Giving First Time Home Buyers a Chance

November 30, 2009

According to an article in the Wall Street Journal on November 25, Fannie Mae has announced a program aims at helping ordinary home buyers compete with investors on foreclosed homes.

Buyers have been very frustrated in their attempts to purchase bank-owned properties. It is quite common for their to be multiple offers and the ordinary buyer who will be purchasing with a loan has a difficult time competing with the investors who will be paying all cash.

Called "First Look", Fannie plans to consider offers only from potential owner-occupants and certain public-housing entities during the first 15 days in which a foreclosed property is on the market.

It will be interesting to see if this program actually results in properties being sold to these so-called ordinary buyers who are just wanting a home in which to live. Fannie says that nationwide it had 72,275 single family homes on its books. Investors have had a clear edge since they can close quickly and no appraisal is required. Ordinary home buyers who purchase using a loan need the appraisal to come in at the selling price. When there is a bidding situation, often the bank is wary about the potential of an appraisal coming in under the selling price, thus an investor-buyer is often more attractive to a seller. Can the "First Look" program overcome this issue?

Fannie Mae has also said that offers might be able to be renegotiated after the appraisal and that in stead of requiring a 30 day closing, buyers would now be given 45 days.

Hopefully the buyers wanting to purchase a home now because of the favorable interest rates, the attractive prices and the possibility of a tax credit will only have to compete with each other during the first 15 days of a bank-owned listing.

The Holiday Season Is Upon Us

November 27, 2009

Finish up this Thanksgiving weekend at the sixth annual Apple Butter Festival at Riley's at Los Rios Rancho on Oak Glen Road. Turning aging apples into apple butter has historically been the way to preserve apples for the winter. Admission to the ranch is free but there are fees for some activities. Saturday evening there will be an old fashioned hoedown with music by Riley's Mountaineer Band.

Winterfest is a family event that held at Arlington Park in Riverside on Saturday. Families who bring a canned good will receive a free ticket for a raffle drawing. The usual fun attractions will include pony rides, a petting zoo, a train and jumpers. There will also be a coloring corner where participants will receive a bear prize when they color a sheet. The hours are 3-8 p.m. Saturday. The park is located at 3860 Van Buren Blvd. in Riverside.

And, of course, today begins the 17th annual Festival of Lights on Main Street in Riverside. At 6:15 p. m. this evening, the lights will be turned on. Downtown Riverside will be illuminated with more than three and a half million lights and fireworks. There will be an outdoor skating on a rink located on Main Street between University and Mission Avenues. Hours this weekend are Friday, 4-11 p.m.; Saturday, noon until 11 p.m. and Sunday, noon until 10 p.m. One hour of skating is $10 and skate rental is $3. Downtown Riverside and the Mission Inn become a holiday wonderland.

And for car buffs, there are car shows everywhere. Start your Saturday morning with Taco Joe's Highland Breakfast Cruise and Toy Drive, 9 a.m. until noon. Taco Joe's Mexican Restaurant is located at 26659 Highland Avenue in Highland. For details call 909-874-0846 or 909-841-0717.

The Weather Outside is Lovely

November 26, 2009


It is a beautiful day for gathering family and friends to pause and count our blessings. While 2009 has been a challenging year for many of us, these challenges have offered opportunities for reassessment of what is important. The anonymous Thanksgiving observation that I posted yesterday will be the grace I shall use as family and friends sit down to share the Thanksgiving turkey. I hope that we can all find the positives in our lives and focus on them.


The weather outside is lovely; our mountains are stunning; and the economy is beginning to show green sprouts.


Let's give thanks.

"Count Your Blessings..."

November 25, 2009

I found this Thanksgiving Observance on the Internet attributed to an unknown author. It seemed appropriate for the year 2009. I am happy to share it with you.

"Count your blessings instead of your crosses;

Count your gains instead of your losses.

Count your joys instead of your woes; Count your friends instead of your foes.

Count your smiles instead of your tears;

Count your courage instead of your fears.

Count your full years instead of your lean;

Count your kind deeds instead of your mean.

Count your health instead of your wealth;

Count on God instead of yourself."

Rent Versus Buy ?

November 24, 2009

The large headline and the colored map of the United States filled approximately one quarter of the front page of the Wall Street Journal this morning. Perhaps the amount of space allocated to this news story was commensurate with the headline "1 in 4 Borrowers Under Water". Since the mid to late 1980s when the last major downturn in property values occurred, technology and data analysis have created computer programs that come up with this type of statistical data. I do not remember every hearing numbers of folks who were "under water" in 1989. I did personally know that folks were because my son had purchased a home with an FHA loan in 1983 and he owed more than the home was then worth. At that time I counseled him to just hang tight, make his payments and as long as he could afford the payments it would work out. Fortunately it did and even though the home is off its peak value, it is still worth double what he paid in 1983.

What does all this have to do with "rent versus buy"? Those homeowners who now owe more than their homes are worth are, in my humble opinion, "renters" - at least for the time being.

They are "renting" from their lenders and depending on the type of loan that they have, they may or may not be contributing to the reduction in the amount of the loan. Again, as long as they can afford the payments, they have a place to live that presumably was desirable when they made the purchase.

Lenders are struggling with how to make modifications and one lender is quoted in the Wall Street Journal article as saying that they will not be able to do refinances or loan modifications until the appraisals are irrelevant.

If folks can find a place to rent at a much lower monthly payment, it is difficult to convince them to not walk away from their mortgage debt. If banks find a way to lower mortgage payments, perhaps more homeowners would choose to stay in their homes and make those payments and the tidal wave of foreclosure would subside.

Here is an interesting twist. I read of lenders foreclosing on a home and then renting it back to the resident homeowner. Why? Because the bank is betting that selling the property in the future will garner a larger return than taking a loss on a sale today. Homeowners might also consider that keeping their payments current and waiting will also allow them to regain much of their lost equity - not today, probably not for several years, but if the future resembles the past, the return of value will occur.

Thankfulness - a Daily Ritual

November 23, 2009

The official U.S. holiday of "Thanksgiving" serves as a reminder to all of us that we need to be thankful for all the blessings we receive. Hopefully we are continuously expressing our gratitude for family, friends, health and the nature that surrounds us. With all the hype about "turkey day" and "black Friday", the real meaning for having a "Thanksgiving Day" seems sometimes to be forgotten.

The early settlers who got together were celebrating their survival for a year in a strange environment amongst strangers who looked different and spoke a different language. For the first thanksgiving feast, all were included and all shared what they had.

The sharing is an important element in Century 21 Lois Lauer Realty's preparations for the holidays. Food for the Family Service Association has long been a tradition for our agents. We sponsor the collection of items for the troops for "Operation Gratitude". It is great that we have an official reminder of giving thanks, but perhaps each day we could find someone to thank.

The new motto for many organizations is "Give What You Can". We are thankful that we have something to give.

A Weekend With the Visual Arts

November 20, 2009

Every November, the San Bernardino County Museum Association sponsors the Wild Life Art Festival. It began as an event that featured the winners of the Federal Duck Stamp art competition and has grown to include many nationally recognized wildlife artist who set up booths to show and sell their art.

The Federal Duck Stamp art is totally amazing in the attention to detail that these artists incorporate in their works. There will also be winners of the Junior Duck Stamp art competition.

In past years, this event has required paid admission, but this year the SBC Museum Association has made the event open to public with no admission charge. They are trying the "Give What You Can" approach which they hope will allow many more persons to come and enjoy the event. The festival will be held on the San Bernardino Museum grounds at 2024 Orange Tree Lane. The hours are 9a.m. to 5 p.m. on Saturday and 9 a.m. to 4 p.m. on Sunday. The museum's education division with the help of its Youth Club will present a variety of hands-on art experiences for children. With help from the Ramona-Country Carvers, families can paint a duck or carve a bear out of soap.(You might bring your own bar of Ivory Soap). For more information you can call 909.307.2669 or on the Internet http://www.sbcountymuseum.org/

On Sunday, in downtown Redlands on State Street, the Redlands Art Association is presenting Art on State Street. The Association's gallery will also be open and there will be a reception at 2 p.m. for the opening of the Plein Air Artists show. The gallery is located at 215 E. State Street. For more information you can call 909.792.8435 or on the Internet http://www.redlands-art.org/

On Saturday evening at the Riverside Art Museum there will be an opening reception for the Edenistic Divergence Show. According to the ARTFACTS publication of RAM, "This exhibition is the culmination of the exploration and interpretation of the biblical and mythical "garden of Eden". The reception will be from 7 - 9 p.m.

The Riverside Art Museum is located at 3425 Mission Inn Avenue in Riverside. For more information you can call 951.684.7111 or go to the web site http://www.riversideartmuseum.org/

Is the Inland Empire a Scientific Research Hub?

November 19, 2009

Happily, I am on the weekly newsletter e-mail list of Chancellor Timothy P. White of the University of California, Riverside. His letter is informative and has made me conscious of the tremendous strides that have been taken by the UCR institution since I graduated in 1970.

A recent science symposium held in honor of Chancellor Emeritus Ray Orbach highlighted five distinguished faculty members speaking about prominent research centers that are part of the UCR campus. I will share with you the information that Chancellor White included in his newsletter.

The Center for Conservation Biology took an initial 5-year investment of $277 thousand and within 6 years had a nearly $6 million investment in direct and indirect research expenditures.

Center for Nanoscale Science and Engineering. The center invested in six faculty positions and built a state-of-the-art classroom, generated $60 million in research support and developed new technologies in the way science and engineering are practiced.

Institute for Genome Biology. Faculty grants rose from $10.5 million in 2001-2004 to $49.2 million in 2005-2007. The campus has anew Genome Building for cutting edge research that includes innovative laboratory design.

Center for Invasive Species Research which has allocated $10.4 million in funding for 103 research projects on exotic pests and diseases that threaten our agricultural, natural and urban environments.

Center for Environmental Research and Technology was started with one faculty member and now has 65 graduate and undergraduate students, 35 patents, specialized laboratories and more than $150 million in grants, contracts and gifts. In partnership with the City of Riverside, the Center has created the Southern California Research Initiative for Solar Energy.

These Centers are a bit of a well kept secret. We need to realize how much our area is developing in the arena of cutting edge research. These jobs create tremendous benefits to our economy and we are fortunate that they are an ever growing segment of our job market.

What's in Your Garage?

November 18, 2009

Garages in California tend to become the storage areas that back-east homes have in attics and basements. After a while, there is more stuff in the garage and the cars are relocated to the driveway.
Recently the insurance company, GEICO, in their promotional magazine had an article entitled "5 Steps to a Gorgeous Garage". This article really caught my attention since I have a garage that barely has enough open space for someone to walk through. Even if your garage is relatively neat, it might be useful to give it a good cleaning while the weather still permits you to take things out of the garage with out fear that rain will destroy them before you get them sorted.

Here are GEICO's tips and I quote:

"1. Make your plan. ...determine in advance how you'll store items so you'll have the necessary containers and materials on hand when you do the job.

2. Carry everything outside and clean the inside....Use cat litter to soak up residue from oil or fluid spills or leaks.

3. Sort. Group together tools, gardening equipment, sporting goods....Be sure to make "Trash" and "Donate" piles, too.

4. Evaluate. ...If you're into garage sales or online selling create a "Sale" area. Ask yourself: Have I used this in years? Am I likely to use it again? If it doesn't work, will I ever fix it? Do I want to bother selling it? Would I buy it now if I didn't have to? Do really need it?

Separately group items classified as "hazardous" such as old computers, fluorescent light bulbs, paint, leftover chemicals which need a safe disposal. Store them is an safe, convenient location so you can drop them off at the appropriate recycling facility when you have time.

5. Put back what you're keeping. Use vertical space to get as much as possible off the floor.... "

This cleaning day could be like a treasure hunt. You could find items that have been long lost.

When the job is done, you will know what you have and I am sure you will maintain the garage in its newly organized state.

National Philanthropy Day is Really Every Day

November 17, 2009

On Thursday, November 19, 2009, the Inland Empire Chapter of the Association of Fundraising Professionals will host a luncheon at the Mission Inn to honor local individuals and organizations throughout the Riverside and San Bernardino counties that exemplify the spirit of giving. Throughout the U.S. National Philanthropy Days have been set aside to focus attention on the value of philanthropic giving to our society.

For the agents at CENTURY 21 Lois Lauer Realty, philanthropy has been a cornerstone of the company's role in the communities that it serves. Since the early 1990s, the company has had a policy of putting aside $10 from each transaction. These monies go into a "Charity Fund" that is administered by a committee of the agents. The company was the first to underwrite a free day at the San Bernardino County Museum. We have given to schools, to many, many community organizations.

In addition to the monies that we give, our agents give of their time. You will find them volunteering at the YMCA, at Family Service, at teen centers, at Montessori Schools, at Loma Linda Hospital, at the Redlands Symphony, at the San Bernardino Symphony, at the Redlands Bowl, at option house, at the drug court, and the list goes on. It is a common happening that an agent will stand up at a sales meeting and make a pitch for donations to a cause that he/she supports. The response of the agents is always positive.

Right now, we each have a child assigned from the Children's Fund. We will each purchase a Holiday gift for our child. We have collected monies for Family Service to provide meals for the holidays.

The philanthropic component of our lives has the benefit of making better the communities in which we do business. Real Estate is a service profession. Perhaps that is why so many of us enjoy serving in the community.

Give Yourself a Gift

November 16, 2009

All the stars are aligning to make the last six weeks of the year 2009 a great time to purchase a home - or maybe even to sell a home. Before you say "Are you crazy?" read the positive factors that presently exist in the single family real estate market.

Interest rates are as low as they have been all year - 3o year fixed at 4.750% and 30 year fixed Jumbo loans at 6.125% and FHA at 5%. All at 1% origination fee and zero points. How long these favorable rates will continue is any one's guess.

The federal governments has just extended the first time home buyer $8000 tax cred until April 30, 2010.

In addition, the Federal government has added a $6500 tax credit for buyers who already own a home and have lived in it as their principal residence for 5 of the past 8 years. It is believed that selling one's existing home is not a necessary requirement for obtaining the credit. The requirement is that the newly purchased home be the principal residence.

Finally, there are some really great homes on the market. Yes, the inventory is not huge, but sellers are wanting to sell. Since the inventory is low, if you are a homeowner who wants to take advantage of the $6500 tax credit, you will have a better chance of selling thereby making your purchase possible.

Agents at one time considered the end of the year holiday season to be the time for their vacations. Based on the increase in activity at the open houses this past weekend, agents will be working, not vacationing.

A home of your own will certainly be a special gift.

Great News for Retail Shoppers

November 13, 2009

In spite of all the dismal news about retail sales, the Inland Center shopping mall is definitely moving in a positive direction. On Saturday, November 14, 2009 at 10 a.m., Forever 21, a store for that fashion minded will open its doors in a 2 story, 94,000 square foot space. Located at 500 Inland Center Drive in San Bernardino, the Inland Center Mall has experienced many transformations. However, just off the 215 freeway, it remains an anchor for shoppers in the East Valley.

If you are one of the folks who like to be first in line, Forever 21 is offering gift cards to the first 400 shoppers in line. These cards have randomly assigned values up to $21 - No, No, I mean $210. Have a look at the trendy fashions and welcome this new retailer to the East Valley.

If you just want to have a day of family fun, this is the final weekend of the Harvest Fair, a Western themed celebration with live music, dancing, costumes, food vendors and prizes. It opens at 10 a.m. on Saturday and Sunday st the Center for Individual Development, 8088 Palm Lane in San Bernardino. Fair tickets are $5, free for children under 7 years of age.

And it will be a great weekend to check out houses for sale and to consider taking advantage of the governments tax credits.

October Median Prices

November 12, 2009

Median Prices in October 2009 were relatively consistent with the median prices reported in September 2009. Most were within a $10,000 range plus or minus of change. One exception was the median price of homes sold in Redlands. Redlands' median has been bouncing along $225,000 to $236,000. In the month of October, the median was $285,000 or $304,500, depending on which transaction in the middle, I rely on. Remember that I use the data as reported in the MRMLS and my unscientific methodology is simply to divide in half the total number of closed sales reported and use the transaction that is that halfway number.

Here are the numbers reported for October closed sales from 2009 back to 2002.

Banning/Beaumont.......2009/171,000......2008/180,000......2007/290,000.....2006/308,000

..........................................2005/327,000......2004/245,000......2003/173,000......2002/135,000

Bloomington...................2009/140,000......2008/145,000......2007/340/556......2006/395,000

..........................................2005/357,000......2004/270,000......2003/189,000......2002/147,000

Colton..............................2009/110,000......2008/155,000.......2007/280,000......2006/330,000

..........................................2005/336,000......2004/275,000.......2003/172,000......2002/144,900

Fontana...........................2009/165,000......2008/240,000.......2007/360,000......2006/410,000

..........................................2005/369,000......2004/310,000.......2003/238,000......2002/177,000

Grand Terrace................2009/175,000.......2008/230,000.......2007/380,000.....2006/380,000

..........................................2005/254,900......2004/300,000.......2003/218,900......2002/188,500

Highland.........................2009/155,000.......2008/222,000.......2007/291,700......2006/385,000

..........................................2005/346,000......2004/269,000.......2003/210,000......2002/159,000

Loma Linda....................2009/250,000......2008/308,284.......2007/425,000......2006/452,000

.........................................2005/410/375.......2004/341,000........2003/230/295......2002/212,900

Mentone.........................2009/185,000......2008/299,000........2007/243/370......2006/273/300

.........................................2005/250,000......2004/157/190.........2003/152,500......2002/158,000

Moreno Valley...............2009/136,000......2008/165,000.........2007/320,000......2006/380,000

.........................................2005/359,000......2004/289,900........2003/205,000......2002/160,000

Redlands........................2009/285/304......2008/254,000........2007/360,000......2006/370,000

.........................................2005/385,000......2004/330,000........2003/240,000......2002/200,000

Rialto..............................2009/150,000......2008/182,000.........2007/299,000......2006/385,000

.........................................2005/360,000......2004/280,000........2003/195,000......2002/165,000

Riverside........................2009/175,000.......2008/224,000........2007/366,000......2006/410,000

.........................................2005/410,000.......2004/330,000........2003/245,900......2002/191,000

San Bernardino.............2009/85,000.........2008/122,000.........2007/236,900......2006/317,000

.........................................2005/289,900.......2004/216,000.........2003/148,500......2002/115,000

Yucaipa/Calimesa.........2009/190,000.......2008/235,000........2007/300,000......2006/410,000

.........................................2005/375,000.......2004/295,000........2003/224,000.......2002/163,000

The data that has a "/" between the numbers such as Redlands with 285.304 is due to the gap between the sold prices at the halfway mark.

Veteran's Day - Operation Gratitude

November 11, 2009

The armistice ending World War I was signed on the 11 day of the 11 month at 11 a.m.. To commemorate this event, the U.S. Government declared November 11 to be "Armistice Day". After World War II, the name was changed to "Veteran's Day" in commemoration of all veterans who fought for our freedom.
It has seemed that some times in our history this day of remembrance has been barely noticed by many citizens. With our present involvement in two wars, it is certainly important to commemorate our armed services and to show our gratitude for their service to our country.

CENTURY 21 Lois Lauer Realty, for the past several years,has participated in "Operation Gratitude". This organization puts together care packages for the troops. The offices of CENTURY 21 Lois Lauer Realty are sites where the public can drop off donations for these care packages. Some items that would be gladly received include:

Warm Scarves - Knit, Crocheted or wool and acrylic

Travel size board games

Hand and Foot warmers

Single serving boxes of cold cereals and individual packets of hot cereals

Commercially wrapped packages of trail mix, Energy bars, Candy

Ready to eat tuna salad or chicken salad kits

Baseball style caps, knit caps and gloves

T-shirts

Socks

Unsealed personal cards and letter paper

Toiletries are only accepted from manufacturers

Ipods, CD players, CDs

This is not an exhaustive list, but is offered as a guide to folks who wish to contribute.

Our offices for drop of are:

Redlands, 1998 Orange tree Lane - 909-748-7000

Yucaipa, 33699 Yucaipa Blvd. Suite B - 909-570-6000

Moreno Valley, 24021 Alessandro Blvd. #B - 909-571-4400

Closed Sales for October 2009-2002

November 10, 2009

Here are the reported numbers of closed single family properties as reported in the IMRMLS for the month of October in the years 2009 back to 2002. Especially noted the dramatic number changes in the years 2008, 2007 and 2006. Clearly from October 2006 to October 2007 the market slowed. What is even more interesting is that by October 2008, the market had again changed. This data reflects volume, not prices, but the speculation would be that the 2007 to 2008 change in volume was the result of the drop in prices.

Banning/Beaumont......2009/140......2008/137......2007/48........2006/77........2005/79

.........................................2004/72........2003/81.........2002/70 Bloomington.................2009/32........2008/37.........2007/2..........2006/25........2005/30

.........................................2004/29........2003/24........2002/27

Colton.............................2009/53........2008/71........2007/13.........2006/43........2005/63

.........................................2004/54........2003/52........2002/44

Fontana..........................2009/303......2008/377......2007/73........2006/198......2005/276

.........................................2004/226......2003/246......2003/225

Grand Terrace...............2009/14.........2008/10........2007/8.........2006/9...........2005/16

.........................................2004/14........2003/10.........2002/8

Highland........................2009/62........2008/79........2007/24.......2006/61.........2005/63

.........................................2004/65.......2003/73.........2002/61

Loma Linda...................2009/17........2008/11.........2007/4.........2006/25.........2005/17

........................................2004/13........2004/11.........2002/12

Mentone.......................2009/8..........2008/13.........2007/2.........2006/4...........2005/8

.......................................2004/5..........2003/16..........2002/7

Moreno Valley.............2009/338......2008/548......2007/84......2006/211........2005/307

.......................................2004/304......2003/283.......2002/240

Redlands......................2009/62.........2008/60.........2007/34......2006/55.........2005/73

......................................2004/63..........2003/78.........2002/78

Rialto...........................2009/151........2008/137........2007/52......2006/87........2005/110

......................................2004/107........2003/131........2002/121

Riverside.....................2009/477........2008/508.......2007/134....2006/344......2005/421

......................................2004/400.......2003/418........2002/379

San Bernardino..........2009/341........2008/290.......2007/95......2006/188......2005/222

......................................2004/198........2003/246.......2002/260

Yucaipa/Calimesa......2009/65.........2008/56..........2007/34......2006/54.......2005/73

......................................2004/58.........2003/81..........2002/51

There are the numbers. They begin to look as though we are returning to a normal volume of transactions. It will be interesting to watch how the year 2009 continues.

The Big News - Home Buyer Federal Tax Credit

November 9, 2009

After much speculation and much pressure from the interested groups, the Congress passed, and President Obama signed, the extension and revision of the Home Buyer Federal Tax Credit Act. The information that I have received indicates that this act provides for the extension of the $8,000 tax credit to first time home buyers purchasing a property that till be their principal residence. It also added a $6,500 tax credit for buyers who have been residing in their principal residence for 5 consecutive years out of the past 8 years if these buyers are purchasing a home to be their principal residence.

There are other eligibility requirements. Homebuyers who file as single or head-of-the-household taxpayers can claim the full $8,000 or $6,500 (depending on which eligibility they have) if their modified adjusted gross income is less than $125,000. Fir married couples filing a joint return, the combined income limit is $225,000.

The eligibility period for the tax credit is for homes purchased after November 6, 2009, and before May 1, 2010.

All homes with a purchase price of less than $800,00 qualify, including newly constructed or resale, single family detached, townhouses or condominiums, provided the home will be used as their principal residence.

This tax credit is a refundable credit which means that is the amount of the income taxes that you owe is less than the credit amount for which you qualify, the government will send you a check for the difference.

Obvious, this is a quick overview of the tax credit act. If you need more information, I feel certain that it can be obtained from http://www.irs.gov/

What to do This Weekend

November 6, 2009

Usually in my Friday morning post I mention a few events happening around the Inland Empire. If you really want to enjoy a fun event, drive on up to Newberry Springs and attend the Pistachio Festival. It will be taking place from 9 a.m until 8 p.m. Saturday at the Newberry Springs Community Park on Newberry Road south of Interstate 40 in Newberry Springs. Admission is free. For more information you can call 559-322-9918 or on the Internet http://www.pistachiofestival.info/

However, this weekend is THE TIME to call a Realtor and start your house hunting project. In just about one hour, President Obama will be signing into law and extension of the $8,000 tax credit for first time home buyers. Added to this legislation is a $6,500 tax credit for existing homeowners who have owned and lived in their houses for at least five years. The extension will be available until April. Details will be posted at a later date.

These tax credits are wonderful benefits for those who fit the criteria. What with prices of housing at their lowest level in several years and interest rates below 5%, it s a great time to consider entering the real estate market.

Of course, after touring houses Saturday, you could treat yourself to a performance by the Redlands Symphony. Entitled "Horns of Plenty", the symphony will present a concert of music by Mozart, Hayden and Beethoven. The concert begins at 8 p.m. and tickets are $16-$50. (909)748-8018 or http://www.redlandssymphony.com/

Flipping Has Returned

November 5, 2009

Remember when the real estate market was going crazy. Folks were buying houses and sometimes within a six month period they were reselling - and making a profit. Then the marked tanked and rather than increases in prices, there were decreases in prices. Flippers who entered the market late in the cycle were put in the position of actually using the property as an investment and renting it or, letting the lender take it back through foreclosure.

In the present real estate market, with prices still pretty volatile and mostly on the downward trend, it would seem that "flipping" a property to make a profit would be out of the question. Not so. Both FHA and Conventional lenders have stepped in to regulate the "flipped" property. For 90 days after a property is purchased by an investor, FHA will not make a loan on that property. Just this week it was announced that conventional lenders will not loan on flipped property unless the borrower puts at least 20% down.

How did the current flipping scene come about? Investors with cash available go to the court house steps and at the foreclosure auction bid on the property. No longer are there no bidders, there are many gathering to here the trustee's representative announce the auction. Lenders have the first bid, but it seems that they are reducing the amount of that first bid to a level that attracts investors looking to flip. It was once the case that the first bid by the lender was the amount that was owed plus the costs of sale. From what I hear that is no longer the case and properties may sometimes sell for much less. Investors are also going to lenders and purchasing a block of properties which they then repair and put on the market.

While flipping is a strategy to make money, the properties that I have researched that are flips seem to indicate that the investors wants a quick return and therefore resells at a relative slim margin of profit.

Even in the worst of times, folks can be entrepreneurial, but is still takes a reserve of available cash.

Clouds in Cyperspace

November 4, 2009

Recently the business media has been writing articles on "clouds". As I understand"clouds", they are remote servers on which to file and store data. Interestingly, CENTURY 21 Lois Lauer Realty has been using a "cloud" for the past 4 years. Our Escrow Department and our Transaction Coordination Department have been entering all documents onto a vast off-site server. Our clients, customers, vendors and agents receive a password and they are able to remotely pull up their documents and view them. At the close of a transaction, their documents are downloaded onto a CD and the clients have a paperless way to keep their documents.

Transitioning to this type of storage was not always smooth, but staff and agents are definitely finding it useful.

Our "cloud" is called Planet RE and although most of us may not understand the technology involved, we do know the benefits of using cybertechnology. We can access our transactions from our home computers and we can forward by e-mail any documents requested by lenders, buyers and sellers .

It was scary at first not to be able to "touch" your documents. In order to reduce the "scare factor" we have a back-up paper file until the transaction is completed and for a short period thereafter.

As more businesses see the benefits of subscribing to a remote system for their files, the skillful computer person will have an edge. Since the genXers and younger folks take texting and computer use for granted, "clouds" are much in the forefront of business investment.

California is Still A Land of Opportunity

November 3, 2009

A recent Time Magazine cover story featured California. Commenting that the state of California is the 8th largest economy in the world, the writers clearly believed that the future of our state will be bright. Throughout 2009 there has been much bad news; budget deficits, huge numbers of foreclosures and banks going under. However, California is the state that encourages innovation and innovation ultimately creates jobs and wealth.

A look at our own Riverside/San Bernardino County area reflects this innovative and entreprenural spirit. Medical advances such as heart transplants and proton beam therapy have their centers in our region. We have a concentration of higher education institution that encourage research in fields such as biology, botany, geology, ecology, and geography. The world's largest developer and producer of GIS technology is located in Redlands. The San Bernardino County Museum has one of the world's largest collection of bird eggs that are becoming of prime importance to researchers in the field of environmental changes. We had an experimental site for solar energy. We have fields of wind machines.

Like much of California, we have recreational facilities that offer boating and camping and hiking and skiing. We have beautiful mountains and deserts.

Finally, unlike some of the pricier coastal regions, we have affordable housing. According to the latest data, 67% of our wage earners can afford our median priced homes. We are coming out of a national, perhaps international, economic downturn. Now is the time to enjoy our clear, crisp weather and the opportunity to prepare for a bright future.

If you know other benefits of living in our area, post a comment.

LIsting and Pending Ratios hold steady in October 2009

Novemebr 2, 2009

As I have been doing now for over a year, I search the IMRMLS data for the number of active listings and the number of reported pending sales. The pending sales numbers could be a tad greater than reported if the properties that are reported as on the market for back-up offers were to be included. I have not included them in the following numbers.

Banning/Beaumont.......Active/465.......Pending/239........Ratio/.514

Bloomington...................Active/62.........Pending/66..........Ratio/1.065

Colton..............................Active/124.......Pending/96..........Ratio/.774

Fontana...........................Active/405.......Pending/616........Ratio/1.521

Grand Terrace................Active/18..........Pending/15..........Ratio/.833

Highland.........................Active/145........Pending/93.........Ratio/.641

Loma Linda....................Active/60..........Pending/27.........Ratio/.45

Mentone.........................Active/20..........Pending/15.........Ratio/.75

Moreno Valley...............Active/494........Pending/765.......Ratio/1.549

Redlands.........................Active/213........Pending/107.......Ratio/.502

Rialto..............................Active/193.........Pending/285......Ratio/1.477

Riverside........................Active/992.........Pending/862.....Ratio/.869

San Bernardino.............Active/671.........Pending/543......Ratio/.809

Yucaipa/Calimesa........Active/203.........Pending/106......Ratio/.522

Most of the activity is still in the under $400,000 range, but there is a slight pick-up in both listings and pendings in the over $400,000. Bloomington, Colton, Grand Terrace, Mentone and Moreno Valley have no pending sales reported in the over $400,000 range.