SchifferLine 1 November 2010

Timely Real Estate News…………………………………………….1 November 2010

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Pumpkins are said to ward off evil spirits….our annual Halloween quest
Frankly, when I was growing up in West Los Angeles, Halloween was more about “trick or treating” and getting lots of goodies from neighbors.  My sister and I would see all of our friends out in costumes carrying bags full of candy and surprises, marching up and down the street and knocking on our neighbors doors.  What was especially memorable were these strange, orange lanterns that glowed in the dark, like sentinels guarding front porches everywhere.  Of course, we had to have our own pumpkin and mom would bring home the best pumpkin they could find…and dad would show off his carving skills by notching this evil-looking face and place a candle in the middle.
 
Pumpkin carving is both a long and storied tradition in the United States, and in some ways, it is based on Irish myths and legends about a fellow named Jack who tricked the Devil to helping him ward off bar keepers who wanted him to pay for his drinks.  By using crosses to trick the devil, Jack was able to avoid the paying his bar tab but he alienated both God and the Devil, and he was sent packing with only one piece of burning coal, which Jack stuffed into a turnip….which help light his way as he wander the earth.  Thus came the term: Jack O’Lantern. 

The Irish brought this legend with them to America, and the first carved pumpkin was actually done here…not in Ireland….lots of trick and treaters, candy, surprises, and most of all, a party or two to celebrate Halloween, largely forgotten as a religious or historical event.  What is even more amazing to me is the fact that Halloween ranks as the #2 most popular retail holiday in the US.  (That doesn’t surprise me, if any of you were like me last Friday morning fighting the crowds at the local costume store looking last minute for just “the right thing” for my weekend costume parties. I had to fight my way into the store just to start looking, and they said it would be much worse later in the day.)

The practice of carving originated from an Irish myth about a man nicknamed “Stingy Jack.” According to the legend, Stingy Jack invited the Devil to have a drink with him. Later that night, Stingy Jack did not want to pay for his drink, so he persuaded the devil to turn himself into a coin that Jack could use to pay for their drinks. After the Devil did so, Jack decided to keep the money and put it into his pocket next to a silver cross. This cross prevented the Devil from returning to his original form.  Jack eventually freed the devil, under the condition that he would not trouble Jack for one year and if Jack should die, he would not claim his soul.

The following year, Jack tricked the Devil again into climbing into a tree to pick a piece of fruit. While the Devil was up in the tree, Jack carved a cross into the bark so that the devil could not come down until he promised Jack not to hassle him for another 10 years.  Soon after Jack died. As the legend goes, God would not tolerate such an insalubrious figure into heaven. The Devil, displeased by the trick Jack had played on him about how he needed to keep his word about not claiming his soul, would not permit Jack into hell. The Devil sent Jack off into the dark night with only a burning coal to light his way.  Jack put the coal into a carved-out turnip and has since been roaming the Earth with it. The Irish began to refer to this eerie figure as “Jack of the Lantern,” and eventually, “Jack O’ Lantern.”
In Ireland and Scotland, people began making their own versions of Jack’s lanterns by carving scary faces into turnips or potatoes and then placing them into windows or around doors to frighten away Stingy Jack and other roving evil spirits. When Irish settlers arrived in America, they found the native pumpkin to be larger and easier to carve as the perfect choice for jack-o-lanterns. Halloween didn’t really catch on big in the United States until the late 1800s.
Pumpkin carving has been an old tradition that will be practiced for many years to come. Every year as Halloween nears, families head out to pumpkin patches in hopes of finding the perfect ones to carve. This Halloween, I hope that you made your pumpkins looked as artistic as you could to keep those pesky spirits from entering your home!
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“Even in the worst markets, the bleeding is over.”  That’s great to know.
The chief economist for the National Association of Realtors, Lawrence Yun, said that he believes “the worst in homes sales is clearly over.  He went on to observe that “even in the worst markets, the bleeding has stopped”.  As the Realtor’s chief economist and senior vice president of research, he stressed that all real estate is local, and that in the San Francisco-San Jose area, the bottom has already occurred and prices are beginning to firm up. — “California’s housing market correction was short, sharp, and fast,” Yun said.

What we have seen here on the Westside, bargains continue to show up in the marketplace.  As Yun stressed, “people know that California home values are one of the most expensive in the country, and after initial hesitation, buyers realize that a $1 million home for $700,000 is a bargain.”  Tax credits boosted sales even more, but he predicted that it will take time to fully recover.  Prices are “back in line with historical norms and the only thing holding back full recovery are the job situation and psychological outlook. 

As I indicated in my Quarterly Newsletter, we are seeing continued strength in the market during the latter part of Summer as sales volumes continue well ahead of 2009 for year-to-date period, Prices are still in a state of flux and are continuing to show some softness, but as I am also always saying.. “If a property is well priced, it will sell immediately, many times with multiple offers”.

There are plenty of REAL buyers out there who know the value of the homes they are seeking to buy, and the money is there also. There are a number of all cash buyers also.  Those cash buyers are also looking for a bigger discount than a buyer who is in fact obtaining a loan.  Sellers are sometimes loath to give them that discount because their thinking is at the end of the day, “what difference does it make to me I still get my money”. 

However, with the loan/appraisal situation as it is today, there can be a big difference. Many times the contingency (due diligence) period with an call-cash buyer is short (10 days or so), while the escrow may be the traditional 45 – 60 days, within a very short period of time the seller knows that their home is in fact sold rather than waiting for a long time to hear from the bank that the loan has been approved. That is the advantage that an all cash buyer might have today.

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California home sales post second consecutive monthly gain in September;
median price down from August according to the California Association of Realtors
California home sales posted their second consecutive monthly gain in September, but were down from the same period a year ago, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
“We’ve seen a gradual improvement in the market over the past few months as we moved away from the influence of the tax credits, which pulled sales forward to the first part of the year,” said C.A.R. President Steve Goddard.  “Additionally, the current mortgage moratoria, which weren’t announced until the end of September, wouldn’t have affected September sales.”
Statewide home resale activity rose 3.8 percent in September to a seasonally adjusted annualized rate of 466,580, up from Augusts’ revised pace of 449,290, according to information collected by C.A.R. from more than 90 local REALTOR® associations statewide. 
The September pace was down 12.2 percent from the revised 531,180 sales pace recorded in September 2009.  In a separate report covering more localized statistics generated by C.A.R. and Data Quick Information Systems, 175 of the 341 cities and communities reporting showed an increase in their respective median home prices from a year ago.  Data Quick statistics are based on county records data rather than MLS information.  
Large changes in local median home prices typically indicate both local home price appreciation, and often, large shifts in the composition of housing market activity. Some of the variations in median home prices for September may be exaggerated due to compositional changes in housing demand. . Statewide, the 10 cities with the highest median home prices in California during September 2010 were: Los Altos, $1,567,500; Saratoga, $1,550,000; Palos Verdes Estates, $1,320,000; Manhattan Beach, $1,200,000; Laguna Beach, $1,112,500; Los Gatos, $1,059,000; Newport Beach, $965,000; Cupertino, $925,000; Rancho Palos Verdes, $886,000; Danville, $835,000. Statewide, the cities with the greatest median home price increases in September 2010 compared with the same period a year ago were: San Bernardino, 37 percent; Ridgecrest, 35 percent; Fairfield, 30 percent; Salinas, 30 percent; Lodi, 29 percent; Sonoma, 27 percent; Pomona, 27 percent; Escondido, 26 percent; Placentia, 24 percent; and Compton, 21 percent.

 
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Other signs point to a market gaining strength….
I know we continue to hear about the dismal construction market, with states like Nevada, Florida and Arizona having thousands of homes that will take years to absorb back into the market, so it’s nice to pass onto you that as of last week, housing starts for September were actually up 0.3% to a seasonally adjusted 610 unit pace, which is higher than the 579,000 that was anticipated.  The “good news is,” according to Coldwell Banker’s mortgage consultant, John Ciolino, “this represents the third consecutive month of expansion and actually the highest level of housing starts since April.  So this is a positive signs.”

However, John wouldn’t let the good news idle too long, he then noted that despite the new high in housing starts, building permits (another key barometer) were 539,00, which is below expectations and also the lowest level we’ve seen in more than a year.  Bottom line?  People need to gain back real confidence and security about their job and economic prospects before “we’ll see the market turn around.”  Jobless claims continue to hover at the 450,000 level, and until they dip below 400,000, Ciolino believes we still have a ways to go before “we’re out of the woods.” As predicted, interest rates, while still at historic lows have begun inching up some, and that is a reflection on the changes in the bond markets and the overall international economic situation.  It is still the time to take advantage of the low interest rates, particularly as the appraisal situation is changing once again, which due to some legislation that was recently passed, there will be further pushing bank appraisals to those companies that charge much lower fees, and generally will be from out of the area, thus totally unfamiliar with the properties here in West Los Angeles. This legislation further prohibits “interference” from outside sources such as a real estate professional (me) who would normally be able to give the appraiser the area comparables.  

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Local is local….meaning, the Westside continues to buck regional and national trends
According to National Board of Realtors top economist, all data and trends are “local”.  And that’s the bandwagon I’ve been on since we started publishing the semi-monthly SchifferLine.  So what is:  Local?  Local can be as local as your neighborhood — the street on which you live….the general community in which you live….and even the specific community in which you reside.  Whether it’s Beverly Hills, Beverly Hills Post Office, Brentwood or Bel-Air, this is my definition of “local”.  We have seen so many ups/downs these past three years when the market started going south, but as I continue to point out in every issue, some areas are up one month, down the next.  But as I review last month’s stats from the MLS #s, I take comfort that we have actually grown our overall sales volumes (a key indicator of market strength), and three of our four communities are even with year-to-date median sales prices vs. 2009.  Only Brentwood is lagging behind, but picking up steam. 

So, please don’t fret about the “news across the nation”…..we live in a fantastic area  that continues to show everyone why investing in Westside real estate remains one of the best decisions you can make.  However, having said that, you still require a seasoned, experience real estate agent who knows your neighborhood ….like me!  Call me.

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Clarification on the new law that is going into effect on January 1 2011 re short sales

As I mentioned there are significant statutory limitations as it relates to the first trust deed holder rights regarding deficiency judgments.  In review as of January 1, 2011 first trust deed holders cannot pursue sellers for a deficiency after a short sale has been approved.  This applies to only the senior lien holder and does not impact the rights of subordinate (junior) liens or home equity lines of credit (HELOC).

The fact is if the Seller commits fraud with respect to the sale of the real property or causes “waste” (which is defined as damaging the value of the real property that serves as security for the loan) then there is no limit on the ability of the Lender to seek damages.  The Lender will be able to “use their existing rights and remedies against” the Seller “or any third party for fraud or waste”.  These limitations make it even more important that there be absolutely no effort by the Seller to intentionally devalue their property in a Short Sale and that all parties must make sure that there is no fraud (i.e., nothing has been concealed from or misrepresented to the Short Sale Lender) including but not limited to correctly informing the Short Sale Lender of the value of the property and the Seller’s actual financial situation. 

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Green Tips

Actually I have two this time.. Apparently there is an organization called GreenHalloween.org that arranges for the swap of Halloween costumes.  This could be a welcome relief for some of us to   who have a collection of these “wonderful outfits” that we longer use for whatever the reasons.  Please go to their web site….www.greenhalloween.org. for more information.  Also I have been hearing that a number of dentists are interested in purchasing our extra candy, so you might want to check this out with your favorite dentist.

How many times have you heard that one of the first things one should do when they check into a hotel room (after checking for bed bugs of course) is to clean off the remote control for the TV?  Well, as it turns out, our cell phones are far dirtier than any remote control can ever begin to be.. so following are some helpful tips we all can use in cleaning off those ever increasing additions to our lives.

How to Clean a Cell Phone

Not only do germs accumulate on our phones from talking, but we eat while we’re on it too. Make-up and oils from our ears and faces build up, as do germs from our hands and pockets! Yeach! But – with some simple cleaning, your phone will not only look sharper, it will be healthier to use as well.
What You Will Need:

•  Disinfectant wipes
•  Rubbing alcohol
•  Soft cloths (lint free work best)
•  Soft bristled brush
•  Cotton swabs
•  Small dish
•  Window cleaner

The Cleaning Process:

1. Begin by using a disinfectant wipe or soft cloth dampened slightly with rubbing alcohol to remove any build-up from the face of the phone. This is the part that touches your face constantly so be diligent to remove all sweat and make-up grime.
2. Wipe the outer shell with a second disinfectant wipe or cloth dampened with alcohol.
3. Place a small amount of alcohol in the small dish. Dip the soft bristled brush or cotton swab into the alcohol and shake or squeeze to remove any excess liquid. Rub in between the keys and tighter areas to gently remove any dirt that the cloth was unable to reach.
4. If your phone is older and has plastic casing around the numbers, spray a cloth with window cleaner and use that to wipe it clean.
5. Use a very slightly damp cotton swab to gently clean AROUND the charger connection. You want to avoid getting liquids inside, but you’ll be surprised how much dirt accumulates around this area.
6. Allow your phone to dry thoroughly and it’s ready for use!
Additional Tips and Advice:
• Avoid spraying any cleaners directly onto your cell phone as the excess moisture could damage it. Always spray the cleaner onto a soft cloth first.
• There are also cloths designed for cleaning phones – but any disinfecting wipe should do the trick.
• Be careful not to allow any type of liquid to get behind the battery as this will impair the functioning of the phone.

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As usual, I have some wonderful properties for your consideration.  They include the grand custom home at the corner of Earls Court and Bel Air Crest Road, it is a very interesting and exciting home listed at $4,795,000,. I also have two Canyon homes for sale, both the Hermitage floor plan and their prices are $1.5, and $1.544,000 respectively.  I also have two lovely Canyon homes for lease for $6,200 and $6,900 respectively.  In addition I have a few properties that are not currently on the market, but will be coming on for either lease or sale in both Bel Air Crest or Mountaingate, so if you know anyone or have any interest yourself, please let me know