The Issue of Loan Modifications

July 31, 2012
A small article in the Wall Street Journal this morning caught my attention. The headline read: "Forgiveness of Dept Could Yield Savings." The article referenced the decision that the regulator for Fannie Mae and Freddie Mac may soon be making a decision as to whether to approve forgiveness for troubled borrowers. The Federal Housing Finance Agency has not been willing to make the decision to reduce mortgage balances and/or interest rates for underwater borrowers. A new analysis suggests that loan modifications could save the government money.
In California, with the Department of Justice ruling on borrower loan modifications, some lenders have already begun the process of accepting applications from underwater borrowers for loan modifications. Thus far there has been more talk than action although the local office of the Bank of America claims to have done many loan modifications in this past year.
It is always a difficult decision to reduce indebtedness for some and not for all. Many analists do say that loan modifications for folks who wish to stay in their homes may help stabilize the real estate market. Talking about what to do and  taking no action seemingly has prolonged the housing recession.

Buyer Alert ! The Race Is On!

July 30, 2012
I thought that our real estate market would see a turn around by fourth quarter 2012. However, I was wrong. Our real estate market is looking like it is making the turn around in third quarter 2012.
In the past month we have seen a scarcity of homes for sale and multiple buyers for each property that enters the market at a reasonable price and in decent condition. Buyers who are truly motivated to buy and agents who are watching the market are ready to act the moment a new listing appears in the multiple listing service. A day may be too long to wait before viewing the property. Amazingly, it will already be in either "pending" or "back-up" position.
If you are a serious buyer, here are a few tips:
1) Make sure your agent has phone numbers and an e mail address where you can be reached. Set an appoinment immediately.
2) Immediately find a lender, make your loan application and get a preapproval letter that essentially states that yu are preapproved for a loan only subject to appraisal and final review.
3) When making an offer, recognize that the seller amy receive other offers. Make your aoffer your very best shot.
4) It is possible that your offer may need to be over the list price so have your agent check the comprable sales. Since comparable sales may trail the market, you may have to assess how much the property is worth to you.
When the news media report that single family home sales are down they need to look behind the numbers. With so few properties listed for sale and sometimes up to sixteen offers being written on a single property, you have fifteen sales that could have taken place but cannot because there is nothing else to sell.
The race is on!

Dancing at the Riverside Plaza

July 27, 2012
Tomorrow, Saturday, July 28 has been designated "National Dance Day". This designation was created by Nigel Lythgoe, the producer of the Fox TV reality show "So You Think You Can Dance" and Rep. Eleanor Holmes,. District of Columbia.  Their stated purpose is to promote health and wellness through dancing.
"National Dance Day" wiill take place at the Riverside Plaza from 3 p.m. to 7 p.m.in front of the Regal Cinema. There will be performances by local dance groups.
Spomsors include Enterprise Media, The Press-Enterprise and PE.com
Information can be obtained at http://members.pe.com/national-dance-day-july-28-2012

It's "Oliver" Time in Redlands

July 26, 2012
Each summer, the Redlands Bowl presents a musical as one of the programs in the Community Music Associations concerts. The production of the musical involves many community members as well as many participants from other communities in Southern Califiornia. Thursday evening was once the evening of the dress rehearsal, but it now has become the opening performance. This evening, Friday evening and Saturday evening at 8:15p.m., attendees will be treated to the musical "Oliver" based on the Charles Dickens' story of Oliver Twist. This musical was chosen to celebrate the 200th birthday of Charles Dickens.
The Redlands Bowl is a unique venue as there is no admission charge. However, as the Community Music Association members are quick to point out, these concerts are not "free". They cost money to present. Fortunately there are many supporters who donate and the Bowl Associates who hold an annual fundraiser. Those who attend are also asked to contribute when the red plastic bowls are passed during intermission. Hopefully all attendees will so enjoy the presentation that they will give generously.
Bring your family, pack a picnic and enjoy a wonderful summer evening of music and dance.

What's a Buyer to do?

July 25, 2012
In the present real estate market where there is a shortage of inventory, the chances are very likely that the property you would like to buy will be a property that other potential buyers also want to buy. You find yourself in a multiple offer situation. What to do?
First, determine how much you really would like to own and live in this property.
Second, recognize that you will have to offer at least the listing price.
Third, recognize that the other buyer(s) may wnat it more and will offer above the listed price.
This is clearly a dilemma.
Buyers need to submit their best offer and hope that the seller will accept it or counter all offers so that you have another opportunity. Unfortunately this second opportunity may never occur because your competition is paying all cash and you are financing a portion of the purchase price.
Don't spend time wishing that the situation were different. If you have found a property in your price range that meets most of your wants and needs, give it your very best shot. \

Listening to the Experts

July 24, 2012
Just google "Housing Rebound" and you will be able to sample the experts' opinions on whether or not the housing market is recovering. Some say yes, it is gaining; some say no, too many upside down homeowners.
Based on the data that is showing up in our local markets, it does seem as though we are turning the corner. We are still in a rather up and down market, but certainly the volume of sales has increased. The experts who have access do lender data are proably correct that the number of upside down home owners is still in the millions. However, I heard on the radio this morning that a number of homeowners who were upside down a year ago are no longer upside down as market prices in their areas have risen. I do believe that in our area prices still have a long way to go before those 100% loan to value properties bought from 2005-2007 will have much, if any, equity.
I heard two experts yesterday on the Bloomberg TV "Market Rewind". program. They were quite pessamistic and continued to cite the "shadow inventory" of bank owned properties. This "shadow inventory" has been a constant in all the experts who have the opinion that recovery in housing is a long ways off. I suppose that when recovery will occur depends on how one defines "recovery". Those of us in real estate sales look to volume as a sign that recovery is beginning. Homeowners probably look to prices rising as to when recovery occurs. Other market watchers look to data on foreclosures, new construction, new loan applications and other data.
For most folks, watching what is happening in their local areas is a good way to track recovery.

More Evidence - A Change in Our Real Estate MArket

July 23, 2012
Multiple offers, lack of inventory, buyers writing offers, this month's real estate market has seemingly turned the corner from the "sit-on-the sideline" days of the past several years. The shadow inventory has not emerged and rather than a glut of homes for sale, we are experiencing the lowest number of active listings that I have seen in thiirty-six years of real estate.
The supply is low, the demand is high. Are prices rising? It does not yet seem that prices are rising. Perhaps buyers are still cautious about over paying. Clearly lenders and appraisers are very cautious. While buyers may overbid a listing price, the appraisal may yet reflect the value of the past market, not the present market. Hopefully, rather than the market being described by appraisers as "still declining", they will begin to call it a "stabilizing" market.
In times of transitional markets, and this is clearly a tramsitional market, it take time for buyers, sellers, lenders, appraisers and real estate agents to recognize and act on the changes.
After such a deep decline, everyone is concerned about making wise decisions. No one seems ready to return to the heated market of 2004-2006.

Outdoor Theatre Abounds

July 20, 2012
When its summertime in the Inland Empire, outdorr theatre venues are in just about every community.In San Bernardino, for the 50th year, the Junior University Musical Theatre will be presenting a musical with a cast of 80 singers and dancers accompanied by a live orchestra of nearly 30 musicians. Since 1962, Junior University has been providing the opportunity for young people to perform in a professional setting. The Wizard of Oz opens this evening at the Roosevelt Bowl in Perris Hill Park, 1001 E. Highland Avenue in San Bernardino.Tickets are $10 for adults;$5 for children and $20 for a family of 6. They may be purchased at the gate or through the website, http://www.juniotuniversity.org/. 909-389-8371.
The Redlands Bowl has begun its season with performances on Tuesdays and Fridays at 8:15 p.m. Next week will be the presentation of the annual musical. This year it will be "Oliver" which will be performed Thursday, Friday and Saturday. Admission is without charge but a free will offering is collected at intermission.
Then there is the San Manual Amphitheater, 2572 Glen Helen Parkway in Devore. This Saturday at 7 p.m., Pat Benetar will be performing. Tickets are $35-$152 with VIP packages available. http://www.livenation.com/ 800-745-3000

The Streets Are A-Bloom with Colorful Crape Mrytles

July 19, 2012
Summertime is for sure here as the Crape Mrytle trees burst into bloom. It is really a wonderful thing that many communities use these flowering trees as street trees. I had a friend visiting this past weekend from Brookly and I can tell you these trees do not grow in Brooklyn.
Crape Myrtle trees are deciduous trees that orginated in Aisa. They come in a wide range of sizes and colors. They can be shrubs or upright trees. They have multiple main stems. If left untrimmed the upright trees can grow to one hundred feet in  height. Because of their brilliant colors and versatility, they are used in Southern California landscapes.

They are fairly hardy and disease resistant, but aphids do love them. Spraying with soap water will generally control the aphid population. Pruning will keep them healthy and shapely.

The Year of the Electrical Panel

July 18, 2012
It seems that 2012 has become the year of the electrical panel. I have learned more about electrical panels in the past several months that I had known all my adult life. Perhaps it is because codes have changed or perhaps it is because the property inspections have become more and more detailed.
A few items a homeowner might want to check:
1) What type of electrical panel do you have?
2) Do you have one main panel and a sub-panel or two?
3) Do you have circuit breakers that are toggle switches or do you have push breakers?
    (Push breakers are an older style)
4) Do you have more than one wire per breaker?
5) Do you still have the screw-in fuses?
6) What is the make of your electrical panel box? If it is a Federal Pacific Panel, you need to call an electrician. These panels are no longer approved.
7) It is also a wise thing to clean out your panel box. They can accumulate cobwebs, dead spiders, and dust.
8) A good check of your electrical system may often be a helpful precaution whether or not you plan to sell your home.

Have You Looked at Your Roof Lately?

July 17, 2012
Unless our roofs spring a leak, we generally take them for granted. Homeowners may be really diligent about having their heating and air conditioning systems checked every year, but it is rare that homeowners have a roof inspection. Howver, when a homeowner becomes a seller, the buyers will usually hire a professional proerty inspector and a roof inspection will be part of the whole house inspection.
These inspectors are noting cracked, broken or sliped tiles on concrete or spanish tile roofs. On composition roofs inspectors look at the ridge line and they check to see how much pebbling surface remains or if shingles are missing. On a rock roof they check to see how much underlayment surface has been exposed and perhaps has developed cracks where moisture could intrude. On wood shingle roofs they check to see where shingles may be missing, where shingles may have shifted and cracked exposing the underlyment.
\For the home seller, buyers will request that roof items be repaired or, even more importantly, the appraiser will call out roof items and the seller may be required to obtain a roof certification. (Roof certifications are hard to obtain on a repaired roof as the contractor does not want the liability that comes with future problems.)
This may be a good time to call a roofing contractor and set up an inspection. These inspections can run from about $75 to $250 depending on the size fo the roof area and the contractor. Once rains come and leaks develop, roofers become busy and it can take longer to obtain an appointment. Now, while roofers may have less work, could be a good time to have an inspection. Knowing the state of your roof is a useful bit of home maintenance.

Mid Summer "Artnival"

July 13, 2012
Tomorrow, Saturday, July 14, from 4 to 9 p.m. Riverside will be alive with an "Artnival". This is the first ever event which is combining a carnival atmosphere with an art walk. Local artists will be displaying and selling their works. Arts and crafts workshops will be offered. There will be live performances, food and games to create the carnival environment.
The event will be held at White Park and is sponsored by the Riverside Arts Council, Division 9 Gallery and the City of Riverside. Admission is $5 per person and tickets for games are 50 cents each.
For additionanl information visit http://www.division9gallery.com/

Tracking Our Upper End MArket

July 12, 2012
This year I have been tracking the number of single family real estate sales that have closed over $400,000. As are the numbers for all closed sales, these numbers have not change substantially.
Banning/Beaumont.......Jan/1.....Feb/0......Mar/1.....Apr/0......May/0......June/0
Bloomington................Jan/0.....Feb/0......Mar/0.....Apr/0......May/0.....June/0
Colton.........................Jan/0.....Feb/0......Mar/0.....Apr/0......May/0.....Jane/1
Fontana.......................Jan/1.....Feb/3......Mar/1.....Apr/0......May/0.....June/1
Grand Terrace.............Jan/0.....Feb/0......Mar/0.....Apr/0......May/0.....June/0
Highland......................Jan/1.....Feb/1......Mar/0.....Apr/2......May/3.....June/4
Loma Linda.................Jan/1.....Feb/0......Mar/0.....Apr/1......May/1.....June/0
Mentone......................Jan/0.....Feb/0......Mar/0.....Apr/0......May/0.....June/0
Moreno Valley.............Jan/0.....Feb/0......Mar/0.....Apr/0......May/0.....June/0
Redlands.....................Jan/5.....Feb/10.....Mar/8.....Apr/6......May/9.....June/11
Rialto..........................Jan/0.....Feb/0.......Mar/0.....Apr/0......May/0.....June/0
Riverside.....................Jan/18...Feb/18.....Mar/20...Apr/20....May/23...June/24
San Bernardino..........Jan/1.....Feb/0.......Mar/0.....Apr/0......May/0......June/1
Yucaipa/Calimesa.......Jan/5.....Feb/3.......Mar/2.....Apr/4.......May/3.....June/4
Redlands, Riverside and Yucaipa/Calimesa are beginning to show some signs of life in the upper end market. Hopefully this trend will continue and spread.

Median Prices - January to June 2012

July 11, 2012
Yesterday I posted the units sold, today I am posting the median prices for the first half of 2012. I obtain the median prices by the simple mathematical process of taking the number of units reported sold, dividing by half and using the selling price of the property at the halfway point as the median.Where there is a large difference between the price at the halfway mark and the next sale, I post both numbers without the zeros.
Banning/Beaumont.........Jan/156,000......Feb/145,000......Mar/158,000......Apr/160,000
.....................................May/151,000....June/158,500
Bloomington..................Jan/110,000......Feb/132/140......Mar/175,000......Apr/145,000
....................................May/129,000.....June/149,000
Colton..........................Jan/125,000.......Feb/121,500......Mar/114,000......Apr/120,000
....................................May/139,000.....June/110,000
Fontana........................Jan/210,200.......Feb/210,000......Mar/197,000......Apr/215,000
....................................May/220,000.....June/198,000
Grand Terrace..............Jan/179,000.......Feb/145,000......Mar/199,000......Apr/170,000
....................................May/182,000.....June/194,600
Highland.......................Jan/160,000.......Feb/145,000......Mar/184,000......Apr/157,000
....................................May/225,000.....June/181,000
Loma Linda..................Jan/230,000.......Feb/185,000......Mar/195,000......Apr/230,000
....................................May/189,000.....June/185,000
Mentone......................Jan/115/130.......Feb/140,000.......Mar/129/155......Apr/118,000
...................................May/180,000......June/80,000
Moreno Valley............Jan/147,000........Feb/144,000......Mar/153,000......Apr/149,000
...................................May/152,500......June/158,900
Redlands.....................Jan/178,000.......Feb/186,000.......Mar/220,000......Apr/190,000
...................................May/220,000.....June/223,000
Rialto..........................Jan/163,000.......Feb/165,000......Mar/165,000.......Apr/175,000
...................................May/160,000.....June/163,000
Riverside.....................Jan/195,000.......Feb/180,000......Mar/190,000......Apr/190,000
...................................May/189,000.....June/208,000\
San Bernardino...........Jan/110,000.......Feb/100,000......Mar/105,000......Apr/110,000
..................................May/114,200......June/117,000
Yucaipa/Calimesa.......Jan/189,000.......Feb/160,000......Mar/170,000......Apr/180,000
..................................May/154,000......June/179,000
I am still looking for a trend. Some of the communities have trended upward in the second quarter, but generally median prices are still bouncing around.

The Numbers For Closed Sales - JAnuary -June 2012

July 10, 2012
Here are the numbers for the closed single family property sales a reported through the CRMLS for the first six month of 2012.
Banning/Beaumont.........Jan/96.......Feb/105......Mar/120......Apr/122......May/133
.....................................June/149
Bloomington..................Jan/15.......Feb/25.......Mar/24........Apr/22.........May/18
.....................................June/29
Colton...........................Jan/29......Feb/42.......Mar/24........Apr/44..........May/47
.....................................June/34
Fontana........................Jan/188.....Feb/190.....Mar/224......Apr/201........May/257
....................................June/230
Grand Terrace..............Jan/13.......Feb/8.........Mar/11........Apr/10..........May/16
....................................June/15
Highland.......................Jan/45.......Feb/46.......Mar/46........Apr/63..........May/79
....................................June/79
Loma Linda..................Jan/16.......Feb/12.......Mar/21........Apr/12.........May/21
....................................June/15
Mentone.......................Jan/7.........Feb/16.......Mar/13........Apr/10........May/8
....................................June/8
Moreno Valley.............Jan/195......Feb/174.....Mar/244......Apr/199......May/246
...................................June/219
Redlands......................Jan/49.......Feb/55.......Mar/80........Apr/65........May/72
...................................June/98
Rialto...........................Jan/97.......Feb/85.......Mar/118......Apr/103......May/113
...................................June/110
Riverside.....................Jan/323.....Feb/364......Mar/405......Apr/352......May/432
...................................June/401
San Bernardino............Jan/189......Feb/133.....Mar/210.....Apr/175......May/204
...................................June/195
Yucaipa/Calimesa........Jan/55.......Feb/57........Mar/78.......Apr/61........May/73
...................................June/79
As you can note, most of these communities are seen increased sales volume, It would be nice if they all showed a consistent upward trend such as can be seen in the Banning/ Beaumont numbers. However, the numbers to show that buyers have once more entered our real estate
market.

Closed Sales - June 2012

July 9, 2012
Below are the numbers for the single family properties that closed escrow in June 2012 as reported through the CRMLS. I am also including the numbers for June 2003 and June 2006.
2003 was peobably the beginning of a rising real estate market. 2006 has pretty much been considered the peak.
Banning/Beaumont..........2012/149......2003/89......2006/131
Bloomington...................2012/29........2003/19......2006/23
Colton............................2012/34........2003/57......2006/66
Fontana..........................2012/230......2003/224....2006/244
Grand Terrace................2012/15........2003/9........2006/11
Highland.........................2012/79........2003/70......2006/65
Loma Liinda...................2012/15........2003/18......2006/20
Mentone.........................2012/8..........2003/11......2006/9
Moreno Valley................2012/219......2003/209....2006/299
Redlands.........................2012/98........2003/82......2006/79
Rialto..............................2012/110......2003/119....2006/116
Riverside.........................2012/401......2003/372....2006/419
San Bernardino...............2012/195.......2003/233....2006/231
Yucaipa/Calimesa...........2012/79.........2003/81......2006/77
As you can see, the numbers are not substantially different in up markets. the numbers are always influenced by the number of properties being offered for sale. At the present time, we are really experiencing a shortage of homes for sale.

Looking for Mor Bar-B-Q ?

July 6, 2012
If you are still wishing you could have more Bar-B-Q and some more old time fun, you can check out the Los Rios Rancho Hometown Jamboree. If you have never visited Riley's you are in for a treat. There will be music by the Riley's Mountaineers, and an atmosphere that harks  back to our Revolutionary days.
The Jamboree will be from 6 to 9 p.m. on Saturday. It is a real family bargain with adult admission at $15 and 12 and under $10. For more information you can call 909-797-1005 or on the web, www.LosRiosRanch,com

It's Pool Time in Southern CAlifornia

July 5, 2012
Now is the season when a swimming pool becomes a really nice attraction for buyers. Even if they are not avid swimmers, the ambiance of a sparkling pool can certainly help sell a property.
Since uch of our inventory is made up of homes that are older than ten years, the pools may also be older. For sellers of properties with pools it is important to consider some iomprovements to the pool or the pool area.
Pool plaster, over time, can become discolored. The tiles can become coated with calcium deposits. Decks can crack and pool equipment can wear out. Since the energy crises of the late 1970s and forward, many owners ceased using their pool heaters. In the disclosures which a seller completes we often see the comment "Don't know if the pool heater works. We don't use it."
It is a good idea to have a professional pool servicing company check out your pool prior to putting your property on the market. You will then know if it might be a useful expenditure to refurbish your pool. While an appraiser may not judge a refurbished pool to be more valuable than a dated one, buyers do.
Since a pool can be a central focus point in a rear yard, making it sparkle can add value.

Celebrate Our Country's Birthday

July 4, 2012
Today is the day all Americans celebrate the founding of "the land of the free and the brave". It has become traditional for communities to have parades, outdoor festivals and firework displays. Our Southern California region is no exception.
Crestline begins its Jamboree Days with a Community picnic and continues through Saturday when they will have their fireworks display over Lake Gregory.
Redlands will begin with a parade at 10:30 a.m. and there will be music, food and games at Sylvan park. The celebration will end with a fireworks display at the university of Redlands stadium.
San Bernardino will have a 66ers baseball game at the San Manuel Stadium followed by a fireworks display.
Check your local newspaper or web site and you will get information on your local celebration.
Hang your flag or your bunting and give thanks for all the blessing of a democracy that you enjoy.

Listings, Pendings, Back-ups July 1, 2012

Junly 2, 2012
Yes the real estate market has become very active. The ratio of properties that have accepted sales contracts has doubled and , in some areas, tripled over the ratios of last year. Any property that is listed at a realistic price and is in reasonable condition will be sold almost immediately. Here are the numbers so that you can judge for yourselves.
Banning/Beaumont..........List/258......Pend/237......Back-up/135......Ratio/1.442
Bloomington...................List/26........Pend/58........Back-up/15........Ratio/2.808
Colton............................List/56........Pend/77........Back-up/34........Ratio/1.982
Fontana..........................List/261......Pend/541......Back-up/243.....Ratio/3.004
Grand Terrace................List/21........Pend/31........Back-up/12.......Ratio/2.048
Highland.........................List/89........Pend/121......Back-up/65.......Ratio/2.090
Loma Linda....................List/15........Pend/29........Back-up/26.......Ratio/3.667
Mentone.........................List/8..........Pend/21........Back-up/15.......Ratio/4.500
Moreno Valley................List/239......Pend/530......Back-up/295.....Ratio/3.452
Redlands........................List/145.......Pend/113......Back-up/90.......Ratio/1.400
Rialto.............................List/102.......Pend/235......Back-up/99.......Ratio/3.275
Riverside........................List/519.......Pend/871......Back-up/406.....Ratio/2.461
San Benradino...............List/280........Pend/416......Back-up/163.....Ratio/2.068
Yucaipa/Calimesa..........List/124........Pend/127......Back-up/80.......Ratio/1.669