Circus Dreams

May 6, 2010


One of the unique events in our area kicks off this weekend. The annual East Valley YMCA opens The Great All American Youth Circus on Saturday, May 7 at the Redlands Family YMCA, 500 East Citrus Avenue in Redlands. Several hundred young people will exhibit their gymnastic skills. This was begun in 1929 by then YMCA Executive Director, Roy Cobel and has been presented every Spring since.


Tickets went on sale on Monday, April 19, 2010 and are available in the lobby of the YMCA. Tickets will also be available one and a half hours prior to each show.


For information you can call (909) 798 -9622, EXT 360 or you to http://www.ycircus.org/


It is my understanding that tickets will not be sold over the phone.


Another youth event this weekend on Saturday, May 8, The Redlands Morning Kiwanis Club and the Ride Yourself Fit Club will stage a safety bicycle ride for children ages 5 to12.


After a talk about bike safety. the children will take a one mile and a five mile bike ride alongside adult and teen Ride Yourself Fit Club members. The even will begin at 8 a.m. and end at noon in the parking lot of the Just For Kids dental office at 104 . Olive Avenue. For more information , contact Alesandra Wilson at 909-798-3331 or stop by the IN Your Best Interest Medical Clinic at 1201 Brookside Avenue.

The Secondary Market

May 6, 2010


In yesterday's blog I mentioned that lenders sell loans on the secondary market. Sometimes those of us who have worked in the real estate business think that everyone knows what we know. Foolish assumption.


Even with all the media coverage of the Fannie Mae and Freddie Mac, it may not be clear to the man on the street exactly what role these entities play in the U.S. real estate arena.


They were established to increase the ability of lenders to create home loans by providing an entity that was partly private and partly government backed that could purchase the loans originated by your local bank. By selling a loan to Freddie or Fannie, the local bank would then have the loaned funds back to use to create another loan for another borrower. Up until the financial crisis, the system seemed to operate as it was created.


Unfortunately, as you may have recently read, some smart investors figured out how to create a market, not for the loans themselves, but for securities backed by these loans. All of this and the serious downturn in home prices, caused Fannie and Freddie to pretty much be underwater themselves. The federal government stepped in to bail them out so that the secondary market would not disappear. Without the ability for local banking institutions to sell their loans, the amount of money available would become greatly diminished and would have further impacted the ability of owners to sell since there would be so little money available for making loans.


It is hoped that the stricter guidelines for the local lenders and the government bail out of Freddie and Fannie will create a more stable real estate environment and the financial markets will be functioning as they were created to function.

A Few Tidbits About thie Current Real Estate Market

May 5, 2010
Even the experienced real estate agents who have sold property in other down markets are learning how to work in this market. Along with their buyers and sellers, they are having to learn how to work with lenders and their investors. It seems that a bank's asset managers are also on a learning curve.
Having experienced the Resolution Trust Company of the 1990s that was established to dispose of foreclosed properties, it has been a tad hard to understand why it seems to have taken a very long time for banks to develop a system for dealing with their foreclosed properties and with short sales.
Having said that, once a bank approves a purchase agreement, the borrower will probably encounter the "NEW RULES" for obtaining financing. First and perhaps foremost, if you are a purchaser and are obtaining a loan, absolutely do not get so excited about your potential new home that you go out and purchase furniture, appliances or make any large purchase until your transaction has recorded. It is standard practice for lenders to check borrower's credit scores just before the loan is approved for funding. Any major new charges could affect your credit score (FICO) and, oops, the lender will not fund.
Another practice that we have recently encountered involves buying a home prior to selling your present residence. Lenders are wary of fraudulent buyers. Those are the buyers who are really buying investment property, but apply for a loan as an owner occupant. Even with wonderful FICO scores and more than a minimum down payment a lender might insist that the buyer take a non-owner occupant loan which will have additional fees. And this surprise may only occur late in an escrow.
As for the wood destroying pest addendum requiring a pest control inspection and for the recommended work to be completed prior to close of escrow, be aware that lenders are beginning to require that the Section 2 items be also completed. These are the conditions that might lead to an infestation, but are not yet one; earth to wood contact is one.
After the financial crisis of the past year and a half, lenders are super cautious plus their ability to sell their loans on the secondary market has been seriously impacted.
Find out from your mortgage rep as much as you can about how the "NEW RULES" might affect your transaction, but remember, they are also learning.

Patios as Addional Living Space

May 4, 2010


In Southern California, a patio is almost a "must-have" amenity for a home. With our pleasant weather, particularly in the evenings and our lack of pesky mosquitoes, our patios become a lace to relax to bar-b-que, to entertain and to enjoy our environment. So, why not make your patio as great living space as your family room.


If you leaf through any house and garden magazine, you will find illustrations of patios that do look like interior rooms. They have comfortable sofas, chairs, lounges. They have tables. They may have a fire pit or a propane heater to take the chill from cool evenings. They may have almost a complete outside kitchen complete with gas grill, refrigerator, and silk.


Some even show a flat screen TV mounted on the house wall.


Whether or not you go all out to furnish your patio, you can still make it an appealing amenity. Some potted plants, a wood or wrought iron table, some chairs and/or chaises and there you are.


If you are putting your house up for sale, look seriously at your exterior spots. Staging them may be just as important as staging the interior of your home. Just remember, you need to keep all spaces crisp and clean.

Here is an Oft Neglected Area of "Staging", The Garage

May 3, 2010


It seems that in Southern California where homes have no attic or no basement, the garage becomes the catch-all, store-all for the possessions we are to ready to toss. I know mine is.


Here are some excerpts from an article in the GEICO magazine.


"5 Steps to a Gorgeous Garage"


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


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


3. Sort. Group together by category i.e. garden tools, sporting goods, etc. Have a "trash" and "donate" pile or a "sell" pile if you intend to have a garage sale.


4. Evaluate. Be honest about what you want or need to keep.


5. Put back what you are keeping. Use peg board, hooks or wall strips. Don't go back to your old habits of stashing in the garage what you think you might want at a later date. If, when you put things back in the garage you designate specific spaces for items, you will be less likely to keep things that do not fit the categories.


There are many companies now who will come and build out storage in your garage. If you really want to have a gorgeous garage, you might consider checking these companies out.

A Fund Raiser for theInland Master Chorale

April 30, 2010


The Inland Master Chorale is celebrating its 30th anniversary on Saturday, May 1 with a Gala Casino Night Fundraiser to be held at the Redlands Country Club. Part of the proceeds from the event will be used to establish a young Artists Scholarship Program.


The Inland Master Chorale is made up of about 70 singers from throughout the Inland Empire. Under Roger Duffer's direction, the chorale has won awards and gained national and international recognition. Tickets for the fundraiser may be purchased for $75 by contacting Bill or Connie Jury at 909-793-6611. There will be no sales at the door.

To Stage or Not to Stage

April 29, 2010


Staging a property sort of had its major debut back in the 1980s. As I recall. a real estate agent named Barbara Schwartz from the Seattle area came up with a book and seminar entitled "Dress Your House for Success"> I went to one of her seminars and she was very persuasive about the benefit of "staging" a property. Such ideas as "You won't buy what you can't see." seemed right on. Pictures of the front of a home nearly obscured by shrubbery was not nearly as attractive as one with the shrubbery cut back and fresh flowers planted to add color. A home with wall paper everywhere, made the home too personal to the present owner and less appealing to a prospective buyer who had different tastes in color and design.


It has always been true that "crisp and clean" sells better than "dated, dirty and cluttered".


At a minimum, every owner who wishes to sell needs to declutter and clean up. Depending on one's budget, the fix up for a sale can be just a good decluttering, rearranging the furniture and cleaning. If funds are available, an investment in paint and new carpet may well make the property sell quicker - not necessarily for more money.


A properly prepared property generally sells quicker and, if priced to match a market value, for the listed price or , even in this market, for more.


Bottom line, if a home is not at least minimumly "staged", the price will need to be at least some percentage under what similar "staged" houses sold for. One of Barbara's catch lines was " The way you live in a house that is for sale is not the way you live in a house normally." or words to that effect. When you offer your home for sale, in a real sense, it is "on stage."

What is a "Buyer's Market?"

April 28, 2010


Recently I had a prospective buyer of a home who had thus far put in several offers on newly listed properties and not be the successful offerer remark, "I thought this was a buyer's market."


If by a "buyer's market" one thinks that there are more houses than buyers and that buyers can name their price, that is not this market. Perhaps a buyer's market would be when sellers are willing to negotiate with a buyer and the buyer is able to purchase properties substantially under the list price.


The reality of this market is that it has more the characteristics of a "seller's market" in that there seems to be more demand than supply. However, prices do not seem to be having the upward pressure that one might expect in a "seller's market".


I suggest a couple of reasons: There is still much fear in prospective home buyers that prices will continue to fall. Much of the present inventory is made up of "short sales" where the listed price is less than what is owed and until a lender/investor agrees to take the loss, they remain unsold, and I might add, not popular with buyers because of the uncertainty of whether an offer will be accepted or not. Also the lender decides whether the price a buyer offers is acceptable and may counter a higher price. The lender, not the buyer, is in charge. Since the short sale may be offered by the owner at a very competitive market price, there can often be multiple offers.


Tune in as the government's tax credits expire to see if the buyers still looking to find a home keep the competition for the well priced, well located, good condition homes moving.


Presently, it seems that lenders are still in charge of this real estate market.

"The Shadow Inventory"

April 27, 2010
For almost a year now, there have been reports of a "shadow inventory" of foreclosed homes. Estimates have run anywhere from 770,000 homes to 7 million. Commentators treat this supposed "shadow inventory" as the other shoe to fall. There is no doubt that there are a large numbers of home owners who owe more than their property is worth. There also seems to be a large number of already foreclosed properties that are still in the lenders portfolio and have yet to be but up for sale.
The fear seems to be that the lenders will suddenly dump all of these homes on the market at under market prices and thereby further lower the value of property. To date, that does not seem to be the case. In fact, in some instances, these properties are listed at current market values. If they are brought to market below what buyers perceive to be "value", there are often multiple bids and the selling price can be higher than the price at which the property was listed.
Whether because of the tax credit monies or because investors are aware that present prices offer good up-side potential, these bank-owned properties are selling as quickly as they come to market, thus they are not swelling the unsold inventory in the market place.
As the real estate market finds its bottom and stabilizes, it will be of interest to watch how lenders do rid themselves of these non-performing assets that are apparently sitting on their books.

Recommended Real Estate Books - 2006

April 26, 2010


I have been cleaning up my desk and sorting through papers. I found this list which had been printed on the Inman Wiki which I had downloaded in August of 2007. It is entitled "The 10 best real estate books of 2006. I share the titles with you as I found it very illustrative of how the real estate scene, and to a large extent, the mortgage scene has changed from 2006 to 2010.


1."Trump-Style Negotiation". According to the reviewer, "...this extremely well written book that reveals negotiation tactics not found elsewhere..."


2.The Automatic Millionaire Homeowner". "It shows you how home ownership can lead to wealth."


3. "Buy Even Lower". ..."shows how to buy single family homes at targeted below-market prices and then either buy and hold,buy and flip, or (their favorite) buy and lease purchase."


4. "Real Estate Debt Can Make you Rich". " The two authors of this book, which explains why real estate debt is good, are (a) home buyers and realty agents who want to understand the inner workings of the mortgage industry and (b) investors who need to now how "good debt' can be created to maximize realty profits."


5. "Bubbles, Booms and Busts; Make Money in Any Real Estate Market". "This extremely well-researched book explains the signals of local rising, falling or neutral local home sales markets, and how to profit in any situation as long as you take a long term perspective on home sales.


6. " Success A Real Estate Agent for Dummies." (I actually purchased this book when I was working with new licensees.)


7. Everything You Need to Know Before Buying a Co-op, Condo, or Townhouse".


8. "Who Says You Can't Buy a home?" This mortgage broker author... explains how mortgage lenders look at borrowers in this "tell all" book."


9. "Confessions of a Real Estate Entrepreneur." "This books theme is "add value" to real estate whether you invest in raw land, houses, run-down factory buildings with rezoning potential, or fixer upper apartments and offices."


10. "The Reverse Mortgage Advantage." In this book "Virtually all aspects of senior-citizen reverse mortgages are thoroughly explained in this detailed but easy to read book with emphasis on the pitfalls as well as the major benefits."





There you are. books for the hot real estate market. It would be interesting to see what the titles might be for 2009/2010.

A Diversity of Opportunities

April 23, 2010


This week end, actually it began on Thursday, April 22, the Lake Arrowhead film festival begins its 11th season. It is presented all under one roof from Thursday through Sunday.The festival includes 88 films, 3 events and 1 seminar. There will be the world premiere of "Green Guys", a story inspired by the Bernie Madoff scandal.The venue is the Lake Arrowhead Resort and Sap at 22984 Highway189. Lake Arrowhead Village. Prices for admission range from $10 for a block of films or an all-access Platinum Pass which includes all events except the Friday night gala. The Platinum Pass is $160. For information call 909-337-7587 or on the Internet, http://www.lakearrowheadfilmfestival.com/


On Sunday, April 24, the Loma Linda University Possibilities Triathlon present by the San Manual Band of Mission Indians will bring together recreational and professional athletes for a 3.1 mile run, an 11 mile bike ride and a 5K run/walk/roll. This will be the 8th annual Triathlon that brings together able-bodied and physically-challenged athletes. The event begins at 7 a.m. at the Drayson Center, 25040 Stewart Street in Loma Linda.


If you are a gardener, you might want to attend a program presented by Master Rosarian Jack Shoultz entitled "Growing Roses Organically. It will be at 7 p.m Monday, April 26 at the Towngate Community Center in Moreno Valley. There is no charge and everyone is welcome.For more information cal 951-544-8884.

Earth Day, 1970 + 40

April 22, 2010

Today is the 40th anniversary of the establishment of Earth Day. Back in 1970, the issues about our planet were different than they are today, but the goal was similar. We need to be conscious of the environment and the need to take care of it.

As part of the federal stimulus program, the federal government is giving away $35.2 million to Californians who buy energy efficient appliances starting today. Each state was permitted to decide how to distribute the money. In California, the Energy Commission is administering the rebates.

California's "cash for appliances" program begins on Earth Day with hundreds of thousands of people expected to buy energy efficient appliances, recycle old ones and take advantage of the program's three rebates: $100 for washers. $75 for refrigerators. and $50 for room air conditioners. Consumers will have to mail in a sales receipt for a new, qualified appliance and proof that they disposed of their old appliance with a recycler, retailer or municipality. Like many of these other stimulus programs, it is on a first come, first serve program and the program will last only as long as the allocated money lasts.

Feathering Your "Nest"

April 21, 2010

For those of you who consider your home as a "nest", that is, as a place to enjoy your life, your family and your friends, this you might consider this a good time to "feather" it. What I am alluding to is that since you recognize that your "nest" is not the "nest egg" you anticipated, you may want to seriously consider some home improvement projects that will increase your comfort.

If remodeling is in your future plans, here are some suggestions for selecting the contractor to do the job and possibly save money in the process.

1. Ask your friends and acquaintances for a reference. Talk to folks who have had similar projects to get the name of their contractor and what they liked or disliked about the way the work was completed.

2. Make a list of what you want or need to have done and the order in which you want to do it.

3. Get bids from at least three contractors. Get the contractors' license numbers.

4. Don't automatically go for the lowest bid. Make sure that the contractor has outlined exactly what and how the work will be done.

4. Make your payment agreement before the work starts. How much retainer or what portion needs to be paid before the work can begin.

5. Be available once the work begins as the contractor may have questions and if you are unreachable, it could delay the work.

6. Get a start date and a completion date.

These are just a few of the questions to use as you select a contractor.

A Site for Answers to a Home Owner's Questions

April 20, 2010

The National Association of Realtors have established a web site designed to be a resource for consumers about protecting, maintaining and increasing the value of their homes. Here is a sampling of information that is available on the site. This information is from an article in the NAR Realtor Magazine.

"Good questions to ask before hiring a contractor. Will you itemize your bid so it's clear what your charging for each aspect of the job? Is the bid an estimate or a fixed price? "

"When to make an insurance claim and when to skip it. Generally it makes sense to file an insurance claim for damage that exceeds your deductible."

"How to plant a tree in the right spot. Planting a deciduous tree on the west side of a house provides cooling shade in the summer. In winter, after it loses its leaves, the same tree lets in sunlight that cuts the heating and lighting bills."

"Right tools and methods for bathroom cleaning. Unleashing a chemical onslaught isn't necessary. A pumice stone and rubber gloves are sufficient for removing mineral deposits in bathrooms. For additional power mix baking soda with vinegar."

This is just an example of the variety of subjects that are available on the site.

http://www.houselogic.com/

A New Buzzword, "Livable"

April 19, 2010

I have recently read several articles about what buyers are focusing on when they are looking for a home. The word most often used is "livable" spaces. One article even alluded to buyers being willing to give up some luxury amenities if the home had the right spaces to fit their lifestyle.

So what are some of these spaces that make a home more "livable"?

Large kitchens are still a desire, but a kitchen that is open to a family room or is a part of a "great room" is still acceptable even though the kitchen itself may be more of a galley-type kitchen.

Larger secondary bedrooms have become more desirable. If you remember, houses built in the late 19703 and early 1980s had minimum sized secondary bedrooms.

Livable also includes energy saving features such as dual paned windows and energy star appliances.

Some buyers would even forgo the dramatic entry with the sweeping staircase for the space of the entry being used in other rooms and the staircase being functional rather that too dramatic that it uses up space.

Using "livable" as a new tool for assessing a home. Just as "beauty" is in the eyes of the beholder, so is "livable". What is livable for a family of four may not be "livable" for a family of seven, or a family of one. Still looking at a home as "livable" brings the assessment back to why we want a home in the first place. It is the place where we will LIVE.

Just a Sampling.....

April 16, 2010



This weekend there are many choices for fun events to attend or in which to participate. Saturday from 10 a.m. to 1 p.m. you can visit Plymouth Village at 120 East Palm Avenue and sample their wonderful orange muffins. Seven years ago, the village began this event which includes live music and a delicious orange muffin from the Edwards Mansion orange muffin recipe. The site of Plymouth Village was the site of the original Edwards Mansion until the mansion was moved to its present site adjacent to the San Bernardino County Museum. For a charge of $3.00 these wonderful muffins can be sampled. More information at http://www.redlandsevents.com/



Saturday and Sunday, the Horticultural and Improvement Society will hold their annual flower show. There will be displays at the ESRI Cafe on New York Street as well as an itinerary of gardens to tour. This is a good time to check out how plants can create great improvements to your home. Also more information if you google Redlands Horticultural and Improvement Society.



Then, bright and early Sunday morning, you can join the "Run Through Redlands' sponsored by the Redlands Kiwanis Club. This run is the biggest running event in the Inland empire. For additional information go to http://www.redlandsevents.com/



On Sunday afternoon the Redlands Symphony Orchestra will have a Family Concert at 3 p.m. with doors opening at 2 p.m. The concert is free. It is also an opportunity to meet the musicians, "pet" their instruments and have a wonderful afternoon of music. For more information go to http://www.redlandssymphony.com/

Just a Thought on Tax Day

April 15, 2010

As you complete your 2009 income tax filing, was the amount that you owed greater or lesser than you expected? Just think, if you had purchased a home as a first time home buyer, you would have had toe items that could have reduced your tax liability. If you purchased in the window of opportunity for the $8,000 tax credit, your tax build could have been reduced by $8,000. (Remember this is not a deduction, but an actual credit against the tax that you owe.)

The second item that might have reduced your tax liability would have been the interest paid on the mortgage that you obtained to purchase your home. To date, Congress has not taken this interest deduction away from property owners. The first several years that you own a home, most of your mortgage payment is, in fact, interest.

It is too late for your 2009 taxes, but not too late for 2010. The $8,000 tax credit can still be obtained if you have a valid contract to purchase a home before April 30, 2010. Yes, just two more weeks to act. The good news of course is that California has a $10,000 tax credit if you close an escrow after May, 1, 2010 and before December 31, 2010. This credit is doled out over a three year period, but the interest deduction will still be a benefit even if you miss these tax incentives.

So, it is time to consider buying your first home. Prices are remarkably affordable and interest rates continue to hover around 5%. Go for it !

Just in Time - Califiornia Legislature Acts

April 14, 2010

On April 12, 2010, Senate Bill 401 was enacted into law. This bill generally aligns California's tax treatment of mortgage debt relief income with federal law. For debt forgiven on a loan secured by "a qualified Principal residence." borrowers will now be exempt from both federal and state income tax consequences. Prior to the enactment of this law, any seller who sold "short" (i.e. the amount of the mortgage debt was greater than the selling price), was liable to the State Franchise Tax Board for income taxation on the amount of debt that was "forgiven".

The federal government had extended the debt relief last year to continue from 2009 to 2012. The federal exemption is for indebtedness up to $2 million. However California is not quite so generous as there is a $500,000 limit on debt forgiveness.

Since short sellers are a significant category in our Inland Empire real estate market, this extension of the tax exemption will be beneficial. It seemed rather counterproductive to have upside down sellers be better off financially if they just let their property go to foreclosure rather than pay the income tax.

Let's hope now that lenders can speed up the short sale approval process.

Are Repairs Required to Sell a Property?

April 13, 2010

If the buyer of a property is purchasing a property with the assistance of a lender (getting a loan), it is possible that the appraiser will list repairs that will be a condition of obtaining financing. Usually this is less the case with conventional financing as the appraiser will make the judgement as to the value of the property based on the present condition. However, if the buyer is using FHA insured financing, it has been historically typical that there could be repair requirements that must be completed prior to the loan being funded.

Some of the most frequently FHA required repairs include the following:

Broken windows

Extensive drywall damage (Large holes, severe water damage)

Defective heat source

Gas leak

No hot water heater

Water heater must be properly strapped to the wall (Top and bottom wrapped and bolted)

Missing plumbing fixtures

Missing or exposed electrical

Chipping and peeling paint (interior and exterior)

Missing exterior doors

Security Bars on windows must have quick release

Leaking or just worn out roofs (will need a roof certification)

Any evidence of structural problems (excessive cracks, slanted foundation)

When selling a home it would be wise to make sure that it will not have any of these red flags. When purchasing a home, you might want to include a list of required repairs in your offer so that the seller knows that these costs will be incurred and could affect the bottom line.

Appraisals - Be Aware of the Guidelines

April 12, 2010

In olden times, real estate agents would prepare copies of sold property data that was comparable to their listing. They would give this data to the assigned appraiser in the hope that the appraiser would use the data in the official appraisal of the property. No more. Now appraisers are to be at arms' length from being influenced by either the lender or the agent.

Appraisers are assigned through a central clearing house on a rotating basis.

Appraisers measure the house and are especially on the lookout for additions. If there are additions, chances are very strong that the appraiser and the underwriter who reviews the appraisal will request copies of the permits. This is especially true if the square footage on the assessor's records does not match the square footage as measured by the appraiser. A possibility is that the appraiser will simply use the measured square footage to calculate the appraised value and because the property will now be smaller, it is entirely possible that the appraised value will be less.

Sellers and agents need to be sensitive to additions and/or discrepancies in the recorded square footage and the measured square footage. It is often wise to check with the local building department and get copies of all the permits. Sometimes a contractor takes out the required permit but fails to have a final inspection. If the addition was done without a permit, some municipalities do allow the owner to file for an "as built" permit so that the work can be legalized.

Bottom line for anyone doing remodeling of almost any kind - get a permit. When you decide to put your home on the market, you will be happy that you did and you will avoid a delay due to an appraisal problem.

Big weekend in the Inland Emprie

April 9, 2010

Perhaps because the 2009-2010 academic year is coming to a close at the University of Redlands, there are some great events this weekend.

The 20th annual Living on Common Ground Multicultural Festival will be held Saturday, April 10 from 11:30 a.m. to 6:30 p.m. on the University's Quad. The event was begun in the hope that it would bring together the university and the community to celebrate various cultures through music, food, art and activities. Admission is free and the public is invited to participate.

The University's Theatre Department opened its production of "Mrs. California" at the Glenn Wallichs Theatre in the Theatre Arts Building on University Street. There will be performances this evening and Saturday evening at 8 p.m and Sunday at 2 p.m. General admission is $10. The University community and Seniors are $6. The author of the play has been a visiting professor for the past year and this production has had her input.

Also in conjunction with Crafton Hills College and the U of R's School of Music, Mozart's opera, "The Magic Flute is being presented at the Finkelstein Performing Arts Center on the Crafton Hills Campus. It also opened yesterday evening and will be presented this evening and Saturday at 8 p.m. with a matinee on Sunday at 2 p.m. Admission is $20.

The San Bernardino County Museum will be hosting an emergency services exhibit on their parking lot from 9 a.m. to 3 p.m. on Saturday. The San Bernardino County Animal Shelters will also be there with puppies for adoption. Th adoption price is $25 and includes all the inoculations and spaying. Cal State Students will also be conducting Chemistry demonstrations.

If you know of other events, why not click "comment" and enter them on the site.

Median Home Prices - March 2010-2003

April 8, 2010


It is interesting to trace the rise and fall of median prices in the Inland Empire. In the fourteen communities that I track, about half have slightly higher median prices than last March. The rest are slightly less. However, no big discrepancy such as were apparent from March 2007 to March 2008.


Here are the numbers.


Banning/Beaumont..........2010/185,000......2009/160,000.......2008/238,000......2007/285,000


............................................2006/305,000......2005/254,900......2004/185,000.......2003/135,000


Bloomington......................2010/155,000......2009/190,000......2008/249,900.......2007/391,000


............................................2006/365,000......2005/285,000......2004/216,000.......2003/168,000


Colton.................................2010/102,000.......2009/127,900......2008/220,000......2007/275,000


............................................2006/333,000......2005/264,000......2004/180,000......2003/132,000


Fontana..............................2010/200,000.....2009/190,000......2008/319,000.......2007/419,900


............................................2006/413,000......2005/349,900......2004/265,000.......2003/185,000


Grand Terrace..................2010/249,900......2009/193,000......2008/280,000......2007/382/424


............................................2006/405,000......2005/349.900......2004/290,000......2003/194,000


Highland............................2010/160,000......2009/120,000......2008/335,000......2007/380,000


............................................2006/365,000......2005/309,000.....2004/195,000......2003/171,000


Loma Linda.......................2010/179,000......2009/215,000......2008/350,000......2007/379/435


............................................2006/465,000......2005/304,900......2004/238,000......2003/213,000


Mentone............................2010/164,000......2009/55,000........2008/330,000......2007/254/419


............................................2006/293/315.....2005/219,900......2004/159,000.......2003/179/210


Moreno Valley..................2010/150,000......2009/135,000......2008/236,990.......2007/364,000


............................................2006/375,000......2005/305,000......2004/237,000......2003/172,000


Redlands...........................2010/214,000.......2009/218,000......2008/310,000......2007/412,000


...........................................2006/409,000......2005/342,000......2004/314,000......2003/238,100


Rialto.................................2010/155,000......2009/145,000......2008/224,900.......2007/375,000


...........................................2006/375,000......2005/302,000......2004/229,000......2003/180,777


Riverside..........................2010/190,000......2009/178,000.......2008/293,000......2007/405,000


...........................................2006/420,000......2005/364,000......2004/294,000......2003/199,500


San Bernardino................2010/90,000........2009/82,000........2008/190,000......2007/310,000


...........................................2006/303,000......2005/245,000......2004/165,000......2003/124,950


Yucaipa/Calimesa...........2010/199,000......2009/205,000......2008/289,000......2007/350,000


...........................................2006/374,900......2005/315,000......2004/245,000......2003/190.000


This is not a scientific method for determine median prices. I simply use the data reported through the IMRMLS and take the number of closed transactions and divide by two. The price of the property at this halfway point is the property I select for the median price. Half of the sales reported closed above this number and half closed below.

Closed Transactions - March 2010

April 7, 2010

Closed transaction in the month of March 2010 continued to have similar numbers as the past several months. Whether the recent numbers of transactions have been the result of the first time home buyer's tax credit or just potential buyers realizing that home prices were at a very affordable level is hard to pinpoint. The number of units sold as reported through the IMRMLS indicate that the real estate market in the Inland Empire is experiencing a rebound from the lows of 2007 and 2008.

Here are the numbers for March 2010 back to March 2003.

Banning/Beaumont............2010/112..........2009/137..........2008/89..........2007/62

..............................................2006/98............2005/99............2004/89.........2003/72

Bloomington........................2010/20............2009/25............2008/6...........2007/7

..............................................2006/24............2005/23............2004/23.........2003/21

Colton...................................2010/38............2009/66............2008/20.........2007/23

..............................................2006/67............2005/52............2004/48.........2003/36

Fontana...............................2010/284..........2009/357..........2008/97.........2007/142

..............................................2006/270.........2005/301..........2004/238......2003/229

Grand Terrace...................2010/5..............2009/7...............2008/6...........2007/2

.............................................2006/7..............2005/13.............2004/10.........2003/10

Highland.............................2010/67............2009/87.............2008/27.........2007/39

.............................................2006/67...........2005/75.............2004/69.........2003/67

Loma Linda........................2010/15...........2009/13.............2008/9............2007/15

.............................................2006/17...........2005/7...............2004/11..........2003/16

Mentone.............................2010/5.............2009/9...............2008/8............2007/4

.............................................2006.9.............2005/6...............2004/10..........2003/2

Moreno Valley...................2010/308........2009/505..........2008/175........2007/120

.............................................2006/333........2005/340..........2004/279.......2003/229

Redlands............................2010/57...........2009/55.............2008/48.........2007/63

............................................2006/76...........2005/100..........2004/85..........2003/75

Rialto..................................2010/122.........2009/132..........2008/48..........2007/53

............................................2006/118..........2005/127.........2004/102........2003/83

Riverside...........................2010/417..........2009/530.........2008/207........2007/259

............................................2006/487.........2005/427..........2004/371........2003/359

San Bernardino................2010/261..........2009/338..........2008/96.........2007/139

...........................................2006/255..........2005/241.........2004/241........2003/224

Yucaipa/Calimesa...........2010/65............2009/62............2008/40.........2007/54

..........................................2006/67.............2005/79............2004/81.........2003/60

If you want to compare the numbers to those of February, you can look up the post of March 8, 2010. The numbers for March seem to be a bit better than those of February.

Energy Tax Credits

April 6, 2010

For those of you who are enjoying your present home and would also like to enjoy some tax credits, energy saving home improvements are a great way to go. As part of the federal stimulus package last year, there is a list of home improvements that you could make in 2010. These improvements could reduce your energy bills, contribute to the value of your home and make you eligible for tax credits. While these tax credits are not as substantial as the first time home buyer tax credits, they help with your overall home improvement costs.

The most substantial credit would be for converting your entire home to a solar energy system. The credit is based on the cost and is generally calculated at 30% of the cost. New furnaces, air conditioning, tankless hot water heaters are all improvements that could be eligible for this credit.

One of the most common home improvements that seems to be popular these days is the replacement of single pane windows with new dual pane windows. Again the credit is 30% of the cost, but there is a cap of $1500 on these improvements.

Some states offer additional credits as do some utility companies. It is a good idea to read the inserts that come with your utility bills as these inserts often refer to the rebates and credits that are being provided.

All of these improvements can be enjoyed and many of them will definitely enhance the future value of your property.

A Window of Opportunity

April 5, 2010


A window of opportunity has opened for some prospective home buyers in the state of California.


A newly enacted law as set aside $200 million dollars to be used as tax credits for home buyers who fit certain criteria. These home buyers can either be first time home buyers ($100 million allocated) or purchasers of new construction (homes never previously occupied - $100 million). There are income limitations and purchase price limitations. There are also specific dates between which the purchase must occur. Interestingly a purchase date is defined as the date the transfer of title occurs, not the date that the purchase contract is signed by the buyers and sellers. Thus the closing must occur after May 1 , 2010 and prior to December 31, 2010 in order to be eligible for this tax credit which will be spread over a three year period.


The window of opportunity comes as a result of the federal tax credit of $8,000 which has been in effect since November 2009. This program ends June 30 2010, but the purchase must have occurred prior to April 30, 2010 (or May 1, 2010, depending on how you look at the dates). For this federal tax credit, you must either have closed escrow on the property or have proof that a binding purchase contract is in place by April 30, 2010 and transfer of title must occur before June 30 1010.


Hence the window of opportunity.


For the next approximately sixty days, first time home buyers could be eligible for both credits


as These credits overlap until June 30, 2010. The federal tax credit did not have a dollar cap on the allocations, but the California tax credit does. When the $100 million is allocated, the program is over.


If you are planning to purchase a home, this $18,000 may be very helpful.


As an aside, the federal tax credit for repeat buyers who have owned a property for the past eight years and lived in it as a primary residence who meet the income criteria and the window for the purchase and who purchase a home that was never previously occupied, may also be eligible for both credits.


Contact your real estate agent and be serious about purchasing now.

Family Weekend Fun

April 2, 2010

The weather on Saturday, April 3 is predicted to be fair and sunny. A great inducement to pack up the family and enjoy the many family fun days around the Inland Empire. Most of the shopping malls will have an Easter Bunny ready to have his picture taken.

There will also be some photo ops at many of the egg hunts. With the hunts scheduled for different hours of the day, you could probably visit more than one. Of course, there will be other activities at many of these events.

Here are just a few.

Crestline will kick off its day at 8 a.m. with a pancake breakfast. They will have the egg hunt and a duck derby. my understanding is that the egg hunt is free but you will need to purchase the breakfast and the ducks for the derby at Lake Gregory Regional Park.

First Baptist Church of Riverside will have an egg hunt for kids of all ages along with baby animals for petting, the Waster Story will be related and there will be a bubble show to watch.

In downtown Redlands, the Inland Empire Cookie Monsters are hosting a bake sale and a cookie bake-off. The entry fee for the Cookie Bake-Off is $10 per entry. The event is to raise monies for the Share Our Strength organization that is working hard to make sure no child in America grows up hungry.

Families can hunt for eggs at the San Bernardino County Museum. Since the museum has a world renowned collection of bird eggs, this event will be patterned after the typical scavenger hunt and will be available to visitors with their admission ticket.

At Jannie Davis Park on New York street in Redlands the city of Redlands will host the 12th annual Egg Hunt Eggstravaganza and Bike Safety Rodeo beginning at 10 a.m.

And, of course, most importantly CENTURY 21 Lois Lauer Realty will hold an egg hunt for residents of East Highlands Ranch. At 10 a.m. participants will be able to hunt for the 3,000 eggs hidden in and around Ranch Meadows walking track. CENTURY 21 Lois Lauer Realty is the 13th largest CENTURY 21 in the USA and the Office located at 1998 Orange Tree Lane in Redlands is the fourth ranked office in the CENTURY 21 system. Being involved in our communities has been our banner.

April 1, 2010 - Listing and Pending Statistics

April 1, 2010

As is my custom, I check the numbers of properties listed, reported pending or in a back-up position in the IMRMLS.

The back-up category is often used when an offer has been accepted, but there are some contingencies that need to be removed. One contingency in today's real estate market that puts properties into the back-up category is the contingency for lender approval of a short sale. These properties often remain in the back-up category for months. Generally they are no longer available although the seller would consider accepting an offer as a back-up just in case the offer submitted to the lender does not continue to a closed transaction. Sometimes the buyer will withdraw the offer prior to lender acceptance and sometimes the lender will reject the submitted offer.

In any event, here are the statistics as of April 1, 2010. The second ratio number includes the back-up transactions.

Banning/Beaumont...........Listing/478.........Pending/249.........Back-up/119.........Ratio/.521/.77

Bloomington.......................Listing/66...........Pending/86...........Back-up/22...........Ratio/1.30/1.35

Colton..................................Listing/133.........Pending/110.........Back-up/36...........Ratio/.827/1.10

Fontana...............................Listing/492........Pending/641.........Back-up/226.........Ratio/1.30/1.64

Grand Terrace...................Listing/31...........Pending/10...........Back-up/7.............Ratio/.323/.548

Highland.............................Listing/158.........Pending/106.........Back-up/37...........Ratio/.671/.905

Loma Linda........................Lisitng/49...........Pending/42...........Back-up/23...........Ratio/.857/1.33

Mentone.............................Listing/34...........Pending/11............Back-up/3.............Ratio/.324/.412

Moreno Valley...................Listing/528.........Pending/687.........Back-up/272.........Ratio/1.30/1.82

Redlands............................Listing/295.........Pending/101..........Back-up/55..........Ratio/.342/.529

Rialto..................................Listing/222.........Pending/315..........Back-up/79..........Ratio/1.42/1.78

Riverside...........................Listing/1075.......Pending/895..........Back-up/370........Ratio/.786/1.78

San Bernardino................Listing/703..........Pending/552.........Back-up/145.........Ratio/.785/.991

Yucaipa/Calimesa...........Listing/239..........Pending/107..........Back-up/72...........Ratio/.448/.749

The ratio clearly show a much more active market than just one year ago.