Month Long Observances
• Hi Neighbor Month
• National Stress Free Family Holiday Month
• Read A New Book Month
• Safe Toy and Gift Month
• Universal Human Rights Month
• Write to a Friend Month
December 1st
• Eat A Red Apple Day
• National Pie Day
• Rosa Park's Day
• World AIDS Day
December 2nd
• National Fritters Day
December 3rd
• International Day of the Disabled Person
• National Roof-Over-Your-Head Day
December 4th
• Hanukkah Begins at Sunset
• National Cookie Day
• Wear Brown Shoes Day
December 6th
• Mitten Tree Day
• St. Nicholas Day
December 7th
• National Cotton Candy Day
• Pearl Harbor Day
December 8th
• National Brownie Day
December 10th
• Human Rights Day
• Nobel Peace Prize Awarded
December 11th
• National Noodle Ring Day
December 12th
• Golf Tee Patented
• Poinsettia Day
December 13th
• National Cocoa Day
December 14th
• South Pole Discovered In 1911.
December 16th
• Boston Tea Party Anniversary
• Las Posadas
• National Chocolate Covered Anything Day
December 17th
• National Maple Syrup Day
• Underdog Day
• Wright Brother's Day
December 18th
• Wear a Plunger On Your Head Day
December 19th
• Oatmeal Muffin Day
December 20th
• Games Day
December 21st
• First Crossword Puzzle in a Newspaper
• First Day of Winter
• Humbug Day
• Look at the Bright Side Day
• National Flashlight Day
December 23rd
• Roots Day
December 24th
• National Egg Nog Day
December 25th
• Christmas
• National Pumpkin Pie Day
December 26th
• Boxing Day
• Kwanzaa Begins
• National Whiners Day
December 27th
• Visit the Zoo Day
December 28th
• Card Playing Day
• National Chocolate Day
December 31st
• New Year's Eve
Sunday, December 2, 2007
Tri-Valley Housing Markets at a Glance
The following Housing Market Summaries were compiled from Southland Regional and Greater Antelope Valley Associations of REALTORS.
San Fernando Valley home sales fall to record low as buyers wait for price declines that may never materialize
Home sales in the San Fernando Valley plunged during October as buyers waited to see what will happen in the home loan market and for resale prices to fall, although there is still no indication that prices will tumble nearly as much as buyers expect.
Single-family home sales throughout the San Fernando Valley during October plunged 54.1 percent compared to the prior year, the Southland Regional Association of Realtors reported on Wednesday, Nov. 28.
A total of 354 homes changed owners, off 417 sales from the 771 total reported in October 2006. Sales also declined on a month-to-month basis, down 2.2 percent. The 354 sales was the lowest total on record, surpassing the prior low of 362 sales set this September. The third lowest tally of 391 sales came in February 1991.
That compares to the record high of 1,648 home sales, which was set in August 1988. The closest the San Fernando Valley came to that record high during the most recent sellers’ boom market was 1,321 sales in June 2002.
Condominium sales fell 48.6 percent from the prior year with this October’s 128 transactions off 121 sales from the 249 sales of October 2006. Condo sales fell 17.4 percent on a month-to-month basis. The 128 sales was not the lowest on record: that distinction came in February 1993 when 80 condos changed owners. The condo record high of 526 sales was set in August 1988 with the next highest tally of 524 sales appearing in July 2004.
While many buyers think prices should be down dramatically, the reality is that resale prices are holding relatively steady in large measure because even with more properties listed for sale there still are not enough homes throughout the region to satisfy demand.
The median price of single-family homes sold during October fell a modest 3.3 percent to $590,000, down $20,000 from a year ago when the median was $610,000. It was the first time in six months that the median fell below the $600,000 mark. The record high of $655,000 was set in June.
The decline in the condo median price was steeper, falling 7.3 percent from $410,000 a year ago to this October’s median of $380,000. It was the lowest median reported since the record high of $415,000 of February 2006.
Home owners who do not have to sell and purchased prior to the recent peak in the market will weather this cycle. Even if they had to sell now, they still would reap a handsome profit, although not as much as a year ago.
A total of 7,730 properties were listed for sale at the end of October. That was up 13.8 percent from a year ago. Even with the increase, the current inventory is far below the record high of 14,976 active listings set in July 1992 when a recession swept the nation and Southern California’s economy was in the process of a total restructuring.
At the current pace of sales, the inventory represents a 16.0-month supply, the highest total since the early 1990s and an indicator of a pure buyers’ market.
The record high sales-to-inventory tally of 23 months was set in February 1993. A year ago it was 6.1-months. The record low of a 1.0-month sales to inventory total came in March 2004.
Real estate experts say the market is in balance, with neither buyer nor seller holding un upper hand in negotiations, with a 5- to 6-month sales to inventory ratio.
Santa Clarita Valley home sales off by 42%, resale prices down 4%
Single-family home sales during October in the Santa Clarita Valley fell 42.3 percent compared to the prior year, the Southland Regional Association of Realtors reported Wednesday, Nov. 28.
A total of 116 homes closed escrow, off 85 sales from the 201 transactions of October 2006.
However, homes sales were up 10.5 percent from September following what appears to be a pattern of a slight surge in sales as each year draws to a close and a record low sales total reported in September. It was just three years ago in June 2005 when the record high of 405 sales was reported.
Condominium sales were off 52.3 percent compared to the prior year. Forty-two condos changed owners, down from 88 transactions from a year ago October. The condo total was down 19.2 percent on a month-to-month basis. It was the lowest monthly total on record, beating the prior low of 43 condo sales set in January 1999. The record high of 204 sales was set in April 2003.
Buyer hesitation is based on continued negative reports from the lending industry. Some of the hesitation is unwarranted because the current turmoil hits some segments of the market differently than others.
The median price of single-family homes sold during October throughout the Santa Clarita Valley was $555,000, down 3.5 percent or $20,000 from the prior year. The record high of $643,000 was established in April 2006.
The condominium median price fell 16.2 percent to $310,000, off $60,000 from the $370,000 median of October 2006. The condo record high of $397,000 was set in January 2006.
There were 2,443 active listings throughout the Santa Clarita Valley at the end of October, up 1.6 percent from a year ago, but down 2.0 percent from this September.
At the current pace of sales the inventory represents a 15.5-month supply – a pure buyers’ market as compared to a balanced market that would have a 5- to 6-month supply. During the height of the sellers’ market the inventory frequently hovered below a 1-month supply.
If you need to buy a house, buy it and don’t try to time the market. There are incredible opportunities out there now, a wide selection and attractive financing available if you have what used to be the traditional requirements – a good credit history, documentation and a reasonable downpayment.
AV listings increased 13% from October to November
As of early November, the Antelope Valley had 5702 residential listings up from 4950 listings at the same time in October (an increase of 13%). Other figures usually found in this column, such as average sold price and market time, have not yet been published by the Greater Antelope Valley Association of REALTORS as of my deadline. Look for these figures as soon as they are available at http://changhomesnews.blogspot.com/.
San Fernando Valley home sales fall to record low as buyers wait for price declines that may never materialize
Home sales in the San Fernando Valley plunged during October as buyers waited to see what will happen in the home loan market and for resale prices to fall, although there is still no indication that prices will tumble nearly as much as buyers expect.
Single-family home sales throughout the San Fernando Valley during October plunged 54.1 percent compared to the prior year, the Southland Regional Association of Realtors reported on Wednesday, Nov. 28.
A total of 354 homes changed owners, off 417 sales from the 771 total reported in October 2006. Sales also declined on a month-to-month basis, down 2.2 percent. The 354 sales was the lowest total on record, surpassing the prior low of 362 sales set this September. The third lowest tally of 391 sales came in February 1991.
That compares to the record high of 1,648 home sales, which was set in August 1988. The closest the San Fernando Valley came to that record high during the most recent sellers’ boom market was 1,321 sales in June 2002.
Condominium sales fell 48.6 percent from the prior year with this October’s 128 transactions off 121 sales from the 249 sales of October 2006. Condo sales fell 17.4 percent on a month-to-month basis. The 128 sales was not the lowest on record: that distinction came in February 1993 when 80 condos changed owners. The condo record high of 526 sales was set in August 1988 with the next highest tally of 524 sales appearing in July 2004.
While many buyers think prices should be down dramatically, the reality is that resale prices are holding relatively steady in large measure because even with more properties listed for sale there still are not enough homes throughout the region to satisfy demand.
The median price of single-family homes sold during October fell a modest 3.3 percent to $590,000, down $20,000 from a year ago when the median was $610,000. It was the first time in six months that the median fell below the $600,000 mark. The record high of $655,000 was set in June.
The decline in the condo median price was steeper, falling 7.3 percent from $410,000 a year ago to this October’s median of $380,000. It was the lowest median reported since the record high of $415,000 of February 2006.
Home owners who do not have to sell and purchased prior to the recent peak in the market will weather this cycle. Even if they had to sell now, they still would reap a handsome profit, although not as much as a year ago.
A total of 7,730 properties were listed for sale at the end of October. That was up 13.8 percent from a year ago. Even with the increase, the current inventory is far below the record high of 14,976 active listings set in July 1992 when a recession swept the nation and Southern California’s economy was in the process of a total restructuring.
At the current pace of sales, the inventory represents a 16.0-month supply, the highest total since the early 1990s and an indicator of a pure buyers’ market.
The record high sales-to-inventory tally of 23 months was set in February 1993. A year ago it was 6.1-months. The record low of a 1.0-month sales to inventory total came in March 2004.
Real estate experts say the market is in balance, with neither buyer nor seller holding un upper hand in negotiations, with a 5- to 6-month sales to inventory ratio.
Santa Clarita Valley home sales off by 42%, resale prices down 4%
Single-family home sales during October in the Santa Clarita Valley fell 42.3 percent compared to the prior year, the Southland Regional Association of Realtors reported Wednesday, Nov. 28.
A total of 116 homes closed escrow, off 85 sales from the 201 transactions of October 2006.
However, homes sales were up 10.5 percent from September following what appears to be a pattern of a slight surge in sales as each year draws to a close and a record low sales total reported in September. It was just three years ago in June 2005 when the record high of 405 sales was reported.
Condominium sales were off 52.3 percent compared to the prior year. Forty-two condos changed owners, down from 88 transactions from a year ago October. The condo total was down 19.2 percent on a month-to-month basis. It was the lowest monthly total on record, beating the prior low of 43 condo sales set in January 1999. The record high of 204 sales was set in April 2003.
Buyer hesitation is based on continued negative reports from the lending industry. Some of the hesitation is unwarranted because the current turmoil hits some segments of the market differently than others.
The median price of single-family homes sold during October throughout the Santa Clarita Valley was $555,000, down 3.5 percent or $20,000 from the prior year. The record high of $643,000 was established in April 2006.
The condominium median price fell 16.2 percent to $310,000, off $60,000 from the $370,000 median of October 2006. The condo record high of $397,000 was set in January 2006.
There were 2,443 active listings throughout the Santa Clarita Valley at the end of October, up 1.6 percent from a year ago, but down 2.0 percent from this September.
At the current pace of sales the inventory represents a 15.5-month supply – a pure buyers’ market as compared to a balanced market that would have a 5- to 6-month supply. During the height of the sellers’ market the inventory frequently hovered below a 1-month supply.
If you need to buy a house, buy it and don’t try to time the market. There are incredible opportunities out there now, a wide selection and attractive financing available if you have what used to be the traditional requirements – a good credit history, documentation and a reasonable downpayment.
AV listings increased 13% from October to November
As of early November, the Antelope Valley had 5702 residential listings up from 4950 listings at the same time in October (an increase of 13%). Other figures usually found in this column, such as average sold price and market time, have not yet been published by the Greater Antelope Valley Association of REALTORS as of my deadline. Look for these figures as soon as they are available at http://changhomesnews.blogspot.com/.
FAQ: What is a Foreclosure?
You have no doubt heard in the news of all the properties around the United States “in foreclosure,” and how that is driving the current downturn in real estate. Foreclosure is a legal process in which the lender is able to take possession of the home in cases where the homeowner can no longer keep up with his mortgage payments.
Remember that foreclosure is a legal process, like probate or divorce. Generally there are 2 ways lenders can take control of a property: a judicial process is conducted through the court system while a non-judicial process is not. California allows both processes, but the judicial process is hardly used.
In California, the process starts with a Notice of Default (NOD) that is filed with the county recorder. This occurs when the borrower misses 3 monthly mortgage payments. During the time of these missed payments, the lender has undoubtedly attempted contact with the owner by mail and phone to negotiate payment methods. The lender would have also given the owner a Notice of Intent to Foreclosure, which gives a deadline to cure the missed payments. The NOD is an official document that is filed after the deadline in the Notice of Intent to Foreclosure has passed.
Once the NOD is filed, the trustee notifies the homeowner and all parties with interest in the title. A sale date is set 3 months after NOD. (I have documents emphasizing that it’s 3 months and not 90 days as erroneously printed in many public outlets). The lender publishes a Notice of Sale (NOS) in approved newspapers once a week for 3 consecutive weeks and mails the NOS to homeowner and all parties with interest in the title.
At the appointed sale date, a Trustee Sale is held where the home goes to public auction. If there is no bidders willing to post the minimum bid on the property, the home is given to the lender as a Real Estate Owned (REO) property.
Foreclosed homes also offer an opportunity for those buyers looking for homes for themselves or for investment. The earliest opportunity is before the home is foreclosed on – during the pre-foreclosure period. You might see these homes as “short-sale” properties as well (please view last month’s FAQ regarding short sales at http://changhomes1.blogspot.com/2007/11/faq-what-are-short-sales.html). At this stage, which lasts through the Notice of Default or Lis Pendens, the potential buyer should approach the owner/seller and offer to buy the property directly or through a real estate agent. Sellers are motivated as they do not wish to have any negative marks on their credit report and would rather “wash their hands” of the home. By paying off what is owed (or less than what is owed in a short-sale situation), the owner can avoid the rest of the foreclosure process.
At the Notice of Trustee Sale, the home will go to auction. Public auctions require buyers to pay in cash, and the buyer may not have enough time to research the title and the condition of the property to satisfaction beforehand. You may be able to contact the owner if you catch the announcement right away to see if you can buy the property, otherwise, contact the trustee for potential deals.
If a property is not sold at an auction (doesn’t reach minimum bid), the bank takes ownership of the property. These properties are called “Real Estate Owned,” or REO. Lenders are not in the business to manage homes, so they are likely to sell the home to recover some of the unpaid loan amount. So contact the lender to get these homes. There is no set timeframe within which the banks must sell their REOs; however, banks often want to get REOs off their books rapidly. As a result, many REOs sell quickly. The only exception is if there is a "redemption period" (as in California) for the owner to buy back the property after it is repossessed by the bank. State law dictates if there is any redemption period. The bank will typically wait until the end of any redemption period to sell the property.
Keep in mind that sometimes contacting the lender can be frustrating, as the main purpose of a lender is to loan money, not to sell property. So even though the bank may have a department that handles bank-owned property for sale, that department may be hard to track down. If you need assistance, contact me as I have some ways I can reach these hard-to-find decisionmakers.
The bank will clear title and perform repairs, but at this stage, the bank would have already set a price at which they would want to sell the property to recoup all their losses. Hence, it leaves little room for negotiation, but often the home is priced about 65% of how much was owed on the property initially.
Notice throughout this process that you may get a good deal on the property, but as more homes in the neighborhood undergo the same foreclosure process, the market price of all these homes will go down to potentially this “65%” mark. Even though a home may be an REO, it might be selling for the current market prices of those homes in the neighborhood.
Before you buy foreclosure homes, you need to research foreclosure data. A good site I’ve found is RealtyTrac.com, but of course, I encourage you to contact me for a complete evaluation of the market and to help you evaluate potential homes you seek.
Questions answered in this column were asked by my clients, past clients, or prospective buyers and sellers. The questions were answered when they were asked, and they were notified if the question is a candidate for the FAQ column. Questions are chosen based on interest to a wider audience, timeliness to the current market, and possibly other factors. Those whose questions are featured in this column get a gift card to their favorite store, restaurant, mall or movie theatre in the Tri-Valley area if they allow me to publish their name or initials and the city in which they live in this column. You can email your questions for a prompt response to changhomes@gmail.com.
Remember that foreclosure is a legal process, like probate or divorce. Generally there are 2 ways lenders can take control of a property: a judicial process is conducted through the court system while a non-judicial process is not. California allows both processes, but the judicial process is hardly used.
In California, the process starts with a Notice of Default (NOD) that is filed with the county recorder. This occurs when the borrower misses 3 monthly mortgage payments. During the time of these missed payments, the lender has undoubtedly attempted contact with the owner by mail and phone to negotiate payment methods. The lender would have also given the owner a Notice of Intent to Foreclosure, which gives a deadline to cure the missed payments. The NOD is an official document that is filed after the deadline in the Notice of Intent to Foreclosure has passed.
Once the NOD is filed, the trustee notifies the homeowner and all parties with interest in the title. A sale date is set 3 months after NOD. (I have documents emphasizing that it’s 3 months and not 90 days as erroneously printed in many public outlets). The lender publishes a Notice of Sale (NOS) in approved newspapers once a week for 3 consecutive weeks and mails the NOS to homeowner and all parties with interest in the title.
At the appointed sale date, a Trustee Sale is held where the home goes to public auction. If there is no bidders willing to post the minimum bid on the property, the home is given to the lender as a Real Estate Owned (REO) property.
Foreclosed homes also offer an opportunity for those buyers looking for homes for themselves or for investment. The earliest opportunity is before the home is foreclosed on – during the pre-foreclosure period. You might see these homes as “short-sale” properties as well (please view last month’s FAQ regarding short sales at http://changhomes1.blogspot.com/2007/11/faq-what-are-short-sales.html). At this stage, which lasts through the Notice of Default or Lis Pendens, the potential buyer should approach the owner/seller and offer to buy the property directly or through a real estate agent. Sellers are motivated as they do not wish to have any negative marks on their credit report and would rather “wash their hands” of the home. By paying off what is owed (or less than what is owed in a short-sale situation), the owner can avoid the rest of the foreclosure process.
At the Notice of Trustee Sale, the home will go to auction. Public auctions require buyers to pay in cash, and the buyer may not have enough time to research the title and the condition of the property to satisfaction beforehand. You may be able to contact the owner if you catch the announcement right away to see if you can buy the property, otherwise, contact the trustee for potential deals.
If a property is not sold at an auction (doesn’t reach minimum bid), the bank takes ownership of the property. These properties are called “Real Estate Owned,” or REO. Lenders are not in the business to manage homes, so they are likely to sell the home to recover some of the unpaid loan amount. So contact the lender to get these homes. There is no set timeframe within which the banks must sell their REOs; however, banks often want to get REOs off their books rapidly. As a result, many REOs sell quickly. The only exception is if there is a "redemption period" (as in California) for the owner to buy back the property after it is repossessed by the bank. State law dictates if there is any redemption period. The bank will typically wait until the end of any redemption period to sell the property.
Keep in mind that sometimes contacting the lender can be frustrating, as the main purpose of a lender is to loan money, not to sell property. So even though the bank may have a department that handles bank-owned property for sale, that department may be hard to track down. If you need assistance, contact me as I have some ways I can reach these hard-to-find decisionmakers.
The bank will clear title and perform repairs, but at this stage, the bank would have already set a price at which they would want to sell the property to recoup all their losses. Hence, it leaves little room for negotiation, but often the home is priced about 65% of how much was owed on the property initially.
Notice throughout this process that you may get a good deal on the property, but as more homes in the neighborhood undergo the same foreclosure process, the market price of all these homes will go down to potentially this “65%” mark. Even though a home may be an REO, it might be selling for the current market prices of those homes in the neighborhood.
Before you buy foreclosure homes, you need to research foreclosure data. A good site I’ve found is RealtyTrac.com, but of course, I encourage you to contact me for a complete evaluation of the market and to help you evaluate potential homes you seek.
Questions answered in this column were asked by my clients, past clients, or prospective buyers and sellers. The questions were answered when they were asked, and they were notified if the question is a candidate for the FAQ column. Questions are chosen based on interest to a wider audience, timeliness to the current market, and possibly other factors. Those whose questions are featured in this column get a gift card to their favorite store, restaurant, mall or movie theatre in the Tri-Valley area if they allow me to publish their name or initials and the city in which they live in this column. You can email your questions for a prompt response to changhomes@gmail.com.
Sunday, November 4, 2007
This Week’s Real Estate News: October 29 to November 4
Federal Reserve lowered Federal Funds Rate to 4.5%, citing concerns about weakness in the housing market. Statement also stated that it is also worried about inflation. 10/31/2007 (CNNmoney.com)
U.S. home prices down for 8th consecutive month; index of 10 large U.S. cties shows a price drop of 5% in August, the largest since 1991. 10/31/2007 (AP)
Foreclosure filings rise with more coming as interest rates jump on a record number of adjustable mortgages. 11/1/2007 (CNNmoney.com)
Mortgage rates fall to near a 6-month low –Fixed 30-year rate slips to 6.26% on weak consumer confidence and other economic worries, per Freddie Mac. 11/1/2007 (CNNmoney.com)
Mortgage applications surge as refinance volume drives 3.8% overall growth, according to the Mortgage Banker’s Association’s weekly application survey. 10/31/2007 (AP)
October federal jobs report is more than double of what was expected with a 166,000-job gain; unemployment remains steady at 4.7%. Some economists questioned the validity of gains in this report, which is subject to further revision. 11/2/2007 (CNNmoney.com)
Experts predict the wildfires in Southern California will further add to the region’s slowdown in housing sales, as buyers shy away from listings in and around burn areas. 11/2/2007 (Reuters)
Members of Congress applied more pressure on the Bush administration today to ramp up efforts to slow down foreclosure rates. 11/2/2007 (AP)
Home prices in Los Angeles and Orange counties saw steeper declines in August than most other major metropolitan areas. 10/31/2007 (LA Times)
Regulators and consumer advocates worry too many wildfire victims don’t have adequate insurance to rebuild. 11/1/2007 (USA Today)
U.S. Treasury Secretary Henry Paulson said Tuesday the U.S. economy is strong enough to overcome the housing downturn but added the recovery process could take longer than expected. 10/30/2007 (AP)
Mortgage lenders struggling to remain profitable in the wake of the mortgage meltdown are applying a heavy dose of marketing aimed at those with good credit and solid home equity. 10/29/2007 (LA Times)
Residential Construction declines 1.4% 11/1/2007 (CAR)
Consumer Confidence declined for the third straight month in October, indicating continued consumer skepticism about the economy, fueled largely by the housing and mortgage lending crisis. The Consumer Confidence Index now stands at 95.6, compared with 99.5 in September. 11/1/2007 (CAR)
Sources: California Association of REALTORS(R), Associated Press, LA Times, Reuters, CNNmoney.com, KNX-AM Los Angeles
U.S. home prices down for 8th consecutive month; index of 10 large U.S. cties shows a price drop of 5% in August, the largest since 1991. 10/31/2007 (AP)
Foreclosure filings rise with more coming as interest rates jump on a record number of adjustable mortgages. 11/1/2007 (CNNmoney.com)
Mortgage rates fall to near a 6-month low –Fixed 30-year rate slips to 6.26% on weak consumer confidence and other economic worries, per Freddie Mac. 11/1/2007 (CNNmoney.com)
Mortgage applications surge as refinance volume drives 3.8% overall growth, according to the Mortgage Banker’s Association’s weekly application survey. 10/31/2007 (AP)
October federal jobs report is more than double of what was expected with a 166,000-job gain; unemployment remains steady at 4.7%. Some economists questioned the validity of gains in this report, which is subject to further revision. 11/2/2007 (CNNmoney.com)
Experts predict the wildfires in Southern California will further add to the region’s slowdown in housing sales, as buyers shy away from listings in and around burn areas. 11/2/2007 (Reuters)
Members of Congress applied more pressure on the Bush administration today to ramp up efforts to slow down foreclosure rates. 11/2/2007 (AP)
Home prices in Los Angeles and Orange counties saw steeper declines in August than most other major metropolitan areas. 10/31/2007 (LA Times)
Regulators and consumer advocates worry too many wildfire victims don’t have adequate insurance to rebuild. 11/1/2007 (USA Today)
U.S. Treasury Secretary Henry Paulson said Tuesday the U.S. economy is strong enough to overcome the housing downturn but added the recovery process could take longer than expected. 10/30/2007 (AP)
Mortgage lenders struggling to remain profitable in the wake of the mortgage meltdown are applying a heavy dose of marketing aimed at those with good credit and solid home equity. 10/29/2007 (LA Times)
Residential Construction declines 1.4% 11/1/2007 (CAR)
Consumer Confidence declined for the third straight month in October, indicating continued consumer skepticism about the economy, fueled largely by the housing and mortgage lending crisis. The Consumer Confidence Index now stands at 95.6, compared with 99.5 in September. 11/1/2007 (CAR)
Sources: California Association of REALTORS(R), Associated Press, LA Times, Reuters, CNNmoney.com, KNX-AM Los Angeles
Tri-Valley Housing Market Summary
The following Housing Market Summaries were compiled from Southland Regional and Greater Antelope Valley Associations of REALTORS.
SFV Housing Market Summary
Despite incredible opportunities and more sellers willing to negotiate, sales of existing single-family homes during September hit their lowest monthly total ever while an increase in the inventory erased any lingering doubt that the local residential housing market has shifted in favor of buyers, the Southland Regional Association of Realtors reported on Thursday, Oct. 24.
A total of 362 single-family homes closed escrow last month, down 55.5 percent from a year ago when Realtors negotiated 814 sales.
The September total surpassed the prior low of 391 sales set in February 1991 when, unlike today’s relatively strong local economy, the state and the nation were beginning to experience profound economic woes, including the restructuring of the aerospace industry, which led to the loss of thousands of jobs.
While astute buyers are out hunting now for quality properties, many prospective buyers are missing an opportunity, frozen in place by uncertainty or gambling that prices will tumble if a rash of foreclosures materializes, even though in a worst-case scenario the number of bank-owned properties in the San Fernando Valley represents a small portion of a vast market.
Other buyers are locked out, at least temporarily, until help comes in the form of new lending rules from federal lawmakers and the lending industry loosens excessively tight qualifying standards enough so that people with steady jobs, decent credit and a modest downpayment are able to obtain affordable loans.
That was up 13.6 percent from a year ago, but the pace of new listings appears to be slowing – off 17.9 percent.
At the September rate of sales, the inventory represented a 14.4-month supply – the highest inventory to sales number reported since March 1993. The record high of a 23-month supply was set in February 1993, although it hovered in the double-digit range for three years before breaking into the 20s.
Because many of today's sales happen at higher price ranges while entry level buyers have difficulty qualifying for a loan, the median price of single-family homes sold during September increased 4.8 percent compared to a year ago to $623,700.
The median declined 3.3 percent from the figure reported this August, but it is still hovering not far below the record high of $655,000 set in June of this year.
The condominium median price of $390,000 was up 2.6 percent from a year ago and 0.3 percent better than this August. The condo record high of $415,000 was set in February 2006.
SCV Officially in a Buyer’s Market
Any doubt that the residential housing market in the Santa Clarita Valley has completed the transition from a sellers to a buyers' market was erased during September as a total of 105 single-family home sales closed escrow, off 51.8 percent from a year ago for the lowest monthly total on record, the Southland Regional Association of Realtors reported on Wednesday, Oct. 24.
The September tally was down 43.5 percent from this August, beating the prior record low of 151 sales set in February 1998.
Realtors also guided 52 condominiums sales last month in the Santa Clarita Valley, a decline of 52.3 percent from a year ago and 17.5 percent below this August. It was the second lowest tally on record with only the 51 condo sales reported in February 1998 coming in lower.
The current market cycle may run its course very quickly, which is why Gasinski and Link encourage prospective buyers to open negotiations now while market conditions are so clearly in their favor.
The single-family median price reported in September of $560,000 was down 4.3 percent from a year ago. The median price has been gradually declining since the record high of $643,000 was set in April of 2006.
The Southland Regional Association of Realtors also reported that the condominium median price during September at $370,000, down 3.9 percent from a year ago, but up 2.2 percent from this August. The condo record high of $397,000 came in January 2006.
The inventory hit 2,493 active listings during September, down 1.5 percent from September 2006 and off slightly from the August total. At the current pace of sales, the inventory represents a 15.9-month supply. At the peak of the sellers' market, the inventory frequently hovered at less than a 1-month supply while the supply broke into the 20-month plus supply during the national recession of the early 1990s.
A 5- to 6-month supply is believed to represent a balanced market where neither buyers nor sellers hold a negotiating advantage.
AV listings increased 12%, prices dropped 13% versus last October.
Residential listings increased 12% to 4950 listings, and the list price dropped 13% to just shy of 352k. 174 homes were sold in December with an average sold price of less than 302k. Average market time of 72 days. Currently, there are 5414 active and pending residential listings in the Antelope Valley. The average price of the 4950 active listings was just shy of $352k and 84 days on the market.
SFV Housing Market Summary
Despite incredible opportunities and more sellers willing to negotiate, sales of existing single-family homes during September hit their lowest monthly total ever while an increase in the inventory erased any lingering doubt that the local residential housing market has shifted in favor of buyers, the Southland Regional Association of Realtors reported on Thursday, Oct. 24.
A total of 362 single-family homes closed escrow last month, down 55.5 percent from a year ago when Realtors negotiated 814 sales.
The September total surpassed the prior low of 391 sales set in February 1991 when, unlike today’s relatively strong local economy, the state and the nation were beginning to experience profound economic woes, including the restructuring of the aerospace industry, which led to the loss of thousands of jobs.
While astute buyers are out hunting now for quality properties, many prospective buyers are missing an opportunity, frozen in place by uncertainty or gambling that prices will tumble if a rash of foreclosures materializes, even though in a worst-case scenario the number of bank-owned properties in the San Fernando Valley represents a small portion of a vast market.
Other buyers are locked out, at least temporarily, until help comes in the form of new lending rules from federal lawmakers and the lending industry loosens excessively tight qualifying standards enough so that people with steady jobs, decent credit and a modest downpayment are able to obtain affordable loans.
That was up 13.6 percent from a year ago, but the pace of new listings appears to be slowing – off 17.9 percent.
At the September rate of sales, the inventory represented a 14.4-month supply – the highest inventory to sales number reported since March 1993. The record high of a 23-month supply was set in February 1993, although it hovered in the double-digit range for three years before breaking into the 20s.
Because many of today's sales happen at higher price ranges while entry level buyers have difficulty qualifying for a loan, the median price of single-family homes sold during September increased 4.8 percent compared to a year ago to $623,700.
The median declined 3.3 percent from the figure reported this August, but it is still hovering not far below the record high of $655,000 set in June of this year.
The condominium median price of $390,000 was up 2.6 percent from a year ago and 0.3 percent better than this August. The condo record high of $415,000 was set in February 2006.
SCV Officially in a Buyer’s Market
Any doubt that the residential housing market in the Santa Clarita Valley has completed the transition from a sellers to a buyers' market was erased during September as a total of 105 single-family home sales closed escrow, off 51.8 percent from a year ago for the lowest monthly total on record, the Southland Regional Association of Realtors reported on Wednesday, Oct. 24.
The September tally was down 43.5 percent from this August, beating the prior record low of 151 sales set in February 1998.
Realtors also guided 52 condominiums sales last month in the Santa Clarita Valley, a decline of 52.3 percent from a year ago and 17.5 percent below this August. It was the second lowest tally on record with only the 51 condo sales reported in February 1998 coming in lower.
The current market cycle may run its course very quickly, which is why Gasinski and Link encourage prospective buyers to open negotiations now while market conditions are so clearly in their favor.
The single-family median price reported in September of $560,000 was down 4.3 percent from a year ago. The median price has been gradually declining since the record high of $643,000 was set in April of 2006.
The Southland Regional Association of Realtors also reported that the condominium median price during September at $370,000, down 3.9 percent from a year ago, but up 2.2 percent from this August. The condo record high of $397,000 came in January 2006.
The inventory hit 2,493 active listings during September, down 1.5 percent from September 2006 and off slightly from the August total. At the current pace of sales, the inventory represents a 15.9-month supply. At the peak of the sellers' market, the inventory frequently hovered at less than a 1-month supply while the supply broke into the 20-month plus supply during the national recession of the early 1990s.
A 5- to 6-month supply is believed to represent a balanced market where neither buyers nor sellers hold a negotiating advantage.
AV listings increased 12%, prices dropped 13% versus last October.
Residential listings increased 12% to 4950 listings, and the list price dropped 13% to just shy of 352k. 174 homes were sold in December with an average sold price of less than 302k. Average market time of 72 days. Currently, there are 5414 active and pending residential listings in the Antelope Valley. The average price of the 4950 active listings was just shy of $352k and 84 days on the market.
FAQ: What are Short Sales?
This entry has been removed, per request of sources. Please contact Mr. Chang at changhomes@gmail.com for information summaries regarding short sales and foreclosures.
Disclaimer: Mr. Chang has helped numerous families with purchasing and selling homes in a short sale or under foreclosure, but he is not an expert in law or taxes. Please consult your attorney, tax advisor, CPA or tax preparer for additional information regarding this topic.
Questions answered in this column were asked by my clients, past clients, or prospective buyers and sellers. The questions were answered when they were asked, and they were notified if the question is a candidate for the FAQ column. Questions are chosen based on interest to a wider audience, timeliness to the current market, and possibly other factors. Those whose questions are featured in this column get a gift card to their favorite store, restaurant, mall or movie theatre in the Tri-Valley area if they allow me to publish their name or initials and the city in which they live in this column. You can email your questions for a prompt response to changhomes@gmail.com.
Disclaimer: Mr. Chang has helped numerous families with purchasing and selling homes in a short sale or under foreclosure, but he is not an expert in law or taxes. Please consult your attorney, tax advisor, CPA or tax preparer for additional information regarding this topic.
Questions answered in this column were asked by my clients, past clients, or prospective buyers and sellers. The questions were answered when they were asked, and they were notified if the question is a candidate for the FAQ column. Questions are chosen based on interest to a wider audience, timeliness to the current market, and possibly other factors. Those whose questions are featured in this column get a gift card to their favorite store, restaurant, mall or movie theatre in the Tri-Valley area if they allow me to publish their name or initials and the city in which they live in this column. You can email your questions for a prompt response to changhomes@gmail.com.
Sunday, September 30, 2007
Can you believe it’s Fall already?! A personal note
I woke up one day this past week after the rains with the cool fall breeze rustling the trees in my yard. In one week, we’ve moved from sweltering-hot-turn-up-the-AC to long sleeves and finding the thicker comforter. Lots of people I know got ill during this transition – or maybe it’s allergies.
This month’s newsletter features a follow-up to President Bush’s announced initiatives in August to respond to the home mortgage crisis. The FAQ column answers an excellent question from a buyer I met at an open house in Stevenson Ranch. I’ve consolidated the housing market news to one article for all the 3 valleys I primarily serve, instead of having one article for each of the 3 areas.
In this time when we’re saving money, I’ve included an article on kitchen refinishing by painting cabinets and another on painting the outside of the home.
I continue to focus on my weekly news blog because in this time of transition, the most knowledgeable buyers and sellers are the ones who are able to take advantage of the current real estate market. You can view and subscribe to this blog at http://changhomesnews.blogspot.com/.
The “Over The Fence” newsletter PDF (http://www.homewarranty.com/pdfs/signup/27568-English.pdf) features having an eco-friendly Halloween, keeping Halloween safe for pets, pathway lighting and pumpkin recipes.
As my newsletter content grows, I’m putting more and more of the articles on my blog at http://changhomes1.blogspot.com/. One such article is the October 2007 Celebrations and Observances – which has been expanded to include special days of the month.
As always, all articles I have written in this newsletter are reprinted in easier-to-read format at http://changhomes1.blogspot.com/. A bonus article explains that in this market, home staging is more important than ever. The cost for staging can pay off in a higher selling price.
Stay warm, enjoy the pumpkin pies and please call me if you have questions or if I can be of service to you. I can be reached at 661-312-1232 or via changhomes@gmail.com.
This month’s newsletter features a follow-up to President Bush’s announced initiatives in August to respond to the home mortgage crisis. The FAQ column answers an excellent question from a buyer I met at an open house in Stevenson Ranch. I’ve consolidated the housing market news to one article for all the 3 valleys I primarily serve, instead of having one article for each of the 3 areas.
In this time when we’re saving money, I’ve included an article on kitchen refinishing by painting cabinets and another on painting the outside of the home.
I continue to focus on my weekly news blog because in this time of transition, the most knowledgeable buyers and sellers are the ones who are able to take advantage of the current real estate market. You can view and subscribe to this blog at http://changhomesnews.blogspot.com/.
The “Over The Fence” newsletter PDF (http://www.homewarranty.com/pdfs/signup/27568-English.pdf) features having an eco-friendly Halloween, keeping Halloween safe for pets, pathway lighting and pumpkin recipes.
As my newsletter content grows, I’m putting more and more of the articles on my blog at http://changhomes1.blogspot.com/. One such article is the October 2007 Celebrations and Observances – which has been expanded to include special days of the month.
As always, all articles I have written in this newsletter are reprinted in easier-to-read format at http://changhomes1.blogspot.com/. A bonus article explains that in this market, home staging is more important than ever. The cost for staging can pay off in a higher selling price.
Stay warm, enjoy the pumpkin pies and please call me if you have questions or if I can be of service to you. I can be reached at 661-312-1232 or via changhomes@gmail.com.
Passage of the “Expanding American Homeownership Act of 2007”
Legislation will reform FHA and help ease the fallout from mortgage market turmoil
Last newsletter, I mentioned initiatives proposed by President Bush to alleviate the current crisis in the home mortgage industry. One of those programs passed the U.S. House of Representatives on September 21.
H.R. 1852, the “Expanding American Homeownership Act of 2007,” was introduced by Congresswoman Maxine Waters (D-Calif.) and modernizes the FHA mortgage insurance program, providing American homeowners with safe, affordable mortgage alternatives that are fairly priced without resorting to teaser rates or negative amortization.
“An amendment by California Representatives Gary Miller (R-Calif.) and Dennis Cardoza (D-Calif.), and Barney Frank (D-Mass.) to H.R. 1852 increases the FHA loan limits to 125 percent of an area’s median home price, with a cap at $729,750. By contrast, the current FHA loan limit is only $362,790,” said California Association of REALTORS® President Colleen Badagliacco. “For high-cost states like California, this legislation is especially critical,” she said. “The median price of a home in California ranges from $841,660 in the San Francisco Bay Area to $709,720 in Orange County and $601,730 in San Diego.
“Passage of the ‘Expanding American Homeownership Act of 2007’ will give home buyers in high-cost areas like California an affordable mortgage alternative instead having to resort to significantly more expensive subprime loans,” she said. “The Frank/Miller/Cardoza amendment also will give the Secretary of Housing and Urban Development the flexibility needed to respond to changing market conditions.”
This legislation is now awaiting passage in the U.S. Senate before it goes to the President’s desk for an expected signature into law.
Last newsletter, I mentioned initiatives proposed by President Bush to alleviate the current crisis in the home mortgage industry. One of those programs passed the U.S. House of Representatives on September 21.
H.R. 1852, the “Expanding American Homeownership Act of 2007,” was introduced by Congresswoman Maxine Waters (D-Calif.) and modernizes the FHA mortgage insurance program, providing American homeowners with safe, affordable mortgage alternatives that are fairly priced without resorting to teaser rates or negative amortization.
“An amendment by California Representatives Gary Miller (R-Calif.) and Dennis Cardoza (D-Calif.), and Barney Frank (D-Mass.) to H.R. 1852 increases the FHA loan limits to 125 percent of an area’s median home price, with a cap at $729,750. By contrast, the current FHA loan limit is only $362,790,” said California Association of REALTORS® President Colleen Badagliacco. “For high-cost states like California, this legislation is especially critical,” she said. “The median price of a home in California ranges from $841,660 in the San Francisco Bay Area to $709,720 in Orange County and $601,730 in San Diego.
“Passage of the ‘Expanding American Homeownership Act of 2007’ will give home buyers in high-cost areas like California an affordable mortgage alternative instead having to resort to significantly more expensive subprime loans,” she said. “The Frank/Miller/Cardoza amendment also will give the Secretary of Housing and Urban Development the flexibility needed to respond to changing market conditions.”
This legislation is now awaiting passage in the U.S. Senate before it goes to the President’s desk for an expected signature into law.
Staging a Home is Now Vital!
This article is republished from the Southland Regional Association of REALTORS(R) website.
The house could be identical to dozens of others in the same neighborhood, yet prospective buyers wind up captivated by one particular home.
Why does this house sell faster and at a higher price than its twin just down the street? Why do buyers fall in love with this particular home?
An experienced real estate licensee can instantly spot the magic - staging.
It's up to the real estate professional to persuade home sellers to let them properly stage a house, to find perfection that captures a buyer's heart and imagination.
Staging is much more than merely sprucing up a house with the essentials, the basics of painting, cleaning and getting rid of clutter.
Staging requires all the skills of a top designer. It adds fine detail that appeals to all five senses. It creates moods. It makes a house inviting, appealing, and comfort-able. Staging paints a sensuous portrait.
A home that is priced right and staged properly typically will sell for more and in half the time it takes to move others.
Unlike just a short while ago when sellers did not have to do anything to sell a home, now every advantage is needed to make a house stand out from the competition. Real estate pros and savvy home sellers under-stand that staging is a vital piece of the modern residential housing marketing scheme.
The cost of staging a home can run from a few hundred dollars to tens of thousands of dollars depending on the location, size of the house and list price. Yet, whatever is spent, staging typically winds up being a short-term, high-yield investment that produces an equal or greater return within a matter of months.
Experienced real estate professionals know how much staging is enough. If the real estate licensee lacks the flair and expertise to stage a home on their own, then they need to find an accredited staging professional who can assist the home owner.
Once the decision to stage is made, the process can be completed within a matter of days.
Sometimes, all the current furnishings go into storage to be replaced by pieces that create themes for each space and accomplish specific goals:
The house could be identical to dozens of others in the same neighborhood, yet prospective buyers wind up captivated by one particular home.
Why does this house sell faster and at a higher price than its twin just down the street? Why do buyers fall in love with this particular home?
An experienced real estate licensee can instantly spot the magic - staging.
It's up to the real estate professional to persuade home sellers to let them properly stage a house, to find perfection that captures a buyer's heart and imagination.
Staging is much more than merely sprucing up a house with the essentials, the basics of painting, cleaning and getting rid of clutter.
Staging requires all the skills of a top designer. It adds fine detail that appeals to all five senses. It creates moods. It makes a house inviting, appealing, and comfort-able. Staging paints a sensuous portrait.
A home that is priced right and staged properly typically will sell for more and in half the time it takes to move others.
Unlike just a short while ago when sellers did not have to do anything to sell a home, now every advantage is needed to make a house stand out from the competition. Real estate pros and savvy home sellers under-stand that staging is a vital piece of the modern residential housing marketing scheme.
The cost of staging a home can run from a few hundred dollars to tens of thousands of dollars depending on the location, size of the house and list price. Yet, whatever is spent, staging typically winds up being a short-term, high-yield investment that produces an equal or greater return within a matter of months.
Experienced real estate professionals know how much staging is enough. If the real estate licensee lacks the flair and expertise to stage a home on their own, then they need to find an accredited staging professional who can assist the home owner.
Once the decision to stage is made, the process can be completed within a matter of days.
Sometimes, all the current furnishings go into storage to be replaced by pieces that create themes for each space and accomplish specific goals:
- Make living rooms light and fresh
- Highlight lots of space in closets
- Bring a five-star hotel quality to bathrooms
- Create bedrooms that are comfortable and inviting
- Make the kitchen the focal point of the house, a room that is functional, modern and fun.
- Furniture can be arranged into a vignette that evokes a particular feeling.
- Silk or satin swatches that create a feeling of softness and comfort can be draped over chairs, making a space warm and inviting.
- Fresh cut sprigs can be brought indoors to add freshness while hinting at a backyard's beauty.
FAQ: What is Mello-Roos?
Ever since I started publishing Frequently Asked Questions for Real Estate, the questions get better and better. I am pleased to announce that beginning with the next issue, I will provide a gift card to the person whose question I feature in this column. I think it’s well-deserved! As always, I will answer your questions when you ask them, and I will let you know if it is a candidate for this column. So, please, ask away! And email those questions to changhomes@gmail.com.
In short, Mello-Roos is a special tax is imposed on real property owners based on the size of their home to pay for infrastructure improvements such as streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection to newly developing areas.
Homeowners pay for Mello-Roos as part of their Los Angeles County property tax bill, which pays for the principal and interest on bonds that were taken out when the builder first built on the land for these infrastructure improvements.
Background
This method of financing came about in 1982 and was a direct result of the passage of Proposition 13 in 1978 in California, which limited the amount of revenue that could be raised to support new developments through traditional means. Only those new developments that choose to create a Community Facilities District impose this added tax burden on homeowners. Otherwise the infrastructure improvements are shouldered on the builder-developers of the subdivision.
Builders choose not to pay for these infrastructure improvements to keep new home prices competitive to homes built in already-established areas.
Bonds usually run for 20 to 40 years and are repaid by homeowners. This means for example that your "overall tax burden" when you purchase a home with Mello Roos financing can be 60%, 80%, or 100% higher than your basic property tax obligation would be if you purchased the same home without Mello Roos financing. Often, once bonds are paid, the Community Facilities District still bills a substantially lower amount to cover continued maintenance of the infrastructure improvements.
Amount
Typically, an adopted formula that relates to the size of the home (square footage or lot size) is used to determine the amount of an individual assessment. In general, the special taxes and assessments do not exceed 1% to 1.5% of the market value of new homes. Moreover, the total amount of all annual taxes (including property tax) usually does not exceed 2% to 2.5% of the home’s market value.
The amount can increase, but only at a maximum rate of 2% per year over a 25 years period. On the other hand, it’s possible that this tax will decrease, should state or other funds become available that could be used to reduce existing bond indebtedness, or be used to construct new facilities in lieu of additional bond sales.
If it’s part of the Property Tax Bill, is it tax-deductible?
Mello-Roos taxes cannot be deducted if they are assessed to fund local benefits and improvements that tend to increase the value of your property. Mello-Roos taxes may appear on annual county property tax bill with other deductible property taxes. That does not mean one can deduct the Mello-Roos taxes. One may only be able to deduct a portion of the total property tax shown on your bill.
To deduct local benefit taxes, one must be able to show the amount of the taxes that are for maintenance, repair, or interest. If one cannot show what part of the local benefit taxes are for these charges, one cannot deduct the taxes.
For tax advice, please consult your tax preparer or CPA.
School Debate in the Santa Clarita Valley Rooted in Mello-Roos
William S. Hart Union High School District School Board meeting in early February 2007 turned heated when plans were announced to bus incoming freshmen from Castaic to West Ranch High School beginning 2009 until a new Castaic high school is completed in 2011.
The February 9, 2007, Santa Clarita Signal reported this plan didn't go over well with Stevenson Ranch families who want West Ranch High School - a school their Mello-Roos developer fees help maintain - to have exclusively Stevenson Ranch students.
There were both shouts of support and "boos" from the audience when people expressed their concern that Castaic students were clogging up a school site that Stevenson Ranch residents had paid top dollar for.
Based on their home's square footage, Stevenson Ranch residents pay anywhere from $1,600 to $4,000 in Mello-Roos funds on top of their property taxes.
"When we moved to Stevenson Ranch, we paid for all these schools. We're paying for (West Ranch)," resident Karyn Malchus said. "The e-mails are flying. This is huge."
Through the course of the night, tensions between the Castaic-area residents and the Stevenson Ranch area residents grew more heated.
Sources: California Tax Data of Irvine, CA, Fidelity National Title Insurance Company, Santa Clarita Signal.
Disclaimer: Mr. Chang has helped numerous families with purchasing and selling homes in Mello-Roos districts, but he is not an expert in law or taxes. Please consult your attorney, tax advisor, CPA or tax preparer for additional information regarding this topic.
Questions answered in this column were asked by my clients, past clients, or prospective buyers and sellers. The questions were answered when they were asked, and they were notified if the question is a candidate for the FAQ column. Questions are chosen based on interest to a wider audience, timeliness to the current market, and possibly other factors. Those whose questions are featured in this column get a gift card to their favorite store, restaurant, mall or movie theatre in the Tri-Valley area if they allow me to publish their name or initials and the city in which they live in this column. You can email your questions for a prompt response to changhomes@gmail.com.
In short, Mello-Roos is a special tax is imposed on real property owners based on the size of their home to pay for infrastructure improvements such as streets, water, sewage and drainage, electricity, infrastructure, schools, parks and police protection to newly developing areas.
Homeowners pay for Mello-Roos as part of their Los Angeles County property tax bill, which pays for the principal and interest on bonds that were taken out when the builder first built on the land for these infrastructure improvements.
Background
This method of financing came about in 1982 and was a direct result of the passage of Proposition 13 in 1978 in California, which limited the amount of revenue that could be raised to support new developments through traditional means. Only those new developments that choose to create a Community Facilities District impose this added tax burden on homeowners. Otherwise the infrastructure improvements are shouldered on the builder-developers of the subdivision.
Builders choose not to pay for these infrastructure improvements to keep new home prices competitive to homes built in already-established areas.
Bonds usually run for 20 to 40 years and are repaid by homeowners. This means for example that your "overall tax burden" when you purchase a home with Mello Roos financing can be 60%, 80%, or 100% higher than your basic property tax obligation would be if you purchased the same home without Mello Roos financing. Often, once bonds are paid, the Community Facilities District still bills a substantially lower amount to cover continued maintenance of the infrastructure improvements.
Amount
Typically, an adopted formula that relates to the size of the home (square footage or lot size) is used to determine the amount of an individual assessment. In general, the special taxes and assessments do not exceed 1% to 1.5% of the market value of new homes. Moreover, the total amount of all annual taxes (including property tax) usually does not exceed 2% to 2.5% of the home’s market value.
The amount can increase, but only at a maximum rate of 2% per year over a 25 years period. On the other hand, it’s possible that this tax will decrease, should state or other funds become available that could be used to reduce existing bond indebtedness, or be used to construct new facilities in lieu of additional bond sales.
If it’s part of the Property Tax Bill, is it tax-deductible?
Mello-Roos taxes cannot be deducted if they are assessed to fund local benefits and improvements that tend to increase the value of your property. Mello-Roos taxes may appear on annual county property tax bill with other deductible property taxes. That does not mean one can deduct the Mello-Roos taxes. One may only be able to deduct a portion of the total property tax shown on your bill.
To deduct local benefit taxes, one must be able to show the amount of the taxes that are for maintenance, repair, or interest. If one cannot show what part of the local benefit taxes are for these charges, one cannot deduct the taxes.
For tax advice, please consult your tax preparer or CPA.
School Debate in the Santa Clarita Valley Rooted in Mello-Roos
William S. Hart Union High School District School Board meeting in early February 2007 turned heated when plans were announced to bus incoming freshmen from Castaic to West Ranch High School beginning 2009 until a new Castaic high school is completed in 2011.
The February 9, 2007, Santa Clarita Signal reported this plan didn't go over well with Stevenson Ranch families who want West Ranch High School - a school their Mello-Roos developer fees help maintain - to have exclusively Stevenson Ranch students.
There were both shouts of support and "boos" from the audience when people expressed their concern that Castaic students were clogging up a school site that Stevenson Ranch residents had paid top dollar for.
Based on their home's square footage, Stevenson Ranch residents pay anywhere from $1,600 to $4,000 in Mello-Roos funds on top of their property taxes.
"When we moved to Stevenson Ranch, we paid for all these schools. We're paying for (West Ranch)," resident Karyn Malchus said. "The e-mails are flying. This is huge."
Through the course of the night, tensions between the Castaic-area residents and the Stevenson Ranch area residents grew more heated.
Sources: California Tax Data of Irvine, CA, Fidelity National Title Insurance Company, Santa Clarita Signal.
Disclaimer: Mr. Chang has helped numerous families with purchasing and selling homes in Mello-Roos districts, but he is not an expert in law or taxes. Please consult your attorney, tax advisor, CPA or tax preparer for additional information regarding this topic.
Questions answered in this column were asked by my clients, past clients, or prospective buyers and sellers. The questions were answered when they were asked, and they were notified if the question is a candidate for the FAQ column. Questions are chosen based on interest to a wider audience, timeliness to the current market, and possibly other factors. Those whose questions are featured in this column get a gift card to their favorite store, restaurant, mall or movie theatre in the Tri-Valley area if they allow me to publish their name or initials and the city in which they live in this column. You can email your questions for a prompt response to changhomes@gmail.com.
Housing Market at a Glance for the SFV, SCV, and AV
I expect new data to be released this upcoming week – please check my news blog at http://changhomesnews.blogspot.com/ for the latest once it’s released.
San Fernando Valley Home Sales Down 24% during July; median price of $630,000 up 4%
Ongoing turmoil within the home lending industry, tighter qualifying standards for home loans and the negative psychological impact both have on prospective home buyers squeezed the single-family home resale market in the San Fernando Valley during July, the Southland Regional Association of Realtors reported recently.
A total of 617 single-family homes changed owners during July, down 23.7 percent from the 809 sales of a year ago and 10.6 percent lower than the June tally.
Reflecting more activity in higher price ranges, the single-family median price of $630,000 was up 3.8 percent in July compared to a year ago. However, it was off 3.8 percent from the record-high of $655,000 that was set this June.
Realtors also assisted in the sale last month of 276 condominiums. That total was down 12.9 percent from a year ago, but up 12.7 percent from the June total.
The median price of the 276 condos that changed owners last month was $407,500, up 1.9 percent from a year ago and from the June 2007 figure. The condo median has been hovering around the $400,000 market since the record high of $415,000 was set in February 2006.
Reports of problems in the relatively small so-called sub-prime sector of the home loan industry has the biggest impact on first-time home buyers. The sub-prime market catered to buyers with a weak or flawed credit history and limited income.
Even some buyers with good credit and money for a down payment are sitting on the sidelines, hesitant to jump into the market because of the negative publicity and unfounded fears that prices may drop.
“Prices in the San Fernando Valley are unlikely to fall much,” Wayne Chang, REALTOR® with RE/MAX of Valencia said.
Instead, Chang said, the Valley’s established communities and mature, vibrant economy suggest it will weather this market readjustment with little impact on resale price.
A total of 7,195 properties were listed on the Association’s Multiple Listing Service, up 12.8 percent from a year ago and 5.4 percent higher than the total reported this June.
At the current pace of sales, the inventory represents an 8.6-month supply, slightly higher than the 5- to 6-month inventory that represents a balanced market. During the height of the sellers’ market, the inventory frequently hovered at less than a 1-month supply.
Santa Clarita Valley home sales down 18%; Median price of $570,000 off 5.8%
Realtors negotiated the sale of 194 single-family homes in the Santa Clarita Valley during July, the Southland Regional Association of Realtors reported recently.
That total was down 18.1 percent from a year ago and 5.8 percent below the June tally. “Some prospective home buyers are sitting on the sidelines because they are unsure of where the market is going,” said Wayne W. Chang, REALTOR® with RE/MAX of Valencia.
“With the continuing changes in the mortgage industry, these buyers may find themselves priced out of the market by waiting on the sidelines now,” Chang said.
The median price of the single-family homes sold last month was $570,000, down 5.8 percent from a year. The median has beenhovering around the $600,000 mark since the record high of $640,000 was set in April of 2006.
Realtors also negotiated 83 condominiums during July. That figure was down 32.0 percent from a year ago but up 16.9 percent from this June.
A total of 286 properties were open escrow – a measure of future activity – at the end of July. That was down 18.3 percent from a year ago July and off 2.1 percent on a month-to-month basis. Both numbers are better than what has been reporting recently, suggesting that the Santa Clarita Valley housing market is beginning to level off.
“The local market is in the doldrums right now,” said Jim Link, the Association’s executive vice president. “Buyers who are unfamiliar with Santa Clarita are hesitant to jump in until they can feel the wind blowing in specific direction. Yet, by then, they may have missed great opportunities.
A total of 2,358 properties were listed for sale at the end of July. That was down 5.4 percent from a year ago and up only 1.6 percent from the total reported at the end of June of this year.
At the current pace of sales, the inventory represents an 8.5-month supply, considerably improved from the less than 1-month supply that was common during the recent sellers’ boom, yet only slightly above the 5- to 6-month supply regarded by industry experts as the sign of a balanced market.
Antelope Valley Summary
The AV continues to be a buyer’s market. As of early August, the latest that data was available for Antelope Valley residential inventory, there was a total of 5902 homes on the market.
Additional data available September 7, 2007, shows the number of residential listings rose 13% in August while prices dropped 12% in the Antelope Valley region.
Number of units sold was down 62% comparing August '07 to August '06, and sales prices were down 13% comparing August '07 to August '06.
~~
Please check my news blog at http://changhomesnews.blogspot.com/ for the latest market figures once they are released the first week of the month. If you have any questions, please contact changhomes@gmail.com.
San Fernando Valley Home Sales Down 24% during July; median price of $630,000 up 4%
Ongoing turmoil within the home lending industry, tighter qualifying standards for home loans and the negative psychological impact both have on prospective home buyers squeezed the single-family home resale market in the San Fernando Valley during July, the Southland Regional Association of Realtors reported recently.
A total of 617 single-family homes changed owners during July, down 23.7 percent from the 809 sales of a year ago and 10.6 percent lower than the June tally.
Reflecting more activity in higher price ranges, the single-family median price of $630,000 was up 3.8 percent in July compared to a year ago. However, it was off 3.8 percent from the record-high of $655,000 that was set this June.
Realtors also assisted in the sale last month of 276 condominiums. That total was down 12.9 percent from a year ago, but up 12.7 percent from the June total.
The median price of the 276 condos that changed owners last month was $407,500, up 1.9 percent from a year ago and from the June 2007 figure. The condo median has been hovering around the $400,000 market since the record high of $415,000 was set in February 2006.
Reports of problems in the relatively small so-called sub-prime sector of the home loan industry has the biggest impact on first-time home buyers. The sub-prime market catered to buyers with a weak or flawed credit history and limited income.
Even some buyers with good credit and money for a down payment are sitting on the sidelines, hesitant to jump into the market because of the negative publicity and unfounded fears that prices may drop.
“Prices in the San Fernando Valley are unlikely to fall much,” Wayne Chang, REALTOR® with RE/MAX of Valencia said.
Instead, Chang said, the Valley’s established communities and mature, vibrant economy suggest it will weather this market readjustment with little impact on resale price.
A total of 7,195 properties were listed on the Association’s Multiple Listing Service, up 12.8 percent from a year ago and 5.4 percent higher than the total reported this June.
At the current pace of sales, the inventory represents an 8.6-month supply, slightly higher than the 5- to 6-month inventory that represents a balanced market. During the height of the sellers’ market, the inventory frequently hovered at less than a 1-month supply.
Santa Clarita Valley home sales down 18%; Median price of $570,000 off 5.8%
Realtors negotiated the sale of 194 single-family homes in the Santa Clarita Valley during July, the Southland Regional Association of Realtors reported recently.
That total was down 18.1 percent from a year ago and 5.8 percent below the June tally. “Some prospective home buyers are sitting on the sidelines because they are unsure of where the market is going,” said Wayne W. Chang, REALTOR® with RE/MAX of Valencia.
“With the continuing changes in the mortgage industry, these buyers may find themselves priced out of the market by waiting on the sidelines now,” Chang said.
The median price of the single-family homes sold last month was $570,000, down 5.8 percent from a year. The median has beenhovering around the $600,000 mark since the record high of $640,000 was set in April of 2006.
Realtors also negotiated 83 condominiums during July. That figure was down 32.0 percent from a year ago but up 16.9 percent from this June.
A total of 286 properties were open escrow – a measure of future activity – at the end of July. That was down 18.3 percent from a year ago July and off 2.1 percent on a month-to-month basis. Both numbers are better than what has been reporting recently, suggesting that the Santa Clarita Valley housing market is beginning to level off.
“The local market is in the doldrums right now,” said Jim Link, the Association’s executive vice president. “Buyers who are unfamiliar with Santa Clarita are hesitant to jump in until they can feel the wind blowing in specific direction. Yet, by then, they may have missed great opportunities.
A total of 2,358 properties were listed for sale at the end of July. That was down 5.4 percent from a year ago and up only 1.6 percent from the total reported at the end of June of this year.
At the current pace of sales, the inventory represents an 8.5-month supply, considerably improved from the less than 1-month supply that was common during the recent sellers’ boom, yet only slightly above the 5- to 6-month supply regarded by industry experts as the sign of a balanced market.
Antelope Valley Summary
The AV continues to be a buyer’s market. As of early August, the latest that data was available for Antelope Valley residential inventory, there was a total of 5902 homes on the market.
Additional data available September 7, 2007, shows the number of residential listings rose 13% in August while prices dropped 12% in the Antelope Valley region.
Number of units sold was down 62% comparing August '07 to August '06, and sales prices were down 13% comparing August '07 to August '06.
~~
Please check my news blog at http://changhomesnews.blogspot.com/ for the latest market figures once they are released the first week of the month. If you have any questions, please contact changhomes@gmail.com.
October 2007 Celebrations and Observances
Month Long Observances
Adopt-a-Shelter-Animal Month
Computer Learning Month
Family History MonthCheck out my page for this special day!
National Apple Month
National Clock Month
National Dessert Month
National Pizza MonthCheck out my page for this special day!
National Popcorn Popping MonthCheck out my page for this special day!
National Roller Skating Month
Polish American History Month
National Stamp Collecting Month
Week Long Observances
1st Week - Fire Prevention Week
2nd Week - Teen Read Week
October 1st
Child Health Day
Homemade Cookies Day
World Vegetarian Day
October 2nd
Name Your Car Day
Peanuts Comic Strip First PublishedIn 1950.
October 3rd
Captain Kangaroo DayThe show first aired on this day in 1955.
SOS EstablishedDesignated as international distress code in 1906.
October 4th
National Golf Day
Sputnik I LaunchedThe first space vehicle - launched in 1957. Check out my page for this special day!
October 5th
Ray Kroc's BirthdayFounder of McDonalds. Born in 1902.
World Teacher Day
October 6th
Thomas Edison Shows 1st Motion PictureIn 1889.
October 7th
American Bandstand PremieredIn 1957.
October 8th
Columbus Day
Indigenous People's Day
J. Frank Duryea's BirthdayBorn in 1869. His brother, Charles, and him built and oprated the first automobile in the US. He also won America's first automobile race.
Thanksgiving Day in Canada
October 9th
First Two-Way Telephone ConversationIn 1876.
Leif Ericson Day
Moldy Cheese Day
The Count's BirthdaySesame Street Character.
October 10th
Henry Cavendish's BirthdayBorn in England in 1731.
October 11th
Eleanor Roosevelt's BirthdayBorn in born 1884.
First Steam-Powered Ferryboat Begins OperationName the "Juliana", began operation in 1811.
October 12th
Día de la RazaCelebrate in Mexico.
Farmer's Day
October 13th
First Aerial Photo in USTaken from a balloon in Boston in 1860.
Margaret Thatcher's BirthdayBorn in 1925.
October 14th
Grover's BirthdaySesame Street Character.
October 15th
National Grouch Day
National Poetry Day
October 16th
Boss's Day
Dictionary Day
World Food DayCheck out my page for this special day!
October 17th
Black Poetry DayHonoring the birthday of Jupiter Hammon. He was the first American black to publish his poetry.
October 18th
Alaska DayThe anniversary of the transfer of the territory and the raising of the US. flag at Sitka on this day in 1867.
Little Orphan Annie's BirthdayComic strip character, in 1922.
Puerto Rico Became U.S. ColonyIn 1898.
October 19th
Star Spangled Banner First SungIn 1814.
Thomas Edison Demonstrated Electric LightSuccessfully in 1879.
October 20th
Mickey Mantle's BirthdayBorn on this day in 1931 in Spavinaw, Oklahoma.
Monster Mash DayOn this day in 1962 the Monster mash, by Bobby "Boris" Picket and the Crypt Kickers, reached number 1 in the music charts and stayed there for 2 weeks!.
Sweetest DayThird Saturday in October.
October 21st
Guggenheim Museum OpensThe Solomon R. Guggenheim Museum of modern and contemporary art opened in New York City on October 21, 1959.
Mother-in-Law's Day
October 22nd
National Nut Day
October 23rd
Edison Pele's BirthdayBrazilian soccer player, born in 1940.
October 24th
Betty Lou's BirthdaySesame Street Character.
National Bologna Day
United Nations Day
October 25th
National Denim Day
Pablo Picasso's BirthdayBorn in Spain in 1881.
October 26th
Hilary Rodham Clinton's BirthdayBorn in 1947.
International Red Cross OrganizedIn Geneva, Switzerland in 1863.
October 27th
Theodore Roosevelt's BirthdayBorn in 1858.
October 28th
Plush Animal Lover's Day
Statue of Liberty's Birthday
October 29th
National Organization of Women FoundedIn 1966.
October 30th
John Adams' BirthdayIn 1735.
October 31st
Halloween
Juliette Gordon Low's BirthdayBorn in 1860, she was the woman who the started Girl Scouting in the United States in 1912.
Courtesy: About.com Family Crafts
Adopt-a-Shelter-Animal Month
Computer Learning Month
Family History MonthCheck out my page for this special day!
National Apple Month
National Clock Month
National Dessert Month
National Pizza MonthCheck out my page for this special day!
National Popcorn Popping MonthCheck out my page for this special day!
National Roller Skating Month
Polish American History Month
National Stamp Collecting Month
Week Long Observances
1st Week - Fire Prevention Week
2nd Week - Teen Read Week
October 1st
Child Health Day
Homemade Cookies Day
World Vegetarian Day
October 2nd
Name Your Car Day
Peanuts Comic Strip First PublishedIn 1950.
October 3rd
Captain Kangaroo DayThe show first aired on this day in 1955.
SOS EstablishedDesignated as international distress code in 1906.
October 4th
National Golf Day
Sputnik I LaunchedThe first space vehicle - launched in 1957. Check out my page for this special day!
October 5th
Ray Kroc's BirthdayFounder of McDonalds. Born in 1902.
World Teacher Day
October 6th
Thomas Edison Shows 1st Motion PictureIn 1889.
October 7th
American Bandstand PremieredIn 1957.
October 8th
Columbus Day
Indigenous People's Day
J. Frank Duryea's BirthdayBorn in 1869. His brother, Charles, and him built and oprated the first automobile in the US. He also won America's first automobile race.
Thanksgiving Day in Canada
October 9th
First Two-Way Telephone ConversationIn 1876.
Leif Ericson Day
Moldy Cheese Day
The Count's BirthdaySesame Street Character.
October 10th
Henry Cavendish's BirthdayBorn in England in 1731.
October 11th
Eleanor Roosevelt's BirthdayBorn in born 1884.
First Steam-Powered Ferryboat Begins OperationName the "Juliana", began operation in 1811.
October 12th
Día de la RazaCelebrate in Mexico.
Farmer's Day
October 13th
First Aerial Photo in USTaken from a balloon in Boston in 1860.
Margaret Thatcher's BirthdayBorn in 1925.
October 14th
Grover's BirthdaySesame Street Character.
October 15th
National Grouch Day
National Poetry Day
October 16th
Boss's Day
Dictionary Day
World Food DayCheck out my page for this special day!
October 17th
Black Poetry DayHonoring the birthday of Jupiter Hammon. He was the first American black to publish his poetry.
October 18th
Alaska DayThe anniversary of the transfer of the territory and the raising of the US. flag at Sitka on this day in 1867.
Little Orphan Annie's BirthdayComic strip character, in 1922.
Puerto Rico Became U.S. ColonyIn 1898.
October 19th
Star Spangled Banner First SungIn 1814.
Thomas Edison Demonstrated Electric LightSuccessfully in 1879.
October 20th
Mickey Mantle's BirthdayBorn on this day in 1931 in Spavinaw, Oklahoma.
Monster Mash DayOn this day in 1962 the Monster mash, by Bobby "Boris" Picket and the Crypt Kickers, reached number 1 in the music charts and stayed there for 2 weeks!.
Sweetest DayThird Saturday in October.
October 21st
Guggenheim Museum OpensThe Solomon R. Guggenheim Museum of modern and contemporary art opened in New York City on October 21, 1959.
Mother-in-Law's Day
October 22nd
National Nut Day
October 23rd
Edison Pele's BirthdayBrazilian soccer player, born in 1940.
October 24th
Betty Lou's BirthdaySesame Street Character.
National Bologna Day
United Nations Day
October 25th
National Denim Day
Pablo Picasso's BirthdayBorn in Spain in 1881.
October 26th
Hilary Rodham Clinton's BirthdayBorn in 1947.
International Red Cross OrganizedIn Geneva, Switzerland in 1863.
October 27th
Theodore Roosevelt's BirthdayBorn in 1858.
October 28th
Plush Animal Lover's Day
Statue of Liberty's Birthday
October 29th
National Organization of Women FoundedIn 1966.
October 30th
John Adams' BirthdayIn 1735.
October 31st
Halloween
Juliette Gordon Low's BirthdayBorn in 1860, she was the woman who the started Girl Scouting in the United States in 1912.
Courtesy: About.com Family Crafts
News Blog Attracts Attention at http://changhomesnews.blogspot.com
This week’s news blog features excerpts from the Associated Press, the LA Times and CNN on reports that new solar-powered homes are beginning to outsell traditionally-wired homes in the Shouthland, national housing and mortgage application trends continue to point downward and 2 non-profit resources are deluged with calls seeking help to avoid foreclosures. For details, point your web browser to http://changhomesnews.blogspot.com/. You can easily subscribe to its weekly reports so you stay current on the financial and real estate news that can affect home purchases and sales in the Tri-Valley area.
Sunday, September 2, 2007
Antelope Valley Home Stats
A quick summary based on the current information available as of publishing date:
The current number of active residential listings in the Greater Antelope Valley Association of REALTORS® (GAVAR) region increased 34% over last August 2006. There are currently over 5300 active residential listings with an average list price of $375,247.
August 2006 stats showed 4022 residential active listings with an average value of nearly $409,500.
Month-to-month, home prices decreased 7% over last year and the number of homes that sold were down 57%.
If you wish further details, please email me at changhomes@gmail.com.
The current number of active residential listings in the Greater Antelope Valley Association of REALTORS® (GAVAR) region increased 34% over last August 2006. There are currently over 5300 active residential listings with an average list price of $375,247.
August 2006 stats showed 4022 residential active listings with an average value of nearly $409,500.
Month-to-month, home prices decreased 7% over last year and the number of homes that sold were down 57%.
If you wish further details, please email me at changhomes@gmail.com.
Housing Market at a Glance: San Fernando Valley
Home sales off 25%; Median price hits record high $655,000
Despite tighter loan standards by mortgage lenders, a total of 690 single-family homes and 245 condominiums closed escrow during June in the San Fernando Valley, the Southland Regional Association of Realtors reported on Thursday, July 26. The August report is scheduled to be distributed in the first two weeks of September.
The single-family home tally was down 24.9 percent from a year ago, but up 9.7 percent from May 2007. Condominium sales of 245 units fell 22.5 percent from a year ago and were off by 2.0 percent on a month-to-month basis.
“The California and U.S. economies remain strong and continue to expand which gives the housing market a chance to readjust to a more deliberate pace of home sales,” said Winnie Davis, president of the Southland Regional Association of Realtors.
“There are still plenty of young couples who would like to buy a home, but tougher loan qualifying standards are slowing down the process and discouraging some prospective buyers,” Davis said. “That’s too bad, because there are more opportunities out there than at any point in the last four years.”
There were 6,826 active listings at the end of June, up 7.1 percent from June 2006.The record high inventory of 14,976 was set in July 1992 – which was a 17.2 month supply at the then current pace of sales. However, during the depths of the recession of the 1990s, the inventory at the then current pace of sales soared to a record high of 23.0 months.
At the current pace of sales, the today’s inventory represents a 7.3-month supply, just above the 5- to 6-month inventory which indicates a balanced market. The inventory has been climbing steadily since it hit bottom with a 1-month supply in March 2004, the height of the recent boom market.
“Although sales are slower than they had been and inventory is increasing, home prices continue to rise, but at a slower pace than they had been,” says Wayne Chang, a REALTOR® with RE/MAX of Valencia.
“The residential housing market statewide is stuck in the doldrums as prospective buyers sit on the sidelines trying to guess which way prices will go,” said Jim Link, the Association’s executive vice president. “Yet prices show no signs of falling dramatically and even if they did, any price gain might well be off set by rising interest rates on home loans.”
The median price of the 690 homes sold during June went to a record high of $655,000, up 4.8 percent over a year ago nearly 1 percent higher than the prior record of $650,000 set this July. Part of the reason the median price is inching higher is due to less activity in entry level priced homes and ongoing activity in mid-price range homes. The median price has been climbing steadily since it hit the bottom of $155,000 in November 1995.
The condominium median of $399,900 was up 1.2 percent from a year ago and 3.3 percent ahead of the May 2007 median price. The record high condo median price of $415,000 was set in February 2006.
Courtesy: Southland Regional Association of REALTORS(R)Housing Market at a Glance: Santa Clarita Valley
Santa Clarita Valley home sales down 19% from a year ago, but rise 15% from May
Realtors sold a total of 206 single-family homes in the Santa Clarita Valley during June, down 18.6 percent from a year ago, but up 15.1 percent from the tally of this May when 179 homes closed escrow, the Southland Regional Association of Realtors reported Thursday, July 26. The August report is scheduled to be distributed in the first two weeks of September.
Members of the Association also sold 71 condominiums, down 39.2 percent from a year ago and off 21.1 percent from this May.
"Today's buyers understand that this market, while still going through an adjustment phase, is not like the 1990s when the bottom fell out," said Larry Gasinski, president of the Association's Santa Clarita Valley Division. "The economy is strong and expanding, the selection of homes for sale is the best in years, and sellers finally are willing to negotiate and compete for qualified buyers.
"No doubt, qualifying for a home loan is more difficult now than just a short while ago, especially for people interested in buying an entry level priced home, and particularly if they have a flawed credit history," Gasinski said.
"Yet most eventually wind up with a loan and a new home," he said, "which is something that cannot happen to people waiting and hoping to time the market perfectly."
The median price of the single-family homes sold last month was $605,000, down 0.8 percent from a year ago and off by 1.6 percent from this May. The all-time record of $643,000 was set in April of 2006.
The median price of condominiums sold during June was off 1.3 percent from a year ago to $370,000. However, the condo median was up 4.2 percent from this May.
"First-time buyers continue to bear the brunt of the tough new lending standards," said Jim Link, the Association's executive vice president. "Yet properly priced homes are still selling and loans are still being issued."
Pending escrows - a measure of future resale activity - decreased 23.6 percent compared to June 2006 to a total of 292 open escrows. However, pending escrows increased on a month-to-month basis - rising 2.5 percent.
There was a total of 2,320 active listings at the end of June, down 5.5 percent from a year ago.
At the current pace of sales, the inventory represents an 8.4-month supply at the current pace of sales, only slightly higher than the 5- to 6-month inventory regarded as a balanced market.
Courtesy of the Southland Regional Association of REALTORS(R)
Realtors sold a total of 206 single-family homes in the Santa Clarita Valley during June, down 18.6 percent from a year ago, but up 15.1 percent from the tally of this May when 179 homes closed escrow, the Southland Regional Association of Realtors reported Thursday, July 26. The August report is scheduled to be distributed in the first two weeks of September.
Members of the Association also sold 71 condominiums, down 39.2 percent from a year ago and off 21.1 percent from this May.
"Today's buyers understand that this market, while still going through an adjustment phase, is not like the 1990s when the bottom fell out," said Larry Gasinski, president of the Association's Santa Clarita Valley Division. "The economy is strong and expanding, the selection of homes for sale is the best in years, and sellers finally are willing to negotiate and compete for qualified buyers.
"No doubt, qualifying for a home loan is more difficult now than just a short while ago, especially for people interested in buying an entry level priced home, and particularly if they have a flawed credit history," Gasinski said.
"Yet most eventually wind up with a loan and a new home," he said, "which is something that cannot happen to people waiting and hoping to time the market perfectly."
The median price of the single-family homes sold last month was $605,000, down 0.8 percent from a year ago and off by 1.6 percent from this May. The all-time record of $643,000 was set in April of 2006.
The median price of condominiums sold during June was off 1.3 percent from a year ago to $370,000. However, the condo median was up 4.2 percent from this May.
"First-time buyers continue to bear the brunt of the tough new lending standards," said Jim Link, the Association's executive vice president. "Yet properly priced homes are still selling and loans are still being issued."
Pending escrows - a measure of future resale activity - decreased 23.6 percent compared to June 2006 to a total of 292 open escrows. However, pending escrows increased on a month-to-month basis - rising 2.5 percent.
There was a total of 2,320 active listings at the end of June, down 5.5 percent from a year ago.
At the current pace of sales, the inventory represents an 8.4-month supply at the current pace of sales, only slightly higher than the 5- to 6-month inventory regarded as a balanced market.
Courtesy of the Southland Regional Association of REALTORS(R)
FAQ: Manufactured Homes (summary, photos, links)
FAQ: What are pre-manufactured homes?
Pre-manufactured homes
* Aka pre-fabricated homes, “pre-fab”
* Built in factory, transported to home site
Manufactured homes
* Used to be called mobile homes, no more.
* Built to standards of 1976 HUD code
* Towed by truck, transport frame remains as part of home, but wheels and axles can be removed
* Photo on the right is a manufactured home, courtesy of Tim Ahlborn, see his website below.
Pre-manufactured homes
* Aka pre-fabricated homes, “pre-fab”
* Built in factory, transported to home site
Manufactured homes
* Used to be called mobile homes, no more.
* Built to standards of 1976 HUD code
* Towed by truck, transport frame remains as part of home, but wheels and axles can be removed
* Photo on the right is a manufactured home, courtesy of Tim Ahlborn, see his website below.
Modular homes* Built to state building codes, often to Uniform Building Code and/or the International Building Code
* Transported by flatbed truck and moved by crane
* Photo on the right is of a modular home, courtesy of DigitalDrummer (public domain photo). Photo below that is of a modular apartment building in London, courtesy of Fin Fahey/Tarquin Binary (used under license).
Site-built homes
* Home components are shipped to home site where it is assembled to make the home
* More and more pre-fabricated parts, like walls and roof, are now being shipped to the site.
Mobile homes
* Old name for manufactured homes
* Term used differently by the various home builders.
Trailer
* What can be attached to a vehicle by a hitch, including house/travel trailers.
Links:
http://en.wikipedia.org/wiki/Modular_home
http://en.wikipedia.org/wiki/Manufactured_housing
http://en.wikipedia.org/wiki/Mobile_home
Site-built homes
* Home components are shipped to home site where it is assembled to make the home
* More and more pre-fabricated parts, like walls and roof, are now being shipped to the site.
Mobile homes
* Old name for manufactured homes
* Term used differently by the various home builders.
Trailer
* What can be attached to a vehicle by a hitch, including house/travel trailers.
Links:
http://en.wikipedia.org/wiki/Modular_home
http://en.wikipedia.org/wiki/Manufactured_housing
http://en.wikipedia.org/wiki/Mobile_home
Some websites from various manufactured and modular home groups:
http://www.manufacturedhousing.org/default.asp
http://publicarticles.info/articles/mobile_homes/index.asp
http://www.manufacturedhousing.org/default.asp
http://www.rebelhome.net/trail.html
California DMV page on RVs (trailers): http://www.dmv.ca.gov/pubs/dl648/dl648pt6.htm
Tim Ahlborn's website: http://www.angelfire.com/mi/TimsManufacturedHome/
FAQ: Manufactured Homes (as published, text only)
FAQ: What are pre-manufactured homes?
Someone asked me if real estate agents can help them find a manufactured home. We can assist if the home is on a foundation and “attached to land.” The land can be leased. It led to a lengthy discussion between the differences of these types of homes. Here’s a summary:
Generally, pre-manufactured homes (also called pre-fabricated homes, shortened to “pre-fab”) are built in a factory and transported to a home site.. The major 2 groups of pre-manufactured homes are manufactured homes and modular homes.
Manufactured homes used to be called mobile homes, prior to a 1976 HUD code under which they are now currently built. They are towed by truck, then the wheels and axles can be removed once at the home site. The transport frame is a permanent part of the structure. Initially marketed for mobility, but since the 1950s, they are marketed as inexpensive housing, kept at a home site for a long period of time, or even placed on a permanent foundation. Nowadays, they are generally kept at a site permanently once placed. When sold, they must be disclosed as a HUD-code manufactured home, but modern homes are nearly indistinguishable versus site-built homes.
Modular homes meet state building codes (which means they comply with the Uniform Building Code and/or the International Building Code), are transported by flatbed truck, and is moved by crane to a permanent foundation. It can also look very close to site-built homes.
Also to comparison’s sake:
Site-built homes are the traditional homes as we think of it, where builders ship lumber and other home components to the home site, where it is assembled. These days, there is more and more composite and pre-fabricated parts, like windows, roofing and walls, that are shipped to the site.
“Mobile homes” is the old name for manufactured homes. Those who make modular and site-built homes continue to use this term for manufactured homes, while manufactured home builders emphasize that mobile homes refer to RV homes that can be hooked by hitch to a personal vehicle. I think this is a major reason why all of these terms continue to be confusing.
Trailer: attaches to the rear of a vehicle by a hitch. Usually for moving boats and personal recreation vehicles. Includes house/travel trailers.
House/travel trailers: Recreational homes can be moved by an individual vehicle with a trailer hitch.
Do you have a real estate question that’s just wanting to be answered? Email me at changhomes@gmail.com. I’ll reply with a personalized answer, so no you don’t have to wait until the next issue!
A summary of this FAQ is found on my blog along with photos and links at http://changhomes1.blogspot.com.
Someone asked me if real estate agents can help them find a manufactured home. We can assist if the home is on a foundation and “attached to land.” The land can be leased. It led to a lengthy discussion between the differences of these types of homes. Here’s a summary:
Generally, pre-manufactured homes (also called pre-fabricated homes, shortened to “pre-fab”) are built in a factory and transported to a home site.. The major 2 groups of pre-manufactured homes are manufactured homes and modular homes.
Manufactured homes used to be called mobile homes, prior to a 1976 HUD code under which they are now currently built. They are towed by truck, then the wheels and axles can be removed once at the home site. The transport frame is a permanent part of the structure. Initially marketed for mobility, but since the 1950s, they are marketed as inexpensive housing, kept at a home site for a long period of time, or even placed on a permanent foundation. Nowadays, they are generally kept at a site permanently once placed. When sold, they must be disclosed as a HUD-code manufactured home, but modern homes are nearly indistinguishable versus site-built homes.
Modular homes meet state building codes (which means they comply with the Uniform Building Code and/or the International Building Code), are transported by flatbed truck, and is moved by crane to a permanent foundation. It can also look very close to site-built homes.
Also to comparison’s sake:
Site-built homes are the traditional homes as we think of it, where builders ship lumber and other home components to the home site, where it is assembled. These days, there is more and more composite and pre-fabricated parts, like windows, roofing and walls, that are shipped to the site.
“Mobile homes” is the old name for manufactured homes. Those who make modular and site-built homes continue to use this term for manufactured homes, while manufactured home builders emphasize that mobile homes refer to RV homes that can be hooked by hitch to a personal vehicle. I think this is a major reason why all of these terms continue to be confusing.
Trailer: attaches to the rear of a vehicle by a hitch. Usually for moving boats and personal recreation vehicles. Includes house/travel trailers.
House/travel trailers: Recreational homes can be moved by an individual vehicle with a trailer hitch.
Do you have a real estate question that’s just wanting to be answered? Email me at changhomes@gmail.com. I’ll reply with a personalized answer, so no you don’t have to wait until the next issue!
A summary of this FAQ is found on my blog along with photos and links at http://changhomes1.blogspot.com.
Saturday, September 1, 2007
September 2007 Days to Celebrate
September is...
Baby Safety Month
Better Breakfast MonthCheck out my page for this special day!
Cable TV Month
Children's Eye Health and Safety Month
Classical Music Month
Library Card Sign-Up MonthCheck out my page for this special day!
National Chicken Month
National Courtesy Month
National Honey Month
National Pediculosis Prevention Month
National Piano Month
National Rice Month
National School Success Month
National Sewing Month
Read-A-New-Book Month
Women of Achievement Month
Week-long events:
1st Week
Child Injury Prevention WeekEvery September 1st - 7th.
2nd Week
International Housekeepers Week
3rd Week
National Child Care Week
National Farm Animals Awareness Week
National Flower Week
4th Week
Equal Parents' Week
National Dog WeekCheck out my page for this special day!
National Roller Skating Week
Baby Safety Month
Better Breakfast MonthCheck out my page for this special day!
Cable TV Month
Children's Eye Health and Safety Month
Classical Music Month
Library Card Sign-Up MonthCheck out my page for this special day!
National Chicken Month
National Courtesy Month
National Honey Month
National Pediculosis Prevention Month
National Piano Month
National Rice Month
National School Success Month
National Sewing Month
Read-A-New-Book Month
Women of Achievement Month
Week-long events:
1st Week
Child Injury Prevention WeekEvery September 1st - 7th.
2nd Week
International Housekeepers Week
3rd Week
National Child Care Week
National Farm Animals Awareness Week
National Flower Week
4th Week
Equal Parents' Week
National Dog WeekCheck out my page for this special day!
National Roller Skating Week
Sunday, July 1, 2007
Santa Clarita Valley Single-Family Homes and Condominium Resale Statistics
Santa Clarita Valley's balanced residential resale market frustrates home buyers expecting to snag deep discounts
The steady, consistent pace of the current residential housing market in the Santa Clarita Valley is frustrating prospective home buyers who falsely presume that fewer sales necessarily translates into greatly reduced resale prices, the Southland Regional Association of Realtors reported on Thursday, June 28.
The number of homes sold throughout the Santa Clarita Valley during May continued to hover 23.5 percent below the level of activity reported a year ago while prices remained flat or showed only modest declines.
A total of 179 single-family homes closed escrow during May, 23.5 percent below a year ago, but up 2.9 percent from April of this year.
Realtors also guided 90 condominiums into the hands of new owners, a total that was 26.8 percent lower than May 2006, but up 18.4 percent from this April.
"Buyers hear reports that sales are down from record levels or that some homes are in foreclosure and conclude that sellers and lenders are giving away properties, but that's just not the case," said Larry Gasinski, president of the Association's Santa Clarita Valley Division.
"If a home doesn't sell quickly owners and banks eventually offer incentives, but there are no huge bargains out there like there were during the early to mid-1990s," Gasinski said. "Other buyers are still sitting on the sidelines waiting to see what happens, yet any advantage gained in price has already been offset by slightly higher and still rising interest rates."
Gasinski and Jim Link, the Association's executive vice president, noted that buyers also incorrectly believe that the number of homes listed for sale has given all the negotiating advantage to buyers.
It's true that the inventory does favor buyers slightly more than sellers - a welcome relief after years of sellers being in control. However, the 2,240 active listings throughout the Santa Clarita Valley were up only 7.2 percent from a year ago and 3.7 percent higher than this April.
At the current pace of sales, Link said, the inventory represents an 8.3-month supply - just above the 5- to 6-month inventory that represents a balanced market where neither buyers nor sellers wield an advantage. A true buyers' market, like during the 1990s, would have a supply that exceeded a 16- or 18-month supply.
Just as Realtors strive to re-educate buyers, Gasinski and Link said Realtors report that sellers also sometimes make ill-informed choices that too often ruin the chance of a speedy sale.
"We hear it all the time from Realtors that even though sellers know the market has slowed down sellers insist on listing a home at a high price thinking they can reduce it later," Gasinski said. "Instead, what happens is that the homes do not even get shown because they are out of the price ranges of what people want to pay."
The median price of the single-family homes sold last month was $615,000, down 2.2 percent from a year ago, but up 3.4 percent from this April. Since the record high of $643,000 was set in April 2006, the median price has been hovering between $570,000 and $615,000.
The condominium median price of $355,000 was 9.4 percent below a year ago and down 7.8 percent on a month-to-month basis. The record high of $397,000 was set in January of 2006.
"The market is definitely shifting in favor of buyers," Link said, "but not in the sense of prices dropping dramatically.
"Buyers have a wider choice and more time now to consider their options," he said, "but if a property is listed correctly at the current market price, buyers will be sorely disappointed and miss an opportunity if they are looking for a 20 or 30 percent discount. It simply is not happening."
Courtesy: Southland Regional Associaiton of REALTORS
The steady, consistent pace of the current residential housing market in the Santa Clarita Valley is frustrating prospective home buyers who falsely presume that fewer sales necessarily translates into greatly reduced resale prices, the Southland Regional Association of Realtors reported on Thursday, June 28.
The number of homes sold throughout the Santa Clarita Valley during May continued to hover 23.5 percent below the level of activity reported a year ago while prices remained flat or showed only modest declines.
A total of 179 single-family homes closed escrow during May, 23.5 percent below a year ago, but up 2.9 percent from April of this year.
Realtors also guided 90 condominiums into the hands of new owners, a total that was 26.8 percent lower than May 2006, but up 18.4 percent from this April.
"Buyers hear reports that sales are down from record levels or that some homes are in foreclosure and conclude that sellers and lenders are giving away properties, but that's just not the case," said Larry Gasinski, president of the Association's Santa Clarita Valley Division.
"If a home doesn't sell quickly owners and banks eventually offer incentives, but there are no huge bargains out there like there were during the early to mid-1990s," Gasinski said. "Other buyers are still sitting on the sidelines waiting to see what happens, yet any advantage gained in price has already been offset by slightly higher and still rising interest rates."
Gasinski and Jim Link, the Association's executive vice president, noted that buyers also incorrectly believe that the number of homes listed for sale has given all the negotiating advantage to buyers.
It's true that the inventory does favor buyers slightly more than sellers - a welcome relief after years of sellers being in control. However, the 2,240 active listings throughout the Santa Clarita Valley were up only 7.2 percent from a year ago and 3.7 percent higher than this April.
At the current pace of sales, Link said, the inventory represents an 8.3-month supply - just above the 5- to 6-month inventory that represents a balanced market where neither buyers nor sellers wield an advantage. A true buyers' market, like during the 1990s, would have a supply that exceeded a 16- or 18-month supply.
Just as Realtors strive to re-educate buyers, Gasinski and Link said Realtors report that sellers also sometimes make ill-informed choices that too often ruin the chance of a speedy sale.
"We hear it all the time from Realtors that even though sellers know the market has slowed down sellers insist on listing a home at a high price thinking they can reduce it later," Gasinski said. "Instead, what happens is that the homes do not even get shown because they are out of the price ranges of what people want to pay."
The median price of the single-family homes sold last month was $615,000, down 2.2 percent from a year ago, but up 3.4 percent from this April. Since the record high of $643,000 was set in April 2006, the median price has been hovering between $570,000 and $615,000.
The condominium median price of $355,000 was 9.4 percent below a year ago and down 7.8 percent on a month-to-month basis. The record high of $397,000 was set in January of 2006.
"The market is definitely shifting in favor of buyers," Link said, "but not in the sense of prices dropping dramatically.
"Buyers have a wider choice and more time now to consider their options," he said, "but if a property is listed correctly at the current market price, buyers will be sorely disappointed and miss an opportunity if they are looking for a 20 or 30 percent discount. It simply is not happening."
Courtesy: Southland Regional Associaiton of REALTORS
San Fernando Valley Single-Family Homes and Condominium Resale Statistics
San Fernando Valley single-family home median price hits record high as sales slow down
Reflecting ongoing demand for housing and confidence in the local economy, the median price of single-family homes hit a record high during May even as home sales continued to soften throughout the region, the Southland Regional Association of Realtors reported Thursday, June 27.
A total of 629 homes changed owners last month, a drop of 26.5 percent from a year ago, but up 15.4 percent from the total reported this April.
Condominium sales fell 37.5 percent compared to a year ago to a total of 250 transactions. Condo sales also rose compared to April, up 15.7 percent.
"While there is zero evidence that prices will drop dramatically, the market has shifted in favor of buyers in the sense of offering better choices, more time to negotiate, and credit options that remain generally favorable," said Winnie Davis, president of the Southland Regional Association of Realtors.
"All segments of the market report fewer sales, but the entry level price range is feeling the pinch more than others partly because of stricter rules when it comes to qualifying for a home loan," Davis said. "But that is not necessarily a bad thing."
Stricter loan qualifying rules may, unfortunately, disqualify some buyers whose credit is less than stellar, but that also means there will be fewer problem loans in the months and years ahead.
Relatively few borrowers in the San Fernando Valley are experiencing difficulty making the monthly loan payment or are at risk of losing the house to foreclosure.
Nonetheless, today's tighter loan qualifying standards have a local impact that comes out by way of fewer sales in the entry level price categories.
"The economy is strong and credit remains readily available, yet some buyers are still sitting on the sidelines waiting to see what will happen with the housing market," said Jim Link, the association's executive vice president. "When some prospective buyers finally come to the market they expect to see homes with steeply discounted list prices, yet that is simply not happening."
Instead, Link said, most sellers - especially those who heed the advice of their Realtor - have already adjusted the asking price to current market conditions.
Reflecting the ongoing demand for housing, the median price of the 629 single-family homes sold during May rose 8.3 percent from a year ago to a record high of $650,000. That was up 4.0 percent from the previous high of $625,000 set this April.
The condominium median price of $387,000 was down 2.8 percent from a year ago. The record high of $415,000 was recorded in February 2006.
"Some buyers are surprised when they see that prices are not falling dramatically," Link said. "Foreclosures in other areas of the country may be driving prices down in those regions, but local buyers will be disappointed if they assume it is happening here.
"Parts of California that had alot of new construction, heavy activity by speculators or were primarily catering to buyers who needed to take advantage of low- or no-down adjustable loans to qualify may be experiencing more problems," Link said. "But the housing market in the San Fernando Valley is a mature, balanced market which, so far, is capable of adapting to current market conditions."
There were 6,697 single-family homes and condominiums listed for sale throughout the Valley at the end of May, up 22.4 percent from a year.
At the current pace of sales, the inventory represents a 7.6-month supply, which is only slightly above the 5- to 6-month supply which experts believe represents a balanced market.
The number of active listings often lingered at less than a 1-month supply during the recent sellers' market . At the height of the pure buyers' market of the early 1990's, active listings hit a record high of a 23-month supply.
Courtesy: Southland Regional Association of Realtors
Reflecting ongoing demand for housing and confidence in the local economy, the median price of single-family homes hit a record high during May even as home sales continued to soften throughout the region, the Southland Regional Association of Realtors reported Thursday, June 27.
A total of 629 homes changed owners last month, a drop of 26.5 percent from a year ago, but up 15.4 percent from the total reported this April.
Condominium sales fell 37.5 percent compared to a year ago to a total of 250 transactions. Condo sales also rose compared to April, up 15.7 percent.
"While there is zero evidence that prices will drop dramatically, the market has shifted in favor of buyers in the sense of offering better choices, more time to negotiate, and credit options that remain generally favorable," said Winnie Davis, president of the Southland Regional Association of Realtors.
"All segments of the market report fewer sales, but the entry level price range is feeling the pinch more than others partly because of stricter rules when it comes to qualifying for a home loan," Davis said. "But that is not necessarily a bad thing."
Stricter loan qualifying rules may, unfortunately, disqualify some buyers whose credit is less than stellar, but that also means there will be fewer problem loans in the months and years ahead.
Relatively few borrowers in the San Fernando Valley are experiencing difficulty making the monthly loan payment or are at risk of losing the house to foreclosure.
Nonetheless, today's tighter loan qualifying standards have a local impact that comes out by way of fewer sales in the entry level price categories.
"The economy is strong and credit remains readily available, yet some buyers are still sitting on the sidelines waiting to see what will happen with the housing market," said Jim Link, the association's executive vice president. "When some prospective buyers finally come to the market they expect to see homes with steeply discounted list prices, yet that is simply not happening."
Instead, Link said, most sellers - especially those who heed the advice of their Realtor - have already adjusted the asking price to current market conditions.
Reflecting the ongoing demand for housing, the median price of the 629 single-family homes sold during May rose 8.3 percent from a year ago to a record high of $650,000. That was up 4.0 percent from the previous high of $625,000 set this April.
The condominium median price of $387,000 was down 2.8 percent from a year ago. The record high of $415,000 was recorded in February 2006.
"Some buyers are surprised when they see that prices are not falling dramatically," Link said. "Foreclosures in other areas of the country may be driving prices down in those regions, but local buyers will be disappointed if they assume it is happening here.
"Parts of California that had alot of new construction, heavy activity by speculators or were primarily catering to buyers who needed to take advantage of low- or no-down adjustable loans to qualify may be experiencing more problems," Link said. "But the housing market in the San Fernando Valley is a mature, balanced market which, so far, is capable of adapting to current market conditions."
There were 6,697 single-family homes and condominiums listed for sale throughout the Valley at the end of May, up 22.4 percent from a year.
At the current pace of sales, the inventory represents a 7.6-month supply, which is only slightly above the 5- to 6-month supply which experts believe represents a balanced market.
The number of active listings often lingered at less than a 1-month supply during the recent sellers' market . At the height of the pure buyers' market of the early 1990's, active listings hit a record high of a 23-month supply.
Courtesy: Southland Regional Association of Realtors
Saturday, June 30, 2007
"Over The Fence" Newsletter
I'll be presenting a second associated newsletter to my clients, VIPs and prospective buyers and sellers. You can see a preview at:
July 4th Celebrations
4th of July Celebrations
Sorted by Region and Date:
Santa Clarita Valley
July 4 – Westfield Valencia Town Center, 24315 Town Center Drive, www.santa-clarita.com
Off top of Parking Structure. 9:15pm
July 4 – 25th Annual Independence Day 5K, www.scrunners.org
$30 registration, begins 7am, Newhall Park on Dalbey.
July 4 - The Greens at Valencia will feature an old fashioned 4th of July BBQ and a live band. Make sure to bring your blanket for later to enjoy prime viewing of the fireworks from the putting course. Please call 661-222-2900 for reservations.
July 4 - City of Santa Clarita Parade, www.scvparade.com, 9:45am
July 4 - Castaic Lake Recreation Area, www.castaiclake.com
Fireworks at Lower Lake Lagoon. Picnic and swim all morning and then enjoy children's rides, games, face painting, jumpers, rock climbers, etc. in the afternoon. Adults will be able to enjoy music, food, craft booths and family games such as: water-balloon toss, potato sack races etc. The Fireworks are the big finale for the day and begin at 9:00 p.m. $25.00 per carload, $5.00 per person walk-in, 5 years old and under are free. No open truck bed passengers will be allowed. Camping and Boat Launches require extra fee
July 4 – Six Flags Magic Mountain, www.sixflags.com; Open 10:30am-10pm. Fireworks after 9pm.
San Fernando Valley
July 4 – CBS Studios, 4024 Radford Avenue, Studio City. www.StudioCityChamber.com
Live music, food and fun with the grand finale fireworks display. Tickets can be purchased at the Studio City Chamber of Commerce, Studio City Farmers Market or Studio City Hand Car Wash. Adults are $15.00 in advance or $20 at the entrance. Children (12 & under) $8.00, Children (5 and under) free. VIP Tickets $100.00. 5 p.m. - 9 p.m.
July 4 – Hansen Dam, 11770 Foothill Blvd., Lake View Terrace, www.hansen4th.com
9:00 p.m. Parking $3. For information, call (818) 768-1128.
July 4 - Porter Ranch, Shepherd of the Hills Church, 19700 Rinaldi St. 9:00 p.m. For information, call (818) 831-9333.
July 4 – El Caballero Country Club, 18300 Tarzana Drive, 9pm
July 4 – City of San Fernando, Recreation Park, 205 Park Avenue, Fireworks at 9pm, For information, call (818) 898-1201.
Antelope Valley
July 4-AV Fairgrounds. The annual July 4th Celebration is free to the public and gates will open at 6:30 p.m. Musical entertainment begins at 7:30 p.m. Grandstand seating will be available on a first-come, first-served basis. The fireworks show will begin at 9 p.m. For information, call (661)723-6077.
July 4 - Jet Hawks Stadium, 6:30 p.m.
Elsewhere
July 2,3,4 - Hollywood Bowl, www.hollywoodbowl.com, 7:30pm
July 4 – Dodger Stadium, 9pm
July 4 - Rose Bowl, www.rosebowlstadium.com, 12noon-9pm
Admission is $12 per person, Children 7 and under are free, active military with ID admitted free (up to 4 per family) available only at the Rose Bowl Box Office. Tickets go on sale via Ticketmaster Tuesday, May 30. Call (213) 480-3232 for tickets, or ticketmaster.com. Tickets may also be purchased at Rose Bowl Box Office. $20 per car payable as you enter the parking lots includes $5 off coupon for food & drinks inside the stadium. Festival gates open at noon, fireworks at 9 p.m.
July 4 – Queen Mary, Long Beach, www.queenmary.com, 10am-10pm
Sorted by Region and Date:
Santa Clarita Valley
July 4 – Westfield Valencia Town Center, 24315 Town Center Drive, www.santa-clarita.com
Off top of Parking Structure. 9:15pm
July 4 – 25th Annual Independence Day 5K, www.scrunners.org
$30 registration, begins 7am, Newhall Park on Dalbey.
July 4 - The Greens at Valencia will feature an old fashioned 4th of July BBQ and a live band. Make sure to bring your blanket for later to enjoy prime viewing of the fireworks from the putting course. Please call 661-222-2900 for reservations.
July 4 - City of Santa Clarita Parade, www.scvparade.com, 9:45am
July 4 - Castaic Lake Recreation Area, www.castaiclake.com
Fireworks at Lower Lake Lagoon. Picnic and swim all morning and then enjoy children's rides, games, face painting, jumpers, rock climbers, etc. in the afternoon. Adults will be able to enjoy music, food, craft booths and family games such as: water-balloon toss, potato sack races etc. The Fireworks are the big finale for the day and begin at 9:00 p.m. $25.00 per carload, $5.00 per person walk-in, 5 years old and under are free. No open truck bed passengers will be allowed. Camping and Boat Launches require extra fee
July 4 – Six Flags Magic Mountain, www.sixflags.com; Open 10:30am-10pm. Fireworks after 9pm.
San Fernando Valley
July 4 – CBS Studios, 4024 Radford Avenue, Studio City. www.StudioCityChamber.com
Live music, food and fun with the grand finale fireworks display. Tickets can be purchased at the Studio City Chamber of Commerce, Studio City Farmers Market or Studio City Hand Car Wash. Adults are $15.00 in advance or $20 at the entrance. Children (12 & under) $8.00, Children (5 and under) free. VIP Tickets $100.00. 5 p.m. - 9 p.m.
July 4 – Hansen Dam, 11770 Foothill Blvd., Lake View Terrace, www.hansen4th.com
9:00 p.m. Parking $3. For information, call (818) 768-1128.
July 4 - Porter Ranch, Shepherd of the Hills Church, 19700 Rinaldi St. 9:00 p.m. For information, call (818) 831-9333.
July 4 – El Caballero Country Club, 18300 Tarzana Drive, 9pm
July 4 – City of San Fernando, Recreation Park, 205 Park Avenue, Fireworks at 9pm, For information, call (818) 898-1201.
Antelope Valley
July 4-AV Fairgrounds. The annual July 4th Celebration is free to the public and gates will open at 6:30 p.m. Musical entertainment begins at 7:30 p.m. Grandstand seating will be available on a first-come, first-served basis. The fireworks show will begin at 9 p.m. For information, call (661)723-6077.
July 4 - Jet Hawks Stadium, 6:30 p.m.
Elsewhere
July 2,3,4 - Hollywood Bowl, www.hollywoodbowl.com, 7:30pm
July 4 – Dodger Stadium, 9pm
July 4 - Rose Bowl, www.rosebowlstadium.com, 12noon-9pm
Admission is $12 per person, Children 7 and under are free, active military with ID admitted free (up to 4 per family) available only at the Rose Bowl Box Office. Tickets go on sale via Ticketmaster Tuesday, May 30. Call (213) 480-3232 for tickets, or ticketmaster.com. Tickets may also be purchased at Rose Bowl Box Office. $20 per car payable as you enter the parking lots includes $5 off coupon for food & drinks inside the stadium. Festival gates open at noon, fireworks at 9 p.m.
July 4 – Queen Mary, Long Beach, www.queenmary.com, 10am-10pm
Monday, June 25, 2007
Ten Reasons to Buy Real Estate
Ten Reasons to Buy Real Estate
1. Appreciating Asset
2. Tax Write-off
3. Improvable Asset
4. Renting is a Short-Term Advantage, While Owning is Long-Term, Toward More Benefits and Being Wealthier.
5. Credit Scores of Home Owners are Higher!
6. Leverage Your Home.
7. No Landlord! 15 Day Grace Period for Mortgage Payments.
8. Capital Gain Exclusion.
9. Real Estate as an Inflation Edge.
10. Home Ownership Builds Wealth in Two Ways:
a. Through the "Forced Savings" of Paying Down a Mortgage, and
b. Through Appreciation - the Rise in the Home's Value Over Time.
- RealtyTimes.
1. Appreciating Asset
2. Tax Write-off
3. Improvable Asset
4. Renting is a Short-Term Advantage, While Owning is Long-Term, Toward More Benefits and Being Wealthier.
5. Credit Scores of Home Owners are Higher!
6. Leverage Your Home.
7. No Landlord! 15 Day Grace Period for Mortgage Payments.
8. Capital Gain Exclusion.
9. Real Estate as an Inflation Edge.
10. Home Ownership Builds Wealth in Two Ways:
a. Through the "Forced Savings" of Paying Down a Mortgage, and
b. Through Appreciation - the Rise in the Home's Value Over Time.
- RealtyTimes.
Finally! The Difference Between a Condo and a Townhouse!
I know buyers always get condos and townhomes confused. Our MLS doesn't make it any easier in considering that a townhome is a "single family residence," and a condo is a separate category.
Here's the dirt: Condo unit owners own the inside of their units. Townhouse owners own the complete unit, including exterior surfaces and the land on which the unit is built. A single family residence is a category including attached and detached homes that the homeowner owns the land the home sits on.
I thought this was nice and easy to remember.
Here's the dirt: Condo unit owners own the inside of their units. Townhouse owners own the complete unit, including exterior surfaces and the land on which the unit is built. A single family residence is a category including attached and detached homes that the homeowner owns the land the home sits on.
I thought this was nice and easy to remember.
Sunday, June 3, 2007
Housing Market at a Glance: Signs the bottom is now.
Signs of Stabilizing Housing Market
Based on First Quarter 2007, Housing data shows a broad stabilization. Essentially, the existing-home market is stabilizing in a broad cyclical trough and moving in the right direction, with a modest gain from the fourth quarter. During the real estate boom, conditions changed fairly rapidly. Observers now need to be a bit more patient to see a slow, gradual recovery, which should start in the second half of this year. In the West, the existing-home sales pace of 1.28 million units fell 11.9 percent from the first quarter of 2006. After Wyoming, the best performance in the region was in Colorado where sales rose 0.8 percent from a year earlier. The median existing single-family home price in the West was $336,200 in the first quarter, down 1.8 percent from a year ago. The strongest increase in the West was in the Salem OR area, at $221,600, up 15.6 percent from the first quarter of 2006.
Housing Projections NationallyNational Association of Realtors expects the following in home sales this year:
- Existing-home sales are likely to total 6.29 million this year and 6.49 million in 2008, compared with 6.48 million last year.
- New-home sales are projected at 864,000 in 2007 and 936,000 next year, lower than the 1.05 million in 2006.
- Housing starts should total 1.46 million units this year and 1.52 million in 2008, down from 1.80 million last year.
If it weren’t for a favorable economic backdrop, housing would probably have a hard landing. As it is, we see this as a soft landing with home sales rising gradually in the second half of the year and prices recovering a bit later.”The 30-year fixed-rate mortgage should rise slowly to 6.5 percent by the fourth quarter, NAR predicts. Last week, Freddie Mac reported the 30-year rate was 6.16 percent. We’ve already seen this in comparing March 2007 numbers with April 2007 numbers in Fast Facts.The national median existing-home price is forecast to slip 1 percent to $219,800 this year, and then rise 1.4 percent in 2008. The median new-home price is expected to be essentially unchanged at $246,400 in 2007, and then rise 2.2 percent next year.
New Home Sales Surge in April Nationally
Sales of new single-family homes jumped 16.2 percent in April, the largest increase in 14 years, but the median price fell 11.1 percent, marking the largest one-month decline on record, according to the U.S. Commerce Department.
''What you're seeing is the blue-light special,'' says Pat McPherron, an economist with Moody's Economy.com. ''The only way this market is going to move is by price cutting.''The strength in new-home sales was led by a 27.8 percent increase in the South. Sales were also up in the West by 8.5 percent and in the Northeast by 3.8 percent. In the Midwest, sales fell 4 percent. Meanwhile, April's median new-home price of $229,100 made the record books as the largest-ever month-over-month decline, as well as the biggest year-over-year drop (10.9 percent) since 1970.
Northern Los Angeles County Focus
Home sales decreased 27.8 percent in April in California compared with the same period a year ago, while the median price of an existing home increased 6.2 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
As of print time, the Southland Regional Association of Realtors, whose area covers San Fernando and Santa Clarita Valleys, has not released April 2007 data. Data from the prior quarter shows that single-family home prices over the quarter have dropped 3.3% versus last March (down 6.4% for the 1st quarter overall) in the Santa Clarita Valley and that inventory increased 14.6% from last year – representing a 5.5 month supply, which is considered a balanced market, where both the buyer and seller have influence on prices and transactions. In San Fernando Valley, prices down 1% versus last March and inventory up 27.6% to a 5.2 month supply.
In the Antelope Valley, the Greater Antelope Valley Association of Realtors notes active listings rose about 67% from May 2006 to May 2007 with an 8% decrease in list price. The latest sold stats available are for First Quarter 2007, showing Units sold decreased 58% 2007 from 2006 and Sales Price increased 4% 2006 to 2007.
Expectations
The LA Times in its article of May 16 states “Southern California home sales plunged to a 12-year low in April, suggesting that the region's real estate slump is far from over.” I believe this conclusion is contrary to the data shown from my discussions with California Assocaition of Realtors economist Robert A. Kleinhenz. His data shows that we are at a nadir in home prices and to expect a strengthening market by 2008.
It shows how hard it is to get good information through all different sources vying for our attention. It sometimes frustrates me to see premature conclusions that are different from how I see the market. But only time will tell.
I have supporting documentation from Dr. Kleinhenz for his statements and the latest trends from the Valleys from Southland Regional Association of Realtors available – just email me.
Mortgage rates are already showing increases through May (see Fast Facts column), but they are still at historically low levels. The Federal Reserve, which sets short-term interest rates, are meeting at the end of June. Most analysts believe they will not change rates at least through the fourth quarter of 2007. Remember Federal Reserve rates do not directly affect mortgage rates, which are adjusted in step with U.S. Treasury Bonds and other bond rates.
Courtesy: National Association of Realtors, REALTOR® Magazine Online, The New York Times (05/25/07), Los Angeles Times (05/16/07)
Join Me in Celebrating America's Heroes!
Being a former flight medic, I know what helicopters do in saving lives. American Heroes is an air show at Hansen Dam. Join many of my friends as they show off their machines.
Since 1993, this admission-free event has been dedicated to the unique capabilities and dynamic role of helicopters in law enforcement, fire service, public safety, national defense and homeland security. With aircraft from local, regional, state and Federal / DOD agencies, guests are treated to an up-close look at why these aircraft and their crews are on the front line of public safety and community service.
Explore the evolution of helicopters from elegant lines of the U.S. Coast Guard HH-65 ”Dolphin” to the life-saving, Hi-Tech muscle of the S-70 "Firehawk" helicopter from Los Angeles CO. Fire Dept / Air Squad. It's a unique opportunity to learn why these aircraft are the first tool out of the toolbox in times of natural disaster or homeland security threats and why their crews are the Heroes your family can really look up to !
Plus, have your camera ready and introduce your entire crew to many of the Southland's most well known celebrity / media pilots and news reporters plus get an up-close look at the aircraft you see them in every day for traffic and news reports.
More than top gun, high-tech helicopters, the American Heroes event also features the CODE 3 Career Fair which brings together recruiting teams from public safety, government service, volunteer agencies and all military services to profile what they do and how you can be a part of the action.
The FIRST PROMISE- Family Preparedness Fair offers information and resources on emergency preparedness tactics for businesses and community plus family tips for Internet and identity safety from the F.B.I., the U.S. Secret Service and the National Center for Missing & Exploited Children.
Also on scene are many of the finest local Search & Rescue teams from mountain, urban, swiftwater, canine and Combat / SAR organizations. Check out technical rope rescue demos and learn how you can join the action as a reserve volunteer with a local Search & Rescue team.
The traditional collectible event trading cards are back and available free in limited quantities to early bird arrivals. Plus award presentations on stage, entertainment, concessions, exciting flight demos and much more.
June 23rd Saturday
Hansen Dam Recreation & Sports Complex
11480 Foothill Blvd
Lake View Terrace, California 91342
Exit Osborne from the Foothill (210) Freeway
Hours: 9 a.m. to 4 p.m.
If you have any questions, please email me. Otherwise, I'll see you there!
Since 1993, this admission-free event has been dedicated to the unique capabilities and dynamic role of helicopters in law enforcement, fire service, public safety, national defense and homeland security. With aircraft from local, regional, state and Federal / DOD agencies, guests are treated to an up-close look at why these aircraft and their crews are on the front line of public safety and community service.
Explore the evolution of helicopters from elegant lines of the U.S. Coast Guard HH-65 ”Dolphin” to the life-saving, Hi-Tech muscle of the S-70 "Firehawk" helicopter from Los Angeles CO. Fire Dept / Air Squad. It's a unique opportunity to learn why these aircraft are the first tool out of the toolbox in times of natural disaster or homeland security threats and why their crews are the Heroes your family can really look up to !
Plus, have your camera ready and introduce your entire crew to many of the Southland's most well known celebrity / media pilots and news reporters plus get an up-close look at the aircraft you see them in every day for traffic and news reports.
More than top gun, high-tech helicopters, the American Heroes event also features the CODE 3 Career Fair which brings together recruiting teams from public safety, government service, volunteer agencies and all military services to profile what they do and how you can be a part of the action.
The FIRST PROMISE- Family Preparedness Fair offers information and resources on emergency preparedness tactics for businesses and community plus family tips for Internet and identity safety from the F.B.I., the U.S. Secret Service and the National Center for Missing & Exploited Children.
Also on scene are many of the finest local Search & Rescue teams from mountain, urban, swiftwater, canine and Combat / SAR organizations. Check out technical rope rescue demos and learn how you can join the action as a reserve volunteer with a local Search & Rescue team.
The traditional collectible event trading cards are back and available free in limited quantities to early bird arrivals. Plus award presentations on stage, entertainment, concessions, exciting flight demos and much more.
June 23rd Saturday
Hansen Dam Recreation & Sports Complex
11480 Foothill Blvd
Lake View Terrace, California 91342
Exit Osborne from the Foothill (210) Freeway
Hours: 9 a.m. to 4 p.m.
If you have any questions, please email me. Otherwise, I'll see you there!
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