Closed Sales for October 2009-2002

November 10, 2009

Here are the reported numbers of closed single family properties as reported in the IMRMLS for the month of October in the years 2009 back to 2002. Especially noted the dramatic number changes in the years 2008, 2007 and 2006. Clearly from October 2006 to October 2007 the market slowed. What is even more interesting is that by October 2008, the market had again changed. This data reflects volume, not prices, but the speculation would be that the 2007 to 2008 change in volume was the result of the drop in prices.

Banning/Beaumont......2009/140......2008/137......2007/48........2006/77........2005/79

.........................................2004/72........2003/81.........2002/70 Bloomington.................2009/32........2008/37.........2007/2..........2006/25........2005/30

.........................................2004/29........2003/24........2002/27

Colton.............................2009/53........2008/71........2007/13.........2006/43........2005/63

.........................................2004/54........2003/52........2002/44

Fontana..........................2009/303......2008/377......2007/73........2006/198......2005/276

.........................................2004/226......2003/246......2003/225

Grand Terrace...............2009/14.........2008/10........2007/8.........2006/9...........2005/16

.........................................2004/14........2003/10.........2002/8

Highland........................2009/62........2008/79........2007/24.......2006/61.........2005/63

.........................................2004/65.......2003/73.........2002/61

Loma Linda...................2009/17........2008/11.........2007/4.........2006/25.........2005/17

........................................2004/13........2004/11.........2002/12

Mentone.......................2009/8..........2008/13.........2007/2.........2006/4...........2005/8

.......................................2004/5..........2003/16..........2002/7

Moreno Valley.............2009/338......2008/548......2007/84......2006/211........2005/307

.......................................2004/304......2003/283.......2002/240

Redlands......................2009/62.........2008/60.........2007/34......2006/55.........2005/73

......................................2004/63..........2003/78.........2002/78

Rialto...........................2009/151........2008/137........2007/52......2006/87........2005/110

......................................2004/107........2003/131........2002/121

Riverside.....................2009/477........2008/508.......2007/134....2006/344......2005/421

......................................2004/400.......2003/418........2002/379

San Bernardino..........2009/341........2008/290.......2007/95......2006/188......2005/222

......................................2004/198........2003/246.......2002/260

Yucaipa/Calimesa......2009/65.........2008/56..........2007/34......2006/54.......2005/73

......................................2004/58.........2003/81..........2002/51

There are the numbers. They begin to look as though we are returning to a normal volume of transactions. It will be interesting to watch how the year 2009 continues.

The Big News - Home Buyer Federal Tax Credit

November 9, 2009

After much speculation and much pressure from the interested groups, the Congress passed, and President Obama signed, the extension and revision of the Home Buyer Federal Tax Credit Act. The information that I have received indicates that this act provides for the extension of the $8,000 tax credit to first time home buyers purchasing a property that till be their principal residence. It also added a $6,500 tax credit for buyers who have been residing in their principal residence for 5 consecutive years out of the past 8 years if these buyers are purchasing a home to be their principal residence.

There are other eligibility requirements. Homebuyers who file as single or head-of-the-household taxpayers can claim the full $8,000 or $6,500 (depending on which eligibility they have) if their modified adjusted gross income is less than $125,000. Fir married couples filing a joint return, the combined income limit is $225,000.

The eligibility period for the tax credit is for homes purchased after November 6, 2009, and before May 1, 2010.

All homes with a purchase price of less than $800,00 qualify, including newly constructed or resale, single family detached, townhouses or condominiums, provided the home will be used as their principal residence.

This tax credit is a refundable credit which means that is the amount of the income taxes that you owe is less than the credit amount for which you qualify, the government will send you a check for the difference.

Obvious, this is a quick overview of the tax credit act. If you need more information, I feel certain that it can be obtained from http://www.irs.gov/

What to do This Weekend

November 6, 2009

Usually in my Friday morning post I mention a few events happening around the Inland Empire. If you really want to enjoy a fun event, drive on up to Newberry Springs and attend the Pistachio Festival. It will be taking place from 9 a.m until 8 p.m. Saturday at the Newberry Springs Community Park on Newberry Road south of Interstate 40 in Newberry Springs. Admission is free. For more information you can call 559-322-9918 or on the Internet http://www.pistachiofestival.info/

However, this weekend is THE TIME to call a Realtor and start your house hunting project. In just about one hour, President Obama will be signing into law and extension of the $8,000 tax credit for first time home buyers. Added to this legislation is a $6,500 tax credit for existing homeowners who have owned and lived in their houses for at least five years. The extension will be available until April. Details will be posted at a later date.

These tax credits are wonderful benefits for those who fit the criteria. What with prices of housing at their lowest level in several years and interest rates below 5%, it s a great time to consider entering the real estate market.

Of course, after touring houses Saturday, you could treat yourself to a performance by the Redlands Symphony. Entitled "Horns of Plenty", the symphony will present a concert of music by Mozart, Hayden and Beethoven. The concert begins at 8 p.m. and tickets are $16-$50. (909)748-8018 or http://www.redlandssymphony.com/

Flipping Has Returned

November 5, 2009

Remember when the real estate market was going crazy. Folks were buying houses and sometimes within a six month period they were reselling - and making a profit. Then the marked tanked and rather than increases in prices, there were decreases in prices. Flippers who entered the market late in the cycle were put in the position of actually using the property as an investment and renting it or, letting the lender take it back through foreclosure.

In the present real estate market, with prices still pretty volatile and mostly on the downward trend, it would seem that "flipping" a property to make a profit would be out of the question. Not so. Both FHA and Conventional lenders have stepped in to regulate the "flipped" property. For 90 days after a property is purchased by an investor, FHA will not make a loan on that property. Just this week it was announced that conventional lenders will not loan on flipped property unless the borrower puts at least 20% down.

How did the current flipping scene come about? Investors with cash available go to the court house steps and at the foreclosure auction bid on the property. No longer are there no bidders, there are many gathering to here the trustee's representative announce the auction. Lenders have the first bid, but it seems that they are reducing the amount of that first bid to a level that attracts investors looking to flip. It was once the case that the first bid by the lender was the amount that was owed plus the costs of sale. From what I hear that is no longer the case and properties may sometimes sell for much less. Investors are also going to lenders and purchasing a block of properties which they then repair and put on the market.

While flipping is a strategy to make money, the properties that I have researched that are flips seem to indicate that the investors wants a quick return and therefore resells at a relative slim margin of profit.

Even in the worst of times, folks can be entrepreneurial, but is still takes a reserve of available cash.

Clouds in Cyperspace

November 4, 2009

Recently the business media has been writing articles on "clouds". As I understand"clouds", they are remote servers on which to file and store data. Interestingly, CENTURY 21 Lois Lauer Realty has been using a "cloud" for the past 4 years. Our Escrow Department and our Transaction Coordination Department have been entering all documents onto a vast off-site server. Our clients, customers, vendors and agents receive a password and they are able to remotely pull up their documents and view them. At the close of a transaction, their documents are downloaded onto a CD and the clients have a paperless way to keep their documents.

Transitioning to this type of storage was not always smooth, but staff and agents are definitely finding it useful.

Our "cloud" is called Planet RE and although most of us may not understand the technology involved, we do know the benefits of using cybertechnology. We can access our transactions from our home computers and we can forward by e-mail any documents requested by lenders, buyers and sellers .

It was scary at first not to be able to "touch" your documents. In order to reduce the "scare factor" we have a back-up paper file until the transaction is completed and for a short period thereafter.

As more businesses see the benefits of subscribing to a remote system for their files, the skillful computer person will have an edge. Since the genXers and younger folks take texting and computer use for granted, "clouds" are much in the forefront of business investment.

California is Still A Land of Opportunity

November 3, 2009

A recent Time Magazine cover story featured California. Commenting that the state of California is the 8th largest economy in the world, the writers clearly believed that the future of our state will be bright. Throughout 2009 there has been much bad news; budget deficits, huge numbers of foreclosures and banks going under. However, California is the state that encourages innovation and innovation ultimately creates jobs and wealth.

A look at our own Riverside/San Bernardino County area reflects this innovative and entreprenural spirit. Medical advances such as heart transplants and proton beam therapy have their centers in our region. We have a concentration of higher education institution that encourage research in fields such as biology, botany, geology, ecology, and geography. The world's largest developer and producer of GIS technology is located in Redlands. The San Bernardino County Museum has one of the world's largest collection of bird eggs that are becoming of prime importance to researchers in the field of environmental changes. We had an experimental site for solar energy. We have fields of wind machines.

Like much of California, we have recreational facilities that offer boating and camping and hiking and skiing. We have beautiful mountains and deserts.

Finally, unlike some of the pricier coastal regions, we have affordable housing. According to the latest data, 67% of our wage earners can afford our median priced homes. We are coming out of a national, perhaps international, economic downturn. Now is the time to enjoy our clear, crisp weather and the opportunity to prepare for a bright future.

If you know other benefits of living in our area, post a comment.

LIsting and Pending Ratios hold steady in October 2009

Novemebr 2, 2009

As I have been doing now for over a year, I search the IMRMLS data for the number of active listings and the number of reported pending sales. The pending sales numbers could be a tad greater than reported if the properties that are reported as on the market for back-up offers were to be included. I have not included them in the following numbers.

Banning/Beaumont.......Active/465.......Pending/239........Ratio/.514

Bloomington...................Active/62.........Pending/66..........Ratio/1.065

Colton..............................Active/124.......Pending/96..........Ratio/.774

Fontana...........................Active/405.......Pending/616........Ratio/1.521

Grand Terrace................Active/18..........Pending/15..........Ratio/.833

Highland.........................Active/145........Pending/93.........Ratio/.641

Loma Linda....................Active/60..........Pending/27.........Ratio/.45

Mentone.........................Active/20..........Pending/15.........Ratio/.75

Moreno Valley...............Active/494........Pending/765.......Ratio/1.549

Redlands.........................Active/213........Pending/107.......Ratio/.502

Rialto..............................Active/193.........Pending/285......Ratio/1.477

Riverside........................Active/992.........Pending/862.....Ratio/.869

San Bernardino.............Active/671.........Pending/543......Ratio/.809

Yucaipa/Calimesa........Active/203.........Pending/106......Ratio/.522

Most of the activity is still in the under $400,000 range, but there is a slight pick-up in both listings and pendings in the over $400,000. Bloomington, Colton, Grand Terrace, Mentone and Moreno Valley have no pending sales reported in the over $400,000 range.