Tag: observations-2005

Folks who read my blog know that we’re in the 2^nd of two house hunts: the first was for ellipticcurve, and this one is for us. Right now, we’re trying to decide between two houses (Friends-Only: I’d Like Your Opinion). As such I read the papers for housing news, so here is today’s installment:

• The Daily News is reporting that the median price of a California home hit a record $495,400 in March. Sales increased 7.5% from their year-earlier level and were 6% ahead of 2004’s record pace for the first quarter. The median price jumped 15.7%, its smallest leap since June 2003. In Los Angeles County, the median price increased an annual 19%, to $466,250, and slid 1.5% from February. Sales increased 12.9%. Nationally, according to the LA Times, sales of existing U.S. homes rose 1% in March to the third-highest level on record as an increase in single-family sales offset a dip in sales of condominiums. The national median home price jumped 11.4% to $195,000 from the same month a year earlier. That says a lot about the Southern California Market: Median is almost $500K, vs. a national median of almost $200K.
• The Daily News is also reporting that tougher bankruptcy laws and skyrocketing home values have increased the need for earthquake insurance even as fewer Californians are purchasing the coverage. According to the article, fewer than 15% of the state’s homeowners buy earthquake insurance. they say. “Many people, after an earthquake, walk away and declare bankruptcy. But that’s changing, too, after the signing of the new bankruptcy law,” said Pete Moraga, spokesman for the Insurance Information Network of California. As for us, we’ve been buying our EQ insurance through Geovera, which has been cheaper than the state administered plan.
• On the school front, the LA Times is reporting that LA Unified is considering an academic reform plan that would require all high school students to complete a set of rigorous courses needed for college admission, a proposal some critics say is overly ambitious. Specifically, the plan would require students — beginning with the freshman class of 2008 — to complete what is called the “A-G sequence” of 15 high school courses needed for entry into the University of California or Cal State University systems. The college track program includes four years of English, a recommended four years of math and at least two years of history, science and foreign language. I think this is a great idea, but I get worried when I see statements from the head honcho of the district, Ray Romer, such as “we need to raise the level of rigor in our curriculum.” That level, sir, should have been raised years ago! The article noted that San Jose Unified School District implemented a college preparatory curriculum five years ago, and its graduation rates increased from 73% in 1999 to 79% in 2003. As a member of the advisory board for CSUN, I know the importance of such a curriculum well: I hear regular reports of students entering CSU unprepared.

That’s the housing news for today. Please remember, if you’re on my friends list, to provide me with comments on the house selection. This is a hard decision.

Some observations from this evening’s perusal of the news:

• The Daily News is reporting that California will begin offering two products structured to help first-time home buyers — free mortgage payment insurance and a 35-year, fixed-rate interest-only loan. The interest-only PLUS loan will reduce mortgage payments by hundreds of dollars per month. Borrowers just make the interest payment for the first five years, then the principal plus interest kicks in. HomeOpeners is a free mortgage protection program. If a borrower loses a job, the monthly payment is automatically covered for six months. CalHFA’s below-market mortgage rates are available to first-time home buyers who meet certain requirements, including income and home sales price limits. There are separate price limits on new and used homes in what the agency calls targeted areas, census tracts where 70 percent or more of the families have an income equal to 80 percent or less of the state median. For example, in Los Angeles County the purchase price limit is now $549,601 for a new house and $671,735 for one in a targeted census tract, 22 percent higher than the year-ago level. For a resale house, the price limits are $457,608 in nontargeted areas and $559,298 in targeted areas, the agency said. To qualify for the program, a single person or couple cannot earn more than $78,600 and for a family of three or more, the cap is $91,700.
• But we can be glad we live in Los Angeles. CNN is reporting that the average sale price for a Manhattan apartment topped $1.2 million in the first quarter. In the condominium sector, the average sale price jumped to $1.55 million. The median sale price — the point where half the sales are higher and half are lower — climbed to $705,000. The average sale price of a cooperative apartment, in which an owner holds shares in the building and does not own the individual unit, rose to $988,746. Did you ever think you would be glad to be in the LA housing market?
• As I write this, the Pope is about go to meet Frank Purdue, Jack Keller, and Terri Schaivo. What I’m impressed with is how the Vatican leadership is referring to the Pope’s situation: Monsignor Angelo Comastri, the vicar of Vatican City, said that soon “Christ will open the doors to the pope”; and Cardinal Camillo Ruini, the vicar of Rome, said John Paul had “abandoned himself to the hands of Christ, with whom he has always lived, worked, suffered and had joy.” Although I’m not Christian, it is a very comforting way to put what is a very sad situation for many around the world.
• Lastly, the San Fernando Valley has been invaded by Painted Ladies, according to the Los Angeles Times. No, not the type that used to walk Sepulveda Blvd in the late night many years ago, but rather a lady named Vanessa Cardui. I remember seeing a photo spread on her once. Maybe you’ve run into her?

First, a sincere “rest in peace” for Terri Schaivo, whose recent two week hunger strike on the importance of having a living will or advance health care directive really made its point.

For some reason, there has been loads of news related to housing in Southern California this week… so much, I’ve had to use my 49^th userpic space. There’s only one left, and I understand its value is appreciating rapidly. Perhaps I can rent it. Seriously, though…

• The Daily News is reporting that the Census Bureau is reporting that Southern Californians spend at least 120 hours a year driving to their jobs (equal to three full weeks at their workplace), with a round-trip total of 240 hours a year — or 10 full days spent commuting. But people won’t trade the housing they could get far away for worse near in housing and shorter commutes. However, Los Angeles is not the worst off. The census said that honor goes to New York City, where commuters spend 38 minutes getting to work. After New York, it’s Chicago, Newark, Riverside and Philadelphia, with Los Angeles city residents’ commutes ranking sixth worst in the nation.

  M’self, although I lose the time, I don’t have the stress, for I vanpool to work!

• The Daily News is also reporting that more and more buyers are turning to the Internet to find a home. The 2005 “Internet Versus Traditional Buyers Survey” found that 62% of buyers made the World Wide Web an integral part of the shopping process, up from 56% a year ago. 63% of first-time buyers said the Internet played a crucial role in the transaction versus 46% for repeat buyers. 86% of buyers went online to find an agent while 75% looked for a home, then an agent. 70% of Net shoppers visited Realtor.com, making it the most popular site; 74% of Internet users visited various real estate company sites. The median age of Internet shoppers is 39 (vs. 46). 85% of Internet shoppers have Masters Degrees or better (vs. 74%). Internet shoppers have higher incomes, and found there houses, on average, 5 weeks faster.
• I’ve also been talking about the importance of finding good schools in real estate. Bill and Melinda Gates, of Borg, Washington, have done something about it. According (again) to the Daily News, this obscure couple have unveiled a new $45 million Web site that gives educators, researchers and parents unprecedented access to information about demographics, academic performance and spending patterns at public schools across the county. The site, SchoolMatters, provides an easy way to compare schools. For example, it presents the following information about LA Unifried: 60% of households in the LAUSD have incomes under $50,000, which is about 10% higher than the rate statewide; LAUSD spends $7,385 per student on operating expenses, including $4,741 for instruction, compared with $7,256 statewide, including $4,515 per student for instruction; about 1.5% of LAUSD teachers have doctorates, compared with 1 percent of teachers statewide; and 19.5% of LAUSD teachers have emergency permits, more than double the state average.

More food for thought.