Two Days of Bluegrass in Temecula

March 15, 2013
Temecula's Bluegrass Festival returns Saturday and Sunday, March 16 and 17 from 11 a.m. to 5 p.m. The festival has an outdoor main stage and uses the Old Town Temecula Community theater with an evening concert at 7 p.m. Saturday.
The bands participating will bring their own unique style of bluegrass music. Since the weatherman predicts a beautiful sunny weekend, this outdoor music festival will make a great family outing. Most of the performances are free. For information , directions, etc. go to www.temeculacalifornia.com

The Best Time to Buy or Sell

March 14, 2013
This week I posted the numbers of closed residential real estate transactions for the month of February. To me, the numbers are indicative of a stabilizing and recovering market. I know the hype in the media is hhow much better sales are now than they were a year ago. Check the numbers. For our region they are better, but not spectacularly better. So is this a good time to buy or sell?
The answer, as always, is "It depends."
It depends on a persons' housing needs and financial situation. Haas your familial status changed? That could be marriage, divorce, death, additions to the family, etc. Do you now need more home or less home? Are you wanting to upgrade or downgrade? Is the commute to work getting too long? Have you changed jobs and now have increased income? In reality, personal considerations such as the answers to the above questions will determine whether now is the best time to buy or sell.
It is commonly thought that the best time to actively enter the residential real estate market as a buyer or seller is when prices are favorable to being a buyer or to being a seller. Certainly this is one important consideration. Ultimately, however, the best time is when the property that meets your wants and needs is available at a price that allows you to purchase it.

The over $400,000 Real Estate Market

March 13, 2013
The following numbers do show clearly where today's real estate market is in contrast to where it was in 2006. From 2012 to 2013 there is recovery in the over $400,000 real estate market, but the higher priced house in our region still have a ways to go to regain lost equity. These are the numbers for February 2013, 2012, 2006 and January 2013.
Banning/Beaumont..........2013/1...........2012/0.........2006/7.........Jan/2013/0
Bloomington...................2013/0...........2012/0.........2006/4.........Jan/2013/3
Colton............................2013/0...........2012/0.........2006/2.........Jan/2013/0
Fontana..........................2013/2...........2012/3.........2006/93.......Jan/2013/3
Grand Terrace................2013/0...........2012/0.........2006/2.........Jan/2013/0
Highland.........................2013/1...........2012/0.........2006/17.......Jan/2013/1
Loma Linda....................2013/0...........2012/0.........2006/4.........Jan/2013/1
Mentone.........................2013/0...........2012/0.........2006/0.........Jan/2013/0
Moreno Valley................2013/0...........2012/0.........2006/78.......Jan/2013/0
Redlands.........................2013/5...........2012/10.......2006/23.......Jan/2013/8
Rialto..............................2013/0...........2012/0.........2006/13.......Jan/2013/0
Riverside.........................2013/34.........2012/17.......2006/162.....Jan/2013/23
San Bernardino...............2013/0...........2012/0..........2006/13......Jan/2013/0
Yucaipa/Calimesa...........2013/3...........2012/3..........2006/13......Jan/2013/4
Buyers for these over $400,000 properties are still scarce.

Median Prices - February 2013, 2012, 2006

March 12, 2013
For those of you who have an interest in numbers, here is the monthly report of median prices for the months of February 2013, 2012, 2006. It is encouraging to see the improvement over 2012. A reminder - these numbers are not arrived at though any real economic analysis. They are the result of taking the total number of closed sales reported for the month and dividing by two and posting the price of the property at that halfway point.
Banning/Beaumont............2013/162,000........2012/145,000........2006/305,000........Jan/170,000
Bloomington.....................2013/175,000........2012/132,000........2006/330,000........Jan/160,000
Colton..............................2013/130,000........2012/121,500........2006/335,000........Jan/120,000
Fontana............................2013/225,000........2012/210,000........2006/400,000........Jan/235,000
Grand Terrace..................2013/191,000........2012/145,000........2006/348,000........Jam/195,000
Highland...........................2013/198,000........2012/145,000........2006/380,000........Jan/185,000
Loma Linda......................2013/225,000........2012/185,000........2006/329,000........Jan/247,000
Mentone...........................2013/95/196..........2012/140,000........2006/275/350........Jan/125/173
Moreno Valley..................2013/175,000........2012/144,000........2006/372,000........Jan/179,000
Redlands...........................2013/212,000........2012/186,000........2006/380,000........Jan/250,000
Rialto................................2013/185,000........2012/165,000........2006/365,000........Jan/180,000
Riverside...........................2013/229,000........2012/180,000........2006/400,000........Jan/235,000
San Bernardino.................2013/130,000........2012/100,000........2006/298,000........Jan/130,000
Yucaipa/Calimesa.............2013/200,000........2012/160,000........2006/370,000........Jan/220,000

Residential Closed sales - February 2013,2012 and 2006

March 11, 2013
The most common complaint of real estate agents these days is that the inventory is so low and that listings are receiving multiple offers. What is interesting to note in the following numbers is that the volume of 2013 closed residential real estate transactions is down in some areas from the numbers of 2012 and 2006, they are pretty similar in other areas.
Banning/Beaumont............2013/76........2012/95........2006/68
Bloomington.....................2013/18........2012/24........2006/20
Colton..............................2013/29........2012/39........2006/42
Fontana............................2013/171......2012/180......2006/190
Grand Terrace..................2013/15........2012/6..........2006/10
Highland...........................2013/51........2012/38........2006/39
Loma Linda......................2013/11........2012/12........200610
Mentone..........................2013/3...........2012/14........2006/4
Moreno Valley.................2013/163.......2012/164......2006/224
Redlands..........................2013/57.........2012/56........2006/50
Rialto...............................2013/71.........2012/81........2006/71
Riverside..........................2013/282.......2012/332......2006/335
San Bernardino................2013/155........2012/126......2006/176
Yucaipa/Calimesa............2013/64..........2012/52........2006/38
One other interesting datum to note is the low volume of 2006. At the peak of the up market, agents had the complaint that they have today - low inventory. The peak market was similar in another characteristic - multiple offers. In today's real estate market is is not at all unusual for a new listing to have multiple offers the first day that it is published in the MLS. It is not just one or two offers, but can be ten or twenty. These multiple offers began at the lower priced end of the market but are now moving into the over $400,000 market. As I post the numbers for median prices and for the over $400,000 sales it will be interesting to note the trends, if any, in these areas of the real estate market.

What's a Seller To Do?

March 7, 2013
Buyers and the buyers' agents may be frustrated but how are sellers and sellers' agents handling this wild market?
A seller lists a house based on a comparable market analysis (CMA) done by the real estate agent. The seller has seen what has sold recently, what is in escrow and what the competition will be when he adds the property to the active listings. Within 24 hours the agent has presented him with from 1 to 50 offers. (I even overheard an agent saying that a property owner in MorenoValley had received 70 offers.
A real estate agent's duty to a seller is to assist in obtaining the highest possible price for the property. Thee issue becomes: What is the offer that will net the seller with the highest possible price. Offers may be all cash. They may require FHA loans or conventional loans. A buyer may request the seller to pay a portion of the buyer's closing costs. A buyer with a loan may or may not have a contingency regarding the loan or the appraisal. The escrow period may be short or long. One of the offers may be from the listing agent whho is acting as a dual agaent.
What's a seller to so?
With the assistance of the listing agent, the seller needs to check through the terms and conditions of each offer. Perhaps, in this real estate market, agents need do make spread sheets with price, loans, appraisal, inspections, termites, escrow length, home warranty, etc. All the items that can affect the eventual net to the seller.
Once the offers have been sorted though, perhaps the agent and the seller can pick the 3-5 best ones and counter those offers. The sellers counter can state specific terms or "highest and best". This strategy could bring forth the highest possible price that a buyer is willing to pay. It also can clear up some of the mistrust that buyer's agents and their buyers have about being treated fairly.

What's a Buyer To Do?

March 6, 2013
The inventory of residential real estate for sale continues to shrink. The tales that agent are telling about the number of offers they have written for a potential buyer increases. As I posted yesterday  buyers and their agents are frustrated. So.....what's a buyer to do?
I cannot reiterate enough that a serious buyer in today's real estate marketplace MUST select a lender and do what ever is required to get a pre approval. That means making aloan application, paying for the crdit check, providing copies of bank statements and tax forms and whatever other documentation the loan agent requests in order to approve a loan for you. The pre approval letter is strongest when the only issue remaining is the appraisal.
It was once the case that submitting an offer as soon as possible when a property came on the market gave a buyer an advantage; i.e. having your offer accepted before other offers came in. No longer does this seem to be an advantage. Listing agents are waiting days, if not weeks, before the seller responds to the offers. It seems like they enjoy collecting as many offers as possible. This can give both the agent and the seller bragging rights as to how many folks wanted the property.
So....what's a buyer to do? The first step - the pre approval letter. The second step is to find the property that  that meets your lifestyle and needs and that is located where you want to live. Then write the highest and best offer you possibly can qualify for and make it as straightforward an offer as fits your comfort zone. Unfortunately, this is not a market that gives buyers negotiating room.