Wednesday, October 31, 2012

Halloween Seems to Have Become a Big Deal

October 31, 2012
Believe it or not, Halloween is the United States second largest commercial holiday. According to one source, folks spend approximately 7 billion dollars on costumes, parties, treat and all the other accouterments to celebrating this holiday. It was only in the mid twentieth century that Halloween took on so many activities. While it began at that time to be a mostly children's event, it gradually was part of adults party planning. I read somewhere that adults spent $1.4 billion dollars on costumes while $1.1 billion is spent on children's costumes.
If all these spending figures are correct, we should see an uptick in consumer spending for the month of October.

Tuesday, October 30, 2012

If You Wonder What to Offer......

October 30, 2012
It was once the case, not too long ago, that potential purchasers would ask their agent "How much under the listed price can I offer?" In today's market of low inventory and multiple potential purchasers, the question becomes "How much over the list price should I offer?" In both instances, the agent's best response is to print out the data on the most recent sales of similar properties and let the numbers guide an offering decision.
This morning I received my monthly copy of "Housing Trends Update". I found the chart of Average Sales to Listing Price Ratio for residential real estate to be informative on the subject of what a purchaser might want to offer. The chart cites ratio in a number of states across the country. California, Arizona and Nevada had the highest ratio. The data is divided by the following categories:
Bank Owned Distressed, Damaged:    98% list to sold price
Bank owned move-in ready:               101% list to sold
Shirt Sale:                                            98% list to sold
Non-Distressed (Standard)                  97% list to sold
This data indicates that at the time a property receives an acceptable offer, the price is not very negotiable. Recognizing that the price at the time of the acceptable offer may have been reduced, it does show that buyers (and appraisers) are feeling that the list price represent market value.
If you are wanting to purchase in today's real estatae market, be prepared to bid over not under.

Monday, October 29, 2012

A Snap Shot of Our Short Sale Market

October 29, 2012
At CENTURY 21 Lois Lauer Realty we have a short sale department. For two years we have had our own designated negotiator plus an assistant. It is a real help to be able to assign the short sale negotiating process to her as she has come to work with various lenders and their requirements. I asked her if she had built relationships with the asset managers/negotiators. It was interesting to note that in the two years there are only two that are the same. It seems that asset managers and negotiators do not remain in that prosition for very long. It is a high stress job with all the agents and designated real estate negotiators pushing conmstantly for a response to a potential purchaser's offer.
As of this morning, our short sale department has fifty-eight active short sales that are waiting for lender responses. There are sixteen short sale transactions that have been accepted by the lender and are presently processing through escrow.
With sellers trying to beat the December 31st deadline for debt forgiveness, we mat see an increase in the short sales that sellers are willing to accept and to submit to their lender.
While asset managers/negotiators do seem to be responding more quickly than they were a year ago, it still takes far longer than the once touted ten day period that HARP and HAMP called for. Five to seven months has not been unheard of. Let's hope that the trend continues for more timely responses from the lenders. After approximately four years of dealing with short sales, one would thnk that the lenders would have developed a system that could expedite the process. The lender would have a non-producing asset on the books for a shorter period of time and sellers and buyers could get on with their lives.

Friday, October 26, 2012

This Weekend Kicks Off the Halloween Festivities

October 26, 2012
With Halloween coming up next Wednesday, this weekend has opportunities to "spook-out". Many of the parks and communities in the Inland Empire will be hosting Family Halloween Events. between the Oktoberfests and the Halloween events, those who want to dress up and celebrate can find opportunities in practically every city.
Vail Lake Resort just east of Temecula's city limits, will host campers from all over Southern California at its 500-unit campsite. The campers will decorate their RVs to the max. While the campgrounds may already be booked, day visitors can come by paying $10 for parking and $10 for admission. 80 actors will be performing in the "scare zone' The whole area is elaborately decorated with scuptures by Ricardo A. Breceda whoae work was previously visible alongside the 215 freeway at Perris' Jurasic Park. Hours are 5:30 to 11 p.m. Friday (tonight); and Saturday. 38000 Highway 79.
Information 951-303-0173

Thursday, October 25, 2012

Is It Still a Buyers' Market?

October 25, 2012
Is it still a buyers' market? Has it become a sellers' market? The interesting answer to both of these questions  is "It depends".
It is still a buyers' market in as much as prices are still about 30-40% lower than they were in 2005 and 2006. Interest rates (as you can check on my post of a few days ago.) are at all time lows. These two factors make it a really great opportunity for prospective home purchasers to enter the real estate market under favorable circumstances. However, not all is in a buyer's favor. The number of properties being offered for purchase is in very short supply. As a result, buyers find themselves competing for the same property. This competition makes for wrestling with the decision to offer above the listed price and guessing how much above on will have to offer in order to be a successful buyer.
This competition suggests that sellers are now experiencing a sellers' market. The sellers are able to obtain a higher price than expected. However, many of these properties being offered for sale are "short sales" meaning the seller is receiving no proceeds since the proceeds realized from the sale will go to the lender. One of the reasons that there is so much competitive bidding is that often properties are listed below what the real market value is. The reason for this is to make the property sell more quickly and  to generate the competition. It may become a sellers' market if the non-short sale seller can also participate in multiple offers and experience the benefits of increased activity and selling prices.
It is a very crazy real estate market for buyers, sellers and agents. At the moment the question of rising prices seems a bit in the hands of the appraisers who must decide market value.

Wednesday, October 24, 2012

Time May be Running Out on the Mortgage Debt Relief Forgiveness Act

October 24, 2012
There may still be time to benefit from the Mortgage Debt Relief Forgiveness Act. This Act is set to expire on December 31, 2012. Many real estate experts think the federal government will extend its provisions but you can not be certain. You may remember that prior to Congress passing this Act, folks who sold there homes for less that was owed were subject to paying income tax on the amount of debt that was forgiven by the lenders. The Act forgave the debt and taxes on it were waived.
While "short sales" have a reputation of taking months to complete, it may still be possible to list your home and close a sale under this deadline. So if you are one of those underwater homeowners and no loan modification have been approved, putting your home on the market right now may be beneficial to you.
The number of homes presently listed for sale is very low. There are more buyers out looking for homes than we have seen in some time. Since in a short sale you, as the seller, will be receiving no monies from the sale, make your listing price as competitive as possible. Ultimately the bank will determine the selling price, but attracting buyers to make offers is the first necessary step in the short sale.
The Mortgage Debt Forgiveness Act is a great benefit to the underwater homeowner. Don't forget about how it was when you had income tax liability on the debt forgiveness.

Tuesday, October 23, 2012

Interesting Interest Rate History from California Association of Realtors

October 23, 2012
This "cool" chart came this morning from the California Association of Realtors. The email suggested that it be shared and thus I have posted it for all to see. If you were considering buying a home in 2012, this history of interest rates clearly points to the value of  buying in the present real estae and lending markets.

Monday, October 22, 2012

Last Day to Register to Vote

October 22, 2012
With Election Day just two weeks plus a day away, you need to make certain that you are registered to vote. If you have moved since the last election, you need to register with your new address. It is important that as citizens, we exercise our right to cast a vote for the candidates of our choice. With redistricting in California, voting regions have been altered. Knowing your candidates, reading the voter pamphlet and becoming an informed voter is a requirement of citizenship.
Make registering today a priority on your "TO-DO" list.

Friday, October 19, 2012

Great Weekend Outing, The U.C. Riverside Botanic Gardens

October 19, 2012
If you have never visited the University of California, Riverside Botanic Gardens, this weekend is the perfect time to do so. October 20 and 21, the gardens will be holding the Inland Area's largest plant sale. Nearly 10,000 plants and more than 500 varieties will be available for purchase. If you visit www.gardens.ucr.edu you will be able to obtain a detailed plant list. However, the Botanical Gardens are worth the trip whether or not you have an interest in purchasing plants.
The Gardens are open daily from 8 a.m. to 5 p.m.. Admission is a suggested $4 donation and all contributions are gratefully accepted. There is limited parking by the entrance with a charge for a temporary permit. The permits may be purchase at the dispenser just inside the Gardens' entrance gates. Overflow parking can be obtained at Lot 10 with a payment.
The Gardens are located just adjacent to the UCR campus off of North Campus Drive. For a map and directions use the following address: Botanic Gardens Drive, Riverside, CA 92521.
For phone information you can call 951-784-6962

Thursday, October 18, 2012

The Great California Shakeout - Preparedness

October 18, 2012
In just about one and a half hours the fifth Great California Shakeout exercise will take place. Emergency agencies, schools and municipalities will be participating in a response to a simulated 7.8 earthquake with an epicenter near the Salton Sea. While most of us will probably not be participating in this drill, we should evaluate our own preparedness.
According to Cal Tech scientists, water could be a key element in a person's survival. While we have been told that we need to be prepared for at least 72 hours on our own, these scientists are recommending that our water supply be no less than one gallon per person for a minimum of seven days.
We may already have food supplies for this 71 hours, but do we have a disaster preparedness plan?
I know I do not. I have a crank and solar operated radio, flashlight and cell phone charger device. I was however dismayed to learn that it is anticipated that cell phone towers may be totally out of operation. So much for feeling I could reach my family to check on their situations after the first major shock had subsided.
I also realized that we, as a family needed to determine how we might assist each other and how we would actually be able to make contact. This can be especially important if you have school age children.
Your plan needs to include the location of your flashlights, the dates when the batteries were checked, and a supply of extra batteries.
You need to know where you are storing that special wrench that will turn off the gas at your gas meter.
I also heard that after the shaking stops you should unplug alal electronic devices and electrical appliances as electrical shorts can cause fires.
As the years go by and we have time to learn more about earthquakes, we have time to prepare. These annual drills give our emergency providers more insight as to how to prepare.

Wednesday, October 17, 2012

It's the Great California Shakeout Time

October 17, 2012
Lest we all forget that we live in earthquake territory, tomorrow is the Great California Shakeout Day. At 10 a.m., first responders will be participating in a simulated earthquake disaster.I believe that the simulated earthquake will begin near the Salton Sea. It will be a magnitude 7.8 .earthquake and in 240 seconds will have traveled up the lower San Andreas fault to the LA area. The schools as well as attendees at the San Bernardino Country Museum will participate in a "drop, cover and hold on drill. The purpose of this simulated drill is increase citizen awareness of the need to be prepared for an earthquake that scientists believe will occur sometime in the next thirty years.
Earthquakes cannot be prevented but preparation can limit the damage.
Here are the suggested seven steps to earthquake safety:
1) Identify potential hazards in your home and fix them.
2) Create a disaster preparedness plan
3) Prepare disaster supplies kits.
4)Identify your buildings potential weaknessees and begin the process of fixing them.
5) Protect yourself during an earthquake shaking - still recommended: drop, cover and holdon.
6) After the earthquake, check for injuries and damage, Evacuate if necessary.
7) When safe, continue to follow your disaster plan.
Tomorrow we will address a disaster plan.

Tuesday, October 16, 2012

Everything Is Coming Up Green

October 16, 2012
Have you noticed lately that "green" is the magic word. It is not just used for environmental adaptations, but has crept into the color used to paint houses inside and out. I noticed in an article about decorator showcase homes that the color green was in surprising prominence. Not just soft green, but chartreuse, apple green, lime and kiwi. We seemed to be entering another phase of color choice. Remember the 1970s? All builders seem to choose Navajo White for their model homes. In the beginning of the 21st century, we began to see tans from light to dark being used on the walls of homes being staged for sale.
Perhaps now the word "green" with all its connotations has crept into our choice of color for the walls that surround us. It is always interesting to track the trends. The past ten years the trend that dominated the home market was granite counters and stainless steel appliances. Could it be possible that we will revert to the avocado green of the past? I can hear the outcry: "No Way". However, trends become funny things. They slip into our psyche and before you know it we want to update our living spaces.

Monday, October 15, 2012

Tracking the Over $400,000 Market - 2012

October 15, 2012
We are three quarters though 2012. It does seem as though the over $400,000 market has some life. The closed sales in September were a bit off the pace that had been improving throughout the year. Certainly it is better than the past several years, but still has a long way to go to catch up with 2005 and 2006.
Here are the numbers taken from closed single family home sales reported though the CRMLS>
Banning/Beaumont..........Sept/1.......Aug/0.......July/0.......June/0.......May/0.......Apr/0
......................................Mar/0.......Feb/0........Jan/1
Bloomington...................Sept/0.......Aug/0.......July/0.......June/0.......May/0.......Apr/0
......................................Mar/0.......Feb/0.......Jan/0
Colton...........................Sept/0.......Aug/0.......July/0.......June/1.......May/0.......Apr/0
.....................................Mar/0........Feb/0.......Jan/0
Fontana........................Sept/4........Aug/1.......July/0.......June/1.......May/0.......Apr/0
.................................... Mar/1........Feb/3.......Jan/1
Grand Terrace..............Sept/0.......Aug/0.......July/0.......June/0........May/0.......Apr/0
.....................................Mar/0.......Feb/0.......Jan/0
Highland.......................Sept/0.......Aug/3.......July/1.......June/4.......May/3........Apr/2
....................................Mar/0......Feb/1........Jan/1
Loma Linda.................Sept/0.......Aug/2.......July/2........June/0........May/1.......Apr/1
...................................Mar/0........Feb/0.......Jan/1
Mentone.....................Sept/0.......Aug/0........July/0.......June/0........May/0........Apr/0
...................................Mar/0.......Feb/0........Jan/0
Moreno Valley............Sept/0.......Aug/1........July/0.......June/0........May/0........Apr/0
...................................Mar/0.......Feb/0........Jan/0
Redlands.....................Sept/7.......Aug/12......July/13.....June/11.....May/9.........Apr/6
...................................Mar/8........Feb/10.....Jan/5
Rialto..........................Sept/0.......Aug/0.......July/0.......June/0........May/0.........Apr/0
..................................Mar/0........Feb/0.......Jan/0
Riverside....................Sept/19.....Aug/20.....July/22......June/24......May/23......Apr/20
..................................Mar/20......Feb/18.....Jan/18
San Bernardino..........Sept/0........Aug/1......July/1.........June/1.......May/0........Apr/0
..................................Mar/0........Feb/0......Jan/1
Yucaipa/Calimesa......Sept/3........Aug/4......July/7.........June/4.......May/3........Apr/4
.................................Mar/2.........Feb/3......Jan/5
Judge for yourselves. There is life, but no real trend upwards.

Friday, October 12, 2012

A Healthy Opoortunity

October 12, 2012
This Saturday, October 13, the 10th annual Community Health and Safety Fair sponsored by Arrowhead Regional Medical Center will take place form 10 a.m. to 3 p.m. This wil be an opportunity for 500 adults to receive free flu shots. However, attendees will also have the opportunity for free health screenings and individual doctor consultations. There will be fire amd safety information with demonstrations and tips for adults and children.
This year the Mercy Air Medevac helicopter will be on site along with numerous vendors and exhibitors with resources for health and safety.
The Arrowhead Regional Medical Center is located at 400 N. Pepper Avenue in Colton. For additional information you can call 909-580-1000 or visit www.arrowheadmedcenter.org

Thursday, October 11, 2012

Is the Real Estate Market Improving? Median Prices September though January 2012

October 11, 2012
If the new media is to be believed, the real estate market is on its way to recovery; albeit slowly. Check for yourselves how the median prices in our area have trended this year. Remember that these medians are not arrived at in any scientific way. They reflect only the reported selling price of the property at the halfway mark of the properties reported sold.
Banning/Beaumont..........Sept/164,000......Aug/150,000......July/149,000......June/158,500
......................................May/151,000......Apr/160,000......Mar/158,000......Feb/145,000
......................................Jan/156,000
Bloomington...................Sept/145,000......Aug/175,000......July/159,000......June/149,000
......................................May/129,000......Apr/145,000......Mar/175,000......Feb/132/140
......................................Jan/110,000
Colton............................Sept/130,000......Aug/125,000......July/125,000.......June/110,000
......................................May/139,000......Apr/120,000.......Mar/114,000......Feb/121,500
......................................Jan/125,000
Fontana..........................Sept/228,500......Aug/215,000.......July/216,000......June/198,000
......................................May/220,000......Apr/215,000.......Mar/197,000......Feb/210,000
......................................Jan/210,200
Grand Terrace...............Sept/174,000......Aug/179,000.......July/185,000.......June/194,600
......................................May/182,000......Apr/170,000......Mar/199,000.......Feb/145,000
......................................Jan/179,000
Highland........................Sept/167,000......Aug/170,000.......July/175,000.......June/181,000
......................................May/225,000.....Apr/157,000.......Mar/184,000.......Feb/145,000
......................................Jan/160,000
Loma Linda...................Sept/245,000......Aug/200/209.......July/270,000.......June/185,000
.....................................May/189,000......Apr/230,000.......Mar/195,000.......Feb/185,000
.....................................Jan/230,000
Mentone.......................Sept/72/154........Aug/210,000.......July/110/170........June/80,000
.....................................May/180,000......Apr/118,000.......Mar/129/155.......Feb/140,000
.....................................Jan/115/130
Moreno Valley..............Sept/163,000......Aug/167,000......July/160,000.........June/158,900
.....................................May/152,500......Apr/149,000......Mar/153,000........Feb/144,000
.....................................Jan/147,000
Redlands.......................Sept/222,500......Aug/200,000......July/245,000........June/223,000
.....................................May/220,000......Apr/190,000......Mar/220,000........Feb/186,000
.....................................Jan/178,000
Rialto............................Sept/182,000......Aug/167,500......July/165,000........June/163,000
.....................................May/160,000......Apr/175,000......Mar/165,000.......Feb/165,000
.....................................Jan/163,000
Riverside......................Sept/200,000......Aug/210,000......July/204,000.........June/208,000
....................................May/189,000......Apr/190,000......Mar/190,000........Feb/180,000
....................................Jan/195,000
San Bernardino............ Sept/125,000......Aug/126,000......July/120,000........June/117,000
....................................May/114,200......Apr/110,000.......Mar/105,000.......Feb/100,000
....................................Jan/110,000
Yucaipa/Calimesa.........Sept/199,000......Aug/190,000.......July/181.500.......June/179,000
....................................May/154,000.......Apr/180,000......Mar/170,000.......Feb/160,000
....................................Jan/189,000
In my Opinion, there are no strong trends in this data. There is slight improvement in the September number over the January number. In between it is up and down, but not large differences.

Wednesday, October 10, 2012

Closed Sales - September to January 2012


October 10, 2012
Here are the number for the single family properties that have been reported sold though the CRMLS for 2012. There has been a slight decline in the number of units reported sold in September. I believe the reduce number of properties on the market may have contributed to the decline. As you can note, we are about at the same numbers that we had in the beginning of 2012.
Banning.Beaumont..........Sept/102......Aug/125......July/111......June/149......May/133......Apr/122
.......................................Mar/120......Feb/105......Jan/96
Bloomington...................Sept/19........Aug/16........July/20........June/29........May/18........Apr/22
......................................Mar/24.........Feb/25........Jan/15
Colton...........................Sept/22.........Aug/37.......July/29.........June/34........May/47........Apr/44
......................................Mar/46.........Feb/42.......Jan/29
Fontana.........................Sept/183.......Aug/244.....July/207.......June/230......May/257......Apr/201
......................................Mar/224.......Feb/190......Jan/188
Grand Terrace...............Sept/10.........Aug/16.......July/16.........June/15........May/16........Apr/10
......................................Mar/11.........Feb/8..........Jan/13
Highland........................Sept/40.........Aug/84.......July/54.........June/79........May/79.........Apr/63
.....................................Mar/46..........Feb/46........Jan/45
Loma Linda...................Sept/8...........Aug/15.......July/13.........June/15........May/21.........Apr/12
.....................................Mar/21..........Feb/12........Jan/16
Mentone.......................Sept/9............Aug/10.......July/11.........June/8..........May/8...........Apr/10
.....................................Mar/13..........Feb/16.......Jan/7
Moreno Valley..............Sept/174........Aug/242.....July/209......June/219.......May/246.......Apr/199
.....................................Mar/244........Feb/174.....Jan/195
Redlands......................Sept/66..........Aug/77.......July/67.........June/98.........May/72.........Apr/65
.....................................Mar/80..........Feb/55.......Jan/49
Rialto............................Sept/66.........Aug/110.....July/111.......June/110.......May/113........Apr/103
.....................................Mar/118........Feb/85.......Jan/97
Riverside......................Sept/333........Aug/402.....July/402.......June/401.......May/402........Apr/352
.....................................Mar/405........Feb/364.....Jan/323
San Bernardino.............Sept/126........Aug/204.....July/154......June/195.......May/204........Apr/175
.....................................Mar/210........Feb/133.....Jan/189
Yucaipa/Calimesa.........Sept/60..........Aug/72.......July/61........June/79.........May/73..........Apr/61
.....................................Mar/78..........Feb/57.......Jan/55
It will be interesting to watch these numbers as we enter the fourth quarter of 2012. Will they bounce around as they have done in the first three quarteres?

Monday, October 08, 2012

Closed Single Family Homes - September 2012

October 8, 2012
As points of comparison for the number of residential properties reported closed though the CRMLS  in September, I am posting the September 2011, 2006, and 2005 numbers. 2005 and 2006, as you remember, were the height of the real estate boom. As this years numbers indicate, volume has declined year over year. You can see that the numbers also declined from 2005 to 3006. Some of this decline is the result of a lack of properties to sell. In 2005 and 2006, we were experiencing multiple offers. Such is also the case in 2012. If there are 24 potential buyers bidding on a property, sales numbers will only reflect one unit as sold if the other 23 are unable to find a house to purchase.
Here are the numbers for September
Banning/Beaumont...........2012/102.......2011/134.......2006/83......2005/107
Bloomington....................2012/19.........2011/20.........2006/16......2005/29
Colton.............................2012/22.........2011/40.........2006/45......2005/52
Fontana...........................2012/183.......2011/245.......2006/190....2005/303
Grand Terrace.................2012/10.........2011/11.........2006/14......2005/28
Highland..........................2012/40.........2011/66.........2006/50......2005/92
Loma Linda.....................2012/8...........2011/14.........2006/15......2005/13
Mentone..........................2012/9...........2011/11.........2006/8........2005/3
Moreno Valley.................2012/174.......2011/232.......2006/187....2005/370
Redlands..........................2012/66........2011/63.........2006/56.......2005/83
Rialto...............................2012/66........2011/106.......2006/83.......2005/145
Riverside..........................2012/333......2011/410.......2006/389.....20025/540
San Bernardino................2012/126.......2011/179......2006/189......2005/244
Yucaipa/Calimesa............2012/60.........2011/67........2006/54........2005/68

Friday, October 05, 2012

Get Out Your Walking Shoes

October 5, 2012
The color "pink" is bursting out all over. October is National Breast Cancer Awareness Month and pink ribbons on labels, pink shoes and gloves on athletes and this Sunday pink T-shirts on over 12,000 walkers who have enrolled in the "Believe Walk" in Redlands.
Begun five years ago by local friends who had all experienced breast cancer, the event has grown at a fairly unbelievable rate. Stater Bros Charities were on board as a supporter from the very beginning and this very amazing event gas raised thousands of dollars for the fight against breast cancer as well as other cancers.
On Sunday, October 7, 2012, beginning at 6:30 a.m., the day-of registration will open. If you have not already registered on-line, you can register Sunday. The registration desk will be at Orange and Stae Streets in Downtown Redlands. The registration fee will be $50.
The start line will be at State and 9th Street and the finish will be at the Redlands Bowl. The walk begins at 8:00 a.m.. There will be a cancer survivor photo op on the stage of the Redlands Bowl .
There are 5K and 10K walk routes. The 10K walk route has a small uphill climb.
The weather should be absolutely beautiful and camaraderie will be memorable.

Wednesday, October 03, 2012

You Think That You Want to Sell Your Property

October 3, 2012
You have heard that the local real estate market has become really active. You have heard that buyers are competing for properties and that homes are selling really quickly. You have been waiting to move and think it is time to call a real estate agent to find out what your property is worth on the current market. The agent will prepare a Comparative Market Analysis (CMA) using current active listings, properties in escrow (pending) and those that have sold in the past three months. (Appraisers do not generally consider sales older than three months.)
The active listings will tell you what your competition is. The pendings will tell you what buyers chose. These pendings will tell you the listing price and how many days the properties were on the market. The closed sales will tell you the actual selling price of the properties that sold. In today's market, the agent should also indicate whether or not the stated purchase price includes buyer's costs that the seller paid.
When pricing your property it is important to remember that listing prices are what sellers would like and the actual sold price is what buyers were willing to pay. Sellers can ask any price they like, but what indicates the value of real estate is the price at which a property actually sold. It is this price that should be the basis for your listing price is you really would like to sell within a reasonable amount of time.
Homes that are listed at prices under the market are often short sales. The seller really has no "skin-in-the-game" as all proceeds in short sales go to the mortgage holder. These under listed properties are most frequently the properties with multiple offers and they often sell for more than the list price.
Pricing a property to sell is not an exact science. It is comparing in what ways your home is similar to other homes and then making a judgment as to a price that will attract buyers.

Tuesday, October 02, 2012

That Shadow Inventory

October 2, 2012
In the past week I have heard interviews of financial professionals speaking about the real estate housing market. While they do finally concede that the real estate market has improved on a year over year basis, they seem always to want to being up the "shadow inventory".
In the beginning I thought that "shadow inventory" referred to the properties that had been foreclosed and that were now bank owned, but were not being offered for sale. When I checked out web sites that listed "bank owned" properties, I did not find a huge number of homes that were not listed for sale or already in escrow. Upon further inquiry, it seems as though what these experts are referring to are the properties that are worth less than the amount of the loans against them. Apparently they have available these loan to value statistics for all properties. They must believe that sooner or later these homeowners will stop making their mortgage payments, be foreclosed and will flood the inventory.
For at least two years, maybe three, we have heard about the shadow inventory that will cause the real estate market to give up any gains achieved so far. I have yet to hear a clear explanation of this position.
If you are a potential buyer of real estate, I would suggest that you not wait for the "shadow inventory" to arrive.  

Monday, October 01, 2012

Listings, Pendings and Back-ups October 1, 2012

October 1, 2012
Can you believe we are now entering the fourth quarter of 2012. The numbers are showing an active real estate market. Check for yourselves. There are more properties with accepted offers than there are active listings. Part of the reason for this turn around is that properties that are listed competitively sell within the first few days after they are listed. Hence the active listing numbers have remained fairly constant for the past several months.
Banning/Beaumont..........List/225.......Pend/247.......Back-up/134.......Ratio/1.693
Bloomington...................List/24.........Pend/46.........Back-up/17.........Ratio/2.625
Colton............................List/35.........Pend/89.........Back-up/33.........Ratio/3.486
Fontana..........................List/196.......Pend/534.......Back-up/211.......Ratio/3.801
Grand Terrace................List/19.........Pend/20.........Back-up/11.........Ratio/1.636
Highland.........................List/70.........Pend/107.......Back-up/58.........Ratio/2.357
Loma Linda....................List/22.........Pend/41.........Back-up/15.........Ratio/2.545
Mentone.........................List/10.........Pend/19.........Back-up/5...........Ratio/2.400
Moreno Valley................List/138.......Pend/527.......Back-up/239.......Ratio/5.551
Redlands.........................List/153.......Pend/110.......Back-up/64.........Ratio/1.137
Rialto..............................List/76.........Pend/205.......Back-up/86.........Ratio/3.829
Riverside.........................List/453.......Pend/769.......Back-up/331.......Ratio/2.428
San Bernardino...............List/273........Pend/402.......Back-up/149.......Ratio/2.018
Yucaipa/Calimesa...........List/117........Pend/113.......Back-up/67..........Ratio/1.538
Just in passing. Riverside started the year with over 1000 active listings and a ratio of .95.
The number of active listings has fallen to half what it was but the patio of those in escrow to the active listings has doubled. These are good signs for an improving real estate market.