RE/MAX Founder thinks 2009 will be like 2008

My broker went to a RE/MAX meeting in Pasadena on December 4, where RE/MAX founder, Dave Liniger, was speaking. He writes,

"Liniger has been, and is, the only Real Estate person that congress has been in touch with for ideas on how to solve the housing crisis. He has given pointed suggestions and is confident that congress will ultimately solve the problem.
 
"Today's Wall Street Journal, front page, has an article "U.S. Eyes Plan To Lift Home Sales" where the government is considering a plan  that could help some people obtain mortgages at 4.5%.  That's great news.
 
"Dave Liniger thinks the market in 2009 will be just like 2008. NAR's opinion is that 2008 was the bottom and 2009 will see an increase in sales."


Source: my broker, RE/MAX of Valencia

Upcoming Santa Clarita Events

Kid's Night Out! (December 12)
Parents can enjoy going to dinner, shopping, or just a night out while your children are participating in supervised fun. Children (ages 4-11) will enjoy food, a movie, crafts, and games inside the community room at Santa Clarita Park, while you have a night to yourself. All City staff are fingerprinted and CPR/First Aid certified. The cost is $18 per child. For more information, please call (661) 284-1465.


Upcoming Events

Tournament of Roses Parade 2009 (January 1)
Pasadena’s 120th annual Tournament of Roses Parade, “Hat’s Off to Entertainment” will be making its way down Colorado Boulevard and we have reserved a seat just for you! For more information, please email trips&tours@santa-clarita.com.

 
Glacier Slide Polar Bear Swim (January 1)
Join the official Santa Clarita Polar Bear Club by taking a chilly plunge in the Aquatic Center’s waterslide pool on New Year’s Day.  For more information, please contact (661) 250-3766.
 
Santa Clarita Valley Film Festival (January 8-11)
The 4th Annual SCV Film Festival provides local filmmakers with opportunities to show their work and to come together with an audience to enjoy quality independent films. For more information, please visit www.scvfilmfestival.com.


Hit the Trail (January 24, 2009)
Celebrate the City of Santa Clarita’s 30 miles of off-street trail system with professional cyclists competing in the upcoming Amgen Tour of California.  For more information, please visit: www.santa-clarita.com/tourofca

 
Amgen Tour of California ( February 22, 2009)
The AMGEN Tour of California brings the drama and excitement of a professional bicycle stage race to the California coast.  Santa Clarita is proud to host the Start-line of Stage 7 from Santa Clarita to Pasadena. For more information, please visit: www.santa-clarita.com/tourofca

 
661Arts
661Arts is an alliance of artists and arts organizations working together to create and to promote an awareness of art and culture in Santa Clarita. This website serves as a point of access for the community to discover visual arts, performing arts, and arts events in the Santa Clarita Valley.  For more information, please visit www.611arts.com.
 
Source: City of Santa Clarita, 12/2

Countrywide to close Lancaster Call Center?

I am hearing that Countrywide/Bank of America will close its Lancaster, California, call-center facility and distribute those positions (may not be ALL those positions) in its other facilities in Simi Valley and Calabasas, among others. I am attempting to confirm.

The Lancaster facility in Northern Los Angeles County (Antelope Valley) is not only one of two nationwide (the other is in Western Texas) that takes inbound customer service calls, but also makes outbound calls to contact homeowners eligible for special refinancing programs. They also have work groups that otherwise assist homeowners restructure or refinance their loans.

Spotlight On...Bagel Boyz

Newly Opened Bagel Shop brings "N.Y. Style Bagels with A West Coast Curve"

As I disclosed in January, I’m pleased to introduce a new column in the monthly newsletter. “Spotlight On...” initially spotlighted on tax changes during the tax season, per request, but now focuses on our neighbors and small businesses.

** Bagel Boyz launches affordable gourmet bagels in Canyon Country **

Treasured friends of mine, Patrick Montgomery, Sr. and his son Patrick Montgomery, Jr. opened their new bagel store across from Costco and 24 Hour Fitness this past weekend. Both have been Santa Clarita residents for years.

Together with over 50 years' experience in bagels and the sandwich business, the father-son duo uses only the finest, freshest ingredients for their bagels which range from the traditional original, onion and blueberry varieties to the eclectic jalapeno pizza bagels. They also offer bagel melts and gocaccia bagel flats.

Drop by on your way to work - it's an easy couple of right turns on your way to the 14 freeway. It's located between Sierra Highway and the 14 on 18580 Via Princessa. Call 661-299-BAGEL (2243) if you get lost.

They do catering, wholesale, and advance orders for pickup. Call ahead and bring bagels to the office - they open at 5:30am weekdays. Their Baker's Dozen (13 bagels) is $7.25 for non-speciality varieties. Great idea for Friday breakfast or that team meeting for your office.

And tell them "Wayne the REALTOR(R)" sent you.

Do you know someone worth Spotlighting? Please send Mr. Chang an email at changhomes@gmail.com. It can be someone with an innovative business idea or product, someone starting their own business, or someone making a difference in school, after-school, work or the community in the Santa Clarita, Antelope or San Fernando Valleys.

Tri-Valley Housing Markets at a Glance: May 1, 2008

SCV Sales Show Renewed Activity
Home and condominium sales during March in the Santa Clarita Valley showed renewed activity on a month-to-month basis even as sales remained down compared to a year ago, the Southland Regional Association of Realtors® reported.

A total of 151 single-family homes closed escrow during March, up 31.3 percent from the total reported in February. March activity was off 42.1 percent from a year ago, but home sales have been gaining momentum since hitting the record low of 99 transactions in January.

Likewise, condominium sales were up 45.9 percent during March compared to February for a total of 54 closed escrows. Condominium activity also has been on a downward trend for some time, but appeared to have bottomed out with the record-low 38 sales posted in November. March condo sales were down 52.2 percent from a year ago, but each month this year has shown increased activity.

"Has the worst passed? Perhaps, although it will still take many months to workout the impact that foreclosures have on the market," said Doreen Chastain-Shine, president of the Association's Santa Clarita Valley Division. "But buyersare out looking at properties, with some of them making offers and others still wondering if now is the time to act."

Pending escrows - a measure of future resale activity - were surprisingly robust.

A total of 307 properties were in escrow at the end of March, up 12.5 percent from a year ago and 24.3 percent higher than this February. Pending escrows have been on the rising since September when they hit the record-low of 155 open escrows.

‘There is no doubt that the quick run-up in prices during the boom years, today's higher inventory of homes for sale, and the presence of foreclosures have a triple impact on sales and prices," said Jim Link, the Association's chief executive officer.

"However, gradually rising sales will reduce the impact on resale prices."

The median price of the 151 single-family homes sold last month was $470,000, down 19 percent from a year ago and off 4.1 percent from February. The low point in this cycle came in January when the median hit $460,000. That compares to the record high of $643,000 which was set in April of 2006.

The condominium median price during March was $275,000, down 28.6 percent from March 2007 and off 1 1.0 percent on a month-to-month basis. The high point for condo prices came in January 2006 when the condo median stood at $397,000.

There were a total of 2,085 properties for sale throughout the Santa Clarita Valley at the end of March.That was up 6.8 percent from 12 months ago, but down 4.4 percent from this February.
At the current pace of sales, the inventory represents a 10.2-month supply - still clearly a buyers' market, yet a considerable reduction from recent months when the inventory was in the mid to high teens.

"Clearly, the market has shifted gears," Chastain-Shine said, "although it will take months before we'll know with certaintythat the market has stabilized, but it certainly looks like it's moving in that direction."

SFV Home Sales Trending Up
Homes are selling in the San Fernando Valley with activity gradually picking up on a month-to- month basis and the number of properties in escrow suggesting the trend will continue through the coming months, the Southland Regional Association of Realtors ® reported.

A total of 41 6 single-family homes changed owners during March, up 16.2 percent from February. While sales were down 46.0 percent from a year ago, activity has been trending up since October with March being the third consecutive month of increased resale activity.

" If this trend continues," said Mary Funk, president of the Association, "it suggests that we may have passed the bottom of this cycle with the worst behind us."

Pending escrows, a measure of future activity, supported that perspective: down from a year ago, but up from month-to-month. There were a total of 853 transactions in escrow at the end of March, a mere 4.6 percent lower than a year ago, yet up 12.4 percent from the February tally.
The Association also reported 151 condominium sales during March. That was down 53.4 percent from March 2007, but up 42 transactions or 38.5 percent from February. March also marked the third consecutive month of increased condo resale activity."After flatlining late last year, the patient most assuredly is showing a pulse," said Jim Link, the Association's chief executive officer. "We're witnessing a slow, steady increase in activity that .seems likely to continue to gain momentum."

Link and Funk agreed that any increase in sales is likely to come at a slower pace than might be expected because of the presence of foreclosures, which take longer to close escrow than a traditional home sale.

Bank-owned properties may present an opportunity for buyers - although prices declines are not nearly as steep as some buyers expect - but Link and Funk said buyers who focus solely on foreclosures may well be missing other opportunities.

"Negotiating with a motivated seller, whose home is priced competitively from the beginning, may yield a superior bargain and a faster, smoother escrow than a foreclosure," Link said. "Plus, the condition of the home in a traditional purchase often is better than in foreclosures, which typically are sold ‘as is,' offering zero opportunity to negotiate for repairs or concessions in price."

Resale prices continue to react to the triple impact of today's larger inventory, the presence of foreclosures, and the simple reality that resale prices rose too quickly during the early years of this decade.

The median price of single-family homes sold during March was $475,000, down 21.0 percent from 12 months ago and off 10.5 percent from this February. With few exceptions, the median has been sliding every month since hitting the record high of $655,000 in June 2007.

The condominium median price stood at $31 5,000, down 21 .1 percent from a year ago and off 4.5 percent from February. It, too, has been sliding for many months, although it hovered for quite some time near the record high of $41 5,000 set in February 2006.

"It will take some time for foreclosure to work their way through the system and only then will prices stabilize," Funk said. "However, with each sale, the negative impact of foreclosures on prices will decrease."

While the inventory of homes is dramatically higher than the less than one-month supply common during the boom market, it is nowhere near the record levels set during the national recession of the early 1990s.

A total 7,193 properties were listed for sale throughout the San Fernando Valley at the end of March. That was up 26.6 percent from a year ago and 1.5 percent higher than February.
At the current pace of sales, the inventory represents a 12.7-month supply - clearly a buyers' market, but well below the 20 plus-month supply seen during the early 90s.

Antelope Valley Numbers, As of 5/1/2008
4511 Active homes on the market at an average price of $268,176, an additional 1394 homes are pending (in escrow) at an average price of $232,672 for a total of 5905 homes on the market and an average price of these homes at $259,794.

Compared to this time last year, the number of listings fell 4% and the average price fell 30%.

Abbreviated Newsletter This Month

I am suspending my articles this month becuase of a personal tragedy I need to address this week.

Rest assured I am safe, but I need to work on my safety and security through the legal process.
Please keep me in your thoughts and prayers, and I assure you my articles will return next month.

Thank you.

FAQ: What is PMI?

PMI is Private Mortgage Insurance. If you have one mortgage loan for the house that is over 80% of its assessed value, most lenders require you to pay PMI to protect them (the lender) in case you default on your loan. It is not required if you make a down payment on a home of at least 20% or if you have a 2nd mortgage loan (often called a “piggyback loan”) so the primary loan is at 80% or less.

I am seeing many of my buyers obtaining loans with PMI because the cost of this insurance is less than the interest on a piggyback loan. This is a drastic change from even a couple months ago. During the runup in housing earlier this decade, paying for PMI was nearly unheard of – it was cheaper to get a piggyback loan.

The cost of PMI can be paid separately as part of closing costs or can be integrated into the mortgage. It may be tax-deductible. FHA and VA loans have other requirements that may result in not having to pay for PMI.


“Wayne is a great REALTOR®!” But he is not an attorney or CPA. Any information and advice he provides are to the best of his ability and understanding, but is not guaranteed. If any topic is of importance to you in your home buying or home selling needs, please consult your attorney or CPA. If you need a referral to a qualified professional, please let Wayne know. He loves serving his community and will be glad to recommend those he has worked with.

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.

Spotlight On...Tax Changes (2nd of 3)

As I disclosed in January, I’m pleased to introduce a new column in the monthly newsletter. “Spotlight On...” will focus on our neighbors and small businesses, but per request, it will first look at tax changes affecting homeowners for its articles in February, March and April.

In May, we’ll start spotlighting a member of the community for this regular column. These are people and businesses making a difference at school, home or in the community.

Economic Stimulus Act of 2008 (HR 5140)
Although I have published information regarding rebate checks before, it is still the most frequently asked question I get regarding finances! This Spotlight will just hit the bullet points:

Rebate Amounts:
* $600 ($1,200 for joint returns)
* Net income tax liability if lower than $600, but not less than $300 ($600 for joint returns)
* Rebate increased by $300 for each qualifying child (generally, a child that qualifies for the Child Tax Credit)
* If you're disabled or get veterans benefits and are normally exempt from income taxes, you will get $300 ($600 for joint returns) - see below that you MUST file a 2007 return to get the checks, even if you are not required to.
* Fully refundable

Eligibility:
You must have either of the following:
* Qualifying income of at least $3,000 (qualifying income is defined as earned income, social security benefits, and/or disability benefits paid to veterans and surviving spouses).
* Net income tax liability of at least $1 and gross income that is more than the applicable standard deduction + 1 exemption amount (2 exemptions for Married Filing Jointly). Generally, net income tax liability is the regular tax + AMT (if any) less allowable credits other than the Child Tax Credit and refundable credits, such as the Earned Income Credit.
* The act does not apply to nonresident aliens, individuals who could be claimed as dependents, individuals who do not have valid SSNs, and estates and trusts.
* To get a rebate check, you MUST file a return for the 2007 Tax Year.

Phaseout:
* The rebate is reduced by 5% of adjusted gross income exceeding $75,000 ($150,000 for joint returns). * So for taxpayers without children, the maximum rebate is fully phased out at $87,000 ($174,000 for joint returns).

If you own a business and deduct large purchases under Section 179 as part of that, that deduction has increased to $250,000 (phaseout to start at $800,000) for 2008 (amounts would have been $128,000 and $510,000, respectively). In addition, There will be a 50% bonus depreciation for property placed in service in 2008. Both provisions apply to 2008 only.

Checks should begin to go out in May and should be all distribtued by December 2008. Let's hope we're one of the early ones!

I know a lot of you are thinking about using some of this money for down payments on your next home. Please contact me at changhomes@gmail.com to make sure we have an appropriate strategy between the deposits, downpayments and the loan!

Source: H&R Block
For additional details regarding the stimulus bill, please see my post at http://changhomesnews.blogspot.com/2008/02/special-economic-stimulus-bill-awaits.html

Tri-Valley Housing Market at a Glance

SCV Home Sales Hit Record Low: Sale of only 99 homes in January is down 45 percent from a year ago.

Home and condominium sales in the Santa Clarita Valley hit a record low in January, according to a report from the Southland Regional Association of Realtors released Wednesday.

Additionally, the median price of a single-family home sold in January fell below the $500,000 for the first time in three-and-a-half years.

The realtors organization reported that only 99 homes sold in January, which is down 42.4 percent from a year ago when 172 single-family homes changed owners.

The January number surpasses the previous record low set in September 2007 when 105 homes sold, according to the association.

The record high of 405 sales was set in June 2005.

Condos are also at a record low as a total of 31 condos closed escrow in the first month of 2008, which is a 57.7 percent decrease from January 2007, making it the lowest total on record for the realtors organization.

The previous record low was the 38 sales tallied for November 2007.

The record high continues to be the 204 condos sold in April 2003.

The median price of $460,000 for a single-family home was down 21.8 percent when compared to a year ago, according to the association's report.

January's median price is also considerably lower than the record high of $643,000 set in April 2006.

The association's statistics also show that the condominium median price for January was $284,900, a decrease of 20.9 percent from the prior year.

This was the first time in three-and-a-half years that a condo's median price went below the $300,000 mark.

The record high of $397,000 came two years ago in January 2006.

Statistics from the association show that the pending escrow total increased 21.9 percent on a month-to-month basis, which supports its belief that next month's sales numbers may be slightly higher.

But the pending sales are still down 48.7 percent compared to a year ago.
semblance of normalcy, stability and realistic pricing will begin to emerge."

The organization reports that a total of 2,163 active listings were reported at the end of January, up 22.9 percent from a year ago.

At the current pace of sales, the number represents a 16.6-month inventory, continuing a buyer's market.
The association considers a five-to-six-month inventory to be a balanced market.

Officials of the Southland Regional Association of Realtors believe that the inventory was much higher during the economic recession of the early 1990s, although statistics to support this belief are unavailable.



(Source: Santa Clarita Signal)

Information for San Fernando Valley and Antelope Valley have not been released. These figures should be released this week, so please check my weekly blog for the latest information - http://changhomesnews.blogspot.com/

Fast Facts in California Housing

* Calif. median home price - January 08: $430,370 (Source: C.A.R.)

* Calif. highest median home price by C.A.R. region January 08: Santa Barbara So. Coast $1,135,000 (Source: C.A.R.)

* Calif. lowest median home price by C.A.R. region January 08: High Desert $234,310 (Source: C.A.R.)

* Calif. First-time Buyer Affordability Index - Third Quarter 07: 33 percent (Source: C.A.R.)

* Mortgage rates - week ending 02/21: 30-yr. fixed: 6.04%; Fees/points: 0.6% 15-yr. fixed: 5.64%; Fees/points: 0.5% 1-yr. adjustable: 4.98%; Fees/points: 0.6% (Source: Freddie Mac)

For this week’s latest mortgage rates, check out my weekly blog at http://changhomesnews.blogspot.com/

March Holidays

March is...
Optimism Month
American Red Cross Month
Music in Our School Month
National Craft Month
National Frozen Food Month
National Noodle Month
National Nutrition Month
Woman’s History Month
Youth Art Month

Week-long Observances:
Week 1 – Newspaper in Our School Week
Week 2 – Bubble Gum Week
Week 2 – Crochet Week
Week 3 – National Poison Awareness Week (March 16-22)

March 1
National Pig Day
Peanut Butter Lover’s Day
Saint David’s Day in Wales (UK)
Share a Smile Day

March 2
Dr. Seuss’s Birthday
Read Across America Day

March 3
Doll Festival (in Japan)
National Anthem Day

March 4
National Poundcake Day

March 5
Multiple Personalities Day
Parachute was Invented

March 6
Dentist Day
Oreo Cookies go on sale for the 1st time in 1912

March 7
Telephone Patent granted in 1876

March 8
Working Women’s Day

March 9
Daylight Savings Time Begins: SPRING FORWARD! - Daylight Saving Time (DST) begins at 2 a.m. on March 9, so move clocks AHEAD one hour. DST ends at 2am on November 2, 2008.
Barbie’s Birthday
Buzzard Day
No Smoking Day
Panic Day

March 10
Commonwealth Day
First Paper Money Issued in 1862

March 11
First public basketball game in 1892

March 12
Girl Scout Day

March 13
Good Samaritan Day

March 14
Pi Day
Potato Chip Day

March 15
Ides of March

March 16
Everything You Do Is Right Day
Freedom of Information Day

March 17
Rubber Band Invented in 1845
St. Patrick’s Day
Submarine Day

March 18
Sparky the Fire Dog’s Birthday
First Walk in Space in 1965
Johnny Appleseed Day

March 19
Swallow’s Return Day – the traditional return of swallows to San Juan Capistrano

March 20
Big Bird’s Birthday
First Day of Spring!
National Quilting Day
Purim begins at sundown

March 21
Children’s Poetry Day
Chinese Lantern Festival
National Teen-agers Day
Single Parents’ Day

March 22
National Goof Off Day
National Sing-Out Day

March 23
Easter
Toast Day

March 24
Chocolate Covered Raisin Day
Harry Houdini’s Birthday

March 25
Greek Independence Day
Pancakes first made in New York City in 1882

March 26
Make Up Your Own Holiday Day

March 27
National “Joe” Day – everyone who hates their name can be called Joe this day

March 28
Something on a Stick Day

March 29
Coca-cola invented in 1886

March 30
Alaska Purchased from Russia in 1867
Doctor’s Day
Pencil with Eraser Patented in 1858

March 31
Cesar Chavez Day
First Map of the US published
Tater Day


Source: About.com’s Family Crafts

Spotlight On...Tax Changes (1st of 3)

As I disclosed last month, I’m pleased to introduce a new column in the monthly newsletter. “Spotlight On...” will focus on our neighbors and small businesses, but per request, it will first look at tax changes affecting homeowners for its articles in February, March and April.

In May, we’ll start spotlighting a member of the community for this regular column. These are people and businesses making a difference at school, home or in the community.

Mortgage Forgiveness Debt Relief Act of 2007
This law was signed in December. Here’s a summary:

The main attribute of this law is not being taxed on losses in selling your principal residence between January 1, 2007, and December 31, 2009. If you owe more than the home sells for, typically, the bank gives you a 1099 telling you that the forgiven portion of the mortgage needs to be considered as income. If you buy, build, or improve a residence with the loan, you can exclude up to $2 million ($1 million if married filing separately) from being considered as income.

For example, assume that a taxpayer has a $500,000 loan outstanding on his principal residence, of which $80,000 is equity debt. If $100,000 of the loan amount is discharged, only $20,000 ($100,000 discharged debt — $80,000 equity debt) of the debt discharge qualifies for the exclusion under the new provision.

There are other parts of the law addressing gain on sale of a home for surviving spouses, certain income for Volunteer firefighters and EMTs, and partnerships not filing their taxes.


Source: H&R Block

Do you know someone worth Spotlighting? Please send Mr. Chang an email at changhomes@gmail.com. It can be someone with an innovative business idea or product, someone starting their own business, or someone making a difference in school, after-school, work or the community in the Santa Clarita, Antelope or San Fernando Valleys.

Tri-Valley Housing Markets at a Glance

The following Housing Market Summaries were compiled from Southland Regional and Greater Antelope Valley Associations of REALTORS.

2007 Home Sales Down 35% in the San Fernando Valley, While Prices Post a Modest Increase

Home sales in the San Fernando Valley during 2007 declined a record 34.9 percent from the prior year, while the annual median price posted its smallest increase in many years, the Southland Regional Association of Realtors reported on Monday, Feb. 4.

A total of 6, 271 homes closed escrow compared to the 9,632 sales of 2006. The peak of the recent boom came in 2003 when Realtors completed 13,878 sales, but the record high was set in 1988 with 15,263 single-family transactions.

Annual home sales in the San Fernando Valley have been slowing since 2004.

Realtors managed and negotiated home and condominium sales during 2007 that generated $1.76 billion for buyers, sellers and the local economy.

That figure does not include the added millions of dollars home sales yield for related services, such as contractors, landscaping specialists, home improvement companies and manufacturers of furniture and appliances.

Condominium resale activity throughout the San Fernando Valley during 2007 fell for the fifth consecutive year, down 33.2 percent drop to 2,443 condo sales. However, annual condo sales have been lower – below 2,000 transactions from 1993 to 1995, including the record low of 1,607 set in 1993. The record high of 5,041 transactions was set in 2002.

The annual single-family median price came in at $611,933 – the highest on record. The increase of 1.0 percent was the lowest gain on record with each year posting slightly smaller gains since the 26.3 percent increase of 2003. This year’s annual median price beat the prior record of $605,917 set in 2006.

The annual condominium median price of $385,967 was down 2.3 percent from 2006 when the record high $394,917 annual condo median was posted. It was the first drop in the annual median since 1996. From 2000 to 2005 the annual condo median posted double-digit increases with the largest one of 28.7 percent coming in 2003.

There were 5,671 active listings throughout the San Fernando Valley at the end of December, an increase of 8.8 percent over a year ago.

At the current pace of sales, the inventory represents a 10.9-month supply – a buyers’ market, but a clear improvement from recent months when it went as high as a 16-month supply. For perspective, the record high was a 23-month supply set in February 1993. A balanced market is in the 5- to 6-month range.

December single-family sales plunged 51.6 percent compared to the prior year while condo sales were off 55.6 percent. Declines in the median price of homes and condos were 12.4 percent for homes and 16.5 percent for condos. Prices are still sticky, not dropping nearly as fast as sales would indicate they should.

2007 Home sales in the Santa Clarita Valley off 31%, annual median price falls 5.4%
2007 was the third consecutive year that sales of existing single-family homes in the Santa Clarita Valley declined while the annual median price of homes fell for the first time on record, the Southland Regional Association of Realtors reported on Monday, Feb. 4.

A total of 1,993 single-family homes changed owners last year, down 31.3 percent from the prior year. It was the lowest annual total since the association started keeping statistics in 1998. The record high of 3,869 home sales was set in 2004, the peak of the recent sellers’ boom market.

Likewise, the condominium annual tally of 841 condo sales was the lowest on record. It dropped 32.5 percent from the prior year, with three of the last four years posting sales declines after six consecutive years of typically double-digit increases in sales.

Realtors managed and negotiated home sales in the Santa Clarita Valley last year that generated $1.57 billion for buyers, sellers and the local economy. That figure does not include the added millions of dollars each sale yielded for related services, such as contractors, landscaping specialists, home improvement companies and manufacturers of furniture and appliances.

However, the market is at stalemate because sellers cling to boom market expectations and buyers incorrectly believe they can purchase a home at a dramatically reduced price. But even foreclosed properties listed for sale by lenders are not being priced with large discounts as lenders want to recoup their investment.

The annual median price of the 1,993 homes sold last year was $570,658, down 5.4 percent from the record high of $603,492 set in 2006. It was the first drop in the annual median since the association began keeping statistics in 1998.

The condominium annual median price of $353,333 was down 7.2 percent from the record high of $380,583 set in 2006. Just like single-family homes, the condo annual median posted the first decline on record. From 2001 to 2005 the condo annual median price posted double-digit gains with 2003 and 2004 at 28.3 percent and 28.7 percent respectively.

There were 2,100 active listings throughout the Santa Clarita Valley at the end of December, up 9.4 percent from a year ago, but down 10.3 percent from the November tally. At the current pace of sales, the inventory represents a 12.7-month supply – clearly a buyers’ market, but not as large as the 15.7-month supply reported in November.


Many more homes in the AV on the market; average price decreases

Currently there are 7876 homes actively listed in the Antelope Valley, according to the Greater Antelope Valley Association of REALTORS at an average price of $304,452.

This is almost double the 4783 listings noted in January at an average price of $319,860.

February Holidays

February is...
American Heart Month
American History Month
Black History Month
Children’s Dental Health Month
International Friendship Month
National Cherry Month
National Embroidery Month
National Grapefruit Month
National Snack Food Month
National Wild Bird Feeding Month
Responsible Pet Owners’ Month

February 1
National Freedom Day

February 2
Groundhog Day

February 3
Elmo’s Birthday (remember him from Sesame Street?)

February 4
Create a Vacuum Day

February 5
Super Tuesday: Primary Elections in California
Disaster Day
Mexico’s Constitution Day
National Weatherperson’s Day
Mardi Gras and Fat Tuesday

February 6
Ash Wednesday

February 7
Chinese New Year celebrates the Year of the Rat

February 8
Boy Scouts’ Day

February 9
Hershey’s Chocolate is founded
Toothache Day (makes me wonder if there’s a relationship between these 2 this day)

February 10
Umbrella Day

February 11
Clean Out Your Computer Day
Don’t Cry Over Spilled Milk Day
National Foundation Day in Japan
National Inventor’s Day, in honor of Thomas Edison’s birthday
White T-Shirt Day
February 12
Barbie Dolls go on sale for the first time (long ago)

February 13
Get a Different Name Day

February 14
Ferris Wheel Day
National Organ Donor Day
Saint Valentine’s Day

February 15
National Flag Day in Canada
National Gumdrop Day

February 16
Nylon was patented in 1937 by DuPont

February 17
Random Acts of Kindness Day
February 18
Family Day in Canada
President’s Day

February 19
Chocolate Mint Day

February 20
Hoodie Hog Day – you’re supposed to go outside to shout “Hoodie-hoo!” to scare away Winter and make way for Spring
Toothpick patented in 1872

February 21
Love Your Pet Day

February 22
Be Humble Day
World Thinking Day

February 23
International Dog Biscuit Appreciation Day

February 25
Paper Currency introduced in the U.S. in 1862

February 26
Carnival Day

February 27
No-Brainer Day
Polar Bear Day

February 28
Public Sleeping Day
National Chili Day

February 29
Leap Day


Sources: About.com and Over the Fence Newsletter

Fast Facts in California Housing, February 2008

For the latest updates on these facts, please see my weekly news blog at http://changhomesnews.blogspot.com/.


Calif. median home price - December 07: $475,460 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region December 07: Santa Barbara So. Coast $925,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region December 07: High Desert $244,330 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - Third Quarter 07: 24 percent (Source: C.A.R.)

Mortgage rates - week ending 01/24: 30-yr. fixed: 5.48%; Fees/points: 0.4% 15-yr. fixed: 4.95%; Fees/points: 0.4% 1-yr. adjustable: 4.99%; Fees/points: 0.6% (Source: Freddie Mac)

FAQ: What do I need to know about taxes now that I’m finally a homeowner?

First of all, congratulations on getting the home! This FAQ is for you, for homeowners who have been in a home for a little while, as well as those currently looking at their first home (to get an idea of the savings you can expect by being a homeowner!).

To make the most beneficial deductions, say goodbye to the simple 1040EZ. You’ll find most of the deductions in Schedule A, the Itemized Deductions form. Some of the big deductions include Mortgage Interest, Property Taxes, Private Mortgage Insurance (if the home is purchased after January 1, 2007) and Discount Points.

If you refinanced your home this past year, you cannot deduct these closing costs all in your taxes right now. It must be spread out over the entire life of the loan.

What you need:
* Property Tax Statement, including Supplemental Tax Statements. If you don’t have it, you can get an estimate online if the property is in Los Angeles County. Contact me for the link to the specific webpage in the Assessor’s Website.
* 1098 Statement from your mortgage lender. This shows the interest you paid the lender. You cannot multiply your monthly payments and assume that is what you put in Schedule A. You only can deduct the interest portion.
* 1099-INT Statement from your mortgage lender. You get this if you have an escrow account with your lender to pay for insurance and property taxes. This statement shows what the lender paid you for keeping your money in this separate account. Information on this screen goes to Schedule B on the Interest portion (not the Dividend portion).
* HUD-1 from your closing paperwork. This 1-2 page document lists all the fees and details for the loan in a tabular format. If you do not have this, contact me if I helped you find the home, otherwise, contact your lender.

Additional Deductions: If you have a home equity loan or line of credit, interest on such loans of up to $100,000 is deductible. It doesn’t matter how the money is used, as long as it is secured by your residence. If you moved to take a job, you may be able to deduct moving costs and relocation expenses. If you’re self-employed, you may be able to take home office deductions (be sure you measure the area you use regularly and exclusively for this!). Lastly, if you make any improvements to the home to alleviate a medical condition, like installing a handicap ramp, you may be able to deduct these under medical expenses.

What’s not deductible: homeowner’s insurance, HOA dues, additional payments, home repairs, depreciation, appraisal charges, title insurance, credit report fees, and state and local "recordation" transfer taxes (as some states call them). I read somewhere that local assessments that pay for neighborhood improvements such as Mello-Roos is NOT deductible.

Standard deductions may still be the best move for some homeowners, especially if the home was purchased towards the end of the year. Mortgage interest and other items on the Schedule A may remain less than the standard deduction. Contact your tax consultant for further details on your particular situation.


For further reading, please see IRS’ Publication 530 at http://www.irs.gov/publications/p530/index.html.

For a helpful recordkeeping chart for income and Schedule A, please contact me at changhomes@gmail.com.

Disclaimer: Mr. Chang is NOT a CPA or Tax Attorney. Any information and advice he provides are to the best of his ability and understanding, but is not guaranteed. If any topic is of importance to you in your home buying or home selling needs, please consult your attorney or CPA. If you need a referral to a qualified professional, please let Wayne know. He loves serving his community and will be happy to recommend those he has worked with.

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.

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’s moderate inventory of homes for sale unlikely to yield deep price discounts

Home sales during November in the San Fernando Valley dropped over 50 percent from a year ago as public reaction to the negative news about problems with sub-prime loans and tighter lending standards continues.

A total of 355 single-family homes and 141 condominiums changed owners in November, the Southland Regional Association of Realtors reported on Thursday, Jan. 2.

These sales numbers are reminescent of totals reported during the recession of the mid-1990's. However, unlike that recession, the inventory of homes for sale remains moderate indicating that, locally, prices will soften but not fall dramatically as some news reports imply.

The single-family sales total was 52.9 percent below a year ago yet one sale higher than the figure reported this October, which was a record low.

Condominium sales of 141 units were down 50.4 percent from November 2006, but up 10.2 percent from October. While condo sales are down dramatically from the recent boom, the November total is still well above the record low of 80 sales set in February 1993.

Indeed, while slower activity could make 2007 the worst year on record for local home resales, prices are dropping only moderately and appear unlikely to fall to levels reported during the recession of the 1990s.

The inventory of 7,505 active listings was up 23.2 percent from November 2006. At the current pace of sales, that represents a 15.1 month supply – clearly a buyers’ market, although still below the record high of 23 months set in February 1993.

However, the inventory was 50 percent below the record high of 14,976 active listings set in July 1992. During the 1990s the inventory hovered well above the 10,000 mark for multiple years, a fact that ultimately yielded a 29.2 percent drop in the median price.

The median price of single-family homes sold last month was $557,500, down $37,500 from the $595,00 median of November 2006 for a drop of 6.3 percent.

The condo median price at the end of November was $375,000, a decline of 4.1 percent from November 2006. The condo median is close to the record high of $415,000 set in February 2006.


Home sales slowdown in the Santa Clarita Valley appears to be easing

Despite ongoing national reports about slow home sales and troubles in the home loan industry, a total of 111 single-family homes and 38 condominiums sold during November throughout the Santa Clarita Valley, the Southland Regional Association of Realtors reported on Thursday, Jan. 2.

The single-family resale total was down 39.3 percent from a year ago, a decline that was below the 50 percent or higher drops reported in other Southern California communities, suggesting that local buyers recognize the opportunities that exist in today’s market.

The 38 condos that sold were down 56.8 percent from a year ago when the total was 88 sales. The November tally was the lowest condo sales total on record, beating the prior low of 42 sales set in October 2007.

The median price of single-family homes sold during November was $522,500, down 9.9 percent from a year ago. The median has been falling slowly since the record high of $643,000 was set in April of 2006. After nine years of increases in the annual median price, 2007 is likely to post a decline of about 5 percent.

The condominium median price reported during November of $316,000 was down 13.4 percent from November 2006, but increased 1.9 percent from the median reported in October. The condo record high of $397,000 was set in January 2006.

A total of 2, 341 properties were listed for sale throughout the Santa Clarita Valley at the end of November, an increase of 7.2 percent from a year ago, but down 4.2 percent from this October, which suggests that the pace of listings is slowing.

At the current rate of sales, the active inventory represents a 16-month supply – a clear indicator of a buyers’ market and well above the desired 5- to 6-month inventory that would represent a balanced market.

While statistics do not exist to prove the point, it is believed that today’s inventory is far less than the totals reported in the early 1990s when the nation and the state were going through a deep economic recession.


Fewer AV Homes listed versus November 2007

Currently there are 4783 homes actively listed in the Antelope Valley, according to the Greater Antelope Valley Association of REALTORS, and 574 pending homes, for a total of 5357 homes on the market.

This is a drop of 6% from early November figures, when the Antelope Valley had 5702 total residential listings.

January 2008 Holidays and Special Days

Month Long Observances:

• Eye Care Month
• Hot Tea Month
• National Blood Donor Month
• National Braille Literacy Month
• National Hobby Month
• National Soup Month
• National Staying Healthy Month
• National Thank You Month

January 1st
Betsy Ross's BirthdayBorn in 1752.
Ellis Island Aniversary- Ellis Island opened on this day in 1892.
Le Jour de l'An - French New Year
New Year's Day

January 2nd
Boo Boo Bear's Birthday - Yogi the Bear's little buddy.
Drinking Straw PatentedOn this day in 1888.
Run up the Flagpole and See if Anyone Salutes Day

January 3rd
Festival Of Sleep Day
Fruitcake Toss Day
Humiliation Day

January 4th
Trivia Day

January 5th
First Woman Governor Inaugurated1925 - inauguration of Nellie Ross as Wyoming's Governor. National Bird Day

January 6th
Bean Day
Cuddle Up Day
Dia de Reyes - Celebrate in Mexico.
Epiphany

January 7th
Old Rock Day

January 8th
Bubble Bath Day

January 9th
National Apricot Day
National Static Electricity Day

January 10th
First Meeting of United Nations - In London in 1946.
Peculiar People Day

January 11th
Milk Day - Milk delivered in bottles for the first time in 1878.
Secret Pal Day

January 12th
National Pharmacist Day
Work Harder Day

January 13th
Make Your Dreams Come True Day
Poetry Break Day
Rubber Duckie's Birthday - Sesame Street Character.

January 14th
Coming-of-Age Day - Celebrated in Japan on the second Monday of January.
National Dress Up Your Pet Day

January 15th
First Super Bowl Played in 1967. Green Bay (35) defeated Kansas City (10).

January 16th
National Nothing Day

January 18th
Hat Day - Third Friday in January.
Thesaurus Day
Winnie the Pooh Day - A.A. Milne's Birthday. Born in 1882.

January 19th
Popcorn Day

January 20th
Cheese Day
Inauguration Day
Penguin Awareness Day

January 21st
Dr. Martin Luther King Jr. Day - Honoring his birthday (born in 1929). It is observed on the Third Monday in January - the 21st in 2008.

National Hugging Day
Squirrel Appreciation Day

January 22nd
National Blonde Brownie Day

January 23rd
Measure Your Feet Day
National Handwriting Day

January 24th
Compliment Day
Eskimo Pie Patented By Christian Nelson in 1922.
Gold Discovered in California At Sutter's Mill in 1848.

January 25th
Burns Night - Celebrated in Scotland.
Opposite Day

January 26th
Australia Day - The day Sydney Australia was settled in 1778. January 27th
Chocolate Cake Day
Holocaust Memorial Day - Celebrated in the UK.

January 28th
Ernie's Birthday - Sesame Street Character.

January 29th
National Puzzle Day

January 31st
Backwards Day
National Kazoo Day - Usually celebrated on the last Thursday of January.

Courtesy: About.com Family Crafts

FAQ: How to Reduce Your Property Taxes this Year!

With the widely publicized reduction in home prices this past year, many homeowners are wondering about their upcoming property tax payment and looking for ways to save money.

While it might be too late to change this current property tax cycle, with the second payment due in a couple months, you can take steps to possibly save on this upcoming cycle of property taxes.

It is true that your Los Angeles County property tax is based on the price of your home when you bought it. Although prices in the county have only fallen about 8% from their highs, many people who have bought their home in the past couple of years may have a home worth less than the purchase price. For these homes, you can file an application for a “Decline in Value Reassessment” at http://assessor.lacounty.gov/extranet/list/newsList.aspx?newsid=78. The home must have been purchased between July 1, 2005 and June 30, 2007 to qualify for this temporary reduction in the tax.

The Assessor’s Office is sponsoring community meetings to publicize the program and assist homeowners with these reassessments. The only one in the Tri-Valley area of Northern LA County I am aware of is at the Lancaster Public Library, 601 West Lancaster Blvd. (zip 93535) on Wednesday, January 30 from 10am-11:30am. For more information, you can call the Assessor’s Office at Call (213)974-3211.

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.

5 Simple Ways to Increase a Home's Value

Good home maintenance is key to creating and preserving a home’s value. Not to mention, it also impresses potential buyers. Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.

1. Safety. Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.

2. Preventive maintenance. Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.

3. Conserve energy. Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.

4. Go green. Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.

5. Improve comfort. Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.

Source: The Associated Press, James and Morris Carey (12/29/07)

3 signs of predatory lending

1. They target you, seeking borrowers that may need cash due to medical issues, unemployment, and debt-related problems. Elderly, Minorities, Immigrants and those with low credit scores.

2. They charge unnecessary costs, especially overpriced insurance, adding in overpriced fixtures, appliances, and even free trips.

3. They give misleading or no information about loans, using bait-and-switch tactics by offering loans that seem almost too good to be true. What they initially offer is often lost in the process, and borrowers may not even realize that the cost or loan terms are not what they originally agreed to. Borrowers have been told that the FHA insures against property defects and loan fraud, neither of which is true.

(excerpted from Mortgage Fraud and Predatory Lending: What Every Agent Should Know, by MARIE SPODEK, GRI, AND JEROME MAYNE (Dearborn))

Predatory lending is a big problem in today’s economy, but know that not all loan officers or mortgage brokers are predatory. I am committed to keeping my friends and clients away from such ... I work closely with only quality lenders, and recommend only those I am confident to hang my reputation with.

For details, please send me an email, changhomes@gmail.com ...I have a guide on avoiding predatory lending as well as referrals to experienced lenders I know and trust.

Fast Facts in California Housing

• Calif. median home price - November 07: $488,640(Source: C.A.R.)
• Calif. highest median home price by C.A.R. region November 07: Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
• Calif. lowest median home price by C.A.R. region November 07: High Desert $262,650 (Source: C.A.R.)
• Calif. First-time Buyer Affordability Index - Third Quarter 07: 24 percent (Source: C.A.R.)
• Mortgage rates - week ending 12/27: 30-yr. fixed: 6.17%; Fees/points: 0.5% 15-yr. fixed: 5.79%; Fees/points: 0.5% 1-yr. adjustable: 5.53%; Fees/points: 0.7% (Source: Freddie Mac)