The Holiday Festivities Begin

November 30, 2007
If you are a parade lover, tomorrow, December 1, 2007 offers you several opportunities to watch one or more community parades. The San Bernardino YMCA Kids Christmas Parade will begin at 11:00 A.M. at Sixth and E streets. Then in the evening at 6:00 P.M. the Redlands' annual parade will begin at Citrus and Eureka and continue through downtown Redlands. This year the theme of the Redlands' parade is "It's a Wonderful Christmas."

Also on Saturday, The Redlands' YMCA will open the annual Christmas Craft Boutique and Bakery Sale at 9:00 A.M. at the YMCA building at 500 E. Citrus Avenue. On Sunday, the Y's Home Your will begin at (;30 A.M. and continue until 4:30 P.M. Tickets may be purchase at the Y on Saturday and Sunday and on Sunday at any of the homes. Call the YMCA for further details 909-793-2161. The homes are always spectacular and are decorated for the holidays.
All of these events are great ways to start your December 2007!

A Book to Show Off the Beauty of our Region

November 29, 2007

Looking for something special to send to your relatives, friends and acquaintances who have never been to our part of California. Most folks know the beauty of our coastline and the beauty of the Sierras. Fewer are acquainted with our Southern California mountains.

Ann and Farley Olander have created a beautiful photo-essay book which spot lights our three highest mountain ranges - the San Jacinto, San Bernardino and San Gabriel Mountains.

"Call of the Mountains" may be purchased at The Sun Newspaper Office at 2239 Gannett Parkway, San Bernardino, CA 92407 or order Call of the Mountains, c/o San Bernardino Sun, PO Box 9400, San Bernardino, CA 92427-9400.

The price is $34.95 which includes tax and shipping/handling.

A Full Page Ad That Really Caught my Attention!

November 28, 2007

There was a full page ad yesterday in both the Wall Street Journal and the Los Angeles Times that really caught my attention. Probably it was an ad run in newspapers throughout the country. There was a lot of open space and a picture of a large turkey wishbone and a star. The caption read "LET'S REDEEM CHRISTMAS... BY PUTTING MORE THANKSGIVING IN IT."

In smaller print at the bottom of the page in its own box were the words "The sole purpose of this message is to facilitate charitable giving - Please pass it on." The message was about giving people donations to their favorite charities.

In very small print was the name of the sponsor of the ad - The Dalio Family Foundation.

I googled this name and found that this is a Connecticut foundation formed by a hedge fund manager to give donations to worthy causes. I was excited to read about folks willing to share their wealth.

We, at Century 21 Lois Lauer Realty having been active in providing funds for local projects. 10% of every commission goes into our charity fund and is disbursed throughout the year. Now, in the holiday season, each agent receives the name of a child from the Children's Fund and each agent purchase the gift on that child's wish list. Above you can take a look at our Santa's workshop!

Why Markets Change

November 27, 2007

Why do sellers' markets change and why do buyers' markets change?

I asked myself this question after being queried by my 24 year old grandson as to what happened to change the real estate market. In my 40 years in Redlands, first 9 as a buyer and homeowner and the past 31 as a real estate agent, I have experienced both types of markets. Typically a sellers' market is called an "up" market and a buyers' market is called a "down" market.


When we moved here in 1967, Redlands was experiencing a "down" market; the result of overbuilding. In 1976-1980, it was an "up" market. Probably the result of the pent up demand after 9 years of virtually no new home construction. Then in the fall of 1980, interest rates began to rise rapidly from 9.75% in September to 16% by April 1981. The rise in interest rates and "stagflation" put an end to the "up" market. (But we still sold houses!) The market during the 1980s was more "flat" than "down", but it was a buying opportunity for buyers who could qualify at the high interest rates. By the end of the 1980s, the market was picking up, but at the invasion of Kuwait, it was as if someone slammed the door shut and sales slowed. With the closing of Norton Air Force Base, and the disappearance of the air force personnel, we entered a true "down" market.

Marketing foreclosure properties was big business and lasted into the late 1990s. Then the market began its recovery. At first slowly and by 2003 the frenzy to buy a home was everywhere. The frenzy slowed in the fall of 2005, but the job market was good, the Inland Empire economy was good and it looked like it was a pause, not the continued deterioration of 2006-2007.

Frankly, I can not discover the underlying cause of the present "down" market. Real estate markets have always been cyclical, but usually some economic event can trigger the end of a cycle.Some want to blame the media for constantly printing that the bubble was about to burst. Some want to blame the "subprime" loans. Perhaps prices finally rose too high and buyers ceased to see value in what they could afford to purchase.

If any of you reading this blog have a thought as to what changed in 2005-2006, click on "comment" or e mail me at shirleyh@loislauer.com.

List Now or List Later?

November 26, 2007


This time of year we receive calls from potential sellers. Their first question is "Should I put my house on the market now or wait until after January 1st?".


My first answer is "It depends."


If a seller is being transferred or has an urgent need to sell, December is an O.K. time to market a property.


Here are a few positive reasons:


1) People who look at homes in December are usually serious buyers.


2) Generally the inventory is a bit lower because many sellers believe it is better to wait until after the first of January to list their property. Also many sellers do not want the interruption of buyers during their holiday festivities.


3) There are some tax reasons why somebody would like to buy before the end of the year.


4) Homes which are decorated for the holidays create a warm and welcoming environment which stimulates the desire of a buyer to make a purchase.


If you are considering making a move in 2008, evaluate your needs and make your decision based on your needs. Really, the best time to list your property is when your needs and desires require a change in your housing situation.

The Biggest Shopping Day of the Year

November 23, 2007

It is amazing to me that people actually camp out over night or days in advance in order to be at the head of the line to purchase the "specials" being offered by the retail stores. The stores have really capitalized on this phenomenon and I read that some were opening at 1 minute past midnight on the day after Thanksgiving. "Door Busters" are everywhere and I am anxious to read the outcome of this kick off of the end of the year buying frenzy.

I am asking myself "How do we stimulate home buyers who lost their frenzy about a year and a half ago?"

Interest rates are still hovering around 6%.

Choices are plentiful in almost any neighborhood in which one would like to live.

And Sellers (after several years of being non-negotiable) are negotiating.

Think of it. If you made an offer on a home today, you could celebrate Christmas in your new home. What a present for you and your family!

Thanksgiving 2007

November 22, 2007


Thus far the 2007 year has been colored by a plethora of scary news reports. Turmoil in Afghanistan, starvation in Darfur, conflict in Gaza, cyclones in Bangladesh, earthquakes in Peru and real estate and money markets in the U.S. in crisis. The speed of the information highway can easily overtake us and leave us in a state of panic.


It is good that once a year, the national news takes a look for all that we have that is worthy of our thanks. So enjoy today, hopefully with family and/or friends and pause to remember your personal blessings. I know that focusing what is positive in our lives will give us the will to create more positives and to let go of the negatives.


Have a Happy Thanksgiving!

Let's Look at the Positives in U.S. Housing

November 21, 2007

It seems that each day we open the daily newspaper, we are bombarded with doom and gloom about the state of the real estate market place. Recently Doug Duncan, the chief economist for the National Mortgage Bankers Association gave a speech concerning the state of the real estate mortgage market.

Here are some numbers he cited that the media did not include in their review of his statements.

1. Thirty-Five percent of the homes in the U.S. do not have a mortgage.

2. Some 94.88 percent of the loans ARE performing.

3. Only 25 percent of all mortgages are subprime, and of these, 75 percent are

performing.

4. The foreclosure problem in the U.S. is really a story about seven states.

In the other 43 states, foreclosures have fallen in 2007 from 2006.

There is no doubt that the real estate market is going through a period of adjustment, but there is a lot of good news that is just not being reported.

It is time to be grateful for the good that is in one's life and pause for the day of Thanksgiving.

Cold Evenings Mean Cozy Fireplace Fires

November 20, 2007

As the evenings cool down, and the holiday season approaches, many of us like to sit before a brightly lit fire in the fireplace - an image of comfort and warmth.

Nowadays, we generally do not go out and chop the wood. Homes built after the 1960s typically have been plumbed for a gas starter. Wood and fake logs can be purchased at the super market. If one does not like the mess of ashes, gas logs are readily available at Home Depot, Lowe's and specialty fireplace stores.

If you are converting to a gas log appliance, here are some important reminders about the installation.

Section 901.2 of the Uniform Mechanical Code states as follows:

"In addition to the general requirements...approved gas logs may be installed in solid-fuel-burning fireplaces provided:

1. The gas log is installed in accordance with the manufacturer's installation instructions.

2. If the fireplace is equipped with a damper, it shall be permanently blocked open to a sufficient amount to prevent spillage of combustion products in the room."

There are some very realistic gas log appliances on the market and they do provide a beautiful fire in just a flick of a switch. Some even include the crackling sound of a real wood log fire. For those who like instant gratification, the gas log is the answer. For those who are more traditional, the wood log is still preferable. In either choice, ENJOY!

The Tests for a Changing Housing Market

November 19, 2007

As I return from my vacation, I am reading all the great articles that come to me via the Inman Real Estate News. I thought I would kick off my return to blogging with some excerpts from a Guest Perspective article.

"Here are some examples of how things have changed since the 2005 market:

Then: Sellers hoped for multiple offers on their homes.

Now: Sellers hope for multiple showings per month(i.e., more than one)



Then: Buyers wrote cute heart-wrenching letters about how badly they want the house.

Now: Sellers write desperate, heart wrenching letters to potential buyers hoping they buy the house.



Then: Sellers worried when their house was on the market more than five days.

Now: Sellers are relieved when their home sellers after only five months on the market.



Then: Thirty-year-old homes with green shag carpeting and harvest gold appliances are "retro-cool."

Now: Thirty-year-old homes with green shag carpeting and harvest gold appliances are expired listings.



These comparisons are the writing of Doug Buenz who is a real estate broker associate with Alan Pinel Realtors in Pleasanton, California.



Markets do change and the attitudes of sellers who really want to sell change.

The buyers are fearful, but the desire for home ownership remains a driving

force in the psyche of the American public.

Taking a Vacation

November 14, 2007

Shirley will be gone from the blog until November 19, 2007. Click on some of the archived blogs or leave questions for her to answer when she returns.

A Great Time to Buy !

November 13, 2007


If you read the October sales statistics you may wonder how I can claim that it is a great time to buy. It is interesting to me that folks scramble to buy and outbid each other in a "hot" market, but fail to purchase in a "down" or "buyers" market. Here are a few reasons to plan to purchase now.


1)The selection of homes is huge.


2)Bidding wars are no longer necessary.


3)Sellers are more receptive to offers less than the listing price.


4)Buyers do not need to feel pushed into a hasty decision.


5)Inspections are encouraged and often provided up front by the sellers.


6)Repair requests are likely to be satisfied.


7)Spec homes or new construction prices are also negotiable.


8)Buyers are not competing with investors.


9)Location can once again influence a buyer's choice. (In a "hot" market, buyers tend to buy whatever they can afford regardless of location.)


10)Interest rates are still around 6% and many first time home buyer programs are available.


If you truly want to own your own home, it is a great time to start your search!

October Sales Report

November 12, 2007


The following data was obtained from the IMRMLS report of single family residential property closed sales for October.





Bannng/Beaumont........2007/41..........2006/74...........down 45%


Colton.............................2007/11...........2006/40..........down 72%


Fontana..........................2007/58..........2006/172.........down 66%


Grand Terrace...............2007/5............2006/8.............down 37%


Highland........................2007/20.........2006/58...........down 66%


Loma Linda...................2007/3............2006/23...........down 87%


Moreno Valley...............2007/69..........2006/187.........down 63%


Redlands........................2007/31...........2006/54..........down 43%


Rialto.............................2007/42..........2006/75...........down 44%


Riverside.......................2007/108.........2006/291.........down 63%





A quick glance shows that the number of units being sold has dropped dramatically. What is evident in a review of listing and selling prices is that properties priced to reflect a slow market do sell and if priced under current market sales will generate multiple offers and will sell above list price. Conclusion:


Sellers who are serious about selling in this market need to be priced VERY competitively.

California Fall Colors

November 9, 2007


Tomorrow, November 10, the Redlands Horticultural Improvement Society will hold its annual Fall Flower show. The show will be held at Plymouth Village's Historis Kendal Place, 120 E. Palm Avenue in Redlands. The hours are 10 a.m. to 5 p.m.



The theme of the exhibition is "Floral Celebrations". It will feature holiday themed table setting designs. The Historical Glass Museum and the Redlands Art Association and other antique businesses will showcase an exhibit entitled "Historical Table settings and Embellishments from Then to Now".

Another special exhibit will be "Horticultural and Floral Design White Elephants".



The American Orchid Society, San Bernardino and Riverside chapters wiill offer plants for sale.



Tickets are $5 for adults and children under 13 will be admitted free if accompanied by an adult.

Whirpool Bathtubs

November 8, 2007


Many homes built from the 1990 include a whirlpool bathtub as an amenity in the master bath. Over time, these tubs can become grungy around the jets. It is a challenge to use the whirlpool function when the jets are emitting disgusting particles into the water.





From Barry Stone of Inman News, I quote "A simple and effective way to clean the plumbing in a bathtub whirlpool system is to fill the tub with hot water, add dishwater detergent, and run the pump for 30 minutes. Then run a rinse cycle with clear water. This should remove any residual impurities,"





It is wise to do the is "flushing" on a fairly regular basis.

Renovating The Fireplace

November 7, 2007


As the evenings become cooler, it is nice to think of a cheery fire in the fireplace. Before you build your next fire, you might want to have the chimney inspected and cleaned. I just had this done for a client and another agent referred me to a professional chimney sweep, Gash Chimney from Claremont, California (909-417-9212). He inspected, gave a written bid and when he finished the work, there was not a trace of soot left behind.


Since fireplaces are often the focal point in a room, another fireplace project that might be attracting your attention is cleaning the paint off the bricks. Decorating tastes at one time called for painting out the red bricks with the same off white latex paint that was used on the surrounding walls. Now you would like to return to the natural brick look.


How does one remove the paint? The best option is going to be a professional sand blasting company. This is a messy process and can leave gritty sand everywhere. Just make sure that you call references and get first hand knowledge of the work that a company performed. Removing the paint yourself with a chemical paint remover is not often successful and you will spend a great deal of time. If you are not totally enamored of the red brick look, you might consider refacing the entire fireplace. It seems to me that this might be an exciting alternative. You could redesign the entire fireplace in a style that creates a dramatic focal point.


When the fireplace is cleaned and redesigned you can snuggle up and sing "Chestnuts Roasting in an Open Fire."

Vote Today

November 6, 2007


Today is the day to cast your vote. In communities throughout the country, citizens have the opportunity to choose their public leaders.


The polls are open from 7:00 A.M. to 8:00 P.M.


While the elections being held today are for local leaders, it is important to choose those who will be the decision makers in your community.

Here's a Heads-up on Taxes after Disaster Settlements

November 5, 2007
The Wall Street Journal of November 1 had an informative article concerning the tax fallout from receiving insurance proceeds after a disaster. Most of us are in such shock after a major property loss, that the issue of tax consequences is not even considered. This writer, Arden Dale, suggests that knowing the rules can save money and heartache.
Taxes may be owed if the insurance company pays out even one dollar more than the cost basis of the house. The "cost basis" of the home is the purchase price plus any major improvements that were made. A disaster that occurs after a period of appreciation in home values may result in a pay out much greater than the "cost basis" if your homeowners insurance policy was up to date with the current value.
The treatment that an insured person can get in a natural disaster is for an "involuntary conversion". The gain you might receive from the insurance payout is given leeway especially if the disaster is declared federally.
If you can obtain a copy of this article, it is most informative. It alerts a homeowner to consult with a tax professional in order to comply with the rules that protect a disaster victim from undue taxation.