Leap Day

February 29, 2012


Generally speaking, there is no big celebration scheduled for "Leap Day". It is mainly a technical adjustment to our calendar to make our time consistent with the rotation of the earth around the sun. We think of a year as having 365 days, but according to scientists, our year is really 365.25 days. Hence the need every four years to add one full day.


There are celebrations for all the folks who were born on February 29. Once every four years they actually have a "birth" day.


Folklore has it that there could be a role reversal on leap day and females could ask men to marry them rather than the tradition of men popping the "Will you marry me?" question. In the twenty-first century, popping the question no longer an issue.


Here are a few "leaps" that could be made this year:


1) "Leap" into the housing market; buy a home.


2) "Leap" into a renovation project that enhances your home.


3) "Leap" into any project that will make 2012 a special year to remember.


The last leap year was memorable as the year of the financial bust. Lets make this leap year the year of the financial recovery.

How Long Before I Can Purchase Another Home?

February 28, 2012


Lenders have put out some guidelines for prospective home buyers who have had their credit dinged during this recession by foreclosures, short sales or bankruptcies. Remember that these are just guidelines and that some lenders may still want to wait until a prospective borrower has sufficiently rebuilt a credit score. Paying bills on time and not running up debt on credit cards will always be helpful.


Here are the guidelines:


FHA loan


Chapter 7 Bankruptcy - 2 years Deed in Lieu - 3 years


Chapter 13 Bankruptcy - 12 months Short Sale - 3 years


Foreclosure - 3 years





Conventional Loan


Chapter 7 Bankruptcy - 4 years Deed in Lieu - 7 years


Chapter 13 - 4 years Short Sale - 2-7 years (based on loan to value)


Foreclosure - 4-7 years (based on loan to value)





VA


Chapter 7 Bankruptcy - 2 years Deed in Lieu - 3 years


Chapter 13 Bankruptcy - 12 months Short Sale - 3 years


Foreclosure - 3 years

Predicting the U.S. Housing Recovery

February 27, 2012





Ever since the housing bubble burst, folks have wanted to know when the real estate market would recover. Last year, in his letter to the Berkshire Hathaway shareholders, Warren Buffett predicted that the U.S. housing recovery would begin within the year and help fuel economic growth. Buffett, when queried about this prediction said he was "dead wrong". However, he went on to add that "People may postpone hitching up during uncertain times, but eventually hormones take over. An while 'doubling up' may be the initial reaction of some during a recession, living with in-laws can quickly lose allure."





O.K., so when will the housing recovery begin? It is possible that we will only be able to pinpoint the beginning after it has been on its way for a while. Not being an economist, I do not know the statistical markers that signal a recovery. However, January and February give some credence to Buffett's quip. We are seeing more young couples making appointments with our agents to begin the house hunting process. Yesterday, at my open house, more than half of the visitors were young folks who were considering purchasing a home in the next twelve months.





Good signs.

It's "Oscar" Weekend

February 24, 2012


Sunday is the big day for the Hollywood movie industry but you can find celebrations around the Inland Empire. The Fox Event Center in Redlands at the former historic Fox Theater is hosting the 84th Annual Academy Awards Presentation. This presentation is free and includes the Academy Awards Ceremony broadcast to be shown on their big screen.


The doors of the Fox event Center will open at 4 p.m. on Sunday, February 26, 2012. It is recommended that guests wear glamorous attire. There will be a contest for the best dressed. There will be raffles as well as prizes for the most accurate predictions of the winners.


Champagne, wine and beer may be purchased. You may also purchase dinner for $25.


Reservations may be obtained by going to http://www.awardsfox.evenbrite.com/


What a fun time to dress up and remotely participate in this celebration of the movies.

Are We Having a "Housing Spring"?

February 23, 2012




It is a real pleasure to open the newspapers and see headlines such as "Housing sales improve", or "Better year is seen for housing".Then there is the chart in the Wall Street Journal that tracks home resales since 2010. It shows that we are really leveling out in the number of units reported sold.




According to an article written by Derek Kravitz of the Associated Press in The Sun newspaper, "Sales of previously occupied homes are at their highest level since May 2006. ...And the supply of homes fell last month to its lowest point in nearly seven years..."




The same article was published in The Press Enterprise newspaper. with a sub title "Sales have risen nearly 13 percent over the past six months. More first time home buyers are making purchases."




I will be doing the numbers for active listings and properties in escrow next week. We know that our inventory is low. It will be interesting to note the ratio between those that have accepted offers (in escrow) and the active listings. We have seen that properties that are well priced are having offers within thirty days or less.




Both prices and the low, low interest rates are encouraging buyers to re enter the real estate marketplace. We are even seeing more activity in the move up buyer market.




While it is too early to celebrate the turn around, it does feel as though we are having a "Housing Spring".

The Large Banks Getting Another Deal

February 22, 2012


Just in passing - according to history, it's George Washington's real birth date. How would our First President have solved the continuing housing slump? Obviously too much has changed economically since the 1780s, but maybe he would have focused on a solution rather than on politics.


In the 21st century, the government's answer to the problem is to throw more billions at it. The settlement with the lenders that was announced this month is to give the large banks monies to be used to modify loans for homeowners who are in trouble due to loans that had increases in interest rates or loans that are greater than the present value of the home. Hopefully when the details of the deal are worked out, the banks will be required to use them to reduce loan interest rates or balances and be reimbursed for the loss. Perhaps this could speed up our short sale processes as well.


Those of us who have been in the real estate business for other down markets would love to go to a Congressional hearing and suggest ways to improve the short sale processes.

Gardening Chores in February Bring Spring Delights

February 21, 2012


We are a tad past mid February, but there is still time to do the chores that will make your garden thrive. You may have noticed all the tree trimmers out and about. Flowering trees should not be pruned until they are through with their Spring blooms. Roses, of course need to be pruned to keep them healthy and for a great crop of blooms as they revitalize.


We have had some really windy days and leaves that sit on the ground can be breeding spots for all sorts of garden pests and diseases. Rake them and keep the ground cleared around shrubs, especially camellias.


Continue the war against slugs and snails. Now is also the time to use a dormant of lime sulfur spray for fruit and deciduous trees and shrubs.


Check out your local garden store for bulbs, perennials and annuals.


Now is also a good time to apply a high nitrogen fertilizer to you green up your lawn. Water thoroughly.


If your gardenia leaves have turned yellowish, one tablespoon of Epsom salt per gallon of water will help them recover the shiny green color of the leaves.


Well maintained landscaping will be a joy for you, but will also enhance the value of your property.

Let's Go Fly a KIte

February 17, 2012


It is not just because we have had a lot of windy days this past week that kite flying comes to mind. Sunday, the Edward-Dean Museum and Gardens in Cherry Valley will be hosting the annual Kite Festival and Basant Celebration. We know what kites are but we may not be familiar with "Basant". It is the first month of the year on Indian and Chinese Calendars. The public is invited to the presentation by the Indian Association of Inland Empire and the Virsa American Punjabi Club of kite making, kite flying, poetry reading, dancing and other activities associated with the celebration of this holiday.


The event is free and will be held from 10 a.m. to 4 p.m. on February 19, 2012. The Edward-Dean Museum and Gardens are located at 99401 Oak Glen Road in Cherry Valley.


Additional information: 951-845-2626 or 909-844-1600

California Living Trusts

February 16, 2012


The use of a living trust as a financial planning tool has become quite commonplace. Often titled "The (Family Name) Living Trust" they are often established as a means to avoid having to go through a probate process in the event of the death or incapacity of an owner of the family assets. There are many on-line offers for the documents necessary to establish a trust. However, it is perhaps wisest to use an attorney to draw up the trust documents in order to be sure that it is done correctly. Once the trust is established, the owners of the assets have to deed the assets into the trust. If these assets are not deeded into the trust, they will not have the protections that the trust might offer.


Most of these "family trusts" or "living trusts" are revocable - meaning the trustees can change the terms of the trust during their lifetimes.


It is important to keep your trust documents in a safe place so that they can be easily accessed when necessary. If you have used an attorney to draw them up, the attorney should also have a copy.


When selling a piece of real estate that is one of the assets in a trust, the trustee (seller) will have to furnish escrow and title with documentation that they have the powers necessary to execute a purchase contract. It is usual for escrow to require the seller to sign a notarized statement that gives the name of the trust and the name(s) of the trustees who have the power to sign a purchase agreement. Often the title company will want to see a copy of the page(s) that names the trustee or any co-trustees or successor trustee.


This might be a good time to review your trust documents as laws do change and you want your provisions to be current and useful.

The Valentine From the Federal Government

February 14, 2012


The latest program from the federal government in the attempt to shore up the housing market is the settlement that would require banks to provide billions of dollars in aid to homeowners who have either lost their homes or who are at risk. Supposedly the deal will set aside up to $17 billions specifically to pay for principal reductions and other relief for borrowers who are behind on their mortgages or who owe more than the home is currently worth. For the homeowners who have been following every plan put out by the government in attempts to recast their mortgages, this proposal, if it actually works, would be the greatest gift of this decade.


Needless to say, the homeowners who have been unable to have their lenders respond to applications for loan modifications are sceptical, but hopeful. It would be a step in the right direction if the billions allocated to banks had strings attached. For instance: banks would be reimbursed for the loss taken when the loan was written down or the interest rate reduced.


Say the present loan amount is $400,000 at a 5% interest rate for 30 years. It is modified to a $250,000 loan amount with the current interest rate of 3,75% for 30 years. I am sure a mathematical program could determine the loss to the lender. It could be complicated since the lender would be receiving a lump sum now rather than a stream of interest payments over the next 30 years. Lots of variables do complicate figuring the loss for the lender, but for the borrower/homeowner, the loss of equity has already occurred and to be able to make the payments and remain in the home is what many of these underwater owners would really see as a gift.
Happy Valentine's Day !!!!!

Some Good News in the Upper End of Our Market

February 13, 2012


It is too early to cheer that the real estate market in the upper end is finally awakening but....


I have been tracking the number of single family homes reported sold in the fourteen communities that I follow on a regular basis. The $400,000 plus segment of the market has been largely stagnant - probably due to two factors: 1) folks who own those properties owe more than they are presently worth and 2) folks who might want to move up and take advantage of the reduced value and fantastic interest rates have a lack of down payment monies.


The following are the numbers for January 2012 and December 2011 as well as the numbers for January 2011.


Banning/Beaumont............Jan-2012/1.......Dec-2011/0........Jan-2011/0


Bloomington........................Jan-2012/0......Dec-2011/0........Jan-2011/0


Colton...................................Jan-2012/0......Dec-2011/0........Jan-2011/0


Fontana................................Jan-2012/1.......Dec-2011/0........Jan-2011/3


Grand Terrace.....................Jan-2012/0......Dec-2011/0........Jan-2011/0


Highland..............................Jan-2012/1.......Dec-2011/1........Jan-2011/0


Loma Linda.........................Jan-2012/1.......Dec-2011/1........Jan-2011/0


Mentone..............................Jan-2012/0.......Dec-2011/1........Jan-2011/0


Moreno Valley....................Jan-2012/0.......Dec-2011/0.......Jan-2011/0


Redlands.............................Jan-2012/5........Dec-2011/4.......Jan-2011/7


Rialto...................................Jan-2012/0.......Dec-2011/0.......Jan-2011/0


Riverside.............................Jan-2012/18.....Dec-2011/18.....Jan-2011/11


San Bernardino.................Jan-2012/1........Dec-2011/0.......Jan-2011/0


Yucaipa/Calimesa............Jan-2012/5........Dec-2011/2.......Jan-2011/2


Not remarkable, but at least some activity. Open houses in the $400,000 plus ranged have had good traffic and offers are being made. Like every good real estate agent. I am optimistic that we will have an improving real estate market in 2012.

Fill the Goodwill Truck for Angel's Closet

February 10, 2012


Get a head start on your Spring cleaning and help the Angel's Closet program. Angel's Closet is a 501C3 organization that provides clothing to high school students. They have a wonderful store where teens can come and "shop for needed items. The mission of Angel's Closet is to provide necessary items to less fortunate students. Put March 17 from 1 p.m. to 4 p.m. on your calendar and you can visit the open house at Redlands East Valley High School's Angel's Closet store. But for this Saturday bring your items to donate to Goodwill.


Tomorrow, Saturday, February 11 from 10 a.m. to 4 p.m. there will be a Goodwill truck parked on the Redlands High School parking lot on the Redlands Boulevard side of the Terrier Gym.


Any item that you would normally donate to Goodwill is acceptable and will help fill the truck. The goal is to fill the truck and Goodwill Industries will donate cash to Angel's Closet.


If you need a pick-up you can call Pat Williams at 909-794-7967

Median Home Prices/ January 2012

February 9, 2012


How are we beginning 2012? Here are the median prices for homes that closed escrow in January 2012. I am also posting the median prices as reported in January 2011. Remember that I obtain these prices in a non-scientific way. I simply select the property that is at the halfway point of reported closings. It is also important to remember that median price is the number that half of the sales are greater than and half are lesser than.


Banning/Beaumont...........2012/156,000........2011/175,000


Bloomington.......................2012/110,000........2011/165,000


Colton..................................2012/125,000........2011/93,000


Fontana...............................2012/210,000........2011/196,000


Grand Terrace....................2012/179,000........2011/203,000


Highland.............................2012/160,000........2011/162,000


Loma Linda........................2012/230,000........2011/250,000


Mentone.............................2012/115,000


.......................................................130,000........2011/157,000


Moreno Valley..................2012/147,000.........2011/155,000


Redlands...........................2012/178,000.........2011/218,000


Rialto.................................2012/163,000.........2011/160,000


Riverside...........................2012/195,000.........2011/180,000


San Bernardino................2012/110,000.........2011/122,000


Yucaipa/Calimesa...........2012/189,000.........2011/210,000


These median prices seem to indicate that the activity in our real estate market remains in the lower priced homes. First time homeowners and investors are the majority of purchasers, this is reflected in numbers.

January 2012 - Closed Single Family Properties

February 8, 2012


By some count, we are now entering the fourth calendar year of the real estate downturn. Here are the numbers for the single family properties that closed escrow in January 2012. I am also posting the numbers for January 2011.


Banning/Beaumont..........2012/96......2011/93


Bloomington......................2012/15......2011/25


Colton.................................2012/29......2011/42


Fontana..............................2012/118....2011/212


Grand Terrace...................2012/13......2011/6


Highland............................2012/45......2011/47


Loma Linda.......................2012/16......2011/22


Mentone............................2012/7........2011/5


Moreno Valley..................2012/195....2011/191


Redlands...........................2012/49......2011/54


Rialto.................................2012/97......2011/104


Riverside...........................2012/323....2011/309


San Bernardino................2012/189....2011/181 Yucaipa/Calimesa...........2012/55.......2011/50


In terms of volume, the numbers are not substantially up or down. Except for January 2008, the number of units sold has not been very different year to year. 2008 saw a large drop in volume which reflected the on set of the real estate market' decline.

Energy Efficiency in Your Home

February 7, 2012


The push is on to make our homes more energy efficient. Electricity, gas and water conservation are big topics these days as lawmakers pass legislation that will require future adaptations in these areas.


Southern California Gas Company in the latest "GAS MATTERS" newsletter urges homeowners to take the Home Energy Efficiency Survey. There is a 5 minute and a 15 minute on-line survey. You can also request to have the survey mailed to you. As an incentive to get you started on your conservation efforts, you will receive a complimentary Energy Efficiency Starter Kit (containing a low-flow shower head and three faucet aerators) for taking the 15 minute survey or the mail-in survey.


Visit http://www.socalgas.com/ and search "Energy Survey"

'Tis the Season For Awards

February 6, 2012


Football has the Vince Lombardi trophy awarded to the top professional football team as determined by the Super Bowl winner. CENTURY 21 International also awards a trophy, known as the Art Bartlett 2100 Cup, to the company in the CENTURY 21 system that meets the following criteria:


1. Has a positive attitude and whose management team and sales associates reflect this outlook.


2.Displays proven leadership within their community and within the CENTURY 21 System.


3. Believes in the CENTURY 21 organization and all that it represents.


4. Continues to evolve and change, and is not afraid of new ideas and different ways of doing business.


5. Embraces and successfully implements CENTURY 21 tools and systems.


We at CENTURY 21 Lois Lauer Realty are proud to announce that our company has been chosen to receive this top award. This is a huge honor as the CENTURY 21 System global network has 112,000 brokers and agents in approximately 7,6000 offices in 71 countries and territories worldwide.


As the CENTURY 21 super bowl ad said: Our agents are smarter, bolder and faster than the competition. Hurrah for CENTURY 21 Lois Lauer Realty!!!!

Check Out the Food

February 3, 2012


Saturday, February 4, over 40 food trucks will be coming to the Agua Caliente Spa in downtown Palm Springs for the inaugural "Palm Springs Food Truck Festival". Chefs will be preparing a variety of familiar and perhaps unfamiliar food flavors. General admission time is 11:00 a.m. The event will continue until 5 p.m. It is being held on the Agua Caliente Spa Resort Casino parking lot at 401 East Amado Road in Palm Springs.


The weather should be just about perfect. For more information http://www.palmsspringsfoodtruckfestival.com/


For those of you who enjoy watching sports events with other sports fans, the 3rd annual Super Bowl Game Event will be held at the Orange Terrace Community Park, 20010 Orange Terrace Parkway in Riverside. There will be 20 former NFL All-Pros there to sign autographs and to support the Prevent Child Abuse Riverside County organization.


You will be able to watch the Super Bowl on a large screen, win prizes and enjoy the best tailgate ribs, sliders, burgers and more. Tickets start at $10. The event opens at 2:30 p.m.


http://pcariveside.org/

One More New Attampt To Help Underwater Homeowners

February 2, 2012


President Obama proposed yesterday a refinance program to make it easier for homeowners to take advantage of today's low interest rates. The proposal would allow almost anyone that has a credit score of 580 and above and who has been paying with their monthly mortgage payments on time for the past six months to refinance their loans. Loans would have to be in the range of $271,050 and $729,750.


The proposal is another attempt to address the large number of homeowners who have mortgages with higher interest rates or balloon payments. As far as I can tell from the news releases, it does not directly address the issue of loans that are greater than the current value of the home. It would simply reduce the payments through a reduction of the interest rate on the loan.


Previously, there was a proposal for all loans held be Fannie Mae or Freddie Mac to be eligible for this refinancing. This proposal extend this program to loans owned by banks and investors that were not sold to Fannie and Freddie.


As usual, this proposal would need to be enacted into law by both congressional bodies.

Listings, Pendings and Back-ups as of February 2012

February 1, 2012


As you can note, we do not have a glut of active listings. The market has started 2012 with some good activity and the ratio of properties with accepted offers (pendings and back-up) is increasing.


Here are the numbers:


Bammimg/Beaumont...........List/426.......Pend/197........Back-up/107.......Ratio/.713


Bloomington..........................List/66..........Pend/48.........Back-up/17.........Ratio/.985


Colton.....................................List/102........Pend/94..........Back-up/31........Ratio/1.225


Fontana..................................List/520........Pend/430.......Back-up/222......Ratio/1.253


Grand Terrace.......................List/38..........Pend/17..........Back-up/4...........Ratio/.553


Highland................................List/143........Pend/96..........Back-up/58........Ratio/1.077


Loma Linda...........................List/38..........Pend/28..........Back-up/14........Ratio/1.105


Mentone................................List/22..........Pend/20..........Back-up/9..........Ratio/1.318


Moreno Valley......................List/635........Pend/400.......Back-up/199......Ratio/.943


Redlands...............................List/234........Pend/92..........Back-up/58........Ratio/.641


Rialto.....................................List/290.......Pend/203........Back-up/70........Ratio/.941


San Bernardino....................List/593.......Pend/319........Back-up/125.......Ratio/.749


Yucaipa/Calimesa...............List/202.......Pend/101.........Back-up/73........Ratio/.861


It is a good sign that the ratios are rising. Just as a comparison, Riverside had a ratio of .611 on February 1, 2011 and active listings of 1484. San Bernardino had 868 active listings on February 1, 2011 and a ratio of .578. Slowly but surely it does look like the real estate market has turned a corner. Let's hope it continues this trend.