Chris Cragnotti's Neighborhood Information and Real Estate News

Short Sale Relief... Finally!

2011-07-21T07:43:00.000-07:00

California has just signed into law (SB 458) a very important piece of legislation for homeowners facing a Short Sale. Effective immediately, no lienholders of deeds of trust (banks holding mortgages) may come after a former property owner (seller) for a deficiency after they approve a Short Sale.

Previously, if the holder of a 2nd (or 3rd, or 4th...) deed of trust like a Home Equity Line of Credit approved a Short Sale, they retained the right to come after the seller for the difference between what they were owed and what they actually got which in many cases is a lot of money. Only recently, in the middle of this year, have I heard from 2 former clients that the banks had come calling. In one case, it took the bank 3 years to finally come around. The bank is always willing to settle for a fraction of the balance they are due, but even still it is very unsettling to know in the back of your mind that some day the phone may ring.

Those days are gone. Now when a bank agrees to a short sale, the deficient balance is wiped out, they can longer pursue a seller for the deficiency. No more restless nights of worry. This of course is a polarizing issue and there are many who I am sure think this is a bad idea, that we're rewarding flagrant and irresponsible behavior. A homeowner racks up thousands of dollars of debt and it just gets wiped away; that's just not right. And while I think we can all agree that in principle this is not cool, but most of the sellers I have represented in a short sale did not use their home as an ATM machine but rather got that 2nd mortgage as part of their initial down payment (purchase money) so the money was part of acquiring the house in the first place, not used to buy a boat or a fancy vacation.

If we are ever going to get to a point of calm and stability in the market, in the economy as a whole, we are going to have to deal with the major imbalance many homeowners face with regard to the value of their home vs. what it is now worth. Short Sales are a great way for us to tackle this problem. A bank always makes out better on a Short Sale than they do when they have to take the house back as does the neighborhood and property values as a whole.

The more streamlined, transparent and predictable we can make the Short Sale process the better. Right now it is still a bit murky and uncertain leaving many homeowners unsure as to whether they should bother even trying. The passage of SB 458 is a very important step closer to creating a lasting and rational impact on this very important aspect of our economic recovery.

Bravo!

January-April 2010 Glendale Sales Stats (for the graphically inclined)

2010-05-27T10:16:00.000-07:00

Here are some graphs illustrating the resilience and stability of the Glendale real estate market. These graphs cover Glendale btwn the 134 fwy and the north end of Verdugo Woodlands.

Here are the average prices of homes FOR SALE vs the average prices of homes SOLD since January. As you can see, the heat is still in the under $800K market. Higher priced homes take a bit longer to sell keeping the average FOR SALE price quite a bit higher than the average SOLD price.

With this graph you can see that in Glendale properties take far less time to sell than what is reported nationally. Under 3 months is not that long when you consider at least 30 days of that time is spent with the house in escrow. Also, with most homes selling for over 90% of the original list price, it is clear that inventory does not languish and drop and drop here in Glendale.

After a slight uptick in inventory in February and March, homes got gobbled up in April, due in part no doubt, to the expiring Federal Home Buyer Tax Credit. It will be interesting to see what happens in May and June. The limited California Home Buyer Tax Credit should help keep the market buoyed until it runs out.

This is the granddaddy of market snapshot graphs. This covers the number homes FOR SALE, SOLD, PENDED and NEWLY LISTED from January to April. After a couple of months of rising inventory at the beginning of the year, February and March brought an increase in the number of homes going into escrow as buyers moved back into the market. Then in April new inventory dropped while homes continued to sell. Again, it will be interesting to see how much of this was due to the tax credits.

Among G&C Properties' 3 agents we have closed 14 transactions so far this year and we have 5 transactions currently in escrow. If you're considering buying and/or selling real estate, those are important numbers to know. While the market has stabilized with buyers out shopping, transactions have gotten stickier. It is important to have an experienced agent on your side who can anticipate the possible pitfalls and hang-ups of our "new normal". Call Chris Cragnotti today at (818) 244-5499 to discuss your place in today's real estate marketplace.

Foreclosure Filings Up or Down? Depends on who you read...

2010-04-22T07:38:00.000-07:00

Yesterday two articles, one in the LA Times and one in The Glendale NewsPress, came out with conflicting information about the number of new foreclosure filings. LA Times says that in California foreclosure notices are down 40.2% from this time last year. Glendale NewsPress says they are up 11% for the first quarter of 2010.

Now both of these articles can be right as the Times is talking about the state of California as a whole and compares March 2009 with March 2010, while the NewsPress is talking only about Burbank, Glendale, La Crescenta and La Canada and doesn't specify which quarter is being compared to this first quarter. I guess we are to presume that they mean filings are up 11% from 4th quarter 2009.

EITHER WAY, the most frustrating quote appears in the Times which states that Southern California prices went up 14% in March 2010 as compared with March 2009.

"Southern California home prices jumped 14% in March from the same month a year ago, to a median $285,000."

Ugh. I'm sure sellers across the land are reading that and wondering what the heck the Times is talking about. The truth of the matter is that real estate is hyper-local and while that number seems local being that it cites Southern California, Glendale's numbers are not nearly that thrilling.

Per iTech MLS, here are Glendale's stats for Single Family Home sales in March 2009 vs. March 2010.

Glendale - March 2009
36 Solds
Median Price - $600,000
Average Price - $647,192

Glendale - March 2010
32 Solds
Median Price - $602,500
Average Price - $633,113

So, while the median price went up in Glendale (albeit marginally) the average price of homes in Glendale went down by a higher amount.

In La Canada, the numbers are even less exciting. Per iTech MLS, La Canada's numbers for March 2009 vs. March 2010 are thus:

LACF - March 2009
12 Solds
Median Price - $1,456,250
Average Price - $1,900,821

LACF - March 2010
12 Solds
Median Price - $1,175,500
Average Price - $1,421,792

There is nothing in La Canada's numbers that suggest any sort of increase in property values as the Times suggests.

Now, I know I tend to criticize the media for negative reporting about the real estate market and here I am harping on them for giving us some seemingly "good news" about the health of the market except that this 14% increase they cite isn't really all that great of news. All it does is muddle an already confusing situation.

While real estate trends should be looked at microscopically with regard to location (i.e. on a citywide basis rather than a regional one) they should not be looked at so narrowly in terms of time. To compare one specific month last year, to one specific month this year is not a very effective way to gauge reality. It makes for fun, eye-catching headlines, but it too small a window to really express much truth.

Why do I really care so much? I care because as a professional in the field I am regularly challenged by consumers (both buyers and sellers) regarding these types of statistics. Because real estate is local, you can't always rely on a regional newspaper to accurately speak to every neighborhood within that region.

Numbers can be found to support whatever one wants to spin about the state of the real estate market, but when a seller's house is listed too high and it isn't selling, let alone not even getting showings, a broad-stroked statement that prices have gone up 14% in a year is irresponsible and only makes it more difficult for that seller to trust the professionals who know what's really happening in their neighborhood.

Los Angeles Times - California Home Default Cases Plunge - April 21, 2010

Glendale NewsPress - Foreclosure Filings Rise Sharply - April 21, 2010

Spring Has Arrived!

2010-04-05T21:57:00.000-07:00

My eyes are itchy, my nose is runny and my phone is ringing!!!! Must be Springtime in Glendale!

"First Time Buyers" get into escrow by April 30th and you could earn up to $18,000k in tax credits depending on your purchase price. If you're a serious buyer, then missing out on this awesome double-dipping opportunity is just silly.

Here is info on the California 2010 Tax Credit

Here is info on the Federal 2010 Tax Credit

The clock is ticking folks.....

Hmm.. An Interesting Trend. What Does It Mean?

2010-03-29T07:33:00.000-07:00

So, check out what the spring is bringing. More Listings, but not necessarily more sales. Take a moment to study this graph (if graphs are your thing). This illustrates the effect the holiday season had on Glendale real estate and also hints at how it is recovering.

The number of New and already Active listings (the blue line and the light green bars respectively) will always lead Pended and Sold listings (the red line and dark green bars respectively) in real estate activity trends. This graph clearly illustrates that.

As you can see back in September, the number of new listings coming onto the market was about the same as it was last month (February). Homes were going under contract at a healthy pace of just over 40 per month. All of this left Glendale with very low "Months of Inventory" (see below).

Now look at what's been happening since the new year. Both new listings and pended sales dipped around the holidays and while new listings have rebounded, the number of pended sales is rising much more slowly.

With government stimulus initiatives like the home buyer tax credits set to expire at the end of April, we should be seeing a strong uptick in the number of pended sales. Are buyers calling the fed's bluff? Are they daring them to extend their programs once again? Hard to say.

All-in-all I do not see this as a reason for panic. According to the chart below, Glendale's months of inventory, a key barometer of the strength of a region's real estate market, is still very very low. Based upon pending sales (homes going under contract) we are still under 4 months of supply. 4-5 months is considered a balanced market. Under that is a seller's market, over that is a buyer's market.

It is hard to argue that we are in a seller's market, but if there is anything to take away from this information, it's that we can't listen to the national media when it comes to understanding the conditions in our own local real estate markets. For now, Glendale is doing just fine.

These graphs are based upon information taken from the iTech Multiple Listing Service using Glendale Single Family Homes north of the 134 Fwy.

"LISTING BOOK" IS HERE!!!

2010-02-12T14:07:00.000-08:00

If you're currently a Buyer or Seller of real estate or just a neighborhood real estate junkie, then Listing Book is for you! Get daily real-time market updates in a personalized, fully-customizable portal to the MLS that YOU control.

Click the link to the right and sign up TODAY!

OUTLOOK FROM OUR TRUSTED MORTGAGE BROKER, CS FINANCIAL

2010-02-11T17:11:00.000-08:00

Jeff Seabold of CS Financial, a local mortgage brokerage published his company's outlook for 2010. RATES ARE ON THE RISE FOLKS! Don't miss the opportunity to finally step off the fence and take advantage of record low numbers and government subsidies before they slip away.

FROM JEFF:
Gazing into our crystal ball...
As many of us do at the beginning of any new year, we sit down and try and forecast the most probable market environment. We assess how it will impact our business, and determine what, if any, changes need to be made to adapt to the probable and prevailing market trends. We find it part of our job to engage in a little prognostication, specifically as it relates to interest rates and the availability of credit. It seems the writing is on the wall. More specifically, we’ve seen all the writing from economists and pundits in forums, newspapers and trade publications, comprising millions of words on paper and on the web. This data and analysis provides great insight about what to expect in the coming twelve months. So, in this instance, we feel that a little fortune-telling is a good thing for our clients and for us.

Thankfully, it seems to us that there’s hope and even a certain confidence in the air this January. Maybe it’s just first-quarter sanguinity, but we think it’s very real. With all of the conflicting viewpoints and dug-in positions out there you’d think there would be loads of disagreement and variance about what the future holds. Not so much in 2010. All of the evidence, it seems, leads to the same conclusion: Interest rates will rise.

But it’s not just us who are certain. Moody’s is sure rates won’t go below 5% again; in fact Chief Economist Mark Zandi says 6% by the end of the year “sounds about right.” HSH, the nation’s largest publisher of mortgage and consumer loan information, anticipates rates will hit 5.25% by March. PNC sees rates at 5.5% by June. Lawrence Yun, the Chief Economist at the National Association of Realtors, echoes a sentiment shared by many about the disappearance of the historic low rates of 2009: “Rates weren’t going to stay that low forever.... But I don’t see anything too alarming. Rates will still be considered attractive.” Still attractive they may yet be, but less and less so as they creep up.

The evidence doesn’t lie.
The Fed is finally getting out of the Mortgage-Backed Securities game: it will stop buying MBS on March 31. That’s about two months away. One month later, in April, the Obama homebuyer tax credit, which has stimulated demand, comes to an end. Ten-year Treasurys, always a good indicator of mortgage rates, are up. But if demand wanes (often hinted at by China) the yields will need to rise higher. Then there is always the specter of inflation: should the economy start to heat up--and it looks like it will--the Fed may be forced to apply the brakes. Add joblessness, foreclosures, and pessimistic bond investors... and however you slice it, rates are going up.

We are nothing if not good students at CS Financial. Having spent the last few holiday weeks educating ourselves with all the 2009 year-end reviews and the new year kickoff predictions, our own prognosis for 2010 represents a truly “educated guess,” and despite the vicissitudes of the week-to-week, we anticipate working off these, our assumptions, for the foreseeable future.

What it means for you.
It might sound complicated but it’s simple, really. We did our homework and we believe that, over the long term, rates are headed upwards. All the same, conditions remain excellent for first-time homebuyers--they’re almost as good as they were over the summer. But alert your clients to the fact that the window of opportunity to lock in the historic low rates is most definitely closing. And especially if your clients are looking to refinance, let’s talk soon, before the rates render a re-fi moot. I’m at your service.

JEFF AND HIS TEAM CAN BE REACHED AT (310) 777-3600! If you haven't been pre-approved yet or it's been a few weeks since you checked in with your mortgage person, it's best have those ducks in a row before you start shopping for a home. Walking around without a pre-approval letter is like going to the mall without your wallet.

COMING SUNDAY 2/14/10 - 1715 W Kenneth Rd, 91201

2010-02-07T11:05:00.001-08:00

1715 W Kenneth Rd, 91201

$765,000

2+2, w/ Guest House and grassy yard

This super-cute, updated 1945-built Traditional has 2 Bdrms + 2 Baths in the main house, a spacious and clean studio Guest House w/ Bathrm and Kitchenette, 2-car garage and flat grassy yard!

There is much to boast about this property including mostly copper plumbing, newer electrical service incl. 200 amp panel, newer ducting throughout, a water softener and reverse osmosis filtration system, in-wall speakers and tons of move-in-ready 1940's charm.

The assr states the main house as 1,360 sf (seller thinks it is more) on 7,497 sf lot.

Access will begin on Sunday 2/14/2010 from 2-4 PM. This home will not initially be listed in the MLS, so come get a look before everyone else!

We knew it before the media reported it...the real estate market is strengthening and our recent sales told us first!

2010-01-21T06:55:00.000-08:00

Read an LA Times article about the current strength of the So Cal real estate market. Many expect a surge in momentum as buyers clamor to take advantage of the home buyer tax credits and below 5% interest rates.

LA Times - 1/20/10 - Southern California Housing Market Strengthens in December

This means a lot for Glendale which is strategically positioned in the region to take advantage of easy access to strong local employment sectors (i.e. entertainment and downtown LA business sectors). Buyers today are looking for value at every angle and Glendale, being an independent city, offers a lot of security and reliability at time when local government coffers are being stretched thin.

Buying or Selling? Contact me today via email or phone for information about why Glendale is stands out in the region as a truly wonderful and economical place to live. Get a jump on the spring season!

FHA and Short Sales... Another Reason NOT To Foreclose!

2010-01-17T07:44:00.000-08:00

Let's say your bank approves a Short Sale (meaning they accept less money from you than you owe them at the time you sell your home), until recently we all thought that was the nail in your coffin when it comes to buying a home again. There was a lot of gray area with regard to how long a Short Sale remained on your credit report and for how long it affected your FICO score.

Many homeowners, feeling that there was not much difference between a Short Sale and a Foreclosure, would opt for the Foreclosure because it's a lot easier than going through a Short Sale that involves marketing your home for sale and providing a good amount of paperwork to back up your hardship and prove your case to the bank.

Well, revised guidelines released by HUD last December shed a lot of new light on why a Short Sale is actually a much better idea than Foreclosure. Click the link below to open up a letter from HUD highlighting some changes made to their existing language about when they can approve an FHA backed mortgage if the borrower has a previous Short Sale on their record. The updates appear at the end of the letter and are underlined (the first part is how the language read before the changes).

In short, so long as you were current on all of your debt (i.e. mortgage, car loan, credit cards, etc.) than you can immediately qualify for a new FHA insured loan. They will look at your credit score from prior to the Short Sale as part of their approval decision. This is HUGE news and is finally something we can point at as a reason to do a Short Sale rather than Foreclosure.

HUD FHA Short Sale Guideline Update Letter of Dec. 16, 2009

HUD temporarily removes 90-day "title seasoning" restriction for FHA loans

2010-01-16T13:54:00.000-08:00

In a move that helps the FHA borrower, HUD has temporarily removed the provision that prevents them from acquiring property that has been owned by the present owner for less than 90-days. Also dubbed the "anti-flipping rule", this statute has been deemed discriminatory by some groups although HUD does not seem to be taking that stance as their reason for removing the provision.

These properties are generally considered to be nicer than most other properties in their price range because an investor has gone in and upgraded them oftentimes rather tastefully. The sad reality is that FHA borrowers will still find it hard to acquire these homes because they go out in multiple offers and more important these days than the price a seller accepts are the terms of the contract.

Many buyers out there have significant down payments easily squeezing FHA buyers out of the game. FHA loans continue to carry the stigma of being somewhat troublesome to close but more importantly an FHA borrower usually has very little down payment and typically asks for a credit back from the seller to cover closing costs.

No matter how you spin it or legislate it, cash is still king in this market.

HUD Announces 90-Day Flipping Rule Suspended

Super Bowl Sunday is about more than just football. If you're selling your home, we think it's a landmark day.

2010-01-16T09:45:00.000-08:00

According to this article, Winter Is The New Spring! If you're thinking of selling this Spring, check out this article that discusses why getting a jump on the competition is a good idea in the 2010 real estate market.

LA Times, Jan 10, 2010 - Going to sell the house? Don't wait for 'spring' in February

G&C Properties is ready when you are to chat about listing your home.
Gerri - (818) 244-5400
Chris - (818) 244-5499

Do you consider a trip to Vegas sound financial planning?

2010-01-16T09:04:00.001-08:00

Well, waiting for further declines in home values in our region is like going to Vegas...a gamble at best.

This article is for Buyers, real Buyers, who are struggling with when to step off the fence. We have seen many of the same faces over the past couple of years (yes, years) passing through our open houses or calling on our listings. Some of you are truly buyers, people facing a real need to buy (because of a job transfer, a baby on the way or whatever), struggling to know when the right time will be to buy. I hope this article helps make sense of at least one part of the equation, the interest rate on your loan, and how even the slightest tick upward in your interest rate effects how much you pay for your house over your lifetime.

This article is not for the rest of you, those of you who pretend to be buyers but do not face a real pressing need in your life and therefore continue to wait. You most certainly will find a way to twist this writer's message and nail your rear ends more firmly to the fence.

Business Week, Dec. 8, 2009 - If You Don't Buy a House Now, You're Stupid or Broke

4th Quarter 2009 Glendale Real Estate Stats

2010-01-13T08:43:00.000-08:00

Here is what went on in Glendale in the last quarter of 2009. Seasonally, the 4th quarter is not quite as busy as the 2nd and 3rd, however this year these numbers reflect the $8000 First Time Home Buyer Credit offered by the government which initially was set to expire on Nov 30th but was later extended to June 30th, 2010 (with escrow being opened by April 30th).

1) Months of Inventory. This gauge has become popular over the past couple of years because it shows how long it would take to absorb all of the currently available homes should no new listings becoming available. The media loves this graph in slower markets because it can be quite frightening if the number is in the 1 year+ arena as it is in some places. Here in Glendale it is very very low and was falling at the end of the year.

2) New Listings/For Sale/Pended/Sold. This graph illustrates why the Months of Inventory graph is so low and falling. The blue and red lines tell the whole story. The the blue line charts the number of new listings hitting the market while the red line indicates the number of homes going into escrow. As you can see the blue line (new listings) is falling more rapidly than the red line (pendings). More houses are going under contract (and selling) than are coming on the market to replace them.

What does all of this mean? It means that here in Glendale the market is particularly strong and active. It does not necessarily mean that sellers get to name their price, but it also does not mean that buyers get the deal of the day either. 4-5 months of supply is considered a balance market, so at 2 months this is technically a seller's market which in this current environment does not mean a seller gets absurd amounts of money for their home, but it does mean they have a good chance of at least selling.

The key for both sellers and buyers right now is to be realistic. Talk to an agent, one that actually has successfully closed escrows in this market. We know what's happening out there because we're in it everyday. We see sellers' homes languish on the market and buyers lose house after house because they think their situation is different. There are basically no exceptions to the rules right now. It's a level playing field and will be for quite sometime.

Polish Food... Who Knew?

2010-01-11T07:43:00.000-08:00

Local and Yummy. Ever wonder about Polish food? Well, here's your chance to try it. Super delicious and wonderfully nice people. We went on a Saturday afternoon at 3 and had a great experience. It's not a big place and I hear they get pretty busy, but it's worth the wait!!

We had pierogis and gulaz. All fabulous!

Located at the base of Adams Hill on the L.A. side at Verdugo and York. They were featured on California Gold a couple years back. I maybe slow to party on this one, but perhaps I'm not the only one.

POLKA POLISH RESTAURANT

Enjoy!

2010 - More Of The Same...

2009-12-12T08:57:00.000-08:00

As we near the end of the 2009, it is worth looking back at the year in an attempt to predict what is in store for next year. Clearly, that while the nation maybe out of recession technically, consumers as a whole do not seem to be feeling all that much better yet. With unemployment relatively high and loan qualifications still tight, the number of home buyers in the marketplace will probably not increase too much in the coming months.

My humble opinion for Glendale and the LA metropolitan area as whole for 2010 (based on articles I have read, the California Association of REALTORS housing forecast and my experience selling real estate) is that things will not change much for the better in terms of home sales activity and certainly not pricing. While there are fewer buyers out shopping, there are also fewer sellers putting their homes up for sale so while transaction numbers maybe down, the market is fairly stable in terms of price/values.

For most of 2009, there were 2 very different real estate markets in our area. The foreclosure/REO market and the traditional sale market. In 2009, these two facets worked independent of each other. Initially the banks were eager to unload their inventory by slashing prices and in many cases not doing much to improve their often neglected properties. On the other end of the spectrum were the traditional, non-crisis sellers who had lovely, well-cared-for, character-rich homes. Despite the fears many had that the foreclosure market would drag the traditional market to its knees, that hasn't really happened in Glendale or its immediately surrounding communities.

As I have pointed out before, the housing stock in the greater LA area and Glendale in particular is so diverse that what may happen to the one house down the street that goes into foreclosure does not necessarily predict what will happen with every house on the block. In the planned community areas of Santa Clarita or Riverside county where all of the houses are of roughly the same age, style and amenities and the number of foreclosures in a neighborhood could reach high double digits, there is little hope for the family that needs to move for happy reasons and not distress. Yes, values have come down across the nation, including in Glendale, but not at equal rates. Given how high prices had gotten, this is a good thing.

I think that 2010 will bring a renewed approach from the banks who have finally accepted that foreclosures, short sales and loan modifications will be a part of their business model for years to come. I know B of A has implemented a new, more automated system to handle the flood of short sales that continue to pour into their loss mitigation department in attempt to streamline and speed up the process of approval. Many banks have been holding off on bringing to market their foreclosed homes in an attempt to stabilize prices. The 2 markets will begin to come together in 2010. The banks will do better to keep the properties nice and clean, trickle them to market instead of opening the flood gates and fall more in line with traditional home sellers. It makes good business sense because while the banks are now sellers in a market area, they continue to become mortgagors as well. In some cases making the new loan on a foreclosed house they just sold. It behooves them to protect their investment.

The number of transactions will not increase and may even decrease in 2010 if the buyer incentive programs the government has been offering are not renewed and if FHA's true colors continue to show, revealing it to be the new Sub-Prime market that it is. As a REALTOR, I am in favor of the government's willingness to throw money at the problem, knowing that while it is housing that got us into the current situation, it is housing that will pull us out. My fear is whether they are doing it correctly.

I was happy to see them expand the home buyer credit to include folks that have already owned a home. I think it is important to invest in experience and the expansion of the credit to those that currently own a home but haven't bought within the past five years is great because those people have proven that they can handle a mortgage and have been able to hold onto their home in this rocky time. I was not really sure that first-time home buyers alone were the answer to our problems. Getting current home owners out into the market is just as important so that they can free up inventory for the first-timers to buy.

Fortunately for Glendale, FHA has not been the loan of choice for most of our buyers. I do not see that program continuing to expand at the rate it has over the past year. Defaults on FHA loans are rising as first-time buyers putting very little down find themselves struggling to keep up on payments or see values falling more and having put little skin in the game find it easy to walk away. Whatever the reason, FHA is struggling to stay afloat and will therefore have to cut back some to stay relevant.

The next year will continue to be an adjustment for everyone dabbling in real estate. Agents, lenders and consumers, we will all have to be patient as we find the new normal. Things will probably not get worse, but they will also not take off and soar either. More of the same is expected for next year, which under the circumstance is just fine.

Happy New Year Everyone!!

INVENTORY IS STILL VERY LOW IN GLENDALE

2009-10-03T09:28:00.000-07:00

Things haven't changed all that much since I posted these same graphs in mid-July. Inventory is still quite low overall. The important thing to consider here is that while today there maybe 133 homes available for sale in Glendale (see side bar with current Glendale MLS stats) the bulk of those homes are not properties the majority of buyers want to buy. This brings the actual number of available and desirable homes to an even lower number. The nice properties are getting scooped up fast (see my previous post highlighting our new inventory that went into escrow within a week).

Now more than ever both buyers and sellers should be working with an agent who's got their finger on the pulse of Glendale's fine neighborhoods. Truly serious and motivated Buyers and Sellers are succeeding in this marketplace. There is no time for uncertainty. Waffling leads to heartache and disappointment when inventories are low and competition is fierce.

It's hard to believe this is the situation we are in given what the media reports about the state of our economy, but the numbers don't lie and neither does the look on a buyer's face when he or she finds that their dream house has already been snatched up or when a seller has to start packing a week after their home is listed. Again, this doesn't ring true for everyone, but it does for those who have sat on the sidelines for months and watched it all unfold.

Still-low inventory numbers which in reality are even lower when you consider how many of the homes are not something most buyers would even consider purchasing.

Typically August is a slow month all around with not many new listings hitting the market and fewer buyers out offering, but check out how many properties went into escrow. 57, 12 more than in July while the number of available homes dropped overall. That's interesting. I think it shows that buyers are definitely anxious to get settled and to take advantage of the low interest rates and 1st time home buyer credit of $8000 before it expires at the end of November.

The statistics highlighted in this post were taken from the iTech Multiple Listing Service and are deemed reliable but not guaranteed.

3 WONDERFUL NEW LISTINGS

2009-10-03T09:16:00.000-07:00

Well activity is definitely brisk. We debuted 3 new listings over the past two weeks and 2 of them are already in escrow and the 3rd has 2 offers at the moment.

BUYERS: If you are truly serious about buying a home then you must be ready and able to act fast. There is not much out there at the moment and when something nice hits the market it sells fast. There is no time to dilly dally.

SELLERS: The buyers are pent up and ready to buy. If your property is a nice home and/or has unique and quality features (ie. big yard, functional floorplan, etc.) and you are anxious to move on, then get your home on the market at a fair price and it will sell fast.

AVAILABLE NOW
704 PATTERSON AVE, 91203
$529,000
Charming 3+2 Spanish of approx. 1500 sf on a 5327 sf lot. Conveniently located near Fremont Park, shopping, fwys, etc. Great opportunity to get into a character Spanish in a nice neighborhood.

SOLD IN 1 WEEK
921 VERDUGO CIRCLE, 91206
Sold Price - $700,000
Adorable meticulously updated 3+2 Traditional of 1,637 sf on a HUGE 11,779 sf flat lot. The homeowner spared no expense when restoring this lovely home. The spacious granite and stainless Kitchen has newer cherry floors and access to the patio and yard.
THERE IS NO WONDER THIS HOUSE WENT INTO ESCROW IN LESS THAN A WEEK.

SOLD IN 1 WEEK
2309 Sylvan Lane, 91208
Sold For Full Price - $945,000
Tastefully rebuilt approx. 10 years ago to create a wonderful, modern open floorplan within a lovely Traditional style framework. 3+2 of approx. 2200 sf on a HUGE 16,640 sf flat lot with a pool. These homeowners spared no expense when rebuilding this wonderful home and property. The open Kitchen/Family Room opens onto the vast patio, yard, gardens and pool. All of this and it's located in the coveted Verdugo Woodlands Elementary school district.
THERE IS NO WONDER THIS HOUSE WENT INTO ESCROW IN LESS THAN A WEEK.

LA TIMES: "Southern California home sales and prices rise in July"

2009-08-19T09:39:00.000-07:00

Obviously we are all cautiously optimistic about the latest sales data and as I've previously written, I think that the Median Home Price is not always the best gauge of the temperature of the market, but since it seems to be the consistent measure of choice then perhaps there is something to the latest numbers reported in this LA Times article from August 19th.

The main point I was looking for and that was made by one of the sources cited is that while there are a lot more foreclosure properties in the pipeline, banks are likely to trickle them out rather than flood the market with them to help retain the modest gains made this summer.

LA Times Article, August 19, 2009: "Southern California home sales and prices rise in July"

What A Difference Six Months Make...

2009-07-18T08:21:00.000-07:00

We hear a lot in the news about the "months of supply" of homes on the market. Nationally it is being reported that there are 12-13 months of supply with hundreds and hundreds of homes sitting for sale in some communities. That is a very unbalanced, Buyer's Market indeed. These days we are finally hearing a lot from economists and the such that real estate markets are local and that the numbers touted on the national news are way too generalized and should not be taken as fact for all communities in the country.

To that point, I have prepared 3 graphs that illustrate just how far Glendale has come with regard to available inventory vs. sales which translates to months of supply and then average sold price vs. list price over the first 6 months of the year.

1) This first graph charts the decline in the monthly supply by showing how many homes were available each months vs. how many homes either went into or closed escrow. It is interesting to note that the number of homes for sale has declined significantly either by fewer homes coming for sale or by sellers deciding to pull their house of the market after having tried for a couple of months. Either way, inventory is getting gobbled up fast, so despite the current economic situation, Glendale has a very healthy real estate market.

2) This graph shows the "Months of Supply" since Jan 2009. You can see a peak in February of 9.6 months, but since then there has been a steady decline to the point where we are basically at "Seller's Market" levels again. 4-5 months of supply is considered balanced. In June we were at 2.6 in Glendale!
3) This last graph shows the average price of for sale homes vs. the average price of the sold homes from January to June of 2009. As you can see, the lower end of the market is dominating sales, but with an average price (not median price) of $698,000 Glendale is still holding its own through this storm.

What should one take from these stats? Well that's in the eye of the beholder. Buyers can take away that you are not alone if you are feeling frustrated by what you hear on TV vs. what you experience out on the streets of Glendale. Really nice properties are few and far between and they sell fast. That doesn't mean you can't get one, you just have to be ready and not be afraid to ignore what the TV maybe telling you.

Sellers can take away that while prices have softened overall the market is still healthy and if you are priced right your home will sell unlike in some communities where there really are rows and rows of available properties and not nearly as many buyers to snatch them up.

For both buyers and sellers, Glendale and surrounding communities are still a thriving real estate marketplace and now more than ever is a great time to jump in.

The statistics highlighted in this post were taken from the iTech Multiple Listing Service and are deemed reliable but not guaranteed.

Kenneth Village Farmer's Market... A Huge Success!!

2009-07-03T18:49:00.001-07:00

Well, after all the hoopla and back and forth the Farmer's Market finally arrived. It was a great afternoon and a really wonderful market. There was plenty of fresh, local produce, yummy tamales and grilled meats and yes of course kettle corn. There were also some eco-friendly products for the body and the earth and some charming nick-nacks and things from some local Village merchants.

The concern was that with the 4th of July being tomorrow the turn out would not be much, but it was quite busy and it was especially nice to get to greet all of our friends and neighbors and wish them a happy holiday weekend. It was like a big block party!

Be sure to come out next week Friday from 3-7 PM to support the new Farmer's Market at the Historic Kenneth Village at the intersection of Kenneth Rd and Grandview in the heart of Northwest Glendale.

I Was Quoted in the San Fernando Valley Business Journal!

2009-06-23T23:15:00.000-07:00

Eric Billingsley recently interviewed me for an article he wrote in the San Fernando Valley Business Journal about the prices coming down at the Excelsior Homes at the Americana At Brand. Click below to read the article.

Condo Prices Cut Drastically At Americana, article of 6/22/09.

Appraisals Are The New Black...

2009-06-21T13:18:00.000-07:00

With the recent passage of the Home Valuation Code Of Conduct (HVCC) the home purchase negotiation process is rapidly being reordered. It used to be that an appraisal was one of the first contingencies a buyer would remove. While they are inspecting the property and the underwriter is preparing their loan package, an appraiser would visit the property, usually within a day or two of an offer's acceptance. The appraisal report would be completed within 48 hours of that visit and so within just a few days all parties would know where they stand with regard to the agreed upon purchase price. Not anymore.

Created after Freddie and Fannie had to settle with the state of New York over the mess that is the mortgage meltdown, the HVCC removes the loan officer's/broker's direct access to the appraiser and inserts another level of bureaucracy to the process, the Appraisal Management Company (AMC). So now simply ordering an appraisal, which used to take the loan officer mere minutes, now takes days and receipt of the completed appraisal which used to be instantly after the appraiser finished it also takes days because the loan officer/broker must now go through an AMC that distributes the appraisal work to the appraisers and manages the process. By the way, I know that one of these AMC is conveniently based in Massachusetts, the one used by B of A.

This is how it works. The loan underwriter/closer contacts the AMC and places an order. The clerk at the AMC scrolls through its vast nationwide database of appraisers and contacts one of them based mostly upon the area code of their phone number. Let's presume that appraiser accepts the work, they contact the listing agent and schedule an appointment to come to the house. They complete their report within 48 hours and send it to the clerk at the AMC, not to the loan underwriter/closer or the lender/broker as in the past. The clerk at the AMC gives the appraisal to their manager who reviews the appraisal for whatever their guidelines require and if there are any discrepancies they contact the appraiser and request corrections. Once that is done, the appraisal is finally forwarded by the clerk at the AMC to the loan underwriter/closer and it is not distributed to anyone else without the buyer's permission. All told this process is taking in excess of 2 weeks as some banks won't even place the order for the appraisal until they have the rest of the buyer's loan file in order.

This is problematic for Glendale and the nation on many levels.

1) With the real estate market in flux, it is ever so important that qualified, experienced appraisers be hired to perform the task of appraising properties in unique diverse cities such as Glendale. When an appraiser has never done an appraisal in one of our fine neighborhoods that person is handicapped with regard to the subtle nuances and differences among our housing stock even from block to block. An inexperienced appraiser drives the streets and maybe checks out the comps, but they don't know that there is a park 3 blocks away or that the grocery store is nearby. Worse they don't know that the foreclosure property down the street didn't have a kitchen when it sold. A good appraiser familiar with the neighborhood knows all of those things.

2) I just referred to "good appraisers." The problem with the HVCC is that in adding the AMC layer, Fannie and Freddie have added another level of cost. This cost is either passed onto the buyer or worse and more frequently is simply taken from the appraiser's fee. So we're finding that the good experienced appraisers, the ones we've been working with for years, the ones that know our neighborhoods are getting paid a fraction of their normal fee. In many cases they are getting out of the business or simply not being as thorough as they once were. At least that is what I presume is happening as the appraisers we usually work with are gone. I haven't seen a familiar appraiser on any of our properties in months.

3) Because of the fickle nature of these appraisals the whole process is slowed down considerably. We recently sold a property that ultimately had 3 appraisals done on it. They came in chronologically at $925,000, $875,000 and $995,000. Because it took so long to get all of them done, it was only a few days before closing that the seller and buyer agreed on a purchase price, the one element that should be somewhat straight forward from the start. Fortunately for the seller and for the buyer who loved the house and understood its value, the bank honored the last of the three ($995,000) and the deal was able to close. This case illustrates that worse than the time delay is the fact that 3 different appraisers came up with 3 vastly different numbers. How do we know who to trust? How do we know that an appraiser who has never done an appraisal in Glendale is going to get it right?

4) This last point is in regards to the usual negotiation process and removal of contingencies. There are 3 contingencies, 3 opportunities for a buyer to change their mind, in the typical home buying process. The physical condition of the home, the appraisal of the property and their overall ability to secure the loan. In order for their offer to be accepted they would have had to show that the bank already approves them for a loan. Because the market was active and there were lots of comps agents were pretty successful at determining the fair market value of a home and so the appraisals were pretty cut and dry. With housing stock that is approaching 80 to 100 years old it was the physical inspection that was the one wild card with some purchases. Seller and buyer simply had to come to agreement on correcting any health and safety issues that might be present and the deal would move forward. Not now.

Today, it is getting harder and harder for buyers to remove any of their contingencies, especially within the agreed upon timeframes. Today, the first thing done is the physical inspection, so now a buyer understands the condition of a home well before they know what an appraiser considers the market value to be. With the wild card of the appraisal still up in the air, sellers are in the awkward position of having to consider a repair request and the money it will take to honor that request without knowing the property's appraised value. There is a chance that the seller will agree to a credit for repair and then be presented later with a request to reduce the purchase price based upon the appraisal. That would be 3 different points of negotiation. Some sellers are finding they do not want to respond to a repair request until the appraisal is complete. Do you blame them?

As you can see, the new HVCC rules adopted by Fannie and Freddie and subsequently any lender or bank who hopes to sell their loan to them (and that's all of them) have changed the landscape of the real estate transaction. Many people are trying to have this new code repealed. If you are one of them, then click here to electronically sign a petition being sent to the New York Attorney General, Fannie and Freddie and the Office of Federal Housing Enterprise and Oversight.

To some it may seem like this is a good thing for consumers, that in a way it protects buyers because if the worst thing that happens is that a house sells for less that its fair market value, then the buyer makes out so why should we care. Remember that the moment escrow closes, that buyer becomes a seller, maybe not right this minute, but someday and any further unnecessary declines in property value will be just as painful for that new property owner as it is for his neighbor up the street trying to sell their home today. Please take a moment to sign the petition and protect the value of our neighborhood's properties.

June Market Stats

2009-06-15T10:24:00.001-07:00

As you can see from the Market Stats I posted today to the right the market has remained relatively active over the past 30 days.

There are fewer homes available for sale today than there were on May 15th, more homes in escrow and more closed sales. Spring is traditionally a busy time for real estate sales, but with the pent up need that built last fall through winter, we're all expecting things to stay busy for a while. Recent interest rates hikes might dampen things a bit, but hopefully it will be an active summer.

4 NEW G&C LISTINGS

2009-05-21T18:00:00.000-07:00

We're debuting 4 new listings this week!

COMING SOON

900 E Mountain St, 91207

$659,500

2+1.5+Fam Rm

1,617 sf on a 5,558 sf lot per assr

Listed with Gerri Cragnotti

AVAILABLE - IN MLS

1241 Graynold Ave, 91202
$679,000
3+1.75
1,728 sf on a 6,599 sf lot per assr
Listed with Chris Cragnotti

AVAILABLE - IN MLS
1833 Verdugo Vista Dr, 91208
$787,000
3+1.75+Full Guest House
2,554 sf on a 16,339 sf lot per assr
Listed with Chris Cragnotti

AVAILABLE - IN MLS
1430 Winchester Ave, 91201
2+2+Family Room
2,065 sf on a 6,180 sf lot per assr
Listed with Chris Cragnotti

Check our website for more info and photos!!
www.Character-Homes.com

Current Glendale Real Estate Market Stats Posted - What a difference a couple of months makes!

2009-05-15T18:10:00.001-07:00

Well, the market has certainly heated up since the beginning of the year. Check out the number of currently Available Homes today (151) compared to the same number on Feb 18th (228). That's a huge shift. Closed escrows are way up, too. 41 this past month compared to 25 from January to February.

Looking at the In Escrow numbers suggests that this trend should continue. Typically a sale closes within 30-45 days. Short sales take at least double that which is why there can be 130 properties In Escrow last month and 41 closings this month. With 160 properties currently In Escrow we're on track for a healthy number of closings come June 15.

As you can see the real heat is in the <$700k segment while the $1M+ market is really struggling with only 5 $1M Solds since Jan 1, 2009. Rumor has it that the Jumbo mortgage market is supposed to be loosening up some with rates coming down and programs getting more friendly in the coming weeks. That should do the trick.

These numbers indicate that there has really been a pent up need to buy and now that the Fed has greased the wheels things are starting to churn. Yes, Spring is traditionally a busy time of year, but let's put out good vibes and keep this momentum going! Let housing lead the way out of this current downturn.

Terrific Article in LA Times about the myths of the current market

2009-05-04T07:27:00.001-07:00

So, the LA Times finally acknowledges that the market in our area is not like what is being reported nationally. Without actually taking direct responsibility they do point out that the media has blown the whole thing out of proportion and created major confusion and frustration for buyers and sellers during this time of transition.

Now more than ever it's important to consult a local Realtor, one who specializes in your micro-market, to navigate you through to a successful purchase or sale.

House hunting? It's not a buyer's market everywhere - Los Angeles Times

4 NEW G&C Listings!

2009-05-01T07:36:00.000-07:00

This weeks saw 4 new listings debut at G&C Properties. As always, check out website for more info. www.Character-Homes.com. 205 W. Kenneth and 262 Kempton will be posted soon!

1241 Graynold, NW Glendale - $679,000 - NOT IN MLS

3448 Rosemary, Montrose/Sparr Heights - $729,000

205 W Kenneth Rd, NW Glendale - $619,000 - COMING SOON

262 Kempton Rd, NW Glendale - $819,000 - Rep'd by Leanne Reynolds

Spring is here... Time to buy!?

2009-04-11T08:42:00.001-07:00

The traditionally hot spring market is upon us. Blazing hot it is not this year, but there is definitely activity. Since last summer movement in prices above about $700k had really dropped. The rates for Jumbo loans (loan amounts above $729k) were close to 7% and higher and have been very difficult to secure. Lately, however, rates have come down significantly across the board, so that has brought buyers down off the fence in all price ranges.

The struggle many are finding now, though, is getting qualified and/or accepting the pain of what they qualify for which is typically significantly less than last year. So now buyers who thought it prudent to wait for prices to come down are discovering that the very reason prices have dropped is because people like them are no longer qualified to spend what they thought they could or in some cases anything at all. For prices to come down, there must be less demand in the marketplace. Less demand does not always come from less people wanting to buy, but rather their ability to buy.

Unfortunately for buyers, these two decreases are not falling at the same rate. Home prices in our area are falling less rapidly than consumers' buying power. Will they ultimately end up in line with each other? Who knows. The feds are doing everything they can to spur activity and while banks are being extra-cautious things are selling and at a healthy pace again... at least at the moment.

So what should a buyer do? That really depends on their motivation to buy. Casual shoppers (and yes there are casual home buyers) should not even bother coming out. Unless there is a specific need to buy (i.e. growing family, job transfer, downsizing) this market will drive a buyer crazy. The constant negative media reports and the prospect of further price declines are mentally crippling for most buyers. To step up to the plate and follow through at this point, it takes a confident, long range planning consumer (who knows things will always ebb and flow) or one without a choice but to settle in now.

This may seem like bad news for buyers, but ultimately it is good news. The integrity of our neighborhoods will remain intact if values hold somewhat strong or if they are going to decline, they do so slowly. The downside to waiting continues to be what will happen with banks and their willingness to lend their cash. Things are getting tighter every day. Each file is tougher than the one before to push through underwriting and while that may ultimately pull prices down further, the pace is not the same and for now there are enough cash heavy buyers to fill the gap.

Market Stats Feature Added

2009-02-19T08:24:00.000-08:00

As you can see from the NEW Market Stats report on the right side of this page, the current economic downturn has hit the $1M+ market the hardest. This of course is why the Median Price frequently cited in the likes of the LA TIMES is not the best gauge of market activity or price declines.

With the bulk of the activity happening in the under $700k market, and the Median Price being half sold for more, half sold for less, you can see why the Median Price has dropped. While it is true prices have fallen like for like over the past 18 months, few believe the Median Price is the most accurate amount. The problem with this is that buyers see that percentage drop in the Median Price being reported (be it 15%, 20%, whatever it is this particular month) and they automatically slash a seller's asking price by that much.

At open house pretty much every buyer cites the continuing decline in values as the reason for proffering significantly lower numbers than the asking price. I think the fair response is that a seller today expects to sell his/her home for the price it is worth today. Their response to buyers is that if Mr/Ms Buyer would like to pay the price my home will be worth 6 months from now, then they should start their shopping then.

Hence the standstill in the "move-up" market over $700k. The first-time buyer market under $600k is on fire. Most properties, especially move-in ready homes, sell in multiple offers, not always for over asking but they sell very fast. Ones that need work, take a bit longer, maybe 3-4 weeks, but they end up moving and still with more than one offer being made.

Of course, then there is the issue of appraisals. That is subject for another post...

What I learned at Loan Mod School

2009-02-07T09:17:00.000-08:00

Unless you've been living in a cave, you've been hearing a lot about Loan Modifications. I attended a loan mod seminar yesterday and I learned a lot of interesting things. Here are some highlights. If you've got a specific question send me an email, perhaps I can help.

DEFINITION: A loan modification is not a refinance and therefore does not require the same level of qualification. In a loan mod, the bank "modifies" your current mortgage to fit what you can afford. A significant hardship has to have occurred. A serious illness that has kept you out of work, divorce, decrease in pay, or mortgage terms adjusting or recasting are the main hardships to which banks will react.

TYPE OF LOANS MODIFIED: The loans typically modified are the crazy Option ARMs or other adjustable rate mortgages that were popular in the last few years of the bubble. If your loan had a fabulous introductory teaser rate for the first couple of years and then recast to a higher rate or if you had the "option" of paying less each month with the amount you did not pay being added onto the overall balance of the loan, then a loan mod if for you. If you have a fixed rate mortgage at an already competitve rate chances are banks won't work with you, but if you are facing the reality that you may have to give up your house, then it would be worth at least trying.

WHAT DO THE BANKS ACTUALLY MODIFY: Typically the bank lowers the interest rate on the loan to bring down the monthly payment. On the very rare occassion, they will also reduce the principle balance but again this is very rare. By reducing the rate, commonly for 5 years sometimes for the life of the loan, the monthly payment comes down to affordable levels.

WHAT IS THE PROCESS: The process starts by calling your bank and telling them that you are facing a hardship and can no longer afford your monthly payment. Most people have already missed a payment by the time they call and some banks won't even discuss the issue until 1 or more payments have been missed. Second, I recommend hiring an advocate to take over the process for you ($1,500-$3,500). Banks don't like dealing with the borrower. They would rather work with a 3rd party who has experience with and understanding of the process. Also, it is very important to get the paperwork right especially the hardship letter and the profit and loss worksheet and these people know what the banks need to see.

WHAT IS THE HARDSHIP LETTER AND PROFIT AND LOSS WORKSHEET: The hardship letter explains to the lender why you are seeking a loan mod. In it you will detail why you need the modification and how you will be able to keep paying if it is granted. The profit and loss statement breaks down your monthly expenses and income and helps the bank establish what you can afford and therefore how much to modify your loan. Because these are the two most important documents, they really should be prepared by someone who knows what banks want to see.

A FEW LAST DETAILS: Each bank has its own list of supporting documents. The hardship letter and profit and loss statement are common to all banks, but most will also want to see W-2s or bank statesments to prove income. Even tax returns can be requested. If you're self employed have a 1099 and most recent tax return handy. Property tax bills, too, can be requested.

I can not stress enough how this should not be attempted on your own. You can be the most organized, savvy person on your block, but because you're doing all the work and speaking directly to the bank you can ruin any chance you have for approval.

Lastly, but importantly, be leary of anyone asking for money up front. The California Department of Real Estate (DRE) strictly regulates this type of service. Attorneys are allowed to charge up front but the DRE thinks that you should already be that attorney's client and the loan mod should be just one of many other services he/she has provided you over time. Here is a link to the DRE website in which non-attorneys (real estate brokers) have been approved by the DRE to collect advanced fees. If the person you hire is not an attorney, they must be on this list to charge you upfront. DRE Advance Fee Approval List

If you would like a referal to someone who can help with a loan mod, send me an email. I would be happy to assist you.

ZILLOW explains "Median Home Price"

2009-02-07T08:37:00.000-08:00

In this article Zillow.com explains why using the median home price is not the best gauge for determining average home values. Since the median is the number at which half of homes sold for more and half sold for less. There has been a sharp decrease in the purchase of higher priced homes and an equally sharp increase in the purchase of lower priced homes. Overall activity was up at the end of last year due to incredibly low interest rates and favorable loan programs especially for buyers shopping in the $800's and under range.

One thing Zillow also says which is somewhat misleading, is that their site factors in more than just price when figuring home value. That maybe true but counting the number of bedrooms and the square footage (based on tax records) hardly makes for a thorough comparison. That does not account for style, a huge component in price determination, or lot characteristics (is it flat, sloped or irregular), or the most important factor, condition.

In places of newer construction tract homes, this might be a bit more effective, but not in areas like Glendale where the home stock is up to 80 years old and each home is unique in terms of upgrades, remodeling and features.

LA TIMES article Feb 3, 2009

Slow Start to the New Year, but Not For G&C!

2009-01-09T07:07:00.000-08:00

G&C Properties' 2009 New Year Inventory

Well, Wednesday 1/6/09 was the first caravan meeting of the new year. Surprisingly, there were only 2 homes on the caravan and both were what we call re-caravans, properties that have been on the market for some time and have recently had a price reduction.

I was surprised because our phone at G&C Properties went crazy during the last week of December and we've taken 4 new listings in the last 2 weeks. We're thrilled with our New Year inventory and hope that you will be, too.

All four homes are rich with Character, have been tastefully updated and are in great Glendale neighborhoods. Click the link below to be directed to our website and check out our wonderful new inventory.

http://www.character-homes.com/

FHA - It's Not Just For First-Time Buyers Anymore

2009-01-09T06:56:00.000-08:00

With lending criteria tightening and buyers finding it increasingly hard to find traditional financing, FHA (government-backed) loans are becoming all the rage. For decades the loan amount limit was down in the low $300ks so they were not an option for most buyers in our region (not to mention that tradtional financing had become so easy to get there was no need such a program). But now with loan amounts up to $625,500, there are plenty more buyers able to take advantage of the low down payment (3.5%) requirements as well as the relaxed rules about the source of that down payment.

Check out this article from CNN. It clears up some misconceptions about FHA loans.

CNN.com - Best Bet For A Home Loan Now - 1/2/09

If you'd like to speak with a loan officer or broker about FHA, and if you're a buyer today I encourage you to do so, then drop me a line and I can put you in touch with two very qualified people.

WOW! - Cramer Says to Buy Real Estate....

2008-12-17T12:58:00.000-08:00

So, I am not a huge fan of Jim Cramer, maybe because he's always bashing real estate, but the rest of the country seems to love this guy. Well, he's finally stood up and encouraged the nation to go buy a house!!

Click this link to watch a clip from his show last night in which he responds very enthusiastically to the Fed's latest rate cut.

Jim Cramer, Mad Money - Dec 16. 2008

Now's A Great Time For Buyers... As Reported in the NY Times!

2008-12-10T18:09:00.000-08:00

The New York Times published this article last week encouraging buyers to take advantage of the market now. Their main point is one we've been making for quite sometime... You won't know the real estate market has hit bottom until it's on it's way back up. Some sound logic at a time when there is little being reported that is either sound or logical.

NY TIMES, 12/5/08: It May Be Time To Think About Buying A House

WSJ.com Article About A Possible Rate Cute to 4.5% - Hopeful News For Home Buyers

2008-12-09T08:22:00.000-08:00

I found this article helpful in decifering what it means for the current home buyer if the Fed lowers the interest rate to 4.5% which it is seriously considering.

In Glendale and surrounding communities this will have a profound affect on buying power. Since our region has not seen the massive drop in prices that some other areas have over the last 12-18 months, a significant rate cut such as this will go a long way to help buyers get into a home that fulfills their needs.

WSJ.com - Lower Rates Help Sell Houses...

2009 Fannie/Freddie Loan Limits Announced

2008-11-12T16:26:00.000-08:00

This week the Fed announced the 2009 conforming loan limits by county. They have dropped slightly nationwide including here in Los Angeles and Orange Counties.

Starting Jan 1, 2009 the new residential loan limits are as follows:

1-Unit (single-family, condo) - $625,500

2-Unit - $800,775

3-Unit - $967,950

4-Unit - $1,202,925

This means that to get a competitive "Conforming Jumbo" rate (the mid-level rate) on your mortgage with a 20% down payment you can buy a home for $781,800 or less. This is not great news. As you can see there is currently a more than .5% jump in the rate from Conforming Jumbo to Jumbo 30/30. Check CS Financial's Rate Sheet for rate comparison at today's limits.

The 3 levels of rates in 2009 for single-family residences in LA & Orange Counties will be:

Conforming - ($0 - $417,000)

Conforming Jumbo ($417,001 - $625,500)

Jumbo 30/30 ($625,501 - $3,000,000)

WHAT DOES THIS MEAN FOR YOU??

I asked Jobe Whelan, a loan specialist at Countrywide, if there was a way for today's buyers to lock in at the current, higher limit. This is her response. It looks complicated but it's quite easy, so if you're SERIOUS about buying a house, then you should consider moving fast while you've still got higher buying power. FOR THE BEST DEAL YOU'VE GOT TO LOCK BY TOMORROW!

Jobe said:

"Here are my guidelines for locking/funding at the previous amounts:

Lock BY 11/13/08 with funding BY 12/10/08 - Existing pricing/loan limits

Lock BY 11/13/08 with funding AFTER 12/10/08 but BEFORE 12/31/08 - 1.75 point pricing add-on

Lock AFTER 11/13/08 with funding BY 12/10/08 - we have to submit loan for an exception, but no additional pricing add-on

Lock AFTER 11/13/08 with funding after 12/10/08 but before 12/31/08 - we have to submit for an exception and have a pricing add-on of 1.75 points

Lock AFTER 11/13/08 with funding AFTER 12/31/08 - new 2009 pricing applies"

THANKS JOBE FOR THE RUNDOWN.

For further explanation or to secure a lock on not only a competive rate, but also a higher loan limit, call Jobe Whelan, C0untrywide, at (818) 550-2232 or your prefered lender. I can't guarantee what your lender may be doing so check in with them and find out.

Recent NY TIMES Article

2008-10-24T07:47:00.000-07:00

On October 15, the NY TIMES published this article about the housing market.

Point of the story??? BUYERS: Don't miss the boat! With rates still very low, banks still able and willing to lend and sellers anxious to move on with their lives, now is your chance to get the deal for which you've been waiting.

It only makes sense that in order for home prices to come down, for the market to turn favorable for buyers, the news would have to be pretty bleak. By the time the media reports that things are on the mend, it will be too late and that ship will have sailed.

Alongside the dismal foreclosure properties there are plenty of nice homes owned by families relocating or downsizing or taking advantage and moving up. If you're truly serious about buying and have the courage to do so despite the doom and gloom on TV and in the papers, then now more than ever is the time to step it up!!

http://www.nytimes.com/2008/10/16/business/economy/16housing.html?_r=1&ei=5070&emc=eta1&oref=slogin

ALSO CHECK OUT 3 NEW G&C LISTINGS. I'D BE HAPPY TO GIVE YOU A PREVIEW. JUST GIVE ME A CALL OR SHOOT ME AN EMAIL.

http://www.Character-Homes.com

Chris Cragnotti
(818) 244-5499
chriscragnotti@mac.com

943 E. Mountain St - Price Reduced

2008-09-30T21:59:00.001-07:00

943 E. Mountain St, 91207

$1,060,000

OPEN SUNDAY 2-4

This is a lovely home, tastefully remodeled in 2005 with a granite Kitchen/Family Room combo, Master Suite w/ 2 walk-in closets and VERY LOW MILLS ACT TAXES of <$3400 p/yr. Yes, the annual property tax bill is less than $3400 per year through 2015 at which point it can be renewed for another 10 years and then another 10 years and so on.

It's a great value and a beautiful house.

Here's a link to the properties' profile on our website:

http://www.character-homes.com/listing324.html

The Dow is down...no wait...the Dow is up...no wait... Urgh. What a mess!

2008-09-30T21:30:00.000-07:00

So far, this week has been like being on a rollercoaster with a full stomach. I can understand why so many buyers are having a hard time actually making a purchase these days with the economic news being so bleak. But this is the market they've all been waiting for, the big crash, so why aren't they making a move?

They aren't moving because the outlook is so bad and the uncertainty is frightening. We should have known this was going to happen, though. In order for the market to turn in favor of buyers it had to be due to some catastrophic event, a plague on economic stability. That certainly doesn't sound like a good time to be spending money, but in fact, that's what the smart people are doing. Didn't Buffet just throw down some major dough last week?

This is one of those "be careful what you wish for" moments. It's a buyer's market, the moment of truth, but to perform you've got be courageous, to go against the grain, to close your eyes and jump. The big winners are those who trust that the greater the risk, the greater the reward.

I dare each and every buyer reading this post to, within the next two weeks, make an offer on a house. There are plenty of nice properties on the market, you've been shopping long enough to know that, so got for it, step up to the plate and swing. You never know, you just might round all 3 bases and end up at home! (Ooo, sorry. I just couldn't resist that one.)

Buy a fixer or go for the updated one? Tough choice.

2008-09-24T06:39:00.000-07:00

Before market conditions changed buying a fixer property was not a very unreasonable endeavor. The opportunity to "do your own thing" seemed like a dream come true. Even if buyers didn't have the cash on hand to do the work the day they moved in, they could refinance the house in 6 months and pull the money out. That can't happen anymore.

Today buyers are stuggling to get the 20%* or more down payment and the idea of putting up another $20,000 or more to repair or remodel a home is just not possible. The solution lies in the product they buy. If a buyer shifts their focus to an already upgraded home (and there are plenty of tastefully updated homes available) then they can ammortize the upgrades over the life of the loan. Granted the color of the kitchen cabinets or the tile on the bathroom floor may not be exactly right, but the work has been done and the home is perfectly livable for many years to come. (I won't even go into the headaches the new homeowner will forego by not having to live through what is always a long, tiresome remodel process.)

This option may require some to adjust the size of the home they buy but with interest rates wonderfully low right now, perhaps the gap between what they want and what they can get is not so insurmountable.

*currently there are traditonal loans available with down payments as low as 5%, but with programs expiring on October 1st and then again at the beginning of the year, the minumum downs payments will be looking more like 15%. FHA is still a viable option, so check with your lender.

2 New G&C Listings!

2008-09-18T20:27:00.000-07:00

850 W Mountain, Glendale 91202
$1,125,000

3+3, 2700 sf (per seller) on a 15,229 sf lot )per assr) in Prime Northwest Glendale.

Oscar-award winning art director/owner has decked this home out in a very eclectic but tasteful way. There are beautiful life-size murals in the Living and Dining Rooms that create an oppulant interior. The property's most valuable asset is the fabulous outdoor space. There are two lovely, lush patios and large grassy area perfect for a pool. The property is very private and functional. The home mostly exists in a single-story although there is a terrific lower level guest suite/apartment with separate entrance.

We will have more photos of this listing on our website within the next couple of weeks as the seller readies the home for sale.

1529 Ard Eevin Ave, Glendale 91202

$945,000

3+2, 2471 sf on a 10,880 sf lot (per assr)

This is a great opportunity to own a wonderful Spanish style home on a nice big flat lot with a pool and plenty of grass. 2 bedrooms up and 1 down, Family Rm that steps out to the patio, pool and yard and lots of character intact.

This home will be held open on Sunday 9/21 from 1:30-4:30PM.

Countrywide - Still making home loans!

2008-09-16T09:28:00.000-07:00

Ok, so I've written this plug for a lender colleague of mine. The buying process begins with getting yourself pre-approved, so here's a referral to someone at Countrywide, yes Countrywide, who can get you real-world answers in a timely manner...

I had lunch on Monday with my Countrywide agent, Jobe Whelan, and she was very enthusiastic about Countrywide's future. With the sale of Countrywide to Bank of America complete, she's excited to soon be adding additional products to her already wide variety of loan options including FHA, which is something every buyer should at least inquire about in this market. With Countrywide's sreamlined approval process, the loan can move through the system in a timely and efficient manner - even with all the additional documentation lenders now require.

Jobe is tireless in her pursuit of getting a buyer funded. If there is a way, her will is endless. She was invaluable in a recent short sale transaction we had together. The seller's lender was also Countrywide so she was able to stay on top of the file and help shepherd it through the lengthy process of approval.

If you have any questions about the loan process or are interested in getting pre-approved for a loan, you can reach Jobe Whelan at (818)550-2232

Is it really the agent's fault??

2008-09-15T09:55:00.000-07:00

The Wall Street Journal online (WSJ.com) published this article after a concerned seller reported that after almost 3 months her home had not sold. Should she consider hiring a different agent? Click below to read the article and then come back and read my responses.

http://online.wsj.com/article/SB122123124196828201.html?mod=djemRealEstate

1) The first point addressed is about the Brochure Box hanging on the sign posts. Since the market shift over a year ago G&C Properties eliminated the Brochure Box from our lawns signs. By not offering information about the house in the front yard this writer suggests that we are setting up an uncomfortable situation for the buyer. I think that is irrelevant. We found that in the previous market there were enough real, qualified buyers to go around, so it didn't matter if we just gave away a home's information without any sort of follow-up ability. The house would sell despite our ability to track these buyers. Today, if someone is interested in one of our sellers' homes, we want to be able to capture that buyer's attention and do what we can to elicit a showing.

If the buyer is too uncomfortable to call for information, then they must not be very serious about buying a house. Rather than a Brochure Box we have a sign rider with our Buyer's Hotline clearly stated on it. This is an easy-to-dial local phone number (818.244.5222) that is at all times forwarded to either myself or our other agent Leanne Reynolds so that when a buyer calls we are able to speak to them live about the house, feel them out as buyers and set up a showing. Also, if the home they are calling about is not something that will work for them, chances are we have something in our inventory that will and we can steer them to one of our other listings. This way all of our listings work together.

2) We continue to hold open houses as part of our marketing strategy. They have proven less effective in the past several months at selling the actual house we are holding open, but again it helps us to steer the buyers to other properties in our listing inventory. I think the reason they are proving not as effective in this market is because there is less urgency for buyers to buy right now and therefore most take weeks to months to ultimately make their decision. Open houses work best in a market when impulse buying is more prevalent. These days most buyers finally reach a point at which they realize they can't navigate this process alone and sign up with a REALTOR to help find them a home. Once they've done that they can go into a home anytime they want and don't need to spend their Sundays aimlessly roaming the neighborhood.

Even if we are engaged in a conversation with one buyer, we greet every new buyer that enters the home we are hosting and always make a point to offer answers to any questions they may have. To suggest that we do not make an effort with regards to this process is frustrating to read. When I enter a retail shop I do not like to be followed around by a pushy salesperson. I know they are there and that their job is to assist me should I need help. At some point, it is up to the buyer to make the effort to get their questions answered.

3) With regards to the urgent email that was sent to over 50 agents from a buyer who was in town and ready to buy, it would have been nice if this writer published this email for all of us to read. Just from her description, it sounds like the email could easily be taken for one of those crazy mass-emails we all get from the guy in Africa who wants to send us a bunch of money to protect on his behalf. If this buyer's needs were so urgent I would think he would pick up a phone and call someone directly rather than send out an email to someone he has not previously met and has no relationship.

In any arena and particularly in real estate, email is a great form of communication, but is not best suited for an initial introduction. That should always be done over the phone or in person. We rarely if ever receive unsolicited emails from buyers regarding our properties. They either come to us via websites like Realtor.com or Trulia.com or from buyers we have previously met on open house or spoken to through our Buyer's Hotline.

I can appreciate the writer's attempts to console this seller who is frustrated that their home has not sold, but I think Ms. Fletcher would have served this seller better by reminding them that most homes these days require more than just an aggressive initial price to sell. This seller did not mention whether they reduced the price of their house at all during this period. They claim it was well-priced from the start, but we as agents know that once the initial blast of showings tapers off and there have not been any offers, that it is time to reconsider how well-priced the home really is.

I understand that in a challenging market everyone wants someone to blame. I don't think that it is fair to immediately presume that the agent is at fault. In some cases it may be true, but if from the beginning buyers and sellers select a local agent with a solid track record, good exposure in the community and a marketing strategy that fits their needs, then all that is needed is a bit of patience and the acceptance of the local realities of today's real estate marketplace.

The Fall buying season is upon us!!

2008-09-08T17:49:00.000-07:00

This past Sunday was the first real Sunday of open houses since the end of summer. There is definitely a different energy in the air. As the market conditions have changed and we've all tried to make sense of confusing media reports, many consumers have taken it upon themselves to figure out for themselves what the truth is.

This is what we're hearing...

1) Short sales and Foreclosures/Bank-Owned properties are not the deal the media would like you to believe they are. The vast majority are mired in dysfunction on many levels.

Short sale properties, ones in which the owner of the home still lives in the house, are typically neglected, sometimes contain half-complete remodels but are almost always uncomfortable to visit. If a nice property is found, and they do exist, the process to get an offer approved by the bank being shorted is stressful, tiresome and almost never faster than 2 months.

Foreclosures/Bank-Owned properties, ones in which the owner is now a bank and the home is vacant, seem like they would be better, but oftentimes the house has been gutted by the previous owners bent on taking anything of value with them. In some cases, the Realtor has been given a stipend for minor fix-ups and sprucing which is usually not enough to do much more than clean the place up or make minor, superficial repairs. There are exceptions to these but very few and they sell quickly.

All-in-all the buyers we meet, the ones shopping in Glendale's lovely neighborhoods are very disenchanted with the Short Sale and Bank-Owned markets.

2) After the long hot summer of open houses, many buyers are also coming to realize that the drop in local home values is not the 20%-30% being reported nationally. While Glendale prices may show signs of sliding, it is not to that degree. The areas where that has happened are on the outskirts of the region (i.e. Santa Clarita, Riverside, San Bernadino) and those areas have actually seen a resurgence. Their prices dropped so far so fast that they've actually started to rebound in terms of activity. Glendale and the immediately surrounding cities have not seen that rapid a decline therefore our market is not springing back just yet.

With interest rates dropping this past Monday due to the Fed bail-out of Fannie and Freddie there should be some renewed confidence in the market and those rates should tease at least a few buyers off the fence.

A RECENT INTERVIEW - QUESTION #1

2008-06-12T13:26:00.000-07:00

I was recently interviewed by Frontiers Magazine and the reporter, Brian Padgett, asked some very good questions. Here’s one of them followed by my response...

1.How would you describe the state of the current housing market?

While it is currently fashionable to characterize today's real estate market as a Buyer's Market I would say that now that the initial shock of the downturn has sunk in and credit is becoming more widely available, the market in the Los Angeles metro area has begun to even out for buyers and sellers. It is unrealistic to compare today's trends to those of the overly-inflated few years immediately preceding it due to the lackadaisical lending standards that drove prices to artificial highs, so as markets go, this one is relatively "normal."

There are probably a lot of anxious sellers reading this and thinking that I'm crazy but we all got spoiled in a fast-moving market so when properties take 45 to 90 days and a couple of price reductions to sell it appears in comparison that the market is bad. As an agent who counsels buyers and sellers everyday on this subject I find that it is in everyone's best interest for a sale to move a bit slower and today's consumers appear to appreciate that as well. Buying a home is not like buying a car. A purchase deserves careful consideration and that takes time.