Some Things Never Change

June 30, 2010


It is a changing world. For the past two years, "Change" has been the slogan for politicians, environonmentalists, governments, and for real estate agents. Since my profession is real estate, I am most familiar with the changes occurring in the way we perform our duties. Facebook, You Tube, Virtual Tours, Web sites, Blogs, all sorts of new technology is offered to market listings and to track transactions. Real estate agents are told to "get with the 21st century or they will be shortly out of business. No doubt adapting to this "Internet" world is necessary, but I will suggest that using all the new bells and whistles dos not change a very basic aspect of selling real estate: pricing the property correctly. All the home staging in the world will not sell an overpriced listing.


Here are a few of the aspects of selling that never change:


A property needs to be perceived as a good value.


Houses that are priced right (competitively) will sell.


Houses that are overpriced will stagnate on the market.


Location still matters.

Loan Processing has Changed

June 29, 2010

Remember the old saying: If a loan applicant could fog a mirror, he/she would be approved for a loan. Then came the housing bust and the crash of the financial markets. Like many corrective regulations, the present loan approval requirements may be the result of over reaction to the laxity of the process in the past.

Just to review. Many loans are originated and packaged by mortgage brokers/bankers. These loans are then sold to an investor - usually Fannie Mae or Freddie Mac. If Fannie or Freddie reject a loan package, the mortgage broker must keep it in inventory thus limiting the mortgage broker's/banker's ability to process new loans.

Today, prospective borrower completes a detailed loan application. It is important that the borrower list all credit liabilities (credit cards, car loans, student loans, other mortgages, etc.)

The lender will run a credit check to verify the information furnished as well as obtain the borrower's FICO scores, usually from more than one credit agency. If the information obtained by the lender passes muster, a letter of loan approval subject to appraisal may then be issued. Hooray ! the borrower, the seller and the agents thinks they are on the way to a successful transaction .

However, in today's world there are more steps to the process of obtaining a loan. An underwriter will look at the package and may question some of the items. For instance: Why are you moving just a mile and a half from your present home? Explain. (A red flag that suggest the borrower is really an investor. )

The underwriter will also review the appraisal when it comes back from the appraisal service. If the desk reviewer believes that some of the comparables are not sufficiently comparable, the review has the power to change the appraisal.

If a borrower successfully passes all these hoops, the borrower must be well counseled ahead of the application for a loan that he/she should not make large (or maybe even small purchases) until the transaction is closed. Any new liabilities could change the FICO or the debt-to-income ratio.

Obtaining loan approval these days requires a clear understanding of the new underwriting rules.

"The Hills are Alive with the Sound of Music"

June 28, 2010

Friday night the Redlands Community Music Association held the first concert of their 87th season. Since 1924, folks can come to the Redlands Bowl venue and enjoy the beautiful setting and the beautiful music. This summer music festival is the oldest open air music festival that is presented with no charge to the attendees. Yes, there is a free-will donation collected during intermission, but it is just that "free-will".

I was in attendance on Friday night and even after almost 40 years of attending, I was moved by the event. As has become traditional, the first concert is presented by the Symphony orchestra under the leadership of Frank Fetta. Solos were sung by Anthony Kearns, Ireland' finest tenor and a member of the Irish Tenor trio. His voice was amazing to hear!.

Looking across an intergenerational audience that filled the bowl site and listening to Symphony-Songs-Cinema. From the playing of the Star Spangled Banner to the last note, it was truly an evening that touched my heart.

How fortunate we are to be able to hear world class musicians perform under the stars. These concerts are held Tuesdays and Fridays from June 25 Through August 20. Next Tuesday will be a concert by the winners of the 59th annual young artists auditions. From a member of the selection committee, I have heard that these young artists will astound you with there talent.

So put Tuesdays and Fridays on your calendar, bring your picnic and enjoy.

Big Bear is the Place to be This Weekend

June 25, 2010

This will be a great weekend to go to Big Bear Valley. The annual home tour sponsored by Soroptimist International of Big Bear Valley will feature four unique properties. These are all homes of full time residents and represent a variety of style, design and decorating ideas according to Helen Walsh who co chairs the Home Tour committee with Yvonne Phillips and Vi Holiday. All of the proceeds from the tour will be distributed to Big Bear charities benefiting women and children. Tickets are $25 (adults only). They may be purchased at various locations in Big Bear Lake including the Chamber of Commerce. The homes will be open from 9 a.m. to 3 p.m. on Saturday.

When you complete the tour you can find a good spot for a bite to eat and await the evening concert entitled "The Long Run, Experience the Eagles". This concert begins at 7 p.m. on the Discovery Center stage. 40971 North Shore Drive (Highway 38) in Fawnskin. The cost is $20 for adults, $10 for teens 13 to 18. Children 12 and under are free. Beach seating is available on a first come, first-seated basis with beach chairs required for open, casual seating; picnics are welcome but no outside beverages will be allowed. For more information http://www.nationalforestassociation.org/

The nonprofit National Forest Association is a partner to the U.S. Forest Service, committed to conservation, restoration, environmental education and responsible recreation.

What a great opportunity to experience the mountain community and to help support worthwhile charities.

Has the Media Confused You ?

June 24, 2010

One week housing prices are up. Another week housing volume is down. And this morning it is "Housing market woes" in the Sun newspaper.The sub title did say that Inland Empire numbers were up slightly.

Many news reporters yesterday were bemoaning the decline in new home sales as a sign that without stimulus monies, the real estate market was once more in a "dip". I am not a new home sales agent and I do not track that data. However, could it not be that the number of new homes selling is declining because the number of new homes being built is also declining. Builders are not constructing new homes. They are selling their already permitted and under construction properties. As fewer homes are on the market, my logic says that the number of sales will decline.

So much for an area that I do not track.

As for the resale market in the 14 communities that I do track, the volume in May was only significantly off in 2 of the communities and then only by 15 sales. 9 of the 14 communities actually hit their peak volume in 2009 which could make the 2010 volume somewhat less as prices stabilized. The volume in 11 of the communities is better in 2010 than it was in 2003. A reminder - these numbers reflect closed sales as reported in the IMRMLS.

Since I am not an economist nor do I have a crystal ball, I shall continue to report numbers and allow my readers to draw their own conclusions about the present state of the real estate market in our local area.

It's a Hot Time - Keep Air Conditioner at It's Best

June 23, 2010



Now that the hot days of summer are upon is, it is a good idea to do some air conditioner maintenance.



1. Clean or replace your heating and air conditioning system filter. A good timetable to follow is a three month change of filter. If you have an indoor pet, once a month would keep your pet's hair and dander from circulating throughout your home..



2. Have your heating and cooling system inspected regularly by a licensed technician. Gas and electric systems should be looked at at least every two years.



3.The regular inspection should include vacuuming the heater vents and return air grills. A two month schedule for removing vents and grills and vacuuming them or cleaning them will promote more efficient results from your system.



4. If your air conditioning compressor is exposed to direct sunlight, you can boost it's performance by building a lattice work fence around it. Don't allow grass, flowers or shrubs to grow to close as they will cut the air circulating around it.



6. Window and wall air conditioning units need attention, too. Get your owner's manual and learn how to clean the fan blades. Check the caulking and weather stripping around the unit. Oil the motor and fan. Clean the filter every month during the summer when the unit is being used.



Last, don't think that turning the thermostat way low when you first turn it on will cool the house faster. It won't. It will just waste energy.

Summer Has Arrived - Better Check Your Lawn and GArden

June 22, 2010

Yesterday was the official beginning of the summer season. Hot days and cool nights are characteristic of our Inland Southern California weather. It is time to check out your lawn and your garden.

Irrigation systems are necessary to keep both lawn and garden thriving. As I drive around I note that there are lawns that are beginning to look a tad brown. I contacted one of my sellers and he said that he needed to up the amount of time that his sprinklers run. It is a good idea to check the automatic timer for your watering systems, but it is also a good time to take a walk around your property and make certain that the sprinkler heads are functioning and delivering water where they should. It might also be wise to contact a professional irrigation contractor and have your system checked out. A professional may have ideas for improving water delivery and limiting use.

Since we must all be water conscious, properly functioning systems are important so that water use is effective and not wasteful.

Many folks have switched to bubblers to irrigate plants and trees. Again, it is a good idea to check out the functioning of these systems. Are they delivering water properly to the roots.

Of course irrigation is not the only thing to check. Insects may also be thriving in your lawn and on your ornamental plants. A spray bottle with thinned detergent is a non toxic way to rid plants of some of these destructive insects. Your local garden nursery will also have information on ways to keep your lawn and garden thriving.

It is sad enough to see foreclosed properties with dead lawns, let's keep our property attractive with well kept lawns and well maintained gardens.

From C.A.R., The Green Tip of the Week

June 21, 2010

It seems that when our summer season brings 90 degree weather , it also brings out those pesky ants. Many of us either have a monthly pest control service or we buy those ant spikes and but them in the ground around our homes. The California Association of Realtors offered some information on natural deterrents that are safe and effective.

One natural deterrent is dry Cream of Wheat which the ants cannot digest and is lethal to them. Another is powdered borax mixed with maple syrup. How ever this mixture may also be dangerous to pets and children and should not be used if you have either children or pets. Stick with the dry Cream of Wheat..

If your aim is to just deter the ants from coming inside, sprinkle substances that ants do not like to cross. Ground black pepper, chalk, cinnamon sprinkled near doors or on the ground where you see trails of ants and they will choose another path.

Myles H Bader has published a book entitled "1001 All-Natural Solutions to Pest Free Property.

This book has ideas for deterring all sorts of pests.

The Inland Empire's Answer to Branson MO

June 18, 2010

It's here for the 34th time - Huck Finn's Jubilee. Each year, at the Mohave Narrows Regional Park, folks come to enjoy music, fishing, arts, crafts, food and the nature preserve that ressembles the parkland along the Mississippi River.

Jubilee hours are Friday and Saturday from 7 a.m. to 11 p.m. and Sunday from 7 a.m. to 8 p.m. Daily admission is $20 (Friday $15), Youth ages 6 thru 12 are $% each day and under 6 are free.

This is a great old time country and Blue grass event. The list of performers is awesome.

Don't know where the Mojave Narrows Regional Park is? It is easy to find. Take Bear Valley Road exit off I15, then go east to Ridgecrest Avenue and turn north to the park.

For additional information you can call 909-780-8810 or go to http://www.huckfinn.com/

In the Inland Empire the "Blue" Jacaranda Brightens the June Gloom

June 17, 2010

Here we are in mid June and the marine layer has drifted inland and starts our mornings with the foggy "June Gloom". But we are blessed by the "Blue" Jacaranda trees. (I always thought that the jacaranda blossoms were lilac in color, but according to Wikipedia, the tree is know as the "Blue" jacaranda.

The tree is a native of South America, but has been widely transplanted to other continents. Africa, Australia and the south western portion of the United States. Folks who visit us this time of year are awed by the beauty of this tree.

In Australia, people sing a Christmas song about Jacaranda trees. In South Africa, Pretoria is popularly known as Jacaranda City.

While many homeowners complain that it is a messy tree, there is something totally fairy tale like about the blossoms and about the "blue" carpet under the trees.

While the blossoming period is relatively short, when it is upon us, it is one of the joys of our environment.

If You Read the Morning Headlines...

June 16, 2010



When I opened the Los Angeles Times newspaper this morning. in bold print, was the headline: "Southland hone prices jump 22%".


The article refers to the median home price in Southern California. Since I had just posted the May median prices on June 8 and the January thru May median prices on June 9, I was intrigued by this headline. Going back and reviewing my postings of the median prices for the 14 communities in the San Bernardino/Riverside counties, I did find that there were, in fact. some communities that did post a 20% increase in the median price in May 2010 over May 2009: notably, Colton, Moreno Valley, Rialto, Riverside and San Bernardino.


A further read of the LA Times article did indicate that the May jump in median prices was influenced by some of the coastal counties. As I checked my figures, I noted that the median price from 2008-2009 had dropped substantially. What one commentator in the Riverside Press noted this morning was that the exceptionally low median prices of 2009 made the median prices show improvement. Again, my data indicates that the median prices in the 14 communities that I tract has not recovered to the 2008 levels.



Chapman University Economist Esmael Adibi cautioned that the rise in median prices does not mean that homeowners in Riverside and San Bernardino counties have realized double digit appreciation in the last 12 months.

For me, the data points to a market that is adjusting after a huge decline in values and in volume.

"It's in Their DNA" Also Our, Your, His, Hers, My

June 15, 2010

Sometimes as I listen to TV interviews, I notice that certain phrases are being repeated. Sunday, watching Meet the Press, The phrase, "It's in their DNA..."seemed to be used by more than one interviewed person. DNA is clearly a part of everyone's makeup and researchers continue to search for the parts of our DNA chain that contain certain diseases. The goal of this research seems to be to save lives by altering these "defective: parts of the DNA chain.

The remark that "It's in their DNA" seems to attribute certain behaviors to someone's DNA. Does this mean that the behavior is innate and unchangeable? It seems that the use of the phrase was attributing the DNA behavior to certain individuals, not to all of humankind.

Perhaps the reason that residents of Southern California need to drive cars rather than take mass transit is the result of our DNA. Perhaps our preference for certain foods is in our DNA. Are these behaviors really part of our DNA? As a real estate agent, I certainly hope that owning one's own home is in our DNA.

Flag Day - Are You flying a USA Flag?

June 14, 2010

Why is Flag Day noted on many calendars? It is not a national holiday, but June 14 is the day Americans honor their flag. While June 14 was officially named as a day to honor the flag by President Woodrow Wilson in 1916, it was not until 1949 that Harry S. Truman signed an official Congressional Resolution marking the day.

Why June 14? The Stars and Stripes made its debt on June 14, 1777.

In Redlands, it is great to see many homes with white flag poles flying the American Flag in the front yard. The installing of these flags is the Old Glory Flag Fundraising Project of Boy Scout Troop#3. For just $30 per year, Troop #3 will install in your yard a 3'x5' flag on an 8' pole. They do this installation for 7 U.S. holidays. They put the flags up early in the morning and take them down before dark in the evening.

If you want additional information you can go to http://www.troop3greenspot.com/ and click on Flags.

Lavender Festival

June 11, 2010

For the next two weekends, June 12 to 13 and 19 to 20, 2010 from 10 a.m. to 6 p.m. Highland Springs Resort and the 123 Farm will be hosting the sixth annual Lavender Festival. It is an amazing sight to see the rows and rows of cultivated lavender plants when these purple shrubs are in full bloom.

There will be many festival activities including hay rides, tours of the lavender fields, gardening workshops and an organic marketplace.

At the Lavender Green Cafe you can sample Lavender lattes, lavender honey ice cream, lavender lemonade and lavender beef brisket.

The Highland Springs Resort is located at 10600 Highland Springs Avenue in Cherry Valley. Take the Highland Springs exit off Interstate 10. It will be worth the trip.

For more information call 951-845-1151 or http://www.hsresort.com/

Making Your Move Easier

June 10, 2010

I received a nice advertising piece from an insurance agent and thought I would pass some of the suggestions it made for making a move from one location to another less complicated.

1. Call a mover as soon as you know the date your escrow is scheduled to close. (June, July and August are major moving months.

1. One month prior to moving collect your important documents (if you do not already have them in a safe accessible place).

2. Use up as much food in the freezer as you possibly can.

3. If the mover is not packing you, get boxes. (moving companies often sell both new and used boxes.)

4. About 2 weeks before you are scheduled to move, send a change of address notification to the post office and to any magazines to which you subscribe.

5. Make arrangements to transfer your bank accounts if you are moving to a different area.

6. Make arrangements to transfer the utilities.

7. Be present when the movers are loading the van. They list each piece and write down the condition. You want to check that the condition is accurate.

8. Make sure the mover has the correct address and check when the mover expect to reach that destination.

Moves can be traumatic. Preparation and a check list can alleviate much of the stress.

January thru May 2010- Median Prices

June 9, 2010


Yesterday I posted the median prices for the years 2010-2003 in the 14 communities that I track. Today I am posting the median prices in these 14 communities for this year to date. My caveat is that I obtain these prices from the IMRMLS by selecting the property that is at the halfway point among those properties reported as "sold".


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


Bloomington.................Jan/135,000.....Feb/110,000.....Mar/150,000.....Apr/150,000.....May/155,000


Colton............................Jan/97,500.......Feb/125,000.....Mar/100,000.....Apr/128,000.....May/130,000


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


Grand Terrace.........................Jan/236,000.....Feb/199,900.....Mar/249,900......Apr/200,000....May/187,000


Highland.......................Jan/163,500......Feb/150,000....Mar/160,000......Apr/162,000.....May/173,500


Loma Linda............................Jan/275,000.....Feb/240,000....Mar/175,000......Apr/240,000.....May/203,200


Mentone......................Jan/200,000....Feb/225,000.....Mar/200,000.....Apr/190,000.....May/220,000


Moreno Valley..........................Jan/150,000.....Feb/199,000.....Mar/150,000.....Apr/157,000......May/163,000


Redlands....................Jan/210,000.....Feb/207,000.....Mar/210,000.....Apr/227,000.....May/217.000


Rialto..........................Jan/145,000.....Feb/144,000.....Mar/155,000.....Apr/155,000......May/164,901


Riverside...................Jan/185,000.....Feb/200,000.....Mar/190,000.....Apr/190,000.....May/215,000


San Bernardino...............Jan/95,000.......Feb/92,000........Mar/90,000.......Apr/110,000.....May/107,000


Yucaipa/Calimesa...Jan/160,000....Feb/195,000.......Mar/199,000.....Apr/179,000.....May/209,750


If these numbers are indicative of anything, it is probably that we are bumping along the bottom of this real estate cycle. If the future resembles the past, we will be in these price ranges for a while as the market absorbs the foreclosures and short sales.

Median prices for May 2010-2003

June 8, 2010


The median prices posted here are derived from the closed transactions reported though the IMRMLS. They are selected by dividing the number of closed transactions by 2 and posting the price of the transaction at that halfway point. Not scientific, but representative of what is occurring and what has occurred as far as median prices in the 14 communities that I track.


Banning/Beaumont......2010/185,000......2009/170,000......2008/230,000......2007/300,000

........................................2006/335,500......2005/270,000......2004/203.000......2003/142,000

Bloomington..................2010/155,000......2009/95,000........2008/225,000.......2007/387,000

........................................2006/375,000......2005/323,000......2004/230,000......2003/159,900

Colton.............................2010/130,000......2009/100,000......2008/199,900......2007/340,000

........................................2006/332,000......2005/295,000......2004/180,000......2003/160,000

Fontana.........................2010/200,000......2009/175,000......2008/303,000.......2007/420,000

.......................................2006/415,000......2005/363,000.......2004/285,000.......2003/208,000

Grand Terrace.............2010/187,000......2009/200,000......2008/265,000.......2007/340,000

.......................................2006/382,000......2005/340,000......2004/270,777........2003/210,000

Highland.......................2010/173,500.......2009/160,000......2008/229,000.......2007/380,000

.......................................2006/357,500......2005/315,000......2004/249,950........2003/185,900

Loma Linda..................2010/203,200......2009/203/500......2008/325,000......2007/415,000

.......................................2006/379,000......2005/324,000......2004/280,000.......2003/249,000

Mentone.......................2010/220,000......2009/192,000......2008/255,000.......2007/355,000

.......................................2006/353,000......2005/298,000......2004/182,000......2003/170,000

Moreno Valley.............2010/163,000......2009/130,000......2008/208,000......2007/355,000

......................................2006/382,000......2005/224,000......2004/287,000......2003/180,000

Redlands......................2010/217,000......2009/233,000......2008/316,950.......2007/420,000

......................................2006/365,000......2005/350,000......2004/290,000......2003/229,900

Rialto............................2010/164,901......2009/130,000.......2008/225,000.......2007/373,000

......................................2006/380,000.....2005/329,900.......2oo4/262,500........2003/182,000

Riverside.....................2010/215,000......2009/170,000......2008/279,000........2007/400,000

......................................2006/415,000......2005/379,000......2004/324,900.......2003/215,000

San Bernardino..........2010/107,000.......2009/72,000........2008/156,000.......2007/300,000

.....................................2006/310,000......2005/265,000......2004/180,000.......2003/135,000

Yucaipa/Calimesa......2010/209,750......2009/211,000......2008/254,500.......2007/400,000

......................................2006/292,000......2005/339,900.....2004/265,000.......2003/195,000

2005,2006,2007 were are peak years for May's median price. since then the median price has drooped back to 2003 levels. Tomorrow, I will post the median levels for January through May of 2010 so you can perhaps check the direction of the real estate market in terms of median prices.

Statistics for Number of Closed Properties - May 2010-2003

June 7, 2010

The number of sold properties seems to be entering a normal range. If you check out the changes in the numbers, they seem to reflect the wild swings of the boom-bust market.

Here are the numbers.

Banning/Beaumont......2010/139......2009/141......2008/95......2007/56......2006/94

........................................2005/101......2004/92........2003/66

Bloomington..................2010/31........2009/38........2008/12......2007/8.........2006/31

........................................2005/19........2004/16........2003/22

Colton............................2010/36.........2009/65.......2008/19.......2007/25......2006/41

.......................................2005/43.........2004/31.......2003/41

Fontana........................2010/261.......2009/377......2008/196.....2007/96......2006/240

.......................................2005/254......2004/203......2003/225

Grand Terrace.............2010/12........2009/9...........2008/10......2007/7.........2006/11

.......................................2005/9..........2004/5...........2003/9

Highland.......................2010/51........2009/55.........2008/46......2007/39.......2006/97

.......................................2005/87........2004/56........2003/79

Loma Linda..................2010/22........2009/13........2008/21......2007/10........2006/21

.......................................2005/20.......2004/22........2003/9

Mentone.......................2010/6..........2009/6..........2008/6.........2007/10........2006/8

.......................................2005/11........2004/8..........2003/8

Moreno Valley.............2010/294......2009/402.....2008/277.....2007/93.......2006/300

.......................................2005/264......2004/237.....2003/259

Redlands.......................2010/61........2009/53.......2008/41.......2007/47......2006/75

.......................................2005/79........2004/83.......2003/70

Rialto.............................2010/120......2009/150.....2008/83......2007/45........2006/118

.......................................2005/116.......2004/100.....2003/116

Riverside......................2010/450......2009/495......2008/340......2007/231....2006/431

......................................2005/464.......2004/364......2003/403

San Bernardino...........2010/235.......2009/352......2008/178.......2007/106.....2006/265

......................................2005/231.......2004/212......2003/257

Yucaipa/Calimesa.......2010/63........2009/55........2008/44.........2007/44........2006/61

.......................................2005/76........2004/70........2003/64

From the Sublime to the Ridiculous

June 4, 2010

For the sublime, this weekend Temecula Valley is once again hosting the Balloon & Wine Festival. The festival begins today at Lake Skinner in the Southern California wine country. There will be dawn hot air balloon launches as well as evening balloon "glows". There will be wine tastings as well as wine and food pairings. There will musical entertainment and a kids faire. The festival opens at 5 p.m. today and 6 a,m, Saturday. For detailed information go to http://www.tvbwf.com/

For the ridiculous (well this may depend on your point of view), on Saturday from 10 a.m. to 4 p.m., Redlands Chamber of Commerce will be hosting the Million Dollar Mutt Mansion and Pet Expo. Come to Sylvan Park in Redlands and bid on custom made dog houses throughout the day. I must say that these "Mutt Mansions" are truly works of architectural delight. There will also be a pet parade so bring your pets and join in the fun. For more information call the Chamber at 909-793-2546

Is This a Good Time to Buy? or Sell?

June 3, 2010

Given the mixed messages about the real estate market: It has "bottomed out". It still has further adjustments ahead. What is a buyer or a seller to do?

The answer, as always, is "it depends".

If you are a potential seller, it depends on the reasons that you have for moving. Must you move because of a job relocation? Do you want to move to reduce your expenses by obtaining a smaller or less costly property? Are you in danger of losing your property through a foreclosure?

If the answer is "yes" to the last question, it may indeed be wise to attempt a "short sale". Since you will be getting o proceeds from the sale, you can generally set a very competitive listing price. With the government's HAFA program, you may even be able to complete a sale in less than the six months that has been usual in the past few years.

If you are subject to a job relocation, you will need to decide whether selling or renting is your best option. In most cases, selling may be best as it can be difficult to oversee a rental from a distance and the condition of the property may suffer a bit from the wear and tear of renters. If you do decide to sell, set a competitive price and do it now. June and July are months that typically bring out the most potential buyers. Also the number of properties being sold has increased which is a good sign for sellers.

Again, if you want to sell to reduce your expenses, set a competitive price and explore your options for less expensive housing.

If you are a potential buyer, now is the time. Prices are quite a bit off their peaks and sellers are generally quite willing to negotiate with a well qualified buyer. Interest rates for real estate loans are as low as they have been in approximately 40 years. This week, 4.5% seems to be the interest rate for 30 year loans, both conventional and FHA.

Obviously, those of us in the real estate profession may be biased, but all the signs are there that should encourage the folks who want to make a move - either buying or selling.

Short Sales and Bank Owned Properties

June 2, 2010

Yesterday I posted the numbers of Listings, Pendings and Back-ups. Today I thought I would post the percentages of the totals that were listed as short sales (SS) or bank owned (REO). The pending numbers include both pending and back-up as both do have accepted contracts and are in escrow.

Banning/Beaumont........Listings/34.6(SS).......REO/18.8......In Escrow/54.1(SS).....REO/.31.1

Bloomington....................Listings/36.4(SS).......REO/29.1......In Escrow/50.0(SS).....REO/26.0

Colton...............................Listings/42.3(SS).......REO/21/4.....In Escrow/59.1(SS)......REO/24.0

Fontana............................Listings/54.6(SS).......REO/19.6......In Escrow/58.6(SS)......REO/21.0

Grand Terrace................Listings/25.0(SS).......REO/35.7......In Escrow/41.2(SS)......REO/23.5

Highland..........................Listings/45.3(SS)........REO/19.9......In Escrow/52.0(SS).....REO/19.3

Loma Linda.....................Listings/32.3(SS)........REO/12.3......In Escrow/61.7(SS).....REO/20.0

Mentone..........................Listings/35.3(SS)........REO/20.6......In Escrow/52.4(SS).....REO/28.6

Moreno Valley................Listings/46.6(SS)........REO/20.4......In Escrow/58.9(SS).....REO/21.6

Redlands.........................Listings/23.7(SS).........REO/17.3.......In Escrow/47.8(SS).....REO/20.1

Rialto...............................Listings/47.3(SS).........REO/19.5.......In Escrow/48.4(SS)....REO/27.9

Riverside........................Listings/40.1(SS).........REO/16.4.......In Escrow/54.1(SS).....REO/21.5

San Bernardino.............Listings/48.6(SS).........REO/20.3.......In Escrow/50.1(SS).....REO/24.2

Yucaipa/Calimesa.........Listings/34.6(SS)........REO/17.9........In Escrow/56.3(SS).....REO/23.9

Short sales are a higher percentage of both our listings and our pendings. One reason for the high percentage of short sales that are pending may be the length of time it takes to get lender approval. For REO properties, it is the lender who has set the price and who is happy to close the transaction as quickly as possible. Thus REO properties move through the system quickly.

Listings and Pendingsin the MRMLS June 1, 2010

June 1, 2010
Here are the numbers of listings, pending and back-ups as reported in the IMRMLS> These numbers are only reflect what has been reported as of June 1, 2010. To obtain the ratio of transactions with an accepted contract (pendings) I have also included the numbers for those reported in the back-up category as these also have an accepted contract.
Banning/Beaumont......Actove/520.......Pending/250......Back-up/91......Ratio/.656
Bloomington..................Active/55..........Pending/85.........Back-up/19......Ratio/1.890
Colton............................Active/126.........Pending/109......Back-up/45......Ratio/1.222
Fantana........................Active/597.........Pending/708......Back-up/210....Ratio/1.538
Grand Terrace............Active/28...........Pending/12.........Back-up/5........Ratio/.607
Highland......................Active/161.........Pending/106.......Back-up/44......Ratio/.932
Loma Linda................Active/65...........Pending/37..........Back-up/23......Ratio/.923
Mentone.....................Active/43...........Pending/13..........Back-up/8........Ratio/.618
Moreno Valley...........Active/569.........Pending/710.......Back-up/270....Ratio/1.538
Redlands....................Active/295.........Pending/132........Back-up/52......Ratio/.624
Rialto..........................Active/220.........Pending/334.......Back-up/75.......Ratio/1.859
San Bernardino.........Active/691.........Pending/621........Back-up/131.....Ratio/1.088
Yucaipa/Calimesa....Active/262.........Pending/110........Back-up/66.......Ratio/.669
If you are wondering why agents report an accepted offer in the "back-up" category, there are several explanations. Usually it is because there is some significant contingency in the accepted offer. Often it may be a contingency regarding lender approval for a short payoff. However there can be other contingencies that must be removed before the report will be changed to pending.
As you can see, the market in our region is not "flooded" with listings. The listings that are priced competitively do not remain in the active category for an extended period, but quickly are reported as pending. Buyers have been surprised how quickly new listings are selling.