Real Estate

The Mortgage Bankers Assn. boosted its forecast for 2009 home-loan originations by $800 billion to $2.78 trillion as low interest rates spur homeowners to seek out new loans. Refinancing will total $1.96 trillion in 2009 and purchase originations will increase to $821 billion, the group said.

California home prices fell 41% last month from a year earlier, more than double the U.S. decline, as surging foreclosures drove down values, the California Assn. of Realtors said. The median price for an existing, single-family detached home in California sank to $247,590 in February from $418,260 a year earlier, the group said. The U.S. median price fell 16% during the same period, the second-biggest drop on record, according to the National Assn. of Realtors.

Re "Curse you, Zillow!," Opinion, March 21 As a certified real estate appraiser, I take issue with Meghan Daum's apparent panic over "Zillow values" for several reasons. First, it's no secret that Zillow uses averages and statistics to produce its home values, with little or no human reasoning whatsoever. This is unrealistic -- not only when values are low but when they are high. With no human, preferably an appraiser, to interpret what these averages mean for the value of each individual home, the chance of error is substantial.

Sheep dot green hills. Pheasants hop across country lanes. Quaint cottages sit next to a tiny stone church. Neighbors who've known each other since birth greet strangers warmly. And for about $32 million, this leafy, nostalgic slice of England could be yours. The village of Linkenholt's 21 cottages, grand manor house, lush green cricket pitch and accompanying pavilion are part of an estate that also encompasses 1,500 acres of farmland and an additional 425 acres of woods. The entire estate is for sale -- as a whole -- with the only part not on the block being St. Peter's, built on the site of a 12th century church.

Purchases of vacation and investment homes slid 22% last year, a sign that tough economic conditions and tight lending requirements shut out buyers, the National Assn. of Realtors reported. Second-home purchases constituted 30% of the entire housing market, down from a peak of 40% in 2005, when financing was easier. Just 9% of sales last year were for vacation homes, down from 12% in 2007. Proportionally, investment properties held steady at 21%.

The Treasury Department is making it easier for hedge funds and other private investors to participate in its plan for buying up banks' bad assets, an acknowledgment of lackluster interest. Analysts said the move showed the program hadn't yet attracted enough large fund managers who may be wary of being targeted by a congressional probe or public backlash. The program's requirements also excluded too many smaller managers, they said. The government is relying on private investors to buy poorly performing real estate investments currently weighing on bank balance sheets.

DEMILLE ESTATE IS REDUCED Location: Laughlin Park, Los Angeles Description: The legendary film director bought the house in 1916 and lived in it for more than 40 years. Size: The restored estate has six bedrooms and 10 bathrooms in 11,000 square feet of living space on a 2.1-acre lot. Published on: April 6, 2008 Listed then for: $26.25 million December list price: $23.95 million Listed now for: $18.95 million Reduction from original list price: 27.8% Agent: Brett Lawyer, Sotheby's International Realty, Sunset Strip, (310)

Re "County probes its own top board," April 19 Woe to anyone who gets in front of the political steamroller in county planning. It's been that way for the 40-plus years I've been involved in Los Angeles real estate. It's also the reason most cited to justify new city creation in Los Angeles County, as typified by the city of Calabasas. The city of Los Angeles too has become more susceptible. Only political influence can justify issuing planning documents and building permits crossing two owners' property lines that benefit only one of the owners, as I see occurring in the city of Los Angeles even today.

Irvine builder Standard Pacific Corp. said its first-quarter net loss narrowed to $49.5 million, or 21 cents a share, from $216.4 million, or $3, a year earlier. Revenue declined 40% to $209.5 million. Standard Pacific had $30.8 million of impairments, including $14.1 million for firing 380 workers. Its shares fell 3 cents to $2.23.

President Obama said homeowners facing foreclosure would have a second chance under a measure he signed into law, but he added that consumers must live within their means. The law encourages banks to spare homeowners from foreclosure and cracks down on lenders who take advantage of them. Congress passed the bill this week, and Obama bypassed a promised five-day waiting period to make it law.