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National Real Estate News Equals Local Results

noreply@blogger.com (Fran and Rowena) — Fri, 24 Jul 2009 11:36:00 +0000

In case you missed it yesterday, the National Assocation of Realtors (NAR) released positive real estate market statistics that is widely credited with the rally on Wall Street that pushed the Dow to close over 9,000.

The NAR stated that "Existing-home sales rose for the third consecutive month with inventory easing and home prices declining less sharply in June". Taking this as an indication that the housing market has started to recover, the financial markets reacted accordingly.

Yes - that's exactly what has happened in our business. Sales are up over last year, more buyers are seriously "in" the market ... not just looking. We're noticing that in some price ranges in some areas, prices actually seem to be holding steady ... or even inching up a bit. This has generally been fueled by multiple offers, thereby pushing prices upward.

Further, the NAR states that "A June survey of NAR members shows 37 percent experienced at least one lost sale as a result of the new Home Valuation Code of Conduct, with seven out of 10 reporting an increased use of out-of-area appraisers. Seventy percent of NAR appraiser members said consumers were paying higher fees, while 85 percent report a perceived reduction in appraisal quality."

Yes - that's exactly what we wrote about in our blog post here: Whose Real Estate Market is it Anyway

To read more: National Association of Realtors July 23 press release.

10210 McBroom Street, Shadow Hills 91040 - horse property for sale

noreply@blogger.com (Fran and Rowena) — Thu, 16 Jul 2009 06:05:00 +0000

Video of Fran and Rowena listing. This five bedroom residence is approximately 4,400 square feet and is located on over 40,000 square foot lot. Pool, spa and three additional guest quarters. This Shadow Hills horse property has much to offer!

For additional information, a color brochure or a confidential appointment to see this property, please call Fran and Rowena of Dilbeck Realtors at (818) 952-0077.

Whose Real Estate Market is it Anyway?

noreply@blogger.com (Fran and Rowena) — Thu, 09 Jul 2009 03:50:00 +0000

Observations from the trenches ...

If you are familiar - even vaguely familiar - with real estate terms, then you have heard the phrases "it's a buyer's market" and "it's a seller's market". Those phrases describe who has more "control" of the real estate market.

Well, today we say "it's a lender's market".

"What do you mean by that?" you ask. In our opinion, today's real estate market is "controlled" by the lenders. If the home buyer wants to get a loan, and if a home seller wants to sell their home to the buyer who has to get a loan, then both the home buyer and the home seller have to conform to the lender's requirements.

Home buyers must qualify for the loan with strict lender guidelines.

Home sellers know that their property must qualify for the loan via the appraisal, and stringent appraisal guidelines. These appraisal guidelines changed significantly this past May 1. Read more about it here: Home Valuation Code of Conduct, enhancing the independence of appraisers. The result? Strict appraisal guidelines.

So, in today's real estate market - today's "lender's market" - it's what the lenders want that determines the fate of the transaction.

At least, that's our opinion.

Catching Up on Real Estate News

noreply@blogger.com (Fran and Rowena) — Thu, 25 Jun 2009 13:36:00 +0000

It's been busy in our office. To catch you up on some of the recent real estate news:

National Association of Realtors reports sales of existing homes rise in May, giving the market it's first back-to-back months of increased sales since 2005. Can we call it a trend? Time will tell. Read more here: National Association of Realtors May Existing Home Sales

California has 90-day moratorium on foreclosures starting June 15. Do you qualify? Read more here: California Foreclosure Prevention Act

Federal Reserve leaves Fed Funds Rate atatus quo. To read more: Federal Reserve June 24 Press Release

and finally ...

The National Association of Home Builders reports sales of new homes nearly flat in May. Read more here: NAHB May New Home Sales

Home Buyers - Time for a Change?

noreply@blogger.com (Fran and Rowena) — Wed, 24 Jun 2009 16:03:00 +0000

We got an email this week. This email led to the following blog post, sharing something that is a symptom of the real estate market today.

The email was from a prospective home buyer (a couple) who had seen us online, and read reviews of us online, and emailed us stating that they wanted to work with us to buy a home.

At their (email) request, we called this prospective home buyer. In the course of the conversation it was revealed that they had made offers on several properties, only to be "beat out" by other buyers. They were frustrated, upset, confused ... wondering why this was happening. After all, it's a "buyer's market", right?

Seems the buyer was ready for a change - a change in real estate agent.

What happened in our conversation may very well have talked the buyer out of changing agents.

We explained that multiple offers is the norm in the price range and area that the buyer is considering. There's a lot of home buying competition right now. And, the competition is tough! There are many buyers with a lot of cash to use as a down payment (yes, even in today's economy). Buyers are competing on many levels with their offers - offer price, financing terms, plus other terms that differentiate each buyer.

In addition, this prospective home buyer was discouraged that the homes they were making offers on were selling for more than asking price. They were genuinely surprised by this. We explained that many distressed properties (they were looking at foreclosures) are listed at very aggressive prices, thereby encouraging multiple offers and sales prices over the list price.

The bottom line - if you feel the agent is working hard for you, continue working with that agent. We told the buyer that we would appreciate the same loyalty if it were a buyer who was working with us.

We don't know if the buyer will decide to work with us or not. But, we do know that they appreciated our input.

And, that other agent will never know that his/her buyer called us.

Pending Home Sales Rise

noreply@blogger.com (Fran and Rowena) — Sun, 14 Jun 2009 00:45:00 +0000

While national home prices have been reported on the decline (reference our May 26, 2009 blog post: Home Prices Continue Decline Nationally"), the National Association of Realtors® (NAR) has recently released data showing that pending home sales are up for the third month in a row.

What's leading this buyer return to the real estate market? The NAR says that "Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit".

To read more: NAR Press Release: Pending Home Sales Up for Three Months in a Row.

The Federal program is "A tax credit of up to $8,000 ... available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009".

To learn more about this Federal program, please read here:
Federal Housing Tax Credit for First Time Home Buyers

Many states have their own "stimulus" program for home buyers.

In California, there is a tax credit for "qualified home buyers" who purchase a "qualified principal residence that has never been occupied". To learn more details about the program, read here: California Tax Credit for New Home Purchase

Report on Mortage Application Activity

noreply@blogger.com (Fran and Rowena) — Wed, 10 Jun 2009 13:11:00 +0000

The Mortgage Bankers Association (MBA) reports that for the week ending June 5, 2009, higher interest rates have put applications for purchases on a steady course while applications for refinances are down.

The MBA numbers indicate that "The refinance share of mortgage activity decreased to 59.4 percent of total applications from 62.4 percent the previous week. This is the lowest the refinance share has been since November 2008."

Not much of a surprise here. Our home buyers are very aware of rising interest rates. Our advice to prospective home buyers: check with your lender to see how the current interest rates will affect how much you can afford to spend on a home purchase.

To read more: Mortgage Bankers Association Press Release 6/10/09

Real Estate Major Factor in Job Change

noreply@blogger.com (Fran and Rowena) — Wed, 10 Jun 2009 09:54:00 +0000

Observations from the trenches ...

In the "old" real estate market, we would get many inquiries about real estate prices from people considering a job change or transfer into our area, or into the state of California. They wanted to know how much it would cost them to buy or rent a home. Out-of-state people were usually shocked at California prices. Move to California and pay more money for less house. Sometimes pay a lot more money for a lot less house. Many people did not make the move based on the high cost of real estate. Therefore, they did not take the new job offer.

In the "new" real estate market, we are getting many calls from people wanting us to estimate the value of their California property as part of the consideration of a job change or transfer. Now people are not making the move because they are limited by the lower value of their home in today's real estate market. They cannot afford to sell their home and, perhaps, take a loss on their investment. Therefore, they are not taking the new job offer.

It's interesting, isn't it? In either market, real estate is a major factor in the job change decision. And, in either real estate market, it can be the deciding factor.

The Secret Ingredient in Real Estate Today

noreply@blogger.com (Fran and Rowena) — Sat, 06 Jun 2009 15:58:00 +0000

Are you buying or selling a home? Then you certainly must know that this is a "new" real estate market. Not the same market as last year. Not the same market as at the beginning of this year, for that matter. This "new" real estate market is ever-changing and evolving. There's no "status quo" here!

The beginning of 2009 started out with a resounding thud - relatively few sales ... few buyers wanting, willing or able to take the step that would commit them to a mortgage payment. The state of the economy meant the state of the real estate market was definitely on hold.

But, with the spring has come a spring thaw in the real estate market. A more positive vibe is out there with home buyers (reference our prior post: Housing Market Opens up in Spring). And, let's face it. If the buyers aren't buying, there is no real estate market.

Which brings us to the subject of today's article. It seems that while there are buyers ready, willing and able to jump into the market, there is a new breed of buyer out there. We've posted about this before - Two Real Estate Markets.

So, what is the secret to surviving and thriving in today's "new" real estate market?
Patience is what it's all about! Easy to say, not so easy to do.

Home buyers need patience to survive the multiple offer process, and steep competition for distressed properties. Buyers may need to write several offers before becoming the successful buyer. Have patience buyers! Your turn will come!

Home sellers need a big dose of patience to survive the competition out there. "Regular" home sellers are competing with the "distressed" sellers, and prices aren't what they used to be. Home sellers are lamenting their home value lost to the economy. Buyers coming through their home, yet no offers.

In our opinion, buyers are being very selective right now. And sellers - this means you will, most likely, have to go through a lot of buyers before the right one appears. And when they do appear, and write an offer, consider it very seriously.

You may be able to use this real estate market to your advantage ... if you take a big dose of patience along with it!

California Real Estate License Number Mandatory

noreply@blogger.com (Fran and Rowena) — Thu, 04 Jun 2009 11:50:00 +0000

California Senate Bill No. 1461 is effective as of July 1, 2009 and it has real estate agents scrambling to comply. This Bill amends Section 10140.6 of the Business and Professions Code. As of July 1st, it requires a real estate "...licensee to include his or her license identification number on specified solicitation materials, as defined, and on real property purchase agreements when acting as an agent in those transactions."

We've been putting our license number on the purchase agreements for some time now. The California Association of Realtors® purchase agreement has been updated to include a field for the information. However, completing this information has not been mandatory up to this point.

But, it does mean that to be compliant, we will have to print new business cards and other promotional materials including notepads, etc.

What is covered? The Business and Professions code states:
"A real estate licensee shall also disclose his or her license identification number on all solicitation materials intended to be the first point of contact with consumers and on real property purchase agreements when acting as an agent in those transactions... For purposes of this section, “solicitation materials intended to be the first point of contact with consumers” includes business cards, stationery, advertising fliers, and other materials designed to solicit the creation of a professional relationship between the licensee and a consumer, and excludes an advertisement in print or electronic media and “for sale” signs."

Reference: Senate Bill 1461 (note: this is a pdf file)

Home Prices Continue Decline Nationally

noreply@blogger.com (Fran and Rowena) — Tue, 26 May 2009 15:10:00 +0000

The Standard and Poors Case-Shiller Index report through March, 2009 was released today. The report states that "...the U.S. National Home Price Index continues to set record declines".

Metropolitan areas recorded a year-over-year decline of slightly more than 19% for the first quarter. Record monthly declines were noted in Minneapolis, Detroit and New York.

On the flip side, there were some metropolitan areas that recorded improved statistics year-over-year, or when looking at the statistics compared with the month of February, 2009.

To read the press release from Standard and Poors, go here: Case-Shiller Home Price Indices (Note: This is a PDF document)

Learn more: Read about the Case-Shiller Home Price Index

Unclaimed Property and Money

noreply@blogger.com (Fran and Rowena) — Thu, 21 May 2009 17:41:00 +0000

Who knew after we posted a link on Facebook last night to search for unclaimed property that there would be such a reaction? To our surprise we found money for our family members, and now several friends and clients have told us that they have found money and property (a safe deposit box) too!

So, we thought we would share it with our friends who read this blog.

While it's not "real estate", it is "property" ... so allow us the latitude, please.

There may be money or property for you - just waiting to be claimed! In the state of California, you can search for unclaimed property here:
California unclaimed property search

We used the "individual search" function and started by putting only a last name. When there were too many results, we put only the first initial of the first name (in case there were any derivatives of the first name).

Other states have similar searches. Put "unclaimed property search" + (state name) in your search bar to find the link and start searching!

Let us know if you find money or property! Send us an email: blog(at)lacanadarealestate.com

Five Tips for Buying a Foreclosure

noreply@blogger.com (Fran and Rowena) — Thu, 14 May 2009 21:26:00 +0000

We've been working with a number of home buyers whose home of choice happens to be a bank-owned property. Yes, it has been interesting ... walking into a home and finding an empty room where the kitchen should be, or finding rooms with missing light fixtures, etc.

But, for some the property they want to call "home" is part of the "distressed" sale market. And, with this type of property/seller, it can be quite a different transaction.

Here are five tips for buying a foreclosure:

1. Be patient. The banks work on their own time frame, and this does not include weekends or evenings. Most have files and offers stacked up, and are trying to get through them as quickly as possible. The banks don't want the properties on their books any longer than they have to.

2. Do your due diligence. There are fewer disclosures on bank-owned property, and as such, the risk is with the buyer. Have inspections so that you are comfortable with your level of knowledge about the property condition. Some lenders will provide a termite inspection/clearance, some will not. If not, consider paying for one yourself. Inspect - inspect - inspect.

3. Know your budget. Yes, bank-owned properties are generally below "market" value. However, we are seeing multiple offers on these properties, with the eventual sales price going for more than asking. When you combine the increased sales price, the amount of money you spend on inspections, and then include necessary repairs (that are funded with cash out of pocket) ... make sure the property really does fit your budget.

4. Pick yourself up and do it again. You may not get the first property you make an offer on - or the second - or the third. If your offer is not selected, then move on to another property. There are more homes coming on the market every day.

5. Use a real estate agent. Using a real estate agent will give you access to the greatest number of homes; and with their professional guidance and expertise, will help you succeed in today's real estate market.

Housing Market Opens Up in Spring

noreply@blogger.com (Fran and Rowena) — Mon, 04 May 2009 03:30:00 +0000

Real estate is blooming this spring as reported in five markets - Los Angeles, Las Vegas, Nevada; Greenville, South Carolina; Sarasota, Florida; and Myrtle Beach, South Carolina.

While many news stories are about the downturn in sales and prices, these local experts are reporting brisk home buying traffic and increased optimism about this year's real estate sales. Low prices and favorable interest rates are attracting buyers, in addition to incentives.

Read more about these five spring real estate markets here: Buyers Spring Back into Favorite Real Estate Markets

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787 Starlight Heights Drive, La Canada Flintridge, CA 91011 - home for sale

noreply@blogger.com (Fran and Rowena) — Fri, 01 May 2009 15:44:00 +0000

Video of Fran and Rowena listing. Three bedroom townhome on cul-de-sac near La Canada Country Club. Lovely patio and gardens with golfcourse and mountain views.

For additional information, a color brochure or a confidential appointment to see this property, please call Fran and Rowena of Dilbeck Realtors at (818) 952-0077.

Home owners - Is now the time to move up?

noreply@blogger.com (Fran and Rowena) — Thu, 30 Apr 2009 14:12:00 +0000

Current home owners are asking themselves - is now a good time to move up? Many are considering a move sooner rather than later.

What are some reasons for making that move right now?

1. Low interest rates
2. Increased supply of homes on the market so you can find your next home
3. Lower home prices will mean you spend less for your next home
4. Home buyers are in the market. Well-priced homes are selling. Yours can too.

Even with the price of your current home being affected by today's real estate market, many are seizing the opportunity to get into their next (dream) home now! Some are selling now, and then choosing to rent and take a "wait and see" approach.

Whatever your strategy, the opportunities are out there!

4611 Vineta Avenue, La Canada Flintridge, CA 91011 - home for sale

noreply@blogger.com (Fran and Rowena) — Sun, 26 Apr 2009 11:42:00 +0000

Video of Fran and Rowena listing. Wonderful four bedroom home on desirable street in La Canada Flintridge. Grounds include fenced pool, fruit trees and grassy lawn.

For additional information, a color brochure or a confidential appointment to see this property, please call Fran and Rowena of Dilbeck Realtors at (818) 952-0077.

Dilbeck Realtors is independently owned and operated. Information deemed reliable, but not guaranteed.

New Single Family Home Sales Down

noreply@blogger.com (Fran and Rowena) — Fri, 24 Apr 2009 16:23:00 +0000

The U.S. Census Bureau and the Department of Housing and Urban Development have released the March 2009 statistics for new, single-family home sales nationwide. The number of sales was 356,000 (on an annual adjusted basis), reflecting a .6% downturn over February's 358,000 number. However, on a year-over-year basis, the 2009 number was approximately 30.6% less than March 2008.

As for the median home price? The press release stated "The median sales price of new houses sold in March 2009 was $201,400; the average sales price was $258,000."

To read the press release (PDF file): March new home sales

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Nationwide Existing Home Sales Down

noreply@blogger.com (Fran and Rowena) — Fri, 24 Apr 2009 04:36:00 +0000

The National Association of Realtors® is reporting that existing home sales fell slightly during the month on March. The numbers show that existing home sales "...declined 3.0 percent to a seasonally adjusted annual rate of 4.57 million units in March from a downwardly revised level of 4.71 million in February, and were 7.1 percent lower than the 4.92 million-unit pace in March 2008."

Interesting ... especially due to the activity in the distressed real estate market (translation: foreclosures, REOs, short sales - read our prior post about Foreclosure Sales Up) Our guess - buyers are tiring of the downside to these distressed sales (read: Washington Post: Foreclosure Sales Stalled by Red Tape and our prior post about Two Real Estate Markets).

And, the report on home prices? NAR says "Although prices rose from February to March, the national median existing-home price for all housing types was $175,200, down 12.4 percent from March 2008. The price increase from February to March was 4.2 percent, which is much higher than the typical 1.8 percent seasonal increase between those two months. Distressed properties, which accounted for just over half of all transactions in March, typically are selling for 20 percent less than traditional homes."

To read more: NAR existing home sales March

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California Foreclosure Sales UP

noreply@blogger.com (Fran and Rowena) — Wed, 22 Apr 2009 23:03:00 +0000

Much to no one's surprise, sales of foreclosures in the first quarter of 2009 were up nationwide. RealtyTrac® reports that "...foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 803,489 properties in the first quarter, a 9 percent increase from the previous quarter and an increase of nearly 24 percent from Q1 2008. One in every 159 U.S. housing units received a foreclosure filing during the quarter."

Nevada led the way in the first quarter "...with one in every 27 housing units receiving a foreclosure filing — more than five times the national average." Closer to (our) home, California was not far behind with "...the nation’s third highest state foreclosure rate, with one in every 58 housing units receiving a foreclosure filing."

You might have read one of our prior blog posts from March 5 - Two Real Estate Markets.

To read more: RealtyTrac press release

California Dept of Real Estate Gone?

noreply@blogger.com (Fran and Rowena) — Wed, 22 Apr 2009 01:32:00 +0000

Have you heard about California Assembly Bill 33 (AB33)? It is sponsored by California Assemblyman Pedro Nava. He describes on his official website that the bill "Combines the Department of Financial Institutions, Department of Corporations and Department of Real Estate into the California Department of Financial Services into a one stop shop regulator providing clarity for licensees and increased consumer protections".

The Bill is to be considered by Assembly Business and Professions Committee on April 28th. The California Association of Realtors has come out in opposition to the Bill.

Governor Schwarzenegger's statement is here: Governor Schwarzenegger Press Release on AB 33

We'll be watching next week.

4413 Shepherds Lane, La Canada Flintridge, CA 91011 - home for sale

noreply@blogger.com (Fran and Rowena) — Tue, 21 Apr 2009 02:58:00 +0000

Video of Fran and Rowena listing. Lovely estate property nestled in Descanso Gardens area of La Canada Flintridge. Premier amenities.

For additional information, a color brochure or a confidential appointment to see this property, please call Fran and Rowena of Dilbeck Realtors at (818) 952-0077.

Dilbeck Realtors is independently owned and operated. Information deemed reliable, but not guaranteed.

Free Home Buyer's Fair

noreply@blogger.com (Fran and Rowena) — Wed, 15 Apr 2009 06:11:00 +0000

If you are in the Los Angeles area this coming weekend, there is a free home buyer's fair being held at the Los Angeles Convention Center on Saturday, April 18 and Sunday, April 19. Sponsored by the Los Angeles Times and the California Association of Realtors®, there will be a lot of information available.

For additional information, the official website is here: 2009 Home Buyer's Fair

California Real Estate Property Taxes

noreply@blogger.com (Fran and Rowena) — Thu, 09 Apr 2009 02:56:00 +0000

Important information for California homeowners!

The second installment of California property taxes become delinquent if not paid by April 10 at 5 pm, or close of business day, whichever is later.

Read (PDF document): 2009 Property Tax Calendar

For additional information, there is a PDF document from the California State Board of Equalization here: California property tax Publication 29

For a list of County Assessors, go here: California County Assessors

As background, California property taxes are divided into two halves, based on the July 1 to June 30 fiscal year:

First half covering the July 1 to December 31 period are due on November 1 and delinquent if not paid before December 10th at 5 pm

Second half covering the January 1 to June 30 period are due on February 1 and delinquent if not paid before April 10 at 5 pm.

Second Week of Lower Mortgage Rates

noreply@blogger.com (Fran and Rowena) — Fri, 03 Apr 2009 18:48:00 +0000

Yes, mortgage rates are still feeling the pinch of the economy. National statistics indicate an increase in home purchases (read: National Association of Realtors - pending home sales increase in February), however we are hearing from home buyers that they are looking for value, and many are on the sidelines for personal reasons. Among the reasons we are hearing are job insecurity, waiting for the "bottom", working to improve their credit rating and to save more money to meet lender loan requirements.

Bankrate.com reports that for the second week in a row, mortgage rates are at a record low (dating from when Bankrate.com started their rate survey). As reported, "The average 30-year fixed-rate dropped 6 basis points, to 5.13 percent...One year ago, the 30-year fixed was 6.12 percent; four weeks ago, it was 5.41 percent."

Read more about current rates here: Bankrate.com April 2 interest rate roundup