the West Hollywood area, with the YTD average at $605/sq. ft.- down 17% from the 2006 market peak of $731/sq. ft. According to the MLS there are 72 active SFR listings, an average of 4.8 sales /month YTD which gives us an inventory of 15 months supply. REO, or bank-owned property in West Hollywood not listed with a broker is at 74 units, or an additional 15 months supply. As I have noted in previous market reports, a pipeline of 1-2 months supply of REO property is considered normal.

In the West Hollywood Condo Market, there were 27 sales in October, with the YTD average at $445/sq. ft.- down 21% from the 2006 market peak of $523/sq.ft. There are 299 active condo listings, an average of 24 sales/month YTD which gives us an inventory of 12 months. REO numbers for Weho condos are at 37 units, or about 1.5 months supply.

The numbers pretty much speak for themselves, as inventory numbers threaten to expand considerably in the SFR market, the condo market inventory has come down since the beginning of the selling season. In order to get back to a more "normal "supply of 6-7 months, with Option ARM/Interest-Only resets coming for the next 2 years, it seems inevitable that prices, especially in the single family market here in West Hollywood are going to have to come down.

According to the MLS, there were 15 SFR sales in October in the Beverly Center-Miracle Mile area at an average of $466/sq. ft., which is 21% below the 2006 market peak. With 61 active listings, and an average of 11.6 sales per month YTD, this indicates an inventory of 5.5 months. There are also 99 REO, or bank-owned properties in the area at the moment. Although it is common to have a 1-2 month pipeline for REO property that is not yet listed with a broker, another 99 houses represents an additional 8.5 months of unlisted, or "shadow inventory."

In the Beverly Center-Miracle Mile condo market there were 4 sales in October at an average of $442/sq. ft. which is 16% below the 2006 market peak. With 37 active listings, and an average of 6.5 sales per month YTD, this puts the condo inventory at 5.7 months. With 30 REOs, there is 4.6 months of unlisted inventory.

In the Hancock Park-Wilshire area, there were 20 SFR sales in October at an average of $453/sq. ft., which is 19% below the 2006 market peak. With 82 active listings, and an average of 14.6 sales per month YTD, that leaves us with an inventory of 5.6 months supply. There are 44 REOs presently, which gives us 3 months of unlisted SFR inventory.

In the Hancock Park-Wilshire condo market, there were 4 sales in October at an average of $324/sq.ft. which is 26% below the 2006 market peak. With 72 active listings and an average of 12.8 sales/month YTD, that gives us an inventory of 5.6 months. At the moment there are 45 REOs which is equal to 3.5 months of unlisted inventory.

In sum, it would appear that inventory has contracted in both areas , and to some market observers, may even appear to be a "seller's market." What is unclear however, is the amount of unlisted REOs and to what extent more property coming on the market will put downward pressure on prices in the near future, especially with 2 years worth of Option ARM /Interest-Only resets on the horizon. While there has been some improvement in these areas, my feeling is that we are going to have quite a bit of inventory to go through before we can describe current market condtions as a"seller's market."

If you have any questions, comments, or need more information specific to your neighborhood, please do not hesitate to contact me.

According to recent data from Relocation.com, the number of people leaving the state is shrinking compared to the number of people moving to it, a crucial gauge for measuring the state's rebound from economic calamity.

As recently as 2005, 60.7% of the relocation activity was outbound- in other words, for every 2 people who were moving, 3 were leaving.

That kind of migration can decimate the local tax base and contribute to a further erosion in the state's quality of life. However, that outbound number has been slowly decreasing every year, from 58.6% in 2006 to 54.99% in 2009 year to date. These numbers are reflected in the Los Angeles data.

We looked at the data for all moves in Los Angeles, including moves made within Los Angeles. We found that outbound Los Angeles moves accounted for 36.4% of all moves in 2009 year to date, down from 43.1% in 2008 (the earliest year for which city data are available).

However, instead of people moving to Los Angeles, we found that more people were making moves within the Los Angeles area, an indication that more people are taking advantage of housing prices to either ‘move up' to a better home, or move to a better neighborhood.

Most importantly, of course, they're deciding not to move out of Los Angeles.

The percentage of movers making a move within LA was 25.2% in 2008; it rose to 32.33% in 2009.

Relocation.com utilizes real-time data from people requesting moving services, recording where people are moving from and to. It annually records over 500,000 moving requests in its database.