Let Us Always Remember

Family Gatherings, Picnics and Memories

May 28, 2010

For 142 Years, Americans have been honoring the men and women who died in the service of their country. The first observance was on May 30, 1868, when flowers were placed on the graves of both Union and Confederate soldiers at Arlington National Cemetery. In 1922, the VFW began selling artificial red paper poppies made by disabled veterans.

Throughout the years, traditional observance of Memorial Day has diminished. It has become one of those three day weekend holidays. It has become a time for picnics, sales at retail stores and the placing of American flags on veterans' graves.

In an effort to re invigorate the original meaning of the holiday, the National Day of Remembrance resolution was passed on December 2000. Since then, Americans are asked "to voluntarily and informally observe in their own way a Moment of remembrance and respect, pausing from whatever they are doing for a moment of silence or listening to 'Taps'." This Moment of remembrance is to take place at 3 p.m. local time.

So, if you are attending the National Orange Show, barbecuing in your back yard or shopping at the mall, please pause and remember those who have served in our armed forces to protect our freedoms.

Some Issues That May Affect Our Housing Market

May 27, 2010

There are a number of factors that have an effect on the buying and selling of single family homes. In 2008, buyers stopped buying, financial institution stopped lending and the booming real estate market of 2005, 2006, and 2007 came to a halt, prices of homes fell. The ensuing collapse of the financial markets and of major financial institution accelerated the decline in housing prices. The desire for home ownership was replaced by fear.

Fast forward to 2010. The low prices of many of the foreclosed properties, coupled with owners attempting to "short sell" prior to a foreclosure has brought buyers back into the market place. Initially, and still a factor, investors began purchasing these homes at bargain basement prices.

Then the federal government and the California State legislature offered tax credits to buyers and forgiveness of debt to upside down homeowners. This brought out prospective buyers and had some impact on the volume of sales. (My data do not reveal a huge impact, but the fact that folks started looking was a valuable stimulus.) Volume now seems fairly close to that of 2005, 2006 - not prices.

Prices are affected by appraisals. In an effort to avoid undue influence on appraisers, the government passed regulations such that lenders and real estate agents could no longer pick the appraiser. Appraisers came from an appraisal management company. Initially they were not always from the area of the subject property and were unfamiliar with local property values. They also never see the inside of the "comparable" sales that they use. Extraordinarily low appraisals are one issue that has a negative effect on sales.

Another issue is the strict standards that have been adopted by lenders and their underwriters for qualifying borrowers. High FICO scores and letters of explanation as to why a prospective buyer is moving have sometimes discouraged seemingly well qualified buyers from purchasing.

If you are turned down for a loan, it can be a real blow to your self respect. Hopefully lender fear will diminish and reasonable criteria will be used again - not the lax criteria of the boom market, but sensible lending practices.

Its National Orange Show Time

May 26, 2010

Tomorrow, May 27, 2010 will be opening day for the ninety-fourth Orange Show in San Bernardino. The Orange Show actually first appeared in San Bernardino in 1889 following several successful "Citrus Fairs " in Riverside. The how opened with the San Bernardino band playing. According to historical records, the event cost to produce was $744.25 and the revenue was $1,180.25. Legend has it that it always rains during the run of the Orange Show. Organizers have held the event in March, then in April then back to March, then back to April and now in May. It will be held from May 27 until May 31. Adult tickets are $5 and children under 12 are free. Tomorrow, the first day, admission, parking, games, rides and food will cost $1 each.

For information about all the events, you can call 909-888-6788 or visit the web at http://www.nosevents.com/

The National Orange Events Center is located at 689 S. E Street.

Foreclosed Properties Still Slow Coming on the Market

May 25, 2010

I checked this week with some of our agents who have been working with lenders for the past several years. For whatever reason the flow of properties from lenders has apparently slowed.

Since the news media is still writing about the large inventory of bank owned properties and of properties in the foreclosure process, it seems a bit strange that these agents are feeling a leveling off or slowdown of their lender listings.

If any of you readers have an insight into why this change in volume is occurring, I would be happy to hear from you. Just click the comment button and enter your opinions.

Here is some speculation on the subject:

1) When a property is scheduled for foreclosure sale on the courthouse steps or what ever public venue, investors are showing up to place bids. At these auctions, properties are often sold below the published bid amount.

2) Short sales are becoming very common and properties are sold prior to lenders actually foreclosing.

3. Or possibly lenders now have so many properties in inventory that they are slow to process and therefore slow to put the property out for sale on a MLS.

These are mere speculations. What do you think?

Phenomenal Interest Rates

May 24, 2010

In the volatile loan morket that we have been experiencing for almost the past 2 years, the present interest rates for real estate loans are certainly phenomenal. A 30 year fixed rate mortgage can be obtained at a 4.750% interest rate from most lenders. There may be lenders offering an even lower rate, but the general going rate is the 4.75%. Even more phenomenal is the fact that an FHA insured loaned is also being quoted at the same rate as the 30 year fixed rate conventional loan. Conforming conventional loans are those in amounts up to $417,000. FHA insured loans are available up to amounts of $355,350.

Yet another remarkable phenomenon is that some lenders are quoting an interest rate of 5.62% for a jumbo loan. Jumbo loans are loans over the $500,000 amount.

Prospective buyers have been sad that they missed the $8000 tax credit or the $10,000 California tax credit, but hopefully these low interest rates will cheer them up. The difference in a monthly principal and interest payment on a $300,000, 30 year fixed rate loan at 4.75% versus 5.5% is $200 per month. This amount can be the difference between a borrower being able to qualify or not being able to qualify.

My message is "Buy now". Home prices are at the low point and combined with the current interest rates, buyers are in a win-win market.

"The Grandest Parade in San Bernardino's History"

May 21, 2010
The bicentennial of the City of San Bernardino is something worth celebrating and the city is going all out. On last Thursday, a new historic market was placed on the corner of I Street and Inland Center Drive next to the centennial marker. While it may be difficult to believe that the city was actually founded in 1810, the activities of the bicentennial celebration will definitely highlight the history of San Bernardino.
Tomorrow, May 22, you will have the opportunity to attend the "grandest parade" in the history of San Bernardino. At 4 p.m. from Seventh and E streets to Meadowbrook Park, there will be floats, bands, antique cars, horse drawn vehicles and history re-enactors in full regalia. There are more than 80 entries which is a really large parade. (The Rose Parade usually has only 90 entries.)
In 1810 for the city's centennial celebration, there was a parade as part of a five day celebration.
At that time, there was a Floral Parade, a Livestock Parade, an Automobile parade and an Industrial Parade.
Prior to the parade there will be from non to 9 p.m. there will be a festival at Meadowbrook Park, Third Street and Mt. View Avenue.
For the parade route you can go to http://www.sbsun.com/
Tomorrow is definitely a party day for the city of San Bernardino.

Is Your Garden Fountain Producing Slimy Algae?

May 20, 2010

More and more homes have added garden fountains to their landscape designs. Personally, we added one several years ago, and we do love it. However, there is a maintenance issue that was a surprise. The fountain bubbles away nicely, but over time, it developed long strings of slimy algae.

Our maintenance involved draining the fountain, taking apart the pump, scrubbing the exterior and putting it back together.

In my various searches for fountain maintenance, I found some great ideas in a book called "Cleaning Magic". It is a Jerry Baker Home Hints book which is full of many, many wonderful cleaning tricks.

From this book, I share with you two of his tricks for algae infested fountains.

"Add one quarter cup of lemon juice or white vinegar to the water to inhibit the growth of the green slime. Or use one quarter cup of Listerine instead ...."

"Copper stops algae from growing, so empty your jar of copper pennies into the bottom of your fountain...." Not only can you improve the water in your fountain, but you can find a use for all those pennies you have in a bowl on your dresser top.

Her's to algae free fountains!

A Customized Home is Not Always Rewarded in the Marketplace

May 19, 2010

You have a nice home in a nice neighborhood. During the time that you have owned it, you have added a pool, re roofed it, remodeled the kitchen, replaced the windows, and added a koi pond.

For whatever reasons, you need to sell YOUR home.

You have carefully kept a list of each improvement or repair and the cost of the improvement. You are certain that because of the quality of the materials you chose, you have added real value to YOUR home.

No matter that you selected the top brand of replacement windows versus the run of the mill standard ones that are constantly advertised on the radio, buyers do give added value for replacement windows and generally, they do appreciate the top name brand, but they probably

will not feel that these windows have made your home more valuable .

That beautiful swimming pool and spa that was so carefully designed and looks like something out of House Beautiful may make your home sell more quickly, but again, not for much more than a similar property with a more standard pool and spa.

The kitchen appliances may be all the top name brands, but again, they may make the house sell more quickly, but don't expect to recoup the cost.

And so it goes. Remember that you made these improvements because they fit your lifestyle, but once you list your property for sell, remember that it becomes a "commodity". Be careful to price it competitively and not at a price that reflects the dollars you have put into it. Buyers comparison shop and if they can get the amenities that are important to them, they will purchase the one that is the most competitively priced. They will ooh and aah over the beauty and charm of YOUR home, but they will purchase the better priced home.

So watch your emotional attachment and listen to your agent when the comparative market analysis is presented.

Some Spring Cleaning Guides

May 18, 2010

I came across an interesting page in the AARP magazine for May. It was a diagram entitled "Spring Cleaning". It contained some useful suggestions of things that would be great for disposable. Since I tend to fit the description of the "collector" the article addresses, it had some real substance for me. I also thought that it had some good suggestions for cleaning out those old caches of papers consigned to a safe place for future use.

Staging, i.e., making your home as crisp and clean as possible, is important when you plan to sell, but getting rid of "stuff" can keep your home environment more enjoyable at any time.

Here are some of the useful "to-do" chores.

1. Magazines more than 3 months old - Toss

2. Old receipts clogging a kitchen or desk drawer can be discarded - shredded, if necessary.

3. Twisty ties, random paper clips, safety pins and rubber bands can be put in proper places or tossed.

4. Loose change - use it.

5. Makeup in shades you no longer wear. - Toss

6. Plastic garden pots - Toss - Usually can be put in the recycle bin.

7. Keys that seem to have no locks in which they can be used. Toss - Probably can be recycled.

8. A single sock, glove or earring - Toss

9. Bills more than one year old - Shred

10. Clothes that no longer fit. - Give to your favorite charity

The article referred to checking out http://bit.ly/GoodToss for recycling tips. I tried it and it sent me to the Real Simple web site. Some great information.

Median Home Prices, January thorugh April 2010

May 17, 2010

In the past, I have listed the median prices for the month just past compared to the years 2003 though 2010. This month I decided to change what I am reporting. I thought it would be interesting to chart the course of median prices for each month this year.

Judge for yourself, but it seems to me that median prices have remained in a very tight range in the fourteen communities that I track,

Banning/Beaumont...........Jan./169,000.......Feb./165,000........Mar./185,000......Apr./165,000

Bloomington.......................Jan./125,000.......Feb./110,000........Mar./150,000......Apr./150,000

Colton.................................Jan./97,500..........Feb./125,000........Mar./199,000......Apr./128,000

Fontana..............................Jan./190,000.......Feb./200,000.......Mar./200,000.....Apr./215,000

Grand Terrace..................Jan./236,000.......Feb./199,900........Mar./249,900......Apr./200,000

Highland............................Jan./163,500........Feb./150,000.......Mar./160,000......Apr./162,000

Loma Linda.......................Jan./275,000.......Feb./240,000.......Mar./175,000.......Apr./240,000

Mentone............................Jan./200,000.......Feb./225,000.......Mar./200,000......Apr./190,000

Moreno Valley..................Jan./150,000.......Feb./149,000........Mar./150,000......Apr./157,000

Redlands...........................Jan./210,000.......Feb./207,000........Mar./210,000......Apr./227,000

Rialto.................................Jan./145,000.......Feb./144,000........Mar./155,000.......Apr./155,000

Riverside..........................Jan./185,000.......Feb./200,000........Mar./190,000.......Apr./190,000

San Bernardino...............Jan./95,000.........Feb./92,000...........Mar./90,000.........Apr./110,000

Yucaipa/Calimesa..........Jan./160,000.......Feb./195,000.........Mar./199,000.......Apr./179,000

This is not a scientific compilation of median prices. I simply take the number of reported closed transactions, divide by 2 and the price of the property at that halfway point is the price I use as the median. These are only the closed sales that are reported through the IMRMLS and the numbers do not include new construction nor any properties that may have been sold by owners directly to buyers.

Music Around The Inland Empire This Weekend

May 14, 2010

This weekend you will have a choice of musical genres - from rock to classical.

Opening at 6 p.m. this evening, the 8th annual Joshua Tree Music Festival at the Joshua Tree Lake Campground, 2601 Sunfair Road in Joshua Tree, visitors will be treated to the diverse dance sounds of the Stanton Warriors, the alt rock and electronica music of the Mexican Institute of Sound, the mixed musical genres of Fort Knox Five and many other acts. The cost is $120 for a three day pass, $50 for Friday only and and Sunday only passes and $70 for the Saturday only pass. It is $15 per person per night for camping at the campground. For information you can call 877-327-6265 or http://www.joshuatreemusicfestival.com/

At 8 p.m Saturday evening, the Redlands Symphony will be presenting the last concert of the season. It is an all Gershwin concert and will feature pianist Jose Menor. Tickets range from $15 to $60. For information, call 909-748-8018.

On Sunday, at 3 p.m., at the Merton E. Hill Auditorium, Chaffey High School, 211 W. Fifth Street in Ontario, The Western Society of Chamber Music is hosting a concert entitle "The Voice of the Viola". This is a benefit concert presented to raise funds for the survival of the group. For information call 909-445-1011 or http://www.westernsocietyofchambermusic.net/

Another musical choice will be a concert by the Inland Master Chorale which is celebrating 30 years of performances. Performances will be Saturday at 8 p. and Sunday at 3 p.m. Tickets at the door will be $18 for adults and $8 for students and children. You can order tickets by calling 909-798-4462. Tickets purchased in advance are $16.

If none of these genres of music are of interest to you, The Redlands Shakespeare Festival is being presented at the Redlands Bowl. For information go to http://www.redlandsshakespearefestival.com/

Day Trips Around the Inland Empire

May 13, 2010


I was reminded yesterday about the great scenery to be found in our two county area known as the Inland Empire. The Press-Enterprise had an article in their May 12 newspaper that was entitled "Winter recharges natural wonders." The article cited the many waterfalls that can be found in San Bernardino and Riverside counties. Because we had "decent rain and snowfall" this winter, these falls are worth a trip to view the cascading water. The two tallest waterfalls in Southern California are located in San Bernardino County. The Big Falls in Forest Falls at more than 600 feet and Bonita Falls at almost 400 feet located in the Lytle Creek area.


Other falls that are presently flowing with water include:


Heart Rock Falls -22 feet of falling water with a heart shaped rock crevice located in the Valley of Enchantment near Crestline


Tahquitz Falls, a 60 foot falls located on a Native American sacred site in the Palm Springs area


The Seven Sisters which is only a 10 foot falls adjacent to a number of stone pools and it is also located near Palm Springs.


If you do decide to visit these wonderful natural sites, remember to be careful as the rocks can be slippery and it is probably best to view them from a bit of a distance.

The Traditional Reasons that a Property Doesn't Sell

May 12, 2010

For at least the 30+ years that I have been selling real estate and attending seminars about selling real estate, the instructors have used the same five criteria for why a property isn't selling. Perhaps present frustrated sellers (and their agents) need to revisit these criteria.

Usually, when a house has been on the market for longer than 100 days, a review of these five criteria may be enlightening.They are, in alphabetical order: accessibility, condition, location, marketing and price.

Accessibility: Do agents have to call your agent to make an appointment? Do they have to pick up a key at the listing agent's office? Do the agents gave to make an appointment with you and you will be there to let them in? Are the agents using a combo box that they must call the listing agent to get the combo? Are the agents using a Supra lockbox which they can use after they leave a message about when they will be showing?

If the answer is yes to the last question, a seller has met the accessibility criteria.

Condition: Is your property crisp and clean? Have you removed all the items that you do not need for basic living? Have you packed up personal items such as family photos and collections? Have you "staged" the property? Are your shrubs and trees trimmed?

If you answered yes to all of these, you meet the condition criteria.

Location: Obviously you cant change the location of your property, but it is important to know that location can effect the desirability of your property. When you are reviewing a comparable property analysis, compare your property with those in similar locations.

Marketing: Is your property on the various real estate web sites? Is it advertised in the print media (newspapers)? Did your agent do a virtual tour? If all of these marketing tools were used, you meet the marketing criteria.

Price: Did you review a market analysis with your agent? Did you agree on a price based on the high end or the low end of the market analysis? Were you willing to revisit the price and make adjustments if market prices were changing - either up or down?

Price is the most difficult criteria to judge, because each property is unique. However, there is always a range, both high and low, where buyers will act. If the price may seem right on, but no one made an offer, for sellers who want to sell, lowering the price is what has to be done if the property is to sell.

The current market is particularly price driven. Buyers are viewing properties on the web and in a short time, they make a judgement as to whether a property is listed high, low or reasonably close to present value.

If a property meets the first four criteria, all the extra "prettying up" will not bring an offer. A that is very competitive (5-10% below a current market analysis) will stimulate buyer's interest.

In almost all instances, it will work.

Closed Sales for the Month of April 2010

May 11, 2010

Here are the numbers for the closed sales of single family properties as reported in the IMRMLS for the month of April 2010-2003.

Banning/Beaumont.............2010/136........2009/117........2008/90.........2007/53

...............................................2006/76..........2005/93..........2004/90.........2003/73

Bloomngton..........................2010/37..........2009/40..........2008/8...........2007/4

...............................................2006/26.........2005/19...........2004/19.........2003/22

Colton....................................2010/47.........2009/73...........2008/17.........2007/21

...............................................2006/46.........2005/45..........2004/35.........2003/45

Fontana................................2010/265.......2009/422........2008/146.......2007/106

..............................................2006/244.......2005/286........2004/210.......2003/245

Grand Terrace....................2010/9...........2009/12...........2008/5............2007/5

..............................................2006/7...........2005/4.............2004/8............2003/4

Highland..............................2010/58.........2009/65...........2008/31..........2007/39

..............................................2006/49.........2005/70..........2004/63..........2003/74

Loma Linda.........................2010/21.........2009/10...........2008/9............2007/12

..............................................2006/10.........2005/15..........2004/11...........2003/15

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

..............................................2006/10.........2005/7............2004/8............2003/5

Moreno Valley....................2010/307.......2009/459.......2008/183........2007/87

..............................................2006/301.......2005/264.......2004/267........2003/200

Redlands.............................2010/47..........2009/52..........2008/55..........2007/62

.............................................2006/60..........2005/74..........2004/79..........2003/81

Rialto...................................2010/144........2009/168........2008/54..........2007/39

.............................................2006/105........2005/128........2004/95..........2003/113

Riverside............................2010/445.........2009/503.......2008/246........2007/202

.............................................2006/414.........2005/443.......2004/399........2003/338

San Bernardino..................2010/253........2009/376........2008/101........2007/92

.............................................2006/227.........2005/227........2004/187.......2003/254

Yucaipa/Calimesa.............2010/64...........2009/55..........2008/44.........2007/43

.............................................2006/54..........2005/80..........2006/64..........2003/65

It is fairly easy to see the decline in numbers in many communities in2006 and 2007. The numbers picked up in 2009 and seem to have dropped back to a range that existed before the big rise in prices. Interestingly the number of closed sales in April do not seem to indicate a huge impact that was expected from the tax credits. It will be interesting to watch the numbers as these stimulus credits go away.

Lisitngs and Pendings - May 10, 2010 IMRMLS

May 10, 2010

Here are the numbers and ratios of current active listings to pending sales as reported through the IMRMLS.

Banning/Beaumont..........Lisitings/493.........Pendings/273..........Ratio/.554.........Back-up/95

Bloomington......................Lisitngs/66............Pendings/75.............Ratio/1.136.......Back-up/22

Colton.................................Lisitngs/116..........Pendings/108..........Ratio/.931.........Back-up/48

Fontana..............................Listings/554.........Pendings/676...........Ratio/1.220......Back-up/236

Grand Terrace..................Lisitngs/22............Pendings/17.............Ratio/.773.........Back-up/6

Highland............................Listings/154...........Pendings/116..........Ratio/.753.........Back-up/46

Loma Linda.......................Listings/45............Pendings/43............Ratio/.956.........Back-up/22

Mentone............................Listings/32............Pendings/10............Ratio/.313.........Back-up/4

Moreno Valley..................Listings/548..........Pendings/706.........Ratio/1.288.......Back-up/271

Redlands...........................Listings/288..........Pendings/133..........Ratio/.462.........Back-up/64

Rialto.................................Listings/214..........Pendings/336..........Ratio/1.570.......Back-up/80

Riverside..........................Lisitngs/1076.........Pendings/907.........Ratio/.843.........Back-up/403

San Bernardino...............Listings/667............Pendings/617.........Ratio/.925.........Back-up/138

Yucaipa/Calimesa...........Listings/256...........Pendings/120.........Ratio/.469.........Back-up/68

If I had included those properties that are listed in the "Back-up" category, the ratios would be higher. Properties are usually put in the "back-up" category when there is a significant contingency such as needing lender approval.