Hardest Hit Housing Market

Worst Market- California Central Valley

12-month change in home values:
Merced: -42.3
Stockton: -40
Salinas: -38.7
Modesto: -37.9
Riverside: -36.8
Vallejo: -34.5

The market hit hardest by the housing bubble is the Central Valley in California, where aggressive development and price hiking has yielded more homes than jobs. Now many homeowners owe more than their house is worth and are being forced into default.

Still, it's not all doom and gloom for the California housing market. The drop in home values has created an affordable market for first-time home buyers. And, on average, monthly sales have almost tripled from last year. Although the Valley has seen the worst of the crash, it may well be one of the first areas to recover.

To your success,

Oliver Graf
Real Estate Expert




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Real Estate Home Prices
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San Diego Based Real Estate Blog

Temporary Halt to Foreclosures and Evictions

Introduction

Fannie Mae is committed to assisting homeowners impacted by the national housing crisis and is taking additional steps aimed at keeping families in their homes. With the anticipated announcement by the Obama Administration of a foreclosure prevention and loan modification program, Fannie Mae is again instituting a temporary halt to all foreclosure sales on occupied single-family properties scheduled to occur from February 17 through March 6, 2009. The temporary foreclosure halt will apply to portfolio mortgages and MBS pool mortgages owned or guaranteed by Fannie Mae and to foreclosures of homes that are already in process. Fannie Mae is also extending its existing temporary halt of all eviction proceedings through March 6, 2009.

Foreclosures

The temporary foreclosure halt applies to all occupied single-family properties secured by conventional mortgage loans that have scheduled foreclosure sale dates between February 17 and March 6, 2009. Mortgages insured or guaranteed by a federal government agency are not eligible for the temporary foreclosure halt. Foreclosure sales may proceed on vacant properties.

This initiative does not affect mortgage loans that have not yet been referred to foreclosure. Servicers and foreclosure attorneys (or trustees) should follow the foreclosure policy guidance contained in the Fannie Mae Servicing Guide for all loans previously referred and for all new referrals as long as such actions do not result in foreclosure sales being scheduled during the halt period.

During this temporary halt period servicers will have additional time to work with borrowers facing foreclosure using Fannie Mae’s available foreclosure prevention options, including the Streamlined Modification Program announced, Introduction of the Streamlined Modification Program on December 12, 2008.

What do you think is the best way to deal with all the foreclosure inventory?

To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Real Estate Foreclosures
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Tips for Quick Turning a Property

6 Tips For Quick Turning (Flipping) A House

When flipping a house the first two tips are not about what to fix or change, but rather about time and money. Specifically, they are about how to determine how much to pay for your “quick turn property" in the first place. Read throught the first two with catuion then and make sure that you do this carefully.

1. Know Your Numbers

What price will the house sell for when it is finished? A clear idea of the ARV (after repair value) is necessary to safely make an offer on a property. Do not guess that you’ll sell the home for $20,000 more than what you put into it. You don’t decide what a home is worth - the market does, so get advice if necessary. Then subtract from the ARV all possible costs you will have, including price, buying costs, repair costs, holding costs, and the costs of selling. Now subtract the profit you want, and you have the highest price you should pay. Start with an offer lower than this, of course.

2. Schedule Properly

Countless house-flipping projects have gone wrong due to falling behind schedule. For example, you think you can get the plumber in and out of the house in the first week, but it takes a month, so you can’t close the walls up, and everything else gets behind schedule. Meanwhile your spending $2,500 per month on holding costs like loan payments, utilities, property taxes and insurance. Be sure to check before you finalize the offer, to see how long things like windows, plumbing and dry-walling will take. Also, make completion dates a part of any contracts you sign with contractors.

3. First Things First

On one of those “fliping homes” programs on television the other night, a young couple was running $10,000 over budget on their first fixer-upper investment (and six weeks behind schedule). They ran out of money and put the house on the market with a low quality looking yard and stains visible on the front wall. Of course buyers would see these things first, making a bad impression. You can avoid this by starting with changes that are most important. Then if you run out of money or time, you’ve already done the things that will make the home sell.

4. Figure The ROI Of Improvements

The Return-on-investment(ROI) for each possible improvement should determine what you do to the home. You’ll be guessing at times, but the principle is that you do only those things which increase the value of the home substantially more than what they cost. Such high-ROI improvements vary by area and by type of home, but they typically include painting, carpeting, landscaping, and finishing unfinished space. With a small house, you might get new flowers and bushes, fresh paint, and all new carpeting for less than $7,000, and possibly raise the market value of the home by $14,000.

5. Know Your Buyers

A single story spanish style home in a neighborhood full of retired couples, won’t sell well to the younger crowd. Know what kinds of buyers are likely to want the home (and neighborhood) before you start. Then, after improving it with those buyers in mind, market it appropriately. You or your agent should identify and advertise the benefits that matter to your buyers, whether this includes “close to stores” or “country living.”

6. Price It Right

Selling fast means you save those holding costs. You may also have other projects waiting for that money. To sell fast, price it slightly below market value - and let buyers know it’s a deal. It may seem that if you sell for $3,000 under market, you’re losing $3,000, but you are possibly saving a couple thousand in the holding costs you’ll pay if it takes an extra six weeks to sell at a higher price. Also, if you are a serious investor, flipping a house fast means getting the money into the next project fast. Buy right, and use the other tips here, and there should be plenty of profit left in any case.

To your success,

Oliver Graf
Real Estate Expert
Follow me on Twitter: Twitter.com/OliverGraf360



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Real Estate Buying
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Top 10 Worst Metro Regions For Foreclosures toward the end of 2008

The foreclosure carnage while not sole contained to Florida, California, Nevada, and Arizona, is definitely concentrated there. Of the top 20 metro regions with the worst foreclosure percentage, only Detroit and Atlanta are outside of these 4 states.

22 cities have foreclosure rates over 1 percent, 45 have a foreclosure rate over a half a percent. So looking at the big picture, the foreclosure crisis is contained to a subsection of the country that had their homes priced too high by speculators.

With a 12 percent drop in foreclosures this past month we may have rode the worst of this foreclosure wave out. Now it is important to see how the economy will affect housing inventory. If we go into a bad recession then we may be facing another wave of foreclosure in the near future.

Top 10 Worst Metro Regions For Foreclosures toward the end of 2008

1. Stockton, CA 3.69% of homes in foreclosure
2. Las Vegas, NV 3.48%
3. Riverside / San Bernardino, CA 3.09%
4. Bakersfield, CA 2.58%
5. Fort Lauderdale, FL 2.30%
6. Phoenix / Mesa AZ 2.11%
7. Sacramento, CA 1.97%
8. Orlando, FL 1.87%
9. Fresno, CA 1.68%
10. Oakland, CA 1.64%

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Real Estate Market Areas
Real Estate Blog
Real Estate Foreclosures
San Diego Real Estate Blog

Home Inspections are a must in California Real Estate

California Real Estate Home Inspections



Whether you have decided on selling your home or buying a real estate in California, the very first thing that you need to think about is a home inspection. Home inspection is a duly processed method of checking out on the overall status of the property to determine those regions that require both the major and minor repairs and to change anything that has been terribly damaged.

Home inspections must only be done by the licensed home inspector. All over California, home inspection services are widely offered by the credible agencies. When you are into the task of personally looking for a home inspector, be sure to ask for his credentials to speak highly of the trainings that he had undergone. This professional is hence obligated to point out any damaged parts in and out of the property.

All portions of the house need to be checked like the basement, plumbing, roof, air conditioners, and most importantly the electrical wirings around. It is the responsibility of the home inspector to declare the safety or complications of the house. After which, a home inspection report detailing everything has to be issued to the requesting party. If you are the seller, then this will guide you with how you will price the house. Or if you are the buyer, you can be properly enlightened with the negotiation that you should display. Furthermore, you can decide on whether to make a bargain or do some counter offers with the seller.

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Real Estate Home Inspection
Real Estate Inspection Prices
Real Estate Market News
Real Estate Foreclosures

Median Home Prices Keep Dropping

The median price continues to fall and if the trend holds it should be under $400,000 by year’s end. That will be close to a 40% decline.

From the figures in the MLS the Median price of all homes sold last month (September) comes in at $429,000. That’s down another $11,000 from August.

As of October 4, 2008, there were 4,232 pending sales in Orange County with a median asking price of $399,500. My tracking of pending sales has been an accurate predictor of future prices thus far and it will be interesting to see if the trend holds true.

I have a lot of contacts in the REO business and I’m being told that the number of BPO (broker price opinion) orders are high. Lenders order BPO’s when a property enters foreclosure to get an idea of what the property is worth for when it’s an REO or for a short sale negotiation. These contacts feel that the next wave of foreclosures could be big. Not surprising considering everyone who bought for about a two to three year period is underwater.

Even the house next door to mine is empty and the lawn is brown. It would have sold for more than $800,000 two years ago. I’m told no neighborhood will be immune in the next wave.

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Real Estate Home Prices
Real Estate News
Real Estate Market Update

The American Recovery and Reinvestment Act of 2009

On Tuesday, February 17, 2009, the American Recovery and Reinvestment Act of 2009 (H.R.1) was signed into law by President Obama. The $787 billion economic stimulus package will impact a vast number of areas in the U.S. economy and the President is hopeful that the broad spectrum spending injection will initiate upward movement in all economic and geographic areas of the United States.

The real estate market benefited from a number of the Act's provisions.

(1) Homebuyer Tax Credit – "The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser."

Here is a chart that explains the benefits - National Association of Realtors First Time Home Buyer Tax Credit Chart.

(2) FHA, Fannie Mae and Freddie Mac Loan Limits – "The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750."

(3) Neighborhood Stabilization – "Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2089 (Public Law 110-289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties."

(4) Commercial Real Estate – "Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commercial property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program."

(5) Low Income Housing Grants – "Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations."

(6) Rural Housing Service - "The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners."

The above selected provisions of The American Recovery and Reinvestment Act of 2009 are listed from the National Association of Realtors website located at:
http://www.realtor.org/government_affairs/gapublic/american_recovery_reinvestment_act_home
The Final Text of Conference Reports on H.R.1-The American Recovery and Reinvestment Act of 2009 can be found at the following location:
http://www.whitehouse.gov/the_press_office/arra_public_review/

Please let us know if you have any questions. There are great benefits available for first time home buyers and those buyers who have not purchased a home in the last 3 years.

Carpe Diem.Eco-friendly $$tip..Energy mngmt. systems

Energy management systems can put you back in the drivers seat and save you $$$


Check out: http://www.ecohomemagazine.com/home-technology/real-time-feedback.aspx

EB-5 program. The power of foreign real estate investment in the US

Check out this great link...

...http://rejournals.com/news/contentview.asp?c=212227

What Happens When the Bohemians Leave Bohemia?

Over the past decade of "prosperity", up-and-coming enclaves such as Eagle Rock in Los Angeles and the Lower East Side in Manhattan gained residents -- and coffee shops, restaurants and design stores.

In Eagle Rock, the new bourgeouis bohemians ("bo-bo"s) arrived, flush with web start-up capital, screenwriting lucre and steady paychecks from architecture gigs. The median sale price of a home in Eagle Rock rose from $260,000 in 2000 to $620,000 in 2005

Derelict buildings gained eager new tenants with "big ideas" for retail. Old-school businesses such as car repair shops were replaced by hip new eateries and purveyors of design and antiques.

But, alas, the economy has soured and the wave of gentrification seems to have receded. The neighborhood has reverted to being its quiet, modest and often, charming, self. Maybe it reminds people why they moved there in the first place. [Source]

Jamie Adner

Your photos in Street View

Street View on Google Maps opened up a whole new world by sharing 360 degree street-level imagery of towns and cities across Australia and in many other countries around the world. Today, we've made it even easier to virtually visit and learn about the world's landmarks.

We've matched popular user-contributed photos from Panoramio to famous locations shown in Street View. In panoramas for which we've identified a photo-match, thumbnails of user photos will appear on the top-right; clicking the thumbnails will display the user photos that match that location.

You can also connect directly to the community behind this great photo content - a link to the author's Panoramio page is shown with every user photo.

Here's how it looks for our beautiful Harbour Bridge:


And for Vlamingh Head lighthouse in Western Australia:


The many Australians who use Google Maps to virtually visit places like Paris to see the famous Eiffel Tower or the Notre Dame cathedral in Street View can now also browse creative user photos taken in the vicinity.

You'll be able to see these places closer up, and see images taken at different times of day, from different angles - showing more about the place than you can see in Street View alone.

The feature is available in many other places too: New York, San Francisco, Rome, Tokyo, Barcelona, and New Zealand, to name a few.

If you're a Panoramio user, you may already have a photo in Street View. If not, it's easy - just publish your best photos and remember to geo-tag them on the map roughly where you took them. Then Google's state-of-the-art image-matching algorithms will analyse them later to see if they're a good match for a Street View location.



Posted by Andrew Foster, Product Manager

Palm Springs Real Estate activity for 2/24/09

Palm Springs homes for sale  Palm Springs condos for sale Palm Springs real estate blogs

Here's the activity for Tuesday, 2/24/09.  Quite a bit of activity......

Central Palm Springs:

New Listings:

2015 E Belding Dr., Sunrise Park, 3/2, $399,500.

In Escrow:

760 Violeta Dr., #760, St Tropez Villas, 2/2, $269,000.

1490 Via Roberto Miguel, El Rancho Vista Estates, 3/2, $199,900.

1213 E Verbena Dr., Ruth Hardy Park, 5/4.5, $400,000.

Sold:

1189 Primer Cir., Sunrise Racquet Club, 2/2, $235,000.

211 N Sunset Way, Sunrise Park, 3/2, $345,000.

312 W Via Sol, Little Tuscany, 4/3, $540,000.

South Palm Springs:

New Listings:

2001 E Camino Paracela #P110, Mesquite Country Club 2/2, $209,900.

2701 E Mesquite Ave., #L53, Mesquite Country Club, 2/2, $229,000.

163 Desert Lakes Dr., Seven Lakes Country Club, 2/2, $319,000.

1207 S Calle De Maria, Deepwell, 2/2, $995,000.

In Escrow:

1035 Andreas Palms Dr., Andreas Palms, 4/5, $734,800.

2212 S Caliente Rd., Canyon North, 3/3, $749,000.

Sold:

1056 S Manzanita Ave., Deepwell, 4/3,  $765,000.

Contact me with questions!  Thanks for visiting my blog.  Please share with your friend, neighbors, etc if you find it interesting, helpful, etc.

Source: Desert Area MLS.  Listings are not necessarily those of Greater Palm Springs Realty/Russell Hill

Russell Hill    760.902.3121    RussellHill@dc.rr.com

West Hollywood Gets More Mixed-Use Projects

Attention those who enjoyed the deli counter at Jons or a drive-thru burger at Carl's Jr -- these two venerable La Brea institutions may soon be gone, each replaced by a large mixed-use project.

A 6-story, 187-unit apartment building with 70,359 square feet of retail space will be built at the Jons site, at the southeast corner of Fountain and LaBrea (rendering above). The open sky of the big parking lot will be replaced by a large block of a building. A similar project by the same developer will rise on LaBrea close to Santa Monica at the Carl’s Jr site.

The developers are wisely constructing rental units since there are too many over-priced condos for sale and coming to market in the next few years. Renters will appreciate the central location and the retail, restaurants and nightspots close by (West Hollywood Gateway, Formosa Café, Jones…). The area is noisy and urban -- a great place to be renting, but not an ideal place to own.

These two new developments, along with the Movietown Plaza development at the Trader Joe's site at Poinsettia and Santa Monica, are bringing high-density living to the east side of West Hollywood. The city is gaining a Manhattan-type flavor: low-rise living, culture and entertainment at one's fingertips.

For those whose driving mantra was "take Fountain" to get across town -- you may find that Willoughby is your new (secret) corridor.

Updated 5/18/09: Curbed LA reports that the plans for the mixed use project at 7141 Santa Monica Boulevard are on hold, rescuing, for now, the Faith Plating Building, one of Frank Gehry's early projects.

Various Real Estate Statistics

On Sunday, February 22nd, The Mobile Press Register printed a few statistics regarding real estate in our area. All of which is Good News if you are currently thinking about buying a new home or investment home. This is definitely a great time to buy.

• The 2008 Mobile county foreclosure rate is currently at .99%, which is down 19% from 2007.


• The house prices are 4.97% higher in the 3rd quarter of 2008 from the same time in 2007.


• The average weekly wages is up 3.4% in 08 as compared to 2007.


• Interest Rates are the lowest they have ever been, less than 5%.


• First time home buyers can get an $8000 tax credit, which could result into a tax refund. You will qualify as first time home buyer if you have not purchased a home in last 3 years.
  

Carpe Diem..Improving Indoor air quality in your home/bldg can save you$$

Indoor Air Quality

Topic Snapshot:
People spend a large portion of their time inside homes and offices. In fact, the U.S. Environmental Protection Agency estimates that most people spend 90 to 95 percent of their time indoors. This makes indoor air quality very important to health. Harmful gasses and particles can compromise indoor air quality. Ensuring that combustion sources and heating, ventilation, and air conditioning equipment are working properly is a great place to start. Ensuring that new furnishings, carpets, and cabinetry contain safe, low-emitting materials helps protect the quality of air in homes and commercial buildings. Taking a careful look at cleaning and maintenance products also helps reduce the likelihood of unintentionally compromising indoor air quality.

Improving ventilation (increasing the amount of outdoor air coming in) can significantly reduce the concentration of indoor air pollutants. Air cleaners can remove particles from air, but may not be equipped to reduce the amount of gaseous pollutants in air. Another method for improving the quality of indoor air is source control, removing individual sources of pollutants. There are a variety of means to help improve indoor air quality.

Estimated Cost Savings & Benefits:
Typically the most cost-effective option for improving indoor air quality is source control. Any new combustion sources, materials, furnishings, or cleaning products in the home or in a building are potential sources of indoor air pollution. Careful analysis of products prior to purchase can help. The operating myth is that improving home and/or building ventilation systems can actually increase energy costs. Proper sizing and cleaning of heating, ventilation, and air conditioning (HVAC) systems can actually save money on energy costs and improve indoor air quality. Even simple filter cleaning and/or replacement helps HVAC systems operate more efficiently and improves indoor air quality.

The benefits of protecting indoor air quality are significant. Improved indoor air quality can have positive effects on human health, productivity, and comfort. Canadian researchers have measured the relationships between employee productivity and indoor air quality and found that reduced indoor pollutant levels resulted in reductions in absenteeism.

Issues:
Improving indoor air quality in an apartment building can be more challenging if the building owner or manager is the only person who can address sources of indoor air pollution. The first step is to alert management, in written form, of any potential issues with indoor air quality and encourage building management to follow EPA's IAQ Building Education and Assessment Model (I-BEAM). It is sometimes possible to help building owners and their managers see the financial benefits of improving indoor air quality in the form of increased tenant retention and lease rates, reduced liabilities, and improved resale value.

As people spend a significant portion of their day in office buildings, IAQ is an issue in these environments as well. Office buildings can have significant air quality issues. If you or others in your office are experiencing problems with health and/or comfort and you suspect poor indoor air quality is the cause, EPA recommends that you talk to your supervisor, your personal physician, and/or the state or local health department.

The good news is that sometimes solving indoor air quality problems is possible and not always unreasonably expensive. With proper analysis of HVAC systems and other sources of indoor pollutants, building managers can sometimes turn "sick" buildings into relatively healthier environments.

Regional Issues:
In cooler climates, outdoor temperatures can make it more challenging to improve ventilation by simply opening a few windows in your home or in commercial buildings. Mechanical ventilation systems, proper cleaning, source control, and air cleaners may be good options.

In warmer, humid climates, high temperatures and humidity levels can increase the concentration of some pollutants. There are some additional climate-related challenges with respect to windows and mechanical systems.

Installation (Getting It Done):
A range of professionals address indoor air quality issues. Selected HVAC contractors are capable of helping homeowners and building owners make decisions that can result in improved indoor air quality. Selected interior designers are now more cognizant of the types of design decisions that contribute to indoor air pollution or to healthier homes and buildings. As with any design, construction, and/or maintenance decision, it is a good idea to get two or three bids from different contractors. Even though this may be a bit more time-consuming, the end result is usually a more cost-effective and informed decision. There are no guarantees with indoor air quality, but informed decision-making can result in substantial improvements to health and productivity.

More Information On This Topic:

U.S. Department of Energy's Building Technologies Program: Indoor Air Quality Research and Development

U.S. Environmental Protection Agency: An Introduction to Indoor Air Quality

U.S. Environmental Protection Agency: Indoor Air Quality in Large Buildings

U.S. Environmental Protection Agency: The Inside Story: A Guide to Indoor Air Quality

Palm Springs Real Estate activity for 2/19/09-2/23/09

Palm Springs Homes for sale  Palm Springs condos for sale  Palm Springs real estate blogs

Here's the activity for the last several days.  Sorry for the delay!

Central Palm Springs:

New Listings:

1150 E Amado Rd., #20A2, Casa Verde, 1/1, $113,900.

1473 Tiffany Cir., S, Rose Garden, 2/2, $202,500.

858 Village Square N., Village Racquet Club, 3/3, $249,000.

640 S Calle Petunia, Sundial Condos, 2/2, $249,000.

500 W Arenas Rd., #1, 500 West, 2/3, $339,000.

506 N Sunset Way, Sun Villas, 3/2, $234,900.

1135 N Sunrise Way, Ruth Hardy Park, 3/2, $339,000.

3480 E Chia Rd., El Rancho Vista Estates, 3/2, $370,000.

665 Camino Norte, Las Palmas Heights, 4/4.5, $1,299,000.

888 W Via Vadera, Vista Las Palmas, 3/2.5, $1,349,000.

1150 N Via Monte Vista, Old Las Palmas, 3/3.5, $1,499,999.

In Escrow:

255 S Avenida Caballeros, #116, Villa Caballeros, 2/2, $135,900.

1854 N Mira Loma Way, Casa De Oro, 2/2, $141,900.

436 E Club Dr., Village Racquet Club, 3/3, $209,900.

358 Terra Vita, Terra Vita, 3/3, $344,000.

241 N Farrell Dr., Sunrise Park, 4/2.5, $397,000.

1133 E Tachevah Dr., Ruth Hardy Park, 4/3, $475,000.

611 W Linda Vista Dr., Tennis Club, 4/3, $1,199,000.

2417 Tuscany Heights Dr., Tuscany Heights, 3/3.5, $1,395,000.

Sold:

1100 N Vista Vespero, Vista Las Palmas, 5/5, $1,010,000.

South Palm Springs:

New Listings:

1950 S Palm Canyon Dr., #103, Sandstone Villas, 2/2, $149,000.

2568 S Sierra Madre, Villa Roma, 2/2, $199,900.

6208 Paseo De La Palma, Tahquitz Creek Villas, 2/2, $225,000.

1736 Capri Cir., Casa Sonora, 3/2, $235,000.

255 E Avenida Granada, #724, Canyon Granada, 2/2, $249,000.

1315 Primavera Dr., N., Deepwell Ranch, 2/2, $325,000.

499 Desert Lakes Cir., Seven Lakes Country Club, 3/3, $340,000.

2884 Greco Ct., Canyon Heights, 2/2.5, $410,000.

2106 S Divot Ln., Tahquitz Creek Golf, 3/2, $350,000.

2918 E Alta Loma Dr., Los Compadres, 4/2.5, $429,900.

103 W Camino Encanto, The Mesa, 3/2, $595,000.

1160 E Anza Dr., Twin Palms, 4/2, $599,000.

1588 S Cerritos Dr., Los Compadres, 4/3, $599,900.

688 S Indian Trl., Warm Sands, 3/3, $639,000.

In Escrow:

5225 E Waverly Dr., #69, Palm Canyon Villas, 2/2, $84,900.

1510 S Camino Real, #310A, Biltmore, 2/2, $135,000.

2866 La Cadena Ct., Canyon Heights, 3/3, $449,000.

1811 Sandcliff Rd., Garden Villas West, 3/2, $275,000.

1940 S Yucca Pl., Twin Palms, 3/3, $394,900.

1425 S Calle Palo Fiero, Tahquitz River Estates, 4/3.75, $449,000.

1000 E Sierra Way, Canyon North, 4/3.5, $679,000.

1056 S Manzanita, Deepwell, 4/3, $799,000 (went contingent 1/23/09)

Sold:

221 E La Verne Way, #F, Casa Canyon, 2/3, $237,000.

2065 S Caliente Rd., Canyon South 1, 2/2, $264,000.

2396 S Sierra Madre, Canyon View Estates, 3/2, $285,000.

615 E Ocotillo Ave., Tahquitz River Estates, 3/2,  $425,000.

1650 E Mesquite Ave., Tahquitz River Estates, 4/2, $525,000.

182 E Morongo Rd., Tahquitz River Estates, 3/2.5, $719,000.

Thanks for visiting my real estate blog.  I am available if you have any questions, or if you want to see any of these for sale homes!

Russell Hill     760.902.3121     RussellHill@dc.rr.com

Where's the Million Dollar Market Heading?

(click chart for more detail)

Where's the market heading? Are sales picking up or are they slowing down? This chart attempts to give a snapshot of one market, an aggregate of four Los Angeles neighborhoods:

• Sunset Strip - Hollywood Hills West (Area 3)
• West Hollywood Area (Area 10)
• Beverly Center - Miracle Mile (Area 19)
• Hancock Park - Wilshire (Area 18)

This market is neither the Westside nor the East side, but covers a swath smack in the middle of Los Angeles. The median sale price in this area was $1.10 million in January 2008, declining 8.3% to $1.00 million in January 2009. It's neither REO-land nor ultra-luxury territory, but captures the under $1 million and over $1 million market.

Here's the way to look at this chart. If the 12-month moving average (green) trends above the annualized 3-month moving average (pink), sales are declining and the market is "slowing down". If the 12-month moving average trends below the annualized 3-month moving average, sales are increasing, and the market is "picking up".

2008 was a mixed bag. From April - October, sales were in an uptrend. During the rest of the year, sales were in a downtrend.

For the first six months of 2008, sales were above the end of 2007 levels following the first credit crisis in September 2007. The uptrend that began in January 2008 (improving 'confidence' in the market) continued through June 2008, and then reversed.

The December 2008 and January 2009 datapoints reflect the economic wipeout of September and October of 2008. All signs are that this market is still decelerating. No huge surprise. (Consider that as of yesterday, the S & P 500 index was down 25.3% since the beginning of the year!)

Two trends are apparent from this chart: 1) the consistent overall slowing of the market -- a 29% decline in sales volume from January 2008 to January 2009, and; 2) the consistent volatility of the market, which speeds up and slows down, and like, the equities market, consistently surprises us with its unpredictable course.

Jamie Adner

Carpe Diem..Eco tip of the day..Energy efficient windows can save you $$

Energy-Efficient Windows

Technology Snapshot & Benefits:
Significant economic savings can come from modern windows. Unless recently upgraded, your windows are likely a major source of heat loss. In cold climates, windows transfer heating energy out of the building through both conduction and radiation. Additionally, depending upon how weather-tight the frame and seals, windows may transfer energy by convection as well. This situation is reversed in hot climates, with windows allowing heat into a building and forcing expensive cooling systems to work overtime.

Typical walls in homes are insulated to a level of R-11 to R-19, yet a single pane of standard glass has an insulating value of about R-1. In other words, heat can leak out of, or into, a building about 11 to 19 times more easily through glass than through the wall. This is why your grandparents insisted on installing �storm� windows for the winter in northern climates � to boost window-insulating value to R-2, or perhaps R-2.5 with a good seal and tightly trapped air between the panes.

Modern windows using specially developed E-glass are much more effective at keeping heat and cold where you want them. Most progressive window manufacturers offer several lines of energy efficient glass with �R� values in excess of R-4. New designs still in laboratory development promise R-values of 10 or more.

Since glass is a fixed part of the building envelope, it performs 24 hours each and every day. With energy efficient glass, less fuel is required for a given level of comfort with corresponding cost savings and pollution savings.

Estimated Cost Savings:
Assuming the same or greater level of comfort that you are used to, you can save a lot of energy and money by eliminating heat loss or gain through windows. It is common in Northern climates to save 30-40% of annual heating costs with super-efficient windows. With a monthly heating bill of $200 dollars, this equates to an estimated savings of $60-80 per month. Some large homes cost as much as $600 per month to heat, and the savings for these homes could approach $240 per month.

The value of new windows depends upon how much glass area you have in your home and upon local climate. The National Climatic Data Center (NCDC) provides an historical record of departures of average daily temperatures from a reference temperature of 65 degrees F. This information is available as �Heating Degree-Days per Year� and provides a very useful estimate of how much energy can leak through windows.

Issues:
For new homes, getting efficient glass is simply a matter of working with a builder or architect to specify performance glass. With older homes, the choice of retrofit is a little more problematic. It is unlikely that the glass in your house will suddenly �conk out� or reach the end of its useful life like a failed furnace or hot water heater. Therefore, you will be faced with the prospect of switching out older intact glass panels for newer glass panels. Nonetheless, this can improve comfort and lower operating expenses. Capital costs can be $5,000 to $10,000 or more, and still make sound economic sense when combined with a program of debt consolidation and/or refinancing.

Regional Issues:
Selection of glass may depend on local climates. Windows can be �tuned� by the manufacturer for southern or northern exposures and for different climates. Be sure that you get the right glass for you.

Installation (Getting It Done):
In addition to considering new windows throughout, also consider supplementary performance windows that can be treated as storm windows, in addition to your existing glass. Particularly if your house has period architecture, this option allows you to retain the original glazing and sash while enjoying economic savings and the enhanced comfort of performance windows. Be sure to get bids from two or three (or more) window manufacturers, installers and/or glazing contractors to gain immediate perspective on the true costs of windows and installation in your area.

Lake living..Full amen. bldg..2020 Lincoln Park

Carpe Diem..Great buy in the Heart of Bucktown

Greater Palm Springs Realty

Palm Springs Real Estate Palm Springs homes for sale  Palm Springs condos for sale

I am delighted to announce my move to Greater Palm Springs Realty.  I made the decision after careful deliberation and feel confident that I have made the right decision.  Greater Palm Springs Realty and its sister company, Vacation Palm Springs, has great presence on the internet. I am certain that their internet marketing, along with mine, will benefit my clients - both sellers and buyers - tremendously.  Contact me if you're interested in selling or buying! 

Russell Hill    760.902.3121     RussellHill@dc.rr.com

Rowing around the world

Last month, Oliver (Olly) Hicks set sail from Recherche Bay in Tasmania, Australia, attempting to be the first man to row around the world solo. While he was able to row across the Atlantic in 4 months in 2005, this trip around the world will take well over a year. Google is proud to be a technology partner in this endeavor because we think this is an inspiring quest.


Olly will be using the power of the web throughout his journey. Inside his boat, the Flying Carrot, he will have a water-resistant laptop and a satellite uplink, which means he will have access to the entire web and anyone who wants to surf it with him. He's already started sharing his progress on his website as he begins his row around the world. You'll be able to track where he is, read new posts on his blog, see pictures of him at sea, and watch videos about his journey. You can also join the community on his site and post a comment on the wall, ask him a question and vote on others you find interesting, or even donate to his cause.

Because all of this data is safely stored online, Olly will be able to access it from wherever he may be, even if it's the middle of another ocean. He will share his journey with the world in real time, rather than having to wait until he completes his journey. And all his data will be safely preserved, in case something were to happen to his laptop.

The journey has just begun and we wish Olly the best. Join us in wishing him well at www.virginglobalrow.com.

(Ed's note: At time of posting, Olly is about 200km southeast of Tasmania, and has about 28,700 km to go ...)

Posted by Mendel Chuang, Product Marketing Manager

Eco Tip of the Day..Energy Efficient appliances can save you$$$

Energy-Efficient Appliances

Technology Snapshot & Benefits:
Both immediate and indirect economic savings can come from energy-efficient appliances such as refrigerators, horizontal-axis washing machines, clothes dryers, dishwashers, etc. Immediate and continuing savings accrue from lower utility bills for electricity and/or water. The performance levels of these appliances meet, and generally exceed, those of industry �standard� models. As a case in point, consider household refrigeration. By the late 1970s, refrigerators reached their most inefficient performance by requiring about 1750 kiloWatt-hours per year to operate. Modern energy-efficient refrigerators provide the same or better service at 450-550 kiloWatt-hours per year, and they are much quieter in operation.

Estimated Cost Savings:
The direct economic savings achieved by efficient appliances are a function of how much the appliance will be used, the performance level of the equipment being replaced, and local costs for utilities. When you replace older equipment, it is not uncommon for electricity consumption for that appliance to decrease by 50% or more. In general, if the appliance being replaced is more than 15 years old, and it is replaced with a state-of-the-art unit, you may expect utility savings of 20%-60% compared with the energy required by the previous appliance. Horizontal-axis washing machines typically save consumers 50% in both electric and water utilities. Additional savings come from reduced quantities of detergent.

Your monthly electrical bill is for all electricity used by all electrical loads in the building, so changing a single appliance will lower the bill, but in proportion to the amount of electricity formerly used by that appliance. If refrigeration represents 15-20% of your electric bill, a new refrigerator that is twice as efficient as the unit being replaced will lower your total bill by about 7-10%.

Any increase in initial cost is usually more than made up in monthly savings. See ACEEE Consumer Guide to Home Energy Saving for more detailed information on appliances and savings.

Issues:
Availability of the most energy-efficient appliances may be an issue. Sometimes the best equipment is in demand, which can mean that discounts and sale prices are either unavailable or of lower value. Over time, as manufacturers and suppliers clear inventories of less efficient models by offering discounts, expect the price of efficient appliances to come down as well.

Regional Issues:
Primarily, regional issues involve supply, delivery, and installation.

Installation (Getting It Done):
Be sure to price shop and to get two or three (or more) prices. Inquire about installation and removal of your old unit. For any refrigeration unit, be sure that the refrigerant will be removed and recycled responsibly. Refrigerants are very potent greenhouse gases and must be captured and contained. Shopping for price and availability will give you perspective on the true costs of equipment and installation in your area.

$8,000 Home Purchase Tax-Credit Explained

Now that Congress has fixed the crucial flaw in last year's home-purchase tax credit, who will be able to make use of the new and improved version? And what about timing: How long do buyers have to find a house and close the deal to qualify?

These are just two of the flurry of questions surrounding the $8,000 housing credit for 2009 authorized in the sprawling, $789-billion stimulus plan.

In formulating the final terms of the bill, congressional negotiators added $500 to last year's $7,500 credit and eliminated the repayment requirement from the 2009 version.

Unfortunately, qualified buyers who closed in 2008 will not reap the benefits of the 2009 amendments. They're stuck with the old model, and will have to pay back the credit -- more correctly an interest-free loan from the government -- over the coming 15 years.

So, only buyers who close between Jan. 1 and Dec. 1 of this year may qualify for the new, no-repay credit. But they'll still have to pass most of the eligibility tests imposed under the 2008 program.

For example, they must be "first-time" buyers under the 2008 definition: Either you've never owned a house before, or you haven't owned or co-owned one during the three years preceding the date you close on your 2009 purchase.

Carefully planning the timing of your closing could be worth thousands of dollars to you. [More]

The final version of the home-purchase tax credit is an improvement over the 2008 $7,500 credit-you-pay-back-to-the-IRS (which feels more like a gift and clawback) but will not provide the stimulus of the original proposed Senate Bill that gave any buyer a $15,000 credit.

In high-cost areas such as Los Angeles, the bill will have a muted effect. But in the half of the country where homes are priced less than $175,000 (the median US home price in February 2009), the $8,000 credit amounts to a significant buyer incentive and could boost sales by qualified first-time buyers.

LA Times: 20% of Los Angeles County Receive Public Aid

One in five Los Angeles County residents -- nearly 2.2 million people -- are receiving public assistance payments or benefits, a level county officials say will rise significantly over the coming months as the fallout from the recession continues. [Source]

In case anyone thought the economy was going to turn around soon, consider the jarring fact that one in five in Los Angeles County is receiving public assistance. By current measures, this recession is already a lot worse than the recessions of earlier this decade and in the early nineties.

In the coming months, taxpaying Californians will be hit by increases in sales tax, increases in vehicle registration fees and other levies and cutbacks.

Local real estate is entering the "overshoot" phase of its decline because the economic foundation of the region is withering.

The fragile state of California has led to the inevitable hand-wringing and proclamation that the Golden State has reached its zenith, and like a mature industry, is in its decline.

From its agriculture, to its politics and budget woes, to its high unemployment rate, the State is portrayed as far from the land of dreams. (Except for Oscar Day!) The Wall Street Journal and USA Today ran stories this weekend about dystopian California -- home of foreclosures, bankrupt municipalities and high unemployment.

But we have a secret. The state has always thrived because of its innovation. In the shadows, in a garage in Van Nuys or Torrance, someone is crafting the 'next big thing.' Just like the Internet, we didn't know it was there until it arrived.

Dream a little dream, California.

Jamie Adner

Beijing Builds It ... They Don't Come

For locals who are distressed about the queasy state of the US real estate market, be glad we're not in the quandary of Beijing, where the scope of speculative building was unparalleled in the world.

By one account, 500 million square feet of commercial real estate was developed there since 2006 -- more than all the office space in Manhattan. Nearly 20% of this commercial space is vacant, and it would take 14 years to absorb at the brisk pace of leasing from 2004 - 2006.

Real estate development in China is different from that in the West, since there is no private ownership of land. The Chinese government will end up holding the bad debt for properties that cannot be leased.

Nearly all the grand structures of the 2008 Summer Olympics -- including the Bird's Nest main stadium -- have found little use post-games.

Luxury housing developments, where units are priced at $800,000 -- in a country where the average salary is less than $6,000 per year -- are going unsold.

Occupancy in Beijing's hotels -- many of which are newly constructed luxury buildings -- is said to be 10 - 30%. Even during the Olympic games, occupancy is reported to have been only 67% because of Beijing's stringent visa and travel requirements.

And in other news, the International Herald Tribune reports that sales of international second homes are tanking.

It's a small world, after all. And we're all in this mess together.

Jamie Adner

A Tale of Two Markets: Under $1 Million Bounce, Over $1 Million Fumble

The percentage of homes listed at $1 million and above that are under contract in the Sunset Strip - Hollywood Hills West, West Hollywood, Beverly Center - Miracle Mile and Hancock Park - Wilshire areas has fallen to 4% – one in 25 homes.

18 - 24 months ago, 13 – 15% of homes in these areas were in contract – approximately one in 7 homes. At that time, jumbo mortgage rates and downpayment requirements were low, loan underwriting was lax and borrowers could rely on “stated” not “fully documented” income.

The current glacial market for properties priced $1 million and over in these areas is reflected in the months supply of inventory, which has risen from 4 – 6 months to 20 – 24 months over the past two years.

This trend will likely worsen as buyers are impacted by lay-offs and cutbacks in employment, high jumbo mortgage rates, and stringent loan underwriting requirements. Buyers have also been blind-sided by the economic crisis and are feeling less wealthy than they did one year ago.


The bright spot in the Sunset Strip - Hollywood Hills West, West Hollywood, Beverly Center-Miracle Mile and Hancock Park-Wilshire areas is that properties under $1 million are selling, and the market is picking up.

During the past 18 months, the market slackened from 3 – 6 months of inventory to 8 – 13 months of inventory, a much smaller drop-off than for higher priced properties in these areas. Based on January’s sales, there was only six months of inventory, a far cry from the 22 months of inventory for the over $1 million market.

Jamie Adner

Commercial Property Values Fall Nationwide

Commercial real estate prices in the U.S. dropped by almost 15% in 2008, more than home prices, with fourth-quarter depreciation the greatest in the national apartment market, Moody's Investors Service said Thursday.

The price decline eliminated the gains seen in 2006 and 2007 and returned values to 2005 levels, according to the Moody's/REAL commercial property price indexes. Prices fell 2.2% in December from November.

Commercial values are now down more than 16% from their peak in October 2007. The deepening recession is causing tenants to cut jobs and vacate space, bringing down building incomes, while the credit freeze is making it difficult to finance purchases.

Commercial real estate prices fell more than home prices last year.

Apartment prices fell 11.5% in the fourth quarter, according to Moody's. Even in the Western U.S., where prices held up better than the country as a whole, apartment prices fell 9% in the quarter and more than 16% for the year, Moody's said. [Source]


The fall in commercial property values is a lagging indicator to the general economy, suggesting the commercial market will have accelerated price declines going forward.

Renewal of leases on office and industrial properties will subside as employment and profits drop off. Those leases that are renewed will be at lower rates.

Other businesses will downsize, subleasing space, or leasing different properties at lower rates.

The retail sector will be hit hard by the double-whammy of horrendous sales at brick-and-mortar stores and increased online sales as consumers migrate to the Internet for their shopping.


The multi-family sector is expected to hold up the best among the asset classes, as record home vacancies from foreclosed properties contribute to decreased vacancy rates in multi-family buildings.

However, rents are softening in many major metropolitan areas (Los Angeles and New York included), leading to declining returns for many multi-family investors.

An unanticipated side-effect of this miserable economy is that renters are moving in with family members or roommates (or sadly, onto the streets) as income drops – often unexpectedly and precipitously.

This has led to increased vacancies – and rental concessions on the part of many landlords.

Jamie Adner

Palm Springs Open House - Kings Point

Palm Springs homes for sale.  Palm Springs real estate blogs. William Krisel architecture. mid century architecture.

OPEN HOUSE, Sunday, 2/22/09, 2-4pm

2733 S Kings Rd., East, Kings Point, Palm Springs, 92264

3 bdrms, 2.5 baths.  William Krisel architecture. 2547sf

Asking: $535,000.

Russell Hill    760.902.3121    RussellHill@dc.rr.com

LA Times: "Home Values Sink to '02 Level"

The real estate coverage in the LA Times skews to the hyperbolic (exuberant during the boom days, nihilistic during the present clime), but there were some relevant facts in today's report that home values in the five-county Southland had fallen to 2002 levels.

• when compared to income, home prices are now below their historical average
• the SoCal median home price in January 2009 was $250,000 -- 40% lower than in January 2008
• Los Angeles County's median home price in January 2009 was $300,000 -- down 35% from a the same month a year ago
• 60% of January 2009 sales were foreclosures
• the local housing market is in the "overshoot" phase of its decline, "when a mid-priced home sells for less than it typically would based on median incomes"

Despite the gloom associated with declining asset values, there's a lot of positive news in this report.

It's the best market in almost ten years for first-time home buyers. They have a vast choice of properties, and with interest rates at historical lows, they can buy them on the best terms. Homes are more affordable than the historic norm.

With so many foreclosed homes changing hands, neighborhoods will not deteriorate from the presence of vacant properties, but will be rejuvenated by new owners who will stay put because they can make their monthly payments.

Homeowners who don't have to sell should not be ruffled by this flux in asset prices. Yes, they have less equity in their homes, but their return on their asset will be determined at the time of sale, not during this downturn.

The most positive aspect of this article is that the real estate market is on the road to normalcy. Home prices are falling in line with incomes. Mortgages and property tax for first-time home buyers will be affordable. Foreclosed homes are selling. And loans that are being written are done under stringent new guidelines so the debacle of the bubble years will not be repeated.

Normalcy is not the same recovery. Home prices will continue to fall as we move through this economic quagmire. But every day there are deals to be had by new exuberant buyers who can fulfill their dream -- with a monthly nut they can afford.

Jamie Adner

Ace Hotel Palm Springs

The Ace Hotel on E. Palm Canyon is now open!  The restaurant will open shortly, I'm told.  I'm excited about this new addition in South Palm Springs.

Russell Hill    760.902.3121   RussellHill@dc.rr.com

Palm Springs Real estate activity for 2/18/09

Palm Springs homes for sale.  Palm Springs condos for sale.  Palm Springs real estate blogs.

Here's the activity for Wednesday, 2/18/09.

Central Palm Springs:

New Listings:

1286 Tiffany Cir S., Rose Garden, 2/2, $249,000.

1980 E Belding Dr., Sunrise Park, 3/2, $349,000.

In Escrow:

1211 Los Robles Dr., Vista Las Palmas, 4/3, $1,195,000.

Sold:

None

South Palm Springs:

New Listings:

982 E Marion Way, Twin Palms, 3/3.5, $725,000.

1484 S Paseo De Marcia, Deepwell, 3/2, $769,000.

1575 S Via Salida, Tahquitz River Estates, 4/4.5, $899,000.

In Escrow:

958 S Calle Santa Cruz, Demuth Park, 3/2, $119,900.

2046 S Gene Autry Trl., Tahquitz Creek Golf, 3/2, $250,000.

Sold:

None

Do any of these look interesting?  If so, call me and I'll get you in to see the property.

Source: Desert Area MLS.  Listings are not necessarily those of Zephyr Real Estate/Russell Hill

Russell Hill    760.902.3121    RussellHill@dc.rr.com

Induction Cooktops

I often encounter buyers who are disappointed at the number of homes in Palm Springs that don't have gas service to the kitchen.  Most people want gas cooktops.  For some, this is one item that they will not compromise on when buying a home.  

When we bought our Los Compadres home, we too were disappointed that the kitchen didn't have gas.  There is gas service to the house at the fireplace, furnace and the outdoor grill, but, as is fairly common, not to the kitchen.  We thought we'd extend gas to the kitchen at some point.  We were willing to deal with our electric cooktop for a while and bought the house!

Turns out we have an induction cooktop.  We love it!  It's very responsive and unlike gas or electric coil cooktops, does not heat the kitchen (house) up.  It's very efficient and a breeze to keep clean.  Click HERE to read all about induction cooktops and cooking.  Induction cooktops are not the same as electric coil cooktops, even the new smooth glass tops (that look like the induction cooktops pictured above). 

So, for buyers, I recommend that you be willing to compromise on your cooktop.  You might actually find the option of an induction cooktop quite appealing.  For sellers, if you're installing new appliances in order to sell, you might consider paying more for an induction cooktop.  Just make sure you communicate the benefits!

Russell Hill     760.902.3121     RussellHill@dc.rr.com