Treasury’s data shows that the longer a homeowner remains in HAMP, the more likely he or she is to redefault out of the program. As of March 31, 2013, the oldest HAMP permanent modifications, from the third and fourth quarter of 2009, are redefaulting at a rate of 46.1 percent and 39.1 percent. HAMP permanent modifications from 2010 also had high redefault rates, ranging from 28.9 percent to 37.6 percent.

The report directs Treasury to study why these modifications are failing and to come up with some kind of early warning system in order to help borrowers.

(Read More: Despite Rising Demand, Some Builders Slow Production)

“Redefaulted HAMP modifications often inflict great harm on already struggling homeowners when any amounts previously modified suddenly come due,” according to the report.

One of the architects of HAMP, Michael Barr, former Assistant Secretary for Financial Institutions at the U.S. Treasury, is not surprised at the numbers.

“The redefault rates are still below current industry averages, and below the conservative case we used in program design, which was the then-existing rate of 50 percent,” said Barr.

Troubles with HAMP are not new. Initially it did not offer principal reduction on loan modifications, and so far, under a revised HAMP, just 82,813 borrowers received any principal reduction. Banks doing their own loan modifications have wiped away far more mortgage principal, a strategy that has proven far better results. The nation’s five largest banks were required to write down some principal under the National Mortgage Servicing Settlement signed in early 2012, after the so-called “robo-signing” foreclosure paperwork scandal.

The Treasury need not look far for HAMP’s shortfalls.

(Read More: Mortgage Mods Doomed by Back End Debt)

Back in May of 2012, bank representatives complained that the back end debt-to-income ratios (DTI), (which include all debts upon which a borrower pays) for HAMP modifications were far too high. That is, borrowers were paying far too much of their incomes on debt, and the numbers were only rising.

At the time, mortgage analyst Mark Hanson said, “A 64.3 percent DTI is so far out of scope with the pre-bubble years safe-and-sound 36 percent total DTI — and even typical bubble-years full-doc DTI’s of 50 percent — it is absolutely irresponsible. Servicers are pushing the envelope with respect to getting people to qualify.”

Today Hanson is the least surprised of anyone at the failure of HAMP modifications. “Because if you look at them structurally — sky-high DTI, LTV [loan to value] and low credit score — they make legacy Subprime loans look sane.”

Hanson predicts that these bad modifications will come back to bite the banks and the economy.

(Read More: With Home Listings Low, Spec Building Is Back)

“People read headlines that ‘foreclosures are at 2005 levels’ and cheer. I say the high-risk distressed loans and foreclosures are still out there. They have just been called something different by banks and the government and kicked down the road a few years,” says Hanson.

862,000 homeowners are currently in permanent HAMP modifications; 312,000 have defaulted on permanent modifications. In the next two years, many HAMP modifications will re-set to higher interest rates, and that could produce more defaults.

Banks have been doing more modifications on their own, with these proprietary fixes up 55 percent in the fourth quarter of 2012 from the previous year, according to a recent report from the Office of the Comptroller of the Currency. Meanwhile HAMP modifications are down 31 percent for the same period.

Given delays in the foreclosure process in several states, and the risky quality of these early HAMP modifications as well as other proprietary modifications done without principal reduction, it is safe to say foreclosures may rise for a time next year before finally falling back to normal levels in the next three to four years.

As home prices rise, more borrowers will come out from underwater on their mortgages, and that will reduce the risk of new defaults, but the pipeline of distress is still long and far from lean.

Article source: http://www.cnbc.com/id/100674924

Prices Climb Strongly in San Francisco, Rise Modestly in Los Angeles and San Diego

SAN FRANCISCO–(BUSINESS WIRE)– Luxury home values rose in California’s major metropolitan markets in the third quarter of 2012 compared to a year ago, according to the First Republic Prestige Home Index™ by First Republic Bank, a leading private bank and wealth management company.

In the quarter that ended Sept. 30, 2012, the Index indicated the following:

• San Francisco Bay Area values rose 8.1% from the third quarter of 2011 and gained 2.4% from the second quarter of 2012. The average luxury home in San Francisco is now $2.73 million.
• Los Angeles area values rose 1% from the third quarter a year ago and declined 0.8% from the second quarter of 2012. The average luxury home in Los Angeles is now $2.02 million.
• San Diego area values climbed 2.2% year-over-year and increased 0.8% from the second quarter of 2012. The average luxury home in San Diego is now $1.66 million.

“Luxury home prices were particularly strong in the San Francisco Bay Area during the third quarter of 2012,” said Katherine August-deWilde, President and Chief Operating Officer of First Republic Bank. “The Bay Area economy is healthy, inventory is limited, and multiple offers are increasingly the norm. Values in Los Angeles and San Diego are rising, and some neighborhoods are experiencing strong demand. Historic low interest rates have resulted in an elevated level of activity in luxury markets throughout California.”

First Republic Bank produces the Prestige Home Index each quarter with Fiserv CSW Inc., a leading provider of automated property valuation services and home price metrics to U.S. financial institutions. Historical results of the Index, which has tracked luxury homes since 1985, are accessible at www.firstrepublic.com. First Republic Bank is an active lender in the luxury home market for primary residences and vacation homes.

San Francisco Bay Area Values

The Bay Area posted its second consecutive quarter of healthy gains on a year-over-year basis. The 8.1% year-over-year increase in the third quarter of 2012 was the highest since the first quarter of 2006.

In San Francisco, agents said the market remains robust. “Prices for luxury homes have been strong all year,” said Malcolm Kaufman of McGuire Real Estate in San Francisco. “There is limited inventory, the economy here has returned better than anywhere in the country, and employment is up. Lots of money is being spent on $5 million homes and $10 million homes. For some, it feels like 2005 again.”

In Silicon Valley, the market was very strong. “People have secure jobs and stable incomes,” said Pat Kalish of Intero Real Estate Services in Menlo Park. “Except for the highest end of the luxury market, there is strong competition for properties. We have scarcity of homes, historic low interest and an optimistic outlook. When you are out in the market, you feel the optimism.”

In the Marin County, the market was softer. “Marin has not seen the increases that have happened in Menlo Park or San Francisco,” said Pat Montag of Decker Bullock Sotheby’s International Realty in Mill Valley. “We typically lag a quarter behind San Francisco. We did see an uptick at the end of third quarter in the $3 million to $5 million range. Many people are still waiting until they see what happens in Washington D.C. in the first quarter.”

Los Angeles Area Values

In Los Angeles, values rose 1% on a year-over-year basis, but edged down from the second quarter of 2012. Real estate agents said the most desirable locations in Los Angeles area continue to experience accelerating demand and price increases.

Dan Weiser of Coldwell Banker Beverly Hills South said sales activity had returned to pre-financial crisis levels. “On the west side of Los Angeles, inventory is scarce and demand is high. We’re back to 2007 sales volume. Prices are probably within 10% of the height of the market. Sellers are getting incredible prices for properties in the highest end of the luxury market.”

Michele Hall of Coldwell Banker in Brentwood said newly constructed luxury homes are selling quickly. “New construction is flying off the shelf, with all cash and multiple offers. We’re seeing multiple offers in every price range, and there are fewer foreclosures and short sales. Inventory opened up, but was then snapped up.”

In Santa Barbara, the market also was very active. “The luxury market is very strong in Santa Barbara and Montecito,” said Joanne Schoenfeld of Santa Barbara Living Real Estate Brokerage. “There is a lot more activity and closed sales than last year. Prices continue to rise slightly, and I don’t see them going down any time soon. It’s a good, strong market.”

San Diego Area Values

San Diego luxury homes continued to trend higher on a year-over-year basis. Prices have now increased for the past three quarters on a year-over-year basis, including a 2.2% gain in the third quarter compared to a year ago.

For properties over $3 million, sales activity is picking up. “We have had a higher number of units sold this year than last year for homes over $3 million,” said Michael Taylor of California Prudential Realty in Rancho Santa Fe. “To me, that indicates fear has been wrung out of the market. People are now willing to spend more to buy a home, and they’re getting significantly more home because of the recent price declines. The perception is that we are at the bottom of this market.”

In the $1.5 million to $2 million range, there is more inventory, said Farid Khayamian of Bluxen Real Estate in La Jolla. “There are a lot of people who want to buy,” Khayamian said. “We see multiple offers everywhere, particularly when the property is priced right. A year ago, there was more inventory due to short sales and foreclosures, but that has dried up. Right now, you have to buy at the asking price. In January, we will have more inventory and possibly lower prices.”

About The First Republic Prestige Home Index

The First Republic Prestige Home Index™ is the first statistical model of its kind customized to measure changes in homes valued at more than $1 million in key California urban markets. Some common features of luxury homes in the Index: 3,000 to 6,000 square feet, three to six bedrooms, and three to six bathrooms. San Francisco Bay Area properties include a cross-section of luxury homes in Alamo, Atherton, Belvedere, Danville, Healdsburg, Hillsborough, Lafayette, Los Altos, Los Gatos, Mill Valley, Moraga, Orinda, Palo Alto, Piedmont, Portola Valley, Ross, St. Helena, San Francisco, Saratoga, Sonoma, Tiburon and Woodside. Properties in Los Angeles represent a cross-section of luxury homes in Arcadia, Beverly Hills, Calabasas, La Cañada Flintridge, Encino, Los Angeles, Malibu, Marina del Rey, North Hollywood, Pacific Palisades, Pasadena, Playa del Rey, Santa Monica, Studio City, and the West Los Angeles enclaves of Bel Air, Brentwood and Westwood. San Diego properties represent a cross-section of luxury homes in Carlsbad, Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe, San Diego and Solana Beach. In producing the Index, Fiserv CSW Inc. draws upon its economic database and years of experience in tracking single-family home values; collects and cross-checks data from multiple sources; achieves a weighted balance of validation elements such as repeat sales, comparable sales and physical home characteristics; and combines this with First Republic’s extensive local market knowledge.

About First Republic Bank

First Republic Bank (NYS: FRC) and its subsidiaries provide private banking, private business banking and private wealth management. Founded in 1985, First Republic specializes in exceptional, relationship-based service offered through preferred banking or wealth management offices primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara, Newport Beach, San Diego, Portland, Boston, Greenwich and New York City. First Republic offers a complete line of banking products for individuals and businesses, including deposit services, as well as residential, commercial and personal loans. First Republic is a component of the SP Total Market Index, the Wilshire 5000 Total Market Index^SM, the Russell 1000®, Russell 3000® and Russell Global indices and six Dow Jones indices.

Blue Marlin Partners
Greg Berardi, 415-239-7826
greg@bluemarlinpartners.com

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

Article source: http://www.dailyfinance.com/2012/11/20/california-luxury-home-values-rise-again/

“I am excited to have Stephen and Patrick join VLP’s Real Estate group. Stephen is well known in the San Francisco real estate industry having completed numerous acquisitions of Class A office buildings and complex capital markets transactions for some of the country’s largest real estate investors. Stephen also has robust experience in the affordable housing industry that will expand that specialty practice group. Patrick brings to VLP comprehensive real estate experience including deep expertise representing clients on distressed debt acquisitions and complicated financing workouts. His background in investment banking gives him a better understanding of capital markets, something important to our clients. The addition of Stephen and Patrick makes VLP formidable in the Bay Area real estate market ensuring that we provide our clients with representation that is second to none,” said Byron Rodriguez, chair of VLP’s Real Estate practice group.

Mr. Wright’s practice includes all aspects of real estate transactional law, including development, acquisition, joint ventures, commercial financing, leasing, dispositions, entity structuring, partnership and limited liability company agreements and construction involving office, industrial, retail, multi-family residential, high-end residential and mixed use properties. His clients include prominent real estate investment firms, public agencies and financial institutions. In addition, Mr. Wright has extensive experience representing affordable housing developers in all aspects of affordable housing transactions. Mr. Wright was recognized by the 2010 US edition of Legal 500 for his real estate practice. He received his law degree from Harvard Law School and graduated Phi Beta Kappa from Lewis Clark College.

“With its impressive tax and real estate practices, VLP provides an excellent platform to represent our clients in all aspects of their business transactions. I am looking forward to working with the VLP team as we expand our real estate practice,” stated Mr. Wright.

Mr. Valentino has almost 20 years of comprehensive commercial real estate advisory experience, including extensive experience in debt acquisitions, commercial real estate workouts, real estate secured lending, leasing and joint venture partnerships. Mr. Valentino’s prior experience includes Procopio, Cory, Hargreaves Savitch, a leading San Diego real estate law firm, and he served as general counsel of a California based real estate investment firm active in the acquisition of distressed assets. He also previously served as a senior professional with several investment banks focusing on public finance, mergers and acquisitions and venture financings, and began his career in New York with Merrill Lynch Capital Market’s Public Finance Investment Banking Group. Mr. Valentino received his law degree from Northwestern University School of Law and graduated magna cum laude from the State University of New York, at Albany.

“For complex real estate transactions my clients need a top tier legal team to help them execute their business strategy. My new partners at VLP bring that expertise to the table without the big firm billing structure,” stated Mr. Valentino.

About VLP’s Real Estate Practice:
VLP’s Real Estate practice group represents real estate owners, developers and investors in a broad array of transactions, including acquisitions and dispositions of assets, commercial and tax credit financings, distressed assets, joint ventures, loan workouts and recovery, leasing, tax, development and construction. We offer our clients depth of experience with a variety of property types including office, affordable and community housing, hotel, multi-family, retail, industrial and condominiums.

Our real estate expertise provides clients with unrivaled client service and lower rates. With extensive experience in all aspects of real estate, we are able to help clients develop strategies that suit their business objectives and risk tolerance.

More information: http://www.vlplawgroup.com/PracticeDetail.aspx?pg_code=BPREAL .

About VLP:
Founded in 2008, VLP is a business and transactional law firm that delivers top quality, efficient and cost-effective legal services. Our practice reaches across many industry sectors, including high tech, life sciences, angel and venture capital financings, clean tech, retail, consumer product, commercial lending and real estate. VLP has continued its strong growth, and in recent months has added noted attorneys from firms on the West and East coasts who believe VLP’s unique, client-oriented and cost-effective model is the best platform for their practice. Our partners are regularly recognized by their peers as outstanding attorneys, and the firm has been recognized as a top company for its promotion of quality of life in the workplace.

VLP partners represent clients that vary in size from individual executives and early-stage startups to Fortune 500 companies. Our client base includes public and private corporations, venture capital investors, private equity funds, educational institutions, nonprofits and individuals. We provide general corporate, licensing, contract, intellectual property protection and counseling, securities regulation, financing, employment, merger and acquisition, real estate, tax and other legal services.

VLP is a geographically distributed firm of highly qualified attorneys with outstanding credentials and an average of over 10 years of experience. We have no central office, and our technology platform allows us to collaborate easily and to operate with a small, highly specialized staff. Our lean model means that we can provide sophisticated, focused services to our clients, and we can do it at competitive rates.

For more information about VLP, visit http://www.vlplawgroup.com .

News Source: VLP Law Group LLP :: This press release was issued on behalf of the news source by Send2Press® Newswire, a service of Neotrope®. View all current news at: http://Send2PressNewswire.com .

Article source: http://massachusettsnewswire.com/2012/03/01/MNW4963_165903.php

SAN FRANCISCO, Feb 22, 2012 (BUSINESS WIRE) –
Luxury home values declined slightly in Los Angeles and San Francisco,
but rose in San Diego in the fourth quarter of 2012 compared to the
third quarter, according to the First Republic Prestige Home Index(TM) by
First Republic Bank, a leading private bank and wealth management
company.

In the quarter ended Dec. 31, 2011, the Index indicated the following:

–
Los Angeles area values declined 1.8% from the third quarter of 2011
and dipped 0.1% from the fourth quarter a year ago. The average luxury
home in Los Angeles is now $1.97 million.

–
San Diego area values rose 1.1% from the third quarter but dropped
3.7% year-over-year. The average luxury home in San Diego is now $1.64
million.

–
San Francisco Bay Area values fell 0.3% from the third quarter and
were down 3.1% from a year ago. The average luxury home in San
Francisco is now $2.52 million.

“Luxury home prices in urban, costal markets in California were mostly
stable in the fourth quarter,” said Katherine
August-deWilde, President and Chief Operating Officer of First
Republic Bank. “Low rates, good values and positive economic news have
led to increasing interest in home buying in 2012. San Francisco and
Silicon Valley, in particular, are likely to benefit from the strength
of the technology and social media sectors.”

First Republic Bank produces the Prestige Home Index each quarter with
Fiserv CSW Inc., a leading provider of automated property valuation
services and home price metrics to U.S. financial institutions.
Historical results of the Index, which has tracked luxury homes since
1985, are accessible at
www.firstrepublic.com .
First Republic Bank is an active lender in the luxury home market for
primary residences and vacation homes.

Los Angeles Area Values

In Los Angeles, values have remained in a narrow range over the past two
years. In the first quarter of 2010, the average price of a luxury home
in Los Angeles was $1.98 million. In the fourth quarter of 2012, it was
$1.97 million.

Agents said buyer activity rose toward the close of the fourth quarter.
“The end of the fourth quarter closed very strong,” said Mary Beth Woods
of Coldwell Banker in Brentwood. “The problem is that we don’t have as
much inventory as we need. Buyers are hunting for properties. If the
home is priced close to recent comps, it will sell.”

Rory Posin of RE/MAX in Beverly Hills said the market has clearly picked
up. “I don’t think I could be any busier. Pricing is flat, but activity
is strong.”

In Santa Barbara County, the market appears to be firming. “The high-end
market in Montecito was slow the last couple of years, but it heated up
at the end of 2011,” said Rebecca Riskin of Village Properties in
Montecito. “Since January, we have seen multiple closings for over $9
million, as well as several homes above $15 million enter escrow. Buyers
remain price conscious, but there is a greater level of confidence in
the market.”

San Diego Area Values

San Diego values posted a second consecutive quarterly gain, but prices
were still down 3.7% year-over-year.

“Most of the high-end sales in the fourth quarter were on the
oceanfront,” said Andy Nelson, President and CEO of Willis Allen Real
Estate. “In the first quarter, we have seen new buyers looking for
properties. That’s a good sign. We also have reduced inventory and that
could help push prices. If prices start improving, we may see sellers
re-enter the market.”

In La Jolla, activity has increased markedly since the beginning of the
year. “The fourth quarter was slow, and we were worried it would carry
over into the New Year,” said Peggy Chodorow of Prudential California
Realty in La Jolla. “Since the beginning of the year, the market has
changed. People are buying houses, and the number of showings has
skyrocketed. We’ve even had some multiple offers. This is going on
across every price range.”

San Francisco Bay Area Values

In the Bay Area, Silicon Valley and San Francisco were the most robust
markets for luxury homes.

“You are starting to see the positive impact of social media IPOs, hedge
fund wealth, and interest from foreign buyers,” said David Barrett of
Warwick Properties Group in San Francisco. “The market is benefitting
from good old-fashioned consumer confidence. We recently had 100 people
at a showing.”

In Silicon Valley, the market was strong. “In the fourth quarter,
especially in the last two months, the market really picked up,” said
Monica Corman of Alain Pinel in Menlo Park. “Just about everything was
selling. Palo Alto has been strong, and it has spread to other
communities. There’s incredibly low inventory and pent-up demand.
Silicon Valley also has experienced job growth and IPOs. All of this is
driving the market.”

In Marin County, prices were stable. “The market is largely flat and
will remain flat for the next two to three years, with only modest
increases likely,” said Brad Garsten of Frank Allen Howard Realtors in
Greenbrae. “We’re going to continue to teeter along the bottom until the
economy comes back nationally and globally.”

About The First Republic Prestige Home Index

The First Republic Prestige Home Index(TM) is the first statistical model
of its kind customized to measure changes in homes valued at more than
$1 million in key California urban markets. Some common features of
luxury homes in the Index: 3,000 to 6,000 square feet, three to six
bedrooms, and three to six bathrooms. San Francisco Bay Area properties
include a cross-section of luxury homes in Alamo, Atherton, Belvedere,
Danville, Healdsburg, Hillsborough, Lafayette, Los Altos, Los Gatos,
Mill Valley, Moraga, Orinda, Palo Alto, Piedmont, Portola Valley, Ross,
St. Helena, San Francisco, Saratoga, Sonoma, Tiburon and Woodside.
Properties in Los Angeles represent a cross-section of luxury homes in
Arcadia, Beverly Hills, Calabasas, La Canada Flintridge, Encino, Los
Angeles, Malibu, Marina del Rey, North Hollywood, Pacific Palisades,
Pasadena, Playa del Rey, Santa Monica, Studio City and the West Los
Angeles enclaves of Bel Air, Brentwood and Westwood. San Diego
properties represent a cross-section of luxury homes in Carlsbad,
Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe,
San Diego and Solana Beach. In producing the Index, Fiserv CSW Inc.
draws upon its economic database and years of experience in tracking
single-family home values; collects and cross-checks data from multiple
sources; achieves a weighted balance of validation elements such as
repeat sales, comparable sales; and physical home characteristics; and
combines this with First Republic’s extensive local market knowledge.

About First Republic Bank

First Republic Bank


/quotes/zigman/2803861/quotes/nls/frc FRC
-0.65%



and its subsidiaries provide private
banking, private business banking and private wealth management. Founded
in 1985, First Republic specializes in exceptional, relationship-based
service offered through preferred banking or wealth management offices
primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara,
Newport Beach, San Diego, Portland, Boston, Greenwich and New York City.
First Republic offers a complete line of banking products for
individuals and businesses, including deposit services, as well as
residential, commercial and personal loans. First Republic is a
component of the SP Total Market Index, the Wilshire 5000 Total Market
Index(SM), the Russell 1000(R), Russell 3000(R) and Russell Global
indices and six Dow Jones indices.

About First Republic Private Wealth Management

First Republic Private Wealth Management is the investment management,
trust and brokerage group of First Republic Bank. First Republic Private
Wealth Management offers objective advice and fully customized solutions
with the same level of exceptional client service that has been the
hallmark of First Republic Bank for more than 25 years. First Republic
has the flexibility to provide individuals, families, businesses,
endowments, schools and non-profit organizations with appropriate
choices that responsibly meet a client’s specific investment objectives.
Securities Products and Services are offered by First Republic
Securities Company, LLC – Member FINRA/SIPC. First Republic Securities
Company and First Republic Investment Management are wholly owned
subsidiaries of First Republic Bank. Unless otherwise disclosed,
investments through First Republic Investment Management and First
Republic Securities Company, LLC are not FDIC-insured, not bank
guaranteed and may lose value.

SOURCE: First Republic Bank

        Blue Marlin Partners
        Greg Berardi, 415-239-7826
        greg@bluemarlinpartners.com

Copyright Business Wire 2012

/quotes/zigman/2803861/quotes/nls/frc

Add FRC to portfolio

FRC

Article source: http://www.marketwatch.com/story/luxury-home-values-stable-in-fourth-quarter-of-2011-2012-02-22

SAN FRANCISCO, Aug 22, 2011 (BUSINESS WIRE) –
Luxury home values rose in Los Angeles and San Francisco in the second
quarter of 2011 compared to the first quarter, but declined in San
Diego, according to the First Republic Prestige Home Index(TM) by First
Republic Bank, a leading private bank and wealth management company.

In the quarter ended June 30, 2011, the Index indicated the following:

–
Los Angeles area values climbed 1.7% from the first quarter of 2011
and increased 1.8% from the second quarter a year ago. The average
luxury home in Los Angeles is now $2.0 million.

–
San Diego area values decreased 1.2% from the first quarter and fell
6.0% year-over-year. The average luxury home in San Diego is now $1.6
million.

–
San Francisco Bay Area values rose 0.6% from the first quarter and
were 3.1% lower compared to a year ago. The average luxury home in San
Francisco is now $2.5 million.

“Luxury home prices were largely stable in the second quarter of 2011,”
said Katherine
August-deWilde, President and Chief Operating Officer of First
Republic Bank. “Certain communities in California, particularly those in
and around the Silicon Valley and parts of San Francisco, showed robust
activity. Real estate agents are now reporting that economic uncertainty
and stock market volatility are impacting some buyers, despite the
all-time low mortgage interest rates.”

First Republic Bank produces the Prestige Home Index each quarter with
Fiserv CSW Inc., a leading provider of automated property valuation
services and home price metrics to U.S. financial institutions.
Historical results of the Index, which has tracked luxury homes since
1985, are accessible at
www.firstrepublic.com .
First Republic Bank is an active lender in the luxury home market for
both primary residences and vacation homes.

Los Angeles Area Values

Los Angeles values rose 1.8% in the second quarter of 2011 from the same
period a year ago. The gain was the first on a year-over-year basis in
the past 14 quarters.

“The upper end of the market is very strong for well-priced homes,” said
David Mossler of Teles Properties in Beverly Hills. “There are four to
five buyers for every house. There is very little quality supply. I just
sold homes for $7.8 million and $8.6 million to all-cash buyers. If a
home is properly priced, demand is very strong. But the home has to be
well-priced.”

Charles Pence of Pence Hathorn Silver in Santa Monica said that prices
are varying widely by community. “More than ever before, we have highly
attractive micro markets with strong activity and price gains, but the
surrounding markets can often be flat. This market is driven more by a
lack of inventory than anything else. We’ve had some big sales in terms
of price. It is hard to predict what someone will pay for something now
at the upper end.”

Armen Sarkissian of Prudential California Realty in Pasadena said
pricing strategy is key for sellers. “If the price is right, people will
buy. There are a lot of buyers for $6 million to $7 million homes, but
they are scrutinizing every deal. Because buyers are also concerned
about purchasing a depreciating asset, the price has to be below the
comparable sales in the past three to six months.”

San Diego Area Values

In San Diego, prices continued a downward trend. On a year-over-year
basis, second quarter prices fell 6% compared to the second quarter of
2010.

Mo Loghavi of Prudential California Realty in La Jolla said he expects
prices to drop further. “People in the $1.5 million to $5 million want
to continue downsizing, but there are no trade-up buyers. We still have
another 12 to 14 months of inventory. By the end of 2012, we will see a
little more movement, but I haven’t seen the light at the end of the
tunnel for the luxury market.”

Farid Khayamian of RE/MAX Associates in La Jolla also said prices may
continue to weaken. “In San Diego County, we have roughly 23 months of
inventory for homes over $2 million,” he said. “Average supply is about
six months. Too much supply and not enough demand for higher end homes
will cause prices to soften. Low prices and high inventory are
encouraging many investors to make all-cash purchases.”

San Francisco Bay Area Values

San Francisco Bay Area values reversed course in the second quarter,
rising 0.6% after falling 4.3 percent in the first quarter of 2011. The
strong tech sector in Silicon Valley strengthened the market.

Ken DeLeon of Keller Williams Realty in Palo Alto said the market is
very strong. “Palo Alto is still really hot,” he said. “Palo Alto is
actually over 2006 prices. Interest is as good as I’ve seen it in 10
years. There was a home in Palo Alto that had 32 offers in the past
week. Palo Alto is leading the pack in the surrounding communities. I
expect to see Atherton, Menlo Park and Los Altos picking up by spring.”

In San Francisco, the market appeared to be slowing. “The second quarter
was starting to look better,” said Joel Goodrich of TRI Coldwell Bank in
San Francisco. “We had less inventory and more sales, but that was
before the recent stock market volatility. In the second quarter,
investor confidence was up in San Francisco, with the high tech boom in
Silicon Valley and parts of the city. I’m still very bullish on San
Francisco and the Bay Area over the next one to five years, assuming a
return to normal economic cycles.”

In Marin County, the luxury market was mixed. “In the mid-range, the
market is active,” said Pat Montag of McGuire Real Estate in Tiburon. “I
was surprised by the three recent listings that went into escrow in
Tiburon and Belvedere between $3 million and $7 million. For homes over
$15 million, we’re seeing some significant reductions, but many home
were overpriced.”

About The First Republic Prestige Home Index

The First Republic Prestige Home Index(TM) is the first statistical model
of its kind customized to measure changes in homes valued at more than
$1 million in key California urban markets. Some common features of
luxury homes in the Index: 3,000 to 6,000 square feet, three to six
bedrooms, and three to six bathrooms. San Francisco Bay Area properties
include a cross-section of luxury homes in Alamo, Atherton, Belvedere,
Danville, Healdsburg, Hillsborough, Lafayette, Los Altos, Los Gatos,
Mill Valley, Moraga, Orinda, Palo Alto, Piedmont, Portola Valley, Ross,
St. Helena, San Francisco, Saratoga, Sonoma, Tiburon and Woodside.
Properties in Los Angeles represent a cross-section of luxury homes in
Arcadia, Beverly Hills, Calabasas, La Canada Flintridge, Encino, Los
Angeles, Malibu, Marina del Rey, North Hollywood, Pacific Palisades,
Pasadena, Playa del Rey, Santa Monica, Studio City and the West Los
Angeles enclaves of Bel Air, Brentwood and Westwood. San Diego
properties represent a cross-section of luxury homes in Carlsbad,
Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe,
San Diego and Solana Beach. In producing the Index, Fiserv CSW Inc.
draws upon its economic database and years of experience in tracking
single-family home values; collects and cross-checks data from multiple
sources; achieves a weighted balance of validation elements such as
repeat sales, comparable sales, and physical home characteristics; and
combines this with First Republic’s extensive local market knowledge.

About First Republic Bank

First Republic Bank


/quotes/zigman/2803861/quotes/nls/frc FRC
-0.88%



and its subsidiaries provide private
banking, private business banking and private wealth management. Founded
in 1985, First Republic specializes in exceptional, relationship-based
service offered through preferred banking or wealth management offices
primarily in San Francisco, Palo Alto, Los Angeles, Santa Barbara,
Newport Beach, San Diego, Portland, Boston, Greenwich and New York City.
First Republic offers a complete line of banking products for
individuals and businesses, including deposit services, as well as
residential, commercial and personal loans. First Republic is a
component of the SP Total Market Index, the 5000 Total Market Index(SM),
the Russell 1000(R), Russell 3000(R) and Russell Global indices and six Dow
Jones indices.

About First Republic Private Wealth Management

First Republic Private Wealth Management is the investment management,
trust and brokerage group of First Republic Bank. First Republic Private
Wealth Management offers objective advice and fully customized solutions
with the same level of exceptional client service that has been the
hallmark of First Republic Bank for more than 25 years. First Republic
has the flexibility to provide individuals, families, businesses,
endowments, schools and non-profit organizations with appropriate
choices that responsibly meet a client’s specific investment objectives.
Securities Products and Services are offered by First Republic
Securities Company, Member FINRA/SIPC.

SOURCE: First Republic Bank

        Blue Marlin Partners
        Greg Berardi, 415-239-7826
        greg@bluemarlinpartners.com

Copyright Business Wire 2011

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Add FRC to portfolio

FRC

Article source: http://www.marketwatch.com/story/luxury-home-values-stable-in-second-quarter-of-2011-2011-08-22?reflink=MW_news_stmp

San Francisco’s luxury home values dropped in the first quarter to their lowest point since the first quarter of 2004, when the region was clawing its way back from the dot-com bust.

San Francisco Bay Area luxury home values lost 4.3 percent from the fourth quarter of 2010 and were down 1.9 percent from the first quarter of 2010, according to a quarterly survey produced by San Francisco-based First Republic Bank. (NYSE: FRC)

“Prices fell as sales activity declined,” said Katherine August-deWilde, president and chief operating officer at First Republic.

Luxury home values also fell in Los Angeles and San Diego.

In Los Angeles, they dipped 0.5 percent from the fourth quarter and were down 0.9 percent from last year’s first quarter.

In San Diego, luxury home values plunged 4.6 percent from the fourth quarter and 5.1 percent from last year’s first quarter.

The First Republic Prestige Home Index is produced quarterly with Fiserv CSW, (NASDAQ: FISV) a provider of property valuation services and home-price data to the nation’s financial institutions. The survey defines luxury homes as those valued at more than $1 million, which typically feature three to six bedrooms and a comparable number of bathrooms in 3,000 to 6,000 square feet.

“First quarter sales reflected the price discounting that took place in the second half of 2010. We had a buyer’s market in the final two quarters of last year,” said Stephen Gomez of Gomez Patton Real Estate in San Francisco. “Now we’re starting to see the window to the buyer’s market close.”

One factor fueling buyer interest is the flood of capital pouring into the region’s tech sector, generating buying power for those looking to purchase on the Peninsula.

“I see tons of buyers with money, but inventory is the issue,” said Geoffrey Nelson of McGuire Real Estate in Burlingame.

Buyer hesitation was on full display in the East Bay.

“There are actually a few buyers out there, but they are unwilling to commit,” said Sharon Dare of J. Rockliff Realtors in Danville.

Mark Calvey covers banking and finance for the San Francisco Business Times.
Contact him at mcalvey@bizjournals.com or (415) 288-4950.
Read his blog postings at Bay Area BizTalk.

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Article source: http://www.bizjournals.com/sanfrancisco/news/2011/05/23/san-francisco-home-prices-first-republic.html

If you’re not talking about the head of the IMF today, then the only thing left really is the debt ceiling, which we officially reached today ($14.294 trillion for anyone who’s counting).

While estimates are that it will take until August for the US to actually default on its debt obligations, the concern in the short term is how Wall Street sees the situation and how that will be reflected in the bond market and in mortgage interest rates.

So I asked a few experts:

Michael Barr/Fmr. Asst. Treasury Secretary for Financial Institutions

“If the US continues to bump up against the debt limit but Treasury uses “extraordinary measures” to keep the US from exceeding the limit, then the damage is likely to be modest and short-term. I would expect rates to rise, temporarily, by up to low single-digit basis points.

It is a bit hard to forecast exactly what the effect will be. Prior experience suggests low single digit bps, but there are a number of factors in play today that were not present in previous debt ceiling crises: fragile economy, fragile housing finance sector, fragile home prices and sales, F/F in conservatorship, no securitization to speak of, higher debt to GDP ratio, turmoil in Europe (exacerbated by DSK’s arrest), extremely high levels of US dollar reserves already in China, extremely low Treasury rates.

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Article source: http://www.cnbc.com/id/43049863?__source=RSS*blog*&par=RSS

Economic activity in the Twelfth District expanded moderately
during the reporting period of late February into the beginning
of April. Price increases for final goods and services remained
modest overall despite gains for selected commodities, and
upward wage pressures were limited as well. Sales of retail
items and demand for business and consumer services continued to
expand. Manufacturing activity in the District grew further.
Sales of agricultural products were robust, and demand edged up
for natural resource products. Demand for residential and
nonresidential real estate remained subdued. Contacts from
financial institutions reported small but widespread increases
in loan demand.

Wages and Prices

Price inflation for final goods and services was modest during
the reporting period. Although prices remained elevated for an
assortment of raw materials and commodities and rose further for
some, such as oil, the pass-through to final prices was quite
limited, with the noteworthy exceptions of food and gasoline.
For most other retail goods and services, prices continued to be
held down by subdued demand and vigorous competition.

Contacts in most sectors reported that upward wage pressures
remained weak. High unemployment and limited hiring kept
compensation gains at low levels in most regions and sectors,
although significant upward wage pressures were noted for
workers with advanced skills in technology fields. Looking ahead
to the next six months, the reports indicated that wage gains
are likely to pick up somewhat as more businesses eliminate wage
freezes established during the downturn.

Retail Trade and Services

Retail sales continued to improve overall. Traditional
department stores and discount retail chains alike reported
further increases in sales. Similarly, sales revenues rose for
grocers; contacts attributed the gains in part to higher food
prices in addition to increased sales volumes. Despite some
indications of rising appetites for discretionary spending,
consumers remained largely focused on necessities and lower-
priced options across a wide spectrum of products. Retailers of
major appliances and furniture reported that activity remained
subdued. Demand for new automobiles strengthened further,
propelled partly by manufacturers’ rebates and improved
availability of credit. Looking forward, some retail contacts
expressed concern that elevated gasoline prices will reduce
sales of other items.

Demand for business and consumer services rose further. Activity
expanded among providers of transportation services, with gains
in cargo traffic reported for major District seaports. Providers
of professional services, such as law and accounting, reported
modest demand growth. Suppliers of energy services noted further
increases in deliveries to households and businesses, and sales
continued to grow for providers of technology services. Contacts
from several parts of the District reported further growth in
business travel and tourism activity, although Japanese tourist
visits to Hawaii fell significantly following the March 11
earthquake and tsunami in Japan. Demand fell slightly for
providers of health-care services, as some patients reportedly
have been forgoing elective procedures.

Manufacturing

Manufacturing activity in the District posted further gains
during the reporting period of late February into the beginning
of April. Makers of commercial aircraft and parts reported
modest ongoing growth in new orders, attributed in part to
increased demand from airline companies for aircraft with
greater fuel efficiency. For manufacturers of semiconductors and
other technology products, demand continued to grow, with high
levels of capacity utilization and balanced inventories noted.
Sales rose further for metal fabricators, although contacts
reported minor production challenges arising from constrained
supplies of raw materials. Demand remained especially weak for
manufacturers of wood products, with the exception of firms in
the pulp and paper segment of the industry, which saw increases
in orders and output. Petroleum refiners reported slight gains
in gasoline sales volumes compared with twelve months earlier,
despite the demand constraints arising from higher prices and
poor weather, and capacity utilization rates were up accordingly.
Demand continued to grow for food manufacturers.

Agriculture and Resource-related Industries

Production activity and sales were robust for agricultural
products and grew further for metals and natural resources used
for energy production. Final sales and orders for most
agricultural products, including livestock and a wide variety of
crops, continued to expand. As a result, contacts noted rising
prices and constrained availability for selected inputs,
including fertilizer, seeds, and machinery such as tractors.
District mining activity expanded, as higher prices for assorted
metals have spurred investments in new capacity. Demand for
crude oil was slightly above its level from twelve months
earlier, while extraction activity for natural gas expanded,
increasing supply and causing the price to decline.

Real Estate and Construction

Activity in District residential and nonresidential real estate
markets remained at very low levels overall, albeit with slight
improvement noted in some market segments and areas. The sales
pace for new and existing homes was mixed across the District
but remained very weak overall, and contacts again noted that
the limited availability of nonconforming ?jumbo loans held back
sales of higher-priced homes in some areas. In response to
sluggish sales, new home construction stayed quite subdued.
However, demand for residential rental space grew further in
some areas, and reports noted modest increases in the
construction of apartment buildings. Demand remained weak
overall in commercial real estate markets, as vacancy rates for
office and industrial space remained elevated throughout the
District. However, further gains in leasing activity were noted
for some major markets in the District, particularly in
technology-intensive portions of the San Francisco Bay Area.

Financial Institutions

District banking contacts reported that loan demand was up
compared with the prior reporting period. Demand for commercial
and industrial loans rose perceptibly, as businesses in a
variety of sectors reportedly showed increased interest in
expansionary capital spending. Demand for consumer credit also
grew slightly. The reports indicated that competition among
lenders to extend credit to well-qualified small and medium-
sized businesses has intensified, placing downward pressure on
rates and fees. Overall, however, lending standards remained
somewhat restrictive for most types of consumer and business
loans. Venture capital financing activity and investor interest
continued to grow, particularly for companies focused on
Internet and wireless applications and digital media.

Article source: http://www.bloomberg.com/news/2011-04-13/u-s-federal-reserve-beige-book-san-francisco-district-text-.html

LOS ANGELES
Lee Associates Taps Toumazos as Principal

Commercial real estate veteran Paulette Toumazos joined Lee Associates-LA North/Ventura Inc. in Sherman Oaks, CA, as a principal.

The 25-year industry professional focuses on the sale and leasing of office and medical office properties. Toumazos is a former first vice president at DAUM Commercial. For the past dozen years, she’s worked with landlords, specifically financial institutions, on selecting sites in Southern California.

UGL Services hired top Bay Area producers Christopher Johnke (pictured, far left) and Cale Miller (left) as senior vice president and vice president, respectively, in the firm’s San Francisco office.

The duo joined UGL from Grubb Ellis Co. where they focused on client portfolio/tenant representation as the Johnke-Miller Team. The business partners worked with clients like CH2MHill, Regional Center of the East Bay, SC Electric Co., Bayer AG and M+W Group.

Johnke has advised on deals totaling more than $500 million and more than 3 million square feet during his 15-year career. He has a bachelor’s degree from Hofstra University.

Miller’s six years of experience includes a specialty in portfolio cost analysis and transaction opportunities. He has an undergraduate degree from the University of Arizona.

“Cale and Chris are cornerstones to the growth of our presence in the Bay Area,” said Eric Danielson, senior vice president and managing director of the San Francisco regional office.

Danielson plans to double its professional staff by September and increase its number of transaction brokers to 25 in San Francisco, the East Bay and Silicon Valley this year. The company is also looking to strengthen its Bay Area Industrial practice by hiring other leading brokerage teams.

ATLANTA
CBRE Adds Leader to Debt Equity Finance Group
Jeffrey Ackemann returned to the CB Richard Ellis Capital Markets group in Atlanta as a regional leader of the debt and equity finance team. He’ll work with southeast regional leaders Robert LaChapelle and John Farrell and report to Brian Stoffers, head of capital markets. Ackemann will oversee commercial production in the debt and equity finance practice.

His commercial real estate career spans nearly 30 years. Ackemann spent the last eight years at Jamestown Management Corp. and most recently served as president and managing director overseeing capital markets deals and 18.5 million square feet in office and retail assets.

BOSTON
Berkshire Income Realty Hires New CFO

After nearly nine years as chief financial officer of Berkshire Income Realty Inc. (Nasdaq:BIR.PR.A), David C. Quade stepped down from the post last week. Quade will continue to oversee operations of the Boston-based real estate investment trust as president and director.

Berkshire hired Shereen P. Jones (pictured, left) as the new CFO to oversee financial strategy, operations while providing oversight of corporate activities. Jones is the former CFO and executive vice president of Boykin Lodging Co. (NYSE:BOY), a hotel REIT she joined in February 2002. The senior executive also served as director and global head of hospitality investment banking at Credit Suisse First Boston in New York; senior vice president and head of the real estate, lodging and gaming mergers and acquisitions practice at Lehman Bros.; vice president of corporate finance at Kidder, Peabody Co.; and vice president of corporate finance at Oppenheimer Co.

DALLAS
CBRE Expands Debt Equity Finance Practice in DFW
CB Richard Ellis added five brokers to its debt and equity finance practice in Dallas-Fort Worth.

Mike Bryant was named executive vice president and co-lead for the firm’s Texas debt platform, and Mike Landon, Brad Peters and Jon Wooton were tapped as vice presidents. All four are from Berkadia Commercial Mortgage. Mike Ernst, previously from Behringer Harvard REIT, was appointed senior vice president to manage production and oversight for the practice.

Bryant is a 30-year industry veteran and former co-manager of Berkadia’s Texas Production team. He’s originated more than $1 billion in commercial property loans since 2004 and led the office in production of Freddie Mac and Fannie Mae loans. Bryant is on Freddie Mac’s Seller Servicer’s Advisory Council.

Landon has three decades of industry experience with a focus on mortgage banking, Before joining Berkadia, he spent 13 years with HFF and helped launch its Dallas office, and opened and oversaw the Dallas and West Coast offices of the Robert C. Wilson Co.

Ten-year veteran Peters specializes in analyzing, underwriting and closing loans for multiple property types. He’s held positions at JP Morgan Mortgage Capital, GMAC Commercial Mortgage and Capmark Finance.

Wooton is a 13-year veteran who focuses on completing financing and capitalizations for commercial properties. He spent nearly 11 years at Berkadia and two years at Archon Financial in Dallas.

Ernst is the former chief financial officer and treasurer of Behringer Harvard REIT. He was also an executive vice president and CFO for UDR Inc. and Prentiss Properties Trust.

NEW YORK CITY
Eyzenberg Joins NewOak Capital
By Fran Koerner

David Eyzenberg joined NewOak Capital as managing director and head of commercial real estate. Eyzenberg will be responsible for directing NewOak Capital’s principal activities for their commercial real estate sector.

He was previously at Prodigious Capital Group, where he served as president. Eyzenberg has experience in the execution of real estate investment banking transactions, as well as work with single asset, portfolio, and entity level financings; joint venture and structured financing; debt, equity, and hybrid products; and commercial mortgage-back securities.

LONG ISLAND
Hess Joins TerraCRG as SVP
By Tara Salbeck

Adam Hess joined TerraCRG as partner and senior vice president of investment sales. Hess will be responsible for continuing the growth of TerraCRG’s investment building sales division, and also increasing its market share in Brooklyn.

He was previously at Massey Knakal as a first vice president of sales, where he focused on multifamily and mixed-use sales in Brooklyn. Hess performed valuations on over 700 mixed-use and multifamily assets in Brooklyn, and completed more than 40 transactions with an aggregate value of over $200 million while at Massey Knakal.

NEW YORK CITY, PHILADELPHIA
LCOR Inc. Promotes O’Brien, Sigman to EVP
By Steve Wilson

LCOR Inc., a real estate investment, development and asset management company, named Thomas O’Brien and David Sigman as executive vice presidents.

Thomas O’Brien recently completed 25 years of service with LCOR in various capacities, most recently as CFO in the Berwyn, PA office.

David Sigman is responsible for developing and managing mixed-use and office projects in the New York region.

Send your People of Note to News@CoStar.com. Follow us on Twitter @LaurieForbes and @TheCoStarGroup.

Article source: http://www.costar.com/News/Article/CoStars-People-of-Note-March-20-26/127444