The Real (Estate) Story

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2008-10-13T11:24:00.001-07:00

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New Home of The Real (Estate) Story!

2007-04-20T11:32:00.000-07:00

My blog has moved to its new and permanent home on my personal website: http://www.larryunderhill.com

So...BOOKMARK IT!

Check this space for saved pics of GrandDaughter Winnie and archived copies of blog posts!

Winnie Update! Granddaughters grow up fast.

2007-04-13T20:23:00.000-07:00

If you call me at my office and hear coos and gurgles in the background, one of two things is happening: Either I'm holding my sweet granddaughter Winnie, or one of my agents is celebrating another closed transaction. Winifred Jane Wieland is now seven weeks old. She's opening up like a flower! Every day, she's more responsive. Smiles and chortles...and loud yells when she's ticked.

SCROLL DOWN TO FEB 20 FOR PHOTOS OF WINNIE AT FIVE HOURS OLD!

Winnie's Mom, Angie (my darling daughter), has been back at Statesman Realty for two weeks now. Angie's already whipping things into shape in new and novel ways. It's so good to have her back!

It's great to have Angie and Winnie at the office every day. More Winnie photos coming soon!

President's Corner #12

2007-04-10T09:27:00.000-07:00

C.A.R. reports entry-level housing affordability at 25 percent in California
As with so many headlines, this one is misleading. Have you heard the old adage, “If I have one foot in boiling water and another in freezing water, on an average I’m comfortable”? If you’ve read this space for long, you know I’m repeating myself. Statewide averages don’t accurately depict individual markets…and as you’ve read here before, “all real estate is local.”
Although it IS true that over the whole of California, only 25% of first-time homebuyers can afford to buy a home, this percentage varies widely depending on the area. Here’s the CAR report. I’ll end this column with a bit of commentary.
“LOS ANGELES (March 1) The percentage of households who could afford to buy an entry-level home in California stood at 25 percent in the fourth quarter of 2006, compared with 27 percent for the same period a year ago, according to a report released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI) measures the percentage of households that can afford to purchase an entry-level home in California. C.A.R. also reports first-time buyer indexes for regions and select counties within the state. The Index is the most fundamental measure of housing well-being for first-time buyers in the state.
The minimum household income needed to purchase an entry-level home at $477,400 in California in the fourth quarter of 2006 was $96,760, based on an adjustable interest rate of 6.36 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $3,230 for the fourth quarter of 2006.At 41 percent, the High Desert and Sacramento regions were the most affordable C.A.R. regions in the state. Santa Barbara and Los Angeles were the least affordable regions in the state at 19 percent.”
So if I add 41 percent and 19 percent and divide by two, I get 30 percent as the “average” of the two. And that average alone tells me nothing about any specific area. (Since the state average is only 25 percent, we can deduce that there are more less-affordable areas than more-affordable areas).
THE GOOD NEWS in the above article is that the “Sacramento region” of which we are a part, is one of the two most-affordable areas in the state for first-time homebuyers (and other buyers, for that matter). That’s why our area continues to attract Buyers from other less-affordable areas of the state. In strong markets and soft markets, this is a good place to own real estate!

April 1, 2007

2007-04-10T09:26:00.000-07:00

RIP AND READ. That’s what they called it back when I was a rookie disc jockey. “Rip and read” was when the announcer would dash for the wire service machine at the very last minute, grab a wad of news releases, and dive for the chair in front of the control board just as the intro for the news was ending. I can tell you from personal experience that often you’d start a news story only to find yourself embarrassed halfway through it when the type degenerated into gibberish or the story zigged in a unexpected way.

RIP AND PASTE. I think that’s what they call it when newspapers do it. Local Realtor Tad Platt and I shared a laugh about last Tuesday’s article with the headline, “SALES OF NEW HOMES FALL SHARPLY”. Both the Stockton Record and our very own News Sentinel “filled the news hole” with an AP piece datelined Washington, apparently without noticing that buried halfway through the gloom and doom article was: “Sales were down in every region of the country except the West.” But wait, there’s more: “By regions of the country, sales were up 24.6 percent in the West, a rebound after a 25.8 percent plunge in January.” Now, wouldn’t that make a happier and more accurate headline for our area?
ONE WAG of a speaker, commenting on the propensity for news types to accentuate the negative, observed, “If the Lord Himself returned to earth and walked on water, the newspaper headlines across the country would read, “JESUS CAN’T SWIM”.
I SPOKE with a representative of a local subdivision this past week who told me they’re wrapping up their current phase and starting several more new homes to keep up with increased demand. Personally, my observation is that yes, the market has changed, but no, the sky is NOT falling. Not newsworthy, I guess, but that’s what LOCAL new-home sellers are experiencing.
JUST LISTED…and gorgeous, if I do say so: 2420 Rockingham Drive. Upgrades abound in this four-bedroom home. Remodeled kitchen with granite counters!, white-on-white appliances and more! Central heat and air replaced in 2003. Vinyl-clad dual-pane windows in 2001 (except the two bathrooms). Six-year-old composition roof! Wired for Surround Sound in Living Room, wired for sound to covered stamped-concrete patio! Newer ten-by-ten shed! There’s more to enjoy here, but that will give you a taste. At $399,950, this place has been getting a LOT of showings in a short time! Transferred Sellers have priced this home to SELL! There’s an offer on the way as I write this. Going, going…

DUCKS IN THE POOL! Julie called me yesterday to tell me that a colorful mallard and his hen were enjoying our pool! Pokey the Dog was going a little crazy (he doesn’t play well with ducks), so she called him inside and watched as the two lovebirds swam and splashed. Julie was about to offer them some iced tea and sandwiches when they up and flew away. First time we’ve entertained ducks. in EIGHT YEARS of living here! Possums? Yup. Raccoons? Sure. Lions and tigers and bears? Oh, my. Have a happy week! See you next Sat.

March 24th, 2007

2007-03-26T15:34:00.000-07:00

“THERE IS NO CURE for birth and death save to enjoy the interval.” George Santanaya said that. I’m not sure I agree with ALL of George’s observations, but this one makes sense! Of course, as a Christ-follower, I consider Him the “cure for death” (Easter is April 8! Check it out!), but I’m all for enjoying the trip between birth and death!

CORRECTION: That close-in country homesite I mentioned last week, the one with the walnut orchard and 1.66 acres of country solitude, is listed at $319,950! This parcel is a half-mile or so east of Highway 99 on the south side of Acampo Road. It’s a beauty!

MANY PEOPLE who have purchased five-acre (or larger) parcels WISH they had bought a smaller piece! The above property has it all: A manageable size, loads of ambiance, and a great location five minutes from Lodi! Just drive east on Acampo Road (It’s a pretty drive even if you’re not in the market), and keep your eye out to the south side of the road. You’ll see two For Sale signs side by side identifying two similar parcels, both in walnuts. Mine is the one with the Statesman Realty sign! (Duh).

NATIONAL SPEAKER Rita Perez tells of her husband’s oft-repeated adage, “Don’t sweat the small stuff.” She says it’s his standard answer to almost any situation. One day, Rita was fed up. She asked her husband, “Okay. You always tell me not to sweat the small stuff. So what’s BIG stuff?” Her husband said, “You’re born, that’s big stuff. You die, that’s big stuff. Everything else? Small stuff.” I think that’s when she slugged him.

I HAVEN’T MENTIONED 19328 Page Court lately, partly because I expected it to be SOLD by now! This one is special. Nestled in a Windwood cul-de-sac, it’s larger (2400-plus square feet) than it appears from the street. My Sellers say they’ve put over $200,000 into improvements in the five years they’ve lived here, and I believe them! I have TWO PAGES of upgrades and special features, if you’re interested. This home delivers more than any new home you could buy. The Sellers weren’t planning on moving for a long time! Plans change, and this could be the home you’ve been seeking! $725,000.

LOTS OF INTEREST in 123 East Walnut, that barely-eastside six-plex listed at $699,950. I have several investors considering this property, but as of now it’s still very much for sale!

CONGRATULATIONS to longtime Lodi police officer Ernie Nies on his retirement from the force. I’ve had the pleasure of serving quite a few lawmen and women over the years, including Ernie and his wife Debbie. People in that profession (and their spouses) don’t get enough credit for what they do! I know I speak for thousands of Lodians when I say, “You are appreciated.”

Have a great week! See you next time.

PRESIDENT'S CORNER #11

2007-03-26T15:33:00.002-07:00

Real estate outlook improves

Talk to three different people and you’ll get three different answers regarding the local real estate market. One thing virtually all experts agree on: The long-term prospects for our Valley are GREAT! The short-term picture? Opinions differ. The following is an excerpt from a news story written by Sanford Hax of the Fresno Bee. Bear in mind that the writer’s perspective is Fresno-centric, but much of the information applies equally to our little corner of San Joaquin County:

Low interest rates, a growing population, relatively low prices and an abundance of land will help make the central San Joaquin Valley a desirable real estate market in 2007, a panel of forecasters said Thursday.
Experts representing various real estate segments presented their views to about 600 people at an annual forecast sponsored by the Economic Development Corp. serving Fresno County.
The weakest sector appears to be residential real estate, where the latter half of 2006 brought sharply reduced sales and lower prices.
What 2007 brings remains to be seen. DataQuick Information Systems released figures Thursday that showed sales and median prices of new and existing houses slipping in February from January. But Leonard said real estate agents are reporting more traffic at open houses and that more homes are entering escrow.
Leonard's prediction: a boost in transactions of 6% to 9% this year, with prices staying stable because a large supply of houses for sale will keep a lid on appreciation.
Meanwhile, home builders finally are starting to see some hopeful signs after months of soft sales and excess inventory.
"The bottom of the decline in new-home construction has been reached," said Michael Prandini, president and chief executive of the Building Industry Association of the San Joaquin Valley.
Builders are reporting more people visiting model centers, shrinking supply of unsold houses, lower land prices and interest rates and prices that have stabilized.
The commercial real estate sectors appear to be stronger and continuing with little change from 2006. The repositioning of Rite Aid, Walgreens, Longs and CVS in the highly competitive drugstore wars will continue as they add sites in the Valley, predicted Jack Messina, a senior vice president at Colliers Tingey International.
Target, Orchard Supply Hardware and Lowe's will add stores in the Valley, while more national tenants such as Cabela's, Staples and Dillard's will sniff around, looking for sites, he said.
Office buildings also will continue to be in demand, predicted Brian Decker of Colliers Tingey. Office buildings will be constructed at or near River Park and Palm Bluffs Corporate Center, but the vacancy rate will still remain fairly low compared with competing cities.
Mike Harter of Grubb&Ellis/Pearson Commercial said the number of apartment deals will decline, but rents will climb modestly.
"It's the end of Mr. Toad's Wild Ride," he said of the recent real estate market. "Sanity is being restored."
He said buyers and lenders will be more conservative and added, "Real estate will have to compete for the investment dollar."
My personal observation is that our local residential real estate market appears to be stabilizing, although list prices must be right or Buyers will pass you by. The sheer number of homes on the market means that proper pricing is critical. In other words, welcome to a more “normal” real estate market.

March 18th, 2007

2007-03-26T15:33:00.001-07:00

SPRING! That time of year when dandelions and For Sale signs sprout in front lawns across the land. Don’t let anyone tell you the real estate market has tanked. The market HAS changed dramatically, but folks go right on buying and selling and moving in and moving out and moving on. Life goes on!

CONGRATULATIONS to David and Sue Kyes on their successful purchase of the home of their dreams! This is one excited family. A Thank You also to Realtor Denise Forsyth, who represented the Seller in this adventure. Thanks, Denise.

And while we’re at it, Thanks to Wesley Rice of First Horizon Home Loans, whom I called in when David and Sue first began to look for a home. As usual, Wes made the financial end of the transaction a smooth and pleasant ride. He got them into a great VA loan! Lastly: Thanks to my right-hand Broker Associate Greg Adams for his work in keeping all the many details on track. What a team we all make! With Wes and Greg in the mix, my escrows are almost boring! Boring is a GOOD thing in this bizness. Happy beginnings all around.

COMING SOON to this space: A great opportunity to own a close-in 1.7 acre homesite for only $320,000! Enjoy your own orchard! Carve out enough space to build your dream home. Only five minutes from Lodi. Natural gas runs along the property line! (That’s rare in the country). Interested? Call me for details, or if you’re working with a Realtor already, have THEM call me!

REDUCED! That charmingly-updated upstairs condo at 700 McCoy Court Number 18 is now priced at $164,950! One-car garage near the foot of the stairs! Updated kitchen! Near-new carpet and vinyl flooring! More! At this low price, someone’s bound to move quickly. Call for a private showing.

FURTHER CONGRATULATIONS are due to Jack and Barbara Chandler on the successful SALE of their Lodi property. Referred to me by Lodi investment advisor Tom Burns, the Chandlers were a pleasure to represent. I want to thank Lodi Realtor Steve Jarrett for serving his Buyer clients well in this transaction Thanks, Steve! And of course, Greg Adams was instrumental once again in making the escrow run on all cylinders.

PRICES ARE SOFT, interest rates remain low. Anyone who recognizes the strategic importance of this fleeting period is BUYING! Most folks will stay on the sidelines until prices start to rise…

MORE EXCELLENT LISTINGS COMING SOON! Watch this space for details. I wish you a wonderful Spring week! See you next Sat.

THE PRESIDENT'S CORNER #10

2007-03-26T15:30:00.001-07:00

THE REAL WORLD: So-called “reality” TV shows and other first-person accounts often make the home-selling or home-buying experience look far different than what it really is. A pet peeve of mine is that many of the alleged Realtors portrayed on these shows and in print make most real estate professionals cringe! The bad examples run from unprofessional behavior to actions that could result in the loss of the Realtor’s license to practice the profession. I guess the message of this week’s column is, Don’t judge Realtors by what you see on the tube or read in someone’s horror story!

THE NUMBERS are still on the way up…but not for long. As of this writing, one in every 54 California adults is the proud possessor of a real estate license. Statewide, the number topped the half-million mark in 2006, and it’s still climbing. Historically, it takes two to three years AFTER a real estate market downturn for people to get that blinding flash of the obvious: This is a tough way to make a living! Then the numbers begin to fall.

THE EIGHTY-TWENTY RULE: You’re probably familiar with the old adage that in most sales organizations eighty percent of the business is generated by twenty percent of the people. In residential real estate sales, the numbers are even more dramatic: NINETY percent of the business is done by less than TEN percent of licensees. This is largely due to the fact that many who hold licenses don’t actually practice the profession. Most of those who do, and have success doing it, are true professionals and worthy of trust and respect.

THE WORD “REALTOR” doesn’t refer to just anybody who passed the state test and obtained a license. Realtors are members of the National Association of Realtors (and the California Association of Realtors, if they practice in this state). Of the five-hundred-thousand-plus licensees in California, less than two-hundred thousand are Realtors. Realtors are held to a much higher standard of conduct than licensees. The Realtors’ Code of Ethics was outlined in this space over several weeks last year by 2006 Lodi Association President Paul Mertz. If you followed Paul’s explanation of the Code, you know that it pays to be represented by a Realtor.

California is the most litigious state in the nation. On top of all of the other duties and responsibilities that come with the job, California Realtors are tasked with keeping their clients (and themselves) out of court by writing clear, tight contracts. Communication is the key to happy clients and long-term success in this business.

While we’re on the subject of Realtors, please indulge me as I address one last pet peeve: There is NO “i” in the word “Realtor”! Most people say, “REAL-tor” (the correct pronunciation). But some folks, even some Realtors, say “REAL-i-tor” or “REAL-i-tee”. I’m part of a campaign to rescue people from this misconception. Thanks for staying with me to the end. Now that I’ve gotten that off of my chest, I feel much better. The bottom line: When you need professional representation, call a California Realtor!

March 11, 2007

2007-03-06T09:29:00.000-08:00

THE FIRST MOSQUITO OF SPRING settled on my arm as I basked in the afternoon sun last Sunday. One swat and he was dispatched. (Trivia Question: What’s the last thing that goes through a mosquito’s mind when he hits your windshield? Answer: His rear end).

INVESTORS: 123 East Walnut Street, at the corner of Walnut and Stockton Streets across from Smart & Final, is arguably the cleanest apartment complex you’ll ever see. Six well-kept units, each with two bedrooms and one bath. Great cash flow! Solid tenants! Owned by a painting contractor. These apartments are in demand. We’ve received several offers, but as of this moment the property is very much for sale. Call me for further details or to arrange a private showing. Since showings are an inconvenience to the tenants, my Sellers request only qualified serious Buyers. Price? $699,950.

SPRING AHEAD TONIGHT! To clarify, I’m referring to setting your clocks forward. Don’t forget. Set those clocks so you won’t show up an hour late for church in the morning! The State of Hawaii doesn’t do Daylight Savings Time. Consequently, sometimes you’re TWO hours earlier there than here, and some times of year you’re THREE hours earlier. Confusing. But hey. If you’re in Hawaii, it don’t matter, Brah! Even jet lag is more fun in Hawaii.

OPPORTUNITY KNOCKS! Own your own office building! Excellent downtown location (corner of South Lee and Lodi Avenue)! Formerly used as dentist’s office and as loan company location. Six private offices, reception area, two bathrooms, kitchen area. Private lender may allow assumption of existing loan. New carpet! Recent interior paint! Call Statesman Realty’s Richard Mahoney (listing agent) at 642-0532 or visit his Open House today from 12 to 2 p.m.! 321 West Lodi Avenue is listed at $385,000.

REAL ESTATE, THE BEST INVESTMENT: Someone once said, “Never ask a barber if you need a haircut.” Obviously, a column written by a real estate broker could be expected to be bullish on real estate (no bull). However, like the Hair Club For Men spokesman, I don’t just sell real estate, I’m a customer myself! (NOTof the Hair Club…too late for that. I’m talkin’ real estate). Most veteran Realtors I know are also serious real estate investors. Even a slow learner like me can figure it out after a couple of decades of helping other people build fortunes. How about you? To paraphrase Ben Stein, the most important thing you can do for your future is to decide what you want to do. Where do YOU want to be financially in ten years? Real estate can take you there.

THANK YOU to all who have congratulated me (and Julie) on the arrival of our very first grandbaby! Winnie (Winifred Jane Wieland) just gets prettier with each passing day. Have a great week! See you next Sat.

THE PRESIDENT'S CORNER #9

2007-03-06T09:28:00.001-08:00

MORE BORING STATISTICS? Not this week. Although it’s instructive to see what the real estate market is doing across the state and the nation, the point that I made at the end of last week’s column still stands: “All real estate is local.”

The Chief Economist for the National Association of Realtors, David Lereah, painted an interesting picture of the state of the U.S. real estate market at recent meetings in Chicago and New Orleans. His main point? “All real estate is local.”

In other words, real estate markets differ according to location. Lereah announced that both coasts are currently experiencing a contracting market that’s more severe than in other areas of the nation. That’s a consequence of the dramatic uptick in property values both coasts have enjoyed in recent years. Lereah noted that even in today’s soft real estate market, nearly 40 percent of the nation’s real estate markets are NOT contracting, but expanding!

THERE’S AN OLD ANALOGY that may be worth repeating here: “If I have one foot in boiling water and the other in ice water, on an average, I’m comfortable.” If 60 percent of the nation’s real estate markets are contracting and 40 percent of the markets are expanding, the average of those two conditions tells me absolutely nothing about any specific real estate market.

THE LOCAL PICTURE is very bright, if you look far enough into the future. Demographers predict that our Central Valley will see a surge in population in the years to come. One more reason to buy as much local real estate as you can handle IF you have the time to wait for the demand to once again outstrip the supply. Wise investors recognize the opportunity. As Will Rogers was fond of saying, “Buy land. They ain’t makin’ any more of it.”

IN SOME BAY AREA real estate markets, Realtors complain about the lack of inventory. This is another example of the “All real estate is local” axiom. A few paragraphs back, I quoted Lereah as saying “both coasts” are experiencing a contracting market, but in some communities near the coasts, the opposite is true. Go figure.

THE LODI AREA continues to be an attractive place to live and work. The long-term real estate investment opportunities are enormous. If you’re looking for the very best long-term investment, talk to your CPA about real estate. Then talk to a local Realtor who can help you plan your strategy. Most people seriously overestimate what they can accomplish in one year…and seriously UNDERestimate what they can do in ten years. “A journey of a thousand miles begins with a single step.” The time to get moving is now. Happy investing!

March 3, 2007

2007-03-06T09:26:00.000-08:00

“ALL IS PERSPECTIVE. To a worm, digging in the ground is more relaxing than going fishing.”
-Clyde Abel

Well said, Clyde. It’s true. Most of the worms I’ve taken fishing have been reluctant at best. They would have preferred to stay home.

CONGRATULATIONS to Jim and Annette Murdaca on the successful SALE of their Lodi property! Now it’s time to celebrate at…where else? Pietro’s. I can’t get enough of that good food! A Thank You to veteran Lodi Realtor Myrna Carter for her job as Buyers’ representative in this adventure. Thanks, Myrna!

TRIPLE WHAMMY! Statesman’s Greg Adams closed THREE “sides” in one day last week! Happy clients all around. Way to go, Greg! Greg’s on track for a great year (and as my Transaction Coordinator and all-around support person, he’s helping MY 2007 to be my BEST YEAR YET!). Greg’s also my Grandpa Mentor. He shows me how it’s done. With NINE grandkids, he’s way out in front!

WINDWOOD CHARMER: 19328 Page Court has so many extras I can’t name them all here! You’ll just have to see for yourself if you’re interested. Over 2400 square feet of lovingly upgraded home on a landscaped cul-de-sac lot! Pool! Spa! Thousands of dollars in upgrades! $725,000.

CONGRATULATIONS ALSO to Kristine Leach (again). This time, it’s for the PURCHASE of her Lodi home! We closed on her Stockton home on the last day of January. I negotiated a Seller rent-back for her so she could stay in her Stockton home until the Lodi home was ready to close. We closed on the last day of February. Feeling strong? She’s moving in TODAY! Feel free to go and give her and her friends a hand. Thank You to Realtor Ray Zvirbulis (these Irish names are hard to pronounce), Sellers’ rep on this deal. Great job, Ray! Ray’s Sellers have moved to Arkansas to raise horses. Sounds good to me!

DOUBLE WHAMMY! Statesman’s own Pat Piccardo closed TWO sales (two duplexes) on the same day this past week! He’s on schedule to reach his 2007 goals (great job!).

TO READ OLD COLUMNS, the occasional tall tale, and assorted other items of interest, visit my blog at TheRealEstateStory.blogspot.com. I try to keep it interesting!

MY OREGON FRIENDS Jim and Sheila Reynolds entrusted the sale of their family home in Lodi to me. This was especially meaningful to me because Jim is Managing Broker for an office of forty-plus Realtors! Thanks, folks! (We closed escrow this past week). Thanks also to Realtor Tami Tuel, who brought the Buyer to this transaction. Good job, Tami!

“THE BEST THING ABOUT THE FUTURE is that it only comes one day at a time.”…Abraham Lincoln. Until we meet again, have a great week! One day at a time.

THE PRESIDENTS'S CORNER #8

2007-03-06T09:24:00.000-08:00

C.A.R. reports sales decrease 12.6 percent in January, median price of a home in California at $559,640, up 1.9 percent from year ago

LOS ANGELES (Feb. 27) – Home sales decreased 12.6 percent in January in California compared with the same period a year ago, while the median price of an existing home increased 1.9 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today. Here are some bullet points:
· After holding steady at 445-450,000 units on a seasonally adjusted basis from July through December 2006, seasonally adjusted sales declines slightly in January 2007 to 437,580 homes.
· Sales fell 12.6 percent year-to-year in January, the smallest year-to-year decline in more than a year and about one-third smaller than the year-to-year declines of a year ago. Sales declined 3.2 percent compared to December 2006.
· Across counties and regions, raw sales (not seasonally adjusted) generally fell month-to-month by an average of 27 percent, reflecting the seasonal nature of the market. It is common for sales to drop by large margins from December to January. January and February are typically the weakest months for home sales, each accounting for about 6 percent of annual sales.
· The statewide median fell slightly month-to-month in January to $559,640, but continued to climb in year-over-year terms with a 1.9 percent increase from $549,460 a year ago. The median fell 1.7 percent from the December median of $569,560.
· The median price has shown little upward movement since August 2005, when the median was $567,320, and has fluctuated in the range of $550,000 to $576,000 since March 2006.
· Across the regions of the state, all but three regions (Los Angeles, San Francisco Bay Area, Riverside/San Bernardino) posted a year-to-year percent decline in January 2007. Regional prices averaged about a 2 to 2.5 percent decline year-to-year, with a more mixed month-to-month picture of small increases and decreases. Prices continued to be weakest in areas that experienced significant home building activity in the recent past and/or were popular for second-home purchases.
· The unsold inventory index jumped to 9.1 months in January after hovering in the range of the long-run average of 7 months since mid-2006. The San Francisco Bay Area continues to see leaner inventory levels (3.9 months) compared to the state as a whole and Southern California (10.4 months) in particular.
· Statewide listings displayed an increase that is characteristic of the start of the year, but remained near their long-run average in January. As such, the increase in unsold inventory from December to January was mainly attributable to a decline in sales rather than an increase in the number of listings.
· Time on the market (TOM) rose to 75 days in January, up slightly from 72.7 days in December. This was the highest January reading since 1996 when the figure was 74 days. TOM generally shows a slight increase through the off-season, mainly from December through February.
· The share of homes on the market 30 days or less held steady at 20 percent. On the other hand, the number of homes on the market 90 days or more has nearly tripled from 15 percent to 40 percent over the past year.

Please bear in mind that ALL REAL ESTATE MARKETS ARE LOCAL! It’s dangerous to apply statewide or national statistics to any particular local market. However, the above data helps you get a glimpse of the bigger picture.

THE PRESIDENT’S CORNER #7 State Of The Market

2007-02-26T09:34:00.000-08:00

STATE OF THE MARKET: Inventory of existing homes for sale in Lodi is hovering in the high 300’s. As I write this column Monday morning, Lodi has 366 active home listings and 33 condo listings for a total of 399.

This compares to total-inventory levels of around 85 homes and condos for sale through the early 2000’s and up to mid-2005 when the real estate market topped out. Today’s inventory is over three times that of the frantic Seller’s Market years.

Home values have slid (not a free-fall by any means, but a slow gradual slide) in the greater Lodi area from the summer of 2005 to the present. Interest rates for home mortgages have remained very attractive. This combination of soft home prices and competitive interest rates has created a wonderful opportunity for Buyers!

There’s an old saying in the real estate business: “Most Buyers don’t buy in a Buyer’s Market.” By definition, a Buyer’s Market is one in which Buyers are scarce and inventory is large. When supply outstrips demand, Sellers must adjust their prices downward to if they want get their homes SOLD. That’s the current climate for the Lodi-area home market. Knowledgeable Buyers recognize this unique and fleeting opportunity. Most potential Buyers, however, will wait until the real estate market bottoms out and prices begin to rise again. THEN they’ll re-enter the marketplace.

New-home builders are currently offering many incentives to Buyers along with reduced prices, especially on standing inventory. Most developers are actively courting Realtors and (once again) offering commissions to Realtors who bring their Buyers to their subdivisions. (One consumer tip: BRING YOUR REALTOR with you the very first time you visit a subdivision. If the developer knows you’re actively searching the entire real estate market…not just new homes… with a real estate professional, you’re likely to “get more respect” than if you’re perceived a an innocent who has no representation and little savvy. Your Realtor can help you get a better deal, just by showing up and being present as you shop!).

HAS THE MARKET “STABILIZED”? I’ve heard this question often. My opinion is that Buyer activity is increasing as more people recognize the current opportunities. However, prices are still soft. Wise Sellers are still vigilant about adjusting their prices downward when their homes don’t sell at a particular price. Buyers are more wary and cautious than they’ve been in years, and for good reason. This morning I spoke to the Realtor who represents the Buyer on one of my escrows (I represent the Seller). This Buyer’s agent says she showed her client TWENTY-FOUR HOMES before they chose my listing. Three years ago, this same Buyer may have had three or four homes total to choose from!

The bottom line: Prices have NOT “stabilized”, but the general mood in the market is more optimistic. 2007 promises to be a healthier year for Buyers and Sellers. The market has returned to a more “normal” state, with plenty of inventory, attentive Sellers, and Buyers who have the luxury of being able to shop and compare without being forced to make a knee-jerk decision due to scant inventory. It’s all good!

February 24th, 2007 Winifred Jane Wieland column

2007-02-26T09:28:00.000-08:00

THE REAL (ESTATE) STORY
By Larry Underhill

SHE BATTED HER LONG DARK LASHES and I was smitten. It was love at first sight. I met her shortly after she arrived in town Monday morning. One look into her deep blue eyes and I was a goner.

We hit it off immediately. I like the way she seems to hang on my every word. She’s very attentive and a good conversationalist (she lets me do all the talking). We spent most of Monday together, getting to know each other. This little lady warmed right up to me! After knowing her only an hour, I was changing her diaper.

You guessed it. I’m a new Grandpa. My very first grandchild is Winifred Jane Wieland. We’re not sure if she’ll end up a Winnie or a Freddie. All I know is that all the rapturous talk I’ve endured from Grandmas and Grandpas over the years is TRUE! I’m loving this.

The little family is safe at home as of Tuesday. (I can’t believe I’m urging pictures of my grandchild on you nice people. Never thought I’d do such a thing! Grandparenthood makes you act in strange ways.).

CONGRATULATIONS to Gary and Jeanne McGee on the successful SALE of their Lodi home AND on the successful PURCHASE of their (nearly-) new Lodi home about a half mile away! The McGees could be poster kids for this current soft real estate market. I listed their home almost exactly TEN MONTHS AGO. The McGees have worked closely with me as we responded to the sliding real estate market with several price reductions. The GOOD news for Gary and Jeanne was that as their list price went down, they watched the list prices on their potential replacement homes drop. All the boats float on the same tide.

This past week, all of our efforts came to fruition. With the help of my strong right-hand Broker Greg Adams, we structured an arrangement that allows the McGees to stay in their original home until their planned upgrades to the new home are complete. As a local builder recently told me, “In this tough real estate market, I need a real pro if I expect to get the job done.” We “got it done” once again. Thanks also to Realtors Jerry Mason (he brought the Buyers) and Sandy Vargem (she represented the Seller on the McGees’ new place). Good job all around!

MY LISTINGS KEEP SELLING! What a happy problem. I have room for more right-priced listings if you know of anyone who really wants to get their home SOLD (not just listed). If you know anyone who needs my help, either Sellers or Buyers, please call me with their name and number! I promise to serve them well. Thanks in advance.

MORE GREAT LISTINGS ON THE WAY! Watch this space for details on a couple of beauties coming soon. Have a great week! See you next Sat.

Introducing Winifred Jane Wieland, World's Cutest Granddaughter!

2007-02-20T17:32:00.001-08:00

The photos were taken when Winnie was about five hours old. Ain't she sweet? She's very alert. She's awake a lot of the time, taking in the sights and sounds and smells around her. She's also a mellow kid, very serene. She doesn't cry much, and when she does, it's not for long. In short, my conclusion is that this baby is the sweetest, most intelligent child the world has ever known.

I may be slightly biased. Winnie is my very first grandchild.

Pictorial Evidence Of Grandfatherhood.

2007-02-20T15:13:00.000-08:00

February 17, 2007 Pokey T. Dog and Other Adventures

2007-02-14T14:26:00.000-08:00

THE REAL (ESTATE) STORY
By Larry Underhill

The Further Adventures of Pokey T. Dog: As you may recall, Pokey is a Rat Terrier. As you may already know, terriers tend to be a bit tightly wound. High-strung. Wired. Pokey fits that description.

If you were to ask him, and if he could talk, Pokey would tell you that HE is the owner of our home. He would probably speak warmly about Julie (she’s much better-trained than her husband), and he’d probably have a deprecating remark or two to say about me. After all, I have the audacity to require him to GET OFF OF THE BED when I want to be in it myself. This causes Pokey to growl menacingly. From his perspective, he owns it ALL, bed included, and any infringement upon his territory is fightin’ words.

If he wasn’t such a fun little guy most of the time, his cranky side would have worn thin by now.

BACK TO REAL ESTATE: What a market! My year is off to a flying start, thanks to several of YOU (Thank you!). My little band of Realtors is also beginning well. Busy hands are happy hands! These guys are BUSY! Happy, too.

STATESMAN REALTY’S Mark Edwards chalks up another happy ending/beginning: This past week he helped his clients Mike and Kristi Fluetsch, Lodi real estate attorneys, close escrow on another acquisition! Congratulations to the Fluetsch’s AND to Mark.

OPEN AGAIN TODAY: 640 Eureka Avenue! We’re negotiating with a Buyer as I write this piece, but as of this moment (Tuesday night) it’s very much for sale! All this could change by Saturday when you read this. Put it this way: Unless you hear different, Statesman’s own Richard Mahoney will be holding court at 640 Eureka today from 12 noon to 2 p.m. This is a great starter home. Almost 1200 square feet of charm with two bedrooms, one bath, attached one-car garage, central heat and air. Sun Room! Close to schools, park and shopping and PRICED RIGHT at $289,950!

STATESMAN’S Don Brandt, Broker Associate with more years in real estate than me, closed another transaction last week. Celebration all around! Don’s year is off to a great start.

Don was Prez of the Lodi Association of Realtors way back when it was the Lodi BOARD (Bored?) of Realtors! That was twenty years or so back in time. Don’s the most tech-savvy, computer-literate, wired (not “wired” like Pokey, but technologically informed) of our little group.

I GUESS Pokey’s on my mind because once I finish this column, I’ll walk him around our neighborhood for a couple of miles. Tucker the little dude out so he won’t terrorize (or terrier-ize) us tonight when we’re trying to sleep! Gotta go. Have a happy week! See you next Sat.

February 10, 2007 Kameron Keefer Benefit

2007-02-14T14:25:00.000-08:00

THE REAL (ESTATE) STORY
By Larry Underhill

LODI REALTOR Sara Lee Okazaki and her friends know how to throw a party! Last Saturday’s benefit for Tokay High student Kameron Keefer was a huge success. The Grape Festival grounds’ Chardonnay Hall was packed with hundreds of attendees. Dozens of friends of the Keefer family came together to support the effort in one way or another. It was gratifying to be served a hearty plate of Mexican food by a high school student in a “Kare For Kam” T-shirt! Good food, great music, and a worthy cause. What’s not to like?

YOU CAN READ the Kam Keefer story online at KameronKeefer.com. Now a sixteen-year-old, Kam’s been battling cancer since early last year. He has been through several rounds of chemo. The good news is that he’s on the mend after a valiant battle. The rest of the story is that the medical bills are huge. If you need a strong dose of inspiration, check out Kam’s website! You’ll be glad you did.

PRICE REDUCED TWENTY THOUSAND BUCKS! 1800 Orchis Court is 2134 square feet of single-story semi-custom home on a Westside Lodi cul-de-sac. At the newly-reduced price of $479,000, it’s one of Lodi’s best values. Check out the oversized bedrooms and vaulted ceilings! Great back yard with recently-installed decorative block perimeter wall! These Sellers have asked me to tell you that they’re motivated to sell and ready to DEAL on this fine home. Call me for details (or ask your Realtor to call me).

OPEN TODAY and hosted by Statesman’s Richard Mahoney from 12:00 to 2:00: 640 Eureka Avenue! Almost 1200 square feet of Northside charm. Two bedrooms, one bath, attached one-car garage, central heat and air. Check out the Sun Room! Close to schools, park and shopping and PRICED RIGHT at $289,950! (NOTE: As I sat down to write this, a local Realtor called to say there’s an offer on the way on this home! Experience tells me that an offer does NOT necessarily equal a sale, but I thought I’d let you know that it MIGHT be in escrow by the time this paper hits your flower bed. Same thing happened on another listing of mine a short time back. Somebody should tell these Buyers that the market’s BAD so they’d quit buying all these homes! It’s gonna give the press a bad name.).

SPEAKING OF SALES, congratulations are in order for Richard Birk on the successful sale of his Lodi property! Richard was referred to me five or six years ago by friends and serial clients Brad and Julie Kluza. I’ve kept in touch with Rich over the years, and now at long last I get to celebrate our success with him. THANK YOU, Brad and Julie! (And thanks to Realtor Suzie Hohsfield, who represented the Buyer).

I CAN’T THINK of the Kluzas without remembering their daughter Ashley. Today, Ashley’s a young lady and an accomplished horsewoman, but when she was seven or eight and tagging along with Mom as we looked at homes, Ashley was a kick! “Larry! There’s a park! Can we stop and swing?” I was all for it, but Mom prevailed and we pressed on in our home search.

MORE GREAT LISTINGS on the way! Watch this space for details. And if you run across a friend or family member who needs a hardworkin’ Realtor, please call me with their name and number! I promise to give them the same high level of service that I’d give you. Thanx in advance! See you next Sat.

February 2, 2007 World Of Wonders Science Museum

2007-02-14T14:24:00.001-08:00

THE REAL (ESTATE) STORY
By Larry Underhill

WOW! That’s what I said when I received a call from Dr. Kathy Beckman, co-organizer of last week’s World Of Wonders fundraising event. If you’re not familiar with the World Of Wonders project, go to WOWScienceMuseum.org and check it out!

Dr. Beckman was calling to congratulate me. I was the high bidder on a 15-foot kayak in their silent auction. My wife Julie will be so pleased. The kayak can sit beside the canoe in our side yard. It’s bright yellow, so it’ll blend nicely with the forest green canoe. As I write this, Julie hasn’t yet heard the news. Would you like to break it to her for me?

The World Of Wonders Science Museum is a vision that’s catching fire! Thanks to the contributions and in-kind donations of many Lodi-area businesses and individuals, the Museum is on track to open its doors in the spring of 2008. Think of San Francisco’s Exploratorium in our own back yard!

LAST WEEK’S fundraiser put the Museum over the top of the initial goal: $165,000 cash in hand. Now the construction can begin. The organizers of the fundraiser, Dr. Beckman and Sally Snyde, put on a fine fandango! Next up: the Business Network International Charity Golf Tournament on April 21! A few years back, I started Lodi’s first chapter of BNI (Business Network International). Now Lodi has FOUR chapters and a fifth on the way. My Lodi Founders’ Chapter of BNI puts on this annual tournament. This year, the proceeds go to WOW, Lodi’s Pregnancy Resource Center, and the Pregnancy Help Center of Stockton. Want to play or help sponsor the event? Call Debbie Ruiz at 810-0071 or Mike Roush at 334-1029. Not a great golfer? You’ll fit right in. Remember: They let ME play!

SOLD! Congratulations to Jeff Johnson on the successful purchase of a great Old Lodi fixer. Jeff’s a carpenter. By the time he’s finished with this landmark property, it’s be another Old Lodi jewel! Jeff was referred to me by Amanda Glissman of Capitol Mortgage, who delivered Jeff a great loan in record time. Thanx, Amanda!

CONGRATS, CONT’D…I’ve enjoyed working with Jack and Tina Leach a couple of times over the years. When Jack referred his sister Kristine to me, it was the greatest compliment a Realtor can receive! I listed Kristine’s Stockton home for sale, and it just closed escrow. Since I negotiated a Seller rent-back, she can rest easy until it’s time to close on the Lodi home she’s buying! It’s been a fun ride. I told Jack, “I’ll take FIFTEEN MORE Kristines if you have ‘em!”

LOTSA COLOR PICTURES and information on our many listings is available at StatesmanRealty.com. Come on over! Hope to see you there. And a last word on the World Of Wonders Science Museum: There are still many ways to help support the project! Ten years from now, it’ll be satisfying to look back and know that YOU had a part in bringing this Lodi landmark to life. See you next Sat! Have a happy week.

January 26, 2007 Samba Da' in Monterey (Sly McFly's)

2007-02-14T14:22:00.000-08:00

THE REAL (ESTATE) STORY
By Larry Underhill

Statesman’s Greg Adams took great care of my clients during my quick trip to Monterey last week for California Association of Realtors Directors’meetings. He’s nursing a handful of escrows for me plus his own load AND assisting me with the marketing of my listing portfolio. The guy’s GOOD! I’m always just a call away when I’m out of town, but it’s good to know Greg’s on the job and on call whenever I venture out of Lodi. While I was away, Greg closed one of his escrows and moved mine further along the track toward happy endings.

THE MEETINGS were informative and productive, as always, although sitting in conference rooms with the blue Pacific just outside the door is HARD! If it was a classroom, I would have been sent to the principal for daydreaming. Sitting for (literally) ten to twelve hours a day is hard on your bones!

I BALANCED the drudgery with some fine Monterey meals with friends and fellow Directors from Lodi, some great walks along Monterey Bay…and Friday night, some great music at Sly McFly’s in Cannery Row. Most of the crowd was half my age, but music’s the universal language! Geezers were welcome. The band was SambaDa’, an Afro-Brazilian-Samba-Reggae-Funk sound augmented by SEVEN strong players! The dance floor was jammed (I was adjacent to the dance floor, not on it!) and the mood was festive. The music blasted all thoughts of MLS Wars and other real estate issues from my mind. Check out SambaDa’ at SambaDa.com.

COME BY AND SAY HELLO! Today from 12 to 2, I’ll be hosting 202 North Crescent Avenue! I have no illusions about Open Houses. I know I’ll meet the neighbors, folks who will say, “I always wanted to see the inside of this home!” and friends who drop in to say Hi. That’s okay! I consider it a fringe benefit to getting my client’s home SOLD! And this one may BE sold by the time you read these words. Lots of interest. Located at Crescent and Locust and built in 1947, this home has been lovingly upgraded, leaving the original character intact. Come and see the gourmet kitchen with pullout drawerss in most cabinets (even in the island)! Lush landscaping front and back, new fencing, and recent paint! Two bedrooms with a roomy LOFT that could become a third bedroom or study. Extra-wide staircase to the loft. $475,000..Hope to see you there!

DON’T OVERLOOK 1317 Candlewood Way in North Stockton. I’ve been talking with Lodi Realtors who have discovered this value. They’re bringing their Buyers! You can’t find a 1380-square-foot home THIS nice in Lodi for $319,950. Three bedrooms, two baths, COMMUNITY POOL! Garage is currently set up (including central heat and air) for a preschool. It can easily be converted back to a garage, or use the extra square footage for a play room!

OPEN TODAY and hosted by Statesman’s Richard Mahoney from 12:00 to 2:00: 640 Eureka Avenue! Richard met some nice people at last week’s Open House, some of whom are very interested in this home! Almost 1200 square feet with two bedrooms, one bath, attached one-car garage, central heat and air. Sun Room! Close to schools, park and shopping and PRICED TO SELL at $289,950! Come see for yourself.

FACTOID: During a tasty dinner in the Captains’ Room at Monterey’s Sardine Factory, I ran across a yellowed photograph from a hundred years ago. Back then, Pacific Grove’s Lovers’ Point was known as “Jesus Lovers’ Point”. How ‘bout dat? Have a great week! See you next Sat.

January 19, 2007 Pregnancy Resource Center update

2007-02-14T14:20:00.000-08:00

THE REAL (ESTATE) STORY
By Larry Underhill

WHAT DO Angelia, Juan, Drake, Kalian, Victor, Ethan, Manuel and Estevan all have in common? They’re all enjoying their first year of life, thanks to Moms who chose to allow them to live. Pregnancy Resource Center of Lodi was there for these young mothers at their point of decision. PRC offers unconditional love, counseling, and tangible help in the form of baby items and new-parent training (for Moms AND Dads). The Center also offers post-abortion counseling for women who have gone through that trauma, sometimes distant decades ago. It’s truly “a place of trust in a time of need”.

RECENTLY, $25,000 in annual support to PRC was lost when a large corporate donor cut their funding. Seems that the employee’s union disapproved of supporting an organization that isn’t pro-choice. How about you? If you’re interested in the difference PRC is making in Lodi, one life at a time, maybe you’d like to help close that $25K gap. Most of the workers at the Center are volunteers, and those who are paid staff happily work far beyond their job descriptions. This is one organization I can support without reservation.

OPEN TODAY from noon to 2:00 p.m.: 1800 Orchis Court is 2134 square feet of single-story semi-custom home on a Westside Lodi cul-de-sac. At the newly-reduced price of $499,950, it’s a real opportunity for the right Buyer! Oversized bedrooms! Vaulted ceilings! Statesman Realty’s Mark Edwards will hold this home open today. Come by and say Hello!

HARDWORKIN’ GUY: For his second act, Mark will host 202 North Crescent Avenue today from 3:00 to 4:30 p.m. Located at Crescent and Locust, a very desirable Lodi address, this one’s a charmer! Built in 1947, this home has been lovingly upgraded, leaving the original character intact. Gourmet kitchen with pullouts galore, even in the island! Lush landscaping front and back. Two bedrooms with a roomy LOFT that could become a third bedroom or study. I especially like the extra-wide staircase to the loft. Drop by today and check it out! $475,000.

OPEN TOMORROW and hosted by Statesman’s Richard Mahoney from 12:00 to 2:00: 640 Eureka Avenue! Almost 1200 square feet of Northside charm. Two bedrooms, one bath, attached one-car garage, central heat and air. Check out the Sun Room! Close to schools, park and shopping and PRICED RIGHT at $289,950! Drop in on Richard and see for yourself.

SLEEPER: 19328 Page Court is nestled in a cozy cul-de-sac, away from the bustle of life. The view from the street belies its size (over 2400 square feet of customized home). It’s easy to recognize the over $200,000 in upgrades and remodeling these Sellers have given this fine home in the five years they’ve lived here. Inground pool and spa with near-new Pebble Tec surfacing (about $10K worth!). Three bedrooms (possible fourth). Two well-appointed baths, one with a special walk-in tiled shower! Attached 3-plus-car garage! Great landscaping front and back. There’s more! Call me for a private showing. $725,000.

TWO QUOTES that are worth remembering: “Hating people is like burning down your own house to get rid of a rat.” That was Harry Emerson Fosdick. And that quote reminds me of another (anonymous): “Holding on to bitterness is like drinking poison and expecting the other person to die.” Good stuff, huh? Count on me for a cheery thought for your Saturday morning. See you next Sat!

THE PRESIDENT’S CORNER #6 Live Like A Sprinter

2007-02-14T14:19:00.000-08:00

THE PRESIDENT’S CORNER
Larry Underhill

LIVE LIKE A SPRINTER. This concept was brand-new to me when I first heard author Tony Schwartz speak. Schwartz and co-author Jim Loehr wrote “The Power Of Full Engagement”, a book about maximizing performance and a whole lot more.

“Living A Balanced Life”, the theme for my stint as this year’s president, is easier said than done. Realtors struggle even more than most folks to maintain a life apart from their chosen profession. This business can consume a person if they don’t set boundaries and intentionally carve out time for themselves! The concepts of the “Full Engagement” book are valuable whatever your profession may be.

Schwartz observes that most people live their lives like marathon runners. They conserve their energy and strength and never “go all out”. Instead, they work at less than optimum capacity for long periods with too little rest and play, which eventually leads to burnout…or worse. “To the degree that leaders and managers build cultures around continuous work—whether that means several-hour-long meetings, or long days, or the expectation that people will work in the evenings and on weekends—performance is necessarily compromised over time. Cultures that encourage people to seek intermittent renewal not only inspire greater commitment, but also more productivity.”

A sprinter can see the finish line before he/she leaves the starting blocks. A sprinter gives their all for the short burst. Then it’s time to rest and recover. Living life like a sprinter means going all out on a task and then resting. When you’ve taken the time to rest and to play, you perform at a higher level when you work!

THE PULSE OF LIFE: The authors observe, “Nature itself has a pulse, a rhythmic, wavelike movement between activity and rest. Think about the ebb and flow of the tides, the movement between seasons, and the daily rising and setting of the sun…Our breathing, brain waves, body temperature, heart rates, hormone levels and blood pressure all have healthy (and unhealthy) rhythmic patterns.”

Schwartz says that this culture too often encourages people to be “flat-liners”, to live in a linear way rather than engaging in healthy patterns of activity and rest. “We are oscillatory beings in an oscillatory universe,” he says! (And when you think of the implications of “flat-lining”, which is the opposite of the oscillation of a healthy EKG or EEG, you get a sense of just how serious all-work-and-no-play can be).

Anybody who encourages me to take more time to play gets my vote! I’ve recognized for years that I’m better at what I do when I’ve taken the time to enjoy life.

It’s Monday night, and I’ve had a productive day. Now it’s time to practice what I preach. I’m headed out to play a little blues with some musician friends. How about you? Smell those roses before you’re pushing them up! You’ll enjoy this life-trip more AND get more accomplished.

THE PRESIDENT’S CORNER #5 The View From Here

2007-02-14T14:18:00.000-08:00

THE PRESIDENT’S CORNER
Larry Underhill

THE VIEW FROM HERE: There are two fundamental ways to observe the real estate market. You can take the short view or the long view.

The long-term projections for Lodi-area real estate are just as rosy as ever! Demographers estimate that a full 25% of the state will live in the Central Valley by the year 2050. Over the long term, prudent investment in local real estate is as close to a no-brainer as an investor can come.

An elderly client of mine had purchased a handful of single-family homes and duplexes 25 years ago in a little town called Fremont. Needless to say, his modest investment made him a multi-millionaire…over the LONG term I met him when he decided to do a series of 1031 tax-deferred exchanges to move his real estate portfolio to the Lodi-Galt area. As he became familiar with our market, he exclaimed, “This is the next Fremont!” He recognized what many locals fail to see.

The long-term benefits of owning real estate are not limited to the Lodi area. In his bestselling book The Automatic Millionaire Homeowner, author David Bach says, “How can I be so confident about the real estate road to riches? Well, the fact is that U.S. real estate values have been going up steadily for more than four decades--an average of 6.3 percent a year since 1968, which is when the National Association of Realtors first started keeping track.” The long view, buying and holding real estate for many years, is beyond promising. It’s great!

THE SHORT VIEW: Homes are more affordable than they’ve been in years. Interest rates are hovering at record lows. Sellers have adjusted to the realities of the marketplace and are more flexible on price and terms than I’ve seen since the mid-‘90’s. Buyers are gaining confidence as they see that the sky isn’t falling and as they shift their thinking to the long view. In short (pun intended), it’s a great time to be a Buyer.

THE RULE OF 72: Take any interest rate and divide it into the number 72. The answer will give you the number of years it will take to double your investment. Based of the National Association of Realtors’ documented annual appreciation rate of 6.3%, this indicates that the home you own today should double in value in a little less than twelve years. With this in mind, just how important is the short-term real estate market?

If the last paragraph is true, wouldn’t it be good to own more than one property and reap the long-term benefits that come with it? Real estate investment is the best way I know for that average American to build long-term wealth with relatively low risk. For further information on this subject, read Bach’s book or call your favorite Realtor. Your Realtor can show you how to systematically build a real estate portfolio that can multiply your net worth many times…over the long term.

THE PRESIDENT’S CORNER #4 CAR Meetings in Monterey

2007-02-14T14:17:00.000-08:00

THE PRESIDENT’S CORNER
Larry Underhill

LAST WEEK’S California Association of Realtors’ Directors’ Meetings in Monterey were pivotal in one important way: The assembled representatives of almost 200,000 rank-and-file California Realtors voted to move forward with investigations into the feasibility of a statewide Multiple Listing System.

As the professional real estate landscape changes, the people who lead our state and national organizations have to be nimble to stay ahead of the curve! CAR’s stated concern is that California Realtors need to outmaneuver those who would try to do an end run on existing Multiple Listing systems. The Googles and Zillows of this world are well-monied and tech-savvy. They also have the advantage of being unfettered by the requisite politics and endless discussion that come with any large trade association. CAR leadership is promoting the idea of pre-emptively putting a statewide MLS system in place that would be superior to anything the outside-of-real-estate competitors could come up with.

California Association of Realtors’ MLS Task Force recommended that the Directors approve further research into the possibilities of some kind of statewide Multiple Listing system, with the understanding that existing MLS systems would be included in the discussions. The Metrolist MLS System has served our area (actually, from El Dorado Hills to Turlock to Tracy to Pleasanton) very well over the past few years. Metrolist has joined with several other MLS groups to offer Metrolist members extended coverage that will extend even into the Bay Area. Metrolist is led by visionary, entrepreneurial, market-driven people who know (and play) the MLS game well. I’m not convinced that our California Association of Realtors can do the job better, or even as well.

W.I.I.F.M.? What’s in it for you, the consumer? My concern, which is shared by many Realtors, is that a statewide MLS could diminish the level of excellence offered to Realtor members (and thus to their clients) rather than enhancing it. Presently, every Multiple Listing System knows that the only way to survive in the current competitive marketplace is to stay on the cutting edge of technology and to offer the very best service available. If there’s only “one game in town” (the statewide MLS system), where’s the incentive to maintain excellence?

These concerns were addressed in soothing tones by CAR leadership at the Monterey meetings. It’s common knowledge that the mega-Brokers (real estate companies with hundreds of agents) are driving the push for a statewide MLS because they don’t like having to belong to many smaller Multiple Listing systems. The balancing factor is that most of CAR’s membership is made up of smaller brokerages who don’t necessarily share the position of the big guys.
CHANGE. It’s the one thing you can count on. However, all change isn’t for the best. I’m confident that the people who are tasked with evaluating this upcoming possibility will do their best. I know our Lodi Directors will be faithful to speak their minds. Time will tell where this issue will go.