Luxury Home on Rivo Alto Canal, Naples Island

Facing Rivo Alto Canal, custom home built in 1989 on two lots, 700 sq. ft. 4-car garage (not tandem), and two boat docks. Kitchen has walk-in pantry, wine refrigerator and adjacent informal dining with water view, rooftop deck, two fireplaces, large formal dining room, plus family room. Large upper master faces canal--great opportunity for the buyer looking for a larger home on Naples Island! Many more amenities. Click on photo for more details, or for a showing.


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Quote for the Week: Buy Now If You See the Home You Want

"The plain fact is that you don't know when real estate will be at bottom until it's too late. If you see a home you love, buy it now if you plan to be in it a long time. And know that the headline writers want to whip you up and make you crazy about the economy. They sell fear. Stay calm and stay well to do." Ben Stein "Don't Panic - Buy Index Funds and Real Estate"

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New California Law Requiring Notice from Lenders

New law in California requiring lenders to contact homeowners 30 days prior to filing a Notice of Default (NOD), so don't overlook your mail, especially when it comes from your mortgage lender:

"FORECLOSURE RELIEF BILL BECOMES LAW This week, the State Legislature enacted foreclosure reform law to address the adverse effects of high foreclosure rates in California. The new law requires lenders to contact homeowners to explore options for avoiding foreclosure at least 30 days before filing a notice of default. It also requires owners acquiring property through foreclosure to maintain the exterior of vacant residential properties. The new law also extends from 30 to 60 days the time for residential tenants to move out of properties that have been foreclosed upon, unless other laws apply. These requirements will remain in effect until January 1, 2013. The full text of Senate Bill 1137 (Perata) is available at http://www.leginfo.ca.gov/.

- Contact Between Lender and Borrower: Effective on or about September 8, 2008, a lender, trustee, or authorized agent may not file a notice of default until 30 days after contacting a borrower to assess the borrower's financial situation and explore options for avoiding foreclosure. A lender must generally contact the borrower in person or by telephone, or satisfy due diligence requirements for contacting a borrower. During the initial contact, the lender must inform the borrower of the right to request a meeting with the lender within 14 days. The lender must also give the borrower the toll-free number for finding a HUD-certified housing counseling agency. A subsequent notice of default must include the lender's declaration that it has contacted the borrower, tried with due diligence to contact the borrower, or the borrower has surrendered the property. A lender who had already filed a notice of default before the enactment of this law must include a similar declaration in the notice of sale. This requirement to contact borrowers applies to loans secured by owner-occupied residences made from 2003 to 2007. Certain exemptions apply if the borrower has filed for bankruptcy, surrendered the property, or contracted with a person or entity whose primary business is advising people, who have decided to leave their homes, on how to extend the foreclosure process and avoid their contractual obligations.

- Maintenance of Vacant Properties: Effective July 8, 2008, anyone who acquires property through foreclosure must maintain the exterior of vacant residential property. Violations of this law include permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action against trespassers or squatters, failing to take action to prevent mosquitoes from breeding in standing water, or other public nuisances. This law authorizes a governmental entity to impose a civil fine up to $1,000 per day for any violation, as long as the owner has been given notice and an opportunity to remedy the violation. A violator must be given at least 14 days to begin, and 30 days to complete, such remediation before a fine can be assessed.

- 60-Day Notice to Terminate Tenants: Effective July 8, 2008, a tenant or subtenant in possession of a rental housing unit that has been sold through foreclosure is generally entitled to a 60-day written notice to quit, not just 30 days. However, a borrower who remains on the property after foreclosure may be served a three-day notice to terminate. This law does not affect, among other things, rent-controlled properties with just-cause evictions. Effective on or about September 8, 2008, the lender, trustee, or authorized agent posting a notice of sale must also post and mail a specified notice of a tenant's right to a 60-day eviction notice from the new owner, unless other laws apply. This requirement to notify tenants of their rights applies to loans secured by residential real property where the borrower has a different billing address than the property address." per California Association of Realtors

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If You're Waiting For Prices to Come Down ....

Last Wednesday the Federal Reserve decided to leave the federal funds rate alone, for the time being.

"The Fed is in a quandary. The economy has slowed, led by a decline in home sales and rising inflation, stemming primarily from increasing energy prices. The Fed's primary role in relation to the economy is to combat inflation and preserve economic growth. To combat inflation, the Fed will ultimately have to increase interest rates in coming months. What Does This Mean to You?"

Here's what my colleagues at You Should Own have to say:

"If you're looking to buy a house, consider these key points:

• Home prices in some areas are at five-year lows, while personal incomes in that same period have increased.
• Homes are more affordable for many right now, particularly first-time home buyers.
• Sellers are extremely motivated and many buyers in our area have benefited from the unbelievable deals that exist today.
• Experts foresee a strong rebound in home prices when the economy
  begins to recover, according to a new report from the Joint Center for Housing
  Studies.
• That means buyers today will be sitting on valuable properties tomorrow."

Much is made of the recent foreclosures and subprime loan issues that have stalled the market, but due to the overall streamlining of loan underwriting due to uniform credit scoring and automated underwriting, the largest rise in homeownership occurred between 1994 and 2001. According to Harvard's Joint Center for Housing Studies' 2008 report, unless another one million homeowners lose ownership it will not dip below the 2000 level of ownership. Even if that does occur, "once the oversupply of housing is worked off and home prices start to recover, the use of automated underwriting tools, a return to more traditional mortgage products, and the strength of underlying demand should put the number of homeowners back on the rise."

It's been noted for several years now that the formation of new households due to changes in the population will impact the demand for housing over time (including the current Harvard report), so I'm still betting that "buyers today will be sitting on valuable properties tomorrow."

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Southern California Cities in Escrow

Here's the general trend of current pending sales of several cities noted through the SoCalMLS record, first taking all residential and commercial properties at all prices, and second looking at condos and houses in escrow and listed over $750,000 (second group for some cities):

• Long Beach - 19% (approx. 576 plus 2499 active); 12% (30 pending, 213 active)


• Norwalk - 21% (approx. 134 plus 493 active)


• Cerritos - 31% (approx 65 plus 147 active); 21% (76 pending, 281 active)


• Bellflower - 20% (approx 82 plus 319 active);


• Cypress - 24% (approx. 57 plus 166 active);


• Lakewood - 29% (approx. 115 plus 283 active); 17% (2 pending, 10 active)


• Stanton - 24% (approx. 51, plus 160 active);


• Seal Beach - 18% (approx. 50 plus 221 active); 23% (10 pending, 33 active)


• Downey - 20% (approx. 135 plus 554 active); 6% (6 pending, 97 active)


• Huntington Bch - 20% (250, plus 1014 active); 21% (76 pending, 281 active)

For properties over $750,000, Downey appears to be the least successful in that market. Both Huntington Beach and Long Beach escrows range up to the $5,000,000 price.

This is an "unscientific" local market assessment to take a look at general trends in the area, with the only price breakdown for residential being over or under the $750,000 mark, a completely arbitrary price point based on my personal experience with buyer comments about their affordability.

The first-time buyers and others in the $300,000-$350,000 price range are out in full force, recognizing that with the buyer affordability index at 44% (California Association of Realtors), now is the time to buy. Sales activity is historically higher at this time of year, but my opinion is that the second half of 2008 will fare better than the first half of 2008 and all of 2007. "Short Pay" sales seem to be more than half the market in some areas, but the good news is that some banks are becoming faster and more efficient in handling their approvals and closings on these properties.

Are higher end properties over $750,000 selling slow in all areas (see Dataquick article)? Not in Seal Beach or Huntington Beach--whereas that seems to be true in Long Beach, Downey, Lakewood, with Cerritos doing better in that price range.

Many bank-owned properties right now are a poor reflection on the market, most of them are sold in poor condition with no attempt at any basic carpet and paint clean-up, a minimal cost, so those either invite lowball offers or sit longer on the market.

Yep, More News on California's Rise In Sales, and Prices

I hope all buyers are taking note of the following right now, because if this buying trend is true as a lot of recent sales indicates it is, the trickle-up effect will take place for homes in the higher price ranges.

From Associated Press today:

As foreclosures push down California housing prices, first-time home buyers surge into the market. The California median home price fell 30 percent in May, the sharpest decline in 20 years, since DataQuick Information Systems began keeping records. The drop in home prices has sparked a home-buying rally that's beginning to reverse more than two years of monthly year-over-year sales declines. "Inland markets hit hardest by foreclosures and falling prices are now the most likely to post higher sales than last year," says Andrew LePage, a DataQuick analyst. "These communities have been attracting first-time buyers, first-time move-up buyers and investors." Richard Cosner, president of Prudential California Realty, says buyers of homes whose prices have declined in the last 18 months from $400,000 to $200,000 must compete with multiple bidders. "For the first-time homebuyers and for that bottom tier of homes, we've found what the bottom of the pricing is," Cosner says.

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Recent Market Activity in Long Beach--It's A "Sold" Time

The constant reporting on the number of foreclosures, i.e., such as this today from Inman News:
"California had the highest volume of foreclosure filings, with filings reported on 71,930 properties" is not saying what else is going on.

Unfortunately, I've had less time recently to devote to writing as many posts, but in checking the local Southern California MLS today for all residential and commercial listings, including leases, there are 2,473 active listings, with 555 in escrow (backup and pending categories).

Since April 1st, 564 properties have closed escrow; of that same number, in the last 30 days, 238 properties have closed escrow. Is it just because it's Spring and Summer, or is the market actually picking up. Another casual statistic overheard today is that Long Beach's inventory has in the past few weeks been reduced by one-third.

If activity in recent weeks is any indication, $300,000 is the bottom of the market in many areas for single family residences and $200,000 is the bottom for 2-bedroom condos. The bank-owned properties are so attractively priced in many cases that the investors and first-time buyers are having to compete with each other in multiple offer situations. In the last week, one condo was on the market 4 days and received 15 offers, another single family received 30 offers, and the same story for two other houses in the South Bay, also just listed days before, in residential neighborhoods. The winning offers on these properties were as much as $50,000 over asking price (in the case of the condo) and $20,000-$30,000 for the houses in this scenario, as-is, no repairs.

In spite of more activity, loan requirements are not necessarily that much easier, for example, some banks are going to 15% down payment requirements after July 1 (for conventional loans), and all lender sources have tightened up their FICO requirements. If you're buying a condo, be aware that new FNMA guidelines are requiring a closer look at the HOA's financial reserve funding status, plus a few other issues.

So if you're interested in a property, maybe this is finally the time for you to find your new home. You can take a look at http://www.juliahuntsman.com, but for a more targeted search, go to HomeBuyers Market (where you can mute the auditory on the video if you want to just watch).

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Are Reductions Finally Leading to the Price Change Point?

Along with the general information from National Association of Realtors that April's pending sales were up 6.3%, Lawrence Yun, the chief economist, also says,

“Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it’s unclear if they are investors or owner-occupants,” he says. “Sharp price reductions are leading to a quicker discovery of price equilibrium points. The West is already seeing year-over-year gains in pending contracts.” See the pending home sales by region since 2005.

Some buyers are already discovering this locally. Single family house properties under $400,000 and mid-$300,000's in previously desirable areas are getting multiple offers, while the condo market and new home sales may be sitting a while longer. Per Realist's tax data information, the Los Angeles County median single family price for April, 2008 is $445,000 ($570,000 one year ago); for condominiums, $405,000 ($459,000 one year ago).

While California is officially not a "declining market" as of June 1 per FNMA and Freddie Mac, the proof is in whether or not the lenders follow suit with appropriate programs which will benefit first-time buyers in particular. Right now FHA is the most viable product for first-time buyers or low-down payment buyers. For additional assistance, please contact me or search properties at http://www.juliahuntsman.com/.

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Legal Settlement in Transunion Credit Score Lawsuit

Huge settlement in a legal case originally filed 10 years ago and affecting Transunion's credit reports and 160 million Americans:

"The case being settled stems from a business operated by TransUnion that sliced and diced data from the Chicago-based company's massive credit files to generate customized lists of consumers. Retailers, lenders and other businesses would buy the lists to use in their marketing."

"Under the settlement, anyone who had any type of loan account between January 1987 and Wednesday would be able to select one of two options:

"* A basic service would provide free credit monitoring for six months. It normally retails for $59.75, according to the settlement. Those who select this service can also apply for a cash payment.

"* An enhanced service would provide nine months of free monitoring, plus use of a "mortgage simulator" that lets consumers see whether improving their credit score would affect their mortgage rates and how much they could save if it did."

See the Los Angeles Times article for an update and for link to the settlement website.

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Naples Island Home on Canal--Luxury Property

Water view: Canal frontage plus a boat dock and private inner courtyard.

Click on photo for listing information.










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At Last! Finding the Right Home by Building Your Wish List

Here is a great video by Ilyce Glink talking about establishing your "wish list" for home buying. Whether you're currently a renter, or a homeowner who needs to sell before moving on, I believe this is what everyone really needs to do very early in their planning for a new home, from the house itself to the location that will best serve them! Once this is done, it's a lot easier to start matching up your desired neighborhoods and your financing programs with what's on your list. If you're looking for assistance on more ways to make that match, please contact me! If you're interested in a property search, either take a look at the Homebuyer Market Program below for a comprehensive approach to homebuying, or go to my MLS search at http://www.juliahuntsman.com/ . Why do I say "at last!"??? Well, this may deeply surprise some of you, but in my experience I have actually met buyers who believe they will "just know" they have found the right house when they walk into it, and also in my experience, the buyers who "just know" are the ones who did their homework first.

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FNMA: California No Longer a "Declining Market"

Since last December, California was named a "declining market" by FNMA ("FannieMae"), but in the spirit of its original mission under its 1938 creation under Franklin D. Roosevelt to "help those who house America", last Friday, May 16th, it removed that designation.

So what does this mean for you? "The new national down payment policy will supersede the policy the company adopted in December 2007 that required higher down payments in markets where home prices are declining...", which means that once again 3% and 5% down payment conventional loan programs will be allowed in California (and other areas). For the last several months, no matter how good your credit was, a buyer couldn't get a loan unles he/she had 10% down funds of the purchase price. So if you were making an offer on a $500,000 home, you had to have $50,000 down payment funds, and many of the first-time buyer programs that might otherwise have been able to assist you are just not available right now. The new policy goes into effect June 1, so hopefully we will be seeing those loan options returning to the local market sometime after that.

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Is April 2008 the Bottom of the U.S. Housing Market?

According to this Opinion article by Cyril Moulle-Berteaux, in the Wall Street Journal, May 6, 2008, it might be--

• "Home sales peaked in July 2005" (I can buy that. In August 2005, the time on market started stretching out longer and longer. But it was August of 2007, when the loan credit shrank, that prices started to drop.)


• "Prices got so high that people who intended to actually live in the houses they purchased...stopped buying". Yes, the speculators left the building.


• "It now takes 19% of monthly income for the average home buyer, and 31% of monthly income for the first-time home buyer, to purchase a house. In other words, homes on average are back to being as affordable as during the best of times in the 1990s." And due to the reduction in types of loans, first-time buyers especially are at a disadvantage.


• "When the rate of house-price declines halves, there will be a wholesale shift in markets' perceptions." So in other words, could there be a shift in supply vs demand as people start to recognize some good buys?


• "House prices won't stop falling entirely until inventories reach five months of supply sometime in 2009. A five-month supply has historically signaled tightness in the housing market." He says we will see seven months supply by the end of 2008; currently, in many areas there is 10-11 months supply on the market.


• "Even if home sales pick up, how can home prices stop falling with so many houses vacant and unsold? The flip but true answer: because they always do." Another answer is that there are a lot of cash and 50% cash buyers -- not everyone is a first-time buyer -- and the cash buyers eventually become active in the market.

What do you think? Is is time to sow new ground yet, like those civic-minded Rotary guys in the old photo (local park, by the way)? Are we close to the bottom the market? If you don't think so, or you do, just leave a comment.

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Buyer Down Payment Assistance

Many times the buyer needs extra cash to close, and many times the seller might be willing and able to contribute funds in order to sell his/her property.

The HART (Housing Action Resource Trust) down payment assistance program is one designed to do just that. Unlike certain other program geared strictly to first-time buyers, geographic or income limitations, this program does not place such requirements. Also, in most loan programs, the seller may not pay towards the buyer's down payment, however, the HART program is structured so that funds from the seller given to the HART program may be used towards the buyer's: down payment, closing costs, pre-paid taxes, or rate buy-downs.

This program now allows for funds up to $25,000.00 (updated info) to be given by the seller as agreed upon in the contract to the HART program when a homebuyer is working with a participating HART mortgage originator and the buyer is obtaining an FHA loan.

For instance, the funds could be used in all categories:

$3,000 (closing cost)
$5,000 (down payment)
$2,000 (pre-paids)
$1,000 (rate buy-downs)
Total: $11,000.

If you would like to qualify for a loan or speak to a loan representative, please contact me.

More information is available at http://www.hartprogram.com/.

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Negotiating Buydown Strategy for Sellers

Reduce the price? or Buy down the interest rate?

Here's a great buydown strategy just sent to me today:

This rate buy down strategy will help sell your listings faster and help you respond to that low ball offer. In a competitive market to get a buyer, this could be a strategy that will make you (seller or agent) shine above the rest and solidify the close of escrow.

Question: Should you reduce your sales price or should you reduce your Buyer's interest rate?

Monthly Obligation

1. Did you know that a price reduction of $20,000 on your listing will save the buyer $103.00 per month?

2. The same $20,000 in buying down the interest rate will save the buyer $541.00 per month!

Qualifying

1. Did you know a buyer of your $450,000 listing needs $96,000 in income to qualify for the loan.
2. Did you know a buyer of your reduced $439,000 listing needs $94,200 in income to qualify for the loan.
3. Did you know that if you took that same $11,000 dollar reduction and paid down the interest rate, that listing needs only $74,400 in income to qualify for the loan.

Listing Scenarios:

Listing One-Listing Price $750,000.00--DOM=120, Payment=$3,453.00.
Price Reduction to $725,000--Payment=$3338.00, DOM=130.

Listing Two-Listing Price $750,000.00 and effectively reduced with a seller interest rate buydown. (Interest Rate Buydown Cost $12,750.00 to $19,125.00) DOM-?, Payment $2,922.00 , Sold! Saving the buyer over $45,000.00 in five years.

Listing One (Reduced)-Down Payment ($108,725.00) and Loan Closing Costs ($9,000.00) = $117,750.00 at the closing table.

Listing Two - Down Payment = $112,500.00 at the closing table. Loan Cost paid by sellers.

Listing One- Income Needed- ~$98,000.00

Listing Two- Income Needed- ~$87,000.00

Listing Two, with a buy down strategy, saves the buyer over $45,000.00 in five years and over $95,000.00 in ten years.

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Decline is in Sales Volume, Then Prices

Follow the pink line to the end of the first quarter--March 31, 2008--to see the continuing trend of sales volume falling at a much steeper curve than sales prices for Long Beach.

Tighter loan guidelines and less available funds for loans keep fiinancing tight for even the most qualified buyers, giving cash buyers a distinct advantage in this market.

The median sales price for Los Angeles County is $431,950, a decrease from February's median of $477,650--this data does not include condos. (These figures are not representative of the average price of homes in all communities, but are priced on homes that actually sold.)

Per California Association of Realtors, the March data is:

Statewide, the 10 cities and communities with the highest median home prices in California during March 2008 were: Newport Beach, $1,198,500; Danville, $990,000; Santa Barbara, $977,500; Redwood City, $872,500; Mountain View, $862,000; San Clemente, $842,000; Sunnyvale, $806,500; San Ramon, $790,000; Redondo Beach, $774,000; San Francisco, $755,000.

In spite of the overall California median price for a single family detached home decreasing to $413,980, 29 percent decrease from the revised $582,930 median for March 2007, some communities have median price gains compared to one year ago: Mountain View, 25.8 percent; Sunnyvale, 15.2 percent; Redwood City 12.9 percent; Yorba Linda, 10.4 percent; San Ramon, 7.6 percent; Ridgecrest, 7.6 percent; Claremont, 6.7 percent; West Hollywood, 3.6 percent; Laguna Niguel, 3.3 percent; San Francisco, 0.7 percent.

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Orange County Sales Are Moving Up

Is 23% the critical number for Orange County sales? Yesterday I got all excited about an Orange County Register article by Jonathan Lansner entitled "Homebuying demand jumps 23%, expert says: Wave of first-time buyers causes number of properties in escrow to soar vs. a year ago" and went looking for the link online. Had a hard time finding that article online, but found this byline about LA/OC home prices by Mr. Lansner as being down 23% this year. In spite of that, here's a quote from the article,

"Demand for Orange County housing is growing, according to Steve Thomas at Re/Max Real Estate Services in Aliso Viejo. As of Thursday, 2,374 houses and condominiums had gone into escxrow in the past 30 days, a 23 percent gain vs. a year ago."

Market absorption time is reportedly 6.55 months at the current rate if all properties currently in escrow are sold, a much shorter period of time than 10-11 months inventory supply in other markets.

If anyone finds the online article, please let me know!

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The Terms in Your Offer to Purchase

In a 10-page contract, there are quite a few terms and conditions to cover with a buyer when they're writing one with the agent, or with sellers when they receive one from an interested buyer. If using a Realtor as your agent, then you should be using the standards forms with the California Association of Realtors logo imprinted at the top and which are used statewide in residential transactions (logo at right). This post won't answer all questions, by the way, your own case will be individual to your concerns and interests.

• Expect to take some time meeting with your agent the day you make an offer. It's pretty hard to do in five minutes (as I've had some people actually expect). You need to understand buyer contingencies; you should have already contacted a loan officer and bring a letter or certificate or pre-approval with you to the meeting; and be prepared to write a check for the deposit money, which will be held in trust by your agent until submission to escrow.



• The Loan: While funding the loan could remain a contingency throughout the escrow (it's negotiable with the seller), obtaining your down payment and costs of the loan is not, and the contract says "buyer shall act in good faith to obtain the designated loans"--which means that even if one source in this volatile market may no longer be able to help you, you have to do your very best to find another loan in order to honor your agreement with the sellers. After all, you said you would buy the house from them, they've made their arrangement to move one, they may in contract themselves with another purchase they worked hard to find and negotiate, and they're counting on you to perform. Also, you should have already worked out what monthly payment you're comfortable with, because if your agent does not write in a maximum interest rate for your loan on the contract, you could be legally obligated to pay any interest rate, no matter how high.


• Escrow Time: This is another negotiated item, both the provider and the length of time. The usual time is 30 days, but what if the buyer has to give notice, or sell, or what if the seller needs more time to move out, or has a contingency to buy a new home; or what if the buyer's loan is FHA which typically takes a little longer for cosing ... then 30 days might mean 45-60 days. AND, if you decided to purchase a "short pay" property, your escrow time would more likely be 60-90 days because most banks aren't working that quickly on those approvals ... so then if you're financing that property, your interest rate environment could change in that period of time. Be prepared.


• The Appraisal: The appraiser is sent out by the lender to appriase the property, and often the contract requires the buyer to remove that contingency within 17 days. The seller wants to move one, and the buyer wants to know the selling price and appraisal are in agreement. This is just one of several areas where if there is no agreement, the buyer may cancel (not will, "may"). Appraisal reviews are more common, take up additional time in escrow, and even if they don't delay the close, nerves could be frayed over this issue.


• Buyer Inspection(s): This is a major contract contingency, so on the day the buyer has his/her physical inspection, you should be able to follow the inspector around as much as possible and ask questions, or certainly at the end, and most certainly when you get your report, which also the seller receives. Because the buyer has only so many visits to the property before it closes, it's tempting to use that time for home decorating ideas and measuring for furniture. But later on, if an issue comes up, you the buyer might wish you had paid more attention to that inspector while he/she was there, and whom you paid for the inspection.


• Are tenants currently living on the property? Make sure your contract covers their departure or their continuing occupancy.


• Seller Disclosures: The contract spells out the timeline and the nature of these disclosures, and the buyer right to cancel. Carefully look at the Transfer Disclosure Statement, and if you still have questions, take the time to follow up with your agent. The seller is supposed to disclose known defects, but the sellers don't always know absolutely everything about their property. Buyers must do their "due diligence", which is the buyer is given 17 days and a separate buyer inspection form to let them know all the issues to look into if necessary. There are other numerous documents to sign, including the natural hazard report, California tax report, lead-based paint, water heater, smoke detector, and other required or recommended forms, as much as 17-18.


• Taking Title: You need to instruct the escrow officer , and if necessary, get legal advice about how to do this, whether you're single, divorced, married, have a trust, etc. Are you taking joint tenancy, community property with right of survivorship, sole proprietor? How title is taken can affect future legal rights.

These are just a few of the basics of dealing with an offer, other issues include dealing with homeowner associations, liquidated damages and arbitration/mediation. Buying or selling a home is a significant event for most people, it's important to set aside the right amount of time for it. The more you prepare yourself in advance the less chance you will have buyer or seller remorse about how your transaction was handled. Dian Hymer's "Starting Out" is a good publication for buyers.

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Meet Web 2.0 for You

Want to find out about types of shops in your current neighborhood, or one you're thinking about moving to? Type in an address at http://www.walkscore.com for an area map.
If you want to stop writing lists on pieces of paper and put them in one place where you can share them, try http://www.tadalist.com, a free service that lets you share them publicly or privately. For an online word processer for uploading your documents, there's www.zohowriter.com , and for uploading spreadsheets, go to http://www.docs.google.com and open a free account with Google. Reduce large e-mail files for easier sending at http://www.gigasize.com.

Historic Renovation and Property Tax Benefits

The Mills Act was enacted in California in the 1970's, but is now much more widely known due to its 40-60% reduction in property taxes for qualified properties.

Effective March 7, 1973, Chapter 1442 of the Statutes of 1972 (also known as the Mills Act) allows an owner of qualified historical property to enter into a preservation contract with local government, which establishes its own criteria and determines how many contracts they will allow. When property is placed under such a contract, the owner agrees to restore the property if necessary, maintain its historic character, and use it in a manner compatible with its historic characteristics. the authority to enter into contracts, which are for 10 years at a time and stay with the property when transferred, with owners of qualified historic properties who actively participate in the restoration and maintenance of their historic properties while receiving property tax relief.

"A qualified historical property is privately-owned property that is not exempt from property taxation and that also meets either of the following criteria:

• The property is listed in the National Register of Historic Places, or is located within a registered historic district; or

• The property is listed in any official state, county, city, or city and county official register of historical or architecturally significant sites, places or landmarks, including the California Register of Historical Resources, California Historical Landmarks, State Points of Historical Interest, local landmarks, and local survey listings of historical properties."

Long Beach is one of the cities which participates in this program, here is a contact list for all California cities: http://www.parks.ca.gov/pages/1074/files/mills%20act%20contacts.pdf

For more information or a map of local historic districts, please contact me at 562-896-2609.

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Properties are Selling in Southern California

It's that time of year when the weather is warmer, and traditionally there is more market activity, so what's happening now in local area cities? How many properties are currently in escrow?
For residential properties (houses, condos, townhomes, own-tour-owns, coop units) as listed in the MLS:

1. Long Beach - 397 (March closed esrows - 165)
2. Huntington Beach - 215 (March closed escrows - 104)
3. Cerritos - 42 (March closed escrows - 24)
4. Lakewood - 121 (March closed escrows - 49)
5. Seal Beach - 33 (March closed escrows - 30)
6. Los Alamitos, including Rossmoor area - 16 (March closed escrows - 16)
7. Bellflower - 50 (March closed escrows - 14)
8. Cypress - 49 (March closed escrows - 15)
9. Costa Mesa - 74 (March closed escrows- 44)

If the above figures are any indication, the sales activity has increased overall. There are factors such as length of escrow time and seasonal activity, however, the overall decline in the median sales price combined with higher loan limits available are factors as well. Check the March zip code chart for sales trends in your area.

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The Best Buyer's Market in 35 Years

In April of 1973, mortgage rates were about the same as they are today. Since that time, we have only had mortgage rates this low during 2001 and 2002, the height of the seller's markets where there was little inventory. In the last two major buyer's markets, one in the early 1980s and the other in the early 1990s, the rates were much higher. When I started in the business in 1994, interest rates were at 9.5 percent, (and they were at 18 to 21 percent in 1980). In the early 1990s, the rates were hovering in the 11 to 12 percent range. Thus, today's buyer's market, with exceptionally low mortgage rates plus a substantial supply of inventory, is the best time in decades to purchase.

(Thanks for the plug from Berniece Ross!)

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Water Wise Landscaping in Southern California

This is the time of year when thoughts turn to outdoor lawns and gardens. This year, some planning, and awareness of new laws, can save you some money.

Water conservation is a growing focus in a land that used to be a desert before all the swimming pools were added. Los Angeles' Metropolitan Water District developed a BeWaterWise website several years and (I still have a few CDs) for native plant gardening, classes, and irrigation systems installation. See the Water Calculator to assist with your climate's and soil's watering needs on a season basis.



The City of Long Beach recently passed an ordinance for saving water, and limits landscape watering to specific days (Monday, Thursday and Saturday) and times. Pressure washers (under pulldown menu at "Water Conservation") are to be used instead of hoses if absolutely necessary for outdoor use. The city Water Department is sponsoring landscaping classes during April, May and June focusing on irrigation systems and installation, and "California-friendly" plants. Certain neighborhoods are already popping up with water-efficient landscaping, and looking very attractive. There are also a few rebate programs offered by the City for using certain water-saving toilets, rotating sprinkler nozzles which use 20% less water and reduce runoff, and high-efficiency clothes washers (HECWs). In Orange County, rebates are also offered for synthetic turf and timers.