Frankly Speaking

[Enter Post Title Here] Over the past couple of weeks I have spent a great deal of time exploring why now is the time for you to buy. And, I firmly believe that it is…if, you are able to do so. While I have been espousing the many benefits of homeownership, I have unintentionally ignored a large subset of the current housing market. They are those who are losing their homes because they can no longer carry the weight of their obligations. I bring this up because I met a couple recently who are more typical then they might realize.   Most likely they are in their late twenties to early thirties. They have two adorable children and they are living in the house of their dreams. A massive home by any measure, they got it for a great price and believed that this would be the family home for years to come. It is often very sad how life sometimes makes a mockery out of our best plans and intentions. You see, this family is now another statistic of an economy struggling ...

The power of mindset is truly an amazing thing. By way of illustrating this fact I offer the following for your consideration. This past week, I was in Anaheim for the National Association of REALTORS ® business meetings. And, at those meetings, I had the occasion to hear the President of the California Association of REALTORS ®, The Hawaii Association of REALTORS ® and the Guam Association of REALTORS ® all speak to us about their markets. This is what they said. Properties listed are selling quickly at or near list price. Inventories are low by traditional standards. In all three places, prices have been stable or on the increase for a protracted period of time and yet they are in a buyer’s market. Think about this for a second, demand is higher than supply. Prices are (in many areas) rising and they are in a buyer’s market. For the life of me I cannot remember the last time that this scenario has played out like this. The classic law of supply and demand is that when...

Recently I had a transaction where after due consultation the seller agreed to list the home at the price which I suggested. I arrived at this price by doing a in depth analysis of the current activity within a half mile of the subject property. In attempting to arrive at the best possible price point (the point at which someone would offer on the home) I looked at the most recent sales of similar properties including those which were in escrow, but had not yet closed. And, at the active listings (those currently on the market but not yet sold). I look at the recent sales for obvious reasons. These are the homes which had completed the sales process. By studying these properties, I can see where they were priced when listed, how long they were on the market. And, what the final sales price was. All of this is vital information when determining where to price your listing. If a home is on the market for a protracted period of time without selling, it most likely will sell fo...

Recently I spent the weekend in Long Beach watching my fiancé  run her first marathon. For the record, she was amazing. Finishing the 13.1 mile trek in a scant  two hours and forty six minutes. This of itself is noteworthy and should be proclaimed for all to read in a publication such as the press enterprise. However, while I am very proud of her effort, I am actually writing for a completely different reason. For the two weeks leading up to this event, she was filled with self-doubt. Was she ready for this challenge? Did she train as effectively as she could have? Would it be too hot or too cold? Would she be able to go the distance which was 3 miles farther then she had previously run? And as we discussed her concerns (call me silly) I actually started thinking of all the insecurities that buyers have to overcome in order to create a mindset conducive to buying. Is this the right house? What about the neighborhood…Will my family be safe? Are the schools going t...

Today (September 11, 2011) as I write this I am preparing to board a plane bound for Hawaii. Part vacation and part work this trip in and of itself is a statement to those who would bring America to her knees if they could. We as a country have never settled for defeat. And, I pray we never will. Ten years after the last plane fell from the sky. Ten years from the time the last tower fell. Ten years from the time the last hero breathed his (or her) last breath. We continue to remember those who we lost, and those who were saved. As I await takeoff I cannot get enough of the television coverage marking this historic date in a most appropriate manner. And, front and center in the celebration is arguably the most famous piece of real estate in America, Ground Zero. Ten years ago almost to the minute this hallowed ground having just seen her twin monuments to capitalism fall, and the land now intrinsically holding little value.  In the world of commercial development the value ...

I had the pleasure of sharing lunch with Congressman Ken Calvert from the 44 th District a week ago.   And, I have to tell you, if it is your hope to once again have a robust economy. One in which the housing industry plays a prominent role, we need more leaders who think like the Honorable Mr. Calvert. Over the course of lunch our conversation ranged across many topics. But, as you can imagine real estate was the main course of this meal. We started out the meal oddly enough, by his asking me what the residential market was like currently here in the Inland Empire. My response was that our average days on market appears to be rising. And, despite the fact that money is on sale (we are seeing historically low 30 year fixed rates) buyer activity is still tepid. He in turn advised me that the commercial market is very similar. And, that a high percentage of sales are coming from investors who have pulled out of the stock market and are positioning themselves in the “historically” m...

Today, I read an article in the newspaper that said Congress had passed a bill asking the banks to rent out their foreclosed homes while they waited to market the homes for sale. The idea is that this will stabilize neighborhoods impacted by a high number of foreclosures. And, in doing so preventing further erosion in values. On the surface this seems like a reasonable request. One well founded in reason. And, this is one possible solution to a concern certain to impact neighborhoods across the country. However the real solution is not in a temporary fix like this. Instead, the solution  is to see that these loans become performing loans once again. Now before I go any further, I must say that the ideas, I am about to discuss are not my own. In fact, they come from Bruce Norris (of whom I spoke last week). As I said in my last article, I have a tremendous respect for  Bruce. His understanding of our market borders on genius. And, having followed his projections for the past f...