Another Distinguished School in Burbank!

Joaquin Miller Elementary here in Burbank has been named a California Distinguished School for 2008, after a rigorous, months-long application and assessment process. Read the Burbank Leader article here. This is huge -- now all of Burbank's elementary, middle and high schools have received the award at one time or another. This is another reason that Burbank rocks as a community and a good place to live. For you folks without children (and I'm one), a community with good schools is still a preferred place to live because good schools tend to keep an area, its housing stock, and values more stable.

More graven animal images in Burbank -- this elephant guards a bar

What we've all been waiting for...more graven animal statues in Burbank! This elephant guards the alley entrance of a cool bar in Burbank called The Blue Room. Note that he's ready to fire his gun at any wrong-doers. I don't know what the hoop in the other 'hand' signifies...perhaps something having to do with a sobriety test? And he only has one tusk. But considering this is an all-drinking-ages bar is peaceable, I don't think he'll need more than one. The Blue Room is located on San Fernando just above Alameda, and is the coolest tavern in Burbank now that Bar 21 is closed.

NOT another point-of-sale mandate!

If you have bought or sold a home lately, you know that there are many closing costs. They're about 3% for the buyer, and can go up to 8% for the seller. The seller's costs include mandatory retrofit requirements. The city of L.A. also collects $4.50 per thousand of profit (although Burbank and Glendale don't) as a city tax. Now here comes another expense.

I’m all for energy efficiency. But Cal State Assembly Bill AB 2678, among other things, requires that ALL homes and commercial property in California have a $400 energy audit at point-of-sale – before your escrow closes -- and that mandatory energy efficiency investments be made. If enacted, AB 2678 could add thousands of dollars to the cost of purchasing a home, including the aforementioned $400 just to have a home “audited.” AB 2678 will be considered by the Assembly Utilities and Commerce committee on Monday, April 14th.

While point of sale mandates are always well intentioned, they are ineffective because they only apply to a small portion of the housing stock that changes hands every year. Not to mention the hurt put on sellers who may be stretched very thin as it is. Not to sound like a conservative, but why can’t we accomplish the same through property-tax credits?

Trials and tribs of being a 1st-time L.A. home buyer

I've recently started to read Milla's blog. She came to my attention as a poster on LALand, and she just bought her first home in Highland Park (that's it, above). If you want to know (or remember) what it's like to go through that first-time buyer experience (again), her post offers a really intimate look at the process and her emotions. Plus, it's well-written, heart-felt, and funny, too. So much so that I've put one of her posts, in its entirety, on my short sales and foreclosures page on my website at http://www.judygraff.com/.

WaMu takes its business to another level -- and it's not good

Washington Mutual announced today that it would no longer make wholesale loans. What does that mean? A regular broker can no longer get a buyer a deal through WaMu. If you want a WaMu loan, you must go to a WaMu office. This is just another way that consumer choice is being eroded now in our new lending "climate."

$1.25 Tacos Rock!

Another reason Burbank is a superior community: Barragan's Mexican Restaurant has a $1.25/taco special on Monday nights in its bar. You have a choice of chicken or beef, you can add guacamole, it's a la carte, and they're great! Good margaritas, too. Barragans is located at 730 N. Victory in Burbank. Get there early for parking and a table -- this place is popular.

Sales Prices Over List Prices in Burbank

Is the market here in the Valley coming back? Or reverting to its old self now that loans are a little easier to get? The bottom picture is 428 N. Orchard in Burbank. It's a 3+2, 1400+sf, and was on the market for 7 days. It listed at $505,000 and sold above that price at $521,000. The top right house is at 2301 Chandler. It's a 2+1, 1364 sf, and has kind of a funky floor plan. Plus, it's on Chandler, which people either love or hate. Nevertheless, it was listed at $499,000, and sold in 9 days for $511,000. The left house is at 435 Stanford and is 3+4, 1943 sf., and no, it hasn't sold yet. But it's in escrow after only 3 days on the market.

The New York Times Explains Proposed Govt Housing Help

There's an excellent article on the front page of today's New York Times about proposed government help for homeowners. I'm not sure if the eblogger link is working, so here it is again here. There's also another article titled "A Plan to Prevent Foreclosures" which explains how it might work. Here's something from the main article which should make everybody happy:

"Advocates say that the program would help owners keep only the home they live in, not vacation or investment property, and no taxpayer money would be used to pay down mortgages."

My reading is that the plan would force lenders to take huge write-downs on existing loans. Since the lenders got us into this with free money, I think it's fair that the lenders get us out of this, too.

And We Thought Flipping Was Over -- Not in Hollywood Hills

Here are two pictures of 2269 Canyon Dr., above Franklin in the Hollywood Hills. I listed the red brick one in June of 2006 for $1,299,900. As you can see, it's a pretty lovely Georgian with 2,578 sq. ft. (big for neighborhood), pool (rare for neighborhood) and it was splendidly maintained. Still, it took a long time to sell and finally closed in December of 2006 for $1,050,000.

Cut to now, a year and three months later. The house has had a re-do, the brick has been painted yellow, and it looks far more "New Orleans." It is back on the (declining) market at $1,399,000. Yes, the new owners did completely remodel the kitchen. From the pictures, it appears that the pool and deck were re-done. I'm sure there were other changes, but those are the major ones. No square footage was added. Yes, it has been nicely decorated, although it was nicely decorated before. But this is a price increase of $350,000 or over 30%! I wish the new sellers luck. I think they may need it.

Senior Care, The Housing Market, and the Law of Unintended Consequences

I've been thinking about the following since I returned from Phoenix. Arizona seems to have senior citizen care down. Lots and lots of independent living places, assisted living places, and senior group homes. Which got me thinking: hasn't the explosive growth in senior housing been largely fueled by the rise in home equity? That's how most seniors are paying for their care-based living arrangements, yes? From the (huge) profit they make when they sell the family home? For example, Belmont in Burbank charges (I think) a minimum of $5,000 a month. A care facility can easily cost much more. So, what happens to our seniors and their living arrangements when home equity takes a dive and they no longer have the ability to pay? I think we are going to see many changes in the senior housing industry, and they won't be good.

Coming Soon in Glendale

Next week, I'll be listing this great northwest Glendale family home. I plan to have more pictures early next week, too. It is located at 848 Idlewood between Glenoaks and San Fernando and will list for $620,000. Features include 3 beds, 2 baths, den, separate dining room, big galley kitchen with new stove, 1787 sf, shaded patio, rose bushes, fruit trees and a lovely, private backyard. This diamond in the rough also features 2 wood burning fireplaces, ac, new paint, new carpet, 5 phone lines, detached garage inside laundry, and most appliances stay. We’re still spiffing it up, but please plan to see it at the beginning of April.

LA DWP's Invasion Plans for Burbank

Paula Allen, agent extraordinaire, reports in from the west side of Burbank about a notice that she's received: Los Angeles Department of Water and Power will be laying 5.92 miles of water pipe -- right through the middle of Burbank! That's a lot of pipe to lay. (I think there's a joke in here somewhere.) Does Burbank benefit or even get paid for this? It will probably follow Whitnall Highway. Paula has also sent the documents she got along with the map -- contact me if you'd like me to forward them.

News Flash! Macaroni Grill Restaurant is Muerte in Burbank

Macaroni Grill Restaurant at 1st and Magnolia has gone out of business. Too bad. Burbank just doesn't have enough national chain casual dining restaurants to serve the community.

Toluca Woods is Hot!

Update April 8, 2008: well, maybe not so much. This home is back on the market. The listing says that's due to first time buyer jitters. The Toluca Lake neighborhood of Toluca Woods continues to defy sales expectations. The area bordered on the north by Magnolia, south by Camarillo, with west/east boundaries of Cahuenga and Denny has seen the homes that have come on the market there lately go pending very quickly. Pictured to the left is 10637 Otsego, a 4+2 for $789,000. It went pending in 13 days. You can visit my February post for the house on Willowcrest that went pending in 7 days. This isn't surprising as the neighborhood has good housing stock at decent prices. But, wow, such fast sales really are rare these days.

How'd We Get Here? And I Don't Mean Burbank

Happy Spring, everybody! For those of you that are a little confused, as I am, about our national financial and mortgage crises and how we got here, here’s a tip: I find that the New York Times is a good source of understandable information. Okay, so is the L.A. Times. But back to what I was saying. Today’s NYTimes has a great editorial entitled Iraq, $5,000 Per Second? by Nicholas Kristof about the connection between the spending on the Iraq war and our current economic troubles. Nobel Prize-winning economist Joseph Stiglitz says, “[Tax] money spent on Iraq did not stimulate the economy as much as the same dollars spent at home would have done. To cover up these weaknesses in the American economy, the Fed let forth a flood of liquidity; that, together with lax regulations, led to a housing bubble and a consumption boom.”

Finally, a real price reduction

You may recall that I blogged about the pictured home at 601 Priscilla recently. It had a price reduction of -- hang on -- $100! Wowwee! This home has now had a more meaningful price reduction, down to $674,000 from $705,900. Much better. It's a 3+2 with a pool, redone kitchen that needs appliances, and is in one of the nicer areas of Burbank/Toluca Lake.

Quoted re FHA Guidelines

Our friend Patrick Duffy at Housing Chronicles.com has quoted this blog on FHA guidelines. Thanks, Patrick! My original post is below; it's dated March 11. I'm still finding that many lenders haven't received a lot of direction on this from their management.

Could it be any more crass? Oh no, wait...this is Glendale

Thanks, L.A. Curbed, for this story. Americana at Brand, the new destination shopping center in Glendale, will take delivery of a "Spirit of American Youth" statue to the garden area of a shopping center. Pictured above, the statue is a re-creation of the 1949 sculpture at the Omaha Beach Memorial in France that commemorates soldiers who died on Normandy Beach. Of course, before it's good enough to grace a Glendale shopping center, it has to be dipped in gold. Remember the soldiers who died for your right to shop. To the left is the statue, about to leave NYC for Glendale, and the smaller picture below is the original, in France.

I Want My Rate Cuts!!!

The Fed is cutting rates right and left. So why haven't mortgage interest rates gone down?! Click here for a great article from CNNmoney.com. It seems so unfair -- the housing retail level (mortgages on resale homes) should benefit from all the Washington shenanigans too, yes?

Sexiest Headline of the Week: Topless Water Heater Rebate!

Okay, it's not topless, it's tankless, but it got your attention, right? Per an insert in my gas co. bill (you wondered who read those, huh?) you residents of Burbank and Los Angeles can now get a $200 rebate from The Gas Company when you purchase one of these. They're great -- they give you hot water on demand, so you don't have a big, 40-gallon tank of boiling water sitting around. You'll use less energy and water. Visit www.socalgas.com/twh/for more info. The offer is good through December 31, 2008 of this year.

And, Yes, It Applies to the San Fernando Valley

There's a great post today on Housingchronicles.com about Alan Greenspan. Wordy, but worth it. Check it out at HousingChronicles.com.

Connection Between Bear Stearns Bailout and Spitzer

Here's an excellent article from Greg Pallast regarding the Spitzer/Bear Stearns connection. Robert Scheer said pretty much the same thing yesterday on NPR. I thought the timing of the Spitzer bring-down was a little strange myself (although it's clear he's a slime ball). Why am I putting this in this blog? Because many financial institutions are now at risk because of the sub-prime loan mess.

Sober Living in Burbank

Note: the post that follows originally appeared here on March 5. It continues to get many comments. Because of that, I've moved it to the top of this page so it doesn't disappear (as it will on Blogger when it gets to the bottom.) Please feel free to continue commenting here, and to also check out the other posts on sober living in Burbank. I am happy to be able to foster a community dialogue. [Today's] Burbank Leader reports that local residents are angry about a sober-living house on Clark Street. Sober-living residences usually house a half-dozen people who are recovering from alcohol and drug addiction. At a recent community meeting, neighbors complained that this home was endangering their children and lowering their property values. The article states that the police have been called to this particular home several times and made three arrests there in 2007. These state-funded residences currently cannot be regulated by municipalities, although there are on-going attempts to change that.

As an aside, I'll cop to being addicted to shows like A&E's Intervention. Yes, it's just another reality show. But it has performed a service, at least for me, in that it has educated me immensely about addiction -- and I had a death in my own family last year as a result of chronic alcoholism. I've learned that sober-living situations can be vital to those struggling to get well.

So here's the conundrum: don't we as a community and a society have a responsibility to help those trying to help themselves? Isn't giving recovering addicts an opportunity to live in a normal community a good thing? I think so. But would I feel safe living close to this particular facility? No. Any answers from anybody out there?

Quick Sale, Multiple Offers in Burbank

I thought fast sales and multiple offers were a thing of the past. Nope. My client wanted to write an offer on this property at 3131 Frederic in Burbank only two days after it listed (he knows what he wants; I've been working with him on various houses over the years). Imagine my surprise to find out that we were in multiple offers -- aren't those a thing of the past? How come my buyer gets stuck in that situation? There's a happy ending though: the sellers accepted the offer and we're now in escrow, nine days after the property listed (coulda been three days, but sorting out and countering the multiple offers took time). No, this wasn't a foreclosure or short sale. It was just a very well-priced home in a great neighborhood in very good condition. And my buyer's offer was under the list price, too. More details when this closes.

More NODs for Burbank but Not Studio City

I just looked at the Notices of Default for the week of 3/5-3/12. NODs are filed when a home owner is at least three months late on mortgage payments and is a first step to foreclosure. Palmdale and Lancaster are still the county's epicenter for NODs, but Burbank's numbers increased to 18 this week. Other community NOD stats: North Hollywood-29; Sherman Oaks-10; and Studio City has only one, which is a decrease from prior weeks.

LAT, Downtown and the Valley

There are some interesting stories in the L.A. Times today. The first, on the front page, is about the glut of brand-new downtown lofts. The story is extensively posted upon at both LACurbed.com and LAland.

The second story covers Adam Carolla's view of the San Fernando Valley, complete with "best ofs." Here's a quote from Adam about the usual progression from the Westside to the Valley: "People move here...They get themselves an apartment on the Westside. It's $2,500 a month and they have a roommate...They like to walk to their local coffee shop and say they'd never move. Eventually, they get a little bit older and they say, 'I guess I need to think about buying a house, I'm 37'...Five years go by...because they can't humble themselves to move to the Valley. This is the point where they move...and that's how people end up in the Valley."

Glendale, The Mattress Capital of the World

What gives in Glendale? Central Ave. has more mattress stores than I've ever seen clustered together in my life. One block has five mattress stores. Leeds. Serta. The Mattress Store. And two Orthos. Isn't that really a lot? How many mattresses does one community need? Are the employees of each store at perpetual war with the employees of other stores? Has there been any violence? Any explanations out there?

Burbank Sober Living in My Office

Further to all the sober-living posts on this blog: Today during my weekly office meeting, I learned that there was a community meeting recently to complain about the particular house on Clark Street in Burbank. At least one of my co-workers attended, and said there were 50 people there, including 3 city council members. There were differing opinions on whether a sober-living home lowers surrounding property values and endangers the neighbors. I say "no" to both of those. I spoke about my own neighbor situations (we've had bad ones [see posts below])(3/11/08-oops, update: although I've spoken about my family situation, I just realized that neglected to talk about neighbors in my previous posts. That's updated in the comment here. Sorry) and also my family situation, and I also suggested that my co-workers look at the numerous posts on this issue here.

New FHA Loans: What You Need to Know

• New FHA restrictions just came out. Here’s the upside.
• The loan limits for SFR in L.A. are $729,750 (same as “jumbo conforming”).
• Loan limits for 2 units are $934,200.
• The interest rate is 6% as of this writing; however, there is mortgage insurance (see below).
• Minimum down payment is 3% (not including closing costs).
• Fixed rate and Adjustable rate programs are available.
• NO MINIMUM FICO REQUIREMENT (this is huge).
• Must be full documentation loan. No stated income loans.
• No buyer reserve requirement (this is also huge).
• No income limits.
• The seller can contribute up to 6%, including closing costs, although the seller does not have to pay the closing costs.
• There can be non-occupant co-signers on the loan.
• You do not have to be a first-time buyer.
• Gifts are permitted for the entire 3% borrower investment and don’t need to be “seasoned.”
• Gifts are also permitted for all closing costs & pre-paid items.
• Down payment assistance programs are permitted, such as city first-time buyer housing programs.

Now, here’s the downside:

• There is mortgage insurance. It equals either 0.5% point per month, or 1.5% points up front. The up-front payment is deductible from your taxes during the year that you buy.
• There are stricter appraisal requirements:
• Any operable or useful element in the subject property must have at least 2 or more years of useful life or it must be replaced.
• The appraiser must be FHA-approved.
• The appraiser can require a separate inspection upon any “visible” defect or if he/she has knowledge of any existing problem.
• The property must be structurally sound.
• It must have a useable garage.
• The property cannot have code violations.
• Each living unit much contain domestic hot water, sanitary facilities and a safe method of sewage disposal. Connection to public systems is required if available.
• Heating systems must be adequate for healthful and comfortable living conditions.
• Condo projects must be pre-approved; they can be spot-approved but this is much more difficult.
• Condo projects must have sufficient reserve funds.

Home Ownership Deception Scheme

There was a great post from Maggie Knowles on LALand this weekend about the housing crisis. Maggie has given me permission to print it here:

The mortgage crisis has never been about home ownership. There are 6 major players in this scheme, the home ownership deception scheme.
1. Brokers, 2. Lenders, 3. Investment Bankers, 4. Rating Agencies - and the ones they lure 5. Investors and 6. Borrowers (you could think of 1-4 as fishermen and 5 and 6 as fish). 1 thru 4 have no skin in the game and they are working for Wall St. and have made off with billions of dollars.

After the high tech boom, the housing market was the next investment vehicle that Wall St. was going to push.

Before 2007, real estate was the best investment in America. How does Wall St. take advantage of that? They package mortgages together and sell them at a higher return. "They can't lose, they're the best investment in the world!" There was a high demand, but there was one problem - there wasn't enough product (borrowers - there were only so many people who had 20% down, high credit ratings, etc.)

Where do you get more product (borrowers)? Start creating products that a wider market can qualify for. So first came the A. sub-prime loans, then came the B. high-rate "strangulation" ARMS (interest rate only goes up, not connected to LIBOR or Prime Rate) where payments will double no matter what happens in the market and principle is never paid down, then came C. a negative amortization product (where principle grows and is never paid off), then came D. Option ARMs, then came E. no doc loans. (I may have missed some data regarding these loan products, but you get the idea.)

The point is, the loan products are defective by definition. When you recognize that these are defective products and this is orchestrated to generate billions of dollars out there for the four players in the middle (1 thru 4 above), then what's the solution?

More on Sober Living in Burbank

If you've followed the posts and comments regarding the sober-living house in Burbank, you'll know that I asked one of the posters for more info on the sober-living process. Here's the link that was sent back to me: http://www.soberhousing.net/san_fernando.html. As poster "Anonymous" says, "Go to this website to find all you need to know about sober-living networks of one addict helping another." Thanks, Anon.

FLIP, uh, I mean FORECLOSE This House

I just showed this house at 2219 N. Brighton in Burbank. It's a "3" bedroom (although 1 bed is converted from 1/2 the garage), 1.75 bath, 1280 sf, foreclosure listed at $519,900. It has been largely, but not completely, remodeled, although the floor plan is not good. It also looks as though the flipper/owners/walkaway-ers may have run out of money before they finished this. You can just tell that the owners thought they'd buy an inexpensive house, flip it, and make a killing. But they forgot one very important element of successful flipping: location, location, location. This poor house is located at the confluence of San Fernando, the 5 Fwy, the train tracks, and the airport, plus there's a liquour store one house away. It's hard to imagine a worse location. Seriously, this is a text-book case of what NOT to do to make money in real estate. I predict this house will sell in the high $300's.

Whiplash! Lots of "Pendings" in the Last Day

In the last day, 10 properties have been reported pending in Burbank, from condos to mid-priced homes. This is a lot for even a warm market. The two to the left are both on Maple -- the condo is in the project at 355 N. Maple and the house is in the 700 block. And, nine properties have reported pending in all price ranges in Studio City. Yes, these aren't "solds" -- but this many "pendings" indicate a surprisingly large amount of activity. Could the Spring selling season be better than we think?

Follow Up on Sober Living Post

See the post below about the sober living facility on Clark. The owner of the home responded with a comment, and I sent that along to the writer of the Burbank Leader story, Jeremy Oberstein. Here's part of his response:

Thanks for passing along that comment from the blog. I did speak to the owner of the house and we are running another story about conditions in the home.

Thanks, Jeremy.

Update: click here for the 3/7/2008 updated Burbank Leader story.

Asking Prices are Going Thru the Floor! Reduction of $100!

This is 601 N. Priscilla in Burbank. It just had a major price reduction -- of $100 dollars! Whee! Start packing! Okay, perhaps this isn't fair. This is a particularly excellent Burbank/Toluca Lake neighborhood and this house has 3 bedrooms, 2 baths, a pool, 1600+ square feet, and a redone kitchen (without appliances, however). It's a short sale, and the bank approved the listing price. I assume they approved the reduction as well. It was listed for $706,000 and is now listed at $705,900. Either way, it's a pretty good price for the neighborhood.

Raising Conforming Limits, Part 2

What's taking the new, lower interest rates so long to arrive? In part, the details have still not been worked out from last month's passage of the economic stimulus bill. Apparently, the first step will be determining median home prices. The Department of Housing and Urban Development has been given 30 days to publish median-home-price data from the date of the bill signing, so we should see those numbers in the next week. Fannie Mae and Freddie Mac still need to determine their criteria for guaranteeing the loans, too. In other words, these agencies will need to decide about minimum downpayments, borrower's credit histories, and fees. Sigh. Hang in there, borrowers.

Magnolia Blvd. 1, Burbank Blvd. 0

There's a new weapon in Magnolia Blvd.'s ongoing war for global domination with Burbank Blvd. -- flower baskets. These geranium baskets grace just about every light pole on Magnolia between Buena Vista and Hollywood Way. I've learned that they are paid for by the Magnolia Park merchants, although they will be maintained by the City. How will Burbank Blvd. counter this?

Foreclosure Fightback! With the Aid of Plastic Sharks

Here's an article just out on AP about Cleveland folks organizing and fighting Countrywide over foreclosures. I love this grassroots stuff. I need to know what company is manufacturing the plastic sharks and where can I get some.

Ignore the Headlines

There was a very good article in Time Magazine last week entitled "Ignore the Headlines." So good, in fact, that it was emailed to me by about five people, including lender Dana, my wonderful manager Mike Napolitano, and the owner of Dilbeck, Mark Dilbeck. In it, famed money guy Stan Lynch is extensively quoted about timing regarding buying housing. Click to read it here. Among other things, it says:

"Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today's rate of 5.5%. Monthly principal and interest come to $994.31. Let's say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you'd have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you'd rather not be."

In short, your monthly housing payment is going to be about the same, because the lower housing prices go, the higher interest rates will likely go.

1 plus Guest for Burbank Caravan

Peter Viles came along with me yesterday for the Burbank brokers' caravan. Pete is the blogger/editor of the L.A. Times real estate blog, LaLand. It was lotsa fun and I enjoyed showing him some of the Burbank housing stock. Read about our tour here.

Foreclosure on Market...Pending in 10 Days

This is 403 N. Sparks. It's a foreclosure and has 3 beds, 2 baths, 1690 square feet, and is in a great Magnolia Park neighborhood. From the pictures, it's far from being a fixer, although it sure needs some landscaping. It was listed for $542,900 and went pending with multiple offers in only ten days. I think that's fast, even for a great price in a good neighborhood. I think this may be one of the first signs of increased buying activity for the spring season.

Great LAT Articles and My Local Take

There are two great articles in the L.A. Times today about housing and the economy. The first is on the front page. I apologize, but the link wasn't available. It's by Tom Petruno and it's called Cost of Getting By Keeps Getting Higher. I think the spectre of increased inflation scares me more than anything else. The second article, in David Lazarus's Consumer Confidential, is titled Housing Upheaval: a tale of two homes.

Now, not to fly in the face of conventional wisdom, and I know this is anecdotal, but: at our weekly office meeting yesterday, many agents were reporting multiple offer situations and increased traffic at open houses. So, are we seeing a bit of Spring recovery? Is this an anomaly or an uptick?

Bigger, Better, Taller...Power Poles

Paula Allen, good friend and agent extraordinare, reported in from West Burbank today. Burbank's DWP knocked on her door and announced it was replacing the power pole in her backyard. Paula pointed out that the existing pole looked just fine, but BWP said the new poles are needed to meet the increased demand for power. And they're six inches higher than the old ones. Question: isn't the world going to buried power lines rather than poles? What gives? Since Burbank has its own power supply that performed very well last summer when every other community's was going out, I guess I shouldn't question this.

Right Price + Toys + Diplomas = Multiple Offers

Here's 2304 N. Sparks, in Burbank. Ew. It has been on the market forever, but just had a price reduction down to $575,000 (original price $699,000). That's an okay price for a 3+2 with 1450 square feet, although this is very close to noisy Glenoaks. HGTV's "Designed to Sell" redid the kitchen last year, which is no big deal -- they just painted the cabinets and put in a new floor. If they did the countertops, I recommend never watching that show again as they used the cheapest laminate available. It's also a short sale, and the occupants left in such a hurry that they left their kids' toys and their framed college diplomas there. I guess that shows the value of higher education. But anyway...they have two offers. I guess that's what "price discovery" is all about. Update 2/29/08: Listing agent Tricia Ebert has left me a voicemail berating me for my lack of professionalism in writing this post. She and I obviously have different opinions regarding the condition of the house and also what blogging is about. At any rate, she told me that the owners are in the process of moving out, and have not left their children's toys or their diplomas behind.

Good News for a Bad Mall

The Burbank Town Center is the worst mall in the Valley. However, there's good news at the Macy's there (which is, naturally, the worst Macy's in the San Fernando Valley) -- it now features a MAC cosmetics counter! We no longer have to drive to either Glendale or Sherman Oaks for our lip gloss, although we still want to.

That was Fast

This is 4913 Willowcrest. It's a 3+2 with a guest house in the Toluca Woods neighborhood around Camarillo and Cahuenga. It was just reported pending -- after less than five days of showing at a list price of $698k. Yes, it was on the market previously, but at a higher price, of course. And another caveat: houses with guest houses are very marketable. However, that was fast! I'm glad to see real activity in this great pocket neighborhood.

More Animal Architecture, Cows This Time

Here's yet more animal architecture in the neighborhood! Here's a cow downspout. And not just any cow downspout, but a singing, guitar playing cow downspout. Look closely and you'll see that udders make a perfect rest for a guitar. If all this isn't enough, there are five of these downspouts running along this building at Cahuenga and Chandler.

Studio City housing prices

Again, from today's LAT: housing prices in Studio City are showing comparative resiliency, especially in the nicer areas of Colfax Meadows and the Hollywood Hills. No surprise -- it's a fabulous area. The median price for 2007 is $982,500.

Just as I Bin Sayin' about Blight...

I've written here before about how awful foreclosures can be -- not just for those home owners getting foreclosed on, but for communities having to deal with the blight that many foreclosures bring, as well. And I've been contradicted both here and in other blogs. But today's LAT has a great article on this very thing -- suburban blight. Click here to read.

Where are all the great new interest rates?

Okay, the economic stimulus package has passed. Where are all the great new interest rates for home loans? Lender Dana tells me we probably won't see reduced rates for 30+ days. Rats.

Just as I was saying on foreclosed renters...

Check out my Jan. 31 post with questions about foreclosed rental properties. Lo and behold, today's L.A. Times has a front page article on that very thing -- and it ain't pretty. If you are about to rent a single family home, here's a tip: ask your landlord how long they've owned the property and how many other properties they own. If the answer is "less than two years" and "none," reconsider renting there -- they may have gotten in the game too late with too little experience to be able to keep/maintain the property.

From French 75 to Savannah

Whew! No, French 75 here in Burbank hasn't gone out of business, it has just changed its name to Savannah. Presumably, there have been some menu and decor changes, too.

Even Some Republicans Want More Regulation

If you're a regular reader of this post, you probably know that I'm in favor of more regulation of the financial and securities markets. And apparently I'm not alone. Ben Stein writes a very readable weekly column in the Sunday New York Times business section. NYT labels him "a lawyer, writer, actor and economist." He's also a big-time Republican, and as such, one would think he'd be big-time anti-regulation. But no! Check out this quote from Sunday's piece:

"Is anyone ever going to wake up to the fact that there is a lot of larceny in the human heart and that there are a lot of sheep waiting to be shorn and that regulation is not a bad thing? Or will we just lurch from massive meltdown to massive theft and on and on? Is anyone ever going to get it? Anyone? Anyone?"

Thanks, Ben.

Info for Foreclosed Pet Owners

Pets of foreclosed-upon owners can suffer, too. Here's a helpful article from the East Bay SPCA for pet owners who are facing foreclosure -- tips, suggestions, etc. I'm sure our local SPCAs will offer similar resources. Thanks, LA.Curbed.com, for running this. (photo courtesy of Icanhascheezburger.com -- okay, so I'm not hip)

Burbank Celeb Sightings at the Y

For those of you that think Burbank, outside of the studios, doesn't have its own cool celeb quotient, here's a sighting for you: the totally hot William Fitchner has been spotted working out at the local Y.

Sick of Free Marketers

I've said this before, but I'm sick of free marketers in the blogosphere decrying the newly-passed stimulus package. It will help some people keep their homes. It will help communities fight blight. Houses aren't like some disposable-income consumer item. Is there any awareness, at all, out there that people need a roof over their heads? That a house isn't just an investment but a place to live? Boy, I never thought I'd live to see opinions like these that are pro-homelessness and blight.

10519 Woodbridge has finally closed

This gorgeous 3+2 at 10519 Woodbridge has finally closed escrow at $1,040,000 after almost a year on the market. It was originally listed at $1,099,000 and has been done to the nines. Don't know why it took so long? That street is one of my favorities in the Toluca Lake area, although old-timers don't consider it to be in TL because it's on the wrong side of Ledge.

Last Week's NODs

I just took a look at the notices of default filed last week for L.A. County. Again, Palmdale and Lancaster are seriously hurtin'. How's the San Fernando Valley doing? About the same. No more, no less defaults in Granada Hills, North Hollywood, Sherman Oaks or Burbank. Only three this week in Studio City. Same amount in Pasadena. Glendale is up a little. What to make of it all?

From our Friend, Hackster, at Real Sedated

Real Sedated has a great post titled "All Work and No Pay" about hiring a Realtor to sell your home. Click here for the link.

Good news/bad news on local listings

First, the bad news: The Woodland listing which sold so quickly (see below) is already back on the market. Some maybe good news: However, the house below on Tufts (with the black shutters) just closed for $630k -- and it sold in 10 days. The Niagara house (below, white door) sold quickly, too -- and was listed on 12/28, no less! the holidays are always a bad time to list -- for $484,900. It had sold in 2006 for much more and was just remodeled, so it is obviously a "flip" gone bad. Once again, I wonder: is the market picking up or is this just the exception that proves the rule?

Need for More Regulation in the Financial Markets

Here's a link to an excellent article about the credit crisis from this week's New Yorker Magazine. While many economists were cheering on the run-up in housing prices, here's one expert that was dubious. Here's a quote regarding the need for, yes, more regulation: “apt intervention and institutional structures are necessary for market economies to be successful.” The article continues, "Rather than waging old debates about tax cuts versus spending increases, policymakers ought to be discussing how to reform the financial system so that it serves the rest of the economy, instead of feeding off it and destabilizing it. Among the problems at hand: how to restructure Wall Street remuneration packages that encourage excessive risk-taking; restrict irresponsible lending without shutting out creditworthy borrowers; help victims of predatory practices without bailing out irresponsible lenders; and hold ratings agencies accountable for their assessments... As Minsky believed, “Economies evolve, and so, too, must economic policy.”

Pets are Losing Their Homes, Too

There's a sad story in the business section of the LAT today. Apparently, many pets are being abandoned when their owners' homes go into foreclosure. The owners usually have to rent a place to live after they leave their homes, and as all we former renters know, very few landlords will take animals. Especially big dogs. But, all sorts of pets are being left behind or taken to shelters. Once again, here's proof that there can be real costs and awful consequences to foreclosure for all family members.

(Picture courtesy of skeezixthecat.com)

What About Rental Properties?

Calculated Risk carried a story today about a woman of modest means who had bought a 2nd property as an investment -- I assume she used it as a rental. (The woman was originally interviewed on PBS). Now, she's having a hard time paying two mortgages and would like the government to bail her out. Remember back two or three years ago when everybody was encouraged to buy rental property? And many, many people did who had never been landlords before? Remember we were all told "Don't worry if the rents don't cover the mortgage. Your long-term gain in value from the equity will more than make up for any shortfall you're experiencing now." I was dubious at the time and now I'm worried. Here's my question: what's going to happen to the tenants in those properties if and when the owner defaults on a mortgage? How will the properties be maintained? What happens to tenants when their building is foreclosed?

3000 Foreclosures in the SFV

The Daily News published a story today on the increased amount of foreclosures in the Valley -- almost 3,000 in 2007. Not really surprising, except for the part that I actually read the Daily News instead of LAT.

These Three Sold Quickly

See update 2/4/08, above -- Woodland is back on the market. Here are three Burbank properties that defied expectations by selling in 18 days or less. The yellow house, at 4310 W. Woodland, listed for $499,994 and sold in seven days. The center house, at 1420 E. Tujunga, has a great view but kind of a 70's "Boogie Nights" facade. It was listed for $910,000. The third is a townhouse on Olive that was listed in my office for $439,000. Peter, the listing agent, says it was a mess. Is the local market speeding up again or are these just the exceptions that prove the rule?

I'm Quoted again in the Burbank Leader

I'm quoted again in today's Burbank Leader regarding housing prices in Burbank. Click here to read the article.

Good news on interest rates and loan limits

This just in, and it's good news. What it means: conforming loan limits are currently at $417,000. Home buyers who can get those loans can also get really low interest rates -- 5.15%! A rise in the loan limits really helps us here in CA, where most houses cost more than $417,000, by lowering monthly payments considerably.
Note: not a signed law yet!
Bush, Lawmakers Say Accord Reached on Stimulus Plan (Update2)
2008-01-24 14:15 (New York)
By Roger Runningen and Laura Litvan
Jan. 24 (Bloomberg) -- The Bush administration and House
lawmakers announced agreement on an economic stimulus package
that would distribute rebate checks to 117 million families and
give businesses incentives to invest in equipment...The accord includes a provision allowing Fannie Mae and Freddie Mac, the largest U.S. mortgage finance companies, to temporarily buy mortgages of up to $625,000, exceeding a $417,000
federal limit...

Foreclosures

Today's L.A. Times has a great article plus charts on the latest area foreclosure stats. Personally, I'm really tired of all those free market posters out there in the blogosphere that are cheering this development. Yes, some folks scammed a mortgage. But the majority of people being foreclosed are individuals and families that wanted to put down roots in a community, wanted a better living situation, wished to get their kids in betters schools, etc., and just believed the pie-in-the-sky stuff the lending and real estate industries were handing out. Okay, enough rant. I will have a new page on my website shortly that will describe options for those that can't make their mortgages.

This Week's Notice of Default List

I just looked at the list of notice of defaults filed in L.A. County this week. Simply put, a NOD is filed when a homeowner is three-plus months' behind in mortgage payments. It's the first step in a foreclosure. Lots and lots of NODs were filed for properties in Lancaster and Palmdale. So many, in fact, that I expect those communities to be ghost towns soon. Just about every community had at least one or two (I think Burbank had about 7, and Studio City had about 4), but L&P had dozens. Yikes.

A House for $195,000?!

Not that Glassel Park is for me, but check out this price! Only $195,000! This is about $300,000 under the county average. Of course, the house is only 650+ sf, the lot is only 2100+ sf, it sounds like a tear-down, you'd have to be armed to the teeth to live here, but still... FYI, it's on Arthur Street
Marketing Remarks: Probate, no court confirmation required but subject to Attorney approval. Yes!! an entire house under $200,000. Bring your imagination to polish this gem into a great first home or investment opportunity. Open kitchen w/sunny nook opens to cozy living room, 2 bedrooms, 1 bath (tax records show 1br/1ba) & large laundry room, private rear patio, long driveway to single garage w/bonus room on top (missing access stairs). All inspections to be completed prior to submitting, no contingencies, call Listing Agent for Pre-Submission package prior to writing. No conditions/contingencies. Buyer responsible for termite report/completion, retrofit compliance and city reports. Sold AS IS.

Another cool blog...

I just learned about Real Sedated -- thanks, Dana! I'm envious when I say that it's much funnier than this site.

News about appraisals

And there's another great article from today's L.A. Times real estate section about the appraisal side of the real estate equation. It's by Dian Hymer and is in the House Hunting column. Excerpt: "Because property values are under pressure in some areas, lenders may ask to see information about comparable listings that sold within the last three months (prior to the current market, appraisals up to six months' old could be used)." And "for some lenders...want information about comparable properties that are currently for sale. Current list prices that are lower than recent sale prices could be a red flag..." And "...borrowers may be required to increase their cash down payment by 5%...," "It has become more common recently for lenders to require two appraisals..." Finally, some good advice: "Check with your loan agent to find out how long it will take to process and fund your mortgage." In other words, staff cutbacks have increased processing times.

We know, we know -- it's a declining market

There's a great article in the L.A. Times Real Estate section today about the current real estate market. Yes, prices and sales are declining. What makes this article different from others is the experts quoted: Thornberg from UCLA's Anderson school and the Dataquik's Jon Karevoll. These two are widely considered to be experts' experts. Here are a couple of excerpts:
". To hear Christopher Thornberg of Los Angeles consulting firm Beacon Economics tell it, home sellers can expect the bad times to get worse, and to stick around for a while."There will be close to a 30% decline" from the peak, Thornberg said. "Prices will continue to go down in 2008. I think between 2009 and 2011, we will have what you call a 'bleeding phenomenon' where prices stay flat, which means they lose value in real terms." Losing value in real terms occurs when appreciation fails to keep pace with inflation.Thornberg's advice for would-be sellers and those struggling to pay readjusted mortgages: Get out now."If you sit on the sidelines, it is going to get worse," he said. "And if you want to sell your house now, price it down big time."Paying the piperBefore launching Beacon, Thornberg wrote reports for the UCLA Anderson Forecast, which warned as early as 2001 that easy credit was propelling home prices to unsustainable levels. Now, he said, homeowners are paying the price."
And "DataQuick analyst John Karevoll says the uncertain state of the national economy makes forecasting a tricky proposition."Jobs, growth in the economy, interest rates -- all of these things are highly volatile," Karevoll said. "It's almost impossible to make a reliable prediction because of the volatility of these numbers."If the United States manages to avoid a recession, Karevoll said, prices will probably stabilize this summer or autumn -- well short of the 30% decline suggested by Thornberg."First, we have to digest this bad apple we ate with these sub-prime mortgages," he said."
So where does this leave sellers? I think sellers should consider selling only if they have to. If you are happy where you are, if it works for you and your family, consider staying put.

R.E. Prices down 11.7% YOY

Thanks to Peter Viles and his LALAND blog for this statistic. Apparently, Dataquick has measured sales data and homes in the area are now selling for 11.7% less than they did at this time last year. From a boots-on-the-ground perspective, that sounds about right. Didn't UCLA's Anderson Biz School predict a 12% drop in prices for 2007 at the beginning of last year?

Fire at Michael's

Last night, there was a fire at Michael's Restaurant on Olive. Two adjacent homes were also burned. The fires were set by two 17-year-olds, according to the police, and did serious damage to all the properties, although Michael's is open for lunch. More news when there is some.