Southern CA Market Trends

April 18th, 2022 8:36 AM

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Posted by Steven Rosenblatt on April 18th, 2022 8:36 AMLeave a Comment

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Today, we have some exciting news to share, as Trulia is embarking on a new and exciting chapter. We’ve signed an agreement to be acquired by Zillow, which will enable us to accelerate our efforts to revolutionize the home search process for consumers, help professionals build their businesses and create additional value in adjacent markets. I’m excited about the benefits this combination will bring to the consumers, agents, brokers, franchises and data providers we work with every day. Over the last 10 years, we have successfully built Trulia from the ground up by staying focused on our vision – to fundamentally improve the way that home buyers, sellers, renters and home seekers find a place to live and the way that agents and brokers connect with them to power their businesses. It’s clearly been working and today’s news further validates and invigorates our mission. It is also a reminder that our journey has really just begun. Zillow will acquire Trulia in a stock-for-stock transaction in which Trulia stockholders will receive shares in the combined company equivalent to 0.444 shares of Zillow for each share of Trulia, and will own approximately 33% of the combined company at closing, on a fully diluted basis. At closing, I will remain as CEO of Trulia reporting to Zillow CEO, Spencer Rascoff, and will join the Board of Directors of the combined company. In addition, a second member of the Trulia board of directors will join the board of the combined company. Trulia and Zillow will maintain our individual consumer brands and operate as separate companies. The combined company will offer buyers, sellers, homeowners and renters access to vital information about homes and real estate and provide advertising and software solutions that help real estate professionals grow their businesses. Together, we will create an even stronger organization by bringing together the shared talent, technology and deep industry relationships of Zillow and Trulia. We can align our time, energy and resources into building the best online real estate experience by accelerating innovation on mobile and desktop platforms and providing more valuable tools and services to consumers and professionals. We can also work together and in partnership with the real estate industry to ensure more free data is made available to consumers, which can empower people to make better decisions. With broader and seamless distribution, home sellers, agents, participating brokerages, franchises and MLSs will be able to reach an even larger audience of consumers. Finally, together we can offer shared services and marketing platforms for advertisers to enhance productivity and deliver great return on our customers’ investment with us. Additional Information about the Proposed Transaction and Where to Find It I know this announcement may come as a surprise for some of you. Over the years, in this first chapter, as we have participated in the growth of the industry with Zillow, mutual respect grew. We believe that combining with Zillow will allow us to do much more together than apart. It has never been a more exciting time to be in the real estate industry. Here’s to the next exciting chapter! Additional Information about the Proposed Transaction and Where to Find It In connection with the proposed transaction, Zillow and Trulia expect to file a joint proxy statement/prospectus with the SEC, and Zebra Holdco, Inc. expects to file with the SEC a registration statement on Form S-4. INVESTORS AND SECURITYHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) REGARDING THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and securityholders will be able to obtain free copies of the registration statement and joint proxy statement/prospectus (if and when they become available) and other documents filed by Zillow and Trulia at the SEC’s website at www.sec.gov. Copies of the documents filed by Zillow with the SEC will be available free of charge on Zillow’s website at www.zillow.com or by contacting Zillow Investor Relations at (206) 470-7137. Copies of the documents filed by Trulia with the SEC will be available free of charge on Trulia’s website at www.trulia.com or by contacting Trulia Investor Relations at (415) 400-7238. Certain Information Regarding Participants The respective directors and executive officers of Zillow and Trulia and other persons may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. You can find information about Zillow’s executive officers and directors in Zillow’s definitive proxy statement filed with the SEC on April 17, 2014. You can find information about Trulia’s executive officers and directors in Trulia’s definitive proxy statement filed with the SEC on April 22, 2014. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC (if and when they become available). These documents can be obtained free of charge from Zillow or Trulia using the sources indicated above.

Posted by Steven Rosenblatt on October 28th, 2014 4:01 PMView Comments (1)

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The markets that led the country through the real estate recovery with rapid home value appreciation are cooling off, new Zillow data shows. Zillow’s Real Estate Market Reports for the third quarter reveal a softening real estate landscape. Buyers in San Francisco, Los Angeles, Washington, D.C., Seattle and other hot markets have a better chance to buy a home now than they did a year ago. More inventory is on the market, more sellers are cutting their list prices and home values, while still on the rise, are rising more slowly. Nationally, 18.6 percent more homes were on the market than a year ago. Annual home value appreciation peaked in April at 8 percent and has been gradually falling ever since. Between September 2013 and September 2014, national home values rose 6.5 percent to a median of $176,500. The gradual slowdown is a sign that the market is returning to normal, said Zillow Chief Economist Stan Humphries, and it offers further evidence that there is no housing bubble. “We always knew these market conditions couldn’t last, and it’s good to see us now on a more natural and sustained glide path down toward more normal market conditions,” Humphries said. To dive into our recently released Q3 Real Estate Market Reports, visit Zillow Research.

Posted by Steven Rosenblatt on October 28th, 2014 3:56 PMLeave a Comment

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April 4th, 2014 9:53 AM
California’s housing market is a boom and bust machine tuned to attract the masses. Timing matters in a state where speculation is rampant. Since 2005 California home owners have received over 2,000,000+ foreclosure notices. Of course this goes into the graveyard of foreclosure information that we seem to forget each time the market booms. Since 2000 with shady mortgages, Wall Street financial shenanigans, and the Fed’s low rate policy the housing market in California has only entered into a more pronounced boom and bust carousal. People go into a deep herd mentality that fails to acknowledge even recent history. If you timed the market say two years ago and went with the record low rates at the time plus lower prices, then does that mean prices today are too high at 20 to 30 percent increases with interest rates 100bps higher? That $500,000 home probably worked at low rates but what about it at $650,000 with higher prices? Incomes certainly did not keep pace. Investors are still buying roughly 30 percent of inventory. This group is also slowly pulling back and it should be no surprise that inventory is rising and prices are actually stalling out. Since 2000, the California housing market is a wild ride of speculation. Buying and selling is a matter of timing, luck, and larger macro forces at work. We acknowledge this and for most, buying or selling is a decision that needs to be made in real-time. Is it a good time or bad time to buy today based on my specific factors? Yet let those 2,000,000+ home owners who got a taste of the foreclosure process serve as a warning that not all purchases are golden in the Golden State.

Posted in:General
Posted by Steven Rosenblatt on April 4th, 2014 9:53 AMLeave a Comment

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April 4th, 2014 9:53 AM
The appraisal Dealing with a bad appraisal Most appraisers are very competent and professional. Homes are usually appraised for the selling price and there’s no problem. Appraisers compare your home against three similar homes that have sold in your neighborhood in the last six months, usually within 15% of the price of your home. The more similar they are to your home, in sales price, age, style, size, etc., the more likely they will be used as a comparison. Your home could be appraised low for two reasons: first, because it simply isn’t worth the sales price or two, because unfortunately, it was a flawed appraisal. Be proactive: Aggressive methods to solve appraisal problems are very effective because both parties want to see the sale succeed. But they are typically not done since the appraisal opinion is simply accepted as gospel. Your home’s selling price should be in the range of its actual value if you followed the recommendations from the PRICE section. If there were errors performed during the appraisal, there are steps you can take to eliminate this problem. Take action: •Find out what your home appraised for. If there is a problem and you’re selling by-owner, you’ll probably get a call from the buyers. Remain calm. Tell them that this happens all the time. Ask to take a look at the appraisal and let them know that there are always areas that the appraiser missed or was given incorrect information. Try to arrange to get a copy of it–ASAP. •If the buyers aren’t cooperative, ask them what their position would be if the appraisal matched the selling price. This will tell you that they still want to buy your home or if they have soured on the deal. If they still have interest, let the buyers know that the appraisal was done in error and that you’re working to solve this problem. •If you get a low appraisal, insist on a second opinion–always with a different appraiser. After all, you never ask for a second opinion from the same doctor. Do not disclose to the second appraiser that this is a second evaluation. Professionals don’t like knowing their work will be compared to a fellow practitioner. •If the buyers are unable to supply a copy of the appraisal, ask the appraiser or the lender for one. You may have to be insistent here since the lender will point out that you didn’t pay for it, the buyers did. If you’re not getting anywhere, ask to speak to a manager and explain your dilemma. •If you run up against roadblocks, get a list of the homes that were used to compare against the subject property (your home). •Find out what you can about the properties your home was compared to. The appraiser saw the inside of your home, but not the inside of the comparable homes. The appraisal could have been based on false or erroneous information on those homes. Information on the comparable houses is often taken from the MLS, which is filled with flowery hype and may contain inaccurate information. •Appraisers like to use local comps that sold in the last six months, but will bend this guideline if local turnover has been slow. They also might have to go out of the local vicinity for like comparisons if your home is hard to compare against, like finding a decent selection of older mansions, contemporaries, log houses, etc. •Being a current home seller, you should be aware of recent sales activity in your neighborhood, both listed and by-owner. For sale by owner homes don’t appear in the MLS and appraisers usually don’t bother using them for comps. •See if any homes were not used as comps that are similar to yours and sold during the past year. Don’t be concerned about using homes that sold for less than your selling price (but are within 15% of your contract price). Adjustments are applied for differences in order to establish a similarity in comparison. Differences are found in square footage, lot size, number of bedrooms, fireplaces, basements, etc. •In addition, appraisers may have missed using a good local comparison home because it recently sold and the sales details had not been recorded when the appraisal was performed. In many counties, updating of tax records are often backlogged for weeks. MLS records are not always current and an occasional sale can slip through unrecorded. If your home didn’t appraise to the selling price, look for every opportunity for a comparison sale that will make your case. Other considerations: There are properties you don’t want yours to be compared against. The appraiser could have used one as a comparison to your home. Houses used for comparison could have sold under market value because the owners were in a must-sell situation. For instance, in an estate sale, the heirs may decide to quickly accept a low offer, since there isn’t the usual incentive to maximize the profit that will be divided. Or, if the buyers and sellers are related, the price is always lower than normal. And, a house that had a fire or a suicide are often stigmatized. There are any number of reasons a home sells for less than what its real market value should be. Did your sale include a lot of personal property (washer, dryer, refrigerator, freezer, riding mower, pool table, etc.)? Possibly you could adjust the contact price down and have these items paid for separately by the buyers as they are considered personal property and are not included in the appraiser’s estimated value of your home. Appraiser errors: Appraisers have been known to make factual and judgment mistakes. The human element can cause appraisers to unintentionally slant an appraisal against your home due to such things as bias against old homes, certain neighborhoods, styles of home, pets, etc. Appraiser Mistakes Appraisers face potential lawsuits and disciplinary actions from their state regulatory agencies for incompetent appraisals. Actual mistakes and violations that have caused inaccurate appraisals include such things as: • Using a comparable property that was significantly dissimilar to the subject • Using comparison houses that were in inferior condition and value • Inaccurately citing the location of the subject neighborhood • Incorrect basement description, property design or square footage • Inaccurate room listings or number of valid bedrooms • Excluding the condition rating on the interior of the property • Incorrectly citing ages or quality of construction of comparable properties • Failing to identify prevailing market conditions of the neighborhood • Not realizing that the subject property was located on a similar sized lots • Failure to reflect that there were multiple offers, justifiably driving up the buyer’s price • Failing to factor in external conditions (close to apartments, traffic, high tension lines, etc.) • Failing to note that a comparison property didn’t have a garage, basement, or fireplace, etc. • Using courthouse records containing errors like inaccurate square footage on subject property • Failing to accurately reflect the prior sale date of comparison properties • Incorrectly citing room description and heat source of comparable properties • Improperly including a garage that was within a basement area • Using excessive costs for a similarly finished basement in a comparison property If you felt your appraisal contained unfavorable errors, these examples are legitimate reasons for having a second opinion.

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Posted by Steven Rosenblatt on April 4th, 2014 9:53 AMLeave a Comment

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