La Canada Real Estate

2007-08-07T16:01:00.000-07:00

My buyers have closed and the dishwasher is broken – now what?

My wonderful clients moved into their beautiful dream home; they purchased it from “flippers” & the dishwasher is a problem – it is leaking and according to the home protection company was improperly installed.

So the big question is: who is responsible? The easy answer is:

More than likely the seller; because during the inspection the seller had a dish rag on the floor near the dishwasher & this seems to indicate that the seller knew it was leaking and this may indicate that the seller was attempting to mask the defect… the inspector only tests the system so if the seller is sneakily drying up leaks... the inspector really wouldn’t know.

The home protection company has been contacted because if they will repair the dishwasher, this will be the quickest solution. We are waiting to hear back from the home inspection company’s evaluator. If the home protection company will not repair the dishwasher (and they may not because it is a “preexisting condition”) then the buyer must “look to the seller” – obviously it will be less money to settle in small claims court than to hire an attorney. W

ill keep you posted! Additional information regarding home protection plans and the home buying process, check out my Buyer's Guide.

A buyer's dilemma

2007-03-08T13:22:00.000-08:00

If you presently own a home and wish to buy another it can be a disappointing and frustrating process.

I am sure that you can understand from the seller's point of view that the least desirable offer is one that is contingent upon the sale of a home that is not yet sold. Of course if the seller has no other offers than they would certainly consider a contingent offer. In the event the listing lingers on the market, we would then have an opportunity that the seller would consider a contingent offer on their home. However, you will generally not be in a strong negotiating position as far as price, because we will have to negotiate the contingency. I wish I could change this aspect of home buying, but I can’t.

So we have three options:

don’t list your home, keep looking & hoping that we will find a home where a seller will take a contingency because they don’t have any better prospects

List your home & ask for 60 day escrow & two 30 day rent back options I have done this successfully with many sellers and have only had one in a rental (but that is a long story…and her family is now in their dream home); I have had a 95% success rate with families moving only once.

Buy a house while your home is not listed or in escrow and then carry 2 homes & 2 mortgages until we sell your house

Dirty Dishes is a no, no!

2007-02-16T10:30:00.000-08:00

Showing today… why don’t sellers’s put away their dirty dishes when they are selling their home? My clients couldn’t get past the dirt in the home… which was unfortunate because it really was a nice home and in my client’s price range.

Today is a beautiful day… if you are thinking of selling your view home in the near future; take a picture of the view today. Unfortunately sometimes when view homes go on the market, the time of year is wrong for the view and it is hard to advertise a view without a great photo.

Market Update

2007-01-11T10:21:00.000-08:00

Just when we think rates are dropping, new economic data pushes them back up a bit...
Reports issued on Wednesday showed a narrowing of the U.S. trade gap and a jump in mortgage applications, prompting investors to speculate that the Federal Reserve will not begin lowering interest rates any time soon.

Additionally December's employment showed that the U.S. economy added 167,000 jobs.
Lastly, today's jobless claims report suggests there is still some underlying strength in the U.S. economy.

Though rates are not shooting up, there is upward pressure at present.

View homes available by searching the MLS (Multiple Listing Service) at www.RealtorHarb.com

Another Outlook for 2007

2006-12-26T16:50:00.000-08:00

Despite the current economic slowdown, Federal Reserve interest-rate increases, home price declines, higher oil prices, and the war in Iraq, Wells Fargo’s senior economists forecast U.S. economic growth in 2007

“The [stock] market’s recession fears are overblown and the U.S. economy will reveal incredible resilience in 2007,” said Dr. Scott Anderson, senior economist for Wells Fargo & Company, during the company’s annual economic forecast teleconference earlier this week. “The drivers that had been pulling down the U.S. consumer and economy in the first half of 2006—such as rising energy prices and interest rates, sluggish wage growth, and a sharp drop in housing demand—began to recede or stabilize in the second half of 2006.”

“The housing slowdown has been offset by strong stock market wealth, so household wealth continues to grow.”

Anderson said most of the damage in the housing market already has occurred and there are signs of recovery—mortgage purchases are up about 15 percent since the beginning of November. Existing home inventories have plateaued over the last four months, and the Wells Fargo National Association of Home Builders index has held above its September low for three consecutive months with builders reporting an improved sales outlook.

Happy Holidays to you and yours and a prosperous 2007 to all !

2007 Housing Market Predictions

2006-12-14T15:56:00.000-08:00

New home sales will continue to fall in the first three months of 2007 while existing home sales are expected to recover, says the National Association of Realtors (NAR).

The NAR’s latest forecast says new home sales will fall 17.7 percent to 1.06 million in 2006. That’s the fourth highest total on record, according to the NAR. And sales will fall an additional 9.4 percent in 2007 to 957,000.

According to the NAR, lack of supply will be the main factor behind lower new home sales. Builders cut back on building new homes in order to maintain higher prices. Plus, high construction costs have been eating into builder’s bottom lines, forcing them to reign in building efforts.

Housing starts, which are the number of homes builders break ground on, are expected to drop 12.3 percent to 1.82 million units in 2006. Starts will then fall another 15.1 percent to 1.54 million units in 2007, says the NAR.

Existing home sales are forecast to drop by 8.6 percent to 6.47 million in 2006. That’s the third best year on record, according to the NAR. However, existing home sales are expected to recover in 2007 from the current cyclical low to sales of 6.40 million or 1 percent lower than this year’s total sales.

"By the fourth quarter of 2007, existing home sales will be 4.6 percent higher than the current quarter," says NAR chief economist David Lereah.

Though home prices have shown signs of weakness lately, the NAR says prices of existing homes will rise 1.4 percent to $222,600 in 2006 and they’ll gain another 1 percent in 2007, rising to $224,700.

New home prices, on the other hand, will be mixed. The NAR is predicting prices will ease by 0.5 percent to $239,700 in 2006, but will edge up 0.8 percent in 2007 to $241,700.

"Keep in mind that overall home prices were still appreciating at double digit rates in the first quarter of this year — prices in this buyer’s market are temporarily a little below a year ago when we were in a strong seller’s market," Lereah said. "This correction is one of the factors drawing buyers into the current market, but most sellers are still seeing very healthy long-term gains," notes Lereah.

Overall, the NAR is not expecting a repeat performance of the past three or so years.

"Roughly three-quarters of the country will experience a sluggish expansion in 2007, while other areas should continue to contract for at least part of the year," he said. "Most of the correction in home prices is behind us, but general gains in value next year will be modest by historical standards."

The housing market certainly has reached a plateau this year, and time will tell if the NAR’s predictions come true. The wild card will be interest rates and the economy. If the economy were to, for example, slip into recession, all bets are off as to how far the housing market could fall.

For more info, go to NewsMax.com

We're on "Pause"

2006-12-14T15:55:00.000-08:00

The Fed has just announced they have decided to remain in a "paused" mode and will NOT be making any changes to the Fed Funds Rate at this time. But as expected - Fed President Jeffrey Lacker still disagreed with the vote, and said another .25% hike was needed.

Because the Fed Funds Rate influences many Adjustable Rate loans, as well as being tied to the Prime Rate - the Fed's decisions can impact you greatly, especially if you are one of the millions of Americans who have an Adjustable Rate Mortgage, Home Equity Line of Credit, credit cards, or any one of the other debts impacted by the Fed Funds Rate or Prime. So for now, a continued "pause" is good news.

The Fed's main charge is to control inflation - not just for us, but for our future generations as well. And although inflation remains above the Fed's "comfort zone", they appear willing to be patient a bit longer, and see if their previous string of seventeen rate hikes will be enough to help inflation settle back down. In fact, the Fed said that it expects inflation to moderate in the coming months.

NCRC Files FTC Complaint Against Zillow.com

2006-11-02T10:34:00.000-08:00

NCRC Files FTC Complaint Against Zillow.com

October 26, 2006 – Today, the National Community Reinvestment
Coalition (NCRC) filed a consumer protection complaint to the Federal Trade Commission (FTC) alleging Internet financial services and real estate provider Zillow.com is misleading consumers, real estate professionals and financial service providers in on-line home valuations. According to NCRC, Zillow.com - who represents to offer unbiased valuations to over 67 million homes across the country - knowingly uses an automated valuation model (AVM) that is highly inaccurate and misleading. “Zillow is placing the American dream of homeownership at risk for countless working families,” says John Taylor, NCRC President and CEO. “For a company that represents to consumers that they are the ‘Kelley Blue Book of Homes,’ this is a very dangerous situation. We call upon the FTC to intervene and ensure that Americans receive accurate appraisals and valuation information to protect the single most important investment of their lives: their home.”
Recently, Zillow entered into partnership with Yahoo! to offer home valuations services to a larger market. However, in the FTC complaint, NCRC charges Zillow with falsely representing to the public that its on-line valuations are within ten percent of the homeselling price. It further states that Zillow has a less than 30 % accuracy rate when offering the valuations for public consumption.
“NCRC and its members are aware of a growing number of real estate and lending professionals who use the misinformation on Zillow.com to perpetrate fraud in our nation’s markets, often by targeting consumers in violation of Federal and State Fair Housing Laws.” continues Taylor. “During this time in our economy when the real estate market is changing and consumers are already at risk of being over extended due to the increased access to nontraditional loans, Zillow’s misinformation exacerbates the situation. Practices like theirs undermines the critical importance of valuation protections that benefit consumers and lenders alike, and guide the actions of all valuation professionals.”

The complaint further alleges that Zillow.com’s over and under valuations are causing substantial injury to consumers nationwide when they consider selling their home, using their home equity or buying or refinancing property. Vicky Cassens Zillioux, a member of the Center for Responsible Appraisals & Valuations (CRAV) Partners Council and a respected valuation professional affiliated with Strategic Development Worldwide, commented on the significance of the FTC filing. “Valuing a property for a financial decision is not a game - and should not be treated lightly by the consumer, lender, or the vendor supplying that value. When you consider how much testing and due diligence the banking regulators require for lenders to use AVMs, it seems that a similar level of accuracy should be expected by the consumer at www.Zillow.com” The complaints, can be downloaded in PDF format at www.NCRC.org or www.responsibleappraisal.org. Consumers who believe that they have been victimized by discriminatory and/or predatory lending practices may contact NCRC’s fair housing and Consumer Rescue Fund staff either on-line at www.NCRC.org or by calling 800-475-NCRC. NCRC is a national non-profit membership organization that promotes economic justice and equal access to credit, capital and financial services to traditionally underserved communities. For more information on NCRC, visit us on line at www.ncrc.org or call 202-628-8866. The Center for Responsible Appraisals & Valuations, founded by NCRC, is comprised of appraisers, lenders and other real estate/mortgage professionals dedicated to best practices in the field of home valuations. For more information on CRAV, visit them on line at www.responsibleappraisal.org or call 866-244-9708.

You can contact Phyllis @ www.RealtorHarb.com to find out what your home is worth.

Update on La Canada's Market Conditions

2006-09-15T10:45:00.000-07:00

Currently there are 80 homes available in La Canada (91011 zip code) ranging in price from $647,000 - $6,195,000; averaging 58 days on the market. 9 homes are available under $1,000,000.

Homes in move in condition and those "staged for sale" continue to sell within a week and often in multiple counter offer situations.

SELLERS TIPS: Stage your home for sale, Phyllis Harb offers the complimentary services of a professional home stager to assist you in preparing your home for sale.

BUYERS TIPS: Flexibility: escrow period, possible rent backs, etc. Your flexibility often is as important to the seller as the offered price. Of course homebuyers should be pre-qualified and the prequalification letter as well as evidence of your down payment should be submitted with your offer.

Cosmetic fixers may be the best opportunity for buyers to obtain a "deal". Cosmetic fixers are homes that offer updated major systems (roof, central air, etc.) but have unappealing flooring, wallpaper, etc.

ZIP Code: 91011

Location Characteristics: A delightful suburb with a rural flair, La Canada is renowned for its award winning schools, low crime rates and "small town" atmosphere. Numerous residents ride their horses through the streets and some of them even stable their horses at home. The city's general plan is to maintain and enhance the city's character as a low density, wooded, hillside residential community. There are several distinct neighborhoods: "La Canada Flintridge" (South of Foothill Blvd.), "Sagebrush" (West of Rosebank; NOT in the La Canada school district), "Meadow Grove" (South of Foothill & East of Gould) and "Deodars" upper La Canada, not too hilly - a very wooded and serene neighborhood.

Housing Market Could Slow U.S. GDP

2006-09-14T17:23:00.000-07:00

The U.S. economy is headed for a slowdown caused by a cooling housing market, the International Monetary Fund warned Thursday, and that could drag on global growth. But China's booming economy shows no sign of slowing down, and that prompted the IMF to raise its global growth forecast for this year and next.

The IMF revised downward its forecast for U.S. economic growth to 2.9 percent for 2007 from an estimate of 3.3 percent in April. This year, the U.S. is seen expanding 3.4 percent, the fund projected in its semiannual World Economic Outlook.

But as U.S. growth appears to falter, much of the rest of the world has picked up steam, it said.

In addition to China, both Japan and Europe are expanding and the IMF raised its forecast for global growth to 5.1 percent this year and 4.9 percent next year -- both up a quarter point from April.

"This is really the fourth year of very strong global growth," said Raghuram Rajan, the fund's chief economist in Singapore, where the IMF and its sister institution, the World Bank, will be holding their annual meeting next week.

Still, the IMF warned that inflationary pressures, high oil prices and a possible abrupt slowdown in the U.S. economy could restrain global growth.

"This strong central forecast is surrounded by more uncertainty than usual, with risks tilted to the downside," Rajan said.

"The forecasted (U.S.) housing slowdown is well and truly here," he said. "Indeed, rising inventories of unsold houses suggest things will get worse before they get better."

Last month, the Commerce Department reported that sales of new homes dropped 4.3 percent while the inventory of unsold homes climbed to a record high.

The IMF also said further U.S. interest rate hikes might be necessary as inflation remains a threat.

The Federal Reserve "faces a difficult situation of rising inflation in a slowing economy, but given the importance of keeping inflation expectations in check, some further policy tightening may still be needed," the report said. In August, the Fed decided to keep its key short-term lending rate at 5.25 percent after 17 straight hikes dating back to June 2004.

The U.S. could help reduce global imbalances by setting a more ambitious deficit reduction path and put the budget in a stronger position to respond to future economic downturns, the IMF said.

"Boosting national saving in the United States -- through fiscal consolidation and increased private saving -- is a key component of the multilateral strategy to reduce global imbalances," the report said.

Meanwhile, the IMF predicted that China's economy would continue to surge, rising 10 percent both this year and next, propelled by surging exports. But it expressed concerned about China's construction boom, which authorities have been trying to restrain.

The Washington-based fund also urged Beijing to raise the value of its currency, the yuan, saying that would help to cut its huge global trade gap -- on pace to surpass last year's $102 billion -- and bolster households' purchasing power.

Japan, the world's second-largest economy, will likely grow 2.7 percent this year on the back of solid domestic demand, but should ease next year to 2.1 percent, the IMF said.

Japan should be careful to raise interest rates gradually to avoid a "costly" reemergence of deflation, or falling prices.

In the 12-nation zone that uses the euro currency, stronger corporate balance sheets have helped bring about increased investment, rising employment and a more balanced expansion, the report said. Growth would rise to 2.4 percent in 2006 before moderating to 2 percent in 2007 largely due to scheduled tax increases in Germany, the report said.

Other risks to the outlook include further increases in oil prices, the fund said.

"Supply concerns have played a growing role in pushing up oil prices, and a major disruption in a large producer or a further escalation of security concerns in the Middle East could well lead to another upward oil price spike," the IMF said.

Also Thursday, the World Bank and IMF accused Singaporean authorities of breaching an agreement with the two institutions by barring 27 activists from entering the country to attend the annual meetings.

"We're very displeased with the current state of affairs," said Kevin Shaw Kellems, senior adviser to World Bank President Paul Wolfowitz. "There was not an indication until late in the game that there was going to be a problem."

The dispute highlighted tension between Singapore's strict controls on politics and expression, and efforts by the IMF and the World Bank to be more open to the views of grassroots groups that have accused them of elitism. It also threatened to taint Singapore's efforts as host of the Washington-based groups to showcase its economy and hospitality on a global stage.

Singaporean authorities said the city-state was "aware of its obligations under the MOU (memorandum of understanding) and would continue to honor them."

"However, the MOU also obliges Singapore to take all necessary measures for the safe passage of all persons in and out of Singapore and for their personal security and the safety of their property and the property of the organizations and delegations," a government statement said.

Read more @ NewsMax.com

Market Conditions for La Canada

2006-09-11T12:15:00.000-07:00

Currently there are 70 homes available in the La Canada school district ranging from $647,000 - $6,195,000; averaging 56 days on the market.

Homes in move in condition and those "staged for sale" continue to sell within a week and often in multiple counter offer situations.

SELLERS TIPS: Stage your home for sale, Phyllis Harb offers the complimentary services of a professional home stager to assist you in preparing your home for sale.

BUYERS TIPS: Flexibility: escrow period, possible rent backs, etc. Your flexibility often is as important to the seller as the offered price. Of course homebuyers should be pre-qualified and the prequalification letter as well as evidence of your down payment should be submitted with your offer.

Cosmetic fixers may be the best opportunity for buyers to obtain a "deal". Cosmetic fixers are homes that offer updated major systems (roof, central air, etc.) but have unappealing flooring, wallpaper, etc.

New Home Construction Declining

2006-07-21T14:54:00.000-07:00

CALIFORNIA HOUSING STARTS REFLECT NORMALIZING MARKET

New home construction in California declined during May 2006, falling 21.2 percent when compared with the construction pace recorded one year earlier, the California Building Industry Association (CBIA) recently reported. Despite the decline, housing starts continue to edge up on a month-to-month basis, suggesting builders are on track to produce 170,000 to 180,000 new housing units in California during 2006, the fourth-highest number of starts in the past 17 years.

Based on the number of building permits issued, 15,263 new housing units were started throughout the state in May, with single-family units accounting for 75.8 percent of the starts. While single-family production is expected to remain strong in most of Southern California, starts are anticipated to trend downward in San Diego, the San Joaquin Valley, the Sacramento region, and the Bay Area, according to the report.

Read more by clicking here.

Current Market Conditions

2006-06-05T12:32:00.000-07:00

Currently there are only 2 homes available in the La Canada school district, priced under $1,000,000; and 13 available from 1,000,000-1,500,000.

Homes in move in condition and those "staged for sale" continue to sell within a week and often in multiple counter offer situations.

There are several distinct neighborhoods: "La Canada Flintridge" (South of Foothill Blvd.), "Sagebrush" (West of Rosebank; not in the La Canada school district), "Meadow Grove" (South of Foothill & East of Gould) and "Deodars" upper La Canada, not too hilly - a very wooded and serene neighborhood.

SELLERS TIPS: Stage your home for sale, Phyllis Harb offers the complimentary services of a professional home stager to assist you in preparing your home for sale.

BUYERS TIPS: Flexibility: escrow period, possible rent backs, etc. Your flexibility often is as important to the seller as the offered price. Of course homebuyers should be pre-qualified and the prequalification letter as well as evidence of your down payment should be submitted with your offer.

Cosmetic fixers may be the best opportunity for buyers to obtain a "deal". Cosmetic fixers are homes that offer updated major systems (roof, central air, etc.) but have unappealing flooring, wallpaper, etc.

Click on market conditions to view information about nearby cities.

Can we wait out the storm?

2006-06-05T12:30:00.000-07:00

The Sunday edition of Barron's reports that second home prices are plunging in certain areas of the U.S., and says it may signal a multi-year correction for the housing market.

Take a look at some of this evidence from Barron's:

In Litchfield, CT, home prices in the $300,000 to $600,000 range are down 12%-14%.
In Naples, FL, sales of homes costing less than $1 million declined 45% in unit volume in the first four months of this year. More expensive homes fell 34%.
In Scottsdale, AZ, unit sales now are down by 40%-42%, and the city's inventory of unsold homes has shot up more than five-fold, to 39,000.
In the Cape Cod area of Massachusetts, the number of homes for sale on the Multiple Listings Service in the Falmouth area is up about 65% from a year ago, says Lynette Helms of the local Real Estate Associates. Median home prices in the Cape Cod town of Barnstable are down 1% in the first quarter, to $385,000.
Barron's implicates speculative investors as the main reason for the pull back in prices. It points out that six out of 10 second-home owners own two or more homes in addition to their main residences, according to a survey by the National Association of Realtors.

"The danger," says Barron's, "is that if enough of those investors decide the market has peaked, they could trigger a selling frenzy throughout the second-homes market. That, in turn, could add to the pressures in the main housing market. After all, second homes now account for a full 40% of homes sold in America."

The Local Market Monitor, a Wellesley, MA-based consulting firm, tells Barron's that 58 percent of homes in Myrtle Beach, SC, were owned by investors as of 2004. In Wilmington, NC, 38 percent of homes were investor-owned. Florida had a large percentage of speculator-owned homes: Naples at 45 percent, Cape Coral/Ft. Myers at 40 percent, Miami/West Palm Beach at 21 percent. The average level of investor-owned homes is generally 14 percent.

Ingo Winzer, president of The Local Market Monitor, comments to Barron's, "This makes me very worried because it implies that the price increases have been driven more by speculators than by people who are going to hold onto these properties, and indicates to me that there's a speculative boom."

The price jumps of the past decade or so have brought homes to (un)affordability levels not seen in years. Cleveland-based National City, a top banking and mortgage concern, says that homes are overvalued in Florida, California, and several other vacation-home spots.

Homes in Naples, FL, says the company, are 96 percent overvalued based on income levels, population densities, and historical prices. Port St. Lucie/Ft. Pierce, FL, homes are 75 percent overvalued, and Ft. Lauderdale homes are 54 percent overvalued.

Cities in Arizona, New Jersey, Oregon, New York, Nevada, and others are also overvalued, according to National City.

Alan Skrainka, chief market strategist at broker Edward Jones tells Barron's, "People don't believe in the laws of supply and demand anymore. We're not saying it's a bubble, but we're saying prices are overstated and will likely correct 20 to 25 percent over four or five years."

As that correction happens, says Barron's, the primary people to suffer will be the so-called "mass affluent" - people with investable assets of $100,000 to $1 million. A Chicago-based consulting firm, Spectrem Group, says that this demographic has more than one-third of its assets in real estate.

But, Barron's does leave some room for hope. The magazine points out that the baby-boom generation continues to pile up inherited and earned wealth. And those baby boomers will likely buy a second home to retire to. In the long-run, points out Barron's, these may just be profitable investments.

The question is do you have enough time to wait out the storm?

Hints of Inflation

2006-05-31T14:26:00.000-07:00

Last week, due to higher oil prices and further hints of inflation, interest rates recently reached the levels we had 4 years ago before the big drop of 2003. However, lowered energy costs have recently taken away some of that upward pressure and rates have relaxed a bit.

While many borrowers are trying to affording today’s home prices, our most popular program tends to be the 10/1 ARM. Although adjustable rate loans that are just now making their first adjustment are today hitting 7.65%, this program offers a longer period of stability. Though it is slightly less in rate, the 5/1 ARM is viewed as riskier due to its shorter fixed period and many borrowers are refinancing out of those loans in favor of longer fixed periods.

1000 Top U.S. Schools

2006-05-02T13:33:00.000-07:00

Good job La Canada! We are the 162nd best school in the U.S. Check to see if your school made the cut:

Newsweek Article in MSN

Home Sales Sliding?

2006-03-08T11:44:00.000-08:00

Interesting article...

Breaking from NewsMax.com and MoneyNews.com

Even the sunniest of optimists have to be a tad concerned over the direction of the U.S. housing market.

Especially after the National Association of Realtors announced that pending sales of existing homes slid for the fifth straight month.

The NAR reports that its index for pending sales was down 1.1% in January, to 116.3. The Association notes that the figure was 4.8% below January of 2005. That rate, the NAR adds, was lower than the average monthly decline of 3% that economists have seen in the last four months of 2005.

David Lereah, chief economist for the NAR, told Dow Jones Newswires that he's seeing "the soft landing we've been expecting" for the U.S. housing market. "We are at a much more sustainable level of home sales now - a welcome cooling from the super-heated conditions that were driving exceptional price gains," Mr. Lereah added. He also said that home sales continue to be solid and should provide a lift for the overall U.S. economy.

David Koenig, Associated Press business writer, sees things a bit differently. While he agrees that the five-year housing boom is finished, he writes in his lead on March 6 that "judging from growing statistical evidence and the performance of some of the nation's leading builders, the slowdown is already rippling through the economy."

He points out that not only new homes but used homes (by 2.8%)declined in January. Koenig adds that Toll Brothers Inc. reports that new home contracts declined 21% from the same time in 2005, as more homebuyers back out of contracts.

But Koenig isn't entirely pessimistic.

"Still, the prospect of a housing slowdown appears less frightening than it did a few months ago, according to those who track the industry," he writes. "There seems to be little concern that a much-touted housing bubble will lead to a collapse in sales and prices."

Economists seem to agree. New Federal Reserve Chairman Ben Bernanke said last month housing would enter a moderate slowdown but not a crash.

And William Mack, a housing analyst for Standard & Poor's, predicted "a soft landing. The overall market is just taking a step back."

New homebuyers may be able to take advantage of the softer market: Dallas-based Centex is offering $25,000 off on its homes, a practice that the homebuilder had already put into play in California.

"Around the country, builders are throwing in incentives ranging from financing help to free upgrades like swimming pools and granite countertops," says the AP story. "Some equal 10 percent of the home's list price."

The AP story also reports that the median price of existing single-family homes has fallen $219,700 in July to $210,500 in January, according to the National Association of Realtors. Investors have subsequently been bearish on homebuilder stocks. That has miffed building company executives who say that their companies are undervalued despite record earnings.

Alex Barron, an analyst in San Francisco for JMP Securities, told Koenig that builder stocks have been trading at relatively low multiples of their earnings since the late 1990s because investors always believed the strong housing market was too good to last.

"Investors kept saying, 'Next year housing will go down,'" Barron said. "I guess they're finally right."

I haven't quite made up my mind about what is happening to the housing market but I definitely see some changes. What are you thoughts ?

Home Foreclosures on the Rise

2006-02-23T16:54:00.000-08:00

MoneyNews from NewsMax.com

Apparently, 2005 wasn't a very good year for Americans trying to hang on to their homes.

A new study from RealtyTrac says that U.S. home foreclosures rose in every quarter of 2005, with almost 847,000 home properties going into foreclosure for the year. The data also shows a 25% hike in new foreclosures from the first through the fourth quarters.

"Overall U.S. foreclosure numbers climbed steadily over the course of the year, with more new foreclosures reported in every quarter," said James J. Saccacio, chief executive officer of RealtyTrac.

"This trend appears to be moving the real estate foreclosure market back to its historic levels."

Saccacio does temper his comments, noting that even at 850,000 properties in foreclosure for the year, that only represents 1% of all U.S. households.

And RealtyTrac says that Florida led the country in home foreclosures.

The Sunshine State accounted for 14% of all U.S. foreclosures in 2005, while Colorado was a distant second, at 1.6%.

Other states with foreclosure rates ranking among the 10 highest nationwide were Georgia, Arizona, Indiana, New Jersey, Ohio and Tennessee.

"Over the past few years, we've seen historically low mortgage rates, consistently escalating home prices and steady, strong employment," Saccacio said.

"This has translated into relatively low levels of foreclosure properties - particularly bank-owned properties. With interest rates rising and an apparent slowing of property valuations in most markets, we'll be watching closely to see if there's a material effect on the number of foreclosures in 2006."

The company also projects over 100,000 new foreclosures in its January 2006 estimates.

Says RealtyTrac: "103,540 properties nationwide entered some stage of foreclosure in January, a 27% increase from the previous month and a 45% increase from January 2005." The January estimates also say that foreclosures in the U.S. average out to one in every 1,117 households.

Click here to view La Canada's Market Conditions.

"Shock" over Mortgages - 1 of the many sides to this story

2006-02-17T15:53:00.000-08:00

Breaking from NewsMax.com & MoneyNews.com

Barron's warns that "sticker shock" is hitting homeowners with adjustable mortgages as rates have risen.

The rate increases may have grave effects for those with mortgages and the overall U.S. economy.

Ominously, the respected financial weekly says that "Over the next two years, monthly payments on an estimated $600 billion of mortgages, to borrowers with checkered or no credit histories - the "sub-prime" market, may zoom as much as 50 percent higher as the two-year teaser rates on hybrid adjustable-rate loans expire."

Barron's calls this a "reset problem" that poses a significant risk to the country's economic well-being.
Mortgages taken out by sub-prime borrowers include Hybrid ARMs, with low teaser rates in the early years, and IO Mortgages, which initially charge interest only.

Nearly all the $1 trillion in outstanding sub-prime loans were taken out in the past two years, most with an introductory rate period of only a few years, so the "teaser rates" on many of these loans are due to expire shortly.

Worse still is that due to the Fed's hikes in short-term interest rates, adjustable mortgages will see a boost in interest rates when they reset, according to Barron's.

In the recent past, borrowers who couldn't handle the increase in their monthly payment could sell their home to pay off the mortgage and even reap a profit, thanks to soaring housing prices.

But home prices now appear to be leveling off and in some places even declining. And inventories of homes are dramatically rising - meaning it will be difficult for borrowers to sell off their properties like they could in recent years. And many borrowers have only a narrow gap between what they owe on their mortgage and the price their house could fetch if sold - or no gap at all.

Doug Duncan, chief economist of the Mortgage Bankers Association in Washington, D.C., is optimistic:

"I just don't see any coming collapse in the sub-prime market as long as the U.S. economy and job growth stays strong and interest-rate increases remain subdued."

But according to one doomsday scenario outlined by Barron's, we could see "a coming spiral in delinquencies, foreclosures and credit losses from tapped-out, sub-prime borrowers facing monthly payments they can't meet."

Sir John Templeton first warned housing prices could crash 50%. Find out what he said and learn how to protect yourself and even profit from the coming storm @ NewsMax.com's Financial Intelligence Report.

Housing Market Changing ?

2006-02-06T11:12:00.000-08:00

We have all been curious as to where this housing market is headed. None of us has a crystal ball and opinions are varied. Here is a different point of view.

Goldman Sachs worries about housing
Here's an interesting piece of research from Goldman Sachs about the housing market.

Here are the highlights:

Surging Home Inventories Start to Push Down Prices

* The December existing home sales report suggests that US housing market conditions are deteriorating rapidly. Adjusting for normal seasonal variation, inventories of both single-family homes and condos appear to be surging.

* Presumably because of rising excess supply, median prices have begun to fall sharply. From October to December, we estimate that the seasonally adjusted median price of single family homes declined by the largest percentage in any two month period since 1986.

* Unless the market bounces back sharply in early 2006, we may need to revisit our view that US house prices are set for stagnation rather than outright declines. A pronounced decline could call into question our forecast that real GDP growth will not slow below trend until the fourth quarter of 2006, and might even imply that the FOMC will need to revert to monetary easing before the end of the year.

How to raise your credit score 100 points in 45 days

2006-01-20T15:52:00.000-08:00

HOW TO RAISE YOUR CREDIT SCORE 100 POINTS IN 45 DAYS
by Edward Jamison, Esq.

Sound too good to be true? Not as much as you’d think. Try out these five simple steps to improving your own credit score…you could see dramatic results!

1. PAY YOUR PAST DUE ACCOUNTS.

Yes, this sounds obvious, but understand that credit scoring software severely penalizes you for having accounts with a past due balance. Making sure all of your accounts are current, and paying the amount that shows as being past due on the credit report can increase your credit score by a significant amount.

2. TRY TO “GET RID” OF YOUR LATE PAYMENTS.

Contact all creditors that have reported late payments on your credit and request a good faith adjustment that actually removes the record of late payments reported on your account. Be persistent, if they refuse to remove the late payments at first, remind them that you have been a good customer that would deeply appreciate their help. Call several times if you need to and ask for supervisors…persistence and politeness pay off in this scenario.

3. REQUEST TO HAVE YOUR CREDIT LIMITS INCREASED.

Contrary to popular belief, having low credit limits on a credit card can actually hurt your credit score. Having low available credit limits affects your “actual debt to available credit ratio”. For example, if you owe a total card debt of $10,000 and your total credit available is $20,000, you are only using 50% of your total credit available. But if you have card debt of $10,000 and your total credit available is $15,000, you change your ratio to 66% of your available credit being used. The lower the percentage of debt to available credit the better, as it shows you are able to handle having credit available without running it up to the max.

4. BECOME AN “AUTHORIZED USER”.

If you have a short and limited credit history, you can ask someone to add you to their credit card account as a joint account holder or an authorized user. When added, the primary account holder’s credit card will appear on your credit report. Credit scoring software will treat the added account as though it is your account and you will benefit from the low balance and the long payment history for that account. It is important to remember that being an authorized user is helpful for your credit score only if (1) the person is carrying debt below 10% of the credit limit on that card and (2) has had good payment history on the card for seven years or longer…and the longer the history, the better. Being an authorized user is potentially detrimental to your credit score if the person giving you the card either maxes out the credit or pays late, since this would report on your credit report too.

5. DO NOT CLOSE YOUR OLD CREDIT CARDS, KEEP THEM ACTIVE.

15% of your credit score is determined by the age of the credit file. Therefore, even if your old credit cards have horrible interest rates, closing those cards will decrease the average length of time you’ve had credit…as well as increase your “debt to available credit ratio” as discussed in point 3. Use the old card at least once every six months to avoid the account rating to change to “Inactive”. Keeping the card active is as simple as pumping gas or purchasing groceries every few months, then paying the balance down. An inactive account is ignored by Fair Isaac’s credit scoring software, so you will not get the benefit of the positive payment history and low balance that card may have had in the past.

Loan Limits Raised

2005-12-01T13:59:00.000-08:00

FHLMC/FNMA raise conforming loan limits - More borrowers will be eligible for conforming loans in 2006 – translation: lower interest rate loans (conforming loans) will be available for higher loan amounts!

Limits for multi-family loans:

2 units: $533,850

3 units: $645,300

4 units: $801,950.

Good news pertaining to interest rates

2005-11-28T14:29:00.000-08:00

Although last week’s trading schedule was shortened due to the Thanksgiving holiday, Bonds finally made some moves to be thankful about, helping home loan rates improve by about .125%. The most notable news of the week was the release of the Federal Reserve’s last set of “meeting minutes”, the play by play of discussion during the last Fed meeting. It appears that more than a few members of the Fed feel that inflation is controlled, and the cycle of rate hikes may be coming to a close soon. These comments were welcomed by both Stock and Bond Traders, and brought an across the board rally on the upbeat news.

Possible Tax Dollar Savings via the Energy Tax Incentives Act of 2005

2005-11-22T16:33:00.000-08:00

If you are thinking about replacing doors, insulating or installing skylights? If you wait until the first of the year, Uncle Sam might assist you with tax credits, pursuant to the Energy Tax Incentives Act of 2005. This Act was created to provide homeowners tax credits for improvements made to a residence that increase energy efficiency.

All new windows will provide a homeowner with a maximum tax credit of $200. Doors, skylights, insulation, and metal roofs coated with heat-reducing pigments provide a credit of 10% of the cost up to a maximum of $500. The largest credit allows up to 30% of the cost or a maximum of a $2,000 credit for the equipment and installation of solar water heating, (heating of spas and swimming pools are exempt).

In addition to tax savings, the return on investment for making these improvements could save hundreds or possibly thousands of dollars in reduced utility bills, as well as increasing the value of your home. Additional information may be found @ the Home Energy Website.

As always, it is important to confirm any tax credits with a certified tax accountant. Should you need a CPA referral, please contact me via email at Phyllis@RealtorHarb.com, as I may be able to provide a great recommendation.

Housing News

2005-11-22T14:41:00.000-08:00

In housing news, the latest report showed Housing Starts declined 5.6%, just a touch more than expected, and Building Permits – which indicate future new construction activity – fell 6.7%. Economists were expecting some declines, but because the numbers were slightly lower than anticipated, this was also a positive for Bonds. Overall, housing numbers continue to remain strong – but all of the housing related reports are important to watch month over month, so we can determine any change in trend to the hot housing market.

November Market Update

2005-11-07T13:00:00.000-08:00

Currently there are only 6 homes available in the La Canada school district, priced under $1,000,000; and 14 homes listed from 1,000,000-1,500,000.

Homes in move in condition and those "staged for sale" continue to sell within a week and often in multiple counter offer situations.

There are several distinct neighborhoods: "La Canada Flintridge" (South of Foothill Blvd.), "Sagebrush" (West of Rosebank; not in the La Canada school district), "Meadow Grove" (South of Foothill & East of Gould) and "Deodars" upper La Canada, not too hilly - a very wooded and serene neighborhood.

For more detailed information, visit www.RealtorHarb.com.

C.A.R. 2006 Housing Market Forecast

2005-09-22T15:21:00.000-07:00

C.A.R. EXPECTS SLIGHT COOLING IN HOME SALES NEXT YEAR The rate of home price appreciation will moderate next year following four years of steep increases, while sales in 2006 will decline slightly from this year's record pace, according to C.A.R.'s "2006 Housing Market Forecast" released today. The forecast was presented during the C.A.R. Centennial REALTOR® EXPO, running from Sept. 20 - 22 at the San Diego Convention Center.

The median home price in California will increase 10 percent to $575,500 in
2006 compared with a projected median of $523,150 this year, while sales for
2006 are projected to reach 630,610 units, falling 2 percent compared with 2005. The double-digit gain in the median price of a home, which California has experienced for most of the past five years, will again be fueled by the continuing shortage of housing across much of the state, according to C.A.R.
economists. California typically gains nearly 250,000 new households, yet only will build about 200,000 new housing units this year, creating a shortfall of about 50,000 units.

"The economic fundamentals at both the state and national level continue to support a strong housing market in the Golden State for the foreseeable future," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "However, we also expect that the wave of new loan products that have flooded the market over the past several years have injected a higher level of risk into the market, while affordability barriers to homeownership will continue to push residents inland and even out of state."

La Canada Market Update

2005-09-14T13:31:00.000-07:00

Currently there are only 4 homes available in the La Canada school district, priced under $1,000,000.

Homes in move in condition and those "staged for sale" continue to sell within a week and often in multiple counter offer situations.

There are several distinct neighborhoods: "La Canada Flintridge" (South of Foothill Blvd.), "Sagebrush" (West of Rosebank; not in the La Canada school district), and "Deodars" upper La Canada, not too hilly - a very wooded and serene neighborhood.

SELLERS TIPS: Stage your home for sale, Phyllis Harb offers the complimentary services of a professional home stager to assist you in preparing your home for sale.

BUYERS TIPS: Flexibility: escrow period, possible rent backs, etc. Your flexibility often is as important to the seller as the offered price. Of course homebuyers should be pre-qualified and the prequalification letter as well as evidence of your down payment should be submitted with your offer.

Cosmetic fixers may be the best opportunity for buyers to obtain a "deal". Cosmetic fixers are homes that offer updated major systems (roof, central air, etc.) but have unappealing flooring, wallpaper, etc.

ZIP Code: 91011

Location Characteristics: A delightful suburb with a rural flair. La Canada is renown for its award winning schools and "small town" atmosphere. The city's general plan is to maintain and enhance the city's chararcter as a low density, wooded, hillside residential community.

360 Degree Turn

2005-09-13T11:55:00.000-07:00

When I started this blog, I wasn’t quite sure which angle I would take with it. I’ve finally decided that I would turn this blog into an information portal about all aspects of real estate and community information in La Canada, La Crescenta, and Pasadena.

Tomorrow I will be posting about current market conditions in the area.

It's been a while...

2005-09-12T14:55:00.000-07:00

Saturday was a great day! I was invited to my client, Vickie’s new home for her baby shower. She looks and feels great & is almost completely settled – which is great considering the baby (boy) is due in October. Vickie loves her new home and I am so pleased that she was able to find one before the baby came.

Thinking a lot about disaster preparedness…. Living in Earthquake Country. I wonder how many of us Angelinos are stocking up on food, water, etc. So I was searching on Google & found Ready, a website made by the U.S. Department of Homeland Security, to help us prepare for the unexpected. Anyhow, just thought I'd share it since I found it to have a great checklist of what we should all remember to have in our homes.

California owes you!

2005-07-19T15:02:00.000-07:00

I have been bored lately, not sure why. So I checked to see if the State of California owed any of my clients money. About 25% of my clients (that I checked) do have money at the State of California – how fun it was to call them. And always, it reminds them to check out my website often.

Back to work...

2005-07-12T13:59:00.000-07:00

Returned home from Balboa on Saturday, since I brought my laptop, cell phone & Natalie was working diligently at the office, it was not too much work to come back to. My sister & brother-in-law left on Wednesday and we were able to spread out a little more, but I sure miss them & the boys. My cousin’s children, John & Samantha were a lot of fun and we were all sad to say goodbye on Saturday.

Saturday night, surprise birthday party for Jerry – wow! Deanna did a great job with the pool & guesthouse additions. The landscaping and everything about the home is remarkable. Sorry that George & I needed to leave early; I had to finish laundry so Krissy & Jinan could depart for camp on Sunday the 10th. The house is quiet with them gone. I keep checking the campsite to see if they have posted pictures of the girls yet.

Good to be back home, the only problem with the girls gone, is that Jinan’s Papillion, Connie is sleeping in bed with us and George is afraid of her – probably because she hates him and bites him if he moves.

Anniversary!

2005-07-01T16:56:00.000-07:00

Just remembered it’s my wedding anniversary. George & I get so busy, we always forget, it’s gotten to be a joke. Industrial sewing machines & real estate seem to take up all of our time, but at least we'll have a week of relaxation because tomorrow we leave for Balboa; Natalie will be here, and I will have my cell phone & lap top.

Surprises

2005-06-29T13:06:00.000-07:00

Ann Smith from Chicago Title Escrow surprised me and left Chicago Title, she is moving to another company to handle commercial escrows. I worked with Ann when I was in Mortgage Banking. Ann was with Verdugo Escrow; I will really miss working with her. Her files were transferred to the Valencia branch – what a nightmare! But, the escrow officer over there is great. Will be working with Kristen Hartwick at Glenoaks Escrow in the future.

Another busy week; trying to prepare to escape to Balboa Island for a week with my sister and her two adopted sons, Alexi & Vadim, and my cousin’s children, John and Samantha and of course, George, Kristen and Jinan. Bruce Taylor also rented a house, so Jinan will be happy to have Sarah there as well. Natalie ordered a notebook computer for me, so Natalie will be taking the laptop and I will use the Notebook in Balboa. I just love GoToMyPC.com - I can access my computer from Balboa, print contracts, etc. and Natalie can handle the rest. Of course, licensed agents, Diana Monday, Rita Johnson and Chris Zastrow will help if we need it.

Met, Larry Oliver, a mortgage lender at Starbucks on Monday, I know Larry and his daughter Natasha from Gladiators Cheer. La Canada is a small town and it was great seeing Larry again.

Had a Ticktocker summer social (pool party) here yesterday for Jinan’s class, there are a nice group of girls, and it was good to see them again.

Still working on article submissions. Dino M. Zaffina at www.Dropline.biz is advertising my listings on his online magazine for the entertainment industry.

An old friend - thanks to Real Estate!

2005-06-09T13:57:00.000-07:00

I just love real estate! A couple of days ago, I heard from an old friend, I attended Hoover High with – Lynne Duke. She was looking for a Glendale realtor and found me through the search engines; using the keyword Glendale California real estate Remax – I can’t believe she recognized my picture, but Lynne was always very intelligent, so I shouldn’t be too surprised. It was great catching up with her, although, I am saddened to hear that her mom is not doing too well. My maiden name in high school? Serra! I have a sister Christine, and brother Michael.

If you've recently bought a home or just planning on redecorating, this is a great article I read in MSN, it's called: Summer Décor Trends 2005.

Memorial Day Weekend

2005-06-01T15:12:00.000-07:00

Another wonderful Memorial Day Parade in La Canada! How fun to see half of the community & their family & a lot of pets turn out. My brother-in-law Moe (Joe Harb) always sets the chairs out in front of Dish Restaurant, his wife Kathy, son Joe (Josie) and daughter Louisa met us there, as well as my other brother-in-law, Michael and his two sons Christopher & Jake. My father-in-law and husband George’s aunt also met us. My daughter, Jinan, spent the night at Sarah Taylors and walked down to sit with us, as Bruce Taylor didn’t open up Taylors this year. I took my beautiful german shepherd, Kanto, and my daughter’s Papillion, Connie who barked at every animal there. We followed up the parade with a barbecue at my father in law, Cido’s house.

Then of course real estate: wrote an offer on El Vago, what a joke that listing is: 16,000 + sq ft lot with 1600 sq foot home for $785,000 – probably sell around $1,000,000.

New Listing in La Canada

2005-04-29T13:38:00.000-07:00

Turning into a great week. Trying to wrap up inspection issues for my first time buyer clients, the Popjes – boy is it ever a seller’s market, but looks like we are almost there.

Home inspection information may be found @ www.RealtorHarb.com's on the Real Estate Buyer's Guide page . Received the photos from the photographer for my new La Canada listing and my Contracts Manager, Natalie has added them to my Featured Properties page.

Natalie has been very busy this week, tweaking my web site to ensure that when you type in the name of your city and real estate that we are in the top 3. She is doing a great job and I am lucky to have found someone with such a vast knowledge of the Internet. She previously worked for an Internet Company as an Advertising Director and this experience has proven invaluable to me. She will be taking her real estate exam soon and is anxious to be assisting area homebuyers. She is enthusiastic, honest, hard working and will be a great Realtor. I look forward to her continued employment with Phyllis Harb & Company.

Home Maintenance Providers

2005-04-28T11:09:00.000-07:00

I'm currently working on updating my Home Maintenance Providers links. These are a list of trades people in the area that have been referred to me by clients, and friends. I am constantly asked for referrals and constantly receiving glowing recommendations of trades people. I have so many new recommendations and need to get working on adding them to my web site.

Home Staging – it is especially important in this seller’s market to maximize every tool available in order to achieve the highest possible selling price. Alas, my home stager is moving to Texas, but the good news is that she is training one of my clients, who is also a decorator, I am so excited about Charis Mansur agreeing to continue to provide this valuable service to me clients.