Underneath this apparent good news, however, were some disquieting signs of deterioration.

The Standard & Poor’s/Case-Shiller home price index, a widely watched measure of the housing markets in 20 metropolitan areas, rose 0.4 percent from September on a seasonally adjusted basis. It was the fifth consecutive month that prices were up.

But seasonal adjustments tend to hide any weakness in the cooler months, when fewer houses are sold. On an unadjusted basis, the index was flat in October.

“We’ve started to see the possibility of either a leveling off of prices for a few months or perhaps a double-dip,” said Maureen Maitland, the vice president for index services at S.& P.

Analysts have predicted for months that prices will resume their slump this winter, although most expect the drop to be moderate.

Housing remains under severe stress, and the government’s extensive and expensive support of the market is reaching its limit. While the tax credit has been renewed until next spring, its effects will probably diminish. And the Federal Reserve says it will gradually end its program to push down interest rates in the first quarter, in effect making houses more expensive.

Meanwhile, foreclosures are continuing to affect the market, and credit remains tight.

Dan Greenhaus, chief economic strategist for Miller Tabak and Company, wrote in a research note that “it is more than likely that prices have a bit further to fall which should help continue supply/demand rebalancing and help fix the ongoing issues in the housing market.”

The Case-Shiller index is down 7.3 percent from October a year ago and is off 29.5 percent from its peak.

Prices fell or were flat in nine of the 20 cities surveyed in October, the same as in September. But the recovery is beginning to diverge sharply by metro area, Wells Fargo’s chief economist, John Silvia, noted.

In the last three months, prices in San Francisco increased at an annual rate of 25 percent while Minneapolis was up 17 percent and Los Angeles rose 11 percent. Phoenix, long a laggard, rose 13 percent.

But New York, Portland and Boston were up less than 2 percent.

Las Vegas, the epicenter of the housing crash, shows no signs of recovery. Prices have fallen there for 38 months, and are now barely above the level at which they began the decade.

From the New York Times

The Valerie Fitzgerald Group specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of Heart and Sold: How to Survive and Build a Recession-Proof Business.

But don’t be too jubilant. A recent report by Deutsche Bank estimates that by 2011, about 48 percent of all U.S. mortgages will be underwater. Short sales and foreclosures will continue to put pressure on home prices in 2010 as they work their way through the pipeline slowly. It was apparent in 2009 that lenders were holding back much of their foreclosure inventories and REO, or real estate-owned property, in an effort to keep values up.

Meanwhile, housing’s biggest economic driver — the job market — continues to stagnate as average unemployment remains high, at around 10 percent. So it’s no surprise the new year will ring in another buyer’s market, though with far more upside than in 2009. With that as a backdrop, here are 10 real estate tips for homebuyers and owners in 2010.

Tip 1: Take up Uncle Sam on his offer.

Might as well get a piece of that big stimulus pie while it lasts. At some point, the federal government will have to let the toddler walk on its own legs.

The $8,000 first-time homebuyer tax credit program that helped jump-start the real estate market in 2009 has been extended into 2010 and expanded. First-time homebuyers who sign a binding contract to buy a home by April 30, 2010, and close on it by June 30, 2010, qualify. The program’s maximum income limits have jumped from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for couples.

For those who have owned their homes for at least five years and want to trade up to a different primary residence, a separate $6,500 tax credit has been added. Further, many homeowners who are underwater in their real estate loans are eligible for a loan-modification program with their current mortgage company or loan servicer through the Making Home Affordable Program.

Tip 2: Find down payment assistance.

There are several down payment assistance programs for first-time homebuyers at the federal and local levels. Other down-payment assistance programs that can piggyback ongoing federal programs are often available at the city, county and state level. Just conduct an Internet search for “down-payment assistance programs” with your locality’s name added.

Tip 3: Make home improvements now.

For households with access to credit, now may be the best time in years to fix up the homestead, either for a potential sale or simply for the sake of better living. Low financing costs, reduced construction materials costs and lower contractor costs make rehabs more affordable. Repairs that typically yield the highest returns are kitchen and bathroom makeovers with an emphasis on counters and cabinets. Get three different estimates. Then, factor in an additional 10 percent for those on-the-fly “change orders” that inevitably crop up. See home improvement strategies and checklists at Homegain.com.

Tip 4: Hire real estate agents and home inspectors wisely.

Now is not the time to hire a friend or relative as your real estate agent, especially with one of the most important transactions of your life on the line in this still-shaky market. You want someone who is well-connected with other agents, lenders and other fellow industry pros. Check credentials, references and recent performance histories.

If you’re hiring an appraiser, make sure he or she is a veteran with at least five years of experience who’s appropriately state-licensed or state-certified. Because of potential conflicts of interest, don’t pick one based solely on a reference from a real estate agent. The same diligence should apply to hiring a home inspector. Conduct reasonably brief phone interviews with at least two or three before you choose.

Tip 5: Price accordingly, sellers.

This should be on every real estate seller’s priority list. In most of the U.S., there are few reasons that a house can’t go under contract in 60 days or less. The listings that generate activity while others gather dust are typically those whose owners have adjusted expectations based on comparably priced homes, or “comps.” That doesn’t mean you should drop your price precipitously on your well-maintained home to undercut the litany of poor-condition foreclosure homes. It just means “price to the present,” not to a fantasy market.

Tip 6: Don’t wait out the recovery.

Yes sellers, housing has been repriced. And by the looks of things, it will take years — even a decade or more — for values to return to their highs of two years ago. That potential loss you’re fretting over may only be on paper, especially if you’ve been in the house awhile. Example: Take a move-in-ready house that appraises for $250,000. Because there’s competing inventory, your agent advises you to take 10 percent off the price. Now you’ll be selling for $225,000. “Ouch,” you might say. But consider that you only paid $175,000 for the place in 2000. So how is a $50,000 profit, a loss? What’s more, if you’re planning to move up in the same or a similar market, you will likely realize that same 10 percent discount on your move-up purchase.

Tip 7: Think long term.

Buyers, don’t settle for “good enough.” Just because you’re getting a bargain doesn’t mean you’re getting a home that suits your long-term needs. Think functionality, neighborhood, location, access to services, highway access, work routes, schools, relatives and mass transit, and not price only. Do your homework, keep a cool head and carefully examine all the options. If you can spare the time, give yourself an extra month or two to make a decision. A house is a habitat first, an investment second.

Tip 8: Energy largesse.

Through Dec. 31, 2010, homeowners who buy and install specific energy-efficient windows, insulation, roofs, doors and heating and air-conditioning equipment can get a 30 percent tax credit for up to $1,500 of their costs on each product.

If you want to take it a step further, you can buy greener (and more expensive) energy-saving products, including solar energy systems, geothermal heat pumps, small wind systems, residential fuel cells and micro-turbine systems, and get 30 percent tax credit with no spending limit on each system, through 2016. Go to EnergyStar.gov’s Federal Tax Credits for Energy Efficiency for a complete summary.

Tip 9: Consider rent-to-own deals.

The current market has driven many former homeowners into rentals, where they have nothing to show for their payments. Rent-to-own or lease-to-own deals allow buyers to “tire-kick” a home for a designated period while paying a higher-than-market rent to buy down an eventual down-payment. This gets renters vested in a home while they repair their credit and also helps frustrated sellers generate an above-market revenue stream. Make sure to draft a very specific contract that spells out all the options.

Tip 10: Don’t take or make it personal.

Our homes have such a personal connection to us that we’re often challenged to turn them back into just plain houses when it’s time for us to sell. It is always best to remove personal effects such as pictures, knickknacks, mementos, trophies, greeting cards and the like before showing a house. (A good agent or home-stager should emphasize this.) There is a rule of thumb that you should count every item in every room of a for-sale home and eliminate or store 50 percent of them.

The buyers want to imagine themselves in the house for years to come and your excess decor and whatnots only distract from this vision. And don’t get defensive about colors or design patterns or flooring that you love. It’s OK to grit your teeth as you grin. Let your agent be the buffer. Remember, the customers (your buyers) are always right, unless, of course, they’re low-balling you.

From Bankrate.com

The Valerie Fitzgerald Group specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author o fHeart and Sold: How to Survive and Build a Recession-Proof Business.

Those of us who live and breathe residential real estate are well aware of the adverse effects this process can produce for both buyers and sellers, and how much more difficult it can make a successful close of escrow.

One of the key problems is the lack of knowledge these outside appraisers have on local residential markets. This brings into question: who really understands the true value of a home? Is it the experienced real estate agent, the buyer making the offer, or the appraiser crunching numbers based solely on statistics, who has never seen comparable properties? Does the appraiser know how to take into account the condition of the property, whether it’s been recently remodeled, the amount of flat land, the views, or the better location?

If you knew that when you bought or sold a home after May 1 of this year that your real estate agent was not allowed to speak to the appraiser, wouldn’t you be concerned? Isn’t it important for our professions to be working together and sharing important information about the market and home values? I’ve seen a number of deals fall through lately — at the last minute — because an appraiser who usually works in the Valley or Orange County turned in an appraised valuation that was far off the escrow sale price. As you can imagine, this can cause a deal to fall apart.

As professionals we were all on the same team until this change came along — make your concerns heard! CAR is supporting legislation that would put an 18-month moratorium on this new procedure, and I encourage you to contact your local legislators and ask them to do the same.

Here’s to all of our success!

Appraisal SHAKEUP

HOW TO COPE WITH THE NEW RULES FOR APPRAISALS

Challenging. Problematic. Wild. Bizarre.

These are but a few of the choice words REALTORS® have used to describe the new Home Valuation Code of Conduct (HVCC), which dictates certain practices lenders must follow with respect to appraisals related to loans they intend to sell to Fannie Mae or Freddie Mac.

The HVCC was worked out through an agreement between Fannie Mae, Freddie Mac, and the New York Attorney General’s Office (NYAG) in response to an investigation by the NYAG into Fannie and Freddie. The purpose of the HVCC is to insulate the appraisal process from undue influences by placing tight controls and restrictions on the ordering of the appraiser, as well as guidelines for communicating with the appraiser during the process. HVCC is a private agreement.

HVCC does NOT apply to FHA or VA loans.

The code, which became effective May 1, specifically prohibits practices that may influence or attempt to influence an appraiser’s opinion of a home’s value. For example, the code requires lenders to order appraisals themselves, rather than accept any appraisal completed by an appraiser who was chosen, hired, or paid by a mortgage broker, real estate agent, or other third party. The code allows an appraisal to be transferred from one lender to another, but only if the original lender gives written assurance that the appraisal is HVCC-compliant and the new lender accepts that assurance.

REALTORS Report HVCC Snafus

The HVCC mentions real estate brokers only parenthetically, yet REALTORS® have reported a variety of negative effects on real estate sales transactions.

Specifically, REALTORS® have noticed:

> A significant (and otherwise inexplicable) increase in the cost of appraisals.

> Valuations that have differed dramatically from perceived market values.

> An increase in alleged factual errors in appraisals.

> Delays of several days or as long as three weeks in completion of appraisals.

> Appraisers who’ve been assigned to value properties as far as 40 miles away.

New Rules Require New Practices

So how can REALTORS® cope with those challenges? Here are some suggestions:

>Allow for delays. Mary Lynn Pinto, a mortgage broker and broker/owner of Bayshore Real Estate Services in Salinas, says brokers need to write into real  estate sales contracts longer timeframes for removing appraisal contingencies. “The recommendation is to allow more time for contingency removal and contract periods,” she says. “We have a little less control than we used to in setting the contract dates.”

> Qualify the appraiser. Guy Rivera, a senior loan officer with Pacific Riviera Mortgage in Santa Barbara,

says REALTORS® should qualify the appraiser when he or she makes an appointment to inspect a home.To do so, the REALTOR® should ask about the appraiser’s experience and knowledge of the local area, Rivera suggests. A few questions REALTORS ® might want to ask are:

* How long have you appraised homes in this area?

* How many properties do you typically appraise in this area each month?

* How many properties do you typically appraise each day or on a given day?

* What are your data sources and how often are those sources updated?

If an unqualified appraiser shows up to inspect a home, the REALTOR ® should not let him into the home, Rivera suggests.

“We sent back a Ventura County appraiser who came up to do an appraisal in Santa Barbara County. We sent him away,” he says.

> Offer comparable sales data. The HVCC states: “It would be inappropriate for an appraiser to use

comparable sales data provided by the real estate broker who is handling the sale of the subject property, unless the appraiser verifies the accuracy of the data provided with another source and makes an independent investigation to determine that the comparable sales provided were the best available.”

That seems to suggest REALTORS ® can provide comps, but appraisers may choose to refuse, reject, or ignore the REALTOR ® ’s information if the appraiser can’t verify the accuracy of the information or

determines that other comps are better suited for the purposes of the appraisal.

Pinto says the REALTOR® should give the appraiser a current comparable market analysis (CMA) and explain the local market areas, even though that extra effort may be burdensome and the appraiser’s response may be disappointing.

“Don’t pull out the CMA you did to get the listing and hope that will work. You have to update it and give it to the appraiser at the time of the inspection. Don’t wait until after the inspection, and don’t do it through the lender,” she advises.

Here’s a related tip from Rivera: The REALTOR® may want to black out the sales prices on the comps that are given to the appraiser to allow him or her to accept the information and look up the details as part of his or her own investigation.

“Black out the prices, but have like properties and educate the appraiser as to the neighborhoods,” he suggests.

> Complain to Congress. REALTORS ® may have little opportunity to lodge formal complaints about the

HVCC through the mechanics of the code itself since the Independent Valuation Protection Institute (IVPI) envisioned within the code has not been implemented. The IVPI was supposed to set up and operate a telephone hotline and e-mail address to receive complaints.

Given that lack of redress, REALTORS ® should call their elected representatives and make their concerns heard, Pinto suggests. California Congressman Gary Miller has introduced H.R. 3044, which would place an 18-month moratorium on the recently imposed HVCC. C.A.R. is supporting H.R. 3044, and is asking California’s Congressional Delegation to sign onto the bill as a cosponsor.

“We are working hard to get an 18-month postponement,” Pinto says. “I would encourage REALTORS® to get a hold of their Congress people.”

HVCC Help

Office of Real Estate Appraisers: Stay abreast of California HVCC developments at www.orea.ca.gov.

Home resales increased 10.1% to a seasonally adjusted annual rate of 6.1 million units in October from a downward-revised pace of 5.54 million in September, according to the National Assn. of Realtors in Washington. The October figure was up 23.5% from the seasonally adjusted annual rate of 4.94 million units a year earlier. The last time the sales pace was that swift was in February 2007.

The buying was motivated by low interest rates, a credit for first-time buyers and cheap housing, the association said. The national median home price — the point at which half the homes sold for more and half for less — was $173,100 in October, down 1% from September and off 7.1% from October of last year. Whether the stabilization of the housing market will continue remains a subject of debate among housing analysts and economists.

In a note to clients Monday, Patrick Newport, U.S. economist for IHS Global Insight, predicted a sales plunge in December, with mortgage loan volume tracked by the Mortgage Bankers Assn. recently dropping to a level not seen in 12 years.

“This surge may last one more month” into November, he wrote.

The Realtors group lobbied heavily for the extension and expansion of the controversial $8,000 credit for first-time home buyers passed by Congress this month. The group contends that the credit has helped motivate buyers and spur sales. Others argue that the credit, which has been plagued by misuse and fraud, has simply been a giveaway to buyers who would have purchased a home anyway.

The expansion of the credit to include a $6,500 incentive for some current homeowners probably will spur some sales, though many are likely to come from people downsizing into smaller, more affordable homes, said Cameron Findlay, chief economist at LendingTree.com. Soaring joblessness is expected to weigh on the housing market for months.

“Certainly, unemployment will be a factor in this equation, and I don’t see any short-term solution for that one,” Findlay said.

In the West, including California, home resales rose 1.6% to an annual rate of 1.31 million in October and are 12% above a year earlier. The median price in the West was $220,200, which is 14.7% below that of October 2008. It was the weakest performance for sales and housing price improvement among the four national regions.

The selling pushed the resold-home inventory at the end of October down 3.7% to 3.57 million, which represented a seven-month supply at the current sales pace, according to the Realtors group.

Distressed properties — foreclosures or homes whose owners are delinquent on their mortgage payments — accounted for 30% of U.S. sales in October.

From LA Times

The Valerie Fitzgerald Group specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author o fHeart and Sold: How to Survive and Build a Recession-Proof Business.

The number of foreclosures — default notices, scheduled foreclosure auctions and bank repossessions — was down 3% in October from September, though that number is still 19% higher than in October 2008.

One out of every 385 housing units in the U.S. received a foreclosure filing in October, according to the report. The dip in the number of filings was a positive sign. But James J. Saccacio, chief executive officer of Irvine-based RealtyTrac, said in a statement that the moribund economy and the potential pitfalls facing the housing market could imperil any housing rebound.

“Three consecutive monthly declines is unprecedented for our report, and on first blush an indication that the foreclosure tide may be turning,” he said. “However, the fundamental forces driving foreclosure activity in this housing downturn — high-risk mortgages, negative equity, and unemployment — continue to loom over any nascent recovery.”

Nevada, California and Florida posted the highest foreclosure rates out of all the states. California had the second-highest rate, after Nevada, with one in every 156 housing units receiving a foreclosure filing in October.

A total of 85,420 California properties received a foreclosure filing during the month, a decrease of 1% from the previous month but still nearly 50% above the total reported in October 2008, according to the report.

California’s default notices and scheduled foreclosure auctions were up 120% and 73% respectively from October 2008, when California foreclosure activity was in the midst of a three-month lull after a state law required lenders to give troubled homeowners extra notification before beginning foreclosure.

With financing still tight and so many cheap foreclosure properties on the market, it is no wonder that few people are buying new homes these days. A report by the California Building Industry Assn. confirmed that new-home sales continued to drop in September.

The report shows that sales in new-home communities of 10 units or more were 11% below September 2008, with only 2,310 new homes and condominiums sold, compared to 2,580 in September 2008.

In the Los Angeles-Long Beach-Glendale region 300 new homes were sold in September, a 9% increase from the 273 sold in the same month one year prior.

From L.A. Times, Alejandro Lazo

The Valerie Fitzgerald Group specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author ofHeart and Sold: How to Survive and Build a Recession-Proof Busines

Whether you are looking for a solid real estate investment, need a residence in Los Angeles as your U.S. home base when you visit family, children and clients, or seeking a maintenance free primary or secondary home with the most modern amenities and 24-hour concierge access/valet/doorman…The Carlyle Residences are the answer.

The high rise luxury condominium offers its residents 24-hour white glove concierge modeled after a luxury hotel, and amenities including a fitness center designed by The Sports Club L.A., a private wine cellar and dining room, club room, a custom designed Chihuly glass sculpture and furnishings by Fendi Casa, as well a separate staff quarter units so they can also live on the property.

Watch these videos to catch a glimpse of what living at The Carlyle is like. For the rest of the videos visit The Carlyle Residences on YouTube.

The Exterior

The Lobby

The Pool

The Carlyle Residences are represented exclusively by Valerie Fitzgerald, a Beverly Hills real estate broker who has more than 20 years luxury real estate experience in the West Los Angeles area. For more information visit The Carlyle Residences.

The Carlyle Residences
10776 Wilshire Boulevard
Los Angeles, CA 90024

Model Residences Open: Monday to Friday 10 a.m. to 5 p.m. and Weekends 12 to 4 p.m.

To Schedule an Appointment Call: 310-209-0000.

The Valerie Fitzgerald Group specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author ofHeart and Sold: How to Survive and Build a Recession-Proof Business.

President Obama signed legislation Friday to extend unemployment benefits to American workers. The law also includes provisions that vastly expand the number of people eligible for home-buyer credits by boosting the income eligibility limits, giving buyers more time, creating a $6,500 credit for longtime homeowners and launching more-accommodating rules for members of the military. Here are the details.

The $8,000 credit

If you were locked out of the first-time home-buyer credit in the past simply because you earned too much, there’s good news.

Now you can qualify for the full $8,000 first-time home-buyer credit with a single income of up to $125,000 and married income of up to $225,000. Those who earn more will be phased out.

The credit ends completely once single income exceeds $145,000 and married income exceeds $245,000. Still, that’s a big boost from the previous law that shut off the credit for singles earning more than $95,000 and married couples who earned more than $170,000. Other eligibility rules…

* You must not have owned another home for at least the previous three years.

* You must buy a home (or have a binding contract to buy) by April 30, 2010. Under the new law, if the sale doesn’t close on time, you can still get the credit as long as you’ve got a binding contract on the ending date, said Jackie Perlman, tax analyst with the Tax Institute at H&R Block in Kansas City.

* You must be older than 18 and not claimed as a dependent by any other taxpayer.

* The property you purchase cannot have been acquired from a relative.

* You must attach a copy of your settlement statement with your tax return to claim the credit.

* Most buyers also must continue to own this new home for at least three years. If they sell in less time, the government will demand that they pay the credit back, said Clint Stretch, director of tax policy with Deloitte Tax.

Special rules for military

The government will not require repayment of the credit if you are a member of the military and had to sell or stop using the home as a residence because of extended duty, however.

In addition, those serving outside of the U.S. during any part of 2009 or early 2010 will get an additional year to claim the credit. In other words, the credit ends for most people on April 30, 2010, but it lasts until April 30, 2011, for active-duty service members working overseas.

The $6,500 credit

The new law carves out an additional credit for current homeowners.

If you have owned and lived in a home for at least five consecutive years of the last eight years, you could qualify for a $6,500 tax credit, if you buy a new home between now and April 30.

The “five-of-eight” requirement means that this credit could accommodate people who lost their homes in the last year or two to foreclosure or even sold a house and didn’t immediately replace it, said John. W. Roth, senior tax analyst with CCH Inc., a Riverwoods, Ill., publisher of tax information.

Would you have to sell your residence for it to qualify for the $6,500 credit, if you wanted to buy a new one? Not necessarily, Roth said. The home you purchase must become your principal residence, so you would have to move there. But nothing in the law says you cannot keep your existing residence as a second home or rental, he said.

If you do choose to sell your existing residence, you need to pay close attention to how much you earn on that sale, Stretch said. That’s because taxable profits from the sale of your residence will be added to your other earnings to determine whether your adjusted gross income exceeds the allowable thresholds.

This credit also phases out for singles earning more than $125,000 and married couples earning more than $225,000.

On the bright side, some profits from the sale of a personal residence don’t count. That’s because taxpayers are allowed to exclude up to $250,000 per person or $500,000 per couple in profits on the sale of their personal residence from tax, if they lived in that home for two of the last five years, Stretch said. Only profits exceeding those excluded amounts would be included in income, he noted.

Getting muddled? Let’s look at an example to clarify.

John and Sue Smith own a home that they bought for $100,000 in 1965. They’re now retired and want to scale back, selling that home, which is now worth $750,000, and buying a smaller home with the help of the new $6,500 credit.

Their net profit on this sale would be $650,000, but they can exclude $500,000 of that gain from tax, based on existing law. They will have to add the remaining $150,000 capital gain to their adjusted gross income to determine whether they can qualify for the new credit.

If all of their other income adds up to less than $75,000, they have no worries because the $150,000 and $75,000 add up to $225,000 — the beginning of the credit’s phase-out range for married couples. If they earn more, however, they begin to lose their ability to take the credit.

There are other arcane rules relating to profits earned on the sale of a home, so those with substantial profits may want to consult a tax professional before banking on the credit.

“It’s really confusing,” Roth allowed. “It’s as if they took the old law and threw it in a Mixmaster. Some things still apply; others don’t. The time frames are all new. This is going to keep a lot of tax accountants in business for a long time.”

From the Los Angeles Times

The Valerie Fitzgerald Group specializes in luxury residential real estate in Beverly Hills, Bel Air, Brentwood, Santa Monica and Malibu. Valerie has more than 20 years of real estate experience and is known for her solid reputation in the West Los Angeles brokerage community. She’s also the author of Heart and Sold: How to Survive and Build a Recession-Proof Business.

“The building appeals to many demographics,” says Tom Elliot COO of Elad Properties West, “and a high percentage of recent sales have been with foreign buyers.”

The latest figures from the National Association of Realtors show that existing home sales were strong in September, which means that conditions have improved for five of the past six months. Last month, sales were up 9.4 percent from the level recorded in August, and also 9.2 percent higher than the figures recorded in September 2008.

According to Valerie Fitzgerald, Exclusive Sales Agent at The Carlyle and author of Heart and Sold: How to Survive and Build a Recession-Proof Business (Simon and Schuster, 2009), “Buyers are back – but expectations are higher. No longer in a wait-and-see position, they are ready to buy but want better quality and a stronger investment value, which has forced the marketplace to re-evaluate, adjust and deliver on its promises.”

Celebrity residents like Larry King have chosen The Carlyle Residences for it’s complete privacy, prominent location in the Wilshire Corridor’s “Golden Mile,” and luxurious amenities including private elevators for each residence, and amenities in collaboration with Fendi Casa offering residents a grand lobby, common spaces and private dining room, Sports Club LA health spa with lap pool, lush landscaping, as well as a wine cave, concierge services, valet and doorman.

A panel of the country’s leading real estate brokers will meet at The Carlyle Residences on Thursday, November 5th to discuss the market upswing and discuss how this shift will impact the high-end luxury real estate market.

The Carlyle is located at 10776 Wilshire Boulevard, in Los Angeles, California. For more information, call 310.209.0000 or visit www.carlyleonwilshire.com.

About The Carlyle

Located at the center of the Wilshire Corridor’s “Golden Mile,” The Carlyle Residences is a 24-story crescent-shaped luxury condominium tower with 78 private luxury residences ranging in size from 2,700-5,000 square feet, each with its own private elevator entrance. The Carlyle offers residences 24-hour white glove concierge modeled after a luxury hotel, and amenities including a fitness center designed by The Sports Club L.A., a private wine cellar and dining room, club room, a custom designed Chihuly glass sculpture and furnishings by Fendi Casa, as well a separate staff quarter units.

About Elad Properties

New York-based Elad Properties, owners and developers of The Carlyle, is one of the most active luxury-residence developers in Los Angeles and is among the world’s premier real estate organizations with a distinguished portfolio of outstanding properties. Most recently, they opened Elad Properties West, headquarters to add to their portfolio valued at approximately $7.5 billion.

As we head into the fourth quarter of 2009, many of us are relieved that this tempestuous year is mostly behind us. But the lingering question is: will 2010 be any better? The New York Times posted an article on October 17 entitled “By some reliable measures, recession is over.” But is it really? Economists can have vastly different interpretations of the same indicators, depending on their point of view.

For those of us who’ve experienced a down cycle, we still see a lot to worry about. Unemployment hasn’t yet peaked, the U.S. government will soon stop buying mortgage-backed securities, and the deficit continues to grow. However, many indicators do point to economic improvement on the horizon, and as our population continues to expand, the need for goods and services will increase as well. But most importantly, people will always need shelter — and people will always have financial, personal, or emotional reasons to buy and sell homes.

Remember, the only way to know a market has hit bottom is when it goes up. Here’s to the continuing improvement of our local residential markets!

As always, I’m available to answer any questions you may have about buying, selling, or the market in general — give me a call any time!

Warmest regards,

By Some Reliable Measures,

Recession Is Over

FROM THE NEW YORK TIMES

The worldwide recession appears to have ended, with surveys showing manufacturing activity is on the rise nearly everywhere.

“It is the emerging markets that are leading, with the U.S. following and Europe lagging,” said Chris
Williamson, the chief economist of Markit, a company that surveys manufacturers in many countries.
The surveys, conducted in the United States by the Institute of Supply Management and in other countries by Markit, measure not the level of manufacturing output but the way it is changing. The surveys have a reputation for showing turns in the economy, often before other indicators do.

The September figures for manufacturing seemed to indicate that what had looked like a rapid recovery was slowing in the United States and Europe.

But similar surveys of service companies appear to show growth accelerating in most countries, although not in the three European economies that Mr. Williamson thinks are still in recession; Spain, Ireland and Italy.

The surveys ask companies if their business is doing better or worse than in the previous month, with the three most important questions relating to new orders, production and employment. The index is set so that 50 indicates business is unchanged from the previous month, while figures above that indicate growth and figures below show a decline. The higher the index, the more pervasive are reports of growth.

In the accompanying charts, the index figures have been converted to show the number of points over or
under 50 for each of 12 countries, from the end of 2007 through September. The September indexes for
new orders, production and employment are also shown.

While details vary, the slump was sharp in nearly every country, reflecting the sudden decline that came after Lehman Brothers collapsed in September 2008. That worsened a credit squeeze, which meant some companies had no choice but to cut back on everything they could, from inventories to marketing
expenditures to jobs. Others, fearing that the economic outlook could become much worse, cut back
voluntarily.

It now appears that companies cut too much, and the surveys of manufacturing show that companies are expanding in most countries.

Over all, the surveys indicate that the manufacturing sectors of China, Taiwan, South Korea and India had begun to grow by April, but that the United States did not follow suit until August.

In Europe, France is reporting growth, and Britain is hovering near the midpoint, indicating the deterioration has stopped but growth has not yet begun. Although the German government estimates that its gross domestic product rose in the second quarter, the manufacturing survey indicates continued weakness in that country.

New orders and production have turned positive everywhere but in the three European laggards, Spain,
Ireland and Italy. Spain and Ireland have been badly hurt by collapses in real estate markets, which had
boomed, in part, because of easy credit. Mr. Williamson attributed some of Italy’s problems to a lack of
confidence in its government’s ability to deal with problems.

But employment continues to lag in most countries outside of Asia. Mr. Williamson said he estimated that total job losses in the major developed countries – the United States, Britain, the euro zone and Japan – bottomed out at 1.9 million a month in March and are now about 500,000 a month. While many companies are still hesitant to hire, he says he thinks employment will begin to grow by the end of this year.

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