What Are Buyers Waiting For?

February 28, 2011

Here we are at the last day of February 2011. Anecdotally, there are many folks out touring open houses, checking the Internet for properties, and telling real estate agents that they are "thinking about buying this year". So - what are they waiting for?

Perhaps they have not yet seen their dream house. Perhaps they have a house they must sell first. Perhaps they are waiting for the media to say the housing market is rebounding. Whatever the reason to delay, it might prove to be a better decision to become serious now.

There is much discussion about changes coming in lender rules. Perhaps more down payment will be required. Perhaps better credit scores will be required. And perhaps prices will stabilize and sellers will be less willing to negotiate.

There are many very good buying opportunities in our local Inland Empire markets. Have a serious discussion of the pros and cons of making a move now.

The next few months could easily be the best time this year to buy a house. In the Friday/Saturday edition of the Wall Street Journal this weekend there were several pieces suggesting that prospective buyers should check out their local real estate markets. Good advice!

Enjoy a Classic Silent Film

February 25, 2011

On Saturday at 2 p.m. you can be out of the rain and snow and enjoy a classic silent movie at the California Theatre of the Performing Arts, 562 W. Fourth Street in San Bernardino. The Hunchback of Notre Dame will be presented complete with live music played on the Mighty Wurlitzer organ. Robert Salisbury will accompany the film on this rare instrument to add authenticity to the experience of viewing a silent film. The film stars Lon Chaney as Quasimodo and Patsy Ruth Miller as Esmeralda. This will be a chance to see what entertainment was like in the 1920s.

Admission is free, but to attend you must have a ticket. Ticket reservations are available through the theater box office, 909-885-5152

Common Interest Developments

February 24, 2011

I had a question this past week regarding the use of the terms "condominium" and "PUD". These terms are often used interchangeably, but they are not synonyms for the same type of real estate developments. It may be difficult for a buyer to discern the difference just be viewing a particular property. There are actually four types of common interest developments (CIDs) in California: planned developments (PDs), condominiums, stock cooperatives, and community apartments.

A planned development (PD), sometimes referred to as a planned unit development (PUD) consists of real property which is split into lots that are individual plots of land with a dwelling on them. Most frequently the lot that an owner will own separately will be from the roof line to the ground. The PD will have a common area which is owned in common with all the other "lot" owners who are members of a homeowners' association (HOA) which elects officers and manages the PD. The homeowners association is usually Incorporated under recorded Articles of Incorporation which outline the duties of the HOA. There will be Covenants, Conditions, and Restrictions which regulate the development.

A condominium consists of an undivided interest in the common area coupled with a separate interest in the airspace defined as a specific unit. The owner receives a deed of ownership in the particular unit as well as an equal undivided ownership in the common area. The precise description of the unit will be found in a recorded document called the "Condominium Plan" or "Subdivision Map".

A stock cooperative is usually referred to as a co-op. The corporation owns the entire real property. The owner in a cooperative does not own any real property but becomes a stockholder in the corporation with the right to a specific home on the property. The owner of the stock will pay a monthly management fee and the corporation will be run by an elected Board of Directors.

Community Apartments are often referred to as "own-your-owns". The building is owned in a "common tenancy" fashion with owners being tenants-in-common".

The deed that the owner receives may not mention a specific unit, but will state that the owner owns one individual equal share in the property. The deed provided the owner with the right to occupy a specific home in the community apartment project, or the right to occupy a unit and use the common area.

There are many examples of PDs and condominiums in our market area, but not many co-ops or community apartments.

What's a House Worth?

February 23, 2011

This morning I read an editorial that was deploring the state of the economy. Something editorial writers seem to enjoy doing. In this editorial the writer wrote something to the effect that our houses are "worthless". I happen to hold stock in some companies that has become "worthless", because the company has gone bankrupt or otherwise become devalued. I purchased the stock because of my perception that it would increase in value, but until it did that, it was really just a piece of paper sitting in an investment portfolio. No other benefits were derived from my ownership.

A house, on the other hand, performs one of the basic human needs - that of the need for shelter. It provides a roof over my head, a place to develop my own lifestyle and a place on the planet where I can be located. These are attributes of a house that have value even though the house has lost "investment" value.

Think about it. Whether you own or whether you rent, a house is where you live your life. It is worth what it can contribute to your comfort and to your sense of place. Enjoy these attributes. Over time the monetary value may recover, but please do not call having a roof over your head "worthless".

What Real Estate Surplus?

February 22, 2011

I heard an interview this morning on Bloomberg TV in which the interviewee cited the cause of the reported decline in housing prices to be "surplus inventory". As in the sale of most commodities, supply and demand do factor into the determination of prices. However, while the number of active listings has risen since January 2010, we are still under the historical numbers for available properties.

Since 2008, when the "Great Recession" hit the construction industry, very few new tract homes have been built. In fact, an inquiry at the the local building department resulted in a finding of no single family housing tracts being processed.

At the present rate of absorption of active inventory, it is even possible that we will find resale homes in short supply. Yes, I am aware that there is a so-called "shadow inventory" of bank owned homes or soon to be bank owned homes, but this "gorilla-in the-room" has failed, as yet, to materialize.

It will be interesting to me when I do the numbers of active listings and listings in escrow to see if the ratios remain fairly constant. If they do, I would believe that our local market is not over supplied.

The Uniform Monday Holiday Act

February 21, 2011

On June, 28, 1968, the Uniform Monday Holiday Act was voted on and signed into law. A date between February 15 and February 21 was designated Washington's Birthday Holiday. By the mid 1980s, with advertisers were behind the effort to call the holiday "President's Day". And so it has become. Since both Lincoln and Washington had birthdays in February, the day supposedly honors both these presidents who played such major roles in the history of our country.

Some states still call the day "Washington and Lincoln Day".

It has become a day when retailers, car dealers offer special sales. It is often a day when real estate agents have the opportunity to set appointment with clients who ordinarily could not view properties on a weekday. As I sit in the office writing this blog, the agents come drifting in to meet their clients for showing properties.

The Uniform Monday Holiday was designed for folks to have three day weekends. For every such holiday, it is still important to remember whom we are honoring and not just let it be a day to catch up on personal business.

A Weekend to Go to the Desert

February 18, 2011

This weekend the Riverside County Fair and Date Festival opens and continues though to February 27. Each year this event adds more attractions. There is music, food, and camel races and camel rides. The hours are Monday-Friday 10 a.m. to10p.m Saturday and Sunday the carnival is open to midnight. The camels will be racing at at 3 p.m. today and 1 p.m. on Saturday and Sunday. Ticket s for the fair with unlimited carnival rides are $25 for adults, $8 adults without carnival rides, $7 for seniors (55 and older) , $6 for children (5-12), and children under 5 are free. The fairgrounds are located at 82-503 Hwy 111. More information at 1-800-811-3247 04 http://www.datefest.org/

On your way to the date festival, you might stop in Palm Springs. This is the weekend of the Palm Springs Art Festival. Approximately 150 artists will be displaying both fine art and crafts. The time Friday, Saturday and Sunday is 9 a.m. to 5 p.m. The palm Springs Festival Grounds are at Crossley Road at Ramon Road. More information visit http://www.palmspringsartfestival.com/

Hot Home Improvement

February 17, 2011

I read an article in the Wall Street Journal's Personal Journal section that was entitled "The Home Improvement That's the Hottest of Them All". Naturally I had to read the article as I always want to know what would be an answer to the seller's question "Is there anything we can do to improve our property?"

I believe that the title of the article was a bit of a tongue-in cheek as the "hottest" home improvement is a sauna. Yes, a sauna. According to the article, the cost of installing a sauna will be around $5,000 on top of about $12,000 for remodeling the bathroom. Of course saunas can be built as a separate building in one's yard.

The article goes on to describe a Sauna Party Kit for inviting friends to enjoy the benefits of the "steamy bath".

And here we thought that we were entering a more conservative lifestyle. The proponents of saunas would argue that they relax the tired muscles. They cite that the Finnish people have a reputation for long lives and healthy bodies.

The sauna becomes a feature of a more health conscious life style.

There May be Significant Changes in Lending Practices

February 16, 2011

The Administration has proposed winding down Fannie and Freddie over the next five to seven years. They would accomplish this by raising guarantee price and down payment requirements while lowering the size of the mortgages they could securitize and guarantee. The hope would be to lure private capital back into the mortgage market. Currently some 92% of all new mortgages are underwritten or guaranteed by the government. (Surprise, we thought banks and mortgage companies and investors were funding our loans).

According to an editorial in the Wall Street Journal, "The $5 trillion question, however, is what would replace Fan and Fred?"

When lending for real estate purchase first began, Savings and Loan Institutions were a primary source of loans. Folks deposit money into savings accounts. The money was lent out to solid borrowers who were charged an interest rate that created additional funds for additional loans. Lenders held onto these loans and made profits from the spread between what they paid savers and what they charged borrowers. Because there were times when these lenders were short of funds for lending because they had used up their deposited funds, the government as part of FDR's New Deal created Fannie Mae to purchase these loans from the lending institutions. That gave the lenders new funds to lend.

There will be much conversation about the elimination of Fannie and Freddie. The National Association has already entered the fray. The fear, which is real, is that people will be prohibited from purchasing a home due to restrictive lending practices or lack of available money.

If any of you have a suggestion, post a comment.

Trying to Understand the Government's Role in Housing

February 15, 2011

There is much focus currently on the 2011-2012 federal government budget. Reams of budget information have been published. It is somewhat mind boggling to believe that anyone person will be able to understand what is proposed, let alone even read it in its entirety. I fee certain that buried in the data will be line items referencing, the Federal Housing Authority (FHA), the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). Fannie and Freddie were placed into conservatorship in September 2008. After a long history, FNMA,1938, and FHLMC, 1971, these government sponsored entities (GSE) fell victim to the housing market crash.

The White House has put forth three options which would shrink the governments role in supporting homeownership by means of guaranteeing the bulk of new mortgages. It will be interesting to read and listen to the debate about the effects each of the proposed options might have on the ability of prospective home buyers to obtain financing.

The government's role in purchasing loans from the banks allowed money to continue to flow into the economy. As long as folks made their payments, the GSE or the investor did just fine. When folks ceased to make payments, the losses began to multiply. So complex did this secondary market become, it will probably take a number of years to sort it all out. Knowing what went wrong, would be a helpful first step in knowing how to continue or not continue government's role in housing.

Happy Valentine's Day

February 14, 2011

Flowers, candy and card sell big Houses maybe not so much. Perhaps we could start a new marketing plan to the many couples that line up at the county clerk's office to be married on Valentine's Day. What better gift than a place to create a life together.

Of course, my point of view may be slanted since I sell real estate. It is a bigger purchase than a box of candy or a bouquet of flowers, but it will certainly provide many happy times and great memories.

Think about it. Great prices and good loan terms make today's real estate market one of the best ever for buyers.

P.S. If you want some history of Valentine's Day you can go back to may blog of February 14, 2008.

Free Shredding Day in Redlands

February 11, 2011


A-Shred America in conjunction with the Redlands Chamber of Commerce is offering a free shred day on Saturday, February 12. This opportunity is open to Chamber members and residents of Redlands. Proof of membership or residency will be required.

A-Shred America will have their shredding vehicle on the South side of the Redlands Mall (the Citrus Avenue side).

Chamber members can bring 10 boxes and Redlands residents can bring 5 boxes to be shredded free of charge.

Now is the perfect time to clean out file cabinets as you prepare your taxes and make space for 2011 paperwork.

For additional information you can call the Redlands Chamber of Commerce at 909-793-2546.

Do's for Sellers and Buyers

February 10, 2011
Here are a few tips for sellers who want to be successful in today's real estate environment.
Sellers:
Do pack up as much of your personal stuff as you can. After all, you are plan to move so you might just as well sort and pack prior to showing your home to prospective buyers.
Do step outside or leave the property when it is being shown. Buyers need to see themselves living there, not feel that they are in someone else's space.
Do have a serious conversation with your real estate agent. Examine the comparable properties and be VERY realistic about your listing price. Buyers are pretty price savvy and they will not even look if they feel the price is higher than other properties of like vintage and amenities.
Buyers:
Do speak with a loan agent and find out exactly what you will need as down payment, closing costs and credit scores. Know what your qualified price range really is.
Do choose your home on the basis of location, floor plan, size and how you will fit in the house, not on painting and decor which you can adapt to your tastes.
Do make a realistic offer that is based on comparable sales and your real estate agents guidance.
One could list the "don'ts", but I thought positive is the way to look at what can be helpful.

Median Prices -January 2011 and Last January

February 9, 2011

Without considering the fluctuations in median prices for 2010, here are just two numbers - the median price for January 2011 and the median price for January 2010. To me the numbers show a market that has found a bottom and is waiting for supply and demand to determine its next direction.

Banning/Beaumont......January,2011/170,000......January,2010/171,500

Bloomington.................January,2011/165,000.......January,2010/135,000

Colton...........................January,2011/93.000.........January,2010/100,000

Fontana........................Janaury,2011/194,500.......January,2010/195,000

Grand Terrace.............January,2011/203,000......January,2010/236,000

Highland......................January,2011/162,000......January,2010/163,500

Loma Linda.................January,2011/250,000......January,2010/275,000

Mentone......................January,2011/157,000.......January,2010/200,000

Moreno Valley............Janaury,2011/150,000.......January,2010/150,000

Redlands.....................January,2011/217,900.......January,2010/212,500

Rialto..........................January,2011/160,000.......Janaury,2010/142,000

Riverside....................January,2011/189,000.......January,2010/185,500

San Bernardino.........January,2011/120,000.......Janaury, 2010/95,000

Yucaipa/Calimesa.....Janaury,2011/195,000.......January,2010/177,000

Just a reminder. These numbers are obtained from the CRMLS by taking the total number of closed single family home transactions, dividing by two and using the sales price of the property at the number indicated by the division into halves.

The basic merit of this technique is that the formula is used consistently so that it does indicate at what price things are better or less than.

CENTURY 21 Lois Lauer Realty - Nationally Ranked

February 8, 2011

The rankings of CENTURY 21 franchisees was recently released by the corporate headquarters. We, at CENTURY 21 Lois Lauer Realty are proud to be ranked as #19 nationally. The Orange Tree Lane branch is ranked #6 in the nation. All three branches are ranked in our region: Orange Tree #2, Yucaipa #25 and Moreno Valley #66.

These office rankings are pretty special since I am told that there are approximately 4600 offices in the U.S.

Along with the company and office recognitions, there were a number of individual agents who have achieved national ranking.

We are proud of our accomplishments and are pleased to be able to serve our Inland Empire clientele with knowledge of the real estate business and of our market area.

Closed Sales - January 2011-2003

February 7, 2011

Here are the number of closed single family residential transactions as reported in the CRMLS on February 7, 2011. These numbers generally reflect the properties that entered escrow in the November, December time period.

Banning/ Beaumont........2011/93......2010/113......2009/109......2008/46.....2007/59

.........................2006/61.....2005/68.......2004/73........2003/61

Bloomington...2011/25......2010/20.......2009/30.......2008/6........2007/6

........................2006/14......2005/12.......2004/14........2003/24

Colton.............2011/42.......2010/48......2009/47........2008/14......2007/28

........................2006/34......2005/33......2004/30........2003/52

Fontana..........2011/212.....2010/223.....2009/327......2008/59.....2007/139

........................2006/171.....2005/186....2004/178.......2003/197

Grand

Terrace..........2011/6..........2010/5.........2009/8..........2008/3.......2007/7

.......................2006/8........2005/6.........2004/11.........2003/9

Highland.......2011/47........2010/51........2009/56........2008/16.....2007/36

.......................2006/45......2005/53.......2004/54........2003/61

Loma Linda...2011/22.......2010/15........2009/15........2008/3.......2007/13

.......................2006/8........2005/18........2004/7.........2003/10

Mentone........2011/5.........2010/8..........2009/6.........2008/4.......2007/7

.......................2006/8........2005/6.........2004/5.........2003/1

Moreno

Valley............2011/191.....2010/270......2009/370.....2008/119.....2007/109

.......................2006/226...2005/214......2004/203.....2003/198

Redlands.......2011/54.......2010/43........2009/54.......2008/31.......2007/41

.......................2006/41......2005/63.......2004/56.......2003/71

Rialto............2011/104.....2010/103......2009/137.....2008/31.......2007/48

......................2006/73......2005/98........2004/90......2003/105

Riverside......2011/309.....2010/334......2009/402....2008/143.....2007/213

......................2006/293....2005/316......2004/308....2003/305

San

Bernardino...2011/189......2010/214......2009/309.....2008/74......2007/130

......................2006/203....2005/151......2004/202.....2003/193

Yucaipa

Calimesa......2011/50.......2010/41........2009/44........2008/32......2007/37

.....................2006/47......2005/32.......2004/56........2003/52

You might note that in the years when prices were going up, the volume was not really increasing. The scarcity of properties on the market was a contributing factor to the prices rising. If you refer to last week's posting of the properties currently for sale, you will also note that it remains fairly steady. Buyers are still being wary so the volume for sale is not seeming to feel the pressure of supply and demand. It will be interesting to watch as 2011 goes forward.

Recycling Around the Inland Empire

February 4, 2011


Electronic waste and old tires are difficult items to dispose of legally. Neither can be put in the landfill and it is important to keep track of sites that will accept them.


This Saturday, February 4, opening at 7:30 a.m., the city of Hesperia will be hosting a Tire Recycling Event. Each resident can bring up to nine passenger and light truck tires to be recycled. Take your tires to the Advance Disposal, 17105 Mesa Street in Hesperia. Disposal is free. For more information http://www.pavinggreenroads.com/


The Humane Society of San Bernardino Valley and Go Green Electronics Recycling Services are hosting a one day E-Waste Recycling fundraising effort on Saturday, Feb.5 from 9 a.m. Electronic items will be accepted whether they are working or not. The site is located at 374 Orange Show Road in San Bernardino. 909-386-1400, ext.224 or http://www.hssbv.org/


There will also be an e waste recycling drive in Lake Elsinore both Saturday and Sunday from 8 a.m. to 2 p.m. They do not accept appliances, but do accept computers, printers, monitors, TVs, VCRs, etc. The Lancer Foundation is organizing this effort which will be held at Lakeside High School, 32593 Riverside Drive in Lake Elsinore.

"Dated" Is Your House "Dated"?

February 3, 2011

I sit a lot of open houses and one of the comments that I all too frequently get is "This house is really dated. It needs a lot of work." The house may be crisp and clean, so I look at its features to reflect on what constitutes a "dated" house.

First off, it seems that any house that was constructed in the 1970s, 1980s, and 1990s will be perceived as "dated". Interestingly, the homes built before 1970 may escape being so stigmatised - particularly if they were built in the 1950s. They have become "mid-century modern".

One characteristic of a "dated" home is that it does not have granite kitchen and bathroom counters. Another "dated" feature is a "popcorn" ceiling. Buyers really have wanted smooth ceilings for some time. Another "dated" feature is an eight foot ceiling. Buyers like the openness of higher ceilings.

And so it goes. What buyers want changes and the homeowner with some of these "dated" features needs to recognize that prospective buyers are looking at what their costs might be to bring the house "up-to-date".

While it is a messy job, removing a popcorn ceiling is well worth the expenditure. Installing new dual paned windows is worth while. Installing a new roll-up garage door is worthwhile. Raising your ceilings is probably far too costly and may not give you much return on your expenditure. If your kitchen counters are in good shape and fit the style of your house, perhaps granite is not a great idea.

For homeowners who are thinking they might be selling soon, a walk-thru their homes and checking how "dated" it might look. Touring new tract houses will also be beneficial and learning what builders have included based on builders' research of housing trends.

Maintaining your home and making improvements along the way will do much to eliminate the negativity of "dated".

Property Tax Exmptions

February 2, 2011

Property that is owned and occupied as your principal residence as of January 1 may qualify for a homeowner's exemption of $7000. That is $7000 that will be deducted from the assessed value of your principal residence by the Tax Collector when the amount of your property tax is determined. While the tax year is July 1 to June 30, the taxes for the upcoming year are determined by the assessed value on January 1.

If you purchase a home in 2010, you should have received a form from the Assessor's office. This form allowed you to file for this homeowner's exemption. If you do not remember receiving such a form, you can contact the Assessor's office and request the form.

The filing deadline for property tax exemptions is SOON ! February 15, 2011 to be exact. For more information you can go to the Assessor's office at 172 W. Third Street in San Bernardino or on the Internet at http://www.sbassessor.org/

Listings and Pendings as of February 1, 2011

/February 1,2011

As usual I am posting the number of active listings and properties in escrow as reported in the CRMLS on February 1, 2011.

Banning/Beaumont......List/626........Pend/191.......Back-up/61.......Ratio/.403

Bloomington..................List/72...........Pend/60........Back-up/14.......Ratio/1.028

Colton.............................List/154........Pend/81.........Back-up/25.......Ratio/.688

Fontana..........................List/862.......Pend/475.......Back-up/144.....Ratio/.718

Grand Terrace..............List/29..........Pend/14.........Back-up/4.........Ratio/.621

Highland........................List/218.........Pend/94........Back-up/27.......Ratio/.555

Loma Linda...................List/62..........Pend/23.........Back-up/9.........Ratio/.516

Mentone........................List/29..........Pend/13.........Back-up/6.........Ratio/.655

Moreno Valley..............List/951........Pend/466.......Back-up/151....Ratio/.649

Redlands.......................List/304........Pend/78.........Back-up/47.......Ratio/.411

Rialto.............................List/387........Pend/204.......Back-up/57.......Ratio/.674

Riverside......................List/1484......Pend/628.......Back-up/278.....Ratio/.611

San Bernardino............List/868........Pend/391.......Back-up/111.....Ratio/.578

Yucaipa/Calimesa.......List/256.........Pend/91.........Back-up/50......Ratio/.551

There are the numbers for February 1, 2011. It is interesting to me to note that the ratios are in the most consistent range that they have been since I started tracking them. As 2011 progresses, it will be interesting to see if these ratios continue. If you remember, the ratios for 2010 were quite widely spread from 1.100 to .28. Perhaps these are the ratios that are consistent with a market that is neither "HOT" OR "COLD".