Great Weekend to Check Out the Latest in Home Improvements

October 28, 2011


The Ontario Convention Center is host to the Inland Empire Home Show. The show opens at 12 p.m. today, Friday, October 28. The hours are 12 p.m. to 7 p.m. Friday, 10 a.m. to 7 p.m. Saturday and 10 a.m. to 6 p.m. on Sunday. The cost of admission is $7 for adults, $5 for seniors (62+) and under 18 year olds are free with a paid admission. The military is also free with an ID.


These home show events are great ways for home owners and prospective home buyers to check out all the latest in home improvements. It is also a good way to meet vendors and check out there wares.


Learn about the latest in window replacement, hot water tanks, solar systems. Find out what decor is now popular. Walking around a home show can be a pleasant way to spend some time and educate yourself about what types of home improvements are being marketed.

"It's Time to Buy That House"

October 27, 2011


"It's Time to Buy That House" was the headline for an op-ed piece in the Wall Street Journal's Saturday/Sunday edition of October 15-16, 2011. Obviously it caught my attention since I am a real estate sales professional. The gist of the article is that prices of houses have come down to a level that is making a purchase competitive with what a renter would be paying in monthly rent.
What makes this time a great time to purchase a home is not only the affordable prices but the historically low interest rates that are available for 30 year amortized loans. Also, as long as the FHA down payment requirement remains at 3.5 percent of the purchase price, a buyer of a median priced house in our market would only need approximately $7,500. Of course there are other cost s in purchasing a home such as loan origination fees, mortgage insurance, escrow fee, title insurance and homeowner's insurance.


Buying a home will probably be a person's largest purchase, we all need a place to live. The writer of this piece makes the point that right now you might be able to purchase a home and actually have lower monthly payments than the rent payments you are presently making.

Real Estate Owned (REO) Are They the Shadow Inventory?

October 26, 2011


I recently received a news letter from DSnews.com that cited a study done by CoreLogic. The study looked into what was the final resolution for properties that the banks repossessed. I quote from the article.


"In 2006, just as the housing bubble popped, over 355,000 properties proceeded through the foreclosure auction. CoreLogic's data shows that approximately 34 Percent (122,000) were successfully bid on by an investor. The remaining 66 percent (233,000) went back to the banks as REO properties.


Of the properties that went into REO, CoreLogic reports that90 percent (210,000) were liquidated in REO sales to third party buyers.Nearly half of these sales took six months or less to complete, but 21 percent took 12 months or longer."


" CoreLogic also found that only 2 percent of the bank-owned homes bought with a mortgage in 2006 have since been foreclosed on again and made an appearance as REO. "


Admittedly the data studied was from 2006 and we are now in 2011 with foreclosures still apart of our real estate inventory. Perhaps the new and revised HARP plan will have an impact and underwater homeowners will be able to live without the threat of foreclosures impacting their lives.

Garden Fountains and Algae

October 25, 2011


I believe that a while back I mentioned putting copper pennies in your garden fountain. I had a new fountain installed last March and I have my own fun of tosses into the fountain any bright copper penny I receive. They are really shiny and bright for a week or so. Eventually they do turn brownish or greenish. I just keep tossing new ones and the copper glint is really lovely.


However, the best part of my penny tossing is that they do seem to keep algae from growing. The previous fountain that I repaced had gotten really filled with slimy threads of algae. While the algae is green and not totally unattractive, it certainly was not the look that I wanted.


So, when I came across the page in Jerry Baker's book "Cleaning Magic" I was intrigued about the possibility that plain, old copper pennies could keep the water in my fountain clean. Well, the fountain has been there over six months and thus far not a trace of algae! The water remains clear and I am thrilled to toss those bright and shiny copper pennies into the fountain.


I do not know if the pennies will get rid of already existing algae, but they have been a satisfactory control in my new fountain.


If you try it, let me know if it works for you.

Another Plan from the Government

October 24, 2011


On my way to work this mornings, I heard a news commentator announce that the government is launching a new program to help underwater home owners. What I heard was that this plan will eliminate appraisals and will reduce the interest rate paid on the mortgage to current rates. I did not hear whether the proposal includes reducing the amount of the loan so as to eliminate the underwater part of so many homeowners.


One criteria for participating in this new program is that the homeowners monthly payments on the existing loan must be current - no delinquencies. This could be a major hurdle for some homeowners as all previous conversation with their lenders made missing payments a criteria for eligibility in a loan modification or short sale program.


I am sure more details will be forthcoming. Since this is at least the third, probably the fourth, attempt of the government to keep present homeowners in their homes, we can hope that the government has learned what won't work.

Oktoberfest in Rancho Cucamonga

October 21, 2011


The weather is delightfully October-y. For family fun, the Rancho Cucamonga Rotary Club is putting on a food truck Oktoberfest. The hours will be from noon until 6 p.m on Sunday, October 23 at Etiwanda Gardens, 7576 Etiwanda Avenue in Rancho Cucamonga.


There will be the traditional Oktoberfest beer garden, German food and live bands playing great oom pah pah music. There will be food trucks offering a variety of foods. Dim Sum Truck, Me So Hungary, Crepe'n Around and Waffles de Liege.


The event is a real bargain at $5 with children under 12 free. For tickets and more information http://www.rotaryoktoberfest.org/

10:20 A.M. Great California ShakeOut

October 20, 2011


At 10:20 a.m. today, Thursday, October 18, Californians will participate in the 2011 Great California ShakeOut. This is state wide earthquake drill. Businesses, schools and organizations have signed up to participate. Police and fire departments will participate in recovery exercises.


For those of us who are not signed up to officially participate, we can still pay attention to where we are at 10:20 a.m. and take note of our surroundings. Should we drop under a heavy table or desk? Are we too near a large window? Are there books that could fly off the shelves? Check it out.


Experts believe that the majority of earthquake injuries are caused by unsecured objects. Moving heavy objects to lower shelves is a good strategy. How is your TV secured? And that water heater - by law it must be strapped both top and bottom to the wall.


Do you have an earthquake safety kit? Some institutions are giving out free ones today.


And most importantly, do you have a disaster plan that lets your family know how to contact each other. It is often suggested that you have an out of state contact that you all can reach to report your status.


The Great California ShakeOut is a massive attempt to educate Californians on earthquake survival. Pay attention. You might save your life.

Proof That Real Estate Markets Are Cyclical

October 19, 2011

I have been doing a massive personal project of sorting through all the boxes of saved stuff in my garage. I came across a booklet published by the California Association of Realtors. The head line caught my attention as it is so similar to editorials and news articles of published this year. When I opened the pamphlet, I found that it had been published in 1989.

Do you remember 1989? We were in a market of rising prices and there were fears that the next generation would never be able to afford a home.

The booklet had some predictions about California demographics and growth that were eerie in their accuracy. Much of the analysis could have been written in 2005.

Interestingly, the issue that most concerned C.A.R. in 1989 was the rise in the cost of housing that priced many Californians out of the market. However, as in 2005, the market made an adjustment and in the mid 1990s, prices dropped, foreclosures were prevalent and the bottoming out of that cycle probably occurred around 2001-2002.

Just reading the analysis and then knowing what occurred in the next 22 years substantiates my belief that this market will recover, but it will take time.

Good Time to Check Your Furnace

October 18, 2011


I know that we are having a bit of a heat wave, but it is the middle of October and the evenings are becoming cooler. In a very short time, you may want to switch your heating and cooling system from "cool" to "heat". If you conserved energy and shut off the pilot light on the furnace for the summer, it is time to relight it. The Gas Company provides this service and will check out your equipment for gas leaks.


Of course, it is also a great idea to call your local heating and air conditioning contractor and have them service your system. They can change the filters and alert you to any potential issues. It is amazing how easy it is to ignore servicing heating and air conditioning systems as long as they are functioning as they should. It is when there is a failure, that the panicky call goes out to the contractor. Since often problems will arise when a system is first turned on, the contractors can be busy and it may take time for your needs to rise to the top of the service call list. Calling now puts you ahead of the crowd.

HAMP, HARP,HELP and now HOME

October 16, 2011


The government has enacted a series of foreclosure-avoidance programs, but with seemingly little success. The rules and regulations have made it very difficult for upside down homeowners to qualify for either a loan modification or a loan refinance. Most of these upside down homeowners have no equity because the decline in value has taken equity away. If a refinance program requires that the borrower have equity in the property, it obviously will not work.


In the Los Angeles Times on Sunday, October 16, a headline caught my attention "Bill would end penalty to tap 401(k) to avoid foreclosure." Co-written by a Senator and a Representative, the bill would allow owners to pull out up to $50,000. The money could be used in a lump sum to pay down the delinquent mortgage balance or to fill shortfalls caused by a reduction of household income. Titled the HOME act, short for Hardship Outlays to protect Mortgage Equity Act, the plan proposes to eliminate the 10% penalty charged when there is an early withdrawal of funds from a 401(k).


In retrospect, it may be too bad that the government didn't use the TARP (Troubled Asset Relief Program) to have banks paid only the amount used to actually reduce the outstanding balance of a loan or the interest rate. Homeowners might have then made payments and thereby stem the flood of foreclosures. Banks would not have been allowed to use government funds to enrich themselves.


It does seem that we are entranced by acronyms rather than a program that could adjust to the reality of this housing recession.

It's Apple Season in Oak Glen, CA

October 14, 2011


The apple picking in Oak Glen, California began in September and will continue through Thanksgiving. With our beautiful fall weather this weekend, it will be perfect to visit Oak Glen. At Riley's Farm you can pick a bag to take home with you. Bags are weighed and you pay by the weight. Riley's also has their log cabin and a restaurant to enjoy. Some of the other vendors have apples by the bushel and the peck for purchase. Laws is a famous stop for apple pie.


At approximately 6000 foot elevation, the temperatures will be pleasant. You can certainly enjoy a bit of old fashioned Americana.


For information about Oak Glen http://www.oaktreevillageoakglen.com/

The Over $400,000 Real Estate Market

October 13, 2011


In keeping tabs on what is happening in our local real estate markets, the number of closed transactions with a selling price over $400,000 is on of the data points that I track. In 2006 and 2007, Riverside, Fontana and Redlands had median prices over $400,000. We are a long ways from that median price, but Riverside, Redlands, Yucaipa/Calimesa and Highland have had sales over $400,000 the remaining ten of the fourteen communities that I track are still without sales in that range. In this third quarter of 2011, Banning/Beaumont and Colton did each post one or two over $400,000 sales. The total in September for the fourteen communities was thirty-two, down from the forty-two posted in August but up from the twenty-eight posted in July.


As I track the numbers, it is interesting to see that they seem to confirm the general opinion that we are bouncing along the bottom of the housing recession. We are not going up nor are we going down.

Median Prices - Closed Transactions January Thru September 2011

October 12, 2011


These are the median prices of closed transactions as calculated by using the data in the CRMLS. The methodology is simplistic. I take the total number of closed sales reported, divide by 2 and the price of the property at that halfway point is the price I use as the median. I omit the "000" so you will need to remember that the number $150 is actually $150,000.


Banning/Beaumont.......Jan/175.......Feb/155.......Mar/155.......Apr/155.......May/148


..........................................June/165.....July/161......Aug/165.......Sept/151


Bloomington...................Jan/165.......Feb/130......Mar/149.......Apr/150.......May/125


..........................................June/150.....July/155.....Aug/140.......Sept/150


Colton..............................Jan/93.........Feb/122......Mar/149.......Apr/110........May/117


..........................................June/130.....July/110.....Aug/120.......Sept/116


Fontana...........................Jan/194........Feb/195.....Mar/211........Apr/200.......May/185


.........................................June/215......July/205....Aug/200.......Sept/200


Grand Terrace................Jan/203.......Feb/242......Mar/200......Apr/205.......May/180


.........................................June/165.....July/220......Aug/215.......Sept/222


Highland.........................Jan/162.......Feb/180.......Mar/155.......Apr/165......May/185


.........................................June/182.....July/163......Aug/200.......Sept/165


Loma Linda....................Jan/250.......Feb/219.......Mar/220......Apr/200......May/235


.........................................June/250.....July/220.....Aug/250.......Sept/210


Mentone.........................Jan/157........Feb/80........Mar/85.........Apr/129/154.....May/95


.........................................June/95.......July/144......Aug/159/235......Sept/93/170


Moreno Valley...............Jan/155.......Feb/154........Mar/148.......Apr/148.......May/148


.........................................June/153.....July/157.......Aug/159........Sept/155


Redlands........................Jan/218........Feb/203.......Mar/205.......Apr/202......May/220


........................................June/225......July/205......Aug/215........Sept/196


Rialto.............................Jan/160.........Feb/165.......Mar/152........Apr/160......May/164


.......................................June/158.......July/165......Aug/170........Sept/161


Riverside......................Jan/180.........Feb/195.......Mar/187........Apr/189.......May/190


......................................June/189.......July/190......Aug/200........Sept/195


San Bernardino...........Jan/122.........Feb/105.......Mar/95..........Apr/109.......May/105


......................................June/99.........July/123......Aug/100........Sept/105


Yucaipa/Calimesa......Jan/210..........Feb/190......Mar/181.........Apr/198.......May/180


.....................................June/188........July/195......Aug/212.........Sept/165


For the most part the median prices continue to fluctuate in a relative small range. We will keep an eye on Redlands and Yucaipa.

Monthly Closed Sales - 2011

October 11, 2011




Yesterday I posted the numbers for the closed single family sales for the month of September from 2003 to 2011. Today I will post the numbers for each month in the present year. This will allow you to see the trend for the year 2011.




Banning/Beaumont........Jan/93........Feb/84......Mar/147.....Apr/129......May/121......June/147


...........................................July/152/....Aug/114....Sept/134


Bloomington...................Jan/25.........Feb/15......Mar/20.......Apr/32.......May/11.........June/32


..........................................July/25........Aug/18......Sept/20


Colton..............................Jan/42.........Feb/36......Mar/28......Apr/44........May/46........June/35


.........................................July/49.........Aug/50.....Sept/41


Fontana...........................Jan/212.......Feb/177.....Mar/165.....Apr/246.....May/211......June/287


.........................................July/228......Aug/239....Sept/242


Grand Terrace................Jan/6..........Feb/9.........Mar/11.......Apr/10........May/8.........June/13


.........................................July/10........Aug/11.......Sept/11


Highland.........................Jan/47........Feb/37.......Mar/55......Apr/62.......May/56.......June/54


.........................................July/55.......Aug/62......Sept/66


Loma Linda....................Jan/22........Feb/12.......Mar/15......Apr/12........May/22......June/18


.........................................July/14.......Aug/15.......Sept/13


Mentone.........................Jan/5..........Feb/6.........Mar/12......Apr/4..........May/11.......June/7


.........................................July/11........Aug/6........Sept/11


Moreno Valley...............Jan/191.......Feb/159....Mar/273....Apr/246......May/232...June/269


.........................................July/249.....Aug/253....Sept/236


Redlands.........................Jan/54.......Feb/44.......Mar/55.....Apr/67........May/67......June/75


.........................................July/56.......Aug/78.....Sept/65


Rialto..............................Jan/104......Feb/66......Mar/132....Apr/116......May/108....June/116


........................................July/111.......Aug/121....Sept/109


Riverside........................Jan/309......Feb/257....Mar/368....Apr/383....May/418....June/398


........................................July/371......Aug/451....Sept/411


San Bernardino.............Jan/289......Feb/141.....Mar/213....Apr/220.....May/202....June/230


.......................................July/197.......Aug/192....Sept/182


Yucaipa/Calimesa.......Jan/50.........Feb/41.......Mar/66......Apr/58.......May/50......June/68


.......................................July/49........Aug/78......Sept/67


In March it look as though we were seeing a nice jump in volume, but it did not continue the upward trend. However, the sales continue to produce fairly consistent numbers. Perhaps if we maintain this volume through the fourth quarter of 2011, we can feel that the worst is behind us.

Closed Transactions - September 2011-2003

October 10, 2011


This will be the week for sharing the data that I glean through the CRMLS about closed transactions in the month of September. Today's posting will be the number of closing in September 2011 and for each previous September back to 2003.


Bannning/Beaumont..........2011/134......2010/123......2009/162......2008/134......2007/43


................................................2006/87.......2005/110......2004/94.......2003/76


Bloomington........................2011/20........2010/19........2009/39........2007/27........2007/9


...............................................2006/17........2005/29.......2004/24........2003/18


Colton...................................2011/41........2010/49........2009/52........2008/43........2007/11


...............................................2006/45.......2005/52.......2004/54........2003/51


Fontana................................2011/242......2010/270.....2009/331......2008/357......2007/61


..............................................2006/191......2005/303.....2004/269......2003/225


Grand Terrace....................2011/11.........2010/6..........2009/10.........2008/12........2007/4


.............................................2006/14........2005/28.......2004/12.........2003/10


Highland............................2011/66.........2010/53........2009/72........2008/59........2007/13


.............................................2006/50.......2005/92........2004/49........2003/60


Loma Linda.......................2011/13.........2010/26........2009/18.........2008/20.......2007/2


............................................2006/15........2005/13........2004/8...........2003/16


Mentone............................2011/11.........2010/4..........2009/8...........2008/9.........2007/3


............................................2006/8.........2005/3..........2004/7...........2003/5


Moreno Valley.................2011/236.......2010/259......2009/351.......2008/434.....2007/77


...........................................2006/188......2005/370......2004/244......2003/267


Redlands..........................2011/65.........2010/61..........2009/62........2008/62........2007/43


..........................................2006/56.........2005/83........2004/87.........2003/90


Rialto...............................2011/109........2010/102.......2009/122.......2008/142......2007/36


..........................................2006/83........2005/142........2004/107......2003/119


Riverside.........................2011/411........2010/365.......2009/453.......2008/487......2007/137


..........................................2006/389......2005/540......2004/404.......2003/393


San Bernardino..............2011/182.......2010/197........2009/287.......2008/279......2007/72


..........................................2006/189......2005/244.......2004/255.......2003/244


Yucaipa/Calimesa.........2011/67..........2010/53.........2009/41..........2008/51.......2007/29


.........................................2006/54.........2005/69.........2004/79.........2003/64


There you have the numbers. It is easy to note that in 2007, the real estate market had almost disappeared. I watch these numbers to track such major changes. We are all watching to see if they will be indicative of the next up tick in sales.

A MAZE ing Fun

October 7, 2011


This October there are several opportunities to experience the fun of walking though a corn maze. I am aware of at least three corn mazes that are available along with pumpkin patches, pony rides, petting zoos, tractor pulls and all varieties of fun.


Live Oak Pumpkin Patch is open from 9 a.m. to 9 p.m. daily during the month of October. it is located just off the 10 freeway at live Oak Canyon Road. Admission to the pumpkin patch is free but some of the other attractions do require the purchase of a ticket. For information: 909-795-8733 or http://www.liveoakcanyon.com/


Peltzer Farms at 39925 Contento in Temecula . It is open from 9 a.m. to 8 p.m. during the month of October. It is also free but some of the attractions will require tickets. 951-695-1115 or http://www.peltzerfarms.com/


Big Horse Ranch Corn Maze at 33320 Temecula Parkway in Temecula is the site of an 11 acre corn maze. The maze opens this Saturday along with several mini mazes. Admission is $9-$13 with a $3 charge for parking. The hours are 1-5 p.m. Monday - Friday, 10 a.mm. to 4 p.m. Saturday and Sunday. The dates are October 8 to 31. 951-389-4621 or http://www.bighorsecornmaze.com/.

Home Values and the Internet

October 6, 2011


Back in about 2003, Zillow started a site that would calculate the value of a property. The visitor to the site only had to enter the address and a "zestimate" of its market value would be posted. It was a real hit with the public. Real estate agents learned quickly that they also needed to check Zillow before they went on a listing presentation because many of their prospective clients had already checked out the "zestimate" on their home.


Since 2003 there have been a proliferation of home valuation sites including a button on Realtor.com that allows you to enter an address and receive an email of the valuation. Like many of the other sites, you must register and surprisingly an agent will contact you.


The real question with these sites that have developed algorithms that come up with a value is that they have not seen either the subject property nor the comparables. They simply use mathematical calculations. This can be a good starting place, but to understand your local market values, there is nothing better than an experienced real estate agent.


Establishing a market value for a unique piece of real estate is not a science, it is an opinion based on knowledge and experience. Ultimately, the buyers and sellers in a specific locale with establish the value when the negotiate a final selling price.

A Comparaison of October 2008 and October 2011

October 5, 2011


Although I have been posting this blog since October 31, 2006, I did not start to post the numbers for the active listings, pendings and back-ups until 2008. I went back into the archives of the blog posts and found the October posting the gives the numbers for active listings and pending sales. I did not at that time list the numbers for the back-up transactions. My reason for looking back is to compare today's numbers with the numbers when our local real estate market was definitely in transition from boom to bust.


What immediately caught my attention was the much larger number of active listings. Just look at some of the larger communities.


Riverside....................List/2008/2373.......List/2011/1174


San Bernardino.........List/ 2008/1924......List/2011/658


Fontana......................List/2008/1681.......List/2011/670


Moreno Valley..........List/2008/1793........List/2011/768


Redlands....................List/2008/366.........List/2011/257


You can note that the number of active listings is less than half the number of properties for sale in 2008.


The total number of active listings for the fourteen communities that I track was 11,082 in 2008 compared to the total in 2011 of 4955. It is also interesting to note that the total number of pending sales reported for the fourteen communities in 2008 was 3,735 compared to 3058 in 2011. The ratio in 2008 was .337 and 2011 it was .617.


One wonders if the volume of active listings increase would we be making more sales?

Listings, Pendings, and Back-ups - October 1, 2011

October 3, 2011


Here we are entering the fourth quarter of 2011. Amazingly, we have managed to bounce along the bottom with no major ups or downs. The numbers, as you can note, have not varied much from month to month. The good news is that the ratio of properties in escrow to properties being offered for sale has increase with none of the fourteen communities that I track being under fifty percent.


Banning/Beaumont........List/452......Pend/210......Back-up/100......Ratio/.686


Bloomington....................List/64........Pend/52........Back-up/22........Ratio/1.156


Colton...............................List/96........Pend/98........Back-up/38........Ratio/1.417


Fontana............................List/670......Pend/508......BAck-up/221......Ratio/1.088


Grand Terrace.................List/40........Pend/15.........Back-up/8..........Ratio/.575


Highland..........................List/163......Pend/98.........Back-up/61........Ratio/.975


Loma Linda.....................List/44........Pend/31..........Back-up/22.......Ratio/1.205


Mentone..........................List/32........Pend/18..........Back-up/12.......Ratio/.938


Moreno Valley................List/768......Pend/468.......Back-up/193.....Ratio/.861


Redlands.........................List/257.......Pend/86.........Back-up/56.......Ratio/.553


Rialto...............................List/306......Pend/227.......Back-up/64........Ratio/.951


Riverside.........................List/1174.....Pend/724.......Back-up/404......Ratio/.961


San Bernardino..............List/658......Pend/417.......Back-up/130.......Ratio/.831


Yucaipa/Calimesa.........List/234.......Pend/106......Back-up/63.........Ratio/.722


These numbers are the result of my counting the properties that are reported through the CRMLS.. I try to be consistent and count the numbers on the first day of each month as the numbers do change on a daily basis.