Comedy, Music and a Trolley Ride in the Inland Empire

July 30, 2010

Laughter is good for the soul and tonight and tomorrow, San Bernardino is hosting a two day party at the California Theatre of the Performing Arts. The public is invited to the filming of Showtime's Laugh Out Loud Comedy Series. The festival opens at 5 p.m. today and begins with Tom Arnold at 8 p.m. Tickets are $19-$49 and are separate for each headliner. There will be live entertainment and food vendors in the street outside the theatre and excerpts from the five entertainers beamed outside. Willie Barcena, one of the entertainers, is quoted in the Press Enterprise newspaper as saying "For me, it's going to be fun talking about the Inland Empire om National TV." Information at 909-885-5152 04 http://www.californiatheatre.net/

From 10 a.m. to 4 p.m, the San Bernardino County Museum will be alive with music and dance. Visitors can make small rattles called maracas and join the rhythm circles. Visitors can lean square dancing and the basic steps of Zumba, the fitness craze that combines aerobic workout with the sounds of salsa and other Latin music. Admission to the museum is $8 for adults, $6 for military or senior, $5 for students and $4 for children aged 5-12. For more information call 909-307-2669 X 229 or http://www.sbcountrymuseum.org/

At 5:30 p.m., you can travel to Perris and visit the Orange Empire Railway Museum, 2201S A Street in Perris. Museum members can spend time on some of the trolley cars. Museum memberships can be purchased at the event for $40 for an individual and $60 for a family. The evening will begin with hors d"oeuvres and then a potluck style barbecue with members bringing side dishes. For additional information you can call 951-943-3020 0r on the Internet http://www.oerm.org/.

"Locking" Your Interest Rate

July 29, 2010

With interest rates at historical lows, should a potential borrower lock the interest rate immediately upon successfully negotiating a purchase agreement? In this market where interest rates have been bouncing around, being able to obtain a "lock" on the current interest rate can be a valuable thing to do.

"Locking" an interest rate is obtaining a guarantee from a lender that for a certain period of time, the interest rate that you are quoted will not change even though the interest rates in the market place change. The lock means that your rate is secured whether interest rates go up or go down.

At one time, lenders would "lock" guaranteeing a rate but with a proviso that if rates decreased, your rate would also be adjusted. Most of the time lenders will not make any adjustments after a borrower "locks" a rate. Since they are willing to gamble that rates will not change significantly, borrowers who lock are accepting the "locked" rate.

Critical factors for a lender willing to "lock" (not all lenders offer this borrower benefit) include a check of borrower's credit, a computerized estimate of the property"s value and generally a verification of the borrower's income. Lenders will not wish to "lock" a rate if it looks as though the transaction might be shaky.

In this market where loan approval may take more than 30 days, it is important to know how long the interest rate can be "locked".

In a volatile interest rate market, some borrower's will to delay locking or not lock at all, taking their chances on what the rate will be when it is time to draw the loan documents.

"Locking" has been available for a very long time and we hope that it will remain a choice that a borrower can make.

Contingencies in Real Estate Contracts

July 28, 2010

In today's real estate market place, contingencies in real estate purchase agreements are pretty routine. A prospective buyer writes a contract to purchase a property at a given price, under stated terms. However, a purchaser using the standard California of Realtors Purchase Agreement will include a number of contingencies which, if not removed in writing, will permit the potential buyer to cancel the agreement and be entitled to a return of the earnest money deposit.

These contingencies include approval of an inspection of the property. Buyer hires a professional inspector who inspects and writes a written report as to the condition of the property. The buyer may then accept the condition of the property or request the seller to make repairs. Once the negotiation for repairs is completed, the purchaser either removes the contingency regarding the condition of the property or cancels the purchase agreement.

Financing is typically another contingency. The purchase is contingent upon the property appraising at the purchase price and the buyer being approved for the loan as stated in the purchase agreement. Again, if one of these conditions is not met, the potential buyer may cancel the agreement and be eligible for the return of the initial deposit (earnest money).

Insurability is another possible contingency. The sale of the buyer's present property may also be a contingency.

The original written purchase agreement will state whatever contingencies, a potential purchaser wishes to includes. Once the purchase agreement has been agreed to by both parties, the time to remove each contingency begins counting down. The day the agreement is signed is day 0. the following day is day 1 and so on.

It was once the case that when the time frames stated in the purchase agreement had passed, the contingency automatically was over. In the present C.A.R. Purchase Agreements, these contingencies will continue to be in effect until they are removed in writing. It is important for all parties to act diligently and in a timely matter.

Some Changes to the C.A.R. Purchase Agreement

July 27, 2010

The revised California of Realtors Purchase Agreement and Escrow Instructions has some subtle changes that could have an effect on a sales transaction. In the previous standard purchase agreement form, there was a separate clause referencing the Structural Pest Control Report and allowing for a choice of who would pay for the report and for any work required. Typically a buyer's agent would attached an addendum spelling out who would pay for required work. The new contract has eliminated this clause and put the addendum as one of the attachments to a purchase agreement which can be checked in order to be included.

If the termite addendum is not checked as part of the purchase agreement,the change allows the buyer and seller to negotiate which repairs and who pays in the same manner that other requested repairs are negotiated. If it is checked, the addendum becomes a term of the contract and most lenders will require all work on the structural pest control report to be completed prior to close of escrow.

If the addendum is not checked, agents should remember to include the cost of the report under the clause that allocates costs such as septic inspections, etc.

Habits are hard to break and most agents still want the addendum to be included as a part of the contract. However, this change permits a seller to not commit to paying for repairs prior to knowing what those costs might be. Structural Pest Control repairs are still an important issue that must be confronted and dealt with in order that buyers are comfortable that they are purchasing a sound house. Sellers will probably continue to need to make the repairs, but at least this newer process allows room for some negotiations.

Government Sponsored Enterprises (GSE)

July 26, 2010

I was reading a news article this morning about the passage and signing by the president of the Financial Reform Act (This is not its official name). The news writer mentioned that GSEs were not included as part of the new regulations. Since I am not familiar with the various terms set forth in this new legislation, I do not know whether the GSEs fall under the new oversight terms.

According to Wikipedia, "Government Sponsored Enterprises are a group of financial services corporations created by the United States Congress. Their function is to enhance the flow of credit to targeted sectors of the economy and to make those segments of the capital markets more efficient and transparent."

In the housing sector there are four GSEs:

The twelve Federal Home Loan Banks (1932)

Federal National Mortgage Association (Fannie Mae) (1938-2008)

Federal Home Loan Mortgage Corporation (Freddie Mac) (1970-2008)

Government National Mortgage Association (Ginnie Mae) (1968)

Fannie Mae and Freddie Mac were put into conservatorship in September 2008 as a result of the sub prime mortgage crisis which caused the government to bail them out.

Fannie, Freddie and Ginnie all function as the secondary market for loans originated by local institutions. These local institutions sell their loans to Fannie, Freddie and Ginnie thereby replenishing their funds to make new loans. Prior to the creation of a secondary market, local financial institutions "Porfolioed" their loans. When a local institution's available supply of funds was depleted, the local institution could no longer originate loans. High demand for home loans created a supply gap. The creation of GSEs was designed to keep funds available. The system seemingly ran amok when lending standards became too lax.

As a non economist and a non financial expert, I only know that the existence of a secondary market is vital for funds to be available for the purchase of homes. Hopefully lending practices will make certain that the loans that are granted go to well qualified borrowers who can support the necessary payments. From my perspective, lending practices have become quite strict.

76 Trombones Are Marching into Redlands

July 23, 2010

This Friday and Saturday at the Redlands Bowl, you can have the treat of the summer. The Redlands Community Music Association is presenting the "Music Man". Presentations began on Thursday and will continue through Saturday, July 23 and 24. The program begins at 8 p.m.

There is no admission charge, but the red bowls will be passed during intermission so that you can show your appreciation by giving a generous donation. The cast is composed of many local folks with some wonderfully talented stars.

Bring your picnic and enjoy the pleasant summer evening.

The Changes in Earnest Money Deposits

July 22, 2010

In the revised California of Realtors Purchase Agreement and Escrow Instructions form, the handling of a buyer's earnest money deposit has changed. There are several options, but the newest one permits the Buyer to make an "initial deposit" directly to the escrow holder within 3 days of acceptance. Formerly, the initial deposit (earnest money) was given to the agent writing the offer at the time the offer was written. The contract stated that the check would be held uncashed until acceptance and then deposited in either the broker's trust account or into escrow.

This change eliminates the need of a prospective buyer to write a check that will need to be returned if the offer to purchase is unsuccessful.

At one time agents believed that the earnest money was an indication of how serious a buyer was and that you needed it as "consideration" in order for the purchase contract to be valid. Not the case as the promise to purchase under specified terms was "consideration".

With current purchase agreements specifying that the buyer has a 17 day (or how ever long the buyer and seller negotiate) to inspect and investigate and obtain financing before the deposit would be vulnerable to loss from buyer to seller, the initial deposit carries less influence on the solidity of the agreement. Until contingencies are removed in writing, the initial deposit is not at risk and if buyer cancels during the investigation period, the deposit must be returned to eh buyer.

We are fortunate to have our purchase agreements spell out so many of these somewhat misunderstood terms and conditions. C.A.R. makes constant attempts to simplify the wording so that all parties can be clear about their agreements.

What's on Your Mind - About Real Estate?

July 21, 2010

Approximately one time a year I become really needy - that is, needy to hear from my readers as to what might be of interest to them. One of the most challenging aspects of doing a daily blog post is coming up with a subject in the hopes that I might post something useful or interesting about the real estate market and the Inland Empire.

I would be appreciative if you would click the comment button and tell me what is of interest to you. I enjoy researching subjects and perhaps you are not the only person who has some concerns. So take a moment and post a comment.

Summer Has Arrived in the Inland Empire

July 20, 2010

Five days of triple digit temperatures is a sure sign that the summer season has arrived. No more marine layers and cool morning temperatures. So far just beautiful hot, dry days.

With summer comes a few chores that many residents of the Inland Empire may need to add to their to-do lists. We have many properties that are adjacent to undeveloped areas. Each year, homeowners need to check around their homes to be sure that the brush has been cut back at least ten to twenty feet from any structures. Plantings of fire resistant vegetation is always a good idea. It is time to trim back the plants that are surrounding the house. It is time to check the irrigation system to be certain that the system is functioning properly; sprinkler heads are unclogged and the water pressure is sufficient to provide good coverage.

If your home still has a wood shake roof, perhaps it is time to replace it with a fire resistant composition roof or a concrete tile roof.

I read in the newspaper this morning the regulations that the fire service has in place for the forest areas in our mountains. This reminded me that all of us need to be cognizant of the areas that immediately surround our homes. Clearly wildfires are an environmental hazard for all of us in this hot, dry climate, but with awareness and care, we can help to reduce the likelihood of the fires spreading to our homes.

Mid Year Median Prices - 2002-2010

July 19, 2010

Using the data from the IMRMLS, I have calculated the six month median prices for the years 2010 to 2002. Yes, in most communities, our median prices do seem to be back to 2003 levels. However, except for Loma Linda, Redlands and Yucaipa/Calimesa, the median prices for the first six months of 2010 are slightly higher than they were for the first six months of 2009 - an encouraging sign.

Banning/Beaumont.......2010/181,179......2009/175,000......2008/242,000......2007/300,000

.........................................2006/325,000.....2005/320,000....2004/195,000......2003/145,000

.........................................2002/125,000

Bloomington...................2010/145,000.....2009/135,000......2008/229,000.....2007/387,000

.........................................2006/370,000.....2005/367,000.....2004/227,000......2003/160,000

.........................................2002/136,000

Colton..............................2010/125.000.....2009/130,000......2008/217,000......2007/335,000

.........................................2006/334,000.....2005/330,000......2004/188,000......2003/145,000

.........................................2002/118,000

Fontana...........................2010/205,000.....2009/200,000.....2008/309,000......2007/420,000

.........................................2006/415,000......2005/431,000......2004/271,000......2003/196,000

.........................................2002/165,000

Grand Terrace...............2010/200,000.....2009/198,000......2008/280,000......2007/380,000

.........................................2006/383,000......2005/380,000.....2004/278,000......2003/211,000

.........................................2002/158,000

Highland.........................2010/163,000.....2009/150,000.......2009/267,000......2007/379,000

.........................................2006/365,000.....2005/317,000.......2004/235,000......2003/185,000

.........................................2002/155,900

Loma Linda....................2010/229,000.....2009/250,000......2008/335,000......2007/417,000

.........................................2006/395,000.....2005/399,000......2004/300,000......2003/225,000

.........................................2002/172,000

Mentone.........................2010/200,000......2009/115,000......2008/329,000......2007/300,000

.........................................2006/335,000......2005/269,000......2004/195,000......2003/153,000

.........................................2002/133,900

Moreno Valley...............2010/165,000......2009/137,500......2008/225,000......2007/380,000

.........................................2006/375,000......2005/374,000.....2004/251.000......2003/188,000

.........................................2002/149,000

Redlands.........................2010/219,000......2009/225,000......2008/323,000......2007/400,000

.........................................2006/393,000......2005/421,000......2004/299,000......2003/220,000

.........................................2002/198,000

Rialto...............................2010/169,000......2009/144,000......2008/230,000......2007/375,000

.........................................2006/379,000......2005/385,000......2004/240,000......2003/180,000

.........................................2002/145,000

Riverside........................2010/199,900......2009/174,000......2008/285,000......2007/402,000

.........................................2006/416,000......2005/417,000......2004/399,000......2003/212,000

.........................................2002/182,000

San Bernardino..............2010/105,000......2009/89,000........2008/184,000......2007/310,000

.........................................2006/307,000......2005/255,000......2004/175,000......2003/125,000

.........................................2002/107,000

Yucaipa/Calimesa.........2010/187,000......2009/212,000.......2008/285,000......2007/370,000

.........................................2006/374,000......2005/390,000......2004/262,500......2003/190,000

.........................................2002/159,000

Art Experiences

July 16, 2010

On Saturday, July 17, two Inland museums have been selected to participate in Target's Arts and Wonder Free Family Event. The retailer is partnering with museums and cultural organizations in thirty cities nationwide. We are fortunate that the Riverside Art Museum and the Palm Springs Art Museum will be offering families a chance to explore and learn about art.

The Riverside Art Museum;s event is entitled "Art Fun in the Sun". There will be an opportunity for folks to learn how to create paintings and sculptures. listen to music and learn about the history of the building.

Visitors to the Palm Springs Art Museum will have an opportunity to hear live poetry readings, see watercolor demonstrations, view a film screening and take a tour of the museum.

The Target Free Arts Family Days will take place Saturday from 10 a.m. to 5 p.m. This is a unique event and A great chance for families to participate in a hands on art experience.

Headlines Are Often Contradictory

July 15, 2010

Yesterday the headlines in the Business sections of the San Bernardino Sun and the Los Angeles Times newspapers read as follows: The Sun: "June home sales drop" and the LA Times: "Southland sales climb but median price slips"

Then today the Sun: "Area foreclosure filings fall" and the LA Times: "Foreclosures in the U.S. reach a record high".

A friend also forwarded an article from http://www.foreclosureradar.com/, a site that tracks foreclosure data. This article had some interesting graphs and information.

With some lenders participating in the loan modification programs and sellers working with buyers to successfully complete a short sale, it seems to me that accurate information is difficult to find. I know that when I go into the San Bernardino County Assessor's records to check Notice of default, Notice of Trustee's Sale and Bank Owned properties for Redlands, I find listed many properties that have already transacted and are now owned by a new owner thereby cancelling out the foreclosure process.

If you are seriously wanting to purchase a home, get yourself preapproved by a reputable lender, find a property that you like and go forward. Interest rates are low, home prices are as low as they have been in several years and in spite of the headlines, individuals are buying and selling and moving forward with their lives.

Are Those Gophers Driving You Crazy?

July 14, 2010

Gophers are very resilient little animals. Recently I saw a special on the eruption of the Mt. St Helens volcano eruption. The devastation that was caused by the falling ash and rocks and hot mus turned the surrounding area into a wasteland. Trees lay flattened animals lay dead and scientists wondered how many years it would take for the area to recover. A few months following the eruption as they were walking the landscape, to their great surprise they found gophers. These burrowing animals had survived. The scientists were thrilled. However, when they inhabit your yard and raise little mounds of dirt and eat the roots off of your plantings, you are nor very happy to see them. You can use traps. You can use poison in their holes. You can use the sonic sticks. It becomes an ongoing battle.

I was reading a book on folk remedies and this one caught my attention. If you have a cat and you have a cat littler box, instead of throwing away the used litter material, find the gopher holes that are entrances to their tunnels. Pour the used litter into the hole, cover it up and the gophers that lived in that area will move out. They hate that contaminated stuff.

I am always interested to find new ways that folks cope with some age old nuisances.

Median Prices - January 2010 thru June 2010

July 13, 2010

For those who may be curious about the real estate data for the fourteen communities that I track with the information published in the IMRMLS, here are the median numbers from January through June 2010. Remember that this is not a scientific calculation. It is simply using the number of reported unts sold divided in half and selectying the transaction that falls at that halfway point as the median price for each community.

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

.........................................May/185,000......June/171,000

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

.........................................May/155,000......June/126,000

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

........................................May/130,000.......June/150,000

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

........................................May/200,000......June/213,000

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

........................................May/187,000.......June/182,500

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

........................................May/173,500.......June/185,000

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

........................................May/203,200......June/250,000

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

........................................May/220,000......June/78,000

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

........................................May/163,000......June/160,000

Redlands........................Jan/210,000.......Feb/207.000.......Mar/210,000.......Apr/227,000

........................................May/217,000......June/220,000

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

........................................May/164,901.......June/165,000

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

........................................May/215,000......June/200,000

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

........................................May/107,000......June/113,000

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

........................................May/209,750.......June/189,500

It still seems to me that the numbers are bumping along the bottom; No big drops and no big increases. However, I post them so you can decide for your selves.

Median Home Prices - 2010-2003

July 12, 2010

For those of you who tract median home prices here are the statistics for the fourttenn communities that I track through the data reported in the IMRMLS>

Banning/Beaumont........2010/171,000......2009/147,500......2008/240,000......2007/294,990

..........................................2006/320,000......2005/269,000.....2004/196,500......2003/164,900

Bloomington....................2010/126,000......2009/120,750......2008/200,000......2007/355,000

..........................................2006/365.000......2005/320,000.....2004/250,000......2003/175,000

Colton...............................2010/150,000......2009/110.000......2008/201,000......2007/339,000

..........................................2006/339,999.......2005/295,000.....2004/240,000......2003/145,000

Fontana...........................2010/213,000.......2009/164,000......2008/275,000......2007/391,000

.........................................2006/415,000.......2005/372,000......2004/300,000......2003/205.900

Grand Terrace...............2010/182,500.......2009/189,000......2008/307,000......2007/370,000

.........................................2006/399,900.......2005/352,000......2004/265,000......2003/203,500

Highland.........................2010/185,000.......2009/135,000......2008/228,900.......2007/345,000

.........................................2006/365,000......2005/320,000......2004/265,000.......2003/198,900

Loma Linda....................2010/250,000......2009/169,000......2008/270,000.......2007/435,000

.........................................2006/375,000......2005/355,000......2004/380,000.......2003/193,000

Mentone.........................2010/78,000........2009/78,000.........2008/389,900.......2007/343,000

.........................................2006/257,500......2005/329,000......2004/186,800.......2003/134,900

Moreno Valley...............2010/160,000......2009/130,000......2008/200,000......2007/355,000

.........................................2006/377,000......2005/337,000......2004/263,500.......2003/180,500

Redlands........................2010/220,000......2009/174,900......2008/294,900.......2007/385,000

........................................2006/408,900......2005/406,000......2004/325,000......2003/227,000

Rialto..............................2010/165,000......2009/130,000......2008/220,000......2007/351,000

........................................2006/379,000......2005/336,000......2004/264,000......2003/182,500

Riverside.......................2010/200,000......2009/167,000......2008/269,900.......2007/402,600

........................................2006/425,000......2005/385,000......2004/322,000......2003/239,900

San Bernardino............2010/113,000.......2009/69,900........2008/165,000.......2007/295,000

.......................................2006/313,000......2005/278,000......2004/200.000......2003/134,900

Yucaipa/Calimesa.......2010/189,500.......2009/185,000......2008/295,000.......2007/340,000

.......................................2006/375,000......2005/362,000......2004/297,000.......2003/195,000

With the exception of Grand Terrace and Mentone, these communities are showing an improvement in the median price of homes soled. Also you can note that the two peak years were 2005 and 2006.

Nostalgia Reigns This Weekend

July 9, 2010


If you are a music fan, this weekend in the Inland Empire you will have a choice of musical style.


From tonight through Sunday, Temecula Valley will be the host of the International Jazz Festival. Heading the 2010 Festival is GRAMMY winner Poncho Sanchez. For information, visit http://www.musiciansworkshop.org/


Then on Friday and Saturday evenings at 8:15 p. in the Redlands Bowl you can listen to the music of the Big Band Era. Glenn Miller band will be performing the songs of the 40s and 50s.


Saturday in downtown Riverside from 1 p.m. to 9 p.m. you can come to the Downtown Street Jam. There will be four stages of live entertainment. For additional information call 951-241-6550


If you want to do a time travel back to the 30s and 40s, the San Bernardino County Museum will be the site of "Swingin' at the Grove".For more information call 909307-2669 or visit http://www.sbcountymuseum.org/


So many choices and so much fun to enjoy.

Statistics for Properties Reported Sold in June 2003-2010

July 8, 2010


Here are the numbers for the units reported sold through the IMRMLS for the month of June. 2003-2010.


Banning/Beaumont.....2010/152......2009/144......2008/106......2007/67.......2006/131


.......................................2005/97........2004/102......2003/89


Bloomington.................2010/34........2009/44........2008/15.........2007/10.......2006/23


.......................................2005/27........2004/22........2003/19


Colton............................2010/46........2009/75........2008/33........2007/21.......2006/66


.......................................2005/59........2004/29........2003/57


Fontana........................2010/312.......2009/392......2008/250......2007/99......2006/244


.......................................2005/312.......2004/237......2003/224


Grand Terrace............2010/10..........2009/15........2008/12........2007/8.........2006/11


......................................2005/11...........2004/4.........2003/9


Highland......................2010/58..........2009/67........2008/43........2007/23.......2006/65


......................................2005/73..........2004/60.......2003/70


Loma Linda.................2010/23..........2009/14.......2008/14.........2007/11.......2006/20


......................................2005/19..........2004/13.......2003/18


Mentone......................2010/3............2009/16........2008/7...........2007/3........2006/9


......................................2005/12..........2004/11........2003/11


Moreno Valley............2010/297........2009/435......2008/304......2007/103.......2006/299


.....................................2005/351........2004/254......2003/224


Redlands.....................2010/85..........2009/56.........2008/48........2007/58.........2006/79


.....................................2005/84.........2004/88.........2003/82


Rialto...........................2010/158.......2009/174.......2008/73.........2007/34.........2006/116


.....................................2005/116.......2004/123.......2003/119


Riverside....................2010/423.......2009/580.......2008/386......2007/235.......2006/419


.....................................2005/490.......2004/434.......2003/392


San Bernardino.........2010/276........2009/361........2008/175......2007/102......2006/231


....................................2005/247........2004/302.......2003/233


Yucaipa/Calimesa....2010/75.............2009/48.......2008/54........2007/54........2006/77


....................................2005/81...........2004/74.........2003/81

What Really is a "Short Sale"?

July 6, 2010

After at least two years of dealing with short sales, it seems that many folks still are unclear about exactly what a "short sale" is. Many current listings are "short sales" and buyers want to know how a short sale might affect them.

Here is the definition of a short sale that was given in a California Association of Realtors' Q and A about short sales.

" A short sale is a transaction in which a lender allows the real property securing the loan to be sold for less than the remaining mortgage balance amount due and accepts the proceeds as full payment of the loan. A lender may accept a short sale when the borrower is in severe financial straits and market conditions make a short sale the best choice to mitigate the lender's damages....this saves the lender the costs of foreclosure and the borrower avoids having a foreclosure on his or her credit report."

The main effect of a short sale on a buyer is the uncertainty of the approval from the lender as well as the length of time it generally takes to obtain the lender's approval.

Most short sale listings have a list price that is arrived at by the use of a comparative market analysis and is not a price already approved by the lender. For this reason, the buyer cannot be certain that the offered price will receive lender's approval. The new HAFA procedure is designed to allow a borrower to obtain an approved price prior to receiving an offer in an effort to take some of the uncertainty out of the process.

Short sales are likely to be with us for some time as the market adjusts to the new valuations resulting from the current downturn in the economy.

Keeping Your Garden Fountain Sparkling

July 6, 2010

Garden fountains have become very popular as a focal point in folk's landscaping. With the relatively inexpensive pumping apparatus, a garden fountain can add the pleasant sound of splashing water - especially pleasant on our warm /hot summer days.

Over time, however, the pump may become clogged with algae. Emptying the fountain and scrubbing will get rid of the pesky algae but only temporarily. The local nursery or pond shop can furnish you with an algacide, but you do want to make sure that the chemicals you add are non-toxic. One of the pleasure of a fountain is the arrival of birds that come to drink or to splash!

I read of a great idea for keeping the algae at bay. Copper keeps algae from growing, so empty your stash of pennies into the bottom of your fountain. No wonder "Three Coins in the Fountain" was so popular. Someone knew that those coins that were tossed into the water would keep the water clear. Oh, don't forget to make a wish.

Fear and Desire and the Housing Market

July 5, 2010

Whether it is an economic boom or an economic bust, fear and desire are the human emotions that seem to make or break a market. Fear of being left out drove the housing boom; fear of a further decline in real estate values is driving potential buyers to hold back. Desire to for a certain quality of life, to choose one's neighborhood, and to put down roots fuels the decision to purchase a home. I In a recent Business Week Magazine, I read an article that was titled "Home Bidding Wars are Back in San Francisco." Both the volume and prices of sales in San Francisco have risen dramatically this year. What caught my attention were the interviews with two recent home buyers who paid significantly above the asking price in order to be successful in purchasing the property that they desired. Imagine paying $875,000 for a 1400 square foot, three bedroom house!

According to one economist, a limited supply, an attractive climate, an innovative economy and a high quality of life are the ingredients that are pushing demand in San Francisco.

I would suggest that we examine our own Inland Empire. We have a fairly limited inventory of unsold properties. We have an attractive climate. I have tried to emphasize the many cultural opportunities that we have - all of which contribute to a high quality of life. We have both private and public institutions of higher learning. Is the innovative economy the one ingredient that we lack? Or have we let fear hold us back?

It will be interesting to see which emotion leads the way in the second half of 2010.

Inland Empire Skies will be Alight on July 4

July 2, 2010

On Sunday, the Fourth of July, I counted announcements for at least 14 fireworks spectaculars throughout the Inland Empire. The weather is expected to be in the 90s during the day and in the 60s at night.

As usual, festivities will be going on all day at Sylvan Park in Redlands. Claremont also kicks off its 62nd celebration beginning with a pancake breakfast at 7a.m. in Memorial Park. San Bernardino will be celebrating both the Fourth of July and the city's bicentennial. These events will be held at Arrowhead Credit Union Park and begin approximately 5 p.m.

It is always amazing to see "the rockets red glare" flashing in the night skies.

Have a safe and enjoyable Fourth !

Listings, Pendings and Back-ups on July 1, 2010

July 1, 2010

Here we are at the halfway mark for the year 2010. As far as I can determine, real estate activity has continued at a fairly even pace in the 14 communities that I have been tracking.

The ratio figure is computed on the combined number of pendings and back-ups divided by the total number of active listings.

Here are the numbers so that you can make your own assessment.

Banning/Beaumont......Listings/549.......Pendings/226.......Back-up/95........Ratio/.585

Bloomington..................Listings/79..........Pendings/66.........Back-up/19........Ratio/1.076

Colton.............................Listings/121........Pendings/99.........Back-up/56.......Ratio/1.281

Fontana..........................Listings/645.......Pendings/661.......Back-up/202.....Ratio/1.338

Grand Terrace..............Listings/26..........Pendings/12.........Back-up/3..........Ratio/.577

Highland........................Listings/176.........Pendings/114.......Back-up/57........Ratio/.972

Loma Linda...................Listings/60..........Pendings/39.........Back-up/26........Ratio/.1.083

Mentone........................Listings/36...........Pendings/10.........Back-up/9..........Ratio/.528

Moreno Valley..............Listings/560........Pendings/694.......Back-up/253......Ratio/1.691

Redlands........................Listings/312........Pendings/119.......Back-up/45.........Ratio/.526

Rialto..............................Listings/263........Pendings/308......Back-up/74.........Ratio/1.452

Riverside.......................Listings/1180.......Pendings/882......Back-up/364......Ratio/1.056

San Bernardino.............Listings/666.........Pendings/604.....Back-up/142.......Ratio/1.120

Yucaipa/Calimesa........Listings/269.........Pendings/113......Back-up/55.........Ratio/.625

These are cumulative numbers and reflect was is currently available for sale and what is currently in some stage of a sale transaction.