Welcome 2010

January 1, 2010


"For auld lang syne, my dear,


for auld lang syne, we'll take a cup of kindness yet,


for auld lang syne.


To all our friends both locally and in cyberspace, we wish you a very satisfying 2010.

P.S. Sunday, January 3 is a free day at the San Bernardino County Museum - 9 a.m. to 5 p.m.

"Ring Out Wild Bells"

December 31, 2009

The words of Alfred, Lord Tennyson in his long poem "In Memoriam" seem an appropriate toast to 2009; perhaps even to the entire first decade of the 21st century. I quote the first two verses of one of the sections of this lengthy tribute:

"Ring out , wild bells, to the wild sky,

The flying cloud, the frosty light;

The year is dying in the night;

Ring out, wild bells, and let him die.



Ring out the old, ring in the new,

Ring, happy bells, across the snow;

The year is going, let him go;

Ring out, wild bells, and let him die."



Most of us in the real estate profession will be happy to say farewell to 2009. I suspect that many buyers and sellers will also hope that the challenges of 2009 will be replaced with more resolution of the effects of the housing downturn as the real estate market resets values. So, to paraphrase:

Ring out the talk of loan modification,

Ring in the help that's long been promised.

Ring out the long approval times,

Ring in the change so widely promoted.

Ring in 2010 with better regs,

Ring in 2010 with fewer snags,

Ring KMART bells for sales completed,

Ring out the old times, ring in the new.

As is evident, I am not a poet, but my Toast for the new year is sincere.

Some Government Intervention That Effected the Real Estate Market

December 30, 2009

The week between Christmas and New Year's Day is often the week of reflecting on the year just ending. 2009 was certainly the "Year that Was". Here are a few of some government actions that certainly had an impact on the sale of real estate.

1. The $10,000 tax credit for California homebuyers of new construction. The total amount allocated for this benefit was quickly used, but it does seem that it did succeed in reducing the standing inventory of newly constructed homes. The bill set aside $100 million dollars for this program.

2. The $8,000 first time homebuyer's tax credit enacted by the federal government. Since most of the homes that were sold locally were to first time home buyers, it can be judged that this credit along with the very affordable prices and historically low interest rates was a great incentive for buyers.

3. On a less positive note, the establishment of the Home Valuation Code of Conduct was a source of major controversy and confusion among lenders, real estate agents, buyers and sellers. The government, in an attempt to correct the inappropriate appraisals that were a part of the housing bubble, decided that lenders and agents influenced appraisers. Therefore, neither lenders nor agents were to have any direct contact with appraisers. A central clearing house was used to assign an appraiser to a transaction. Unfortunately, appraisers were selected that were out of the area and in some cases were unfamiliar with the neighborhoods to which they were assigned. As of today, efforts are being made to correct this HVCC.

4. This perhaps is not truly a government decree, but lenders and their underwriters developed a "desk review" system for appraisals. Thus, a person who had never seen the property had the authority to change a field appraisal if that person looked at the comparables that were used and decided that they were inappropriate and that the actual market value of the property was less. The effect of these processes outlined in items 3 and 4 was the elimination of market forces in the setting of property values. Maybe in light of the excesses of 2005-2007, such oversight was necessary, but it created much confusion about the point at which a buyer or seller could know that a transaction could be completed.

2009 was a year of climbing out of a hole and some of the actions were forward moving and some seemed like barriers.

Predictions Are Everywhere

December 29, 2009
I thought I might add a few predictions that actually might have a chance of being on target in 2010.
1. After almost two years of real estate price declines, sellers will recognize that prices are no longer what they were in 2005-2006. Some will even recognize the need to pay attention to the current analysis that a competent real estate agent prepares for them. The "but I want what I could have sold for two years ago" will no longer be their mantra.
2. Prices will not rise significantly and in some segments of the market prices may still see downside adjustments.
3. Buyers will adjust to new lender requirements for down payment monies and loan to income ratios.
4. FHA loans and probably VA loans will be major financing options.
5. Foreclosures will still be with us, but by the end of 2010 should be a smaller percentage of the real estate scene.
There are five predictions to check on this time next year. I'll be paying attention as 2010 evolves.

The Bright Side of 2009

December 28, 2009

As we begin the final week of the year 2009, we have many reflections of a year of unprecedented challenges. However, I thought I would begin listing some of the events or projects that for me are signs of positive progress in the Inland Empire economic picture.

The University of California at Riverside (UCR) is definitely a positive for Riverside. This year, they moved forward with there plans to add a medical school to their campus. They also are doing a spectacular job of building a fine arts venue in downtown Riverside with the construction of the "Art Block." It is a good sign that these projects are continuing even with all the cutbacks in the UC system.

Then there is ESRI located in Redlands. The completion of the corporate headquarters building and the expansion and rehab of other buildings is clear evidence that this is a growing business that is adding jobs to the Inland Empire market. The collaboration between the University of Redlands Town and Gown organization and ESRI in bringing outstanding lecture programs to the new ESRI auditorium and making them open to the public free of charge is a real contribution to the intellectual life of the community.

A third positive for me is the signs that many of the vacant warehouse type buildings are becoming occupied. The media are reporting sales of some of these buildings and on a drive-by, I can see big trucks bringing in equipment and lights on in the buildings. Hopefully the occupation of these buildings is a sign that the industrial and manufacturing segments of our area are having a revival.

Why don't some of you click the comment button and add your positives?

Holidays are for Creating Memories

December 25, 2009


CENTURY 21 Lois Lauer Realty wishes all of you the merriest of holiday celebrations.

Here's to the Season

December 24, 2009

Here's to the season

Of family and friends

Of giving of gifts

And of making amends.

Of hustle and bustle

To finish one's tasks;

Of thinking of others

Of wishing all well

Of pausing at last

In remembrance of why

Celebrations began.

The message is clear

And gives us much cheer

"Peace on Earth, Goodwill to mankind"

Let's all be a part of making it come to be.

Another Gift for Your Home

December 23, 2009

Since we mentioned front doors in yesterday's blog, let's also consider asking Santa for a new garage door. Back in the 1950s through the 1980s many, if not most Southern California garage doors were of the "lift-up" type. They were controlled with huge springs, that hopefully did not fail when you and your car were in the garage. They were heavy and when they snapped, they flew.

Then, along came the "roll-up" garage doors. New construction abandoned the old "lift-up" and "roll-up" doors were clear evidence of a newer home. Bit by bit, homeowners began replacing their "lift-up" doors with "roll-up" doors. For homeowners wishing to upgrade their properties, these new garage doors gave a wonderful up-dated appearance to a home.

If you have an older home and have not yet made the switch, the time is now. These new doors will also make your home compliant with the laws that require automatic reverses when there is something beneath the path of the door. They come with electric eyes which create this safety feature.

Maybe new garage doors are not on your wish list, but I believe, they will be a pleasure throughout the future.

Ask Santa for a New Front Door

December 22, 2009


Remodeling magazine's annual "Cost vs. Value Report is out. The new addition to the 10 remodeling projects that give a homeowner the best return on investment is a mid-range entry door replacement. It is the only home remodeling project that REALTORS expect to generate a full return for the money spent. It is the least expensive of the 33 projects included in the analysis, yet nationally the average return on investment came in at 128.9%. In 48 of the 60 cities surveyed, it generated better-than- 100% return according to the REALTORS in the survey. Some estimated its return at more than double the cost.


The saying goes "There is no second chance at a first impression". A new entry door will create a fresh and updated look and getting a potential buyer to want to see the remainder of the house is an important step in the selling of a property.


So, Santa, all I want for Christmas is a new front door.

The Holidays Are All Aglow

December 21, 2009

Just in passing, today is the shortest day of the calendar year. The sun rises later and sets sooner leaving many hours of darkness. However, we are in the season of holiday lighting. Any drive around your community after dark will be brightened by light displays both modest and elaborate. The invention of the miniature lights has made lighting displays easier to install. Then there are the lighted sculptures of deer and trees and animals and whatever else a manufacturer can create. Added to these light displays are the enormous inflated snowmen, Santas, toys, nutcrackers, etc.

I can remember when my parents would take a tour with my sister and I to see all the light displays. This was back in the 1950s so we know that the tradition of outdoor lighting displays has been with us for a long time. According to historical records, the first electric holiday lights were displayed in the home of Edward Johnson, a colleague of Thomas Edison, just three years after the lights were invented. However, electrically lit trees were not common until after World War II.

Outdoor holiday lights were really not introduced to the public until 1927-1928, about 45 years after the first electric tree lights were demonstrated. General Electric was the first company to offer prewired Christmas light strings, but since they were unpatented, the manufacture of these prewired strings of bright lights proliferated.

I recommend that you set aside an evening and take a tour. The creativeness of the lighting is worth the trip.

Buy Art and Support the Loma Linda Children's Hospital.

December 18, 2009

In my ongoing effort to highlight special happenings in our Inland Empire region, here is one that offers an opportunity to support the Loma Linda University Children's Hospital and purchase some one of a kind works of art.

The Gifted Artist Charity Show and Auction will be held at Chaffey Community Art Association Museum of Art from 5 p.m. to 10 p.m. on Saturday. The Museum is located at 12467 Baseline in Rancho Cucamonga.

More than three dozen artists will be participating in this charity auction. The event will also include music and other entertainment.

Guests are asked to bring an unwrapped toy to be entered in a drawing.

Thomas Brillante of the Art Institute of California has organized this auction with contributions from many artists in the animation and film industry. 100% of the proceeds will go to the children's hospital.

For more information go on the Internet http://www.giftedartist.blogspot.com/

(As far as I have been able to determine, guests may just attend with no ticket required.)

A New Short Sale Versus a Foreclosure Dilemma

December 17, 2009

An article this morning in the Wall Street Journal was entitled "Debtor's Dilemma: Pay the Mortgage or Walk Away." The article dealt with homeowners whose mortgages exceed the present market value of their property. It offered six questions homeowners should ask themselves before they stop making payments on their mortgages. However, what seems also to be a dilemma in this real estate market is the question of offering the property as a "short sale/subject to lender approval" or just letting the foreclosure process run its course.

From a homeowner's point of view, the financial loss may be the same.

But, in the world of real estate transactions, there is another perspective of the short sale vs. foreclosure dilemma. Both can be very lengthy processes. The next dilemma is the question of what price to put on the property. Since, it seems that the lender will not negotiate until an offer is submitted, comparable properties are the best guide. Some agents are recommending hugely discounted listing prices for short sales based on the hugely discounted prices lenders have become willing to accept at foreclosure auctions. Thinking that a short sale offer might be more readily accepted by the lender if it is not so far below what is owed, sellers and agents select a price that looks to be in keeping with comparable sales. Truly a dilemma!

If the goal is to keep a foreclosure off of one's credit report, a short sale can be a good choice. The homeowner can request that the debt be reported as "satisfied" and the dings on one's credit can be lessened.

Short sale transactions have gotten the reputation of being tediously long. These short sales can be dilemmas for buyers as well as sellers. If lenders and/or their servicers would act, folks could get out from under their debt, lenders could rid themselves of non-performing assets and buyers would be purchasing a property at the new market value. Let's hope that the negative publicity that lenders have received concerning their responses to short sale offers has the effect of changing the way that lenders respond. If a normal sixty time frame from offer to closing could be achieved, some of the dilemma about choosing a short sale vs. a foreclosure could disappear.

Some December Gardening

December 16, 2009

We had a truly "soaking" rain last weekend, so in the bright and sunny days that have followed, you can take a look at the exterior of your property. Is is a good idea to check out the timer clock for your automatic watering system. Reset the clock for the length of time that will be necessary for winter watering. Since we have experienced several years of very dry winter weather, we may have forgotten that we can save water by resetting the timer to perhaps an every other or every three day schedule. In the cooler weather, less water evaporates and less water is needed. For all of you fortunate folks who have a week or so of holiday vacation, sprucing up your yard is great exercise and you will reap the benefits next Spring.

December is a great month to prune your shrubs and trees. In today's Internet world, you can get some great pruning information by using a search engine with the key word "pruning".

December is also a time to plant tulips and spring bulbs that you have stored in your refrigerator.

As you walk your garden, make notes on plants that are not thriving and plan your replacements. Garden shops still have bright annuals that will add color. Plants such as calendulas, pansies, petunias, ranunculus and sweet william to name a few.

A light feeding of nitrogen on cool season lawns will also be good insurance for healthy grass.

You can also get some beneficial exercise as you rake up the leaves that the storms have stripped from the deciduous trees. The bright yellow and orange leaves do add color to your lawn, but they do need to be raked up before they turn to a mushy brown goo on your grass.

Of course, you may have to work around all the bright holiday decorations that you have installed, but they will also be more beautiful in your pruned and cleaned up garden.

Brisk Sales Outlook

December 15, 2009

Here we are at the middle of December. Here we are in the middle of the holiday season. Traditionally real estate sales slow as folks prepare for their holiday celebrations. In our office it seems as though this is not a typical December in our real estate market place. Sales for the first 15 days of December have been very brisk. Real estate agents who would just as soon kick back and celebrate the holidays are busy showing property and writing offers.

There are clearly characteristics of this market that may account for the increased activity.

1. The extension of the $8,000 first time home buyer tax credit .

2. The added $6,500 tax credit for move-up buyers.

3. The incredibly low 30 year mortgage interest rates.

4. Sellers who have come to realize that they must price their homes competitively. (They must consider the low, low prices that banks are listing their bank-owned properties for.)

Unless you have all cash, it is probably too late to purchase and close before the end of 2009, but wouldn't it be great to start 2010 with a move into your new residence? Believe it or not, this December may prove to have been the start of a revitalized real estate market.

Median Prices - November 2009-2002

December 14, 2009

Here are the median prices for the closed single family residential transactions as reported through the IMRMLS. In the fourteen communities that I have been tracking, there was very little change in the median price in November 2009 from the month of October 2009. Just a reminder, this is not a scientific sampling. I simply divide the number of closed transactions that are reported and divide by two. The prices of the properties at this number are the prices I use to report the median - half of the sales were closed for less and half were closed for more.

Banning/Beaumont........2009/167,500.......2008/200,000.......2007/255,000.......2006/300,000

...........................................2005/329,000.......2004/229,000.......2003/160,000.......2002/130,000

Bloomington....................2009/123,000.......2008/142,000........2007/305,000.......2002/365,315

...........................................2005/355,000.......2004/270,000........2003/192,000.......2002/161,000

Colton...............................2009/136,000.......2008/135,000........2007/310,000........2006/300,000

...........................................2005/310,000.......2004/242,500........2003/187,500........2002/140,000

Fontana............................2009/205,000.......2008/236,000.......2007/365,000........2006/414,000

...........................................2005/395,000.......2004/310,000........2003/236,000.......2002/182,895

Grand Terrace.................2009/225,000.......2008/240,000........2007/295,000.......2006/370,000

...........................................2005/355,000.......2004/318,000........2003/222,000.......2002/179,500

Highland..........................2009/150,000.......2008/185,000........2007/329,500........2006/355,000

..........................................2005/377,000........2004/270,000.;......2003/191,900........2002/170,000

Loma Linda.....................2009/330,000.......2008/240,000........2007/375,000.......2006/448,000

..........................................2005/360,000.......2004/308,500.........2003/255,000......2002/285,000

Mentone..........................2009/210,000.......2008/325,000.........2007/365,000......2006/345,000

..........................................2005/275,000.......2004/149,000.....;...2003/170,000.......2002/95,000

Moreno Valley................2009/148,000.......2008/162,000........2007/300,000.......2006/375,000

..........................................2005/370,000.......2004/286,000........2003/210,000.......2002/166,000

Redlands.........................2009/220,000.......2008/239,000........2007/376,000.......2006/389,000

.........................................2005/422,000........2004/325,000.......2003/283,500........2002/224,000

Rialto..............................2009/150,000........2008/178,000........2007/300,000.......2006/365,000

.........................................2005/365,000.......2004/290,000........2003/203,000.......2002/165,000

Riverside........................2009/190,000........2008/211,900.........2007/333,000.......2006/420,000

.........................................2005/406,000.......2004/329,000.........2003/257,500.......2002/195,000

San Bernardino............2009/99,900..........2008/112,000.........2007/250,000.......2006/320,000

........................................2005/305,000.......2004/229,000........2003/146,000........2002/114,000

Yucaipa/Calimesa........2009/190,000.......2008/240,000........2007/352,000.......2006/350,000

........................................2005/380,000.......2004/290,000........2003/248,000.......2002/196,500

In communities such as Bloomington, Grand Terrace and Mentone where there were fewer transactions , there was often a wide discrepancies between the median and the sale prices of the properties both before and after. However, you can get an idea of the trend in the market.

The Weather Outside May be a Bit Frightful But....

December 11, 2009

Cloudy, cold, possible rain ad snow at our higher elevations. Yes, it is December and we are experiencing a bit of winter weather. You can just bundle up and enjoy. If you enjoy ice skating, the Inland empire offers at least two venues for this sport. The Ice Garden Skating Rink is the newest attraction in Big Bear Lake this winter. The rink opens today in the heart of Big Bear Village. Hours are noon to 6 p.m. Sunday through Thursday and noon to 8 p.m. on Fridays and Saturdays. Single sessions cost $8 for adults and $6 for children 13 and under. Skate rentals are $4 per person.

If you are reluctant to drive up the mountain, there is an outdoor skating rink in the Main Street area of Riverside. You can skate and enjoy the 3.5 million twinkling lights that line the Mission Inn. Ice rink hours through December 19 are 4-9 p.m. Monday through Friday and 4-11 p.m on Saturday and 4-10 p.m. on Sunday. One hour costs $13 and includes skate rental.

If you are spending your Saturday doing holiday shopping, you can enjoy the holiday spirit Saturday evening at the Redlands' High School Clock Auditorium. At 7:30 p.m. Saturday the Redlands Community Music Association is sponsoring the third annual Celtic Christmas celebration. There will also be a performance on Sunday afternoon at 3 p.m. General admission is $20; $40 for preferred; children 12 and younger will be admitted free with one parent attending. www. redlandsbowl.org

Is the Inland Empire Receiving TARP Funds?

December 10, 2009

Yesterday evening I had the opportunity to attend the ESRI/University of Redlands Town and Gown program in which the speaker was Earl Devaney, Chairman, Recovery Accountability and Transparency Board. Mr Devaney was in Redlands to Meet with ESRI administrators and staff. An important process in establishing accountability and transparency for the TARP funds is the creation of an interactive web site. The use of the GIS mapping software has made the information posted on the site accessible to any person interested in learning how these funds are being allocated.

The site is http://www.recovery.gov/ and does not require user names or passwords. The home page features a map of the USA. By clicking on a state, you go to information on allocations to the state. The site allows you to enter a zip code and obtain information for that municipality. It takes a little experimentation to navigate, but once you get an understanding of how to open the multiple windows, the information obtainable is unbelievable.

You can learn to whom the monies were awarded, how much of the grant or contract has been spent and whether or not it created any jobs.

The site just went up in October and the next updated postings will be in January or February.

The site is interactive and includes facebook and other social networks. Citizens can report their concerns about the recipients and about how the funds have been allocated.

For the first time, citizens can take an active role in monitoring government spending. The word used yesterday evening was "transformational".

Washington may not be acquainted with the local recipient, but local citizens are and the hope is that citizens will be motivated to critique the use of the funds. The hope is that enough citizens care and will participate in the monitoring process. Let's make sure that the funds received in the Inland Empire play their intended role in our economic recovery.

November Closed Sales - 2009-2002

December 9, 2009


Here are the numbers for the closed transactions as reported though the IMRMLS.


Banning/Beaumont.......2009/110......2008/120......2007/47........2006/68......2005/104


..........................................2004/79........2003/85........2002/76


Bloomington..................2009/19.........2008/19........2007/10........2006/19.......2005/33


.........................................2004/18.........2003/29........2002/23


Colton.............................2009/45.........2008/47........2007/9..........2006/37.......2005/54


.........................................2004/47.........2003/30........2002/42


Fontana..........................2009/227.......2008/326......2007/82.......2006/160......2005/235


.........................................2004/224.......2003/192......2002/188


Grand Terrace...............2009/4............2008/8.........2007/10........2006/11.........2005/14


.........................................2004/12..........2003/7..........2002/7

Highland........................2009/57..........2008/58........2007/35.......2006/36........2005/81

.........................................2004/54.........2003/54.........2002/51

Loma Linda....................2009/3...........2008/10.........2007/10.......2006/10..........2005/7

.........................................2004/12..........2003/7...........2002/7

Mentone.........................2009/11..........2008/4...........2007/13.......2006/7............2005/10

.........................................2004/5............2003/10.........2002/7

Moreno Valley...............2009/319........2008/414.......2007/72......2006/190........2005/347

.........................................2004/216........2003/237.......2002/226

Redlands........................2009/60..........2008/37.........2007/38.....2006/53..........2005/60

.........................................2004/71..........2003/61..........2002/63

Rialto..............................2009/123........2008/133.......2007/37......2006/56.........2005/97

.........................................2004/106........2003/111........2002/103

Riverside........................2009/369........2008/425.......2007/142....2006/328......2005/467

.........................................2004/367........2003/363.......2002/335

San Bernardino.............2009/236........2008/246.......2007/72......2006/174.......2005/236

.........................................2004/188........2003/221.......2002/193

Yucaipa/Calimesa.........2009/50..........2008/53........2007/26......2006/51.........2005/61

.........................................2004/85..........2003/61.........2002/47

10 Good Reasons to List Your Property in December

December 8, 2009

1. People who look for a home during the holidays are usually serious buyers.

2. Buyers have fewer houses to choose from since many sellers wait for the first of the year to put their homes on the market.

3. Homes that are decorated for the holidays create a very welcoming feeling.

4. Buyers often react emotionally to the decorated homes.

5. Many potential buyers have vacation time and can devote their attention to viewing homes.

6. Often folks want to purchase prior to the end of the year for tax reasons.

7. As a seller, you may have a tax advantage by selling in 2009. There are rumbles in Congress about changing the capital gain tax code.

8. January is traditionally the month when companies do job transfers. These buyers are looking in December.

9. You could sell now with a rent back until the holidays are over.

10. Interest rates are very competitive now which means that more potential buyers want to take advantage of these low rates.

"As Is" Still Requires Disclosures

December 7, 2009

With so many properties being offered for sale that are "bank-owned", it is important to know what sorts of disclosures are still a requirement for the seller (bank) to furnish to a Buyer. Typically "bank-owned" properties are listed as being sold "as is". These sellers and their agents, and probably the buyers' agents as well, need to be reminded that "as is" does not eliminate a seller's responsibility to disclose material facts.

California disclosure law does exempt sellers of foreclosed properties from completing a Sellers Transfer Disclosure Statement (TDS). However, there are still other disclosures that are required on the sale of 1-4 residential units.

1. Agency Disclosure

2.Agents duty to visually inspect and disclose.

3. Lead Paint Hazard Disclosure plus the "Protect Your Family from Lead in Your Home" book.

4. Disclosure of condominium or common interest documents.

5. Disclosure of property's location in a flood zone.

6. Megan's Law disclosure.

7. Meth lab clean up

8. Seller's Affidavit of Non Foreign Status

9. Smoke Detectors installed and operating

10. Notice of availability of title insurance

11. Certification that the water heater is braced properly.

Many of these disclosures are covered in the standard California Association of Realtors Agreement to Purchase. Others are not and will require the listing and selling agents to follow through to make certain that the seller provides the disclosure and that the buyer receives it.

Parades, Concerts and the Annual Home Tour

December 4, 2009

The Holidays are indeed here! Saturday offers two great community parades. (Probably more that I do not know about.) The San Bernardino Christmas Parade will begin at 11 a.m. 2200 participants will be welcoming Santa Claus to San Bernardino. Bands, floats and all the fun of a holiday parade will enliven downtown San Bernardino. Then Saturday evening at 6 p.m. the Redlands parade will feature bright lights along with the floats, the bands and the marching groups.

Saturday evening at the Sturges Center in San Bernardino, you can enjoy a "Celtic Yuletide. This live concert will feature Riverdance's Michael Londra. 909-885-5152.

Nutcracker Ballet productions are everywhere. The Inland Dance Theatre begins this evening at the California Theatre of the Performing Arts in San Bernardino. 909-891-1563. Inland Pacific Ballet will be on stage at Bridges Auditorium in Claremont beginning on Saturday evening. 909-607-1139. Lake Arrowhead Classical Ballet Company will begin it's performances this evening at the Rim of the World Performing Arts Center. 909-336-9206 or on the Internet http://www.arrowheadballet.org/

And on Sunday from 9:30 a.m. until 4:30 p.m. the YMCA's annual home tour will feature six beautiful decorated homes. Three early 1900 homes; Two nearly new Mediterranean style residences and a remodeled 1936 California ranch style home. 909-798-9622.

The YMCA will also be hosting a boutiques of crafts and baked goodies at the YMCA building on Citrus Avenue in Redlands. The boutique will be open both Saturday and Sunday.

Recognizing the "Short-Sale" Roadblock

December 3, 2009

Based on the articles that I have been reading in the news papers, the government has realized that the sale of properties that require a lender to discount the amount of the loan payoff has been a process of incredibly long delays. Early on this year as part of the stimulus package, loan servicers were offered a bonus of $1000 for every loan modified or short sale completed. This bonus seemingly was not a sufficient incentive for the loan servicers. It has been recently increased along with guidelines for the servicers to use. What seemed to have been overlooked was the fact that loan servicers make more money on foreclosures than any dollar incentive offered by the government.

If you noted the percentage of "back-up" transactions that I posted yesterday (75%) you begin to believe that their truly is some sort of roadblock to getting the short sale approved or the loan modified.

A question: Is the loan servicer acting in the best interest of the beneficiaries of the loan? As the value of property continued to decline, the beneficiaries lost more money than they might have if the loan had been discounted in a timely manner. Reviewing the data for bank-owned sales, the listing, and therefore the selling price, are seriously below what some of the short sale offers on the property were.

In the interest of the underwater homeowner, the beneficiaries and the persons interested in purchasing a "short sale' property, let's hope that this roadblock can be eliminated.

Looking at Bank-Owned and Short Pays

December 2, 2009

Just because I am a data nut and just because I was curious, I ran the numbers of active and pending listings reported in the IMRMLS to check the percentage of properties that are either bank-owned or that will require lender approval of a short pay-off. Bearing in mind that the numbers that I use are what is entered into the IMRMLS data, the following presents an interest picture of the real estate market in our Inland Empire area.

Of the active properties, 21.7 % are bank-owned.

Of the properties reported as pending sales, 40.6% are bank-owned.

Of the active properties, 47.6% are listed as "short pay, lender approval.

Of the properties reported as pending sales, 38% are listed as "short pay, lender approval.

Of the properties reported in the "back-up" category, 9.5% are listed as bank-owned.

Of the properties reported in the "back-up: category, 74.9% are listed as "short pay" lender approval.

The very large percentage in the "back-up" category that are short pay, lender approval required, is not surprising as this is the segment of the market that has been the most frustrating. It can take months to obtain lender approval of a "short payoff". The IMRMLS requires the property to be reported as either "pending" or "back-up" once an offer is accepted by the seller to be submitted to the lender. Thus a property may be in this somewhat limbo land state for a long period.

The low percentage of active listings that are "bank-owned" challenges the speculation that foreclosures are "flooding the market". I will be watching these numbers in the future.

Listing and Pending Numbers for November 2009

December 1, 2009


Here we are on the first day of December 2009. It has seemed that 2009 has been a pivotal year for our Inland Empire Real Estate market. The number of sales has increased fairly dramatically and the number of active listings has declined; contrary to news reports of the flood of bank-owned properties to come on the market.


Here are the numbers for active listings and sales reported as pending in the IMRMLS. I am also reporting the numbers for transactions reported in the "back-up" category. These are accepted offers that have some contingencies and that are still being shown to prospective purchasers.


Banning/Beaumont..........Active/442.........Pending/245.........Ratio/.554........Back-up/97


Bloomington......................Active/63...........Pending/70...........Ratio/1.111........Back-up/15


Colton.................................Active/128.........Pending/97............Ratio/.758........Back-up/29


Fontana..............................Active/424.........Pending/604.........Ratio/1.425.......Back-up/186


Grand Terrace...................Active/18............Pending/15............Ratio/.833........Back-up/6


Highland............................Active/155..........Pending/92............Ratio/.594........Back-up/34


Loma Linda.......................Active/58............Pending/37............Ratio/.638........Back-up/14


Mentone............................Active/19.............Pending/14............Ratio/.737.........Back-up/2


Moreno Valley..................Active/545..........Pending/674..........Ratio/1.237.......Back-up/210


Redlands...........................Active/222...........Pending/100..........Ratio/.450........Back-up/50


Rialto.................................Active/220...........Pending/252..........Ratio/1.145......Back-up/63


Riverside..........................Active/1055..........Pending/861..........Ratio/.816........Back-up/273


San Bernardino...............Active/670............Pending/521..........Ratio/.778........Back-up/107


Yucaipa/Calimesa...........Active/212............Pending/103..........Ratio/.486........Back-up/48



These numbers are similar to the numbers reported for the month of October. If you check my post of November 2, 2009, you can make the comparison. The consistency of the numbers seems to me to indicate a stabilizing market vis a vis volume. Prices are still another indicator. When we look at the closed transactions next week, it will be interesting to note any changes in the median prices.