Gorgeous Hollywood Hills listing

My colleague Dan has just listed this immaculate beauty at 3167 Lake Hollywood, in the Cahuenga Pass area of the Hollywood Hills. It's a 2 bedroom, 2 bath, 1500 sf (taped) 1937 traditional with loads of upgrades, and includes a sunroom/den, dining area, terraced backyard and more. The owner has meticulously maintained the home, too, and added features like central heat/air, a retrofitted foundation, and a newer roof (4 years old). And it's listed for $799,000 which is an incredible price for the area -- this is an area of $1 million+ homes, folks. And it's not even a short sale or REO! Contact me if you are in the market for a home like this and we will arrange a showing.

Eban Schletter's Witching Hour

Tonight and tomorrow at 8:00 pm, the Steve Allen Theater will present "Eban Schletter's Witching Hour." Eban himself and lots of special guests will perform material from his CD, "Witching Hour," and it promises to be loads of spooky fun. (The show debuted last year at Largo.) And admission is only $10! I haven't seen the show yet, but hope to either tomorrow night or next year. The Steve Allen Theater is located at 4773 Hollywood Blvd. Eban Schletter is, obviously, a music composer who works a lot in tv. He and his wife, performer Kris McGaha, are also past clients of mine.

New jumbo conforming loan limits will be lower

As you may know, loan limits are now as follows: conforming loan limits are $417,000, and jumbo conforming limits are $729,750. These limits will expire soon. The last day to lock a rate at these limits is December 1; the last day a loan can fund at these rates is December 10 (thanks, Dana). The new limits have not been confirmed yet, but it looks like the jumbo conforming limit will drop to $625,000.

And more news from FHA: the minimum downpayment will rise to 3-1/2% from 3%. Right now, FHA interest rates are over 7%. Yikes! Are they trying to kill us?

Countrywide rides to the rescue. Or not.

In case you didn't see the paper today, Countrywide plans to cut the interest rate on some of its option arm loans to 2.5%, and possibly even reduce the principal on others in order to help people stay in their homes. I think these efforts should help some people from losing their homes to foreclosure, and that's a good thing.

And, as we all know, the holders of California mortgages now have to actually try to contact homeowners before they're foreclosed and try to do workouts, which is also a good thing and has led to a drop-off in foreclosures.

However, our office's short sale expert tells me that banks are largely paying lip service to these loan modifications. For example, I'm told that many loan servicers will now take calls from distressed homeowners and promise a workout, but then not ever follow up. And the banks are not staffing up to meet these new challenges, even though they've had ample time to recognize the problems in the housing market and prepare for workouts. So, is this all just a game? Will banks have title to most of the residential real estate out there by the end of the decade? Stay tuned.

A new task, uh, undertaken

Awhile back, I sold a property and represented both the buyers and sellers on the transaction.

I received an urgent message from Mr. Buyer this week. He had torn down the old house on the property and is building a new one. But. When his contractor began to dig the foundation, they came upon a box. With a funeral crematorium label on it. Yup. Buried cremated remains.

The sellers had sold the property after their elderly father had died there, but had said nothing to me about this. Sure enough, the remains are Dad’s. The sellers had not mentioned this to anybody because they had tried to dig him up, but couldn’t find him. They presumed he was down so deep that his remains would never be disturbed. I retrieved the box from the contractor, told Mr. Dad that I was pleased to be helping him to his next resting place, and shipped the box to the sellers. Everybody involved, (including Dad, I hope) is happy now.

And even more statistics -- here's California Association of Realtors' Economic Outlook

Once a year, California Association of Realtors gives an economic outlook presentation to Dilbeck Real Estate. Here is this year's presentation, which was given today. It's a pdf file, and it's 92 pages long, but there are some great charts and graphs here (info courtesy of Dataquick). If you are unable to open this, contact me and I'll get a hard copy to you.

Wait! I was wrong!

Yesterday's post reported some real estate sales statistics. Today's Dataquick numbers show a median sales price in the county of $360,000, and a year-over-year price dip of 22%. The other numbers are state-wide. Sorry!

Headlines and Bad Foreclosure Realtors

Okay, first the headlines from the LAT: Sales were up 65% last month over September 2007. This is largely due to the number of bargains and foreclosures that are on the market. And the median price in the county is now $308,500 -- that's what? Down 25% from last year? Or more? We are still seeing more price stability in many neighborhoods, though, such as Burbank, Toluca Lake, Studio City, etc. Yes, prices have come down, but not by 25%.

And, thanks to the new California law that requires lenders to contact home owners before they foreclose, there are now 61% fewer Notice of Defaults filed than there were last quarter, and 45% less Notices of Trustee Sales. So you're right if you think there's less inventory out there.

Unfortunately, the downturn in the market has not attrited out the lousy Realtors. Here's how not to sell your foreclosure or trust sale: list with a Realtor that doesn't return calls, doesn't give property status, doesn't list things correctly in the mls, doesn't bother placing pictures on the mls, and doesn't give correct lockbox or combo code information. I attempted to show four short sale or REO properties in Altadena this weekend; two houses we tried to see are listed with Reators like this. So if a short sale or foreclosure is on the market in the current climate for over 70 days and you're wondering why, it's likely because of the Realtor.

The NoHo Show!

As you know, North Hollywood is chock full of smaller theaters and even has its own arts district. You may have seen theater there, and many of you may have been members of theater companies and have pursued acting careers. C'mon, admit it! You may also have friends and family doing that even now. So, for your viewing pleasure, here's a delightful YouTube spoof of the North Hollywood theater scene, The NoHo Show! There are four webisodes so far, and I certainly hope there will be more. Kudos to friend Ellen, who is laugh-out-loud funny as Lori.

Multiples! Still!

This is a picture of 600 E. Walnut in Burbank. It listed six days ago for $699,000 and is now pending after multiple offers! So multiple offer situations still do exist, but they are increasingly rare. This home is such a likely candidate because it was completely spiffed up for sale, has five bedrooms, 2400 square feet, and loads of character, obviously. Although I must say I'm surprised, with all the bad economic news, that any buyer was willing to pull the trigger in the last few days. This home is right next door to a home I sold on 6th last year, and one house away from another character home that I blogged about a few weeks back. That home listed as a short sale for $499,000, which I thought was really low. I would imagine that it, too, has multiple offers.

Dab of FHA news

Here's a little FHA news: a 3.5% downpayment will soon be required. That's up from 3%. Also, the mortgage insurance on FHA loans will be going up .25%. Not deal breakers, but still...

Houses under $300,000? Yes.

I showed several homes yesterday in northwest Pasadena -- under $300,000! Yes, they were fixers (ranging from light to not-so-light). They were all under 1100 square feet. All but one were on regularly-sized lots, and yes, they all had roofs, floors, doors and windows, were in regular residential neighborhoods, and none were on busy streets. Yes, most were short sales or REOs. But I was surprised at how many real bargains are out there, and I think there will be more bargains like this to come.

Countrywide is going to do workouts. Finally.

Finally, Countrywide is going to help some of its mortgage holders modify problematic mortgages. Read the L.A. Times story here. This is something that they should have been doing, not just pretending to do, a year ago. And of course, it took legal action, in the form of California Attorney General Jerry Brown, to get Countrywide/BofA serious about doing this. This will be too late for some people who are in deep financial trouble, of course, but in California alone, there are apparently over 125,000 Countrywide mortgages that may be able to be modified in order to keep people a) in their homes and b) making their loan payments.

Rates and Loan questions

To those of you who asked about rate and loan info, here's the skinny, courtesy of Dana Dukelow at Metrocities Mortgage:

Conforming loans (up to $429k): Even though some lenders are advertising 5% down loans, it is hard to get mortgage insurance for anything under a 10% down. The good news is that today's 30-year fixed rate is running at about 5.875%/1 pt.

Junior jumbo conforming loans (up to $729k): a rate of 6%/1 pt. is possible with A+ credit and 20% down. Less down, less credit is going to be higher.

Jumbo loans (over $729k): these are really hard to get, and fewer and fewer lenders are offering them. And, lenders are frequently asking for 25% down, because this is still considered to be a declining market. However, the way to go seems to be to get a 10/1 arm, or a 5/1 arm -- if you can do it, the rates can be as low as 6%/1 pt.

What I see going forward: I hate to even try to predict it. But, surprisingly, there seems to be liquidity in the home lending system. Unlike, apparently, any other segment of our economy. My hunch is that the powers that be are going to try to shore up the real estate/mortgage system before anything else because that's where the current financial crisis began. So, and this is a guess, I would expect rates to go only slightly higher for conforming and junior loans in the next several months. But honestly, I really have no friggin' idea. I hope that's helpful.

Money to lend

Well, even though it was supposed to be raining fire and brimstone by now, several lending institutions are still making mortgage loans. Bank of America is not only making loans, they're still making home equity line of credit loans. And Metrocities, a big non-bank lender, still has plenty of money to lend, especially on conforming loans and junior jumbo loans (up to $729k). Hmmm.

No change...so far

As we all know, the bailout didn't pass. I keep waiting for the sky to fall, but so far, lenders are still making purchase money loans for real estate. BofA is still giving equity lines of credit. The phones are quiet, and that's about it.

The names have been changed to protect the equity

A 3 bedroom, 1 bath, character home recently listed in Burbank. I'm very familiar with this house. I met with the owners back in December when they asked me to prepare a comparative market analysis and determine a sales price for them. They contacted me because I had sold the house next door to them a few weeks before.

The owners/sellers were originally from the East coast. She was a stay-at-home mom, and he was a top executive at a prominent local institution. They didn't really like Burbank and were thinking of returning to the East coast. They had owned the home for about two years and had done some nice upgrades to it. I told them that I thought I could get about a maximum of $700,000 for the house. They were unhappy with that price and believed the house should sell for much more.

The house is now on the market with another Realtor, nine months later, for $499,000. It is a preforeclosure short sale. The neighbors tell me that it has been vacant for a couple of months.

It appears that these folks just walked away from their home and mortgage. Knowing what I know about the sellers, I don't believe there was significant financial hardship; they just didn't want the house anymore and couldn't sell it for what they paid for it. So, they're sticking the bank with the tab, and lowering their neighbors' value/equity in the process.

This price is significantly low for the excellent neighborhood. The house may draw multiple offers and go for over the $499k; I hope so for their neighbors' home value sake.

Search the MLS BY MAP from my site

I've just added a map search feature to my real estate site at http://www.judygraff.com/. This offers many of the same features as mega-sites Trulia, Property Shark, Redfin and Zillow. To access:

• Visit the home page of my site at http://www.judygraff.com/. Click on the "select page" box at the top right-hand corner for a drop-down menu.


• Scroll down to MLS Map Search and click. You'll be taken to a new page.


• Click on the link and have fun searching.

Of course, you can still conduct a standard property search from my site, as well. Just click on the "mls search" button at the left on the home page.

Can't buy without selling

For many years now, if you owned a home and wanted to buy another one, the banks said fine.

Not anymore. Now, most borrower/buyers will not qualify for any loan if they own their current residence and it has not been sold yet. Why? Because their debt-to-income ratios are likely going to be too high for the banks' taste. So if you own a home and are thinking about moving up, or moving down, or whatever, put your current house on the market now and make any sale "subject to sellers finding home of choice and successful close of escrow of same."

Lending guidelines are changing by the day, so this may change as well.

The Mortgages of the Future

Yesterday, Robert J. Shiller's editorial titled The Mortgages of the Future appeared in the NY Times' Business section. He calls for re-thinking and possibly re-structuring the typical 30-year mortgage into "continuous workout mortgages." These would adjust the mortgage balance and payment, automatically and systematically, in order to help homeowners continue to pay their mortgages even during harsh economic times.

I'm no economist, but hasn't this been tried many times before? Specifically, with the "negative amortization" loans that were so popular for so many years? Most folk with "neg" loans wound up owing more several years down the line than they did at the beginning of the mortgage. I guess I'd have to see one of these "continuous workout mortgages" in action before believing that this could work.

What bad national financial news may mean to our local real estate market

By now, everybody knows about the latest national financial crisis and many people are worried. What does it mean for our local real estate community? Here's my entirely subjective opinion. I think many buyers, who just took tentative steps to get into the market, will retreat again and wait for awhile. I think sellers will not put their properties up for sale if they don't have to. That leaves a market that will be mostly foreclosures (L.A.Times says 50%) plus new condo and new townhouse units (tons of new buildings are just being or have just been completed). At this point, I would not expect interest rates to bounce up -- the banks and lending institutions need to make money by lending it after all. But this Fall should be, uh, interesting.

Never to early to celebrate Halloween here in Burbank

I'm sure nobody wants to be left behind in the mad rush to purchase Halloween gear. Here's Halloween Town, on Magnolia Boulevard in Burbank, for all of your paraphernalia needs. Several years ago, a nice casual dining establishment was planned for this spot. But the Burbank city council, in their infinite wisdom, determined that a year-round Halloween store would serve the community much better. That's right, HT is open all year, for all of your costuming and horror needs.

Good news on interest rates

...Most interest rates are at or slightly under 6% again. This probably won't last, but it's a good sign.

However, there seem to be very few new listings during the past couple of weeks. Inventory is getting shorter, which is partly seasonal, but not a good sign for buyers.

Lenders are easing up on 2nd appraisals

For awhile this summer, just about every home in escrow underwent an "appraisal review" or even second appraisal. The banks didn't trust their own first appraisals in a declining market. This was problematic in that it added extra time to the escrow process, and of course, many homes were deemed over-priced that hadn't been considered so before.

Now, lenders are easing up. Yes, there are still lots of appraisal reviews, but that's happening as a final condition before loan funding, and usually don't involve an actual second appraisal. This is great news as it removes yet another stumbling block from the process. Oh, more great news: interest rates are back below 6%. I don't know how long they'll stay that way, though.

Burbank's commitment to environmental sustainability

Burbank Public Works has just sent out a terrific, 8-page brochure on recycling and environmental sustainability projects in Burbank. The brochure includes a profile of the recycle center, info on what's recyclable in Burbank, tips for "greening up" summer parties, the last laws, refund values of bottles and cans, info on city green workshops (call the Burbank Recycle Center for details at 818-238-3900), info on the Sustainability Action Plan, ideas for natural landscaping and more. If you'd like a copy, please phone 818-238-3900. Way to go, Burbank!

Foreclosures snapped up by...bobcats

Apparently, a family of bobcats have moved into some luxury foreclosed digs in Lake Elsinore. This is from a front page story on today's LAT, but unfortunately the on-line LAT didn't supply me with a link. Sorry. Anyway, there are at least two adults and three bobcat kittens living in the house. Wildlife experts say the cats gravitate to food and water, and this particular house has a koi pond in the back yard. The experts also say the cats will move on when the kittens are big enough to travel. According to the article, the neighbors don't seem to mind the new tenants, either. Personally, I think these animals are there because the got tired of trying to time the bottom of the r.e. market and know a good Inland Empire deal when they see one.

Lancaster to refurbish foreclosed homes

Sorry that I haven't posted for a few days -- I've been wrapped up in our national political circus. Anyway, the L.A. Times reports here that the city of Lancaster is going to buy foreclosed homes, fix them up, and sell them to low income people. As we all know, Lancaster has pretty much been ground zero for L.A. County foreclosures. In the main, I think this is a very good thing. Philosophically, I think this is how a small municipality should be handling this problem.

Of course, the devil is in the details. The program has $4.1 million in funds and hopes to fix/resell up to 41 homes. So, that's about $100k per home, which includes the purchase price. If the purchase price is $80k to $100k, that's, uh, not a lot left over for more than a cosmetic fix. But this program is a step in the right direction. And many people will be happy that the money is coming strictly from the City, not from the state, county or federal government. Let's stay tuned and see how it goes.

More on sober living - the Burbank City Council weighs in

If you've read this post before, you know about the controversy over sober-living facilities in Burbank. You also know where I stand on this.

According to the Burbank Leader, the Burbank City Council has asked its staff to look into ways to monitor and potentially impose stricter regulations on local group homes. State and federal laws prohibit cities from restricting members of a "family" from living together. Apparently, that family can't have more than 7 people living together without a conditional use permit.

One of the principal planners quoted in the article indicates that Burbank may tighten the definition of what "family" is.

Am I the only person who thinks this is a slippery slope and the City is vastly overreaching? Am I the only person who thinks that a municipality has no business in defining what a "family" is?

If these sober-living facilities are a hazard to the surrounding community, then this is a law enforcement issue. The solution is to put more cops on the street.

Sunday morning reading

Okay, so it's almost afternoon. Here's a great article from today's NYT Business section about the housing bust in Merced. Three-quarters of the current sales there are foreclosures. My question to the developers of these empty REOs is: Merced? What were you thinking?

For your amusement, I bring you an LAT Opinion section cartoon by Mimi Pond. It's about grocery shopping in our very own Glendale!

Bessemer just closed

My Valley Glen listing at 13523 Bessemer closed today at $630,000, just about where the sellers and I thought it would. It was listed at $659,000, and is a 2050 sf 3+2 with a gorgeous, redone kitchen, air, hardwoods, redone baths and more. It has been listed since June 17th.

This sale provides an opposing view, I think, to all of the otherwise-bad real estate news out there. I had encouraged the sellers to wait until after the summer to list the house. I had thought, wrongly, that with "such a bad market" the house would be sitting for several months during the slowest part of the year (late summer). Thankfully, the sellers didn't listen to me. We had a contract five weeks after it listed. Also, considering the news about rampant price declines in local real estate, I encouraged the sellers to lower the price after four weeks. I was also nervous about two foreclosures one street over and what those houses might do to value. Once again, they smartly declined to do so, and we shortly thereafter received the good offer that resulted in a sale. I'm not saying the market isn't bad, mind you; but perhaps all is not as dire here in the SFV as the media would have you believe.

L.A. schools, real estate, and Sandra Tsing Loh

If you've read this blog before, you know that I have harped and harped on how much value good public schools can add to a neighborhood's real estate. It's one of the reasons that Burbank real estate continues to be desireable -- the schools are great. Along these lines, my favorite L.A. humorist, Sandra Tsing Loh, has just released a book entitled "Mother on Fire" about her experiences with L.A.'s public schools. While I haven't yet read the book (can't wait!), I know that Loh has been a long-time advocate and source of info about the LAUSD magnet, charter, and plain old public school programs, and Loh's own daughters go to a magnet school in Van Nuys. Loh's website also contains several local school links that you might want to check out, as well.

No Surprise about the Burbank Collection

I posted here several months ago about the new downtown Burbank loft development, The Burbank Collection. It's right across from the AMC theaters and above Ben&Jerry's, the new Barney's Beanery, etc. The complex features almost 200 units ranging from 1 bedrooms to 2-story penthouses and the prices used to be $400,000 to $700,000+. No more.

A BC representative came to our meeting today to talk about the big price reductions the project has just announced -- about 20% across the board. I understood that this due to two reasons. First, the existing units in escrow did not appraise for their sales prices. The buyer of one unit actually received a $200,000 write-down from her original purchase price offer! Second, according to the rep, the lender on the project is breathing down the neck of the developer. No surprise there.

Further, the rep says that the code words for buyers and their offers are "yes," and "Whatever it takes." That's what we like to hear!

Other news from this rep: the development is almost 50% sold. No units can "go" FHA until the 50% mark is reached. And, I asked about a competing development, the lovely and talented Americana. Apparently, Big A is not giving out sales figures. To anybody. Period. No surprise there, either.

Outta town for a few...

There may be no posts here for a few days as I'm out of town.

Just goes to show...

...That if a nice home, in a nice neighborhood, with a nice price comes on the market, it will be snapped up quickly, even in this market. I'm talking about 1806 N. Richard in Burbank, pictured here. This house has 3 bedrooms, 2 baths, 1749 sf., a pool, and a music studio above the garage (about 400 additional feet). It has been well maintained and the kitchen and baths have been remodeled. But not with the highest-end finishes. It's in Jefferson school district. It listed on Tuesday for $695,000. The listing agent, who works in my office, tells me there are four offers in on it already, and at least one is over full price. She also tells me that all the would-be buyers are financially well-qualified. Dang. And I was going to show it to some motivated buyers this weekend, too.

Update 8/11/08: Here's another example of things going fast. 1535 Keystone went pending after 6 days on the market. I showed it when it had been on for 4 days and they already had two offers. It is 3 beds, 2 baths, 1354 square feet, with a fountain/grotto that you'd only see in Burbank that practically covered the entire yard. It was listed at $499k, which seems a little low, but a lot of the re-do was of questionable quality.

New restaurant news

I just learned that Barney's Beanery is coming to Burbank!

It will open in the new Loft Collection downtown. For those of you that might not know, Barney's is a legendary Hollywood bar and burger joint. Famous for its rowdy atmosphere in the 70's and 80's, it served lots of imported beers and great hamburgers. Unfortunately, in those days it also had matchbooks printed with the message, "Faggots Stay Out." Those are long gone, thankfully. It will be interesting to see how this works out here.

934 N. Avon has sold

934 N. Avon, Burbank 91505 has just sold for $665,000. This home features lovely character details plus updates, 4 bedrooms, 2.5 baths, and over 1600 square feet. It is on the same street as Roosevelt school and is close to the best Magnolia Park has to offer. It took us about six weeks from the listing date to get it into escrow. The sales price is just what I had told the sellers it would go for when I took the listing.

Sunday morning reading

For Sunday morning reading, here's a good article from the NYT by Peter L. Bernstein. It's titled "Three Strikes Against Consumers" and discusses the housing/credit crunch, high oil prices, and high food prices. I'm happy to see a journalist from a major news outlet discussing food prices as the issue seems to have been given short shrift elsewhere.

Today's L.A. Times' Business section has an article about whether or not it's a good time to buy real estate. It's by Peter Hong.

Why am I not including a link to this? Because it's way too statistical. The figures it cites just don't jive with my boots-on-the-ground experience of the markets I serve. Nobody disputes that local housing prices have come down. But the article's blanket assertion that the county has come down 30% is just not true for all -- or even most -- zipcodes, and I think the numbers in the article really need to be better qualified. Or perhaps I should just title this post, "I don't care what John Carroll of Dataquick says."

More on sober living in Burbank

If you've read this blog for awhile, you may remember the post and thread on Burbank's sober living houses. The neighbors close to a home on Clark were upset about its existence.

Sadly, a resident of one of the houses committed suicide in mid-July. According to the Burbank Leader, even that has fueled the neighborhood's ire about the home's existence. Some of the more interesting quotes:

"The news reignited neighbors’ fears about the proximity of the facility to their homes and to John Burroughs High and Walt Disney Elementary schools.“I am not saying this community is perfect and that they don’t belong, I just don’t understand why they have to be on that corner in the heart of America USA,” said one neighborhood resident.

And: "The suicide could have been harmful to local students, [another resident] said. “If school had been in session, kids could have walked right by and seen this happen.”

What?

First, Burbank is now America USA? Please define America for me. The America I live in contains addicts that need help. And kids could have seen it? I don't know if the backyard, where the suicide happened, is somehow exposed to the street, but that's really unlikely. And, school isn't in session. Also, most of the high school kids I have met recently are pretty sophisticated, and I doubt this would have warped their little minds.

But more importantly, suicides happen in every community, in every socio-economic group, and in every kind of home, not just sober living facilities. If the residents of the community want to fight sober living facilities in their neighborhoods, I suggest they come up with a real reason to do so. So far, they haven't.

School and Crime Stats in One Easy Graphic

I'm not in the habit of promoting other real estate sites, but the brand new LA Life offers something really unique. The home page has an easy-to-read chart of all crime and school statistics for all Los Angeles neighborhoods. The info is presented in a numerical format, for example, (Fill in the neighborhood here) crime 2.0, schools, 5.0. Cost-per-square-foot info immediately follows the other numbers. I assume that the school stats are from the recent API scores, and I'm not sure where the crime stats come from. In my experience, these two indicators are the most important factors buyers consider when choosing a neighborhood. I am happy to note that Burbank has a crime rating of 9 (10's the safest) and a school rating of 8.5. I can't speak about the ease of property searches there. You may just have to visit my site at http://www.judygraff.com/ for that;).

Update from the website developer: Our crime statistics come from each department and are broken down to the smallest geographic area that each department puts out stats for. For instance, the LAPD will have more precise boundaries than the Long Beach PD, because the LAPD is more open with information. We then compare the areas, adjust for population, and place them on a scale with 0 being the least safe in LA County, and 10 the most safe. You are correct that the school statistics are derived from API scores, and scaled against other LA schools as well.

Why I will no longer allow anonymous posts here

The LA Times’ James Rainey wrote a great “On the Media” column today. It’s entitled Website Comment Boards Bring Out the Inner Vulgarian. Boy, I’ll say.

I’m a frequent poster on the LA Times’s LaLand real estate blog. The blog examines the local r.e. market. Peter Viles, the blog editor, rode along with me on our local caravan back in February. Most of the posters there believe the real estate market is in the middle of a prolonged crash, and it can get a little shrill and flame-y. I admit I have contributed to the flames in the past. Lately, however, the comments have been getting very more and more childish and vindictive. For example, from yesterday: “Real estate agent…when you’re too ugly to work at Nordstroms.”

And here, a poster named Anon has continually challenged me on statistics (see my Stalker post, below), ignored my boots-on-the-ground posts on my local market experiences, and has sent in some increasingly viscious comments. Anon, if you don't like my blog, don't read it. If you want a forum, create your own blog.

I have loved the freewheeling nature of blogging and open commenting in major media outlets. But, Rainey is right. The tone of the comments everywhere is descending and beginning to seem like recess on the third-grade playground.

And, this blog is not a democracy. I started it to try to give information about my local market, promote my services and (hopefully) amuse you readers with various real estate absurdities. So, I’m not only going to moderate posts, I will no longer allow anonymous comments of any kind. As Rainey’s article says,

“Webmasters could begin to fix the problem and heighten the level of discussion by requiring folks who want to share their views to also agree to publication of their real names. If you're not willing to put your name beside that lovely screed, maybe it really isn't fully fit for human consumption.”

Another celebrity sighting

There was another celebrity sighting today at Aroma, Studio City's best coffee house/cafe. This time it was Moby, recording artist extraordinaire. I'm told Moby is about as small as this picture.

I have a statistics stalker! See below.

I am always amused when amateur statistics hobbyists try to tell me about the local real estate market. See the comments on "...and bad news for buyers" below.

Sunday Reading from the L.A. Times

Today's Sunday reading is actually a cartoon by Mimi Pond from the LAT's opinion section. It's about one of our favorite whipping boys, Americana!

Misquoted in Burbank Leader

I just sent this letter to the editor of the Burbank Leader:

"I am a local Realtor, and it is a privilege to be quoted by Jeremy Oberstein in the July 26 article "Local Housing Market Flailing." However, in the paragraph about foreclosures in zipcode 91505, I was quoted as saying there were 19 foreclosures out of 4,000 homes in this year's second quarter. The number should read 14,000 homes. I think you will agree that this is a very significant difference. Also, I believe I cited statistics from the first quarter only, when there were just 6 foreclosures in that zipcode. The source of my information, obtained in May, was the Los Angeles Times' own "search foreclosures by zipcode" widget available on the L.A. Times' (your parent company's) website."

Okay, I'm finally beginning to believe that "the media" is blowing this issue out of proportion, at least for our area.

Update: Jeremy sent me this return email yesterday:

Judy,

My mistake. I will change 4,000 to 14,000. The stats cited were not from the 1st quarter but from the second; That is why we were doing the article this week. It was an honest mistake and one I regret making, but not a case of "the media blowing this out of proportion" as you mention on your website.It will be fixed on the Leader website ASAP.Thanks for bringing it to our attention.

Jeremy

The New World of Real Estate Advertising

We just received notice that the Los Angeles Times plans to eliminate the Sunday Real Estate section. I don't know whether this has to do more with the reduced revenues from the real estate classifieds, or just general cut-backs at the newspaper.

But it's a sea change for sure. Can it be much longer before they eliminate the advertising section as well? Although I don't want to see either of these go, I'll admit I'm using much, much more electronic and internet advertising than print advertising for properties. Most of my colleagues are doing the same. So I'm sure the lower profits from the real estate community lead to the decision to lower the editorial support. Still, a major metropolitan Sunday paper should have a real estate section.

Yet more reading -- is this beginning to feel like homework yet?

When I did my Sunday reading post (below), I hadn't yet read the NYT article "Given a Shovel, Americans Dig Themselves Deeper in Debt." It's really interesting reading. If you can get a copy of the paper, there's a fascinating full-page graphic showing the difference in consumer borrowing and debt through the last nine decades. Factoid from the graphic: As recently as the 1970's, only 6% of American households had credit card debt!

And today's LAT front page headline article by Peter Hong is about foreclosures. Peter interviewed me on Monday for this, but I guess I didn't make the edit. Anyway, here's an interesting item:

The latest figures contained one surprise: defaults -- the first step toward foreclosure -- rose by just 6.6% in the second quarter, down from a 39%. DataQuick President John Walsh said the reason was not immediately clear. Foreclosures may be "nearing a plateau," he said, but it could also mean that lenders are "swamped and can't handle processing any paperwork." [emphasis mine].

That's what I'm seeing, too. Lenders just don't have the staff to handle work-outs, short sales, foreclosures...

Miley Cyrus invites you to Burbank

There's a billboard on the 5 Fwy north where Burbank meets Glendale. It's an ad for Disney Radio featuring Miley Cyrus. Am I the only one that thinks this looks way suggestive? Like teen soft porn? And everybody thinks Burbank is so boring.

Sunday Reading: On-Line Housing Search Tools

Here's an excellent article from today's L.A. Times about house-for-sale search engines. The writer notes that most of them ask the searcher to sign in, and several sites then forward the searcher's info to a real estate agent. Of course. They're "lead driver" sites, and they make their money by charging Realtors for the leads, or even by charging Realtors to subscribe. They have to make money somehow, right?

Not to plug my company, but I think Dilbeck.com has an extremely user-friendly site.

Avon, the local r.e. board, IndyMac and the beach

Here's 934 N. Avon. It was listed for $699,000. Not that you care, but due to a clerical mls reporting error, it was reported as sold yesterday for $547,900. Not hardly. It is in escrow and is set to close on August 5 for much more than that. And for those of you that think the local r.e. boards are useless (now, who thinks that?), it has taken me a cumulative two hours and several faxes just to get the info corrected -- and the list price is still wrong. This has been so frustrating that it's making standing in line at IndyMac look as pleasant as a day at the beach.

Good news for buyers and sellers...

Even though there is turmoil in the financial markets, there are still loans to be had with small down payments. A buyer needs only 3% down for a conforming FHA loan and the seller can contribute up to 3% in closing costs. Other loans can be obtained with only 5% down.

And, interest rates are down a little bit. They are still fluctuating, but nobody expects much of a rise there over the next few weeks.

"Stated income" loans are also still possible. These are loans for people who don't get a regular paycheck, are self-employed, or small business owners, etc. A buyer needs 2 years' worth of tax returns and good credit to qualify.

So, if you need to buy a home now, you might find the lending possibilities to be broader than you thought.

...And not so good news for buyers

No, there's no news here about IndyMac or Fannie or Freddie. The news is that there are actually quite a few less listings in the east San Fernando Valley than there were at this time last year. According to the local mls's, we're down about 25% from the amount of listings we had at this time last year. (This is not true for Santa Clarita; the amount of listings are way up.) Traditionally, this part of the summer is slow for new listings. It will likely be worse in August and get a little better after Labor Day. But I think that sellers are reluctant to sell now if they don't absolutely have to.

Australia + Burbank = Wha?

This is a bad picture, I know. But can you read the sign? It says Australian Immigration Service and it's on Magnolia Blvd. here in Burbank. Why is this here? Are Australians clamoring to move to this country, specifically Burbank? If so, why? What do we have, except our just all-encompassing wonderfulness and Zankou Chicken, that they don't have in their own country? Can we get them to bring some koalas with them?

Lenders aren't listening. What a surprise.

For your Sunday morning reading pleasure, here's an article from the New York Times' Business section. No, it's not about Fannie, Freddie or IndyMac. It's about how impossible it is to get in touch with your lender to arrange a work-out on your mortgage. The article is long, but it contains lots of anecdotes, and I've heard stories like this from several people here. I've already blogged about how long it's taking to arrange a short sale, especially with Countrywide -- same thing here. The lenders are just not equipped to deal with what's going on.

Also for your reading pleasure, here's today's NYT Ben Stein's column. It's about applying investing advice to your love life. Why didn't I get this guy before?

Longest escrow ever, or when bad escrows happen to good sellers

Here’s the story of my client, Marc, who was caught in the crossfire of this transitioning market. Marc bought 1210 N. California (pictured above) in Burbank in 2002. Subsequently, he and his fiancée bought a home in a new development in February 2007, with a closing set for June 2007. They planned for the sale proceeds from 1210 to cover much of the cost of the new house.

So far, so good. The r.e. market was still humming along at this point, and we put 1210 on the market in March 2007 for $780,000.

By early summer 2007, we had lowered the price twice and had negotiated three low-ball offers. No sale. Marc refinanced 1210 to cover the down payment of the new house, and the new place closed as scheduled. A qualified buyer for 1210 soon appeared and we opened escrow with a purchase price of $700,000 in mid-July. The buyer wasn’t putting much down, but neither were any other buyers at this time.

Then August 2007 came, and the real estate lending market screeched to a halt. The buyer of 1210 couldn’t get a loan. Neither could anybody else. Marc was now making two mortgage payments, with no end in sight. What to do?

Marc rented the house to the would-be buyer on a lease-option deal. The buyer would then pursue getting a purchase-money loan in early 2008. Why the wait until then? Because we all hoped the lending market would loosen up by then.

Spring ’08 came, and the buyer began to work on getting another loan. The lending market had indeed loosened up. Sort of. Loans still aren’t that easy to get, and this particular one was no exception.

And, by this time, housing prices had come down. The house re-appraised at $630,000. Although he wasn’t happy about the price reduction, seller Marc is a realist. He didn’t want to be stuck paying two mortgages forever. Plus, he and his fiancée just wanted to get on with their lives. The Realtors involved (me, my brokerage and the buyer’s agent and brokerage) shared some of the pain by reducing our commissions (gulp).

The almost-a-year-long escrow finally closed last week. My seller took the hugest hit, obviously. I think this story is instructive as an excellent example of the pain absorbed by individual sellers in this new real estate market.

News on our old friend 2304 N. Sparks

Remember this house? It's a short sale which has been on the market for a very long time. It had an HGTV-redone kitchen. I blogged about it here last February and got in trouble for doing so by the listing agent. My bad. And when Peter Viles of L.A. Times blog LaLand rode along with me for caravan, he blogged about it, too.

It's in escrow, and here's the skinny. The buyer's agent is in my office, so that's how I got this info. The selling price is $485,000 -- way less than the $699,000 it originally listed for. There were apparently several offers. I was told there were offers on it back in February -- for $550,000, no less -- though I don't know why they weren't acted upon then. But short sales are taking a very long time to get approved these days.

The buyer is an investor who put down a lot of cash. I'm told he plans to have a relative with school-age children move in so the kids can go to Muir, the middle school.

No posts for a few days

I will not be blogging for most of the week. But I hope to return next week with a post about the longest escrow ever and another about selling junk- and trash-filed houses.

Short sales and Countrywide

The latest that I've heard on short sales is that it's taking Countrywide over 12 weeks to approve them. This info is from a Realtor colleague with 4 short sale properties where Countrywide has the 1st note. In other words, if you make an offer on a short sale property, don't expect to hear anything for, uh, awhile. OMG, why? Apparently, Countrywide is completely backed up on processing these -- I'd say they're more likely overwhelmed.

Foreclosure and homelessness

Many people who've been reading and posting on housing market blogs lately think that large numbers of foreclosures won't lead to serious social problems. The thinking seems to go, "If you're foreclosed on, no big deal because you can always rent." (Forget the kids' good schools and where the pets will live.) No-big-deal posters, here's an article for you. It's from AOL, and here's a quote:

"Nearly 61% of local and state homeless coalitions say they've seen a rise in homelessness since the foreclosure crisis began in 2007, according to a study released in April by the National Coalition for the Homeless. According to the study, which let respondents offer multiple replies when asked where they're headed once their property is foreclosed on, 76% of displaced homeowners and renters are moving in with relatives and friends. About 54% are moving to emergency shelters. About 40% are already on the streets. Nearly 61% of local and state homeless coalitions say they've seen a rise in homelessness since the foreclosure crisis began in 2007, according to a study released in April by the National Coalition for the Homeless. According to the study, which let respondents offer multiple replies when asked where they're headed once their property is foreclosed on, 76% of displaced homeowners and renters are moving in with relatives and friends. About 54% are moving to emergency shelters. About 40% are already on the streets."

Okay, you NBDs, if you think the government has no place in helping those whose homes are facing foreclosure, I think it's time for you to pony up and start contributing to homeless charities.

We have nothing to fear but fear itself...and high interest rates

Okay, in the grand scheme of things, my real estate world is pretty small. But in my experience: In the last week, three separate buyers of three separate properties got could feet about even making an offer. They're convinced that prices will go down, and are too afraid to buy now. I'm hearing this from every agent I work with.

And maybe there's good reason. Due to rising interest rates, another buyer client couple that I work with will be paying $500 more a month on the same mortgage amount that they would have paid in April, even though their own financial picture hasn't changed. Yikes.

Did you see me on the news last night?

If you saw Fox 11 news at 10 last night, or the Channel 13 news at 11, you saw an interview with me about the Countrywide lawsuit. I received a call from a reporter yesterday afternoon regarding this, and they met me at an early evening showing. I was quoted as saying that Countrywide gave away loans like candy, and anybody who could fog a mirror could get a loan. I also said that while Countrywide is the biggest mortgage lender who engaged in dubious loan practices, they were certainly not the only ones. I said more but it was edited down to sound bites, of course.

Your house hasn't sold? Maybe that's because it hasn't been shown.

If you are selling your home in the current market, you’ve probably spent lots of time and money getting your house in top condition. But if you have your agent conducting showings for you instead of installing a lockbox, you are not helping your sale.

As part of their services, most listing agent/Realtors in high-end areas set up appointments with buyers’ Realtors and their clients and then meet them at the property. However, it has been harder and harder to get showing appointments lately.

I’ve recently encountered the following:

• In trying to schedule showings of five properties with a day’s notice, only two appointments could be arranged;
• I had to call one agent five times to get one return call for a showing appointment.
• One agent insisted that we meet her at precisely 3:00 pm. While we were there at 3:00, she was 10 minutes late, announced that we only had 20 minutes to see the house, and had scheduled two other showings at the same time.

I could go on, but you get it.

In my opinion, there are only two reasons that a lockbox shouldn’t be installed: 1) if uncontrollable pets are home alone; and 2) if children are home alone. All valuables and collectibles should be removed from premises prior to showing. That’s just common sense.

Electronic lockboxes and key pads are safe and reliable – only licensed agents have them, and they all have a pin code that must be input each time one is opened. Identity of an entrant can be easily, quickly tracked on line. An agent can call the listing agent or occupant to say they will be showing the house at a particular time, and then go to see the property directly. So if you’re a seller, do yourself a favor and have your Realtor install an electronic lockbox. Your number of showings will definitely increase. And the more showings you have, the sooner you’re likely to be in escrow.

Readying a house for sale

From the "Maybe if you don't believe me you'll believe it if you read it in the LAT" Dept.: Here's yet more Sunday reading from the LAT regarding readying a house for sale. While I think the "door" example is a little extreme, this is terrific, accurate information that helps homes sell faster and for more money.

FHA may shut down "gift" programs

For your Sunday reading pleasure, here's an article from today's L.A. Times regarding the charitable gift "programs" that allow sellers to give a lot of money back to buyers. The way it works is this: a seller contributes up to 6% of the sales price to the organization like Nehemiah, which is set up as a charity. Then, for a fee, the charity gives it back to the buyer as a grant for their home. There are restrictions on both sides, of course -- but I've often wondered why this isn't looked upon as money laundering. So this comes as no surprise to me.

New listing at 13523 Bessemer, Valley Glen

I've just listed 13523 Bessemer in Valley Glen. I hope to have pictures and details up on the regular website later today. This great 3+2, 2000+sf has been immaculately maintained and features one of the nicest kitchens I've seen, which opens to a vaulted-ceiling den. There are gorgeous hardwood floors, updated bathrooms, new custom paint, a spa, and lots of upgrades. List price is $659,000.

And, the sellers of 934 N. Avon (see below) in Burbank have accepted an offer. We'll open escrow tomorrow. Plus, 848 Idlewood in Glendale is closing next week.

Another explanation of how it all happened -- population estimates were very inflated

For your Sunday reading, here's an article from the Arizona Republic (I'm in Phoenix). This is a fascinating look at how a government's own statisticians can be way off the mark in estimating future populations, and the serious consequences those predictions can have. It looks at the community of Buckeye, which was a hell hole and not even a suburb yet when I grew up in Phoenix. Somehow, however, the estimators predicted that this place would have a population of 2 million by 2030, and it began to grow accordingly. Now, it's ground zero for the foreclosure bomb (although I have to say, the other vast suburban metro areas of Phoenix don't appear to be hit that hard at all).

More from the LA Times clipping service here...

And here's another great column from today's L.A. Times about timing the real estate market.

The Short Sale Process

There's a very good article about short sales in LATimes.com. It will be in the Sunday LAT as well. Here's the link. Keep in mind, the banks lose more if they foreclose than if they allow a short sale. They have to manage the property, pay the costs of the sale, keep the insurance up, etc.

Don't open the champagne yet, but pending sales are on the rise

Let's not get too excited yet, but today's L.A. Times reports that pending sales rose last month. Here's the link to the story. The numbers are national, not local, but that would dovetail with what I've been seeing. Increased lending equals increased home buyers, equals increased sales. The end of the article contains a quote from L. Yun, the spokesperson for National Association of Realtors. I'm not sure he's right about a rebound in 2010, but let's dare to dream.

Another great open house

Attendance was terrific as yesterday's open house. See below for a picture and details about 934 N. Avon. I was a little nervous beforehand due to our gloomy economic news on gas and food prices, but attendance was actually better than it was at the first open house I held on Avon. It was actually even better than the usual attendance at open houses during the "boom" years. Once again, the majority of buyers were young couples with kids. No surprise, since this home is on the same street as Roosevelt Elementary, an outstanding public school. But did the house sell? Stay tuned...

Open house in great school district

If you've read any of my blog posts, here or elsewhere, you know how important good public schools are to a neighborhood's real estate market stability and a particular home's desireability. If you're looking for outstanding public schools, come see 934 N. Avon in Burbank. It will be open on Sunday, June 8, from 2:00 to 5:00. You can check the latest API ratings on my regular site on the public and private school page. Roosevelt Elementary, just down the street, posted APIs of 850.

This gorgeous tudor features 4 bedrooms, 2.5 baths, 1647 square feet, lots and lots of updates including a remodeled kitchen, dual zone a/c, all copper plumbing, newer electrical, newer windows, etc. It is listed at $729,000. You can find more pictures and info on my website, or call me for more info. I hope to see you on Sunday.

A little glamour here...

No, I have nothing to do with Britney Spears' real estate (how lucky could a little Realtor-from-the-Valley schmo get?). But for those of you that bemoan the lack of celebrity stuff on this blog, please check out "10 Most Beautiful, Unique and Amazing Celebrity Homes" here. This was sent to me by a new site, International Listings, or intlistings.com. What do you think?

From ICanHasCheezburger.com

Update June 12: This little guy/lady (or someone that looked just like him/her) was scampering across the top of my patio fence last night. I love urban wildlife.

My Downtown Trip

The husband and I spent two days at the L.A. Convention Center this weekend. The occasion was Book Expo America, the annual publishing business trade show convention. It rotates cities (NYC, D.C., LA, Vegas) every year and this year was L.A.'s turn.

This was my second BEA convention and my first trip to the L.A. convention center in many years. The crowd seemed to be about half that the NYC BEA had last year, and I'm told that NYC publishing industry people don't like to come to L.A. because of the vast distances, lack of public transport, etc. For me, I think the Convention Center has a really confusing layout. And believe it or not, it needs more Starbucks and eating options.

I worked downtown for many years and really enjoyed the area even before it was gentrified. It has truly changed since then and I can sorta see what attracts people to expensive lofts. What is still missing, though, seems to be essential services: drug stores, grocery stores (I didn't see the new Ralphs), dry cleaners, street parking, mechanics. Are they out there?