"American Masters"

May 29, 2009


The Redlands Symphony Organization, in planning the 2008-2009 symphony concert season , was sensative to the significance of the May 30 date for their final performance of the season. Until 1971, May 30 was the date set aside for a holiday remembering those who had given their lives for our freedoms. Titled "American Masters" the music to be performed by the symphony on this Saturday evening at 8 p.m. in the University of Redlands Memorial Chapel has all been composed by Americans. It will bring haunting folk memories and the spirit of America and will be a wonderful tribute to our creative spirit.

The concert will feature Morton Gould's American Salute, Hanson's Symphony No 2, Aaron Copelands Appachacian Spring and will conclude with Leonard Bernstein's On the Town Overture.

Tickets can be by calling 909-748-8018 or going online at http://www.redlandssymphony.com/ and going to the Tickets Page.

If We Are Still Tightening Our Belts...

May 28, 2009

"Green" is the watchword as this decade comes to its end. From "green" barely being on the radar screen to it being in every newspaper and media report almost daily, it has risen in the public consciousness. Coupled with the current recession that has made us more conscious of our living costs, "green" has become a part of one's strategy to save costs.

There are rebates for replacing your old refrigerator, there are rebates for replacing your heating/cooling system with a more energy efficient unit, there are rebates for replacing your single pane windows with new dual glazed windows. If you are really into long term savings, there are rebates for converting your household electricity to solar.

However, as mentioned earlier in this month, water saving strategies have become necessary in Southern California and some simple green related replacements can be money savers as well. Replacing your faucet tip with an aerator and replacing shower heads with low-flow units can cut both water usage and, in the case of shower heads, water heating costs.

Do these improvements affect the desirability of your home? Maybe, maybe not. We have begun to see potential buyers ask their agent to obtain copies of the homeowner's utility bills, something we rarely encountered in past years. So, where you are able, save yourself some money and know that you are contributing to the "green" revolution.

Long Gone Buyer Beware - Except in Foreclosed Properties

May 27, 2009

It seems that the traditional seller has a plethora of disclosure documents to complete and to furnish to the potential buyer of the property. It also seems that banks that have foreclosed on a property, are not subject to same standard of disclosure.

Some of the difference is understandable. The lender in many cases has never seen the property and relies upon an asset manager or a real estate agent to take pictures and to assess the condition of the property. In foreclosures, it is important that the potential purchaser hire a qualified property inspector. Possibly it is even wise to hire specialists such as licensed plumbers, heating and air conditioning professionals and structural pest control technicians. In the instance of a bank-owned property is is back to the "buyer beware" sale. The strapping of the water heater and the working smoke detectors are applicable to all sales, even bank-owned.

Traditional sellers, investor owners, and short sale owners are by law required to make disclosures as to the condition of the property using a statute mandated Sellers Transfer Disclosure form. Additionally most real estate agents also require their sellers to complete a Property Disclosure and a Supplemental Disclosure form.

In all transactions in which real estate agents are involved, the law requires the agent to do a "reasonably diligent visual inspection" and to submit their results of this inspection in writing.

In spite of all the efforts for full disclosure, it does seem that purchasers rely most heavily on the professional property inspection report. Going over this report with the inspector and the agent will often be the best description as to the condition of the property. Houses are rarely perfect and without some defects, but knowing what a buyer is buying is the standard for the sale of real estate.

Buyers Are Also Receiving Government Assistance

May 26, 2009

There is a lot of media spin about the loan modification programs designed to assist underwater homeowners. There are fewer media reports about what the government is doing to assist buyers.

First and probably foremost, the government and the Federal Reserve have managed money in such a way that interest rates have remained at all time lows. As of this past weekend, borrowers could obtain a 30 year fixed rate conforming loan (up to $417,000) for an interest rate of 4.875% with a 1% origination point. These loans generally do require the borrower to have a 20% down payment. However, if you are a borrower with less than the 20% needed, you can finance with an FHA loan at a %% interest rate for 30 years with the same 1% origination fee.

I read in Sunday's San Bernardino Sun newspaper that the California Housing Finance Agency has reinstated the California Homebuyer's Downpayment Assistance Program for first time homebuyers. CHDAP offers a loan of 3% of the home's purchase price toward the down payment and closing costs. Payments on this loan are deferred for the life of the first mortgage. To qualify, the buyer must be a first-time homebuyer and must live in the property as the buyer's principal residence. For more detailed information, you can go to http://www.calhfa.ca.gov/

On going stimulus for buyers is the federal government's $8,000 tax credit for first time homebuyers. to find more information on this assistance, go to http://www.irs.gov/ It is paid when you file your 2009 tax returns as a credit to the amount of taxes that you owe. If the $8000 is greater than the amount you owe, my understanding is that you will receive a refund check.

With prices declining to 2002 levels and more favorable interest rates, this is an opportunity for anyone who truly wishes to become a homeowner.

A Day of Remembrance

May 25, 2009


Originally called Decoration Day, memorial Day is set aside as a national holiday for all Americans to remember those who have died in our nation's service. There are many claims as to the actual beginnings of the tradition of decorating the graves of soldiers. Most evidence suggests that it began in the South during the Civil War when women's groups would scatter rose petals on the graves of fallen soldiers.


However, in 1966 President Lyndon B. Johnson officially declared the birthplace to be Waterloo, New York.


The date originally set aside for this day of remembrance was May 30, but in 1971, the U.S. Congress passed the National Holiday Act to ensure a three day weekend for Federal Holidays. Thus Memorial Day is celebrated on the last Monday in May.


The holiday has also become a time for remembering all who have died, not just our veterans.


In 2000, concerned that Americans were losing the meaning of the original Memorial Day, the National moment of Remembrance resolution was passed. We are asked to pause voluntarily and informally at 3 p.m. local time to observe a moment of respect and remembrance with a moment of silence.


It is important that we take this moment in this day to remember the ones who have gone to battle that America can remain the land of the free and the brave!

National Orange Show for the Holiday Weekend

May 22, 2009

It was once the common Inland Empire myth that if it was National Orange Show time, it would rain. As I look at the beautiful blue sky this morning, I will be surprised if the myth holds true for this weekend.

The National Orange Show Festival opens today and continues through this Memorial day weekend. The hours today are from 4 p.m. - 10 p.m. today and 11 a.m. to 10 p.m. on Saturday though Monday.

It is a great event for families with live entertainment, carnival rides and good food. Of course there will be oranges - 4 tons to be exact.

The cost is $5 today, seniors 65+ are free. Saturday though Monday $8. All military personnel and one guest are free as are children age 5 and under. If you want unlimited carnival rides, you can purchase a wristband for $15.

This Memorial Day weekend, enjoy the celebration of the citrus heritage of the Inland Empire.

Mandatory Water Restrictions Have Come to Southern California

May 21, 2009


San Diego County Water Authority Board has declared a Level 2 "Drought Alert" condition. This means that the board can adopt mandatory conservation measures for residences and businesses. Thus far Riverside and San Bernardino Counties have not moved to a "Drought Alert" situation. However, there is much concern over the lack of rainfall and snow pack of the past several years. It is increasingly import for all of us to "Be Water Wise."


I do remember the time, I believe in the 1970s when you were assigned which days you could water your lawn. In our normally dry summer season, failure to adequately water a lawn can lead to a browning out of the grass. I share with you an interesting take on lawn watering that I read in an old August 2008 Country Living Magazine.


The article recommends watering deeply but infrequently - letting the sprinkler run until the soil is moist six to seven inches down. Doing the lawn water either early in the morning or late in the evening also conserves water. Of course, if the water authority in your community sets regulations about how long you can run your sprinklers, this deep watering may not be an option. You can do this just once a week. This type of deep watering will benefit your lawn by encouraging its root system to grow deeper. For the latest in sprinkler information, you can visit http://www.rainbird.com/


Another good site for water conservation ideas is http://www.bewaterwise.com/ If we all become more sensitive to our water usage, we may be able to get through this current drought without suffering draconian restrictions.

"Helping Families to Save Their Homes Act"

May 20, 2009

Yesterday, both the U.S. Senate and the House of Representatives passed the "Helping Families Save Their Homes Act". This bill would expand an existing $300 billion program that encourages lenders to write down an individual's mortgage if the homeowner agrees to pay a mortgage insurance premium similar to what has been required for FHA insured mortgages. The program would expire in 2011, but homeowners could presently refinance their existing loan for a 30 year fixed rate loan backed by the Federal Housing Administration. Unfortunately, because of the strict eligibility requirements, to date, only some 50 homeowners are refinancing through the program compared with the projected 400,000 the bill was anticipated to assist.

The new legislation would expand eligibility, but still would be limited by the maximum loan amount of $417,000 or $769,000 in high priced areas.

Unfortunately, the government seems not to recognize that many of the homeowners who have defaulted have loans that exceed the present value of their properties. Reducing the interest rate that they pay may help some, but the sticking point for obtaining a refinance is the current appraised value, often as much as 40-50% less than the mortgage against the property. Homeowners have to be willing to recognize that they have no equity, but that they love their homes and they can afford the payments in order to be willing to consider this arrangement.

If home prices do not recover significantly in the next several years, homeowners may still be without equity and short sales may still be a necessity. It really is complicated and perhaps mare complicated that letting the foreclosure process re set home prices. Admittedly this would not be a good thing for lenders, but might be the more necessary solution to the present economic crisis.

California's Special Election

May 19, 2009

Each year it seems that California voters are asked to help the elected officials make laws. I am unaware of any other state that uses the initiative process as much as California. One of the most memorable initiatives is Proposition 13 - the property tax regulation that has been in effect since 1978. Perhaps its success is what keeps special interest groups as well as Sacramento legislators continually proposing new initiatives.

The six propositions in today's special election are the result of lawmakers' February budget agreement. Proponents, including Governor Schwarzenegger believe that these propositions will keep California solvent. The opposition sees them as diverting funds from other public programs rather than creating new monies for support of the government. California finances have become a complicated system.

It seems clear that changes need to be made in our state constitution. The budget impasses that the legislature goes through every year have an unsettling effect on citizens and create an uncertain environment. The beauty of Proposition 13 was the creation of a methodology for computing property taxes that was clear and concise: 1% of market value plus a municipality's bonded indebtedness.
You the voters have a chance to speak to Sacramento by casting your vote. It will be interesting to see how the you pick and choose amongst the proposals.

It is an absolutely beautiful day weather wise here in the Inland Empire. The polls opened at 7 a.m. and won't close until 8 p.m. That should be plenty of time for all of us to exercise our right to vote.

Short Sales, Foreclosures and Traditional Sales

May 18, 2009

Three quarters of our current real estate listings and sales are either short sales or bank owned properties. The remainder of the properties are what we now label as "traditional" sales. How does this mix affect the price at which a property is listed and offered for sale?

The pricing for traditional sales has always been a negotiation between the seller and an agent. The agent prepares a CMA (Competitive Market Analysis). This analysis looks at similar homes currently on the market, currently in escrow and sold within the past 3 months. From this data, the agent recommends a listing price, the seller may then share the price that they would like and a negotiation will arrive at the price at which the property is listed. Sometimes in this process, the owner may owe more than the price recommended by the agent. If the seller still wishes to put the property on the market at the recommended price, the property is listed as a short sale - negotiations with the lender will have to take place. (At this point, the lender may be unaware that the property is being offered for sale for less than what is owed to them.)

Short sales have developed a reputation for being lengthy and for difficulty in obtaining a response from a lender. Added to the need for negotiation between the lender and the seller is the need for a seller to stop making payments as the lender believes that "hardship" must be present for authorizing a short sale. Some progress has been made and through government intervention, lenders are beginning to drop this requirement. Buyers need to be aware that the listed price of a short sale is not the lenders agreed upon price. It is simply the price selected by the agent and the seller.

Bank owned properties are generally priced by the lender hiring a real estate agent to do a BPO (Broker Price Opinion) which is pretty much the same as a CMA. The lender then reviews the BPO and gives the agent the listing with the lender's price. A motivated lender may well select a listing price significantly under the price indicated by the BPO. They want to sell quickly and for the most part lenders have been successful. Bank owned properties may receive multiple offers and often sell above the list price.

Buyers faced with these different seller motivations should also ask their agent for a CMA or BPO. Once they have educated themselves as to current prices, they need to understand that the different types of sellers will respond differently. However, in all instances, ridiculous offers have little chance of success. Yes, this is a market that encourages negotiation, but negotiation is a two way process and all the parties need to be willing to talk.

A reminder to both sellers and buyers: Market value is the price a willing buyer, ready and able to purchase and a willing seller agree upon. Admittedly, in today's market, a third party has entered the process, the lender. Whether listing or purchasing, the sellers and buyers need to consider the lender's role.

As Usual, the Inland Empire Offers a Variety of Events

May 15, 2009

As summer approaches, the happenings seem to increase. I am picking a few, but will urge readers who know of others to hit the "comment" button" and log them in.

Opening at 11 a.m. today, the Chaffey Community Art Association is holding a fundraiser with live music at their gallery located in the historic Fillipi Winery, 12467 Baseline Road in Rancho Cucamonga. Entitled "Previously Loved Art Treasures Sale", The members of the association have donated paintings, ceramics and folk art items from their personal collections, The event is today, Saturday and Sunday. Info at 909-463-3733 or http://www.ccaamuseum.org/

In Riverside tomorrow, you can participate in a family bicycle rally sponsored by the Rotary Clubs of Riverside. Registration begins at 8 a.m. Saturday at the Fairmount Park Picnic Shelter, 2601 Fairmount Blvd. in Riverside. Organized rides, a bike safety clinic, bike tune-ups and a children's helmet giveaway will be part of the event. There will also be refreshments and music.

Participation is free. http://www.rotarybikes.org/

Chino Planes of Fame Air Museum will be holding its 2009 air show from 11 a.m. to 4 p.m. on Saturday and Sunday at the Chino Airport, 7000 Merrill Avenue in Chino. Gates open at 8 a.m. with admissions from $5 -$20. The show will feature aircraft from the past and present.

For all the historic homes and quilt lovers, the Citrus Belt Quilters will host a quilt show and a tour of 4 historic Redlands homes. From 9 a.m. to 4 p.m. on Saturday, vendors will sell food, drinks, gifts and wares. Tickets are $10 today at area craft and fabric stores or $15 tomorrow at the event. The show is at Smiley Park, 125 W, Vine Street in Redlands. http://www.citrusbeltquilters.org/

The Shakespeare Festival will be presenting a play at the Redlands Bowl Saturday evening.

Don't ever say again that there is nothing to do in the Inland Empire. I have only scratched the surface.

Real Estate Auctions - Don't Be Confused.

May 14, 2009

Recently there have been 2 full page ads for real estate auctions and extra little sticky notes on the front of a newspaper announcing a coming real estate auction. Then there are the notices printed, usually in the classified section of a newspaper, that announce the date, time and place when a property will be auctioned at a trustees' sale. These are two very different sales events.

The auction being advertised by sticky notes, mail announcement, and large newspaper ads are being put on by auction houses that represent property owners who are using the auction format to sell the properties that they own. I can remember this auction method being used in the 1990 real estate recession and have seen in come back the past 18 months. Like any auction for tangible assets, potential buyers need to register and provide the auction company with evidence of their credit worthiness. Some auction houses have lenders at the auction that will take a buyers application and provide the necessary guarantee that the buyer is qualified. A buyer who purchases a property at a real estate auction may or may not have contingency in the offer. Generally, the bidders are to have inspected the property prior to making a bid and will have satisfied themselves as to the condition of the property.

The second type of real estate auction is the result of the statutory regulations of the foreclosure process. These are auctions in the sense that interested buyers can assemble at the stated place for the sale of the property, (frequently the court house steps). These potential bidders must show the auctioneer (the representative of the Trustee who is conducting the sale for the lender) that they have either cash or bank cashiers checks for the amount they intend to bid. Once a bidder is successful at a trustee's sale, he receives a trustee's deed and becomes the owner of the property subject to any other liens that may still be recorded against the property. Folks planning to bid at trustee's sale need to have researched the property as to other liens, condition, etc. According to a ForeclosureRadar (www.foreclosureradar.com ) report, 88% foreclosure properties are not purchased through a trustee's sale, but go back to the lender. Buying on the court house steps is riskier than buying at a professional auction.

Frankly, the best way to purchase foreclosure properties is with the assistance of a professional real estate agent and after the lender has regained title to the property.

Foreclosures - Is There Another Shoe to Fall?

May 13, 2009

I keep reading in the media that there is another wave of foreclosures coming to the real estate market that could cause a softening of prices. I have been hearing this warning for several months, yet I have not discovered where these bank owned properties are being held. I know that last fall there was a moratorium on Fannie Mae and Freddie Mac foreclosures being completed, but I believe that the ban has been lifted.

In my puzzlement, I asked an agent who has been representing bank owned properties for the past several years. He confirmed that his listing inventory has shrunk dramatically. His contacts at the banks say that they have drawers of files, but that they only have a few active files. Will these drawers of files suddenly be released and flood the market with distressed properties? Do any of you know of properties that have been abandoned or foreclosed that have not yet come to market? Or are these files, properties that are being negotiated for loan modifications and they will never come to market? Speaking of loan modifications, how many of you that read this blog have a personal contact with a borrower who has been able to successfully modify a loan? Hit the comment button and let us know.

Just as a point of reference, of the properties currently listed in the IMRMLS, the percentage of bank owned to active listings range from a high of 35.5% in Bloomington to a low of 5.5% in the Yucaipa/Calimesa area. Since I have not tracked this statistic, I have no comparison to what it might have been a year ago at the low of the market. I'll check it out in the future.

Tenants in Foreclosed Property

May 12, 2009

This past week I have received several questions from agents and their clients concerning the rights of the owner and of the tenant of a property which is in the foreclosure process. In researching this issue, I learned that the laws that apply are dependent on the terms of the rental agreement plus when the rental agreement was actually executed vis a vis when the mortgage was put on the property.

The following are just a few of the laws that may apply.

1. If the tenant has a lease agreement that was executed prior to the mortgage, the tenant may stay until the term of the lease is completed. (This is a pretty rare situation as most homes are purchased with a mortgage and then rented. Of course, with the large number of refis that occurred in the past several years, it could be a possibility,)

2. If the tenant has a month to month rental agreement or a lease executed after the date of the foreclosing loan, a California law effective July 2008 requires that the tenant receive a 60 day notice to move. When the 60 days are up, the tenant must have vacated or be subject to an unlawful detainer action and eviction.

3. Even though a property is in the foreclosure process, the tenant must continue to pay the rent to the owner that is due under the rental agreement. A tenant should be particularly careful to check out anyone who claims to have the right to collect rents.

4. The owner or the property manager are not legally required to disclose to the tenant that a Notice of Default has been recorded against the property, However, it is in every one's best interest to do so as the tenant will be obliged to vacate should the property become bank-owned or be purchase at a trustee's sale.

5. The landlord is required to return the tenants security deposit or transfer it to the lender so that the lender can return it at the termination of the rental period.

As I stated at the beginning of this post, the issue is a complex one. Both tenants and landlords are well advised to seek out a reputable attorney who can clearly describe their rights.

April 2009 Median Prices

May 11, 2009

Here are the median prices of homes in the 14 communities of the Inland Empire that I have been tracking. The data is for the month of April from 2002 - 2009. If you wish to compare the April 2009 data with the March 2009 data you can check my post of April 7, 2009. Add three zeros to the posted numbers for the price: $170 = 170,000.

Banning/Beaumont.........2009/157......2008/246,,,,,,2007/300......2006/320......2005/285

...........................................2004/205......2003/153......2002/122

Bloomington.....................2009/125......2008/220......2007/414......2006/382.......2005/319

...........................................2004/205......2003/165......2002/136

Colton................................2009/118.......2008/215.....2007/325.......2006/349......2005/288

...........................................2004/178.......2003/150.....2002/114

Fontana............................2009/180.......2008/300.....2007/425......2006/410.......2005/355

...........................................2004/277.......2003/191......2002/160

Grand Terrace.................2009/240......2008/263......2007/380.....2006/399......2005/379

...........................................2004/278.......2003/193......2002/167

Highland...........................2009/125.......2008/290......2007/387.....2006/392......2005/340

...........................................2004/250......2003/186.......2002/140

Loma Linda......................2009/300.......2008/355.....2007/355......2006/375.....2005/414

...........................................2004/307.......2003/182......2002/142

Mentone...........................2009/165.......2008/327......2007/395......2006/392.....2005/399

...........................................2004/229.......2003/99........2002/150

Moreno Valley.................2009/135/......2008/230.....2007/380.....2006/370.....2005/320

...........................................2004/245.......2003/182......2002/145

Redlands...........................2009/200......2008/323......2007/385......2006/393.....2005/355

...........................................2004/310.......2003/235......2002/185

Rialto.................................2009/130.......2008/225......2007/380.....2006/370......2005/320

...........................................2004/239.......2003/184......2002/140

Riverside..........................2009/170.......2008/285......2007/399......2006/419......2005/365

...........................................2004/305......2003/210......2002/175

San Bernardino................2009/72.........2008/190......2007/317......2006/310......2005/252

...........................................2004/180.......2003/125......2002/97

Yucaipa/Calimesa...........2009/208.......2008/276......2007/375......2006/370......2005/330

...........................................2004/270.......2003/193......2002/159



These are computed by reviewing the closed transactions reported through the IMRMLS and selecting the transaction at the halfway point; half are the sales were for less and half were for more. It reflects more the mix of homes being sold rather than the actual value of any particular property.

Fun Treats for the Mother's Day Weekend

May 8, 2009

Sunday is Mother's Day and there are some fun events that your mother enjoy. Actually these

events and the fine summery weather will make for a great weekend.

The Beach Boys will be in San Bernardino on Sunday. They will bring their special brand of entertainment to the California Theatre of the Performing Arts at 3 p.m. on Sunday. Tickets for the event start at $45 and cap at $99. Information can be obtained at http://www.ticketmaster.com/ or (800) 745-3000.

For visual art lovers a walk in the park offers arts and crafts. Sponsored by the Redlands Art Association, the Spring "Art in the Park" will take place Saturday and Sunday in Smiley Park located on Cajon Street in downtown Redlands.

For Shakespeare fans, the fifth annual Redlands Shakespeare Festival begins this weekend at the Redlands Bowl. Performances are at 8 p.m. and admission is free, but donations will be gratefully accepted. On Sunday a special Mother's Day program will include a concert by the Silver Sounds Flute Ensemble at 7:15 p.m. followed by a performance of "The Tempest". For a complete festival schedule: redlandsshakespearefestival.com

Also opening this weekend is the San Bernardino County Fair at the Victorville Fairgrounds.

So many choices, so much fun to be had!

Sold Properties - April 2009

May 7, 2009

The following numbers reflect the properties reported as closed transactions for the month of April. To give some perspective as to the improvement in the volume of properties being sold in the Inland Empire, I am also including the number reported from 2002 to 2009. All data comes from the IMRMLS. (one caveat: the numbers for 2009 will probably change over the next several weeks due to late reporting by some agents. However, the numbers still reflect the present activity in the 14 communities that I have been tracking.)

Banning/Beaumont..........2009/103.......2008/90.........2007/53.........2006/76.........2005/93

............................................2004/90.........2003/73.........2002/81

Bloomington......................2009/40.........2008/8...........2007/4............2006/26.........2005/19

............................................2004/19.........2003/22.........2002/24

Colton.................................2009/70........2008/17..........2007/20.........2006/46.........2005/45

............................................2004/36........2003/45..........2002/50

Fontana.............................2009/375.......2008/149.......2007/105.......2006/244.......2005/286

...........................................2004/210.......2003/245.......2002/267

Grand Terrace.................2009/12.........2008/5............2007/5...........2006/7............2005/4

...........................................2004/8...........2003/4............2002/9

Highland...........................2009/60.........2008/31..........2007/39.........2006/49.........2005/70

...........................................2004/63.........2003/74..........2002/70

Loma Linda......................2009/9...........2008/9............2007/12.........2006/10.........2005/15

...........................................2004/11.........2003/15..........2002/12

Mentone...........................2009/8...........2008/9............2007/4...........2006/10.........2005/7

...........................................2004/8...........2003/5............2002/11

Moreno Valley.................2009/431.......2008/186........2007/87........2006/301.......2005/264

...........................................2004/267.......2003/200.......2002/258

Redlands...........................2009/48.........2008/55..........2007/62........2006/60........2005/74

...........................................2004/79.........2003/81...........2002/74

Rialto.................................2009/166.......2008/54..........2007/38........2006/105......2005/128

...........................................2004/95.........2003/113.........2002/117

Riverside..........................2009/473.......2008/251.........2007/200.....2006/414......2005/443

..........................................2004/399.......2003/338.........2002/404

San Bernardino...............2009/358.......2008/101.........2007/92........2006/227......2005/227

..........................................2004/187........2003/254.........2002/245

Yucaipa/Calimesa..........2009/50..........2008/44...........2007/43.......2006/54.........2005/80

..........................................2004/64..........2003/65...........2002/73

These numbers are only for properties listed for sale through the IMRMLS. Many properties were sold directly by developers or by owners and those sales are not included.

Some Market Stability Signs

May 6, 2009

The April magazine published by the National Association of Realtors had an article which addressed 4 common questions buyers are asking.

1. Why are the prices of homes dropping substantially in today's market?

According to Professor Karl Case of Wellesley College and a contributing author of the Case-Schiller Home Price Indices, we experienced abnormal appreciation from 2000-2006. The average appreciation for that period was 89% compared to a normal average appreciation in the years 1980-2000 of 26%. The market is moving back to the norm. (By the loss of appreciation, I think the theory is that the losses plus the gains will bring the decade 2000-2010 more in line with the 26%. It will be interesting to see if such an adjustment occurs.)

2. How do I determine the direction of prices in my market?

Supply of inventory is one guideline that is used to determine market direction. According to the article, a normal or balanced supply has 5 to 6 months of inventory. (total active listings divided by the number of houses sold per month) You can check the numbers I reported on the May 4 blog and do the calculations with the number of properties in escrow or you can use the number s of closed sales that I will be posting tomorrow, May 7. The chart in the article indicates that a 1-2 month supply is double digit appreciation, 3-4 is single digit, 5-6 is balance, 7-8 is single digit depreciation and 9-10 is double digit appreciation.

3. Why should I buy now?

4. Is home ownership really a good way to build wealth?

I will discuss the answers given for these questions in next week's blogs.

A Cinco De Mayo Party at Home

May 5, 2009

Today is a day of celebration across the United State and Mexico. Perhaps this year we are celebrating the decline in the number of H1N1 flue cases in Mexico, but really Cinco de Mayo is the celebration of the victory of the Mexican army over the French in the Battle of Puebla. Over the years Cinco de Mayo has become very commercialized and it has become a time for fun, food and dance. It actually is celebrated more in the U.S. than in Mexico with parades, mariachi music and folklorico dancing.

This year, the H1N1 flu has put a damper on some events. The big celebration at Dos Lagos in Corona has been cancelled. I do think that the Cinco de Mayo event at the Perris Hill Senior Center will still take place at 10 a.m. this morning and I have not heard that the Olvera Street event in Los Angeles has been canceled.

For many of us, a Cinco de Mayo at home can also be fun. Buy a pinata for the kids and fix your favorite enchilada casserole. If you've never made Mexican food, you can find great instructions on the web. Just google "Cinco de Mayo recipes".

This year may be a great start of a new family tradition: a Cinco de Mayo party for family. It might even grow into a neighborhood event.

Listings and Pendings - Reported for May 1, 2009

May 4, 2009

We have begun a new month and as is my custom, I report the number of active and pending listings reported through the IMRMLS on the first day of the new month. What is remarkable for the past several months is the ratio of pendings to active inventory. The active inventory is decreasing and the properties entering escrow are increasing.

Here are the numbers for the 14 communities that I have been tracking.

Banning/Beaumont..........Listings/645..........Pendings/258...........Ratio/40%

Colton.................................Listings/215..........Pendings/144...........Ratio/67%

Fontana..............................Listings/918.........Pendings/806...........Ratio/87.8%

Grand Terrace..................Listings/28...........Pendings/23..............Ratio/82.1%

Highland............................Listings/216..........Pendings/109...........Ratio/50.5%

Loma Linda.......................Listings/88...........Pendings/26..............Ratio/29.5%

Mentone............................Listings/43...........Pendings/16..............Ratio/37.2%

Moreno Valley..................Listings/1036.......Pendings/902...........Ratio/87.1%

Redlands...........................Listings/292.........Pendings/106............Ratio/36.3%

Rialto.................................Listings/473.........Pendings/352............Ratio/74.4%

Riverside..........................Listings/1644.......Pendings/988............Ratio/60%

San Bernardino...............Listings/1252.......Pendings/629............Ratio/50.2%

Yucaipa/Calimesa...........Listings/275.........Pendings/105............Ratio/38.1%

It is interesting to note that in April of 2008, many of these areas had almost twice as many active listings as they now have. Riverside, Moreno Valley, Fontana, San Bernardino, Rialto, Grand Terrace to name a few. Clearly these numbers indicate an active real estate market.

Visual Arts, Sc-Fi and Circus Time

May 1, 2009

Lots of visual art events are happening this weekend in the Inland Empire. This evening, Friday May 1, for a $15 ticket, you can attend the Redlands Community Hospital's "Evening With the Artists". Five artist will be exhibiting their works which will be available for purchase. The artists are Janet Edwards, Brad Faegre, Fred Gowland, Sheila Hansberger and Donal Jolley. From5:30 p.m. - 8 p.m. enjoy the art.

Sunday, May 3 Grand Terrace will be holding the 25th annual Grand Terrace Art Show. The hours are from 1 p.m. to 4 p.m. in the community Room of City Hall, 22795 Barton Road.

A different art genre will be seen at the Free Comic Book Day. 15 comic book artists and writers will participate in the day-long, festival-type event. 4 Color Fantasies at 7172 Archibald Avenue in Rancho Cucamonga closes their parking lot and sponsors this fun event. Throughout the Inland Empire there will be other locations as this is a nationwide program. For information, 4 Color Fantasies phone # is 909-543-8751 or http://www.4colorfantasies.com/

For Sci-fi fans, the 2009 Eaton Science Fiction Conference will begin today, Friday May 1 and continue through Sunday, May 3 at the UCR Extension center, 1200 University Avenue in Riverside. Cost is $125 for all 3 days or $55 per day. 952-827-3238 or http://eatonconference.ucr.edu/ for more information.

When it is May, it is also circus time; that is the All American Youth Circus of the East Valley YMCA; a tradition since 1929. The circus will open tonight, May 1 at 7 p.m. in the YMCA gym. There will be a 5 p.m. performance Saturday and a 3 p.m. performance on Sunday. There will be these 3 performance times for the next 3 weekends.

The first Sunday free day at the San Bernardina County Museum will be Sunday, May 3 which is also International Museum Day. Cobalt Blue (Folk Rock, easy listening) will be performing in the newly completed outdoor amphitheater.

With Cinco de Mayo approaching, you can attend the big Mexican Fiesta in La Verne. Dancing and story telling start at 2:30 p.m. on Saturday, May 2 at the La Verne Library, 3640 D St., La Verne 909-596-1934.

There are many other events happening. So many choices! Are not we fortunate to live in the Inland Empire?