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Sellers Must Now Disclose Water Conserving Plumbing Fixtures

2012-02-08T15:10:00.000-08:00

The California Association of Realtors successfully sponsored a new law, effective January 1, 2012, revising the Transfer Disclosure Statement (TDS) to include a checkbox in Section A for the seller to disclose whether the property has water-conserving plumbing fixtures.

The revised TDS also clarifies at the end of Section B that, by January 1, 2017, a single-family residence built on or before January 1, 1994 must generally be equipped with water-conserving plumbing fixtures. If, however, that single-family home is altered or improved on or after January 1, 2014, the water-conserving plumbing fixtures must be a condition of final permit approval.

Housing News: 11 Trends from 2011

2012-01-28T10:21:00.000-08:00

The National Association of Realtors® surveys homebuyers and sellers each year to uncover housing trends and monitor changes taking place in the industry. This year's report highlights a number of trends that haven't been seen in years.

Here are just 11 highlights from the 2011 report.

1. In 2011, 37% of homebuyers were first-time buyers - which was down from 50% in 2010.
2. Last year, 88% of homebuyers used the Internet to search for a home. That number was down slightly from a high of 90% in 2009.
3. The typical homebuyer searched for 12 weeks and viewed 12 homes.
4. The number of buyers who purchased their home through a real estate agent or broker climbed to 89% - a share that has steadily increased from 69% in 2001.
5. Nearly 1 out of 4 buyers said the application and approval process was "somewhat more difficult" than expected…and 16% reported it was "much more difficult" than expected.
6. About half of home sellers traded up to a larger and more expensive home…and 60% traded up to a new home.
7. The top 3 factors influencing neighborhood choice were: the quality of the neighborhood, the convenience to job, and the overall affordability of homes.
8. The typical seller lived in their home for 9 years. That number has increased from 6 years in 2007.
9. Although 61% of sellers said they reduced their asking price at least once, the average home sold for 95% of the listing price.
10. Only 10% of sellers sold their homes without the assistance of a real estate agent. Of those people, 40% knew the buyer prior to the sale.
11. The typical "for sale by owner" home sold for $150,000 compared to $215,000 for the average agent-assisted home sale.

Palm Springs Market Report

2012-01-26T12:42:00.000-08:00

Mortgage rates: Week ending 1/19/2012

2012-01-26T10:47:00.000-08:00

30-yr. fixed: 3.88% fees/points: 0.8%

15-yr. fixed: 3.17 fees/points: 0.8%

1-yr. adjustable: 2.74% Fees/points: 0.6%

(Source: Freddie Mac)

Calif. house price drop 7th biggest in U.S.

2012-01-20T11:22:00.000-08:00

California house prices had the seventh-biggest price drop among U.S. states in November, falling 5.9% from year-ago levels, according to Santa Ana-based data firm CoreLogic.

When distressed houses — bank-owned properties and homes selling for less than their mortgages — are removed from the mix, prices were down 0.9% from the previous November.

On the one hand, California no longer ranks among the top five states with the biggest price drops. But six years into the housing market crash, it’s still in the top 10.

By comparison, the national average price drop was 4.3% including all single-family houses in the nation, and 0.6% when distressed housing was excluded.

Said Mark Fleming, CoreLogic’s chief economist:

“With one month of data left to report, it appears that the healthy, non-distressed market will be very modestly down in 2011. Distressed sales continue to put downward pressure on prices, and is a factor that must be addressed in 2012 for a housing recovery to become a reality.”

In addition, CoreLogic’s latest Home Price Index (HPI) shows …
In Orange County, single-family house prices fell 4.9% from November 2010. That compares to a 4.7% decrease year-over-year in October.
Excluding distressed houses, O.C.’s prices werer down 2.5% (compared to 3.2% in October).
Nationwide, home prices declined 1.4% from October to November, the fourth consecutive month-to-month decrease.
U.S. home prices were 32.8% below the peak of the housing bubble in April 2006; non-distressed house prices were down 23.1% from the market peak.
Nevada had the nation’s biggest price drops in November: Down 11.2% for all houses and down 8.8% excluding distressed properties.
Vermont had the nation’s biggest price gain: Up 4.3% including distressed housing and up 1.5% without it.
Of the 50 states, prices were up in just nine and in Washington, D.C.; they were down in 38 states and unchanged in three.
Of the 100 biggest metro areas, 77 showed year-over-year price declines.
Among the biggest metro areas, Chicago had the biggest price drop: Down 10.5% and donw 1.9% excluding distressed houses.
New York City and environs had the biggest gain: Up 1.3% and up 1.9% excluding distressed houses.
Prices were down 5.7% in Los Angeles County and in the Inland Empire.

Palm Springs Area Foreclosures Drop 13%

2012-01-18T16:20:00.000-08:00

From our local newspaper, The Desert Sun:

Foreclosures fell 13 percent across the Coachella Valley in December compared to the same month a year ago, a report shows.

There were 984 mortgage default notices, bank repossessions and foreclosure auctions filed valley-wide last month, compared to 1,123 in November, Irvine-based RealtyTrac reported.

The decrease comes after a 5.7 percent increase in November that ended seven months of double-digit declines.

The December numbers would show an even larger decline of 22 percent if Thermal had not posted a 94.7 percent increase in foreclosure activity. Foreclosures there jumped from 19 to 37 during the month, RealtyTrac reported.

Bret Cohn, a mortgage consultant and senior vice president of Franklin Loan Center in Palm Desert, said the drop in foreclosure activity is partly because of a moratorium that was in place during this past holiday season.

Several large mortgage lenders, along with Fannie Mae and Freddie Mac, announced last year they would not foreclose on delinquent borrowers during the holidays from Dec. 19 to Jan. 2, although legal and administrative proceedings for evictions could continue.

“There is also a lot of pressure coming from the White House to try to work with delinquent homeowners to either work out the loans through modification or allow homeowners to ‘short sell' their homes, rather than go through foreclosure,” Cohn said.

Cohn, other analysts and mortgage experts expect to see an increase in foreclosure activity in the months ahead, however, as long-delayed foreclosure action begins to kick back into gear.

Brandon Moore, RealtyTrac CEO, said the lack of clarity regarding many of the documentation and legal issues that have plagued the foreclosure activity “means we are continuing to see a highly dysfunctional foreclosure process” that is inefficiently dealing with the delinquent mortgages.

At the same time, the office of the U.S. Comptroller of the Currency noted in a report that most applicants who meet the income and other qualifications for loan modifications on their homes already have received assistance.

The OCC reported that the number of loans modified annually rose from 421,322 in 2008 to 939,226 in 2010, then fell to 310,018 through the third quarter of 2011.

RealtyTrac reported about 1.9 million U.S. homes were hit with default notices, foreclosures and other actions in 2011. That was down from 2.9 million in 2010.

About 5.16 percent of homes in the Riverside-San Bernardino-Ontario region had at least one foreclosure filing — the fifth-highest rate of 18 in the most recent national report.

It took an average of 348 days to complete the foreclosure process nationwide, RealtyTrac reported, up from 336 days in the third quarter and up from 305 days in the fourth quarter of 2010.

In California, 3.2 percent of homes logged a foreclosure filing in 2011, down from 4.1 percent in 2010.

Increase in short sales give market a little breathing room

2012-01-06T09:01:00.001-08:00

Short sales up, foreclosures down. That's because in many cases a short sale may be the lesser of two evils for banks and homeowners versus a foreclosure.

It's a tarnished silver lining for people at risk of losing their houses and homeowners in neighborhoods blighted by bank-owned properties, but the robosigning scandal that slowed the foreclosure process to a crawl appears to have increased lender interest in short sales.

"Foreclosure sales are pretty devastating," said Faith Schwartz, executive director of Hope Now, a resource for homeowners facing foreclosure. "We'd much prefer a modification, but if [homeowners] don't quality, then the next best alternative is deed-in-lieu or short sales."

Short sales, in which the lender agrees to let the owner sell the home for less than the amount owed on the mortgage, and foreclosures both climbed in 2010, but while short sales rose by 26,000 this year, the number of foreclosures fell by 255,000, according to Hope Now. Short sales, along with deed-in-lieu of foreclosure deals in which the lender takes the deed essentially as payment for the mortgage, still upend families, torch credit ratings and hurt neighboring property values, but they're far less toxic than foreclosures.

Short sales are better for homeowners. They can stay in their homes, and the quicker process means they can begin rebuilding their credit sooner. Credit scoring firm Fair Isaac Co., which developed the FICO score, says foreclosures and short sales slash the same number of points from a homeowner's credit score. Homeowners with short sales may be able to obtain a loan sooner than foreclosed homeowners, though, which can improve their credit.

In some states, mortgage lenders can pursue a delinquency judgement against homeowners for the difference between the amount due on the mortgage and the purchase price at a foreclosure auction. A delinquent homeowner engaging in a short sale has an opportunity to negotiate away the bank's right to sue for that judgement.

The biggest plus for banks is that they stand to make more from a short sale than a foreclosure. According to foreclosure specialists RealtyTrac.com, the average price of a foreclosed home in the second quarter of 2011 was $164,217, while the average price of a short sale was $192,129.

Besides yielding less, foreclosures also cost lenders more in legal and administrative resources. "The incentives against foreclosing are even larger now," Karen Dynan, co-director of the Economic Studies program at the Brookings Institution, said via email. "Servicers are facing enormous staffing constraints because they are trying to deal with so many distressed properties, so it is probably even harder now to find the staff to do the paperwork for the foreclosure."

Lenders are also spending more on due diligence, she said. "Servicers and lenders are being heavily scrutinized right now so they probably are more worried than ever about making a mistake in a foreclosure that could subject them to legal liability in the future."

Neighborhoods also benefit from short sales rather than foreclosures. "Short sales typically sell at less of a discount than foreclosure sales do," Jed Kolko, chief economist at real estate website Trulia.com, said via email. "Also, foreclosed homes often sit vacant while short sales are re-occupied more quickly. For both these reasons, short sales tend to depress neighboring property values less than foreclosures do."

Another issue that plagues foreclosures is vandalism, either from opportunistic criminals preying on vacant homes or from disgruntled homeowners. "It's often not a friendly process so you frequently have cases where people deliberately vandalize homes," Dean Baker, co-director of the Center for Economic and Policy Research, said.

Some economists worry that the drop in foreclosures is less an indication of lenders' willingness to compromise and more a function of a huge backlog of foreclosures that haven't been processed. "Foreclosures are going to be a drag on the market for along period of time," Baker said. Until these distressed homes are resold and assimilated back into the market, real estate prices can't stabilize.

Baker added, though, that lenders facing years' worth of legal wrangling and costs to execute a foreclosure may be more willing to accept a buyer's offer in a short sale.

The other caveat is that short sales aren't an option for all distressed homeowners. Short sales are contingent on the ability of sometimes multiple lenders to agree on a price that a buyer is also willing to pay. For people who took out multiple mortgages or have other liens, this presents a challenge. "It's just a little more complicated when you have more parties involved," Schwartz said.

New Listing - 41124 Calle Bosque, Indio, CA

2011-12-22T11:06:00.000-08:00

Inheriting a Home, and a Loan

2011-12-05T05:00:00.000-08:00

THE death of a family member may bring a barrage of sadness, a bequest of property — and a mortgage to repay.

“It’s like getting a gift with a string,” said Judith D. Grimaldi, a principal of Grimaldi & Yeung, an estate planning law firm in Brooklyn. Thirty-one percent of people 65 and older, in fact, have home mortgages, according to the Census Bureau.

“Most of my clients just end up selling the house,” Ms. Grimaldi said, “taking the proceeds and saying, ‘Thank you, Mom.’ ”

But if the beneficiary wants to keep the home, just who is responsible for paying the mortgage until the estate is settled can fall into something of a “gray area,” said Deirdre R. Wheatley-Liss, a tax lawyer at Fein, Such, Kahn & Shepard in Parsippany, N.J.

Under federal law, the mortgage must be allowed to remain in effect without changes when it passes from one person to another because of a death. This negates any due-on-sale clause in the mortgage.

Who pays generally depends on the deceased relative’s will, and also who among the survivors has the ability to maintain the mortgage, the experts say.

The will might stipulate, for example, that the heir receive the home, free and clear, Ms. Wheatley-Liss said, which may mean that the executor will be directed to sell stocks, bonds or other assets in the estate to pay off the mortgage. (If there is no will, state law will come into play.)

The survivors, meanwhile, should look at the inheritance of property from a practical, economic perspective. “You need to look very strongly at whether you can afford to maintain the mortgage and maintain the property,” Ms. Wheatley-Liss said.

Although there may be some emotional attachment to the home, having it appraised can help determine whether it’s worth keeping. “The question would always be: ‘Are you protecting equity?’ ” said Michael McHugh, the president and chief executive of Continental Home Loans in Melville, N.Y.

An estate lawyer or financial adviser can provide advice on estate taxes and other expenses associated with the property.

The survivors should contact the lender early on to let it know that the borrower has died and that they are the heirs, or the executor of the estate, and to determine the loan’s status. Mr. McHugh suggests sending the lender a copy of the death certificate and a letter from the estate’s lawyer.

It is also important to determine whether the deceased relative has stayed current on the property taxes, if they are not paid through the lender.

But what if the mortgage is delinquent — overlooked in a final illness? If the payments are behind by 60 days or so, it is possible to catch up. If it’s 90 or more days late, the property may already be in foreclosure proceedings, Mr. McHugh said. Depending on state laws and lender practices, the lender could either demand full payment of all the back payments, or continue with the foreclosure.

Some family members ask about whether they can “walk away” from the property if it is underwater, or worth less than the mortgage balance, Ms. Grimaldi said, noting that such requests are more common in this shaky economy. They can do this and allow the foreclosure to show up as the estate’s responsibility and record, she said. But care is needed if the estate has other assets, like a second home or an investment portfolio, which the lender could come after to satisfy the debt.

In some cases, negotiating with the lender for a short sale on the property may be the best solution. In a short sale, the lender agrees to accept less than what is owed on the mortgage.

If the deceased relative had a reverse mortgage on the property — one that paid him or her a stipend and accrued a balance — the heirs could pay off the mortgage balance in full; sell the property and pay off any balance with the proceeds; or refinance.

When a Co-Borrower Has Poor Credit

2011-12-02T11:51:00.000-08:00

IN most cases it is easier to qualify for a home mortgage by applying with another person — be it a spouse or partner, or even a close friend or sibling. But problems may arise if the other person’s credit score is less than stellar.

The federal agencies that oversee and buy mortgages from lenders, like Fannie Mae and Freddie Mac, require lenders making conventional loans to focus on the lower of the two FICO scores. (Scores generally range from 300 to 850, with the national median at 711, according to FICO.)

But both scores may be factored into other loans. On a jumbo loan, for instance, the lender is likely to “put more weight on the credit score of the person with the higher income,” said Greg Gwizdz, an executive vice president of Wells Fargo Home Mortgage in Somerville, N.J.

For some people, however, it may be necessary to hold off on a home purchase for a few months to allow the co-borrower with credit issues to clean up his or her report and raise the score.

This can be done by being “hypervigilant on paying your bills on time” for a few months, said Tracy Becker, the president of North Shore Advisory, a credit restoration company in Tarrytown, N.Y., or by perusing the credit report and correcting any inaccuracies.

Ms. Becker says that one way to raise a FICO score by 30 to 40 points in a few months is to be added as an authorized user to a well-established person’s credit card, even if you don’t use the card. Your score can rise, too, if you pay down credit-card balances so they are at least 10 percent of the maximum credit limit.

Even if you cannot afford to pay down the cards that far, it can help even to reduce the balance to, say, 60 percent of the limit, said Joanne Gaskin, the director of product management global scoring at FICO. The closer your balance is to the credit limit, the more the score will increase when the balance is paid down.

If the cards are “maxed out,” Ms. Gaskin said, “that’s going to be very negative.”

Preparation is key, Ms. Becker said, suggesting that both parties review their credit reports and scores together early on in the home-search process.

Alexander Arader, the owner of Arader & Associates, a mortgage broker in Stamford, Conn., said that a borrower with a credit score of 620 to 640 could pay as much as one percentage point more in interest than a borrower with good credit, say around 760 or higher.

“Do whatever it takes to get your credit score up,” he said.

If there is little time for a significant upgrade in a credit score — perhaps because you found your dream home and can’t wait to make an offer — borrowers should explain to the lender any issues that might have affected the credit report, said Mr. Gwizdz of Wells Fargo.

“Take time to tell your story,” he said, and make sure you carefully document any major life issues that might have contributed to a score’s decline, like an illness, divorce or job loss.

The borrowers also need to make it clear why a second person is on the mortgage, especially if that person is not living in the house, he said. A parent helping a child buy his first apartment in Manhattan will have less trouble explaining the connection than a friend who isn’t there full-time, he said.

Sometimes it may make more sense to have just one person on the mortgage — provided, of course, that the person can afford the monthly payments alone. Some banks may allow two people to appear on the property’s deed with only one on the mortgage note.

While the FICO credit score is important, it is only one part of what lenders evaluate in the application process, Mr. Gwizdz noted.

Among other factors that underwriters examine: the size and source of the down payment (many are now requiring 20 percent); both applicants’ incomes and whether they have been rising; their debt-to-income ratios; and the property they are buying.

High-End Hits the Auction Block

2011-11-28T09:50:00.000-08:00

Long associated with desperate sellers and foreclosed homes, auctions are now selling mansions and luxury estates.

Calabasas, Calif.

Last Friday, about 60 people gathered at a 10,300-square-foot French Chateau-style home in a gated community of this wealthy suburb of Los Angeles. Nibbling on fruit salad and croissants, the visitors meandered through the home's large kitchen, checked out the view of the rolling hills or peeked into the movie theater with stadium seating while it played "Pretty in Pink."

They had all gathered to see this seven-bedroom, seven-bath mansion, which was rented by singer Britney Spears between roughly 2008 and 2010, sell to the highest bidder. The home had previously been on the market for as much as $10.8 million; bidding would start at $4.5 million.

"I'm starting to get butterflies," confessed Regina Leon, who owns the home with her husband Jose "Pancho" Leon, a builder and founder of a money-order company. After several of her girlfriends mentioned they were coming by, Ms. Leon had decided at the last minute to cancel her hair appointment to stay to watch the action unfold. Mr. Leon said he wasn't worried, though he admitted he'd gotten only about four hours of sleep the night before.

Once considered a last resort for desperate sellers or for banks unloading foreclosed properties, home auctions are increasingly being used to sell penthouse apartments, waterfront mansions and grand country estates—many of them languishing in an uncertain market after significant price cuts. At Premiere Estates Auction Co., founded 10 years ago, the average price of a home the company auctions is up nearly 40% from a year or so ago, says auctioneer Anthony Fitzgerald. Gadsden, Ala.-based auction company JP King, in business since 1915, has seen inquiries for home auctions above $10 million so far this year double from a couple of years ago, said Craig King, the company's president. In 2010, the company had 11 inquiries for homes above $10 million; so far this year it's had 24.
Luxury Homes on the Auction Block

Once considered a last resort for desperate sellers or for banks unloading foreclosed properties, home auctions are increasingly being used to sell high-end homes.

A 10,300-square-foot French Chateau-style home in a gated community of Calabasas, Calif., a wealthy suburb of Los Angeles, hit the auction block last Friday.

As the housing slump drags on, the carrying costs of waiting out the market have become onerous, even for the wealthiest. A seller who put a home on the market in 2009 hoping that a turnaround was on the horizon may now be realizing that it could take several years or more for the market to rebound. Taxes on a $10 million or $20 million home can run into the hundreds of thousands of dollars a year, in addition to staffing, landscaping and other upkeep. The ultra high-end of the market is particularly vulnerable: As of September, houses priced at $10 million and above declined nearly 9.5% in value from last year, according to Zillow, the online housing tracker, compared to a 4.4% decline overall.

"Eventually, even the people who have unlimited means will throw in the towel at some point," said George Graham, the CEO of Concierge Auctions.

Some brokers warn that when a well-known mansion or estate fails to sell at auction, it can become tarnished, making it harder to sell in the future. "If you have all that hype and then it doesn't sell, then you've got egg on your face," said Jeffrey Hyland, president of Beverly Hills-based real-estate firm Hilton & Hyland.
Going Once...Going Twice...

Homes With Opening Bids of $500,000 or Less

Bob Hurwitz, a longtime Southern California broker who recently tried unsuccessfully to auction off a $45 million sculptural-style home in La Jolla known as "the Razor," said he's concluded the process doesn't benefit sellers, who assume all the risk by paying marketing fees up front. (Fees can range anywhere from a couple thousand dollars to upwards of $150,000 for ultra high-end homes.) He said auctions can also turn off potential buyers who don't want to pay an additional 8% to 12% in premiums after the sale, which can amount to a million dollars or more for an expensive home. "It just doesn't make sense," he said. Laura Brady, of Concierge Auctions, said most buyers are aware that all real-estate transactions involve fees, and the premiums are included in auction-sale prices, "just like real estate agent's fees" are in a traditional sale.

A Tuxedo Park, N.Y., home sold for $2.3 million in November 2010. Original Price: $9.8 million. PROS: A circa-1909 mansion on 19.3 acres an hour from New York City. CONS: Taxes were $87,050 in 2010; no central air conditional at time of auction.

Mansions and estates are frequently auctioned for much less than their previous price tags, though those price tags may have been set unrealistically high to begin with. While both art-auction houses Christie's and Sotheby's are affiliated with real-estate companies, neither conducts real-estate auctions in the U.S. (Both have some affiliate agencies that have auction divisions which partner with companies like Concierge and Premiere Estates.)

Christie's International Real Estate's CEO Neil Palmer said in an e-mail that while such auctions are common in parts of Asia and in Australia, the company doesn't view them as the best way for sellers to get the best price in the U.S., because when sales happen they are "more often than not at a steep discount."

Mr. King from J.P. King, on the other hand, said that homes generally sell for steep discounts in today's real-estate market even when they're not sold at auction.

Last November, Maureen Coen, who works in fixed income for a financial company, heard about the upcoming auction of a home in her neighborhood in Tuxedo Park, N.Y., one morning and decided to show up. (Concierge Auctions, which handled the sale, says usually 48 hours advance notice is required to qualify.) She won the house for $2.3 million—75% less than its original list price of $9.8 million. "I got phone calls that weekend [from friends] telling me I got the deal of the century," she says.

A historic New Canaan, Conn., estate with a 16,000-square-foot main house, a carriage house and three-bedroom guest cottage once priced at $22 million is coming up for auction next month with a starting bid and minimum reserve of $6.8 million—or nearly 70% off. Bronko Terkovich, a real-estate developer and architect in Jackson Hole, Wyo., plans to auction off his property there on Dec. 10. His 10,000-square-foot home was listed for $16 million in 2009; the reserve, or minimum sale price, is just under $6 million. "We wanted it to have a reasonable low-level price to attract the greatest spectrum of possible buyers," he said.

On Wednesday, Sheldon Good & Co. auctioned the 56-acre Napa Valley estate of the late winemaker and philanthropist Robert Mondavi, with bidding starting off at $13.9 million in a sealed-bid sale; the property came on the market in May 2010 for $25 million. The company said several bids were submitted by the deadline and are still being reviewed.

As the average price of homes hitting the auction block ticks upward, a handful of companies have cropped up to handle such sales. Auction.com, which sells distressed real estate online, recently launched a luxury division. Jeff Biebuyck and Karen Baldwin, two Sotheby's agents who had the Leons' Calabasas listing, are launching an auction division of their traditional brokerage business, as has Jon Kohler, whose Georgia firm specializes in selling multimillion-dollar historic plantation properties in the South. John McMonigle, an Orange County, Calif., real-estate broker known for his trophy-home listings, has spun off an auction division called M Lux Exchange.

Bids Under Review: Auction is this week for this Napa Valley home. Original Price: $25 million. PROS: 56-acre estate of late winemaker Robert Mondavi. CONS: A 50-foot swimming pool in the living room may not suit everyone's taste.

Auction companies argue that they can reach a wider pool of buyers than local brokers. They also say an auction announcement can create a sense of urgency that's impossible to replicate in the buyer's markets of today. "In this market, buyers think they can wait three months," said Roger Ewing, the president of Ewing & Associates Sotheby's International Realty.

The challenge for these companies is to aggressively market expensive-to-build, sometimes one-of-a-kind homes that will likely sell for steeply discounted prices without making it feel like a fire sale. Mr. McMonigle said his open-house events usually include Champagne and live music. "We want to perceived as that type of luxury experience," he said. "We're approaching it much like Sotheby's would approach the sale of art." Brochures are often sent directly to high net worth potential buyers, or their brokers. Ads are placed online, in national newspapers or glossy luxury magazines in the U.S. and, sometimes, as far away as Brazil or China.

On the day of the sale, generally only qualified bidders who have transferred money into an escrow account, or brought a cashier's check, are invited, along with local brokers and, sometimes, neighbors. Hors d'oeuvres are sometimes served along with tea, coffee or Champagne. Concierge says at its Hawaii auctions, bidders are given floral leis. Mr. Fitzgerald of Premiere said that for morning sales, he likes to serve donuts and coffee to energize the crowd. The podium is generally placed to maximize the home's best views.

Mr. Leon said he didn't immediately consider an auction when he listed the Calabasas home for $10.8 million in 2007, after his wife concluded it was too big for their family of five. But after about two years and a price cut to $7.9 million, Mr. Leon decided to auction the home with Premiere. "It's the entrepreneurial way of selling," he said. Regina, his wife, eventually agreed, though she initially didn't like having to explain to neighbors that their home was not in foreclosure.

With several dozen people gathered around a podium under a white tent, the auctioneer warmed up the crowd, getting them to sing the national anthem (it was Veterans Day) and conducting a mock auction that included bidding on Disneyland (a little girl in pigtails won). Then the bidding for the home began. The minimum bid of $4.5 million was quickly offered. Someone on the phone with an auction-company representative initially appeared to have the highest offer—$5.5 million—beating out about four others who showed up in person. After a minute or two of trying to rouse a counter bid from the crowd, the auctioneer banged his gavel on the podium and announced the home had sold, subject to seller confirmation.

It hadn't—$5.5 million wasn't high enough to meet the reserve, the minimum amount the Leons were willing to sell the home for. After most of the crowd had left, a neighbor who had been the runner-up in live bidding negotiated a $5.9 million purchase, including auction-company fees. The buyer, Dan Hosseni, owns Pizza Hut franchises across the state. He and his wife, Nancy, walked around the backyard with their 4-year-old daughter (the Disneyland winner) discussing plans to expand the dining room to accommodate their large extended family. "This is a house [my wife] and I are going to grow old in," Mr. Hosseni said.

Though the sale has still yet to be finalized, Mr. Leon said he was happy. "It gives me an opportunity to move forward," he said.

Roads To Avoid In Palm Desert This Week

2011-11-21T11:32:00.000-08:00

You may want to avoid some roads in Palm Desert this week. Beginning today, crews began paving lanes on El Dorado, Country Club, and Frank Sinatra drives. The work is expected to last through Wednesday. And that's when most traffic delays are expected to take place.

Courtesy of KPSP, channel 2

The Estrogen Expo

2011-11-17T21:32:00.000-08:00

Girls (and guys), go wild! The Desert Cities Woman’s Show, Nov. 19-20, encourages the exploration of personal and professional growth, self-enhancement, and information on all things female. Held at Renaissance Esmeralda Resort & Spa in Indian Wells (44400 Indian Wells Ln.), the weekend features celebrity guests, speakers, demonstrations, and an exhibit hall brimming with more than 100 displays on home design, jewelry, health and beauty, fashion, and more.

Now in its fourth year, it’s one of the largest and most dynamic women’s expos in Riverside County, offering participants, both male and female, an opportunity to immerse themselves in information on health and wellness, financial planning, bridal and event planning, golf tips, home and garden experts, eye care specialists, life coaching, anti-aging solutions, and other interests and concerns important to women. Desert Regional Medical Center will introduce the latest technology in minimally invasive robotic surgery. There will be demonstrations and an open discussion on the advantages and common use of robotic procedures for women.

“Women make or influence every decision in the household, from fashions, health, and financial planning to buying a new car,” says event director Diana Marlo. “This expo brings it all together under one roof.”

Cap the day off with “A Taste of the Valley,” which features samples from 16 local restaurants paired with fine wines and daily food demonstrations by The Bikini Chef. For more information, visit www.desertwomansshow.com or call 1-760-285-3903.

Today's Interest Rates

2011-11-14T09:33:00.000-08:00

Conforming Loans $75,000 - $417,000
30 Year Fixed 15 Year Fixed 5 Year Fixed ARM 7 Year Fixed ARM 10 Year Fixed ARM
4.250% 3.500% 3.250% 3.375% 3.750%
1 PT. 1 PT. 1 PT. 1 PT. 1 PT.
4.425% APR 3.750% APR 3.374% APR 4.736% APR 4.995% APR
FHA Loans $50,000 - $355,350
FHA/VA 5 Year Fixed ARM FHA/VA 30 Year Fixed
3.250% 3.875%
1 PT. 1 PT.
4.600% APR 5.120% APR
Jumbo Loans $500,000 - $5,000,000
40 Year Fixed
I.O. 15 Year Fixed 30 Year
Fixed
3 Year Fixed
ARM
5 Year Fixed
ARM
7 Year Fixed
ARM
10 Year
ARM
5.750% 4.125% 4.750% 3.250% 3.375% 3.750% 4.500%
1 PT. 1 PT. 1 PT. 1 PT. 1 PT. 1 PT. 1 PT.
5.960% APR 4.285% APR 4.988% APR 3.476% APR 3.621% APR 3.935% APR 4.725% APR

nforming Loans $75,000 - $417,000
30 Year Fixed 15 Year Fixed 5 Year Fixed ARM 7 Year Fixed ARM 10 Year Fixed ARM
4.250% 3.500% 3.250% 3.375% 3.750%
1 PT. 1 PT. 1 PT. 1 PT. 1 PT.
4.425% APR 3.750% APR 3.374% APR 4.736% APR 4.995% APR
FHA Loans $50,000 - $355,350
FHA/VA 5 Year Fixed ARM FHA/VA 30 Year Fixed
3.250% 3.875%
1 PT. 1 PT.
4.600% APR 5.120% APR
Jumbo Loans $500,000 - $5,000,000
40 Year Fixed
I.O. 15 Year Fixed 30 Year
Fixed
3 Year Fixed
ARM
5 Year Fixed
ARM
7 Year Fixed
ARM
10 Year
ARM
5.750% 4.125% 4.750% 3.250% 3.375% 3.750% 4.500%
1 PT. 1 PT. 1 PT. 1 PT. 1 PT. 1 PT. 1 PT.
5.960% APR 4.285% APR 4.988% APR 3.476% APR 3.621% APR 3.935% APR 4.725% APR

Mortgage Minute - FHA

2011-11-11T11:24:00.000-08:00

How Appraisals Are Derailing Home Sales

2011-11-10T21:41:00.000-08:00

New requirements are resulting in more cancelled or delayed contracts.

Three months ago, real estate agent Gary Rogers says he was conducting a fairly routine home sale. Then he received the home appraisal's report, which valued the three-bedroom colonial in Waltham, Mass., at $430,000, rather than the $448,000 selling price the buyer and seller had agreed to. Unless the buyer agreed to put up more money, or the seller to lower the price, the deal was off. Fortunately, after nearly two weeks, Rogers says the two sides agreed to meet in the middle.

In the past, appraisals rarely disrupted a home sale. But realtors and housing experts say new requirements and a difficult housing market are doing just that. Year-to-date through September, one third of realtors have said appraisals resulted in buyers and sellers delaying or canceling contracts or renegotiating to a lower sales price, according to the National Association of Realtors. That's up from 29% in all of 2010 and up from less than 10% prior to 2009.

Indeed, lenders say they're requiring more thorough home appraisals. Appraisers determine the value of a home largely by reviewing the prices at which similar homes nearby sold for in recent months. During the housing boom, appraisers could cite as few as three recently sold homes; today, lenders are often requiring two to three times that, says David Stevens, president and CEO of the Mortgage Bankers Association. To meet that quota, appraisers say they sometimes have to use homes that aren't similar and may be foreclosures or short sales, though they are taking into account what this property would have sold for if it wasn't a distressed sale, says a spokesman for the Appraisal Institute, an association of real estate appraisers. "Appraisers have become much more cautious," says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla.

To be sure, a more thorough appraisal process does have its benefits. It lets a buyer know whether they're offering too much to buy a particular home. "For buyers, the appraisal is a check and balance -- it's there to ensure the buyer isn't overpaying and the lender isn't over-lending," says McCabe.

In the past, appraisals rarely disrupted a home sale. But realtors and housing experts say new requirements and a difficult housing market are doing just that. AnnaMaria Andriotis has details on Lunch Break.

It may also make houses cheaper for buyers -- though not without more hassle. If the appraisal value comes in below the agreed buying price, the lender will typically offer a smaller mortgage. For example, on the house that Rogers sold, the buyer would have gotten a mortgage for $358,400, or 80% of $448,000. But when the appraisal value came in at $430,000, the lender adjusted the mortgage amount to 80% of the appraisal figure, or $344,000. The contract the buyer and the seller had signed, however, stated the higher buying price of $448,000, and the buyer (and potentially the seller) had the option to decide if they wanted to make up the $18,000 difference.

Typical solutions include having the buyer paying that difference out of pocket or the seller lowering his price -- or both. And sellers often do lower their prices: For example, during the three months ending September, 13% of realtors reported contracts were renegotiated to a lower sales price, compared to 10% who said contracts were canceled and the 8% who said contracts were delayed, according to the NAR.
How sellers can prepare:
Before putting their home on the market, sellers should research what similar homes near them are selling for by looking at online listings, visiting open houses and speaking with realtors, says Rogers. "It's always good to get more than one opinion," he says. They can also ask for their own home appraisal, which could give them a sense of how close (or far off) the figures are. The cost of an appraisal varies but typically ranges from $250 to $600.

How buyers can protect themselves:

When buyers make an offer, they should include statements in the contract guaranteeing they'll receive their initial down payment (typically 3% to 5% of the agreed buying price of the home) back if full mortgage financing doesn't come through for the agreed price or the appraisal value is below the offer that's in the contract, says McCabe. Separately, the buyer (who's required to pay for the home appraisal) should ask for the appraisal report and look at what properties the appraiser used as comparisons, says Rogers. It should, he says, include homes that are in the same neighborhood and the same style. In other words, a colonial home shouldn't be compared to a ranch.

What to do if appraisal value comes in below the purchase price:

In this situation, experts say buyers have several options. If they're no longer interested in the home, they can walk away. (However, without a contingency clause -- see previous section -- they risk losing their initial down payment.) But if they still intend to buy the house and they can prove the report excluded similar, nearby properties or had some other issue, they can appeal or ask their lender for a second appraisal.

If those strategies don't work, the buyer and the seller can consider working out an agreement on their own. Lastly, to report a problem with an appraiser, consumers can contact their state's appraisal board.

Who do you know that may want to buy this house?

2011-11-06T05:37:00.000-08:00

It is a 3 bedroom luxury home on the golf course in The Springs Country Club.

The owner passed away and the family is selling.

Homes in The Springs range from

$550,000 up to $1,000,000.

This estate sale is offered at $399,000.

If you know someone, please contact me immediately.

Dave W (760) 861-0625

DaveW@KW.com

4 Duke Drive

Rancho Mirage, CA 92270

U.S. to lower the size of mortgage it will guarantee

2011-09-29T18:31:00.000-07:00

The current conforming loan limit, which determines the maximum size of a mortgage that the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac can buy or guarantee – is set to expire Friday, Sept. 30.

Beginning Oct. 1, the conforming loan limit will decline to $625,500, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum.

Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.

FHA May Change Loan Limits October 1st

2011-09-06T10:34:00.000-07:00

WHAT YOU NEED TO KNOW ABOUT

UPCOMING CHANGES TO FHA LOANS

As you may know, unless Congress extends the expiration deadline, Federal Housing Administration (FHA) loan limits set in 2008 will drop significantly beginning October 1. Congress raised the loan limit amount in response to the housing crisis to help spur the homebuying market. FHA loans offer borrowers very competitive rates and terms, and they only require a 3.5% down payment. Allowable debt ratios are higher than the typical debt-ratio limits imposed for conventional loans, and there are no income limit qualifications, so more people can qualify for them.

If the loan limit drops on October 1, many California homebuyers will face higher down payments, higher mortgage rates and stricter loan qualification requirements. Borrowers seeking larger mortgages will have to apply for conventional loans or jumbo loans, which may be subject to higher interest rates and down payments. Here are four things you should know to help your clients now.

1. LOWER LOAN LIMITS. The conforming loan limit determines the maximum mortgage amount that FHA, Fannie Mae and Freddie Mac can buy or guarantee. If your client wants to stay under the current loan limits, then encourage them to purchase now and close by September 30th.

2. DROPS BY COUNTY. Under the new FHA loan limits, some counties will see significant drops in their loan limits. San Diego County will experience a $151,250 drop, Sonoma County a $141,550 reduction, while Orange and Los Angeles Counties will drop by $104,250. To see a full, county-by-county list of changes, click here.

3. JUMBO LOANS. The current FHA loan limit is $729,750. After October 1, that limit may drop to $625,500. Mortgage loans higher than that amount will be considered non-conforming jumbo loans, which typically have rates that are 0.875% to 1.5% higher than conforming rates, depending on the loan product, and require higher down payments.

4. MORE STRINGENT REQUIREMENTS. FHA loan requirements may allow for lower credit scores. So an applicant with a lower FICO score can still qualify for an FHA loan, even if they can’t for a conventional loan. Your clients may be able to obtain an FHA loan three years after defaulting or having a loan foreclosed.

7 Key Reasons Why NOW is the Prime Time to Buy a Home

2011-09-06T00:02:00.000-07:00

1. Home affordability is at an all-time high.

The median mortgage payment on the median priced home as a percentage of the median household income is lower than it's been in a generation.

2. Mortgage rates have reached rock bottom.

As interest rates start to inch back upwards, monthly payments and total loan costs will spike upwards.

3. Buy Now; Buy Low!

After declining nearly three years, home prices are stabilizing.

4. Sellers are motivated.

This means that buyers have the upper hand! From banks looking to dispose of foreclosed properties to homeowners who are fiercely competing among an excess of housing inventory, buyers have untold choices and negotiating power.

5. Financing is readily available for qualified buyers!

Banks are getting back in the game and ready to lend to well-qualified buyers.

6. Owning vs. renting is increasingly favorable.

Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it's been in the past 22 years.

7. Homeownership is at the core of the American Dream!

Owning a home is critical to financial stability and wealth building. It's a forced savings account, a place to live and a fabulous tax deduction.

MY NEWEST LISTING - 78130 CORTEZ LANE, #53, INDIAN WELLS,CA.

2011-09-02T13:38:00.000-07:00

Click the link below and tour this special Indian Wells condo.

http://www.cpgtours.com/16968

SHOP FOR HOMES 24/7 AT http://www.YourDesertHomes.com/

THEATRE IN THE DESERT

2011-09-02T09:45:00.000-07:00

Here’s a sampling of what you’ll find as the curtains rise around the desert. .

ANNENBERG THEATER

The Annenberg Theater, part of Palm Springs Art Museum, presents a unique mix of comedy, live theatre, music, and dance. The 2011-12 season kicks off Nov. 19 with An Evening with Brian Stokes Mitchell. Dubbed “the last leading man” by the New York Times, Mitchell has received Tony nominations for his performances in Man of La Mancha, Kiss Me Kate, Ragtime, and King Hedley II, winning for Kiss Me Kate. Additional performances include Freda Payne and The Calloway Sisters. 101 Museum Dr., Palm Springs, 1-760-325-4490; www.psmuseum.org

CABARET THEATRE WEST

Cabaret Theatre West presents musical theater with actors, dancers, sets, and costumes just like Broadway. But instead of a story, the show has a theme. Productions planned for 2011-12 include Hooray for Hollywood, a tribute to the music of Hollywood movies and musicals, and Hooray for the USA, a musical journey across the country. 1-760-568-0024; www.cabarettheatrewest.com

COACHELLA VALLEY REPERTORY

Coachella Valley Repertory now has its own performance space at The Atrium in Rancho Mirage. This year’s hows include Vivian, starring soap actress Judith Chapman as Vivian Lee, along with a Children’s Outreach Production of Jonathan Dorf’s Thank You for Flushing My Head in the Toilet, a play about bullying in schools. 69903 Hwy. 111, Ste. 116, Rancho Mirage. 1-760-296-2966; www.cvrep.org

DESERT ROSE PLAYHOUSE

Another newcomer, Desert Rose Playhouse presents plays and musicals geared toward the lesbian and gay community, as well as a broader audience. The company’s opening production, tentatively scheduled for January 2012, is Paul Rudnick’s hilariously funny biblical rewrite, The Most Fabulous Story Ever Told. 1- 760-321-6788; www.desertroseplayhouse.org

ENSEMBLE THEATER COMPANY OF PALM SPRINGS

Among the fledging theatre companies this year is Ensemble Theater Company, combining the talents of Playwright’s Circle and A Fluid Movement. The group is looking to mount original productions and to present a new works festival and a classical works festival. etcstage@gmail.com; Phone and Website info forthcoming

THE FABULOUS PALM SPRINGS FOLLIES

The Fabulous Palm Springs Follies is a Broadway-caliber extravaganza featuring the music, dance, and comedy of mid-20th century America — with a cast old enough to have lived it. Its 21st season celebrates summer in a new show titled Hot! Hot! Hot! Joining the renowned long-legged lovelies and gentlemen at the historic Plaza Theatre are ventriloquist Brad Cummings and Rex and musical acts John Davidson (Nov. 1-Dec. 31), Maureen McGovern (Jan. 5-Mar. 10), and The Diamonds (Mar. 13-May 20). 128 S. Palm Canyon Dr., Palm Springs. 1-760-327-0225; www.psfollies.com

GROVES CABIN THEATRE

Founded in 1985, this intimate 20-seat venue in nearby Morongo Valley presents critically acclaimed but usually lesser known shows. Groves Cabin is planning a full slate for the 2011-12 season, including Del Shores’ play, Daughters of the Lone Star State. 8768 Desert Willow Tr., Morongo Valley. 1-760-365-4523; www.grovescabintheatre.org

HI-DESERT CULTURAL CENTER

The Hi-Desert Cultural Center was founded in 1967 in the eclectic town of Joshua Tree, and has been promoting cultural arts in the Morongo Basin ever since. The Kaye Ballard Playhouse is home to dozens of music and cultural events each year. 61231 Hwy. 62, Joshua Tree. 1-760-366-3777; www.hidesertculturalcenter.com

INDIAN WELLS THEATER

The Indian Wells Theater is a beautifully designed 300-seat performing arts theatre that hosts a Broadway play series, the Indian Wells Pops Orchestra and other musicians, and a distinguished speaker series. Their season promises to excite. 37500 Cook St., Palm Desert. 1-760-341-6909; pdc.Csusb.edu/eventstheater/index.htm

INDIO PERFORMING ARTS CENTER

Over the past few years, IPAC has grown into a vibrant center for the arts, presenting affordably priced plays, musicals, comedy, dance, and children’s events throughout the year. IPAC’s 2011-12 musical theatre season starts with Sister Robert Anne’s Cabaret Class, Nov. 18-27. For the holidays, IPAC presents Amahl and the Night Visitors and Nutcracker Ballet Act II, Dec. 9-17. The post-holiday season kicks off with Bingo, Jan. 13-Feb. 12. Next up is The 25th Annual Putnam County Spelling Bee, February 24-March 25. The season concludes with 4 Guys Named Jose and una Mujer Named Maria, April 13-March 13. 45175 Fargo St., Indio. 1-760-775-5200; www.indioperformingartscenter.org

MCCALLUM THEATRE

McCallum Theatre presents a dazzling array of plays, musicals, dance, music, and more. This season there are two Broadway series: “Broadway Blockbusters” and “Broadway on a Budget.” Each series is comprised of four great shows. The Blockbusters series begins with My Fair Lady, Jan. 13-15. Next in the series is Rogers and Hammerstein’s South Pacific, Jan. 27-29. The third offering in the series is Mamma Mia!, March 9-11. The Blockbusters series concludes with 2008 Tony winner In the Heights, March 30-April 1.

The Broadway on a Budget series is equally exciting, opening with The Marvelous Wonderettes, Feb. 3-4. The nostalgia continues with Grease, March 2-3. Next up is the 2001 Tony winner for Best Special Theatrical Event, Blast!, March 21-22. The budget series concludes with Burn the Floor, April 6-7.

The McCallum also has a terrific slate of shows not in the Broadway series. Riverdance visits Nov. 25-27. The Peking Acrobats visit Jan. 26. Tchaikovsky’s The Nutcracker is performed by the Moscow Classical Ballet Dec. 13. The renowned Gilbert and Sullivan repertory company presents HMS Pinafore on Jan. 17. The Russian National Ballet performs Tchaikovsky’s Sleeping Beauty on Feb. 6. On Feb. 13, Teatro Lirico d’Europa presents Puccini’s operatic masterpiece, La Boheme. And on Feb. 19, Canada’s Royal Winnipeg Ballet presents Moulin Rouge. 73000 Fred Waring Dr., Palm Desert. 1-760-340-2787; www.mccallumtheatre.com

PALM CANYON THEATRE

The Palm Canyon Theatre, now in its 13th season, is a not-for-profit professional theatre presenting shows year-round. The schedule leans heavily toward well-known musicals, with the occasional straight play thrown in to keep things interesting. Tickets are reasonably priced, and shows are enjoyable. The season opens with Del Shores’ classic comedy Sordid Lives, Sept. 9-11. Gilbert and Sullivan’s comic opera, Pirates of Penzance, runs Oct. 7-23. The Mystery of Irma Vep runs Oct. 27-31. The Fantasticks, the world’s longest continuously running musical (42 years), plays Nov. 10-20. PCT celebrates the holiday season with Irving Berlin’s White Christmas, Dec. 2-18. After the holidays the season resumes with Hairspray, the story of a plump teenager who fights for integration in 1962 Baltimore, Jan. 27-Feb. 12. Stephen Sondheim’s A Little Night Music runs Feb. 24-26. Urinetown, an unconventional musical satirizing the legal system, politics, capitalism, and Broadway itself, takes the stage March 9-18. Robert Harling’s comedic tearjerker, Steel Magnolias, plays March 30-April 1. The Lerner and Loewe classic, Brigadoon, runs April 13-29. The season closes with West Side Story, May 11-27. PCT’s 2012 summer show is Fame, July 6-22. 538 N. Palm Canyon Dr., Palm Springs. 1-760-323-5123; www.palmcanyontheatre.org

PALM DESERT STAGE COMPANY

The new troupe will stage It’s a Wonderful Life: The Live Radio Play (Dec. 1-11) and I Love You, You’re Perfect, Now Change (Feb. 16-Mar. 4). www.pdstage.com

SCRIPT2STAGE2SCREEN

Among the new companies to spring up last year is Palm Desert Stage Company. This season they’re planning two great shows: It’s a Wonderful Life: The Live Radio Play, Dec. 1-11, followed by I Love You, You’re Perfect, Now Change, Feb. 16-March 4. www.script2stage2screen.com

THE SHOW

The Show at Agua Caliente Casino • Resort • Spa in Rancho Mirage is the desert’s newest and nicest venue for live entertainment. The arena has excellent acoustics and no bad seats. Top attractions scheduled for 2011-12 include Train and Carlos Mencia in September, and Don Rickles in October. 32250 Bob Hope Dr., 1-888-999-1995; www.hotwatercasino.com

THEATRE 29

Theatre 29 is located in Twentynine Palms, near the Marine base in the high desert. It’s a bit of a drive to get there, but the company mounts enjoyable shows and their ticket prices are modest. Check their website regularly for upcoming shows. 73637 Sullivan Rd., Twentynine Palms. 1-760-341-4151; www.theatre29.org

This article appears in the September 2011 issue of Desert Guide

Did you like what you read here? Subscribe to Palm Springs Life »

ALL FORECLOSURES IN LA QUINTA - as of August 29, 2011

2011-08-29T13:11:00.000-07:00

There are currently 58 foreclosure listings in La Quinta, CA.

See them all here, by price.

Just click the link below.

http://davew.kwrealty.com/listings/areas/27399/Community/La%20Quinta/propertytype/SINGLE,CONDO,LAND,RENTAL/listingtype/Foreclosure%20Bank%20Owned/sort/mlsupdatedate%20desc/

THIS MONTH IN REAL ESTATE - AUGUST, 2011

2011-08-25T16:03:00.001-07:00

GREAT NEWS FOR SHORT SALE SELLERS - Thank You Jerry Brown!

2011-07-19T15:55:00.000-07:00

New law gives added protection to short sale hopefuls

By Lily Leung

8 a.m., July 18, 2011

A new California law will further protect homeowners pursuing short sales by barring first and secondary lien holders from going after sellers for money owed after the short sales close.
Gov. Jerry Brown signed Senate Bill 458, authored by Senate Majority Leader Ellen Corbett (D-San Leandro,) into law on Friday.
A short sale is a transaction in which the homeowner owes more on the loan than the property is worth. To sell the home, the lien holder or lien holders must approve the sale because the amount owed to the lien holder will be "short" of what is currently owed by the borrower.
Real estate tracker DataQuick said short sales made up 17.7 percent of Southern California home resales in June.
The new law builds on the protections offered by a previous law, SB 931, which required the first lien holder in a short sale to accept an agreed-upon payment as the full payment for the outstanding loan balance. The previous law did not address junior lien holders.
The new law, which became effective immediately, now prohibits secondary lien holders from pursuing deficiencies after a short sale closes.
"As the economic recession continues to impact Californians, SB 458 will allow homeowners forced to sell at a loss to have closure at the end of the process," said Corbett, in a statement to the Union-Tribune. "By extending anti-deficiency protection to all loans on a home when a short sale occurs, a homeowner can use a short sale as an alternative to foreclosure or bankruptcy."
The California Association of Realtors call the bill's signing a "victory for California homeowners."
"SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lien holders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property," said Beth L. Peerce, president of the Realtors group, in a statement.

This Month In Real Estate (US) July 2011

2011-07-16T20:36:00.000-07:00

Welcome To Palm Springs

2011-04-18T21:16:00.001-07:00

Create your own video slideshow at animoto.com.

This Month In Real Estate

2011-04-11T10:50:00.000-07:00

This Month In Real Estate (US) March 2011

2011-03-03T17:18:00.000-08:00

This Month in Real Estate From Keller Williams Realty & David Watkowski

2010-11-15T10:08:00.000-08:00

November 2010

Market Update

The housing market continues its gradual recovery without the aid of the tax credit. Sales are slower but growing. Although it will likely be uneven at times, slow growth is believed to be the trend moving forward. Interest rates hit a new historic low again, a major factor in helping keep mortgage payments incredibly affordable.

Extended periods of record low interest rates and further plans from the Federal Reserve Board to expedite recovery have some concerned about future inflation. One such investment guru, John Paulson, touted the benefits of owning real estate as a hedge against inflation on Forbes.com. “Your debt and interest payments get locked in at record lows, while the price of your home will rise … If you don’t own a home buy one … if you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.”

This march back up continues to provide excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates. Experts anticipate both the economy and the housing market will continue their paths on the way to a complete recovery.

Home Sales

Home sales continued to rebound in September, increasing 10% compared to the previous month. This builds on August’s gain of 7.6% that followed a large drop caused by the expiration of the federal tax credit in July. Sales are expected to gradually grow as the market moves toward recovery without government stimulus. The recent foreclosure moratorium has opened up opportunities for short sales. Although it could make the near-term “choppy at times,” industry experts expect the overall trend to continue growing slowly.

Home Price

After four months of prices remaining on par with year-ago levels, September showed a slight decline. Last September distressed properties were 29% of all home sales; this September that number rose to 35%. The larger proportion of distressed sales, which are typically discounted, helps to explain the decline. While these discounted sales provide opportunities for buyers, sellers look forward to the general trending upward of home price.

Inventory

There are fewer homes on the market again in September, representing 10.7 months of inventory. While still at a relatively high level, months of inventory shrank by nearly a month in September from August’s 11.6 and nearly two months since the 12.5-month supply in July. This continues to represent an excellent opportunity for buyers and investors who have not yet taken advantage of the abundant opportunities of the market including record low rates, an ample but shrinking selection of homes, and highly affordable prices.

Affordability

Housing remains at near-record affordability levels, and prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. Housing is approximately 60% more affordable now than during the height of the market.

Source: National Association of Realtors

Interest Rates

Mortgage rates once again set new record lows in early October to 4.19% and remained below 4.3% throughout the month. These historically low rates contributed to real savings for buyers. Furthermore, the longer the buyer owns the home, the greater the savings they will realize. As economic activity gains momentum, rates will rise to keep inflation at an acceptable level.

Topics For Home Owners, Buyers & Sellers

Prime Time to Buy

7 Reasons Why Now Is a Great Time to Buy a Home

Recent history has reframed some of what had long been taken for granted about buying a home. Namely, we’ve learned that even though buying a home remains one of the best and safest investments available, a home should not function as an ATM or a short-term speculation strategy. So, where does that leave us? A lot smarter, able to recognize an opportunity when we see one, and aware of the facts that point to now as the prime time to buy a home.

Home affordability is at an all-time high. The median mortgage payment on the median-priced home, as a percentage of the median household income, is lower than it’s been in a generation.

Mortgage rates are at rock bottom. It’s hard to imagine interest rates going much lower, and when they start to inch back upward, monthly payments and total loan costs will spike upward.

Home prices are back on the rise. After declining for 30 months, home prices are trending back upward. The time to get in the market is now.

Sellers are motivated. This means that buyers have the upper hand. Sellers are fiercely competing among an excess of housing inventory, which often means buyers have untold choices and negotiating power.

Financing is readily available. Banks are back in the game and ready to lend to well-qualified buyers.

Owning vs. renting is increasingly favorable. Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it’s been in the past 22 years.

Homeownership is still at the core of the American Dream. Owning a home is critical to financial stability and wealth building. It’s a forced savings account, a place to live, and a fabulous tax deduction.

For more detail, check out Keller Williams Realty’s 7 Reasons Why Now Is a Great Time to Buy a Home! and The Wall Street Journal’s 10 Reasons to Buy a Home.

Sources: The Wall Street Journal, Inman News, KW Research

Contact me,

David Watkowski
your local real estate expert,

for information about what's going on in our area.

(760) 861-0625

http://dwatkowski.servingpalmsprings.com/

Brought to you by KW Research. For additional graphs and details, please see the This Month in Real Estate PowerPoint Report.

The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed on This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

A Great Propertunity from Dave - La Quinta Dream Home - Pre-Approved Short Sale

2010-11-02T16:24:00.000-07:00

Pre-Approved Short Sale in Hohokam River Estates in La Quinta. This short sale is pre approved...we do not have to tell them we switched buyers. It is READY TO CLOSE. Send offer of $465,000 and I will open escrow right away.
If you are looking for steal, and a home that you DO NOT have to wait to sell please take a look at this listing.
You cannot find a home like that for this price in this subdivision. This corner home truly feels like an estate with it's large floor plan and 1/2 acre homesite. The home boasts 4 bedrooms and 3.5 baths. Features include: Custom decorator tile and paint, large family room with fireplace, beautiful dining room, club style living room, office/den and chefs kitchen. Each bedroom has a bathroom and large closet. Enjoy your enormous back yard with pool, spa, fountain, fire-pit and built-in BBQ. This is a dream home!

Click the link below for details & photos.

http://desertareamls.rapmls.com/scripts/mgrqispi.dll?APPNAME=Desertarea&PRGNAME=MLSLogin&ARGUMENT=4smpO5Hy1oK3XrPqyqBF%2FNSw%2F%2Bpiwm1vSLdxgt7AZfo%3D&KeyRid=1&Include_Search_Criteria=%3E

5 TIPS FOR AVOIDING FORECLOSURE SCAMS

2010-10-20T18:54:00.000-07:00

Work only with a nonprofit, HUD-approved counselor.

If you are looking for help to prevent foreclosure, be sure the counseling agency is on the Department of Housing and Urban Development's list of approved agencies. Visit HUD's website for an easily searchable list of HUD-approved housing counseling agencies, or call 877-HUD-1515 (877-483-1515) for more information. If you are approached by foreclosure counselors--by mail, phone, or in person--make sure the counseling agency is HUD-approved before you do business with them.

Don't pay an arm and a leg.

You should not have to pay hundreds--or thousands--of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee before providing you with any services or who accepts payment only by cashier's check or wire transfer. In general, do not pay money to anyone unless you know exactly what services you will receive.

Be wary of "guarantees."

A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home--but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.

Know what you are signing--and be sure you sign it.

Don't let a counselor pressure you to sign paperwork you haven't had a chance to read through carefully or that you don't understand. Don't sign any blank forms or let "the counselor" fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.

If it sounds too good to be true, it probably is.

If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission's webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Federal Citizen Information Center's Consumer Action Website.

California Foreclosures Update

2010-10-15T10:57:00.000-07:00

From the Los Angeles Times

California to join multistate inquiry of foreclosures by banks

In late September and early October several major lending institutions began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes. This action is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.

MAKING SENSE OF THE STORY

To date, Bank of America is the only lender that has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order.
Non-judicial foreclosures in California, however, do have legal requirements that lenders must follow. For example, California law requires that lenders for certain mortgage loans made between Jan. 1, 2003, and Dec. 31, 2007, attempt to make contact with borrowers to discuss options for avoiding foreclosure at least 30 days before filing a notice of default. Lenders also must sign a declaration in the notice of default stating that they tried to contact the borrower, made contact with the borrower, or fall within an exception (such as a bankruptcy filing).
This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government. The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete.
It is important to note that Bank of America is temporarily suspending foreclosure sales, but not necessarily halting its actions during other stages of the foreclosure process.

NEW LAW REGARDING SHORT SALE DEFENCIES JANUARY 1, 2011

2010-10-05T08:53:00.000-07:00

No Short Sale Deficiencies: Starting January 1, 2011, a seller's first trust deed lender cannot obtain a deficiency judgment against the seller after a short sale. Providing written consent to a short sale shall obligate the first trust deed lender to accept the sales proceeds as full payment and discharge of the remaining amount owed on the loan. This law applies to first trust deeds secured by one-to-four residential units, but does not limit the lender from seeking damages for fraud or waste by the borrower. Senate Bill 931. Governor Schwarzenegger vetoed Senate Bill 1178, our sponsored bill, which would have extended California's anti-deficiency protection to refinance loans.

GOOD NEWS REGARDING FHA LOANS

2010-10-01T11:20:00.000-07:00

Re-Post from the California Association of Realtors

October 1, 2010

We’re starting off the new month with some great news from Washington, DC today that we wanted you to hear from us first.

Late yesterday, President Obama signed a resolution that included a provision extending through fiscal year 2011 the current conforming loan limit of $729,750 for high-cost areas, including many in California. The same limits will also be extended to loans insured by the Federal Housing Administration.

We’re extremely pleased that the Obama administration recognizes the need for such an action so that the housing market can recover. Without the extension, which was set to expire at year’s end, FHA loan limits would have dropped by as much as 50 percent in some areas, and the conforming loan limit would have dropped by about 40 percent.

C.A.R and the NATIONAL ASSOCIATION OF REALTORS® (NAR) have long advocated making permanent higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, a provision of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits from $417,000 to $729,750 in high-cost areas and extending the limits through 2009. Yesterday’s actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through Sept. 30, 2011.

We applaud our congressional representatives for their actions to extend the higher loan limits through 2011. Without the extension of the higher loan limits, many California borrowers would have a harder time refinancing homes and obtaining financing for new home purchases. We hope Congress will now focus on making higher loan limits permanent.

The conforming loan limit determines the maximum size of a mortgage that government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.” Non-conforming or “jumbo loans” typically carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.

Sincerely,

Steve Goddard

2010 President

CALIFORNIA ASSOCIATION OF REALTORS®

CHEAP RENT IN INDIAN WELLS ?

2010-09-15T12:06:00.000-07:00

Just $1,600 a month in Indian Wells, One year lease or longer. Check it out.

44620 Elkhorn Trail, Indian Wells, CA Powered by Postlets

OPEN HOUSE THIS SATURDAY IN INDIO, CA

2010-09-08T14:16:00.000-07:00

For Sale: 4BR/3BA Single Family House in Indio, CA, $299,500

Keller Williams Realty Doing Great Business in the Desert

2010-08-21T14:58:00.000-07:00

At a Team Michael staff meeting Friday morning we learned the following:

Comparing 2009 statistics to 2010 statistics year to date ...

Units Sold: Keller Williams +17% vs. The Market +1%

Listings Taken: Keller Williams +9% vs. The Market <-6%>

Listings Sold: Keller Williams +26% vs. The Market +1%.

Units Under Contract: Keller Williams +32% vs. The Market +7%.

The moral to this story is quite simply "Keller Williams Rules."

David
Partner / Team Michael
Rancho Mirage, CA

By the way, if you know of anyone serious about buying or selling real estate in the Palm Springs area, please tell them about me & please tell me about them. If you are a real estate professional or are interested in a career in real estate, please contact me. I can help you to start or expand your business. - David Joseph Watkowski (760) 861-0625

Sales and Prices Rising

2010-06-21T19:41:00.000-07:00

Home sales and prices in the Coachella Valley rose in April and May, the latest real estate market report from MDA DataQuick shows.

This makes the seventh consecutive month of positive sales and price gains.

Economists say that's a sign the market is in a stage of recovery.

“The market is doing very well for buyers and sellers,'' said Brady Sandahl of RE/MAX Real Estate in Palm Springs.

DataQuick reported the 1,029 sales of new and existing homes in April rose 8.1 percent and the median price hit $215,000, reflecting nearly a 23 percent surge in price from 2009.

May posted 1,021 sales, recorded a 7.8 percent rise in sales and measured a $210,000 median. That median is 15.7 percent higher than in May 2009.

Since December 2009, median prices have been above $200,000 — besting the performance for most of 2009 when the median bumped along the $180,000 line.

Prices off from 2008

The April and May home sale prices still are well off the $301,000 median in April 2008 or $309,000 in May 2008 — prices hit their highest point at $410,000 in February 2006 — but the Southern California market already is at the $300,000 level.

Southern California home sales prices topped $300,000 in May for the first time in 20 months, a spurt DataQuick linked to a cache of buyers capitalizing on low mortgage rates and the California home-buying tax credits that kicked in May 1.

The gains also were attributed to a shrinking stock of “ultra bargains” in the low-cost inland areas.

The DataQuick report for April and May seems to bear that out.

Hard-hit foreclosure zones of Coachella, Desert Hot Springs, Indio, Thermal and Thousand Palms, which had triple-digit sales activity in 2008 and part of 2009, saw sales contract year-over-year in April and May.

As sales there sputtered, the buying gravitated to communities of Indian Wells, Palm Desert, Palm Springs, La Quinta and Rancho Mirage.

Home sales in La Quinta are up 42 percent in April and up 22 percent in May, as is the median sales price.

The median rose 22 percent to $380,000 in April, up from $310,000 in 2009. Rancho Mirage's 65 sales drove up the median some 23 percent, as home sales prices rose to $440,000 from $355,000 in April 2009.

The Indian Wells median sales price rose 4.9 percent year-over-year in April to $524,500. And it outdid itself in May, measuring a 158 percent increase in sales and a new median of $810,000. That's up 40 percent from May 2009.

Positive indicators

Inland Empire economist John Husing said the sales increases and median price gains are positive indicators.

“May, one year ago, was the bottom of the market,'' Husing said.

Banks may be holding back supply from the foreclosure process to keep supply levels on pace to stimulate sales, he added, and advised: “Watch for slippage in sales volume.

“Still, the large increases in price shows the market really has started to recover.”

Luxury home sales activity has also picked up in a significant way from the 2009 doldrums.

Seven sales, ranging from $1.2 million to a high of $6 million, were noted in the DataQuick report for April. While April was the fourth month of solid sales in this genre, January came in like a lion with the sale of a $7.4 million home in Bighorn and two others in the range of $4.5 million and $3.1 million.

In May, the pace continued with one $7.8 million sale in Palm Desert.

Lags on market

New home construction sales is the only segment of the market that's been hurting.

Sales were off by 8.3 percent in April and May.

Altogether, less than 100 homes were sold in the median price ranges of $210,000 to $254,500.

That pace of home sales has been taking shape across California, the Building Industry Association reported. The monthly CBIA/Hanley Wood Market Intelligence report showed sales in new-home communities of 10 units or more were 32 percent below April 2009.

Foreclosure activity also continues to dog the market.

RealtyTrac has reported that foreclosure filings for May across the nation are down 3 percent from April, but have not completely subsided as foreclosure filings rose 1 percent from 2009.

“Those numbers confirm a trend that overall foreclosure activity may be leveling off, as lenders work through the backlog of distressed properties,'' said James J. Saccacio, chief executive officer of RealtyTrac.

Expansion begins

Even as market distress nips at the Coachella Valley, real estate companies across the Coachella Valley are ramping up to cater to growing sales opportunities.

That's because buyers are eyeing the middle and upper level brackets.

In some places, prices are 40 percent less than they were in the real estate heyday.

Windermere Real Estate Coachella Valley in April disclosed plans to open a new office in Indio in June, as an addition to its 13 other offices in the valley.

The company added 15 new agents to its 600-member team and may soon add another office to serve the desert.

Keller Williams Realty Inc. opened a new Legacy division in La Quinta at the end of April and made its debut in May. HK Lane acquired Classic Homes Real Estate to gain market share in recent weeks, and Realty Executives Desert Cities of Palm Desert last week held a grand opening for its new Palm Springs office.

“When we look at sales in Palm Springs from January through May and match them against the same curve for 2009, the counts are up 41 percent,'' Sandahl said. “In 2009, there were 10 properties that sold above $1 million. In 2010, there's been 24: It's more than doubled.”

VIP prices

The VIP homes that have come on the block in recent months — Liberace, Anne Rice, Edra Blixseth's Porcupine Creek — have helped reinvigorate interest from afar in the Palm Springs desert resort market, real estate professionals say.

Market interest — and some celebrity home sales — hasn't gotten lost on Bjorn Ahlstrom, an international player in the economy.

Ahlstrom, who grew Volvo North America Corp. as president and CEO from a $50 million car importer in the 1970s to a $6 billion company, and kept many properties in the Palm Springs market after he retired from Volvo in 2004, just put his $1.49 million tennis estate up for sale.

“It's time,'' he said, hinging it on observations of a “shrinking” market.

Ahlstrom said he and his wife, Diane, listed their four-bedroom, four-bath home in the Movie Colony because they're spending more time at their penthouse home in Marina del Rey and would like to add a condo in Manhattan to their property portfolio.

“I believe things are turning around a little bit,'' Ahlstrom said. “We decided to list it now to test the market, if you will”

In 22 days, Sandahl said the home's had seven strong showings.

“That's distinctly different from a year-and-a-half ago,'' Ahlstrom said, when the home was listed the first time. “Nothing moved.”

Now, the buyers are even different — heading in from multiple states and two coasts.

“As prices adjust down and available supply continues to shrink, buyers see value,'' Sandahl said.

“Houses are moving.”

The median rose 22 percent to $380,000 in April, up from $310,000 in 2009. Rancho Mirage's 65 sales drove up the median some 23 percent, as home sales prices rose to $440,000 from $355,000 in April 2009.

The Indian Wells median sales price rose 4.9 percent year-over-year in April to $524,500. And it outdid itself in May, measuring a 158 percent increase in sales and a new median of $810,000. That's up 40 percent from May 2009.

Positive indicators

Inland Empire economist John Husing said the sales increases and median price gains are positive indicators.

“May, one year ago, was the bottom of the market,'' Husing said.

Banks may be holding back supply from the foreclosure process to keep supply levels on pace to stimulate sales, he added, and advised: “Watch for slippage in sales volume.

“Still, the large increases in price shows the market really has started to recover.”

Luxury home sales activity has also picked up in a significant way from the 2009 doldrums.

Seven sales, ranging from $1.2 million to a high of $6 million, were noted in the DataQuick report for April. While April was the fourth month of solid sales in this genre, January came in like a lion with the sale of a $7.4 million home in Bighorn and two others in the range of $4.5 million and $3.1 million.

In May, the pace continued with one $7.8 million sale in Palm Desert.

Lags on market

New home construction sales is the only segment of the market that's been hurting.

Sales were off by 8.3 percent in April and May.

Altogether, less than 100 homes were sold in the median price ranges of $210,000 to $254,500.

That pace of home sales has been taking shape across California, the Building Industry Association reported. The monthly CBIA/Hanley Wood Market Intelligence report showed sales in new-home communities of 10 units or more were 32 percent below April 2009.

Foreclosure activity also continues to dog the market.

RealtyTrac has reported that foreclosure filings for May across the nation are down 3 percent from April, but have not completely subsided as foreclosure filings rose 1 percent from 2009.
“Those numbers confirm a trend that overall foreclosure activity may be leveling off, as lenders work through the backlog of distressed properties,'' said James J. Saccacio, chief executive officer of RealtyTrac.

How the Coachella Valley Real Estate Market Performed

2010-05-19T13:15:00.000-07:00

How the Coachella Valley Real Estate Market Performed

Repost of article by Debra Gruszecki • The Desert Sun • May 18, 2010

Bob Thomas, lead field consultant for Real Data Strategies, made these one-year trend observations after crunching data from the first quarter of 2010:

Bermuda Dunes: Sales activity is up again in Bermuda Dunes — rising 66 percent, or from 25 to 31 sales. That's beginning to have an impact — seen by a leveling off — on average sale price depreciation. The average sales price in Bermuda Dunes was $245,930.

Cathedral City: Cathedral City remains in recovery mode. There's been an erosion in average sales price of 5.3 percent; year-over-year, sales are flat at 211 units. The ratio between the list price and sale price is moving into the 90 percent level — and that gets buyer attention in this market. Here, the home sale average was $171,588.

Coachella: Average sales price in Coachella is exceeding or right at list price levels. That shows strong buyer interest; multiple offer activity. Price has reached a level buyers and investors see as fair market value. With sales price rising 7 percent to $137,396, buyers likely are competing for inventory in a marketplace logging 91 sales, or 35 percent less than the same period in 2009.
Desert Hot Springs: Desert Hot Springs sales — 233 — have fallen 21 percent from 2009 when there were 297 sales. But the average sales price — $98,248 — rose 12.7 percent from $87,148 in 2009. The list and sale ratio is approaching 100 percent.

Indian Wells: Sales activity is up 104 percent from one year ago. It is up 64 percent from two years ago. Driving sales are fairly significant reductions in average sales price — down 10 percent from the year before and nearly 24 percent from two years ago. The average sales price has fallen from $915,161 in 2008 to $696,049 in 2010.

Indio: Sales are up nearly 5 percent from 2009 and 149 percent from the first quarter of 2008. The average sales price rose 9.5 percent to $203,153 from $185,494 in 2009. But it's down from $333,390 in 2008.

La Quinta: Its 306 sales are up 31 percent year-over-year from 2009 and 28 percent from 2008 when 238 sales were reported. There are signs of fairly good recovery, given the list-to-price ratio at 93 percent. Sales price is up 7.2 percent, rising to $510,476 from $476,147 in 2009. But it's off 32 percent from $760,220 in 2008.

Palm Desert: There's been a 92 percent increase in sales, rising from 184 units sold in 2009 to 355. That's better than 2008, when the city logged 305 sales. Still, the city has seen erosion in average sales prices: It's fallen 6 percent to $376,235 from $400,108. In 2008, the average price was $567,856. With list-to-sell ratios in the mid-80 percent range, sellers have to come off their list price to strike a deal.

Palm Springs: Sales are up 60 percent from 2009, with 365 unit sales, and up 47 percent from 2008 when 248 sales were noted. But sales price is eroding, falling 7 percent to $301,869. In 2008, the average home sale price was $423,415. Price clips may be due to a surplus of inventory to absorb.

Rancho Mirage: Rancho Mirage has seen an 80 percent hike in sales, rising from 90 sales in 2009 to 162 in 2010. While levels are slightly better than 2008, average sale price has fallen 12 percent to $567,179. That's down from $645,022 over the same period one year ago. In 2008, the price tag average was $779,609. The list-to-price ratios here, and in Indian Wells, suggests inventory is plentiful.

Southern California median home price up 10 percent

2010-03-23T22:38:00.000-07:00

February is the third consecutive month to post a year-to-year increase

From the Desert Sun wire services • March 17, 2010

LOS ANGELES — The median home price in Southern California increased 10 percent last month from February 2009, the third consecutive month the figure has shown a year-to-year increase, a tracking firm reported Tuesday.

Last month's median price of $275,000 in the six-county region was up from $250,000 a year ago, San Diego-based MDA DataQuick said.

The latest figure also was up about 1 percent from $271,000 in January, when the median showed its first month-to-month dip in seven months.

DataQuick spokesman Andrew LePage attributed the up-and-down movement to inconsistent demand that routinely hits the market during winter months, even when the economy is healthy.

“You don't want to draw conclusions from January and February. They're always more difficult to interpret,” he said.

Home sales in Riverside County, meanwhile, dipped by 6.5 percent in February, compared to the same month a year ago, while prices rose by 3.7 percent.

A total of 3,199 homes sold in February, down from 3,420 for February 2009, while the median price of a home in Riverside County last month was $197,000, up from $190,000 in the same month a year ago.

“It's possible the stars won't line up this way again for many years,” said John Walsh, MDA DataQuick president.

“With prices and mortgage interest rates this low, the cost of ownership is about as low as we've seen it in decades.”

Home sales in the Coachella Valley (Palm Springs area) rose 22 percent in January — the latest month for which data is available — proving the area to be more resilient as sales sputtered across California.

Foreclosures comprised 42.3 percent of resales in the six-county region last month, up from 42.1 percent in January and down from an all-time high for the region of 56.7 percent a year ago.

QUICK VIDEO SHOWS KELLER WILLIAMS GROWTH

2010-03-01T19:18:00.000-08:00

Very cool & quick video about my company. Check it out!

KELLER WILLIAMS FAMILY REUNION

2010-02-22T09:10:00.000-08:00

Greetings from New Orleans y'all.

Keller Williams Realty is hosting it's Family Reunion here in the Big Easy.

The conference opened with a local high school chorus performing beautiful renditions of the Canadian and United States National Anthems and that was followed by the roar of motorcycles and sirens and a live band playing "When the Saints Go Marching In". A parade of Louisiana Keller Williams agents and employees dressed in Mardi Gras gear then entered and marched through the huge convention center auditorium throwing beads out to the rest of us.

Gary Keller spoke and introduced guests speakers who provided us all with tremendous inspiration by sharing their stories and how they overcame tremendous obstacles in their lives. I've taken advantage of meeting some incredible people and the classes being offered here as part of our Family Reunion.

I look forward to sharing a lot of these experiences with you when I get home to La Quinta.

Best wishes from New Orleans y'all.

Dave W

LEGAL PRECEDENT

2010-02-12T19:09:00.000-08:00

NONREFUNDABLE DEPOSIT DEEMED INVALID

California Association of Realtors

Feb. 12, 2010

An agreement for a "nonrefundable" escrow deposit is invalid and unenforceable, according to the recent California case of Kuish v. Smith (2010 WL 373225). This case serves as a good reminder for REALTORS® that inserting a "nonrefundable deposit" provision into a real property purchase contract may be legally ineffective.

The Kuish case involved a $620,000 escrow deposit for the purchase of a $14 million oceanfront home in Laguna Beach. Instead of using a liquidated damages provision, the buyer and sellers merely agreed in the purchase contract that the deposit would be "nonrefundable." According to the trial court, both parties were "big boys," meaning that they were "sophisticated business people [who] understood all the ramifications of their actions in freely negotiating to make the [deposit] non-refundable."

The buyer eventually cancelled the agreement. The sellers refused to return the deposit to the buyer, even though they sold the property to someone else for $1 million more.

The buyer sued to recover the $620,000 deposit, and won on appeal. The court stated that "any provision by which money or property would be forfeited without regard to actual damage suffered would be an unenforceable penalty. To construe the term 'nonrefundable' to establish [the sellers'] entitlement to the full deposit without regard to actual damages would essentially create a liquidated damages provision." Yet, the parties in this case did not separately sign or initial a liquidated damages provision.

Under C.A.R.'s Residential Purchase Agreement, the sellers would have been entitled to the escrow deposit (not to exceed three percent of the purchase price), if the parties initialed the liquidated damages provision, and the buyer had no contingencies or had removed all his contingencies.

2009-12-22T19:05:00.000-08:00

News Release
FOR IMMEDIATE RELEASE

Keller Williams Realty Ranked as Top Real Estate Franchise by Industry Leader and Entrepreneur Magazine

AUSTIN, TEXAS (December 21, 2009) — Keller Williams Realty joined the ranks of the top franchises in the world last week, when the company was ranked as the No. 1 real estate franchise on the 31st Annual Franchise 500 list by Entrepreneur magazine. During the same week, the company was also voted the Most Recognizable Brand of Real Estate Franchises for 2009 in an industry-wide survey for the Swanepoel TRENDS Report.

“The Swanepoel TRENDS Report is a respected source for the real estate industry and beyond, as is Entrepreneur magazine, and we are excited to see our agents honored in this way for all of their hard work,” said Mark Willis, CEO, Keller Williams Realty. “We certainly wouldn’t have been included on either list without the dedication and resolve of our agents.”

According to the ranking in Entrepreneur magazine, the most important criteria to determine the top franchises included financial strength and stability, as well as growth rate and size of the franchise system. The magazine also looked at the number of years the company has been in business and the length of time it’s been franchising, in addition to start-up costs and financial data. Additionally, Keller Williams Realty made an impressive showing on the overall list, placing higher than any other real estate franchise.

The Swanepoel TRENDS Report is published by Stefan Swanepoel, a real estate industry speaker and insider. The survey was crafted to determine the Most Recognizable Brand for Real Estate Franchises for his report out in February 2010. The survey included votes cast by 11,000 plus real estate agents, who cast 390,000 votes to select the top 10.

Earlier in the year,Keller Williams Realty also received the highest overall satisfaction ratings from home buyers among the largest full-service real estate firms from J.D. Power and Associates for the second year in a row.

“We are extremely proud that our associates and company are being recognized for our strength and stability during this time in our industry,” said Mary Tennant, president and COO, Keller Williams Realty. “We attribute our success to being in business with phenomenal people and to our core business models, which have allowed our franchises to thrive during any market.”

Palm Springs Area Market Update

2009-12-14T09:47:00.000-08:00

It continues to be a seller's market for homes in the $250,000 and under range.

In comparing notes with my realtor colleagues we all find that buyers continue to make low offers on homes that are already priced right. The result is they do not get the house they wanted.

Someone else who is clearer on the state of the market gets it instead.

This is frustrating to the clients and to those of us trying to assist them in buying a house at a great price. It is unfortunate to miss out on some great investment opportunities in real estate over a relatively small amount of money.

Please be aware that our inventory in the desert is very low and demand is high for homes under the $250,000 threshold. Driven by bank owned properties, houses in that price range attract multiple offers in just days and sell for more than list price, not less.

Rumors of a flood of inventory soon to hit the area are just that, rumors. While more bank owned properties are sure to come, those under $250,000 will probably be introduced to the marketplace strategically in order to take advantage of the current market conditions.

If you are in the market for a higher end home there will be more ability to negotiate on price.

WE ARE NOW IN A SELLER'S MARKET IN THE DESERT!

2009-11-11T19:30:00.000-08:00

Our inventory of homes for sale in the desert has shrunk to it's lowest point in years.

Supply of homes is low and demand is high. The good news is prices are still great and so are interest rates for home mortgages. The bad news is because of the shortage of houses for sale and the ever increasing high demand we have actually transitioned to a seller's market.

The nicer homes receive multiple offers in a day or two and are selling for higher than list price. Buying a great home in our desert is now a competetion going to the highest bidder.

If you are serious about buying a house here be prepared to offer higher than the asking price.

GREAT EXAMPLES OF OUR CURRENT MARKET

2009-09-23T12:04:00.000-07:00

Here are a couple great examples of what is currently going on with our desert real estate.

A very nice house came on the market in Century Park, an especially well kept neighborhood in Cathedral City. The address is 69310 Cypress Road. It is a 3 bedroom, 2 bath house with pool and in good condition. It is a bank owned property. List price is $105,000.

Homes in that area now normally sell in the high 100's and low to mid 200's. A few years ago they were in the 300,000 and 400,000 range.

The extremely low list price attracted a lot of traffic to see this house. People could not help but be impressed with how nice and clean the house is and the nice street.

The person I took to see the house loved it. She also loved the list price of $105,000. Like most buyers, she commented "Hmmm, they're asking $105,000, so maybe if I offer $90,000 ..."

I explained that will never work & why. Homes such as these end up going for more than asking price. I told her I thought it would take $125,000 to $130,000 to get that house.

I was wrong!

What eventually happened was the selling bank received over 20 offers on the house and when they stopped taking offers, the high bid was $162,000.

Another example

On September 15th a very nice home at 82420 Astaire Avenue in Indian Palms (Indio, CA) came on the market. It has 4 bedrooms, 3 baths, 2,617 square feet and was just built in 2001. Upgrades include plantation shutters, tile floors, fireplace and spa. It is a private sale. No bank owned, no short sale. List price is $219,900 or under $90.00 per square foot.

In less than 10 days the sellers received three offers and accepted one of them taking the home off the market.

The Point

Our inventory in the desert has shrunk to the point where it is becoming difficult to find buyers what they want. When we do find the right house, it is growing more and more difficult to get it for them. Multiple offers are common, which means buyers find themselves in a bidding war to get the house they really want.

Please take note that to purchase something in this market, buyers must have a letter from a reputable lender showing they are pre-approved for a loan. If it is a cash purchase, a letter from the bank is needed to prove the funds are on deposit.

With out a letter of pre-approval or proof of cash, sellers will not even consider an offer to buy their home.

EVER CHANGING MARKET

2009-09-04T13:31:00.000-07:00

If you go back over my last several blog posts, you will see the local desert market information that I shared with you. The market statistics reflect a definite increase in sales and shrinking of inventory.

When you consider the fact that the inventory is shrinking it should be obvious that the best homes go first. What this all means is that it is becoming more and more difficult for buyers to get what they want.

My own recent experience as well as those of my colleagues here at Keller Williams Realty shows the nicest, cleanest, best homes are receiving multiple offers within days of coming on the market. With competetive bids for the same house the good properties are selling for more than asking price. In some cases, considerably more.

It is simply the law of supply and demand in action. The supply is down and demand is up. Everyone and their cousin wants a smoking hot deal on a bank foreclosure.

I share this with you so that you can be clear on the market when considering making an offer.

Liz Murray - Homeless to Harvard

2009-08-29T06:53:00.000-07:00

Click on title above to see Liz Murray (Homeless to Harvard) at Keller Williams Mega Camp.

Mortgage Rates Go Down

2009-08-06T17:00:00.000-07:00

Rates on 30-year mortgages dipped this week after economic reports came in better than expected. For the full story, click on the title of this article.

July Market Report

2009-08-03T15:21:00.000-07:00

Here are the real estate market sales numbers for July, 2009.

These numbers are from my own research using the Desert Area Multiple Listing Service. They account for activity in the desert cities of Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Indian Wells, La Quinta and Indio only.

Current Number of Active Listings (Homes for Sale): 4,713

New listings that came on the market during the month of July: 951

Number of homes that went either contingent or pending during July: 891

Number of homes sold in July,2009: 753 (628 sold in July, 2008)

Palm Springs Market Condition Report

2009-07-20T11:34:00.000-07:00

Here is some great information I think you will find useful with current information on our real estate market in the Coachella Valley. The statistics are courtesy of Four Seasons Escrow. I hope you find this information helpful.

Click the title of this article to view the current market report broken down by desert cities.

Palm Springs Area Keller Williams Agents Meet & Discuss Market

2009-07-14T12:53:00.000-07:00

Keeping you informed ...

Our local Keller Williams offices gathered together this morning at the Board of Relators in Palm Desert for our monthly sales meeting. Heath Hilgenberg reviewed market activity here in the desert. While Keller Williams was #1 in sales and volume again in June, the really important part of his message was the vibrancy of our local market.

If you missed my blog report of last week, the highlights are worth repeating:

1. We have had four consecutive month of increased sales activity.

2. Inventory is the lowest it has been since December, 2007.

3. Last month, the prices of homes showed their first increase since December, 2007.

The bottom line is prices have bottomed out and may be poised to begin increasing.
We are returning to a more "normal" market here, which is good news for all.

Sidenotes:

Our preferred lender, Franklin Loan Center discussed the latest news in financing. Obtaining credit to purchase a home can be challenging. If you have any questions or concerns, please contact me for assistance.

Two local appraisers addressed our group and spoke of their challenges reporting to banks and explained how we can help them and our clients with improving accuracy in appraisals.

Palm Springs Real Estate Market Heating Up!

2009-07-06T13:02:00.000-07:00

The temperatures are well over 100 degrees here in the desert and the real estate market is hot as well. Sales continue to flourish. The last four months have been outstanding.

Look at these figures for number of homes sold so far in 2009:

January 492
February 625
March 693
April 827
May 839
June 826

Inventory throughout the valley is down to 5,800 as opposed to more than 12,000 a little over a year ago.

June of 2007 reflected a 17 months supply of inventory in the valley.
June of 2008 reflected a 13 months supply of inventory in the valley.
June of 2009 shows a 5 months supply of inventory.

My Keller Williams La Quinta office was #1 in the valley in the number of closed sales for the month of June. That is the second consecutive month we have earned that honor.

Our Keller Williams Rancho Mirage office was #1 in highest dollar amount of closed sales in the valley for June.

Why such an increase in sales? The prices have dropped. Lower prices, increased sales.

Two years ago in June, 2007 the median price of a home here was $405,000.
Today it is $194,500. That is a 52% drop.

If you know someone who is interested in Palm Springs real estate, please share this information with them. Also, please introduce them to me. I would love to share more information and help them take advantage of these great buying opportunities here in the desert.