Classic Palm Springs Alexander Mid-Century

1050 N Rose Avenue, Palm Springs

Listed at $498,500.00 SOLD $542,500.00

3 bedroom - 2 bathroom, 1710 square foot home sits on a 13,064 sqft lot with a large pool and mature landscape

We’ve all heard the stories of a guy traveling through the Mid-West or some remote part of the country and coming across an original ’57 Chevy or perhaps a Woody Station Wagon under an old tarp in a barn. As we progress into the 21st century, the same goes for Modern Architecture, designed and built during the early to mid twentieth century.

Palm Springs is a hot bed for these properties and has entire sub-divisions consisting mostly of historical structures originally built in the ’50s and early ‘60s. Although a lot of them have been updated or butchered, there are still a few out there that are mostly original. Even in this market, demand for these house is heavy and typically garner multiple offers.

Original brochure for Las Palmas Estates circa 1960

Palm Springs has a rich Modern Architectural history dating back to the early 1920’s and includes infamous names like R. M. Schindler, Lloyd Wright (son of Frank Lloyd Wright) and Richard Neutra. In the mid 1950’s the Alexander Company and the architectural firm of William “Bill” Krisel and Dan Saxon Palmer teamed up and began to build housing tracts that are now considered landmark (see entire Modern Architectural time line at Palm Springs Modern Committee).

In these neighborhoods (like Vista Las Palms) even a home in haggard condition and in need of a face lift will usually bring more than 10-times the number scratched on the photo above (taken from an original brochure for Las Palmas Estates circa 1960).

North Rose Avenue is at the eastern extreme of central Palm Springs and provides for spectacular desert mountain views

1050 N. Rose (pictured above), a Krisel & Palmer designed Model B-3 fixer (built by the  Alexander Company in 1960) was purchased by the seller in 1985, used infrequently as a vacation home and almost entirely original. For a modern architectural collector this property is tantamount to the Holy Grail and a fantastic opportunity.

Spacious 13,064 sqft lot with a large pool, mature landscape and spectacular views

For more information regarding this post or other real estate information contact Robert Dixon at RE/MAX Palos Verdes Realty, Telephone (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed. DRE License #01828273

Serving the Palos Verdes Peninsula & South Bay Beach Cities, Hollywood and the Hollywood Hills, Silver Lake, Echo Park – Angelino Heights, Los Feliz, the Greater Los Angeles area and Palm Springs.

Reasons to Buy Real Estate Now

The “Three Reasons” below is a repost from the pages of REALTOR Magazine online, but essentially is what I’ve been saying for weeks, nay months!

The tax credits expired and everyone climbed under a rock! For a measly $8 to $18K in conditional tax credits buyers were jumping through hoops like they were handing out bars of gold. Do the math on 4% interest over 30 years on a distressed property that you bought for 10% below market. . .

So STOP listening to all the fearmongers and their media puppets screaming that the sky is falling. They’ve all got agendas. Be smart, do your homework and if it makes sense buy a home.

As a point of reference, interest rates on 30-year fixed conventional mortgages went to double digits in late 1978 and peaked at nearly 19% in late 1981. It wasn’t until early 1986 that rates dipped (briefly) below 10% again and were not permanently in single numbers until late 1990. In November of last year (2009) they were right at or just below 5%.

Three Reasons to Buy a Home Now

Stocks are up 50 percent from the March 2009 bottom. Some commodities have risen dramatically. The only asset class left in the cellar is real estate, says Michael Murphy, editor of the New World Investor stock newsletter.

As a result, Murphy is advising investors to buy now for these three reasons:

Desperate sellers: Both home owners and lenders are eager to unload a flood of foreclosed and underwater properties. Buyers with the patience to push through these complex deals can save a bundle.

Little competition: Because most people don’t have what it takes to negotiate their way through short sales and REOs, patient investors are winners.

Low rates: Mortgage rates are at their lowest level in 40 years. If you believe inflation is inevitable, lock in now.

Source: MarketWatch, Michael Murphy (08/19/2010)

Posted at REALTOR Magazine online

For more information regarding this post or other real estate information visit LARealEstateINFO.net or contact Robert Dixon at RE/MAX Palos Verdes Realty, Telephone (310) 703-1848 or email info@robertdixon.net. Content of this or any other post is presumed to be accurate but not guaranteed. DRE License #01828273

Serving the Palos Verdes Peninsula & South Bay Beach Cities, Hollywood and the Hollywood Hills, Silver Lake, Echo Park – Angelino Heights, Los Feliz, the Greater Los Angeles area and Palm Springs.

Big Banks want MORE!!!

Big Banks and Financial Companies, the same institutions that set the stage for our current downturn, got billions in tax-payer bail-outs and are already becoming profitable (while many American’s continue to struggle or worry) would like yet another pound of flesh from those caught in the cross-fire.


It’s important to note that most of the recent and pending foreclosure activity IS NOT subprime, but prime loans and mortgages. These are A-paper borrowers succumbing to extreme economic challenges.


The piece below, from the CALIFORNIA ASSOCIATION OF REALTORS® provides information and background.

When is Enough, Enough?
The Big Banks are Opposing C.A.R.’s Bill to Protect Borrowers

C.A.R. is sponsoring SB 1178 (Corbett) to extend anti-deficiency protections to homeowners who have refinanced “purchase money” loans and are now facing foreclosure. Most homeowners didn’t even know that when they refinanced they lost their legal protections, and now may be personally liable for the difference between the value of the foreclosed property and the amount owed to the lender. SB 1178 will be voted on soon by the entire Senate.

One can’t help but think, “when is enough, enough?” Banks have already foreclosed upon a family’s home and now lenders can continue to hound them for additional payment. How much more money can today’s families afford to pay when they’ve already lost their homes and most likely their jobs? Are they never to have the opportunity to begin again?

Action Item
Call Senator Rod Wright Today at 1-800-672-3135
Urge him to vote “Yes” on SB 1178.
Non-C.A.R. members enter PIN number — 182003468

Background

California has protected borrowers from so called “deficiency” liability on their home mortgages since the 1930s, but the evolution of mortgage finance requires the statute to be updated.

Current law says that if a homeowner defaults on a mortgage used to purchase his or her home, the homeowner’s liability on the mortgage is limited to the property itself. The law has worked well since the 1930s to protect borrowers, ensure the quality of loan underwriting and allow borrowers who are brought down by financial crisis to get back on their feet.

Unfortunately, the 1930s law does not extend the protection for purchase money mortgages to loans that re-finance the original purchase debt — even if the re-finance was only to gain a lower interest rate. Recent years of low interest rates have induced tens of thousands of homeowners to re-finance their mortgages, yet almost no one realized that by re-financing their mortgages to obtain a lower rate, they were forfeiting their protections. These borrowers became personally liable for the balance of the loan.

C.A.R. is Sponsoring SB 1178 Because:

SB 1178 is fair. Home buyers, and lenders, entered into the purchase with the idea that the mortgage would be non-recourse debt, and that the lender would look to the security (the house) itself to make good on the debt if the borrower cannot. It meets the legitimate expectation of the borrowers, who have no idea that they are losing this protection by a re-finance. Homeowners didn’t know that their re-finance exposed them to personal liability, and new tax liability, on the note. It would be unfair to allow a lender, or someone that has purchased a note from a lender, to pursue the borrower beyond the value of the agreed upon security.

SB 1178 is consistent with the intent of the orginal law and simply updates it for modern times. Current law was intended to ensure that if someone lost their home to foreclosure, they wouldn’t be liable for additional payment. Since the law was passed over 70 years ago, homeowners re-financing from the original loan to lower their interest rate has become commonplace. The 1930s legislature didn’t anticipate how mortgages would change over time.

Lenders could pursue families to collect this “deficiency” debt years down the road. Under current law, lenders have up ten years to collect on the additional debt after a judgment has been entered on the foreclosure. Years after a family has lost their home, they could find themselves in even more financial trouble. Lenders could even sell these accounts to aggressive collection agencies or even bundle them into securities. The end result would be banks who didn’t lend responsibly in the first place coming after families for even more money that they don’t have.

SB 1178 does NOT apply to “cash-out” re-finances, unless the money was used to improve the home and it doesn’t apply to HELOCs.

Los Angeles-area foreclosure rate up in October

Along the lines of what I’ve been posting, we’re all just passengers on this one… see LA Times piece “Los Angeles-area foreclosure rate increases in October” below.

The bright side in South Bay, Palos Verdes Peninsula and the beach cities is that more-than-likely, as with the last round we will not experience the same degree of depreciation (if any) as areas inland or across the country.

Inventory: Active/Sold

On the Palos Verdes Peninsula 90274 and 90275, inventory is currently low with 253 properties (SFRs, condos and town houses) available for sale. Per the MLS, there have been 74 closed sales November 1st through today (16 since December 1).

In the beach cities (Manhattan Beach 90266, Hermosa Beach 90254, South Redondo Beach 90277 and the Hollywood Riviera) there are 364 active listings and 126 sales since the 1st of November (39 so far in December).

Torrance (not including the Hollywood Riviera) 91 listed currently, 76 sold November 1 to present (19 of those since December 1st).

If you’d like numbers on additional areas, please send a request via email.

The slow-down in December is expected, interest rates (see below) are still outstanding and although prices in general may drop further during 2010 (most likely during Q1/Q2) the best properties are still selling.

Rates as of Friday, December 11, 2009

Conforming 30 Year Fixed
Rate Disc. Points APR
4.625% 0.750% 4.813% Details

Conforming Jumbo 30 Yr Fixed
Rate Disc. Points APR
4.875% 0.750% 5.049% Details

FHA 30 Yr Fixed
Rate Disc. Points APR
4.750% 0.608% 5.077% Details

FHA Jumbo 30 Yr Fixed
Rate Disc. Points APR
4.875% 0.950% 5.216% Details

Rates complements of: Andre Hemmersbach
American/California Financial (310) 713-3100

Los Angeles-area foreclosure rate increases in October
December 10, 2009 2:40 pm

While home prices in the Los Angeles area have steadily increased in recent months, indicating strengthening in the housing market, more and more people are finding themselves falling behind on their mortgage payments, according to a report out today.

In the Los Angeles metro area, the rate of foreclosure among outstanding mortgage loans was 3.69% in October, compared with 1.75% for the same month a year earlier. That compares with a 3% national foreclosure rate, according to data released by First American CoreLogic, which tracks the mortgage market.

Delinquent loans 90 days or more past due constituted 10.9% of all mortgage loans in the Los Angeles area, up from 5.86% during the same month the year before.

Whether a new wave of foreclosures will hit the market next year remains a matter of debate among experts. Some believe a glut of properties could flood in, pushing down prices, while others argue that lenders and the federal government are both determined to keep such a situation from occurring.

Source: L.A. Times by Alejandro Lazo
Photo: Associated Press

Home prices rise for 4th month in a row

Although this is great news, it does not give a complete picture. Most current sellers need to sell or the property being marketed is bank owned (REO). For those in a position to buy, this is a great opportunity and there certainly will be no shortage of inventory (Short Sales and REOs) during the coming year… Plus the value of standard sales is influenced by the distressed market.

A piece today in the WSJ “One in Four Borrowers Is Underwater“ states that nearly 10.7 million households , or about 23% of homeowners with mortgages had negative equity in the third quarter. It is estimated that more than 520,000 of these borrowers have received a notice of default.

On the bright side, the article goes on to say “Most U.S. homeowners still have some equity, and nearly 24 million owner-occupied homes don’t have any mortgage…” Some experts expect values to drop again in the coming year and it’s likely they will. We should definitely see values flat-line or drop over the next month and into Q-1 of 2010 due to the holidays and extension of tax credits to April 30th. My guidance is, if you’re buying a home and you plan to live there for 5 years or more, it’s hard to go wrong at 5% interest. If you don’t need to sell, don’t. Or consider leasing the property if you can. Speculators’ (flippers’) must understand that smart money is buying at a percentage of replacement cost and has the cash to carry if necessary. RD

PS – Also at WSJ.com, check out “Negative Equity by State” chart. California is actually slightly better off than Florida, Nevada and Arizona.

Home prices rise for 4th month in a row

WASHINGTON – The summer’s trend of rising home prices is flattening as the traditional home shopping season ends, two reports Tuesday showed.

The Standard & Poor’s/Case-Shiller home price index of 20 major cities rose 0.3 percent to 144.96 in September, the fourth monthly increase in a row. The seasonally adjusted index is now up more than 3 percent from its bottom in May, but still 30 percent below its peak in April 2006.

Another reading of home prices published by the Federal Housing Finance Agency held steady from August to September. Analysts expect prices to dip again this winter as foreclosures increase.

“As long as the unemployment rate stays elevated, you’re going to see pressure on the pace of foreclosures, which are going to find their way back onto the market, depressing prices,” said Dan Greenhaus, chief economic strategist with Miller Tabak & Co.

Home prices are a key ingredient to rebuilding the economy. Homeowners feel wealthier when their property appreciates in value and are more likely to spend money. Rising prices also help millions of homeowners who owe more to the bank than their homes are worth.

Currently, roughly one in four homeowners are in that situation, according to First American CoreLogic.

While prices nationally are likely to keep rising through November, “we are very worried about the potential for a huge wave of supply next year, both from private sellers and banks,” wrote Ian Shepherdson, chief U.S. economist at High Frequency Economics. “Prices could easily reverse their recent gains.”

Home prices rose in 11 major cities with the strongest gains in San Francisco and Minneapolis, according to the Case Shiller report. Prices fell by the most in Las Vegas and Cleveland.

Compared with a year earlier, the 20-city index was down 9.4 percent, the smallest year over year decline since January 2008.

“With housing remaining an albatross around the economy’s neck, nothing would perk things up more than some increases in home prices,” wrote Joel Naroff, chief economist at Naroff Economic Advisors. “That seems to be happening.”

The price reports came a day after the National Association of Realtors said home resales surged by more than 10 percent in October as buyers took advantage of a special tax credit for first-time owners.

Source: Yahoo! News by ALAN ZIBEL, Associated Press Real Estate Writer