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California Real Estate Trends in 2010
The effects of the economic slowdown were still noticeable across the country in the first quarter of 2010. However, towards the middle of the year, residential rates in some of the larger cities began showing an upward curve. The cities that were most affected were San Francisco, Los Angeles, Long Beach, and San Diego.
Looking at the second half of 2010, I can safely say that residential demand appears more promising. Residential will continue to lead the revival phase, led on by a lowering of mortgage rates and price rationalization in newly launched projects. It also looks the most positive in terms of funding. There is liquidity available for certain typologies and formats, most especially in the affordable housing segment. This segment does not depend overly on international funding. There are two cost-to-developer components in question for such projects. One of these is cost of land, but such projects are located in areas where land costs are low to begin with. The second is cost of construction, which is adequately covered by the down-payments taken on such units. Moreover, such housing formats invariably employ de-frilled mass-construction parameters, which also imply lowered construction costs. I see an increase in private equity funding for affordable housing projects in 2010, since the demand for such projects is inflexible and assured. The emphasis will be on projects by established brand names that show sufficient potential for fast completion and absorption.
For the better part of 2009, the commercial segment uptake remained at about the same level as it was in 2008, when the slowdown was beginning to show its claws in earnest. The health of California commercial real estate is closely connected to the global economy, meaning that Grade A office spaces have largely been about MNC occupiers and the IT/ITES industry. When the financial crunch deepened in the western world, many intending international occupiers put their entry/expansion plans on hold. We are beginning to see the first signs of revival in commercial real estate now, but the process is pretty gradual. For investors, this is the best time to invest in well-researched commercial real estate opportunities. There is, in fact, an increase in investors looking for such opportunities, since the prices are now near the bottom. Long term investment, which is the kind that truly works, will ensure that investors can reap the benefits when the office market shapes up for real in 2-3 years.
Retail had gone through a decisive learning phase in 2009. Like the commercial segment, retail growth depends significantly on the aspirations and spending power of cash-rich IT professionals. When the downturn hit the IT sector, there was a noticeable setback in retail real estate. There had been corrections in rentals and consolidation both at the retailer and market levels. Many unsustainable market models were edged off the map. While 2009 was the year that separated the boys from the men, 2010 is the year of the survivors to make a serious bid at the recovery process. Many players will consolidate their operations and rationalise their business models to dovetail with the newly emerged consumer dynamics. Value retail will be the winning ticket, and we will see the stronger value retail players make calculated plays in key Tier II cities. High end retail is showing a stronger hand in 2010, as well. There will be also a wider acceptance of big brands as returning economic stability infuses buyer confidence into the market. The revenue sharing / minimum guarantee model is gaining acceptance and becoming the norm rather than the exception, bringing this model's prevalence closer to international trends.
The author is chairman and country head, Jones Lang LaSalle Meghraj. Courtesy:- HT Estates dt:- 16-jan-2010. Article Source: http://www.articlealley.com/article_1363818_33.html
How To Get The Best California Home Mortgage Rate
First, make sure you are comparing current California mortgage rates for the same type of mortgage. California home mortgage rates and closing costs can change quite a bit from day to day, therefore, if you're comparing offers from more than one mortgage lender, it should be done on the same day. For example, if you are comparing mortgage rates and receive a quote for a 30-year fixed rate at 5.75%, be sure you only compare it to other 30-year fixed rate quotes at 5.75%.
Next, make sure you compare the total of all points and lender fees for each home mortgage (from section 800 to 813 on the Good Faith Estimate), that will give you the price of the mortgage. The lender with the lowest total cost has the best home mortgage rates.
If you are planning to refinance, you should also review the cost of title insurance, closing/attorney, and appraisal fees. Some large national mortgage companies have negotiated great rates for these services on your behalf. The company who has the lowest combination of total points, fees and third party costs for the same rate and product has the best mortgage rates. For additional home mortgage information, please see our home mortgage page.
Loan Product availability subject to loan amount. Until you lock your rate, A.P.R. and terms subject to change, including rates, points, rebates and fees. Rates and APRs may vary depending on loan details, such as points, loan amount, loan-to-value, your credit, property type, and occupancy. ARM rates subject to increase during loan term. Rates and APRs assume that an escrow account is set up for payment of property taxes, hazard insurance, and mortgage insurance if applicable. This is not an advertisement for credit as defined by paragraph 226.24 of regulation Z.
SureFee is subject to change in the event parameters of the loan change from those presented at the time of application and loan closing, such as but not limited to, a change in the: loan amount, appraised property value, credit score of applicant or type of property.
An additional fee may be added to the Appraisal fee shown above in the event appraiser must make two or more trips to property to complete appraisal process. A second trip is typically needed when construction or renovation of property is not complete at the time the appraiser initially appraises property. Third party fees guaranteed only if Amerisave's preferred providers are used.