One of the Inland Empire Treasures

January 31, 2008


Last Saturday evening I had the privelege of attending the Sam Maloof Birthday Celebration at Cal State San Bernardino. Not only is the exhibit of Sam Maloof's woodworking art absolutely awe inspiring, the Robert V. Fullerton Art Museum is also a treasure for the Inland Empire.


Today, from 4:30 to 7P.M., Sam MAloof returns to the campus for a reception to which the public is invited. The exhibit is entitled "Sam Maloof: Essence of the Handmade." Admission is free. Parking is $4. More information: 909-537-7373.


We are so fortunate that this incrediably talented artistan has put his roots down in Rancho Cucamonga and continues to share both his work and his positive attitude about life and work. If you possibly can, stop by this afternoon. If this is not possible, the exhibit will be at Cal State San Bernardino until May 17, 2008. The Robert V. Fullerton Art Museum is open on Tuesdays, Wednesdays, Fridays and Saturdays from 10 A.M. to 5 P.M. On Thursdays the museum is open from 10 A.M. to 7 P.M.


While you are there, don't miss the permanent collection of Egyptian art or the exhibit of artist Katrin Wiese. The reception for Katrin is also this evening.

Quick Tips for Keeping Pests at Bay

January 30, 2008

Squirrels are cute little critters. I have a charming picture of my father in law feeding one. However, they sometimes do like to nibble on your tender little plants. Here is an easy way to protect your flora from the fauna. Sprinkle your plants with cayenne pepper. The cayenne pepper doesn't hurt the plant and the squirrels won't come near it.

And who has not been bothered with ants? Here's a tip to try. Put small piles of cornmeal where you see ants. They eat it, take it "home", and can't digest it so it kills them. It may take a week or so, especially if it is rainy, but I've been told that it works and it is not harmful to pets, children or the environment.

Lastly, it is now time to begin putting in your garden plants. Work nutrients into the soil. Cover with wet newspapers in layers around the plants, overlapping as you go. Cover with bark or mulch and you can forget about needing to pull weeds. They will not get through the wet newspapers.

If you have other tips, how about sharing them. Click on "comment" and enter them in the comment box that appears.

"As-Is" versus "Credit-to-Buyer" versus "Pristine"

January 29, 2008
Real estate agents meeting with potential sellers generally are confronted with a seller's desire to sell "as-is". This can be especially true in a declining market in which a seller as seen the value of the property decrease. The seller feels that making repairs or cosmetically enhances the property is "throwing good money after bad". "As-is" can work if a seller is willing to substantially discount a sale price - often much more of a discount than the real cost of making necessary improvements.
Recognizing that the carpet needs replacing or one of the appliances is out of order, a seller may volunteer to offer a "buyer credit" to cover the broken or outdated items. The argument is that a buyer will wish to choose the color of the carpet or may wish to completely remodel a kitchen, etc. While this argument can be accurate, the credit offered is usually not sufficient in a buyer's mind to cover the costs that they feel will be necessary. The other issue with not making the improvements is that many buyers have a difficult time imaging how the house will look after the improvements.
Then there is the seller who has watched the home improvement network and has learned that "staging" and "updating" will generally be recouped in a faster sale for more money. While the seller may not get the total improvement investment back, the quicker sale will eliminate those mortgage payments and permit the seller to move on.
Obviously, which strategy a seller will select will be influenced by the seller's financial ability. Once a real estate agent has made suggestions as to preparing a home for sale, the next step before making a final choice should be to get estimates from licensed contractors. Having real bids can have several advantages. First, the seller will better be able to decide whether to make the improvements as they may be less costly than anticipated. Second, the seller will be able to show a buyer the bids so that a buyer has a more accurate idea of the actual cost to replace carpet, paint or purchase appliances.
Bottom line, in a declining market such as we are presently experiencing, a quick sale can result in a higher price than might be attainable in a few more months. My experience says that "pristine" will bring the best price.

What's In - Destination Bathroom?

January 28, 2008

In yesterday's Los Angeles Times, Real Estate Section, there was a small article titled "What's new on buyers' wish lists". Since I believe it is important for real estate agents to know what amenities appeal to buyers, I read this small article with interest.

Mark Nash, author of several real estate books has completed his annual survey of buyer preferences. I quote from the article:

"Among the findings: Buyers want a destination bathroom - the kind of getaway that has multiple task areas like a freestanding or throne bathtub, a flat screen TV, wireless Internet and an in-home hair salon..

And, because we love our pets so, how about a shower for Fido that he can simply step into instead of having to be hoisted?

Ugh to those chair-on-the-rail-systems for aging boomers who can't handle stairs; bring on the min-elevators.

And who among us doesn't secretly long for a "statement" fireplace - outdoors of course."

The article was written by Ann Brenoff.

It seems to me that this 2008 wish list is certainly an example of "conspicuous consumption:.

What Exactly is My Credit Report?

January 25, 2008
Yesterday I posted information on steps you could take to improve your credit rating. I received a question requesting an explanation of what all is included in a credit report. A credit report will include all credit accounts obtained through banks, retailers, credit card issuers, etc. The report will also include any public records such as judgements, tax liens and bankruptcy. The report will also show any inquiries and the names of companies who have obtained a copy of your credit report. (The latter is a bone of contention as inquiries can cause rating companies to lower one's credit score.) The information on the report will only reflect the credit grantor's reports. Not all credit grantors report and some only report to one credit bureau and not to all three. The three major bureaus are Equifax, TransUnion and Experion.
The credit grantors give the bureaus the payment history of your credit file. This includes both open and closed accounts. Also payment in full will not remove the credit history for the paid off account.
So how long will the information remain in your credit file?
Open accounts paid as agreed may remain on your credit profile indefinitely.
Negative credit history is removed after 7 years.
Collection account remain 7 years from the date the account was place with a collection agency.
Charged off accounts remain for 7 years from the date of the last activity.
Bankruptcies remain for up to 10 years.
Paid tax liens remain up to 7 years from the date released. Unpaid tax liens remain indefinitely.
Judgements remain for 7 years from the date filed.
Inquiries will remain for up to 2 years and impact a credit score for 1 year but will only appear on a mortgage report for 90 days.
Bottom line - It is important to manage your use of credit and make those monthly payments as agreed - i.e. on time.

Ways to Repair or Improve Your Credit Score

January 24, 2008
Now that the rules for loan qualification are changing, it is more important that ever to have good credit. Ads are proliferating from credit repair consultants and so are credit scam artists. In an article by Ilyce Glink in Inman News, she offers suggestions on repairing your credit rating. The following are a few of her suggestions.
1)"Pull a copy of your credit history from http://www.annualcreditreport.com/. Sponsored by the three credit-reporting bureaus, Equifax, Experian and Transunion, this site is the only place to go to get a truly free copy of your credit history."
2)"Check your credit history thoroughly. ...Some credit reports have serious errors in them, so fixing these will boost your credit score."
3)"Negotiate with your creditors for a lower interest rate. Paying less in interest means more of your payment goes toward paying down your balance. Check out sites like http://www.cardratings.com/ and http://www.cardtrak.com/ to compare credit card offers. Just be sure you read the fine print. Some credit cards require you to charge on the new account each month."
4) Pay everything on time, even if you can only make the minimum payment. The most crucial component of your credit history and credit score is your ability to pay your bills on time each month."
5)"Don't charge more than 25% of your maximum available credit limit...You're better off spreading out your debt between three or four different cards than having all piled on one card."
6)"Don't open and close a lot of accounts..."
7)"Don't share credit (except with a spouse)."
It generally will take a full year to substantially improving your credit score. As with any desire to change your behavior, the time to start is now.

So You Have Decided to Rent rather than Sell.

January 23, 2008
Your home has not sold and you must move due to a job transfer or some other personal need. You decide that you will rent your home until the market improves. We often have sellers who ask about the possibility of renting their property.
If you decide to become a landlord, there is much to learn. What do I charge for rent? How much security deposit should there be? Can I say no pet? Can I say no smokers? Can I say no children? These can be crucial issues for a new landlord. Yes you can say no pets - unless the renter has a seeing eye animal or some other animal that assists the renter. Yes you can disallow smokers. But NO, and a very big NO, you can not discriminate against children. Discrimination laws are important for every potential landlord to read and understand.
The best way to meet fair housing laws is to set your criteria for qualifying tenants and then stick to it. If the potential tenant must have income 3 times the monthly rent, make certain that you evaluate every applicant against that requirement.
Renting your home is much more than placing an ad selecting a tenant and collecting rent. It can involve repairs and sometimes the unpleasantness of late rent payments. There are property management companies you might want to employ so as to have a professional deal with the issues that arise. Becoming a landlord can be a necessary step if you must move and find selling difficult. However, before you change from being a potential seller to being a landlord, it would be wise to make a chart of the pluses and minuses of each role.

Finally, remember that to have the $250,000 exclusin from capital gains for a single or $500,000 for a couple you must have lived in the house 2 of the last 5 years. If you decide to rent because you don;t want to sell in a down market, you want to remember these time frames.

If this is your main motivation, consider it carefully. Are you betting that the market will be better next year and that your house will still be as crisp and clean as it is pre tenant? Soooo,

you really want to be a landlord?

Lighting up Your Outdoor Space

January 22, 2008

It once was that the front porch light was the main and ofttimes the only exterior lighting for a home. It was turned on with an inside switch and used primarily when guests were expected or family members were away for the evening. It was a symbol of welcome to the outside world.

Today, homeowners have many options for lighting up the exterior environment of a home. There are spotlights and low voltage lights as well as traditional lights mounted in strategic locations. The use of timers, motion sensors and photocells have become popular ways to turn these lights on and off.

Here are some of the devices that you can use to automate your lighting.

1)120-volt timers: You can automate any 120-volt light switch (your usual switch) by replacing the existing switch with a timer. There will be a knob and a dial to set the on and off times.

2)Low-voltage timers: For exterior low-voltage lights (the kind usually used around garden paths) you can also install a timer. The timer is part of a transformer that converts the 120-volt house current to low-voltage, usually 12 volt. The timer and transformer are contained within a waterproof housing that mounts anywhere inside or out. Connect the low-voltage wiring to the transformer, install the removable timer pins to turn the system on or off at the desired time.

2)Portable timers: These are especially useful for holiday lights or party lighting. The timer may come already mounted on a stake, or it may have mounting holes to allow it to be attached to a wall or post (don't allow it to lie on the ground). There will be a cord to plug into a 120-volt outlet.

3) Photocells: A photocell is a small electronic device that reads the amount of available daylight it can "see" through its eye. When the circuits detect that the light has fallen below a certain level, it will activate a switch that send s power to the lights it is controlling - ideal for lights you want to go on at dusk and off at dawn.

4) Motion detectors: A motion detector has a wide angle eye that can detect motion within a set degree or arc that is in front of and to each side of the detector. When motion is detected, it immediately triggers the light - usually one or two spotlights -to come on. Motion detectors make great security lights.

All of these devices are available at home centers and lighting stores. Although most can be installed by a homeowner, it is recommended to hire an electrician to be certain that they are properly installed and meet building and safety codes.

The Price is Right

January 21, 2008

Houses do sell in any market! Since the current consensus of public opinion is that we are experiencing a declining value real estate market, buyers are super concerned with value and how a seller's price reflects value. So how does a seller choose the right price. Getting a market analysis from a professional real estate agent is a good first step. In fact, it can be very useful to obtain more than one Realtors opinion of value.

Sellers often want to price there homes at the high end of a value range with the idea that they can always reduce the price. While this is certainly true, it is also not a winning strategy in a declining market. The sellers who are most successful in receiving offers, are sellers who recognized that prices may be less in 30 days and they list at the lowest reasonable price. Hence buyers who are doing comparable shopping quickly recognize the value of the property.

We are in a market where the right list price is the most important step in marketing a property. Choose your listing price wisely!



During a boom real estate market, houses become commodities - or maybe when they are placed on the market, houses are always regarded as commodities by buyers. During a

Questions to Ask Your Lender (cont - 2))

January 18, 2008
The questions today address the specific loan you for which you are applying.
1. What will be the actual principal balance of my loan? This may seem to be a silly questions since your loan application was for a specific amount. However, sometimes lenders roll their fees into the principal. It is important for a borrower to understand the amount of principal in the loan documents as the principal is the amount upon which the interest payments will be calculated.
2. How much will the monthly payments be? Does the amount the lender quotes include taxes and insurance or will I be paying them separately?
3. When will the payments be due? What is the grace period? In general, loans are written so that the monthly payment is due on the first day of each month.
Also, the grace period for most lender will be 15 days after the due date.
4. What is the length of the loan? Is there a balloon payment at the end? (I.E. Is the loan fully amortised?) With all the new loan options, it is important to know exactly what is being covered in your monthly payment. A fully amortised loan will include both principal and interest in every payment. Part of the concern in the financial world of 2007-08 is that many loans were written with a fixed rate for 3 years, 5 years or 7 years and then either come due or switched to an adjustable rate loan.
5. Will I be required to have Private Mortgage Insurance (PMI)? If so, when and how will I be able to remove it?
6. If the loan is paid off early, will there be a prepayment penalty? A prepayment penalty can be up to 6 months of interest if the loan is paid off prior to its due date. Typically, prepayment penalties do not extend beyond the first 5 years of the loan.
7. If I pay for the appraisal, will I receive a copy of the appraisal?
8. If I pay for a credit report, will I receive a copy of my credit report?
When you are interviewing your chosen loan representative, it is important to ask these questions and the questions from the 2 previous days' blogs. However, the questions cited today should also be with you when you meet with the lender or notary to sign your loan documents. No matter what you have been told, the documents will be the written contract between you, the borrower and the lender. If the documents are different than the terms you expected, don't sign them until you are clear about the loan you are receiving.

Questions to Ask Your Lender (cont)

January 17, 2008
Yesterday's questions concerned the various types of lenders that offer real estate financing. To the borrower, it is probably not critical which type of lender is being used. To me, as a borrower, I would want to be certain that the lender I am using is licensed in the state of California and that the lender has been in the business for a least five years - more years would be preferable.
The questions today concern the type of loan being considered.
1. What is the interest rate being offered and is it a fixed rate or a variable rate?
Is this rate the best possible rate available to a person with my credit score?
(Rates can vary depending on a borrower's credit score.)
2. Will the interest rate being offered be "locked-in" and, if so, for how long?
A question to accompany this could be "Do you see interest rates rising or
going down during my loan processing time? If you "lock-in" a rate, usually
for a 30 day period, the lender will honor the locked-in rate if rates go up.
However, if rates go down, most lenders will still require the loan to be
written at the locked-in rate.
3. What would be my Annual Percentage Rate (APR)? The APR is the cost of
credit and includes the interest rate plus all other finance charges. If the APR
is .75 to 1 percentage point higher than the interest rate you were quoted,
there are significant fees being added to the loan.
4. What other costs besides the lender fees will I be required to pay? These
other costs may include points, prepaid items such as taxes, insurance and
prorated interest costs until your first monthly payment is due. One point is
equal to 1% of the loan amount. Other fees will be title insurance and escrow.

Tomorrow, I shall suggest the questions to ask about the details of the loan itself.

Questions Every Borrower Should Ask the Lender

January 16, 2008



Since there has been so much media reporting on the increase in foreclosures and the placing of blame on the mortgage industry for not properly informing borrowers about the terms and conditions of the loans being written, I thought it might be helpful to offer potential borrowers a list of appropriate questions to ask when interviewing a lender. It has occurred to me that the blog would be much too lengthy to cite all the questions at one time. Because I think these questions should be helpful, I shall spread the questions over several blogs.



1. Finding out the type of lender represented by the loan agent to whom you are speaking can be a first step. "Do you represent a mortgage broker, a mortgage banker, or a financial institution?"



This is a great question, but my suspicion is the ordinary borrower may not know the difference.


Mortgage Brokers - take applications and process loan packages but place them with wholesale lenders for underwriting approval and funding.


Mortgage Bankers - are licensed by the state and make loans directly to consumers using funds from the secondary market such as Freddie Mac and Fannie Mae. A mortgage bank is a non-depository institution and does not receive funds or income from depositors.


Financial Institution - Generally is a lender that is licensed by the state or federal government. Banks and Savings and Loans are in this category. They can process the entire mortgage including accepting applications, processing the application, underwriting and funding the loans.



In today's real estate mortgage market, mortgage brokers do the major share of

real estate loans. Their advantage to the borrower is that they will shop for the wholesale funder that offers the best rates and terms.

2. If choosing a mortgage broker, ask: "Are you licensed by the state?" As a consumer, you can contact the Department of Corporations (http://www.corp.ca.gov/ or the Department of Real Estate (http://www.dre.ca.gov/) to make sure the mortgage broker is properly licensed. A mortgage broker's ads must contain the license number.
3. How long have you been in business? If the mortgage broker has been in business more that 5 or 6 years, you can have some assurance that they are knowledgeable about the lending business.

Knowing that you are dealing with a reputable company is the first step to take in selecting your lender.

Tomorrow I will suggest the questions you should ask the lender regarding your particular loan.

The Three Reasons a Property Will Sell.

January 15, 2008

Having just been through a real estate market of "irrational exuberance" (to quote Alan Greenspan's term for the stock market), we seem now to be in a real estate market of "irrational depression". Buyers are sitting on the side lines waiting for the "bottom", sellers are seeking the magic potion that will make their property sell.

For as long as I can remember, "Location, Location, Location" were cited as the three vital qualities that made a property sell easily. Certainly location is an important factor that influences a buyer's decision. For a seller, location is also the one quality about the property that the seller is unable to change. Thus, I suggest that price and condition play a role in what makes a property sell.

In yesterday's blog, I addressed important and basic condition issues. Today, I will examine the pricing issue.

If you purchased a property as an investment rather than as a place to put down roots then you probably need to accept what purchasers of stocks and other investments know: Investment portfolios go up and come down. The value of your property investment will be determined by current market conditions. If you have a choice to hold or sell, look at the current market value and then decide to hold on or sell. If, however, due to personal considerations such as job change or family changes you need to sell, the price you ask must reflect the current market, the condition of your property vis-a-vis other similar properties and the location. Choose your real estate agent carefully, get more than one market analysis and above all, don't look back.

We are entering a new year, a new market and the price you ask will need to reflect this new reality.

The Five Important Tasks for Potential Sellers

January 14, 2008

In this real estate market (and in any real estate market) the first task for a potential seller is to ask for advice from professionals. Real estate agents who have been selling for more than five years are probably a worthwhile place to start. Realtors see more houses in a week than most folks see in years. The agents know which houses sell easily and which will probably not sell. Yes, it is about price but condition is a major factor. A realtor's mantra used to be and still is "crisp and clean". Clear away the clutter, rent a storage unit and give your house a deep cleansing. The agent will suggest what other fixes might be needed and can save sellers from costly mistakes.

The second task is to use professionals to "dig deeper". Find out before you list your property what defects might be hidden or what systems might need attention. Taking care of plumbing, heating and electrical issues prior to marketing a property will help to make a future transaction proceed smoothly.

The third task that has become more important in the past several years is to check the exterior of the home. Is the stucco in good condition? If you have wood or composition siding, is it free of deteriorated areas? Is the roof still in good condition or are there areas that show age? And windows have become the remodel that seems to give the seller back the most for the cost of replacing old windows with the new vinyl clad. (I just redid 7 windows and a sliding door for $6900.) And finally, clean up the yard, trim the trees and plant some bright flowers.

The fourth place to freshen up is the bathroom. Bathrooms need to be clean. Rusty or stained counters and old faucets or light fixtures should be replaced.

Replacing a toilet with a new low-flow model will also help the environment.

And last, but not least, check out your kitchen. It is not necessary to replace counter tops with granite. In fact, the agent will be able to tell you whether granite is appropriate. Ripping out an entire kitchen is very costly and will not necessarily improve the chances of a house selling. The tasks that help are cleaning out the cupboards, getting rid of all the clutter and small appliances that cover the counters and making certain that all the appliances are clean and in good working order. They do not need to be new, but they need to be well maintained.

Most of these tasks will not require huge outlays of money, but they are the tasks that insure that a seller's property will compete favorably in the condition category.

The Benefits of One Stop Shopping

January 11, 2008

The January 2008 Realtor Magazine, a publication of the National Association of Realtors, has an article entitled "An In-House Edge". The writer suggests that using a one stop brokerage company offers the consumer convenience and the opportunity to have the brokerage "team" work to ensure that the transaction proceeds smoothly. Particularly in the 2007 real estate environment, many transactions failed because of miscommunication between the lender, the escrow, the agent and the purchaser. In the 2008 real estate market, communication will be paramount.

Already, we have seen the lender change the underwriting criteria just before the date of closing. Fortunately, the buyer was using our in-house lender and we were able to coordinate and early closing thereby saving the entire transaction.

Just as an addendum to the benefit to consumers, the benefit to an agent's ability to know what is occurring in the mortgage marketplace makes the agent better able to serve the consumer. This morning we were alerted that mortgage rates are at a four year low. Agents with buyers can assist them to get qualified and to take advantage of these favorable rates (5.5% on conventional conforming loans).

No Forecasts - Just the Facts

January 10, 2008
This week I have posted the data from the MRMLS regarding transactions in a number of communities in the Riverside/San Bernardino region. As the year progresses, I will post data and we will see if trends emerge.
Every economist and news reporter seems to feel the necessity to project the future of the housing market. Obviously it is important for decision makers to know how to plan their business income and expenses. Looking at what has happened and keeping up what is happening is the foundation of planning.
Just as an aside.....Look at the New Hampshire primaries. Even Hilary Clinton's strategists thought she would lose significantly but she won! Now, if you listen to commentators they are interviewing pollsters and asking how they could have been so mistaken. Forecasting how human beings will act is clearly not an exact science.
So, too, with the purchase of a home and the trends in the real estate market place. Way back in the 18th century, Scottish philosopher David Hume raised the question, "How do we know (and "Know" is the important word) that the future will resemble the past?" I have followed the real estate markets of the past 40 years in Redlands and have seen that the peaks are typically 10 years apart and do not last forever. We have had our peak, probably in 2005, now the dust will settle and we will watch how the trends will emerge.

Statistical Data for 2007 vs. 2006

January 9, 2008
Having reported the units sold data from the IMRMLS for the month of December 2007 and the third quarter of 2007, today I am reporting the number of units sold as found in the IMRMLS for the year 2007 vs. the year 2006. In most Inland Empire communities that I track, the drop in units sold is dramatic. The changes range from 66% fewer to only 25% fewer. As has been true in the past 30 years of my tracking numbers, Redlands remains one of the more stable markets.
Banning Beaumont.............2007/605..........2006/942
Bloomington........................2007/79............2006/229
Colton...................................2007/197..........2006/517
Fontana................................2007/1011.........2006/2278
Grand Terrace.....................2007/71.............2006/106
Highland..............................2007/328..........2006/616
Loma Linda.........................2007/113............2006/176
Mentone..............................2007/55..............2006/76
Moreno Valley.....................2007/974...........2006/2529
Redlands..............................2007/542...........2006/718
Rialto...................................2007/431............2006/967
Riverside.............................2007/1963..........2006/3770
San Bernardino..................2007/1061..........2006/2289
Yucaipa/Calimesa..............2007/435...........2006/675

Fourth Quarter 2007 Units Sold Report

January 8, 2008

Yesterday I reported the December 2007 statistics for Inland Empire communities. My data comes from sales reported through the IMRMLS.

Today I am reporting the units sold in the fourth quarter of 2007. By recording these numbers we can keep tract of trends in the activity of local sales. Remember these are number of units reported sold through the IMRMLS and generally do not include for-sale by owner or new home tract sales.

Banning Beaumont...........2007/123...........2006/190.........2005/267

Bloomington......................2007/15.............2006/55...........2005/81

Colton.................................2007/24............2006/104.........2005/155

Fontana..............................2007/194..........2006/476.........2005/681

Grand Terrace...................2007/20............2006/24...........2005/45

Highland............................2007/68............2006/125..........2005/202

Loma Linda.......................2007/18.............2006/40...........2005/26

Mentone............................2007/14.............2006/11.............2005/30

Moreno Valley...................2007/223..........2006/485..........2005/833

Redlands............................2007/99............2006/149..........2005/199

Rialto.................................2007/99............2006/191...........2005/310

Riverside...........................2007/348..........2006/778..........2005/1162

San Bernardino................2007/209..........2006/473..........2005/683

Yucaipa/Calimesa...........2007/72.............2006/151...........2005/186

December 2007 Closed Sales reported in IMRMLS

January 7, 2008

The following are the number of residential single family units reported sold in December 2007 through the IMRMLS. I have also included the numbers for December 2006. Tomorrow I will report the third quarter 2007 numbers.

Banning/Beaumont..........2007/30........2006/54

Bloomington......................2007/5..........2006/18

Colton.................................2007/5..........2006/27

Fontana..............................2007/54........2006/162

Grand Terrace...................2007/3...........2006/6

Highland............................2007/12.........2006/36

Loma Linda.......................2007/4...........2006/7

Mentone.............................2007/1...........2006/1

Moreno Valley...................2007/82.........2006/145

Redlands............................2007/29.........2006/44

Rialto.................................2007/22.........2006/65

Riverside...........................2007/108........2006/228

San Bernardino................2007/55..........2006/145

Yucaipa/Calimesa............2007/20.........2006/48

The Good News is.........

January 4, 2008

If you listen to talk radio or TV News or if you are a reader of print media, you could definitely feel that the sky is falling. There is no doubt that we are in the midst of a changing and challenging economy. However, in our business, the residential real estate business, all is not doom and gloom.

First off, if you are planning to or needing to purchase a new home there are many choices and most are priced to reflect the current levels of value.

Secondly, if you are selling there are buyers who will be making offers and the
agents who are good negotiators will bring a transaction to fruition.

Thirdly, and for both buyers and sellers, there are lenders making loans and the interest rates today are as low as they have been in almost 6 months: 6% for FHA 30 year with 3% down payment and 5.75% for conventional 30 year fixed with 20% down. There are still 5% down loans with a slightly higher interest rate. If there were no loans, sellers would not be able to sell so sellers benefit from the current mortgage environment.

As we learned last year, you can never know for sure what tomorrow will bring, but what we know from a long history in the real estate business is that over time, owning a home is an enriching experience!

Could be Helpful Trivia

January 3, 2008

Real Estate buyers of the 21st century want as much information about the property that they are purchasing as the seller, the agent, and the inspectors they hire can furnish to them. They want to know:

How old is the roof?

How old is the carpet?

When was the house last painted?

How old are the appliances?

Etc., etc, etc.

In response to a question concerning the age of a hot water heater, my resources discovered this Internet site. www.fastwaterheater.com/model%20%20serial%20onumber.htm. When I went to this site, I found a guide to discovering the date of manufacture of a water heater. This is not necessarily the date it was installed, but it will be close.

This is probably trivial information for many readers, but for me as an agent it is always great to be able to respond helpfully to client questions.

Knowing the Real Estate Market

January 2, 2008

I thought I would begin the new year by recording the number of active and pending listings as reported in the IMRMLS. As the year proceeds, this can be a reference as to how the real estate market in the Inland Empire is changing.

Bannning/Beaumont.......Active/850...........Pending/64

Bloomington.....................Active/195............Pending/8

Colton................................Active/340...........Pending/24

Fontana.............................Active/1768..........Pending/128

Grand Terrace..................Active/71...............Pending/6

Highland...........................Active/390............Pending/29

Loma Linda......................Active/106.............Pending/4

Mentone...........................Active/71................Pending/6

Moreno Valley..................Active/2087..........Pending/213

Redlands...........................Active/405............Pending/39

Rialto................................Active/813.............Pending/77

Riverside..........................Active/2699..........Pending/204

San Bernardino...............Active/1887...........Pending/141

The number of active listings has decreased from the high number in September 2007. Some of this is probably due to the holidays. It will be interesting to watch the trends as to year 2008 progresses.

Welcome in the New year 2008

January 1, 2008

It is a beautiful and sunny day in the Inland Empire. I am posting my 294Th blog and continue to enjoy the effort to find information that will be helpful to those of you who have an interest in real estate news. Certainly 2007 was a remarkable year. When a market is transitioning, either up or down, it takes a period of adjustment and that was exactly the characteristic of the 2007 real estate market in our area.

I do not have a crystal ball that can tell me what will occur in 2008. I do know that as prices have come down and interest rates have remained in the 6% plus or minus range, there are many properties that have become attractive to buyers who consider owning a home a goal.

Yes, sellers will be making downward adjustments to their selling prices, but the loss for many is basically a loss in paper gain considering that on statistic I read stated that home prices in California had risen 84% since 2001.

I hope that in 2008 a home once again becomes the center of a person's daily existence and where they enjoy the pleasures of family and friends. Just as the macro environment of the world shapes our lives so, too, does the micro environment of our residences.

Cheers !