Tuesday, June 30, 2009

REO Buyers, Traditional Buyers

June 30, 2009

One of the challenges in today's residential real estate market is the contingency on the right of the buyer to do inspections. In all the standard California Association of Realtors' purchase agreement forms, buyers are purchasing a property in the condition that exists on the date the offer is accepted - subject to the buyer's inspection rights. This right to do inspections is also a part of a bank's special purchase agreement, but the banks are very clear that the property is being sold "as-is" and that the bank will not do repairs.

What I have found remarkable is that buyers of REO property accept that the bank will not be repairing any discrepancies that may be found. It is always possible to ask the bank to correct the most egregious problems. Sometimes the banks will give the buyer a credit, but most of the time they will not - probably in the belief that the property's selling price took the condition into consideration.

Then you have the buyers of what have become known as "standard" or "traditional" sales. These are properties being offered for sale by sellers who are not in foreclosure, not in financial distress, but are selling due to personal reasons such as job transfers, and down-sizing or up-sizing. In these cases, buyers seem to have an expectation that the seller should fix every discrepancy cited by an inspector. Obviously, it is in the seller's best interest to fix items that could be health and safety issues. The difference between what an REO buyer will accept and what a traditional buyer will accept is remarkable. Sellers in this market environment need to expect to do repairs as buyers will exercise the right to cancel the purchase agreement if a requested repair will not be done.

Bottom line. If you are a traditional seller, it might be a useful strategy to have your home inspected prior to offering it for sale. In this way you would know what may become a sticking point in a sales transaction and can often make the repair before it becomes a major deterrent for a buyer.

Monday, June 29, 2009

Homeowner's Insurance - How Much?

June 29, 2009

One of the interesting ramifications of the present real estate market is the issue of home owner's insurance. If there is to be a loan on the property, a lender will not make a loan without the borrower putting an insurance policy in place. The amount of insurance that a lender usually requires is the amount of the lenders loan. The lender becomes an "also insured" on the policy.

While this amount will satisfy the requirement for the lender, it is generally not an amount that will provide the homeowner with adequate coverage should a claim need to be made. So, what is the best way to determine the amount of coverage necessary to protect a homeowner in the case of serious damage to the property?

I recently read an article in the LA Times newspaper concerning folks wishing to reduce the coverage they were carrying because that coverage was greater than the current market value of the property. The writer suggested that this was not a very good idea. While reducing the amount of the coverage could reduce your annual premium, it could easily be penny-wise and pound foolish.

The value that should play a role in determining how much insurance is necessary is the cost to rebuild or to replace any damage. Reconstruction costs include demolition as well as materials for rebuilding. The costs of materials and labor have not declined in the same way that real estate property values have declined. It is important to ask your insurance agent for the going estimate for replacement of the residence.

Hopefully you will never need to use this insurance, but having adequate coverage is critical.

Friday, June 26, 2009

Summertime Has Arrived

June 26,2009

Every summer in the last week of June the Redlands Bowl Summer Music Festival Season begins. This evening, Friday, June 26, 2009, Maestro Frank Fetta will conduct the San Bernardino Symphony. The program will feature two-time Grammy Award winner Rita Coolidge in a variety of musical styles from pop to jazz to blues.

As is traditional, these concerts have no admission charge. However, bowls will be passed for a free will offering.

The program begins at 8:15 p.m. For more information you can go to http://www.redlandsbowl.com/

On Saturday, June 27 from 8:30 p.m. to 10 p.m. the San Bernardino Valley Amateur Astronomers and the San Bernardino County Museum' education division will host a "Moon Party" in the Museum's parking lot. Several telescopes of various sizes and types will be set up and visitors will be assisted in viewing the skies. This event is free and open to all ages. It is a terrific family outing.

The museum is located at 1224 Orange Tree Lane, Redlands. For more information visit the museum's web site at http://www.sbcountymuseum.org/

I know that there are many opportunities for entertainment in the Inland Empire. If you wish to post your event, click on "comment" and enter your information. As may be practicable, I will publish them.

Thursday, June 25, 2009

Sometimes Headlines are Deceptive

June 25, 2009

There were two headlines this morning in the newspapers that I read that gave a negative slant to the current state of real estate in the U.S. The issue for me is that real estate activity has always had a local component to it. In the 1990s, Southern California was hit harder because of the down sizing of the aerospace industry and the closure of military bases. Check out my postings of June 2, 2009 and June 2, 2008 to see whether we have a "glut of unsold homes".

In many of the 14 communities that I have been tracking, the active inventory of resale properties is approximately half of what it was just one year ago, In fact, prospective buyers and agents are complaining about the limited choices of the homes for sale. This limited inventory has led to multiple offers on homes listed around the median price mark. Multiple offers have the tendency to drive prices up.

Since I am not involved in the new-home market, I have no real data to support my belief that the headline "New-home sales drop 33% since a year earlier" is somewhat inaccurate. Reading the article that followed the headline, I found the sentence that supported my belief about new-home sales in our region: "New-home sales in the West, however, were up 1.3% over April's adjusted annual rate." Remembering that the California legislature allocated a $10,000 credit for purchasers of new homes, it should not be a surprise that those sales have improved. I might also comment that since builders had so much standing inventory of unsold new construction, it is not surprising that new construction has experienced a decline.

I am looking forward to examining the data for the first half on 2009. I am hopeful that it shows that the market has begun stabilizing.

Wednesday, June 24, 2009

Remodeling - Is It a Value Enhancer?

June 24, 2009

The question of remodeling surfaced this week from both a friend and in a commentary in a real estate newsletter to which I subscribe. The friend asked about approximate cost of adding a room and bath and the Inman News writer, Bernice Ross, responded to a question regarding which upgrades would produce the best return on the investment.

I remembered that in the past I had read articles from a Contractor's publication that gave prices for various additions or upgrades and also articles in real estate journals that compared the return on investment in updating a property.

When deciding about spending money to redo a kitchen or bath or adding more square footage to a house, it is important to ask how the improvements will compare with other homes in the immediate area. It is also important to ask whether the improvement you plan to make is for your benefit or whether it will be seen as a benefit to other potential owners.

Having answered the above questions, here are a few numbers for the national average costs and returns on home improvement projects.

Bathroom Addition.............cost/$36.078............resale value/$24,187.........cost recouped/63.5%

Bathroom Remodel............cost/$15,899.............resale value/$11,857.........cost recouped/73.7%

Major Kitchen Remodel....cost/$56,611.............resale value/$43,030........cost recouped/76%

Roofing Replacement........cost/$18,825.............resale value/$12,336........cost recouped/65.5%

Window Replacement.......cost/$10,537.............resale value/$8,132...........cost recouped/77.2%

These figures come from http://www.remodeling.hw.net/

Just as an aside: A few years ago when I looked at a similar chart, the percentage returned was greater than it is now. Perhaps the returns go up as home prices go up and folks are more willing to pay for the upgraded improvements.

Tuesday, June 23, 2009

Those Confusing Supplemental Tax Bills

June 23, 2009


In the State of California, supplemental property tax bills have been levied since 1983. The supplemental Real Property Tax Law was signed by the Governor in July 1983 and was part of the effort to aid California schools. What it did was changed the reassessment value date from the standard yearly date to the date when a property was sold or was significantly remodeled or improvements such as pools added.

The supplemental tax bill becomes effective on the first day of the month following the change of ownership or new construction. If the effective date is July 1, then there will be no supplemental assessment on the current tax roll and the entire supplemental assessment will be made to the tax roll being prepared for the next tax year. If the effective date is not July 1, the assessor has a table of factors used to compute the supplemental assessment.

The billing of these taxes is somewhat erratic. Your bill may come within three weeks or over six months. They have even been known to be a year late. These taxes can be paid in two installments just as your regular property taxes. However, the payment dates are different. When you receive a notice of property taxes due, it is important to read it carefully. New home buyers have often believed that these taxes were paid trough escrow when they purchased the property. Not so since the bills are not prepared by the county assessor's office until the deeds have been recorded.

People have often been shocked to receive a notice that they owe delinquent taxes. The unfortunate thing about not knowing that the supplemental bill is different than the annual bill is that as these taxes remain unpaid, they accumulate penalties and interest and can become sizable liens.

You can go to the county assessor's web site and check out the property tax history if you are unsure about the status of your property taxes.

Monday, June 22, 2009

This Could Help Cut Your Water Usage and your Utility Bills

June 22, 2009

The latest California Association of Realtors on-line newsletter included a "green tip" that I thought was worth passing on. I did go into the Internet to check it out and if you have an

interest in a "free" water saver kit, you can go to http://www.socalgas.com/ I then typed in "water saver kit" in the upper right hand search field. That sent me back to "water Saver kit" on google which was also hosted by the Southern California Gas Company. Clicking on it pulls up a registration screen and alerts you that it may take 6- 8 weeks to receive your 3 faucet aerators and low flow shower head. You must be a Southern California Gas Company customer to be eligible for this kit.

The home site is a good source of information concerning rebates available is you replace some of your appliances.

Saving energy is not just good for the environment, it is also good for the family budget. Since many current home buyers are purchasing bank owned or short-sale properties that are without appliances, it is good to know about these rebate opportunities.

Friday, June 19, 2009

Fun in the Inland Empire

June 19, 2009

It is hard to believe that the Huck Finn Jubilee is celebrating its 33rd season. This three day event kicks off this morning in Victorville at the Mojave Narrows Regional Park. This family event began at 7 a.m. this morning and continues today until 11 p.m. On Saturday it will open again at 7 a.m. and continue until 11 p.m. Sunday events will continue from 7 a.m. to 8 p.m.

There will be a Huck Finn look--a-like contest and an Injun Joe treasure hunt. "Mark Twain" aka Mike Randal will be on stage spinning takes of Huck Finn and Tom Sawyer.

There will be top name performers of blue grass music including multi-Grammy winner Ricky Scaggs and his Kentucky Thunder band.

There will be arts, crafts, food, fishing, camping and early in the mornings a hot air balloon launch.

Victorville and Mojave Narrows Regional Park is the fun place to be this weekend.

Daily admission today is $15 for adults (Saturday and Sunday $20, $5 for youths 4-11 and children under 6 are free. Parking is also free.

more information can be obtained by calling 909-341-808 or in the Internet http://www.huckfinn.com/

Thursday, June 18, 2009

How does a "Traditional" Seller Compete?

June 18, 2009

In the present real estate sales environment there are several categories of sellers; the banks, investors, the short seller, the developer and the traditional.

Banks, as owners of foreclosed real estate, are generally motivated to sell quickly and are often pricing their properties at bargain prices. Even though many of these properties have condition issues, buyers are willing to purchase them because of this bargain perception. It is not unusual for a property to have multiple offers and to sell over the bank's listed price even though the purchaser may have significant "fix-up+ costs.

There are not a great many investors in the real estate market at the present time as making a profit on the sale of real estate is a difficult goal to attain. Some investors have learned the hard way that buying a property at what looked like a real bargain and fixing it up to sell again is just not a very successful way to get a return on your investment. In this market, investors are more likely to buy property and rent it.

Then we have the short sale sellers. These are the sellers who owe more than the house is currently worth and are hoping to obtain their lender's approval to reduce the debt owed so that the property can be sold and not have to go to foreclosure. These properties also need to be priced attractively in order to receive offers from potential purchasers. Buyers have learned that the list price has often not yet been approved by the lender and that the lenders approval can take weeks, and months to obtain. For this reason, prospective buyers are not very anxious to look at the short sale listings.

Then we have the developers offering their unsold inventory at greatly reduced prices and with a great many buyer incentives. Also, the state of California has offered the purchasers of new, never occupied homes a $10,000 bonus.

Then we have the "traditional" sellers. These are folks who for a variety of personal reasons want to sell their properties. A "traditional" seller is one who a)is not under a threat of foreclosure and b) may be moving out of the area or c) has decided to purchase another home.

The issue in this market is that the traditional seller must compete to sell in a "price driven" market. No matter how beautiful and well-maintained a home may be, buyers are not willing to pay more for these properties than they would pay for the last foreclosure in the neighborhood.

How can these sellers compete?

The traditional seller needs to be certain that the property is in almost model home condition. The traditional seller can offer to pay a buyers closing costs. It is almost routine for a seller to offer to purchase a home warranty plan that covers systems for the first year of ownership.

A traditional seller, in order to compete, must take seriously a market analysis done by a real estate professional. the zestimates of zillow or realestateabc are interesting, but the most accurate estimate of current market value will be a local real estates comparative market analysis. These CMAs are a bit tricky as there have been so few sales in the upper end of the market and in the lower end the sales are generally properties offered by the other categories of sellers.

"Traditional " sellers can compete but they must be realistic about their competition and about what is motivating buyers .

Wednesday, June 17, 2009

The Current Glitch in Real Estate Transactions - Appraisals

June 17, 2009

I feel certain that it has always been difficult for appraisers to determine the market value of a property in a volatile market. Whether it is the real estate market of 2004-2007 or the current market, the appraiser who is hired by the lender has an obligation to determine a fair market value for a property. The appraiser's determination of value may be different from the standard definition of "fair market value" which is the price a seller will accept from a willing buyer who is ready, willing and able to purchase. Traditionally, the appraiser will use the comparable value approach and compare the subject property to other similar properties that have sold recently.

Because of the government's belief (probably correctly) that many properties were appraised incorrectly and sometimes fraudulently, the government passed the Home Valuation Code of Conduct. This legislation establishes a new system for assigning appraisers. There is a central office which assigns and dispatches appraisers, sort of on a lotto system. No longer can the lender use the appraisers who have worked for them in the past. The appraiser is now selected by this central clearing house and assigned to appraise the property. The appraiser may or may not be familiar with the location to which he/she is assigned. The belief that this new system will insure that appraisers are not influenced by lenders or by real estate agents.

The other challenge for appraisers is that there may be very few comparable sales and the appraisal will require the appraiser to make adjustments based on time, and amenities. These adjustments can be rather subjective. Appraisals have never been a science, they have been and still are, some one's opinion of value based on data and knowledge of the market place.

There is another way in which appraisals are shaping the prices of homes. Most lenders have instituted what is called a "desk appraisal". This is where an employee reviews the field appraisers' appraisal report and will either accept it or in more cases than seems reasonable, the "desk appraisal" will reduce the appraised value.

I realize that lenders are being super cautious, but this new system has created extra charges and I am not sure that the final appraisal is truly the market value of a particular property. However, the appraiser's value becomes the determinant for the loan a lender will makae on the property.

Tuesday, June 16, 2009

"It Ain't Over Till It's Over"

June 16,2009

"It ain't over till it's over" is a quote attributed to Yankee's Yogi Berra. I googled it just to be sure my memory of who said it was correct. -And why did this quotation come to mind?

We have heard so many economic forecasts as to when the recession will end, when the housing market will rebound, when interest rates will rise or fall, when the stock market will rebound, etc., etc. etc. Just today the highly respected Anderson Economic Forecast from UCLA's Anderson School of Economics has been published. The forecast is that things will be turning around in the third quarter of 2009, but the rebound in the economy will take several years.

I repeat: "It ain't over till it's over".

I read economic forecasts as much or more than many folks, but what the future will be has less influence on my decisions that what the present is. The present time in the Inland Empire real estate market place is filled with both pluses and minuses. The pluses are the extraordinarily affordable prices of some great homes. The relatively low interest rates for 30 year, fixed rate mortgages and the various government stimuli such as the $8,000 tax credit for first time home buyers and the $10,000 credit for California buyers of new construction. The minuses are the number of foreclosures and the sellers who have lost all their equity. The trauma for many homeowners is real and painful.

In the past, both with the booming markets and with the crashing markets, the time each ended was mostly determined after the fact. "It ain't over till it's over", so stay in the game and make your best plays. That's how one wins in the long run.

Monday, June 15, 2009

Here are Some Interesting Numbers to Watch

June 15, 2009

I have posted the numbers for real estate activity in the month of May. Volume has been increasing, and median prices have been decreasing. However, it did seem as though median prices were slightly better in May than in the previous month - a hopeful sign.

Just because I am curious about what numbers might tell me, I decided to check the numbers for sales over the $400,000 selling price since that is the segment of our real estate market that has been very slow. I pulled the data from the IMRMLS for the years 2009, 2007, 2006 and 2002. If I had been checking these numbers in 2007, I would have been alerted that the market was undergoing a change! One month is just a snapshot, but I found the results fascinating.

Number of properties reported sold at a price above $400,000.

Banning/Beaumont........2009/0.........2007/8.........2006/23..........2002/1

Bloomington....................2009/0.........2007/3.........2006/10..........2002/0

Colton...............................2009/1.........2007/2.........2006/9............2002/0

Fontana............................2009/1.........2007/53.......2006/135.......2002/0

Grand Terrace................2009/0.........2007/3.........2006/5...........2002/1

Highland..........................2009/4..........2007/12.......2006/27.........2002/0

Loma Linda.....................2009/1..........2007/6.........2006/9...........2002/0

Mentone..........................2009/0..........2007/2.........2006/0...........2002/0

Moreno Valley............... 2009/0..........2007/19.......2006/98.........2002/0

Redlands.........................2009/6...........2007/27.......2006/28.........2002/7

Rialto...............................2009/0...........2007/10......2006/38.........2002/0

Riverside........................2009/23.........2007/117.....2006/243.......2002/15

San Bernardino.............2009/0............2007/17.......2006/15.........2002/0

Yucaipa/Calimesa.........2009/6............2007/23......2006/25.........2002/4

How would you interpret these numbers?

Friday, June 12, 2009

Memorials, Movies, Music and More

June 12, 2009

The Fontana Historical Society will be dedicating a veterans memorial rose garden and flagpole on Sunday, June 14 during a Flag Day ceremony at a park near City Hall. The park is located at 16830 Spring Street in Fontana. The 2 p.m. ceremony, society members will dedicate a section of the park as a veterans memorial and will be selling plaques to be inscribed with names of Fontana veterans. The city's planned 350 rose bush garden has already planted 51 roses bushes that make up the veterans garden. The garden is a great tribute to veterans and it is fitting for it to be dedicated on Flag Day.

This evening, Friday, June 12, the Recreation Department will kick off the 2009 summer season of "Movies in the Park", a hugely successful and free event. The movies are shown on Friday evenings at Brookside Park in Redlands. The showings begin at dusk and are targeted to a family audience.

On Saturday and Sunday, the final performances of "Peter Pan, the Musical" will be held at the Lifehouse Theater at 1135 N. Church Street in Redlands. For information regarding availability of seating call 909-335-3037

Saturday evening at 8 p.m. at the California Theatre of Performing Arts, 542 W. Fourth Street in San Bernardino, You can experience a bit of nostalgia with The Temptations Review with Dennis Edwards and the Spinners. Tickets are $45-$99 with information available at http://www.ticketmaster.com/

And for the "More" you can go to the Highland Springs Resort for the fifth annual Lavender Festival. You do not have to go to Italy or France to see a brilliant array of lavender plants in bloom. The event runs from 10 a.m. to 6 p.m. Saturday and Sunday (next weekend as well).
The resort is located at 10600 Highland Springs Avenue off the 10 freeway in Banning. For more information call 951-845-1151.

This is just a sampling of what is happening in the Inland Empire of Southern California. Never, never say that there is nothing to do!

Thursday, June 11, 2009

Forget the June Gloom - It's Jacaranda Time










June 11, 2009


The past several days, the Inland Empire has been experiencing June Gloom in a big way. Gray with morning drizzle is the weather report. However, we are so fortunate that late May and early June is the season for the Jacaranda tree. Growing up in the Midwest, I had never seen such a showy tree. Its lavender blossoms are truly spectacular and brighten up the landscape. According to Wikipedia, the jacaranda is a native of South and Central America, Mexico, the Caribbean, and India. Just as this tree has become popular in Southern California, it has also been transplanted to South Africa where Pretoria is popularly known as the Jacaranda City.

I posted a few pictures to celebrate the coming of the summer season and this wonderfully colorful tree. We may not be the Jacaranda Empire, but we certainly have our share of these unusual trees. Forget the doom and gloom and celebrate our colorful landscape.



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Wednesday, June 10, 2009

May Median Prices as Reported in the MRMLS

June 10, 2009

I was interested to read a headline in the LA Times newspaper this morning that prices in some areas of California are back to 1989 levels. Since I had just prepared the data for May 2009, I found that in the 14 communities that I have been tracking are not quite back to the 2002 levels. Bloomington, Colton, Moreno Valley, Rialto, Riverside and San Bernardino do have median prices below the 2002 median price for May. This data is only for one month and my research is not scientific. I take the selling price of the property at the halfway mark between the high and low reported selling prices.

Here are the numbers for May 2009, for the peak year of either 2006 or 2007 and for 2002. Add 3 zeros to the number; i.e. $200=$200,000.

Banning.Beaumont.....2009/$175......2006/$335......2002/$120

Bloomington................2009/$95........2007/$387.......2002/$139

Colton...........................2009/$100.....2007/$340.......2002/$123

Fontana........................2009/$175......2007/$420.......2002/$165

Grand Terrace............2009/$200.....2006/$392.......2002/$186

Highland......................2009/$160......2007/$380.......2002/$160

Loma Linda.................2009/$224......2007/$415.......2002/$152/$230

Mentone......................2009/$249......2006/$265.......2002/$75

Moreno Valley............2009/$130......2006/$382.......2002/$145

Redlands.....................2009/$245.......2007/$470.......2002/$187

Rialto...........................2009/$130.......2006/$380......2002/$146

Riverside....................2009/$170........2006/$415.......2002/$175

San Bernardino..........2009/$72..........2006/$310.......2002/$107

Yucaipa/Calimesa......2009/$211.......2007/$400.......2002/$155

There are the raw numbers. We will continue to watch for signs of recovery.

Tuesday, June 09, 2009

Closed Sale Transactions - May 2009

June 9, 2009

Here is the data for the number of closed sales reported through the IMRMLS for the month of May 2009.



Banning/Beaumont.....2009/135.....2008/95......2007/56......2006/94......2005/101.....2004/92

.......................................2003/66.......2002/68

Bloomington.................2009/36.......2008/12......2007/8.........2006/31......2005/19.......2004/16

.......................................2003/22.......2002/20

Colton............................2009/57.......2008/19......2007/25.......2006/44......2005/43......2004/31

.......................................2003/41.......2002/47

Fontana........................2009/371.....2008/195....2007/96........2006/240...2005/254....2004/203

.......................................2003/225....2002/275

Grand Terrace.............2009/9........2008/10......2007/7..........2006/11.......2005/9........2004/.5

.......................................2003/9........2002/9

Highland.......................2009/54......2008/46......2007/39.......2006/97.......2005/87......2004/56

.......................................2003/79......2002/65

Loma Linda..................2009/13......2008/21......2007/10.......2006/21.......2005/20......2004/22

.......................................2003/9........2002/19

Mentone.......................2009/5........2008/6........2007/10.......2006/8.........2005/11.......2004/8

.......................................2003/8........2002/9

Moreno Valley.............2009/400...2008/272....2007/93.......2006/300....2005/264....2004/237

.......................................2003/259...2002/286

Redlands.......................2009/52.....2008/41......2007/47........2006/75.......2005/79......2004/83

.......................................2003/70......2002/95

Rialto.............................2009/140....2008/82.....2007/45.......2006/118......2005/116...2004/100

.......................................2003/116.....2002/128

Riverside......................2009/492....2008/336...2007/231.....2006/431......2005/464...2004/364

.......................................2003/403....2002/450

San Bernardino............2009/344....2008/178...2007/106.....2006/265.....2005/231....2004/212

.......................................2003/257.....2002/247

Yucaipa/Calimesa.......2009/63.......2008/55.....2007/44.......2006/61.......2005/76......2004/70

.......................................2003/64.......2002/81

The good news is that the number of transactions is increasing. In some communities the increase is substantial, probably brought on by the drastically reduced prices of the homes in those areas. If you trace sales back over the past eight years, you can see that the volume does vary from year to year, even when we are experiencing a booming real estate market. However, when the volume dipped as much as it did from 2006-2007, in hindsight, you can see that the boom was over. Now we are watching a market that is readjusting to new pricing levels.

Monday, June 08, 2009

Hints for the Vegetable Gardener

June 8, 2009

This year I have heard of more folks planting vegetables in their gardens. A great idea, but speaking from experience, somewhat frustrating. Every year I try tomatoes because there is nothing like the flavor of a home grown tomato. Some of my other family and friends go all out with zucchini, summer squashes, peppers, and cucumbers. Zucchinis seem to be the easiest to grow as we frequently have baskets of zucchini brought to the office by are gardener agents - some zucchini as large as baseball bats.

Here are some hints for more vegetable gardening success that I gleaned from an article in the San Bernardino Sun newspaper on Saturday, June 6.

1."Eggplants, peppers, squashes and tomatoes actually provide greater yields if they aren't fed until they blossom. And you'll get more out of your eggplant and tomatoes if they have easy access to magnesium, the main ingredient in Epsom salts. Several times during the blooming period dissolve one tablespoon of Epsom salts in a quart of luke-warm water, and spray or sprinkle the solution on the leaves and blossoms. Pour the remainder around the plant along the drip line."

2 "Summer squashes such as crookneck, pattypan, Italian and others will keep producing if you continually harvest maturing squashes and apply plant food monthly, but be stingy with plant food on tomatoes. They need a good balance, but too much nitrogen results in huge plants and no fruit...."

May your garden grow beautifully and may your vegetables be delicious.

Friday, June 05, 2009

If You Are Looking for an Antique Roadshow Treasure

June 5, 2009

This Saturday the Women's Club of San Bernardino will be holding their annual "summer sale". They have collected an array of books, clothing, cosmetics, toys, furniture, estate items, linens, plants, shoes, etc. These group sales are great opportunities to find treasures. You just have to watch the Antiques Roadshow to know that real "finds" still do occur even though sellers are becoming more knowledgeable.

The proceeds will go to support the clubs many community service products. You can be assured that the money you spend will be used for projects that enhance the San Bernardino community.

The event begins at 8:30 a.m. on Saturday at the Clubhouse of the Women's Club of San Bernardino located at 504 W. 31st street. For more information you can call (909) 796-3178.

Thursday, June 04, 2009

Planting 7 Billion Trees

June 4, 2009

We have arbor day when planting a tree has been a rite since 1872 and proclaimed a National holiday since 1970, but did you know that the United Nations has launched a program to plant 7 billion trees by the end of 2009?

As I was researching World Environment Day (WED), I came across this tree planting program. Under the Plant for the Planet: Billion Tree Campaign, people, communities, business and industry, service organizations and governments are encouraged to enter tree planting pledges online with the objective of planting at least one billion trees worldwide each year. http://www.unep.org/

World Environment Day was established by the UN General Assembly in 1972 to mark the opening of the Stockholm Conference on the Human Environment. Since that date much has been published concerning our need to care for our planet. Commemorated yearly on June 5 (tomorrow) the United Nations goals are: to empower people to become the agents of sustainable and equitable development; to give a human face to environmental issues; to promote an understanding that communities are pivotal to changing attitudes towards environmental issues; and to advocate partnership which will ensure all nations and people enjoy a safer and more prosperous future.

The web site has suggestions for how each individual can help in protecting our planet. You can find 80 ways to celebrate on the www.unep.org/wed/2009/english/content/tips.asp

I know I am going to give my pledge to plant a tree. In 1995 I was part of a group that planted one in Switzerland. Now, somewhere else on our planet one more tree will be planted.

Wednesday, June 03, 2009

Buyers Are Doing Something They HAven't Done in Years

June 3, 2009

It is a little bit "Deja Vu" in the world of real estate financing. Buyers are submitting offers asking the Seller to carry back a note secured by a first or second deed of trust. They are also writing offers with "wraparound financing".

Probably the request for financing from the seller is related to the change in the institutional lending market where second deeds of trust or purchase equity loans have become extremely difficult to obtain. Of course, requesting a seller to carry back a note assumes that the seller has enough equity in the property to be able to do so.

a "wraparound" mortgage" does not necessarily have this requirement. However, it still probably does. Here is how a wraparound works. The property sells for $450,000. The seller owes $350,000. The buyer puts some amount as a down payment - say $10,000. The seller then takes back a mortgage in the amount of $440,000. Your existing mortgage is at an interest rate of 4.5%. The new wrap around mortgage is at 6%. The buyer pays you 6% on the $440,000. The title transfers to the buyer and you no longer own the property but are still liable for the underlying deed of trust of $350,000. You are obligated to continue making the payments on this first mortgage as it remains in your name. There are a number of risks in this type of financing for both the buyer and the seller.

If you as a seller are able and willing to help the buyer with financing, carrying back a note secured by a second deed of trust takes you out of the obligation to the first trust deed holder.

In any instance of seller financing, the seller must be aware that should the buyer default on the sellers note or on the first trust deed, the seller's recourse is to foreclose and take back the property.

One question I might ask if I were the seller when a buyer asks me to help with the financing is "Why?" With interest rates at historic lows, why would a buyer not want to take advantage of the current rates? Perhaps in the case of a request for secondary financing, it is to be able to obtain an 80% loan to value first and have a smaller loan to pay off more quickly. It is important that both buyers and sellers have agents who are knowledgeable in the pluses and minuses of seller financing.

Tuesday, June 02, 2009

Where the Sales Are

June 2, 2009
Just for the fun of it, I thought I would see how many of the active listings and the pending sales are over $400,000. We have been saying for some time that the real estate market in the Inland Empire is $350,000 and under. What I found in running the data is that it is definitely not in the $400,000 and above range - at least on a percentage of pending sales. Here are the percentages of pending sales over $400,000.
Banning/Beaumont............3 tenths of a percent or 2
Bloomington........................None
Colton...................................1.2% or 2
Fontana................................1.5% or 12
Grand Terrace....................None
Highland...............................3.6% or 7
Loma Linda.........................9% or 3
Mentone..............................None
Moreno Valley....................1 tenth of a percent or 1
Redlands..............................4.6% or 13
Rialto....................................2 tenths of a percent or 1
Riverside..............................7.8% or 81
San Bernardino...................None
Yucaipa/Calimesa...............2.3% or 6
It seems that in the communities with the highest ratios of pendings to listings, there are the fewest listings over $400,000. For instance: Moreno Valley that has just 9 listings over $400,000 has over a 100% ratio of pending sales to listed properties. On the other hand, Redlands, which has a 36.4% ratio of pendings to listings has also 38.9% of the active listings priced over $400,000.
We will be watching for this segment of the real estate market to show signs of life!

Monday, June 01, 2009

Listing and Pending Numbers

June 1, 2009


Well, it is Monday and the first of June. For those of you who are number people and who have been following the numerical trends of the Inland Empire real estate market, the numbers I am about to post are pretty awesome.


Riverside......................Listings/1333..........Pendings/1032..........Ratiio/77.4%


Moreno Valley............,Listings/849............Pendings/857............Ratio/100.01%


Banning/Beaumont....Listings/607............Pendings/249............Ratio/41%


Fontana.......................Listings/800............Pendings/737.............Ratio/92.1%


Bloomington...............Listings/124.............Pendings/94...............Ratio/75.8%


Grand Terrace...........Listings/23...............Pendings/28...............Ratio/121.7%


Loma Linda................Listings/71................Pendings/33...............Ratio/46.5%


Redlands.....................Listings/283.............Pendings/103.............Ratio/36.4%


Yucaipa/Calimesa.....Listings/259.............Pendings/87................Ratio/33.6%


Rialto..........................Lisitngs/393..............Pendings/363.............Ratio/92.4%


Colton.........................Listings/173..............Pendings/139..............Ratio/80.3%


San Bernardino.........Listings/1094...........Pendings/631..............Ratio/57.7%


Highland....................Listings/194..............Pendings/123..............Ratio/63.4%


Mentone....................Listings/34................Pendings/20................Ratio/58.8%


It is interesting to note that the number of active listings has declined substantially and that the number of properties in escrow(pendings) in 4 communities is actually greater than the number of active listings. Since I did not keep statistical data during the past up-cycle, I do not know how to interpret this phenomenon . One thing for sure, buyers are excited about the current level of prices and are entering the market. When I post the median prices, we shall see whether this activity is helping to raise the median.
If you want to check how this month compares to prior months, you can check the posts of May 5, April 1, March 2, February 2 and January 1, 2009.