Monthly Archives: January 2012

Inside the Market: California News and Market Updates

January 26, 2012


“California Foreclosure Actions Slow in Fourth Quarter”

The number of California homes entering foreclosure in the fourth quarter fell 11.9% from the same period a year earlier to hit its second-lowest level over the last four years…

Los Angeles Times


“Investors flood Southern California housing market in December”

 A record number of investors and second-home buyers flooded the Southern California real estate market in December, though not enough to give sales in the region a bump over the same month a year earlier.

Los Angeles Times


“Rate on 30-year mortgage down to record 3.88%”

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year fixed mortgage dipped to 3.88 percent this week, down from the old record of 3.89 percent one week ago.

Los Angeles Times


To download the articles from this segment, click on the following links

California Foreclosures

Investors flood Southern California housing market in December

Rate on 30-year mortgage down to record 3.88%

Good Things Come in Threes: Casey Lesher’s Three Philanthropic Contributions Support Long Standing Traditions and Honorable Causes

Teles Properties’ unwavering commitment to community is evidenced by the work of its altruistic members. One member in particular, real estate agent Casey Lesher of Newport Beach, is exemplifying this commitment through his work with the Corona Del Mar Chamber of Commerce. More specifically, through his undertaking of three major philanthropic events in 2012.

“The Corona del Mar Chamber of Commerce is very proud to have the support of Casey Lesher throughout the years.  Casey’s generous contributions to the community and his active membership has been a true example of a dynamic community partner.  Casey’s strategic business knowledge and dedication to the community he serves is truly a pleasure and undoubtedly contributes to his successes in the Real Estate,”  says Linda Leonhard, President, Corona Del Mar Chamber of Commerce.

On June 2nd, Lesher will sponsor the 31st Annual Corona del Mar 5k, where people from all over the state are invited to participate. Presented by the Corona del Mar Chamber of Commerce and City of Newport Beach, this event draws thousands of people each year for a scenic race (or walk as some may prefer) along the enchanting streets of Corona Del Mar. The race ends along the bluffs of Big Corona State Beach with restaurant row, merchant booths and live entertainment for all to enjoy afterward. Proceeds from the event assist community youth, senior and business programs.

In September, Lesher sponsors the Coastline Car Classic, a seaside celebration of the automotive pursuit. This highly publicized and very worthwhile charitable event provides a meaningful contribution to the Pediatric Cancer Research Foundation. Established in 1982, the foundation is dedicated to improving the care, quality of life and survival rate of children with malignant diseases. For more information on the foundation, please visit

To close the year, Lesher will sponsor the 34th Annual Corona Del Mar Christmas Walk, benefitting the U.S. Marines Toys-for-Tots Program. The event draws thousands of people to the streets of Corona del Mar to enjoy a variety of live entertainment including musicians, stilt walkers, balloon artists, carolers, dancers, bounce houses, vendors, opportunity drawings, Santa visits, and much more. This year, visitors are strongly encouraged to bring unwrapped toys to one of the many drop stations throughout the village. For more information on U.S. Marines Toys-for-Tots Program, please visit

The Corona del Mar Chamber of Commerce serves as a strategic business resource dedicated to developing the local business environment and enhancing the quality of life in Corona del Mar. The Chamber works closely with the Business Improvement District and the City of Newport Beach. They continue to take a strong position to preserve the charming seaside village atmosphere while supporting the enhancements of physical improvements and new trends in the heart of the village.

Teles Properties provides an incomparable experience throughout Southern California with offices in Beverly Hills, Brentwood, Pasadena and Newport Beach. Its leadership team brings a broad spectrum of knowledge in technology, research, finance, legal services and luxury residential sales to the forefront of real estate. The company welcomes only the most productive, talented, and professional agents and staff. Together, the Teles team uses its experience to give clients the finest buying or selling experience possible. For more information about Teles Properties, visit

For more information about getting involved in these events please contact Casey Lesher,,  ph. 949.702.7211

Housing Affordability Index Insight

The Housing Affordability Index is at an all-time high, meaning more and more people are able to afford a home in today’s market conditions.  The following article and summary is provided by Lawrence Yun, Chief Economist at the National Association of Realtors.

Affordable Housing Real Estate Resource: Housing Affordability Index

Housing affordability will be at its highest in a generation this year.

The affordability index is comprised of median home prices, median family income, and the prevailing mortgage rate. An index of 100 implies that a median income family has just enough income to buy a median priced home. An index of 120 implies that a median income family has 20 percent more income than is necessary to buy a median priced home. The index reached an all-time high (since the data creation in 1970) of 174 in 2010. This year, it looks to surpass 180. The rising affordability is a combination of lower home prices, record low mortgage rates, and a slight rise in family income.

In short, there hasn’t been a better home buyingopportunity in 40 years.  However, not all people have the necessary confidence to make a major expenditure like a home purchase in an uncertain economic environment. More importantly, the underwriting standards are overly stringent. Those who are currently able to get conforming mortgages have an average credit score of 760. Under normal underwriting standards (and not the lax underwriting of the bubble years), credit scores would be closer to 720 on conforming mortgages. For FHA mortgages, today’s borrowers have an average credit score of 700, compared to historic FHA borrowers who had an average credit score of 660. If the underwriting standards were just to return to normal then there could be an additional 15 to 20 percent increase in home buying activity.

Banks have plentiful cash reserves but are unwilling to lend. They are blaming the regulators, saying extra cash holding is needed in case of another catastrophic economic event and because the banks are uncertain about future regulatory rules. Under these circumstances any additional attempts by the Federal Reserve to lower interest rates via another third round of Quantitative Easing (QE3) and printing more money would be inconsequential to the housing market. All the while, printing money could pose higher inflation risks in the not-too-distant future. Simply getting the excess cash holdings held by the banks out to the borrowers will be the true, natural stimulus for the economy.

To see the Housing Affordability Index numbers and read more articles, click here.

Inside the Market: 2012 is Here… Where Will it Take Us?

2012 is here and has brought New Years’ resolutions and goals to help make it the best year yet.  Start it off right by understanding what happened in 2011 and where we are headed in 2012.  The collection of articles this week for Inside the Market looks at some predictions and trends we will see in 2012.

January 9 – 13, 2012


“Low mortgage rates likely to continue through 2012, experts say”

But with high unemployment and home prices still falling in many areas, analysts say there is little chance for a housing recovery.

LA Times


“4 predictions about 2012 real estate market”

With 2012 upon us, many of us have set resolutions, goals or visions for what we would like to accomplish this year.  Here are 4 predictions about the real estate market we might want to take into account.

Inman News


“Bridging the great divide between home buyers and sellers”

With mortgage rates below 4% and prices near bottom in many markets, it’s a good time to buy a house. But many owners won’t sell because they can’t get the price they want.

LA Times                 


To download the articles from this segment, click on the following links

Low mortgage rates likely to continue through 2012

4 predictions about 2012 real estate market

Bridging the great divide between home buyers and sellers


December 2011 Micro Market Report will also be out this week so look for that to compare 2010 to 2011 and see how the market in your area finished in 2011.


Teles COO Sharran Srivatsaa to speak at the 2012 Inman Real Estate Connect Conference in New York City

Sharran Srivatsaa, Chief Operating Officer at Teles Properties will speak at the 2012 Real Estate Connect Conference in New York City, which will be held from January 11 – 13 at the Marriott Marquis Time Square.

Srivatsaa will speak on the “Power of Analytics,” a topic close to his heart, and will outline the insights from the creation of Teles Intelligence, a data analytics think tank that will launch in February 2012.

“Research and Analytics has been one of the foundational pillars of Teles since the very beginning,” said Peter Loewy, CEO of Teles Properties. “Sharran brings a unique background and skillset to take our offering to the next level with Teles Intelligence. We are excited that he is going to share his passion for the topic and his insights on the process with the leaders in our community at the Real Estate Connect Conference.”

Links to the conference:

About Teles Properties

Teles Properties was founded in Beverly Hills in 2007 by a group of real estate veterans who believed that there was a more modern and efficient way to represent residential real estate. Since then, Teles has proved itself to be a progressive, technology-oriented boutique real estate firm serving key markets in Los Angeles and Orange counties. With offices in Beverly Hills, Brentwood, Newport Beach and now Pasadena, Teles recently launched an International Division to link buyers to properties around the globe.

For more information, please contact Peter Hernandez at 424-203-1800.

The Top Price Declining Zip Codes in Los Angeles… And Some Might Surprise You!

The Los Angeles County median home price is down 6 percent year over year.  This in itself fails to highlight the deeper changes occurring in the most populated county in California.  If we look back at 2011 we see that it was a year of corrections for the mid-tier and upper-tier segments of the market.  This trend is likely to continue with even the most prime locations in Corona del Mar and Beverly Hills showing that they have plenty of shadow inventory to work through in 2012.  Los Angeles County is full of cities so the 6 percent drop only tells you very little.  If we break out the top declining zip codes the picture is very different today from 2008 and 2009 when low hanging fruit was selling for massive price cuts.  Today those price cuts are hitting fully in areas like Culver City, Burbank, and Pasadena which we predicted for a few years based on area household incomes.  Let us look at the top 20 falling zip codes for 2011 in Los Angeles County.

To see the full list of the Top 20 Price Declining Zip Codes and read the rest of the arcticle, click here.