Real Estate News & Views

Buyers' Market?

2009-07-12T14:54:00.000-07:00

Buyers' Market? Depends where it is.

Two months ago, for a span of about 4 weekends. I showed about 25 to 30 homes to my clients in Corona. (Some homes we saw it twice or three times). They have impeccable taste and selected a great location to shop for their dream home. (West Corona below I-91, near Green River Road and the Canyon areas)

They were using Realtor.com to search for homes for sale. They sent me several long list of homes which I looked up on the MLS and promptly found 1/3 of that were already PENDING or SOLD!

I registered them on my Listingbook.com and told them to search there and to avoid the 'P' for Pending.

For several weekends they called me and I would drive over to meet them and showed them around. Many of the homes that were REOs were all sold quickly. Most homes that were left on the market with signs infront of the homes were mostly Short Sale.

When we drove around, we saw many homes with for sale signs but there were no brochures in the boxes, some sign posts did not even have the boxes for the brochure.

Many of the signs are just plain FOR SALE signs. My buyers insisted that I call the agents. Many of the calls I made were to the agents of the homes that either were Pending or already SOLD. THEY DID NOT HAVE ANY SIGNS INDICATED the CURRENT STATUS. WHAT A WASTE of time and my money for those cell phone calls. To have the agents said 'SOLD' or 'PENDING' when I called really irritated us.

Several of those homes with the signs did not have a lock box and if there are lock boxes, there were no codes indicated on the MLS, YOU HAVE TO CALL THE AGENT!. When I called, I got their answering voice mails. I left a message, 1 out of 5 of the agents returned the call, mostly a day after, but the rest - I never heard back from them. Some of the homes indicated on agent's remark on the MLS to call owners of the homes. The same thing happened, NONE of the owners ever call back.

My buyers asked me to write up offers for the homes (that were Short Sale) that they like so I wrote several offers and sent the offers in.

I never heard back from the agents. (Many of those agents were out of towners, many of the agents were local). One agent was very nice and he offered to send the information about all of his listings.

No matter what... In the end, it was quite an effort and much time spent and
it was kind of upsetting to me at the waste of papers that I used to print all of those contracts.

My clients finally decided to get a loan approval from their friend which they did. The friend also happens to have a RE license. The gentleman told them that he has contacts with the bank and he can go through the hoops better thatn I would and they should use him as an agent instead.

Two weeks later my clients called and said he could not get any agents for those Short Sale and REO homes to call him back either lol....

I was laughing out loud to myself and that was quite a stress reliever...

Appraisal

2009-06-26T09:41:00.000-07:00

I have had my own bad experiences (3) with Appraisal and I am so glad that it came to light that NAR finally is acting on this sorethumb issues.

One of the property was under $20K the purchase value, fortunately it was a standard sale and the buyer came up with his own $20K to make up for the downpayment and the transaction closed on time.

We are working with another LOW-BALL appraiser on one short sale property. The bank was ready to approve on it until the Lender's appraiser appraised it $3K less than the price on the purchase offer. GEEEEEEEEE!!!

Another property was also a short sale and it was appraised by an out-of-the-area appraiser (San Diego). The property was in Romoland (Sun City). It is in the midst of short-sale and REO properties which were sold around $180K. I had it on the market for $225K, had an offer for $210K.

The appraiser appraised it for the bank for $230K. The bank (Email me for the name) REJECTED the Shortsale approval request and told me to get another offer within 30 days. There is no way that I could get anyone else to submit an offer for even $211K.

30 days later the bank FORECLOSED on the property and sold it to another bank for $230K.

Guess what!! NOW THAT BANK PUT THE REO PROPERTY on the market at $165,000 and it is sold with 13 days for $169K. GO FIGURE why we have so many FORECLOSURE and REOs on the market.

Here are links to several appraisal issue, QUOTED FROM SEVERAL SOURCES:

Voices of Real Estate

All is not quiet on the Midwestern front, Posted by Steve Brown :
Here in the trenches, on the front lines of real estate in Ohio, we continue to face challenges:

First, there is an oversupply of houses, and home values are still in a general decline.

Second, although the average sale price is up, we have unprecedented marketing times and nervous appraisers (or at best very conservative appraisers). With sales nearly 20 percent below the previous year, many appraisers working on behalf of banks are brought in from out of town appraisal companies. They are only familiar with the market through Internet information. As a result, we have appraisals coming in as much as $100,000 below contract sales price – effectively killing the sale.

http://narblog1.realtors.org/mvtype/president/2009/06/all_is_not_quiet_on_the_midwes.html

Appraisal issue coming to a head
NAR calls for suspension of rules governing Fannie, Freddie loans
By Matt Carter, Friday, June 26, 2009.

Inman News
http://www.inman.com/news/2009/06/26/appraisal-issue-coming-a-head

NEXT SHALL WE WANT TO TALK ABOUT THE BANK? oh no, I am getting in trouble now........

Appraiser's

2009-06-05T10:40:00.001-07:00

I know that I am not the only one with the appraisal issues.
I have had 2 similar experiences with home appraisal but on the opposite spectrum.

Just the beginning for appraisal 'mess'
Letter to the Editor
By Inman News, Thursday, June 4, 2009.

Inman News
http://www.inman.com/opinion/letter-to-editor/2009/06/4/just-beginning-appraisal-mess

Home » Columnists » Categories
Appraising the new appraisal problem
Letters From the Home Front
By Kris Berg, Wednesday, June 3, 2009.

Inman News

http://www.inman.com/buyers-sellers/columnists/krisberg/appraising-new-appraisal-problem

Latest Economics Report From CAR

2009-06-04T00:09:00.000-07:00

The latest report by Robert A. Kleinhenz, Ph.D., Deputy Chief Economist on C.A.R's Economics & Market Trends web site stated that California Median Price Up for Second Month in Row.

Median Price Up for Second Month in Row

The median price of a home in California rose two consecutive months for the first time in nearly two years, beckoning calls for a bottom in home prices. The statewide median price of an existing detached home rose from $253,040 in March to $256,700 in April. The 1.4 percent monthly gain was the second in a row after a 2.2 percent gain in March. Despite month-to-month gains, the median price continued its string of year-to-year decreases, declining 36.5 percent from the April 2008 median of $404,470.

This is a touch of good news but today, the interest rate just gone up and that is not good for the buyers.

Read the whole report here:
http://www.car.org/economics/trendsarchives/markettrendsmay09/

$8000 Tax Credit As Down Payment.

2009-05-12T20:35:00.000-07:00

The latest good news :

Tax Credit Can Be Used for Down Payment

U.S. Housing and Urban Development Secretary Shaun Donovan announced Tuesday that
the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.

FHA will allow approved lenders and nonprofits, and state and local government agencies to issue short-term bridge loans buyers can use for down payments, Donovan said. Buyers would repay the loans after getting their tax refunds.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change.

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..

He says FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.

http://www.seattlepi.com/local/406129_FHA12.html

http://www.earthtimes.org/articles/show/hud-secretary-announces-monetization-of,821509.shtml

Temecula Wine Country Estate -

2009-04-30T11:55:00.000-07:00

33895 Calle Vista , Temecula 92592
SOLD! $830,000

MAGNIFICENT 6.21 ACRE POOL AND SPA ESTATE! 6 BEDROOM 4.5 BATH CUSTOM HOME
BUILT IN 2003. THIS HOME HAS A VERY PRIVATE SETTING AND BOASTS 6,119 SQUARE FEET. BREATHTAKING VIEWS AND NATURAL LIGHT.

Prestigue Temecula Wine Country in Country Estates Road area.

Blue Chip Neighborhood:

2009-04-21T22:00:00.000-07:00

With all the doom and gloom, short sale, REO's all around in my RE areas; it is hard to believe and it is quiet an eye-opener.

According to the latest AOL Real Estate article.
These are areas in the USA with home prices that are still growing
and thriving.

Atlanta Metro Area
Blue Chip Neighborhood:
Atlanta, Ga. (Spring Buford Conn / Peachtree St)
Found Within ZIP Code(s): 30309, 30318
Five-Year Price Growth: 36.50%
Average Price Growth per Year: 7.30%
Median House Value: $710,700

Boston Metro Area
Blue Chip Neighborhood:
Boston, Mass. (Columbus Ave / Massachusetts Ave)
Found Within ZIP Code(s): 02118
Five-Year Price Growth: 91.80%
Average Price Growth per Year: 18.36%
Median House Value: $692,600

Chicago Metro Area
Blue Chip Neighborhood:
Chicago, Ill. (Ravenswood Ave / Melrose St)
Found Within ZIP Code(s): 60657
Five-Year Price Growth: 118.25%
Average Price Growth per Year: 23.65%
Median House Value:$738,200

Cleveland Metro Area
Blue Chip Neighborhood:
Aurora, Ohio (City Center)
Found Within ZIP Code(s): 44202
Five-Year Price Growth: 44.47%
Average Price Growth per Year: 8.89%
Median House Value: $260,100

Dallas Metro Area
Blue Chip Neighborhood:
University Park, Texas (Southern Methodist U / U.S. Route 75)
Found Within ZIP Code(s): 75205
Five-Year Price Growth: 82.57%
Average Price Growth per Year: 16.51%
Median House Value: $547,800

Denver Metro Area
Blue Chip Neighborhood:
Denver, Colo. (Colorado Blvd / 6th Ave)
Found Within ZIP Code(s): 80206, 80209
Five-Year Price Growth: 77.33%
Average Price Growth per Year: 15.46%
Median House Value: $570,000

Detroit Metro Area
Blue Chip Neighborhood:
Birmingham, Mich. (Woodward Ave / Old Woodward Ave)
Found Within ZIP Code(s): 48009
Five-Year Price Growth: 16.77%
Average Price Growth per Year: 3.35%
Median House Value: $779,400

Houston Metro Area
Blue Chip Neighborhood:
Houston, Texas (Del Monte Dr / Kirby Dr)
Found Within ZIP Code(s): 77027, 77019
Five-Year Price Growth: 56.61%
Average Price Growth per Year: 11.32%
Median House Value: $1,727,300

Los Angeles Metro Area
Blue Chip Neighborhood:
Los Angeles, Calif. (Sunset Blvd / Mapleton Dr)
Found Within ZIP Code(s): 90024
Five-Year Price Growth: 95.41%
Average Price Growth per Year: 19.08%
Median House Value: $2,666,800

Miami Metro Area
Blue Chip Neighborhood:
Key Biscayne, Fla. (Crandon Blvd / Harbor Dr)
Found Within ZIP Code(s): 33149
Five-Year Price Growth: 81.47%
Average Price Growth per Year: 16.29%
Median House Value: $1,422,100

Minneapolis Metro Area
Blue Chip Neighborhood:
Eden Prairie, Minn. (Flying Cloud Dr / Pioneer Trl)
Found Within ZIP Code(s): 55347
Five-Year Price Growth: 42.87%
Average Price Growth per Year: 8.57%
Median House Value: $479,200

Minneapolis Metro Area
Blue Chip Neighborhood:
Eden Prairie, Minn. (Flying Cloud Dr / Pioneer Trl)
Found Within ZIP Code(s): 55347
Five-Year Price Growth: 42.87%
Average Price Growth per Year: 8.57%
Median House Value: $479,200

New York City Metro Area
Blue Chip Neighborhood:
New York, N.Y. (71st St / Columbus Ave)
Found Within ZIP Code(s): 10023
Five-Year Price Growth: 132.80%
Average Price Growth per Year: 26.56%
Median House Value: $1,122,200

Philadelphia Metro Area
Blue Chip Neighborhood:
Nether Providence Township, Penn.
Found Within ZIP Code(s): 19063, 19086
Five-Year Price Growth: 97.28%
Average Price Growth per Year: 19.45%
Median House Value: $499,700

Phoenix Metro Area
Blue Chip Neighborhood:
Paradise Valley, Ariz. (Camelback Estates)
Found Within ZIP Code(s): 85253
Five-Year Price Growth: 71.89%
Average Price Growth per Year: 14.37%
Median House Value: $1,532,500

San Diego Metro Area
Blue Chip Neighborhood:
Coronado, Calif. (Silver Strand Blvd / Avenida Lunar)
Found Within ZIP Code(s): 92118
Five-Year Price Growth: 105.10%
Average Price Growth per Year: 21.02%
Median House Value: $1,504,500

San Francisco Metro Area
Blue Chip Neighborhood:
San Francisco, Calif. (3rd St / 20th St)
Found Within ZIP Code(s): 94107
Five-Year Price Growth: 99.92%
Average Price Growth per Year: 19.98%
Median House Value: $953,300

Seattle Metro Area
Blue Chip Neighborhood:
Seattle, Wash. (Aloha St / 17th Ave)
Found Within ZIP Code(s): 98112
Five-Year Price Growth: 75.08%
Average Price Growth per Year: 15.01%
Median House Value: $1,044,900

St. Louis Metro Area
Blue Chip Neighborhood:
Clayton, Mo. (Brentwood Blvd / Forsyth Blvd)
Found Within ZIP Code(s): 63105
Five-Year Price Growth: 37.70%
Average Price Growth per Year: 7.54%
Median House Value: $583,000

Tampa Metro Area
Blue Chip Neighborhood:
East Lake, Fla.
Found Within ZIP Code(s): 34685, 34689
Five-Year Price Growth: 108.24%
Average Price Growth per Year: 21.64%
Median House Value: $546,300

Washington, D.C., Metro Area
Blue Chip Neighborhood:
Washington, D.C. (Rock Creek Pky / Massachusetts Ave)
Found Within ZIP Code(s): 20008
Five-Year Price Growth: 106.76%
Average Price Growth per Year: 21.35%
Median House Value: $1,619,200

http://realestate.aol.com/home-values/blue-chip-neighborhoods

I keep hoping that Riverside County would show up,
alas no, not yet. May be next year..............

C.A.R. Housing Affordability Fund Mortgage Protection Program

2009-03-31T22:09:00.000-07:00

ANNOUNCEMENT FROM CALIFORNIA ASSOCIATION OF REALTORS.

On Thursday, April 2, C.A.R. will launch a new program designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations.

Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:

. Be a first-time home buyer – someone who has not owned a home in the last three years
. Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
. Use a California REALTOR® in the transaction
. Purchase the property in California
. Be a W-2 employee (cannot be self-employed or military personnel)

First-time home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®.

The Mortgage Protection Program is a proactive approach by C.A.R. to address consumers’ concerns about the real estate market and their ability to make their mortgage payments should they loose their jobs. I encourage you to take full advantage of this new program by sharing information about the C.A.R.H.A.F. Mortgage Protection Program with your clients. There is no cost to either you or your clients to participate.
http://www.car.org/aboutus/hafmainpage/

The Most Expensive Home For Sale.

2009-03-29T10:10:00.000-07:00

Spelling Mansion on Market for $150 Million
By: Diane Tuman, Zillow Content Manager March 27, 2009

Located in the Westwood section of LA at 594 S Mapleton Dr, Los Angeles, CA, the home is said to be the most expensive home for sale in the U.S.

Home Info

Public Facts:
Single family
11 beds
16.0 bath
52,503 sqft
Lot 56,628 sqft
Built in 1990

According to Zillow, the Monthly Payment: would be around $ 646,670.00

http://www.zillow.com/homedetails/594-S-Mapleton-Dr-Los-Angeles-CA-90024/20524417_zpid/

Home Was Once A Shipping Contaner

2009-03-26T00:34:00.000-07:00

MSN.com Slideshow

http://lifestyle.msn.com/your-life/living-green/staticslideshowdailyg.aspx?cp-documentid=18681851&imageindex=3

A Dairy Confession of The Lady House Seller

2009-03-04T23:04:00.000-08:00

Are you smiling when you read the title of this topic on my Real Estate News & Views.

I have been posting someone else news and views for several years. I have a writer's block and I can not think and write at the same time. I can take a car for a long drive in the country by myself, on the freeway and I can really think but I can not think of anything to write when I am sitting down with my laptop to write something on.

I have no idea how any real estate agent can write a long article and write daily on their BLOG as well as posting messages on Facebook, participate on the forums on Active Rain etc.

After a long day dealing and working with tons of paper in this real estate business.
I only have 15 active clients, 5 of which are sellers and 10 are my buyers but my clients
already keeping me very busy.
I am not complaining but I am exhausted at the end of the long day.
Still I was told that Blogging is a must if I am going to survive in this business so,
I have to BLOG. However, I have been on the internet for over 15 years or so.. or more? So why can I not write something of my own on the BLOG?
(I bought my first PC in 1985 and I used to log into the BB# to talk to the SYSOP.. was that the internet? lol )

So there you go... Come back and visit my BLOG again and I will give you a real treat!

Good night sweet dreams ... for now.......................................

Jieranai

A House Is A Home.

2009-03-03T20:18:00.000-08:00

Cave House

Kitchen In The Cave House

Cave dwellers can't refinance; put home on eBay
Dig the idea of living in a cave? A Missouri family did, too — until they spelunked themselves into debt building a three-story cave dwelling during the housing downturn.
By The Wall Street Journal

http://realestate.msn.com/article.aspx?cp-documentid=18244526&GT1=35000

December 15, 2008, 2:35 pm
‘Spaceship House’ To Be Auctioned in Tennessee

Click here to see more photos of the Spaceship House.

Courtesy of Crye-Leike Auction
Sushil Cheema reports:

By CHRISTINA DUFF

Caren Alpert for The Wall Street Journal

The Palmazes built a huge underground complex for their winery in Napa. Wine is barreled and aged in the tunnels pictured above.

Napa, Calif.
The land just below Mount George here is covered in Cabernet grapevines and dotted with oak and olive trees. On one side of a steep slope sits an arched door -- a rabbit hole for people.
Open it, and the world falls silent. Dampness hangs in the air. A tunnel leads deep into the earth until suddenly the ceiling opens up, revealing a huge domed room, 55 feet high and 75 feet wide. This is the heart of the Palmaz Vineyards winemaking operation, and more akin to Willy Wonka's chocolate factory than a Napa Valley wine cave.

http://online.wsj.com/article/SB123085057130947469-search.html?KEYWORDS=wine+cave&COLLECTION=wsjie/6month

To Buy Or Not To Buy A Home This Year?

2009-02-28T10:41:00.000-08:00

This message was posted by a member on one of my Groups at Yahoo.
It is an article from the Chicago Tribune.

Five reasons to buy a home this year
Affordability returns to housing, and buyers have loads of negotiating power
By Amy Hoak, MarketWatch
Last update: 7:52 p.m. EST Feb. 27, 2009
Comments: 376

This story originally published Feb. 6 has been updated to reflect the passage of the economic stimulus bill.

CHICAGO (MarketWatch) -- People are afraid to buy a home in times like these, with the economy tanking and home prices continuing to fall. But if you're brave enough to stray from the herd, you might be in for the home-buying opportunity of a lifetime.

Ask for price reductions, improvements, closing costs -- whatever -- and the seller, desperately trying to get a contract, is very likely to work with you, said Jay Papasan, one of the authors of the book "Your First Home." When the market starts improving, your negotiating power starts to diminish, he added....

http://www.marketwatch.com/news/story/five-reasons-buying-house-now/story.aspx?guid={01DA1B93-91D1-49E4-A1B1-0ACA9CE66FF4}&siteid=yahoomy

This story originally published Feb. 6 has been updated to reflect the passage of the economic stimulus bill.

Five reasons not to buy a home this year
Homes are more affordable, but don't rush -- prices won't skyrocket soon
By Amy Hoak, MarketWatch
Last update: 7:52 p.m. EST Feb. 27, 2009

Comments: 502

This story originally published Feb. 6 has been updated to reflect the passage of the economic stimulus bill.

CHICAGO (MarketWatch) -- The unemployment rate is creeping up and home prices keep falling: Two great reasons why it might be best to put your home buying plans on hold.

After all, your own job could be the next on the chopping block. Plus, why not wait until home prices have reached their bottom and you can safely buy knowing your new house won't depreciate like a car coasting out of the dealership?

http://www.marketwatch.com/news/story/five-reasons-buying-home-2009/story.aspx?guid=%7B22185FBD%2D7F44%2D4A49%2DA604%2DA29D4225E122%7D&dist=TNMostRead

Tough Time For Home Owners.

2009-02-26T23:57:00.000-08:00

Time is getting tough for home owners all over the US. I have gathered some useful links and articles from legitimate and reliable sources for my BLOG posting today.

1) Consumer Alert - Advance Fees and Loan Modification Services
First on this list is the article and useful links on the California Department of Real Estate web site:

MORTGAGE QUICK LINKS
Using the Services of a Mortgage Broker
Predatory Lending Prevention
Who do you call?
Avoiding Foreclosure
Advance Fees/Loan Modification

http://www.dre.ca.gov/mlb_adv_fees.html

2) Housing Market Facts:

National Association Of Realtors web site offer information on
the benefits Of Owning A Home.

There are links to information on :

Housing Market Facts.
Tax Credit Facts.
Home Owners Benefits.
Market Research.
How Realtor Can Help.
Multi Media Download For Mobil Phone.

http://www.housingmarketfacts.com/

3) Mortgage Work Out Program:

California Association of Realtors web site provides help to consumers on
this page for Mortgage Workout Programs for Homeowners.

There is the information about the Homeowner Affordability and Stability Plan,
click here .

For consumer information sheets containing detailed information on specific programs that REALTORS® can share with their clients, please click on the appropriate link below.
. HOPE For Homeowners (H4H) (revised 2/09)
. Countrywide Financial (Bank of America)
. Citigroup, CitiMortgage
. JP Morgan Chase & Co.
. IndyMac Federal Bank, FDIC (revised 2/09)
. Federal Government Loan Modification (revised 2/09) (Participants include: Fannie Mae, Freddie Mac, Federal Home Loan Banks, Hope Now participants, Department of the Treasury, Federal Housing Administration and the Federal Housing Finance Agency, and Wells Fargo.)

http://www.car.org/legal/mortgage-workout-programs/

I hope that this helps.
Jieranai Maier
http://JieranaiMaier.com
http://JieranaiRealEstate.com

Dealers, dreamers see gold in California housing bust

2009-02-23T21:36:00.000-08:00

Dealers, dreamers see gold in California housing bust
Mon Feb 23, 2009 1:23pm EST

By Dan Whitcomb
LOS ANGELES (Reuters) - California's tortured real estate market has brought heartbreak and ruin, but some investors, speculators and first-time home buyers are also dreaming big and finding opportunities -- a silver lining in the Golden State's epic housing crash.
For many young couples, plummeting prices and near record-low interest rates make it possible to own a home in California for the first time.

Investors and real estate speculators, meanwhile, can snap up foreclosed properties on the cheap to sell during the next boom in California's boom-and-bust real estate cycle, a boom they believe is inevitable and possibly not far off.

"This is the buying opportunity of our lifetime," said Bruce Norris, who heads an investment group that expects to purchase some 100 homes this year in Southern California's Inland Empire region.

California -- which would be the world's eighth largest economy if it were a country -- saw a near-doubling in home sales in the fourth quarter, a pace surpassed only by Nevada's 133.7 percent growth.

But experts warn it's a dangerous game to play when nobody is really sure how low home prices will go or when they will rebound as the recession lingers, jobs dry up and residents pour out of the state in search of better prospects.

Norris concentrates on the Inland Empire of Southern California, made up mostly of Riverside and San Bernardino counties, one of the fastest-growing areas of the country during the housing boom, driven partly by immigrant families who couldn't afford pricier coastal cities.

It's now one of the hardest-hit. In the past 18 months, the median home price in Riverside and San Bernardino, pummeled by the subprime meltdown and now recording some of the highest foreclosure rates in the state, has plummeted 55 percent.

Norris Investment Group looks for homes built between 1980 and 1990, typically under 2,000 square feet (186 sq meters). Older houses come with too many maintenance "surprises," Norris says, and larger places can be tough to sell or rent in hard times.

Last month the group paid $55,000 for a foreclosed home that was worth $360,000 at the top of the market. Norris expects to spend $30,000 on repairs and rent it for $1,200 a month until the market turns around.

The group also hopes to minimize risk by owning the homes free and clear, thus accruing little debt.

"You cannot have this (low) level of pricing be permanent because it costs too much to build a home here," Norris said. "That's how you know you're making a logical decision when everything is falling around you. When you can buy a finished product someone will want to live in for $55,000, that just has to make somebody pretty wealthy someday."

'DARK MOMENTS'

Experts agree California home prices will ultimately rebound but caution that real estate investing in this economy -- the worst contraction since 1982 -- should not be undertaken by amateurs or the faint of heart.

"You have to have a pretty strong feeling about where this is all going," Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California, Los Angeles, told Reuters. "This cycle is so different from prior cycles that it's very difficult to extrapolate." Continued...

"Most would argue that California is not going into the sea," he said. "On the other hand it's not totally out of the question that this particular period of weakness could extend for a while, and that means multiple years."

California's roller-coaster real estate cycles can be traced to the 1970s, when home prices tripled, ignited in part by foreign investment and the end of the gold standard following decades of explosive population growth.

Home prices plunged in the early 1980s, turned around and doubled within 10 years, slumped in the mid-1990s and then blasted off again at the end of the decade. The subprime meltdown and recession pushed them back off the cliff.

"It's a great time to buy for people who are willing to risk a little more and be optimistic when everybody else is doom and gloom," said Daren Blomquist, marketing and communications manager for RealtyTrac, an online foreclosure data service.

But he warned: "They will probably have to wait it out, possibly for several years."

Chris Twoomey and his wife Jennifer illustrate the risk underlying the perceived opportunities. They moved to California from the Midwest in 2004 to pursue acting careers and had just begun to think the dream of home ownership was out of reach when the crash came and they saw their chance.

The couple pounced in January, right after Jennifer, 39, learned she was pregnant with their first child, making an offer on a small, bank-owned home in suburban Los Angeles.

But the day after the Twoomeys' offer was accepted, Chris was called into the cafeteria at his job in a cosmetics company warehouse and laid off.

"Sometimes in our dark moments we sit around and say to ourselves, 'Look, forget the acting, forget everything, this is the time to bail' (from California). We can be doing this someplace else that's still warm but doesn't cost as much," Chris told Reuters in an interview.

"But we're sticking it out," he said. "It's perverse, but something inside of us does want to stay here. It's sort of a belief that because it is Southern California and because it is the kind of place where everybody wants to be, it will come back eventually."
(Editing by Edwin Chan and Eric Walsh)

http://www.reuters.com/article/newsOne/idUSTRE51M0CT20090223

Do Boomers Hold the Key to Rescuing Our Troubled Economy?

2009-01-31T21:01:00.000-08:00

Do Boomers Hold the Key to Rescuing Our Troubled Economy?

By ecolin • Oct 15th, 2008 •

Ladies and gentlemen, they just might. Baby Boomers’ innovation, experience, expertise, and vast network of contacts may be the order of the day when it comes to breathing some life into our faltering national finances. How, you ask? Why, through the wonders of entrepreneurship, of course.

Americans Believe Entrepreneurship is the Answer

A recent poll conducted by the Kauffman Foundation for Entrepreneurship found that 56% of Americans believe that small business, rather than government, will lead us out of financial crisis and into stability. Over 70% of those surveyed believe that the vitality of the economy is dependent on the achievement of entrepreneurs, and 80% believe that the government should devote resources to encouraging entrepreneurship on a national scale. And who better to start a business than the ever-savvy, well-connected Boomers, who already constitute a disproportionately high number of the country’s self-employed workers? They’ve got some time on their hands, a wealth of knowledge, and a career’s worth of networking behind them…and now they’ve got the support of the U.S. Small Business Association, as well.

U.S. SBA Launches Website Dedicated to the 50+ Entrepreneur

This month, the SBA formally demonstrated its support by launching a website dedicated to the 50+ entrepreneur. Here Boomers can find everything they need to get their new venture off the ground: free online training, interactive communication tools, marketing support, advice on how to assess their readiness and get started, and more. It’s all online at http://www.sba.gov/50plusentrepreneur/

Read the whole article on Ideal-Living.com

http://www.ideal-living.com/442/do-boomers-hold-the-key-to-rescuing-our-troubled-economy

10 Cities To Buy?

2009-01-17T19:52:00.000-08:00

Forbes magazine web site edition feature article that stated that
cities that experienced severe downturn are

10 Cities Boasting Mini Sales Booms Some cities that were hardest hit by the real downturn are experiencing mini sales booms.

Where U.S. Home Sales Are Rising

Motivated sellers in these 10 cities are fueling deals and hastening recoveries

Here are the cities where experts say it makes the most sense to buy now.

Las Vegas
Sacramento, Calif.
San Diego, Calif.
Los Angeles
Detroit
Phoenix
San Francisco
Washington, D.C.
San Jose
Atlanta

Source: Forbes, Matt Woolsey (01/12/09)

http://www.forbes.com/forbeslife/realestate/2009/01/12/cities-ten-realestate-forbeslife-cx_mw_0112realestate.htm

How to Tidy a House in Record Time

2009-01-10T22:06:00.000-08:00

How to Tidy a House in Record Time

The home is a pigsty and potential buyers are arriving within the hour. Here’s what home owners can do to turn chaos into order, says Julie Edelman, author of The Accidental Housewife: Your Guide to a Clean-Enough House.

Target the bathroom. Wipe down the sink, toilet, mirror and floor with disinfectant wipes. Empty the trash. No toilet bowl cleaner? Drop in denture cleaner, let it fizz for 20 minutes and flush.

Salvage the kitchen. Clear the countertops. Put dirty dishes in the dishwasher. Spray down the counter with a clean-smelling multipurpose spray.

Pick up debris. Concentrate on getting rid of clutter in the living room. Put it in a bag and hide it in a bedroom closet.

Vacuum everywhere.

Source: Chicago Tribune, Emilie Le Beau (12/21/2008)

http://www.realtor.org/RMODaily.nsf/pages/News2008122201?OpenDocumentHow to Tidy a House in Record Time

US Government and City Creative Loans.

2008-12-17T18:14:00.001-08:00

I read The article on The Wall Street Journal yesterday about the USDA Loans program.

REAL ESTATE
DECEMBER 16, 2008
By NICK TIMIRAOS

Home Buyers Turn to USDA for Mortgages
Agency Program Backs Loans to Aid Rural Development; No Money Down -- Even Now

To be eligible for a USDA-backed loan, a borrower can't have income that exceeds 115% of the median county income, and the loans are restricted to areas with lower population density -- generally towns of no more than 25,000 residents. So while home buyers in big cities aren't eligible for the loans, residents of many of America's fastest-growing towns and exurbs do qualify. The loans that come through the program are made by private lenders, then insured by the government and sold to Ginnie Mae, a federal agency that sells mortgages to investors.
Home builders, many of which have overbuilt properties in these areas, are eagerly promoting the program to sell excess inventory.

The USDA program accounted for 40%-50% of sales in October and November for Scottsdale, Ariz.-based home builder Meritage Homes, says John Bargnesi, vice president for sales.

"It's one of our main tools right now."

http://online.wsj.com/article/SB122937640286608173.html

--------------------------------------------------------------

City of Temecula - Home Improvement Loan for FTHB Program

The City of Temecula Redevelopment AgencyHome Improvement Loan Program for First Time Home BuyersThe City has determined that many homes eligible for the First Time Homebuyer Program are in need of some repair. In the current market many of these affordable homes are Bank-Owned properties that may have suffered some distress either at the hands of former owners or through neglect and vacancy.

This program is designed to work in tandem with the First Time Homebuyer Program.Property Type: Single Family detached homes, condominiums, townhouses and manufactured homes on a 433 permanent foundation.Property Location: Within Temecula City LimitsMaximum Amount: $10,000Loan Terms: A ten year loan at 5% interest.

The loan is forgiven on the maturity date if the terms have not been breached. If title to the property is transferred, the borrower ceases to occupy the property or the first mortgage is refinanced with cash taken out the loan becomes due and payable immediately.

Requirements: The application must be processed concurrently with the First Time Homebuyer Program.Eligible Repairs: Housing staff will perform a pre-inspection of all work to be done to determine eligibility. Eligible repairs include, but are not limited to:

Code items
Deterioration of structure or fencing
Repair or replacement of roof
HVAC systems, wall heater or evaporative coolers
Windows, Screens, Garage Doors & Entry Doors
Exterior Painting
Electrical
Non-working or missing major appliances

Repair items damaged by neglect, vandalism or theft Participant must obtain a minimum of 2 bids from licensed contractors. All work must be inspected by housing staff or building inspectors prior to payment. Payment may be made directly to the approved contractor or to the homeowner as reimbursement.

Qualifying Income:Family Size / Income

1 / $52,100 2 / $59,500 3 / $67,000 4 / $74,400 5 / $80,400
6 / $86,300 7 / $92,300 8 / $98,200
--------------------------------------------------------------

Farm Service Agency
How about the FSA Loans to First Time Farmers & Ranchers?

The Farm Service Agency (FSA) provides direct and guaranteed loans to beginning farmers and ranchers who are unable to obtain financing from commercial credit sources. Each fiscal year, the Agency targets a portion of its direct and guaranteed farm ownership (FO) and operating loan (OL) funds to beginning farmers and ranchers.

http://www.fsa.usda.gov/FSA/webapp?area=home&subject=fmlp&topic=bfl

More loans and Disaster Assistance Programs on USDA FSA site.

http://www.fsa.usda.gov/FSA/webapp?area=home&subject=fmlp&topic=landing

And This Too, Shall Pass

2008-12-14T00:15:00.000-08:00

And This Too, Shall Pass

With all our blessings, however, is one day of thanks ever enough?

Absolutely not. In his book “Discovering the Laws of Life,” the famed money manager and philanthropist John Templeton recommended a different approach. He called it thanksliving.
Thanksliving means practicing an attitude of perpetual gratitude.

That’s not hard when times are good. But for many, it’s tough out there right now. The economy is weak. The job market is soft. Credit is tight.

Combine these with the real estate slump and the recent swoon in stock and bond markets and an attitude of continual thankfulness becomes a tall order.

Yet Templeton offers a radical solution. Don’t just give thanks for your blessings. Be grateful for your problems, too.

This seems wildly counterintuitive at first blush. But facing up to our challenges makes us stronger, smarter, tougher, and more valuable as parents, mates, employees… and human beings.

Calm seas never produced a skilled sailor. Solving problems is what we’re made for. It’s what makes life worth living.

“Adversity, when overcome, strengthens us,” says Templeton. “So we are giving thanks not for the problem itself but for the strength and knowledge that will come from it. Giving thanks for this growth ahead of time will help you to grow through - not just go through - your challenges.”
Circumstances alone never decide our fate. We all have the ability to shape our destiny. And it begins with believing we can.

Worries, regrets, and complaints solve nothing. They change nothing. Rather they undermine your health, your social environment and your quality of life.

Difficult situations are rarely resolved with positive thoughts or gratitude alone, however. It takes another crucial ingredient: sustained action.

Even then, some problems are intractable. Others - like the death of a loved one - are insoluble. In certain circumstances, only an attitude of acceptance moves us forward.

Most of our day-to-day problems, however, are created by the person in the mirror.
We made them. And we can fix them.

According to Unitarian pastor Preston Bradley, “The world has a way of giving what is demanded of it. If you are frightened and look for failure and poverty, you will get them, no matter how hard you may try to succeed. Lack of faith in yourself, in what life will do for you, cuts you off from the good things in the world. Expect victory and make victory. Nowhere is this truer than in the business of life, where bravery and faith bring both material and spiritual rewards.”

This lesson is best learned at an early age. Once when I was about seven years old, for instance, my father asked me to load some heavy-looking boxes into his car.

I looked them over doubtfully. “I can’t,” I said.

It was one of the few times I’ve ever seen him really angry. “What was that word you just used?” he demanded.

“Can’t?” I asked, sheepish.

“I don’t ever want to hear you use that word again.”

Then he strode off… as I (ahem) loaded the boxes.

Journalist Sam Levenson had a similar experience:

“It was on my fifth birthday that Papa put his hand on my shoulder and said, ‘Remember, my son, if you ever need a helping hand, you’ll find one at the end of your arm.’”

I’m not suggesting that it’s wrong to ask for help. Under certain circumstances, you won’t succeed without it. We could all use a boost from time to time.

But it’s much more satisfying - and dignifying - when we solve our problems ourselves.

In addition to showing us what we’re made of, working through our setbacks makes us more sensitive to - and more compassionate toward - the problems of our fellowmen.

Look around and you’ll see plenty of good people with more troubles than you. This is the season to remember them, incidentally. (Although the true spirit of Thanksliving means remembering - and giving - all year round.)

Whatever problems you’re grappling with - personal, social or financial - the best course is always to face them with all the courage, patience and equanimity you can muster.

And, if possible, be grateful. Opportunity often shows up disguised as hard work.

On occasion, of course, our problems are simply bigger than we are. In an address in 1859, Abraham Lincoln recounted the tale of King Solomon:

“It is said that an Eastern monarch once charged his wise men to invent him a sentence, to be ever in view, and which should be true and appropriate in all times and situations. They presented him with the words: ‘And this, too, shall pass away.’ How much it expresses! How chastening in the hour of pride! How consoling in the depths of affliction!”

And how applicable in every day and age…

Whatever your problems, few of them can withstand the onslaught of optimism, persistence, and a genuine spirit of gratitude. So get moving.

As the poet Robert Frost reminds us, “The best way out is always through.”

http://www.nacreps.org/blog/?p=78

Chicken Little Doesn't Sell Houses.

2008-12-09T11:22:00.000-08:00

A good article by Rismedia.

Chicken Little Doesn’t Sell Houses
Click stars to vote (left is low, right is high)
(48 votes, average: 4.42 out of 5)

By Mike Parker

RISMEDIA, Dec. 9, 2008-”One day, Chicken Little was walking in the woods when-KERPLUNK-an acorn fell on her head. ‘Oh my goodness!’ said Chicken Little. ‘The sky is falling!” Thus begins a timeless tale that seems more relevant each time I read another “authoritative” article positing that the recovery in real estate is years away.

I want to scream: “Your 2009 will be what YOU make it. The sky is not falling and you can be sure that many people will succeed in 2009, just as many continue to succeed, even now.”
We should refuse to buy in to “informed opinion” that predicts three more years of economic morass. It’s time we take responsibility for our own success and make things happen for ourselves.

Once we get through January, I believe we will see the beginnings of recovery. Credit will loosen, people will begin to regain some confidence that Washington has an idea of what they are doing, and opportunities to succeed will abound. Oh, it never will be 2005 again, but who really wants that, anyway? Agents who fail to take strong action to succeed despite conditions will be dropping like acorns in a stiff wind.

Are you Chicken Little? Paralyzed by fear and “informed opinion?” Or, are you a real professional, determined to harvest the opportunity that you know will manifest itself when confidence returns?

http://rismedia.com/wp/2008-12-08/chicken-little-doesnt-sell-houses/

September home sales up 65%

2008-10-20T21:33:00.000-07:00

September home sales up 65% from last year in Southern California

September home sales up 65% from last year in Southern California
Experts say the numbers reflect attitudes before the economic crisis worsened, and warn that despite the increase, the real estate market is likely to suffer.
By Peter Y. Hong, Los Angeles Times Staff Writer

10:43 AM PDT, October 20, 2008
Sinking home values continued to drive home sales in September as bargain hunters snared properties at 2003 prices.

The median Southern California home sales price was $308,500 in September, the lowest since May 2003 and down 33% from the September 2007 price of $462,000, according to real estate research firm MDA DataQuick.

The number of homes sold in Los Angeles, Orange, San Bernardino, Riverside, Ventura and San Diego counties shot up 65% compared with September 2007. Fifty percent of homes sold last month had been foreclosed.Real estate experts said despite the increase in September sales, the real estate market is likely to suffer along with the rest of the economy.September's figures reflect home purchase decisions that were made in mid- to late-summer, before the dramatic worsening of the nation's economic crisis in recent weeks, said MDA DataQuick president John Walsh.

"Over the next few weeks our sales data will begin to show how the meltdown in financial markets this fall has impacted housing demand," Walsh said in a statement.

Since September, the stock market has declined sharply and unemployment in California has remained close to 8%.

Mortgage interest rates have also been rising, elevating the cost of home purchases.

A total of 20,497 homes closed escrow in the Southern California in September, up 5.8% from 19,366 in August.

Sales were up most in Riverside County, which posted a 106% gain from the same month a year ago.

Riverside and San Bernardino counties also recorded the steepest year-to-year price declines in the region, with the median sales price down 37% compared with a year ago.

In Riverside County, 69% of homes sold in September had been foreclosed, while foreclosed properties comprised 63% of San Bernardino County homes sold last month.

Foreclosed homes made up 39% of Los Angeles County homes sold in September and 37% of Orange County homes sold last month.

peter.hong@latimes.com
http://www.latimes.com/news/la-fi-homes21-2008oct21,0,5677248.story?track=rss

top 10 foreclosure cities

2008-10-11T22:29:00.001-07:00

top 10 foreclosure cities
By Inventory

1. Las Vegas, NV
2. Miami, FL
3. Chicago, IL
4. Phoenix, AZ
5. Los Angeles, CA
6. Sacramento, CA
7. Cape Coral, FL
8. Orlando, FL
9. Tampa, FL
10. San Diego, CA

By Activity

1. Fort Lauderdale, FL
2. Las Vegas, NV
3. Miami, FL
4. Pompano Beach, FL
5. Phoenix, AZ
6. Hollywood, FL
7. Orlando, FL
8. Tampa, FL
9. Chicago, IL
10. West Palm Beach, FL

Sources: MSN-NBC.com

Moving Can be a Taxing Decision

2008-09-19T18:43:00.000-07:00

Moving Can be a Taxing Decision

By James O. Armstrong

So, what motivates employees to move during retirement? While there may be other factors, this list covers a number of the considerations many of our fellow baby boomers and others consider important in making such a decision.

First, we may decide to move because a specific job offer emerges from either the private or public sector. This offer to someone in greater demand could also include a future independent contractor status or registration with a speaker's bureau or talent agency, for example. Or, it may include starting your own business or even buying a franchise with an established business plan and strategy to pursue.

Second, we may decide to move because of family considerations, which range from aging parents to relocating so that we can be closer to our children and grandchildren. In fact, a number of my daughter's closest young adult friends in Greater St. Louis have talked about their parents taking precisely this step recently. By the way, this observation includes the movement of grandparents to the St. Louis area, who have never before lived in that region.

Third, men and women also choose to move to a more exciting part of the US or they may choose to live abroad, which an increasing number of Americans are now deciding to do. For example, a fellow baby boomer web entrepreneur, Ann Fry, decided to move from Austin, TX to New York City over the past year and she has never looked back on her decision. The 62 year old Ann runs a successful web site plus works as a motivational speaker and career coach. So, part of her relocation formula has included an upsurge in her speaking engagements and coaching assignments, especially since she moved to New York, despite the warnings of doom and lack of success from her Austin, Texas-based friends.

Fourth, other men and women choose to move to a different part of the US especially for tax reasons. But, of course, the question, which quickly emerges in this complex set of variables is "which taxes?" Many of us no doubt already know Texas or Florida (part-time) citizens, who have emigrated to these states because neither levies a state income tax. Of course, the winning formula is that "they" actually live in their adopted states for one-half of the year plus one day.

But, did you know that there are actually a total of seven states with no income tax as follows: (1) Alaska, (2) Florida, of course, (3) Nevada, (4) South Dakota, (5) Texas, (6) Washington and (7) Wyoming. In addition, New Hampshire and Tennessee only tax interest and dividends.

Likewise, it should be clearly said that a total of 26 states plus the District of Columbia do not tax Social Security benefits. IMPORTANT: Our web site, www.NowWhatJobs.net, is against any states taxing Social Security income. From our standpoint, because of the current and coming labor shortages and especially because of the current skills shortages, our society cannot afford to do anything, which has the net effect of discouraging men and women from continuing to work in America.

Finally, other men and women will factor some or all of these issues into consideration, when deciding where and when to move in our society. In the final analysis, even local sales taxes and property taxes can and should enter into this equation. For example, the City of Chicago recently passed an incredibly high local sales tax, which put this great city at or near the top of local sales taxes in the whole US among major cities. Of course, this consideration only becomes important when someone wants to buy something, whatever that may be.

To tax or not to tax -- that will indeed be the question for state and local governments in the future in the US and elsewhere, as a wave of baby boomers begin to consider all of their relocation factors and options. "Yes," state and local governments would like the bank deposits, which provide the necessary capital needed for consumer loans and local businesses to expand and create even more jobs in that area. "Yes," state and local governments would also like men and women, who will not be adding to the local student population in our nation's public schools, but who will never the less be adding to the local property tax base. "Yes," state and local governments would also like to have men and women, who are creditworthy and who have a greater equity position in their homes move into the community.

But, what if anything are these state and local governments willing to do in order to court "our" favor, you might logically ask? This writer submits to you that the answer to this question will cause state and local governments around the US to make a whole series of different decisions, both now and in the near future, in order to demonstrate "their friendliness" to my fellow baby boomers, who are 78 million strong just in the US.

JAMES O. ARMSTRONG BIOGRAPHY

James O. Armstrong, President of NowWhatJobs.net, Inc., http://www.nowwhatjobs.net, also serves as the Editor of NowWhatJobs.net. NowWhatJobs.net is the resource for job and career transitions for workers 40 years old and over, Baby Boomers and Active Seniors. Read NowWhatJobs.net for skills training, relocation options, job opportunities and much more. In addition, James is the author of "Now What? Discovering Your New Life and Career After 50" and the President of James Armstrong & Associates, Inc., a media representation firm based in Suburban Chicago.

Reduced Prices - Estate Homes

2008-09-17T00:02:00.000-07:00

Best kept secret in Temecula West Hills - De Luz.

OFFERRED AT $1,599,000

Recently completed gorgeous estate home on 4.52 acres is situated in Santa Margarita Ranchos in serene De Luz/Temecula West Hills. A long driveway leads up to the privacy of this home. The Beautiful Wooden double-doors lead onto a Hugh Great room with Entertainment center, Formal Living, Dining Room & Outside Patio. Features include Separate Master Bedroom Suite and a contemporary bathroom with a fireplace and dressing area. Other Bedrooms with Jack & Jilll bath. Study, Exercise/Nursery. Laundry room, plenty of storage. The property features a stylish modern kitchen with Granite counter tops, Tile, Top Of The line stainless steel appliances. Professionally landscaped, sprinkler systems all around. Three car garage with door openers. Alarm Systems installed. Quite but close to I-15, Old Town & Shopping. Private sanctuary of a garden, majestic oak trees, small orchard, fantastic views. Existing income producing Avocado grove with 200 mature HASS avocado trees. (Buyer to verify).

http://www.ihomefinder.com/idx/detail.cfm?cid=1501&bid=21&pid=T08096389

OFFERRED AT $1,549,000

This recently completed gorgeous estate home on 8.15 acres Situated in the Santa Margarita Ranchos in serene De Luz/Temecula West Hills. Beautiful Custom Iron Double Doors Open onto a Hugh Galleria, Formal Living Room, Dining Room & Outside Lanai. Private Master Bedroom Suite with expansive, contemporary Master bathroom with a fireplace. and dressing area. Carpets & Travertine throughout. Features include large bedroom with storage bathroom, study, Exercise/Nursery. Separate Laundry. Large family /entertainment with a fireplace, French doors to patio. Features a stylish modern kitchen with Granite counter tops, Cherry, Tile, Top Of The line stainless steel appliances. Professionally landscaped, sprinkler systems all around. Three car garage, door openers. Alarm Systems installed. Quiet, close to I-15, Old Town, Shopping. Room for horses, RV, Pool, Fantastic views of mountains & hills. Existing income producing Avocado w/ 500 HASS avocado trees. (Buyer to verify).

http://www.ihomefinder.com/idx/detail.cfm?cid=1501&bid=21&pid=T08096316