Great question. The truth is that, lately, the number of sales is quite a bit higher than the number of listings. Our inventory is shrinking and this is not a condition that leads to a lot of obvious deals.
So, where is the opportunity?
I think it is time to think about moving up to the next house! The conditions to move have never been better:
We have the first EVER tax credit for move up buyers ($6500)
Presumably your current home is in the lower price range, where there is high demand and multiple offers
The “gap” between your current home’s value and your new homes purchase price has never been so small.
Truthfully, most of you Chitlins only fantasize about moving up. You’ll go only if “the right house comes along”. I am not talking to you. I am talking to the people who really need to move, but have put it off because the market is “bad”.
The market is great, but you need to be smart and you need to plan ahead. You can’t buy your dream home contingent on your current home selling. If that is a condition for moving, you are not going to move. Here are the questions you should ask:
Why do I want to move?
If I find my dream home, what am I willing to do?
Is there any way I can buy without the sale of my home?
Do I have an equity line, 401k, savings or short term loan from relatives?
What do I want more- the ability to buy my dream home or the comfort/convenience of staying where I am?
If you would like to be in a position to strike while the iron is hot, call me for a consultation today.
**Tip** I e-mail a list of the best deals of the week every Friday. Click on the “E-Mail Updates” link on the right to get this letter!
Here’s a move up idea! Search Foreclosured Homes in La Canada!
I have heard buyer after buyer cite the coming tsunami of foreclosures as a good reason to hold off on buying a home. Heck, I’ve even said that the foreclosures are “out there”, though I thought they would show up in a loooooong steady stream.
Out in the Twitterverse, however, I came across an interesting article that posits the idea (documented, according to the author) that this is just a myth. There is no “shadow inventory of foreclosed homes”.
The article was posted on ForeclosureTruth.com and it tells us that far from having a lot of homes to buy…
As a result, the pendulum has swung to the other side. Instead of a glut of properties hitting the market, as so many have warned, we currently don’t have enough inventory for those who want to buy homes, and homeowners are still in trouble because the so-called solutions (foreclosure moratoriums, loan modification, refinancing) don’t fix the real problem, which is negative equity.
One thing that she may not understand is that it does take some time from the date the property is foreclosed on, until it is listed. Evictions are getting lengthier right now, especially with recent legislation that protects renters from eviction for the remainder of their lease. It also takes a little time to clean trash out, and list the property as well. Properties in this process aren’t being “withheld” by banks in the “shadows”. As we point out it takes banks on average 7 months to resell these properties, and they have less than 5 months of inventory on hand. There is no excess, hidden, inventory of bank owned homes in CA, whatsoever.
Not only is this true, it is not possible to buy the home while it is being “processed”. A lot of buyer demand can build up while we wait for these homes to wend their tortuous way through the bank’s gauntlet.
What does this mean? The same thing I always say. If it is the right time to buy, buy. If the right house is in front of you for a price you can afford, buy. If you need to sell, sell. It is not likely to get worse, but, darn it, we aren’t on the cusp of a renaissance either.
Here are the foreclosures available for sale in Glendale- is one of them right for you?
I have heard buyer after buyer cite the coming tsunami of foreclosures as a good reason to hold off on buying a home. Heck, I’ve even said that the foreclosures are “out there”, though I thought they would show up in a loooooong steady stream.
Out in the Twitterverse, however, I came across an interesting article that posits the idea (documented, according to the author) that this is just a myth. There is no “shadow inventory of foreclosed homes”.
The article was posted on ForeclosureTruth.com and it tells us that far from having a lot of homes to buy…
As a result, the pendulum has swung to the other side. Instead of a glut of properties hitting the market, as so many have warned, we currently don’t have enough inventory for those who want to buy homes, and homeowners are still in trouble because the so-called solutions (foreclosure moratoriums, loan modification, refinancing) don’t fix the real problem, which is negative equity.
One thing that she may not understand is that it does take some time from the date the property is foreclosed on, until it is listed. Evictions are getting lengthier right now, especially with recent legislation that protects renters from eviction for the remainder of their lease. It also takes a little time to clean trash out, and list the property as well. Properties in this process aren’t being “withheld” by banks in the “shadows”. As we point out it takes banks on average 7 months to resell these properties, and they have less than 5 months of inventory on hand. There is no excess, hidden, inventory of bank owned homes in CA, whatsoever.
Not only is this true, it is not possible to buy the home while it is being “processed”. A lot of buyer demand can build up while we wait for these homes to wend their tortuous way through the bank’s gauntlet.
What does this mean? The same thing I always say. If it is the right time to buy, buy. If the right house is in front of you for a price you can afford, buy. If you need to sell, sell. It is not likely to get worse, but, darn it, we aren’t on the cusp of a renaissance either.
Here are the foreclosures available for sale in Glendale- is one of them right for you?
Ok, my Darling Chitlins. I well know this is outta the box- even for me. But here’s how the universe works and why life is so beautiful.
Bill and Elizabeth, who are these terminally cool residents of Northwest Glendale, love the way I work. (Thank you guys, I love you too!). Bill’s best friend grew up in the Palisades and needed to sell the family estate. Bill told his friend about me, I pulled in a phenomenal local expert and, badda boom badda bing, I have a total Deal Alert in the Palisades. In case you were wondering.
So, why is this special? This 1936 LOL house is located in a fancy (to my eyes) neighborhood of 2-5 million dollar mansions. The wide, 14,000 sf lot backs to Will Roger’s State Park and would have ocean views to the front if it had a second story. In an area where people are stacked up upon each other like pieces of wood in a wood pile, this house affords precious privacy and elbow room. We, here in Glendale, would consider this home in reasonable condition. Over there, this home is probably a tear down (**sigh**). We are Event Pricing this home at $999,000- WOW!!
Details, like size, address and open house dates (this Sunday, Novemeber 15 is the first one!) can be found at www.BeachHomeFixer.com. Take a look at this video for a sense of what we have.
Check out this fancy graph, Chitlins! We’re going upscale at Kendyl’s Open House.
The main story continues to be the dropping number of homes for sale and the rising number of homes being sold. In fact, we had a high of 10.4 months of inventory on the market in February of this year- we are now at 2.3 months of inventory. We have had a steady rise in the number of homes sold each month for most of this year.
Prices, however, seem quite stable. The average price rose 1.2% over the last 6 months. You see the “dip” that we are in right now? That reflects sales, or lack thereof, in August. If there was ever a dead month in Real Estate it’s August- not December.
This week we are going to bang out all three cities statistics- today Glendale, then La Crescenta and last (but of course, not least!) the fine city of La Canada.
The most striking thing of note is that almost every number on this chart is down. Less listings, slightly less sales and, surprisingly, lower prices.
But less delve a little deeper. See how the price per square foot is higher? Smaller homes tend to have higher price per square foot. This number tells me that prices haven’t gone down- it is the smaller homes that are selling.
Single Family Homes
August
Sept
Oct
New Listings
41
44
32
Total Listings
130
127
110
Sales Pending
78
60
68
Homes Sold
33
38
35
Expired Listings
21
19
13
Average Days on Market
58
64
74
Average $per Sq.Ft.
$336
$348
$367
Median Selling Price
$633,000
$672,500
$603,500
Average Selling Price
$711,982
$674,079
$616,097
Absorption Rate *
3
3
3
Condos and Townhomes
New Listings
27
24
28
Total Listings
83
80
86
Sales Pending
37
47
47
Homes Sold
21
27
32
Expired Listings
11
13
7
Average Days on Market
93
57
88
Average $per Sq.Ft.
$264
$264
$262
Median Selling Price
$330,000
$329,000
$289,950
Average Selling Price
$348,952
$330,407
$317,869
Absorption Rate *
3
3
3
* The # of months to sell current inventory at present rate of sales
National Association of REALTORS® Government Affairs Division
Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit
Question: Existing homeowner credit: Must the new house cost more than the old house? Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit. Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit? Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement. Question: I am a firsttimehomebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit? Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phaseout
range). Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit? Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling. Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests? Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight what he did since 3 years doesn’t impact eligibility. Question: I am an eligible firsttime homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me? Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
Celebrations go out to my awesome buyers in La Crescenta. They qualify for the Current Homeowner Credit-a nice reward for really nice people. Woo Hoo!!!
There is little doubt that the Federal Tax Credit for First Time Glendale Home Buyers (whew- that was a mouthful!) had a positive effect on our housing market. I even saw a few offers that were contingent on a close of escrow by November 30- the deadline for the current program.
Late last week it became all but certain that lawmakers would not only push the deadline well into next year, but that they would also expand the program in a few key ways.
Deadline Extended
I the current prgram buyers must close escrow by Novemeber 30, 2009. In the new program, escrow must be opened by April 30, 2010, but there is an additional 60 days allotted to close escrow.
Income limits for buyers will be higher
Income for single buyers can now go as high as $125,000 from the previous $75,000 and married couples can earn as much as $225,000, up from $150,000. Purchase price can not exceed $800,000
Move Up Buyers Benefit, Too!
The most significant change is the inclusion of buyers who have owned a home for more than 5 years. These buyers will qualify for $6,500 in tax credits when they buy a larger home. It is nice to see that someone up there is thinking. All the credits in the world won’t help if there are no houses for these first time home buyers to buy!!!
Now, my precious Chitlins, don’t go all giddy just yet.
This broudly supported, Obama Blessed, eminently sensible plan still has to make it out of the Senate Chamber. Along the way, Gremlins will, no doubt, strip some of the more useful and practical provisions out of this bill. But it is almost certain that the current program will extend well into next year. Woo Hoo!
Here is our last neighborhood recap for September- this feels like such old news, now!
In September, La Canada saw it’s inventory of homes go way way down. Sales of sub one million dollar homes went up but homes over 2 million are about the same. Overall inventory is down by more than 20%, but the real story is in the decrease in listings under $1.5 million.
The real stopper in the over 2 million range isn’t a lack of buyer want, but, rather, a lack of available financing. Super jumbo loans (over one million) are expensive and difficult to get- requiring 30% or more as down payment.
I expect to see continued demand for the sub one million price range through the end of the year. If you have a smaller home in our fair city, now is the ideal time to think of selling. Buyer demand is very, very strong.
Single Family Homes
July
August
Sept
New Listings
19
19
17
Total Listings
87
76
65
Sales Pending
30
32
24
Homes Sold
29
24
23
Expired Listings
15
15
12
Average Days on Market
130
110
121
Average $per Sq.Ft.
$447
$456
$475
Median Selling Price
$1,380,000
$1,069,000
$1,120,000
Average Selling Price
$1,493,172
$1,082,896
$1,455,217
Absorption Rate *
5
5
4
Condos and Townhomes
New Listings
2
0
2
Total Listings
6
4
6
Sales Pending
1
1
0
Homes Sold
2
1
1
Expired Listings
0
3
0
Average Days on Market
124
52
76
Average $per Sq.Ft.
$446
$384
$353
Median Selling Price
$822,500
$810,000
$455,000
Average Selling Price
$822,500
$810,000
$455,000
Absorption Rate *
10
6
8
* The # of months to sell current inventory at present rate of sales
A couple of years ago, hubby and I went to China with fellow realtor/blogger Tracy King and her hubby. We had a grand time seeing every possible cliche touristy thing and it was fabulous. Every where we went, we ended the day with a Chinese Foot Massage.
Each city had a slightly different style, but it was always an hour, dirt cheap and very clean. After a full day of traipsing about the Great Wall or yet another fancy temple, this massage left us utterly renewed and ready for the next adventure.
Back in the States I’ve been a bit bereft. You can get great foot massages in San Gabriel Valley (CCM and the Vivid are 2 examples), but who has time to get there during a busy day?
Enter Anna’s Beauty Spa. This non-descript shop in an equally bland strip mall is located on Foothill Blvd. next door to the Der Wienerschnitzel and just off Pennsylvania Ave. in La Crescenta. There is a narrow driveway between two identical buildings that leads to a spacious parking lot. Take the farthest stairway to your left and that will lead to Anna’s backdoor.
Chitlins- this is the best $25 bucks you will ever spend on a foot massage. It is a full hour and they not only care for your tired tootsies, they do a nice job on your calves, scalp, neck and back. The space is clean and sparse. They have these nice “chairs” that are more like adjustable tables- you start in a seated position while your feet soak in a hot bath and the therapist massages your scalp and face. Then they lower the back until you are nearly flat for a the reflexology treatment to your feet. Lastly, you flip over, place your face through the hole (so you can breath) and they massage you back and neck. There were elements of Thai Massage, deep tissue and a little acupressure.
George was my therapist, and he was great. However, Anna is the named owner and I suspect she might have the most experience and real knowledge. I am going to angle for an appointment with her the next time I go.
I just bought a coupon for $20 worth of groceries at Super King for just $10. Holy Moly!!!
If you have never been to Super King you are truly missing out. The produce is insane- fresh, cheap and varieties I’ve never seen anywhere else! I prefer the Altadena location- it is newer, larger and the parking is just a tiny bit easier. The LA location, on San Fernando Rd across from the Ribet Academy is also very good.
It seems like every Real Estate blogger (including me) is singing the same old tired song. No inventory, massive multiple offer battles, lots of frustrated buyers.
“Cry me a river, build a bridge and get over it!” (this is a direct quote from my 12-soon-to-be-13-going-on-42, son)
In every situation there is an opportunity, so where is it? How about buying a Glendale Home that has been on the market for more than 120 days? These homes have sellers that are either really motivated to sell or they are not realistic. There is no way to tell unless you make an offer.
Here is a list of Glendale Homes on the market for more than 120 days:
Address
Bed
Bath
SF
Price
DOM
406
Elk
1
1
560
$229,990
355
1548
Maple
2
1
1183
$390,000
161
315
Windsor
1
1
704
$399,000
187
1231
Linden
3
3
1812
$455,000
272
1601
Lake
3
2
$520,000
122
3702
1st
3
2
1800
$525,000
516
1251
Idlewood
2
2
1468
$575,000
140
118
Windsor
2
1
1617
$585,000
186
680
Atkins
5
3
2545
$625,000
140
358
Riverdale
2
1
1368
$659,000
159
3619
Las Palmas
3
2
1998
$755,000
142
262
Kempton
3
3
2252
$780,000
142
1246
Cordova
3
2
1735
$799,000
216
727
Cavanagh
4
4
2904
$899,000
192
1981
Sherer
5
3
2895
$899,999
186
1861
Calafia
3
3
2341
$965,000
253
1555
Glenmont
3
2
2594
$975,000
196
2203
Hollister
5
4
2733
$989,000
170
1661
Highland
4
4
2710
$1,050,000
365
1832
Greenbriar
3
2
2489
$1,095,000
267
726
Acacia
6
5
2800
$1,095,000
147
2947
Hermosita
4
3
3307
$1,179,900
226
3040
Sparr
5
4
3414
$1,200,000
165
1987
Ashington
4
4
3537
$1,395,000
159
1112
Cortez
4
5
3600
$1,455,500
135
527
Whiting Woods
2
2
1698
$1,495,000
628
3006
Erin Ct
4
3
2859
$1,498,500
142
3030
Chevy Chase
6
5
7500
$1,595,000
245
3314
Barnes
4
6
5450
$1,699,500
224
715
Kenneth
5
6
4000
$1,999,500
385
CLICK HERE for a detailed report including descriptions and pictures.
For whatever it is worth (and it ain’t much), I like 2203 Hollister Terrace because it is really clean, has a great yard and a very nice guest house. I also **heart** 1987 Ashington. I am not a newer house kinda gal, but this house has tons of quality and panache.
As always, if none of these homes float your boat, CLICK HERE for a real time search of the MLS system to find your dream home.
Time for a little number crunching my little Chitlins. NOT my fav thing to do in the wee hours of a dark Monday morning, but I have been distracted by the process of selling lots of homes and I have fallen behind schedule!
Today we are talking about La Crescenta Homes. Activity is intense up here! I just got through a 9 agent multiple offer battle to get a sa-weeeeet home for my client. This home was priced in the upper $500’s and that is the price range of intense activity.
The chart tells all. Number of La Crescenta homes sold is up and number of listings is way down. Less supply+more demand= multiple offer battles. Interestingly, prices remain more or less steady. How can that be?
The multiple offer process today is very different form the ones of 2005. Back then, agents listed the home “per the comps” and buyers were bidding far above the “comps”. Today, agents are pricing low to attract multiple offers, but the buyers are
More savvy about recent sales prices due to the internet
Cautious about paying much above those prices.
Single Family Homes
July
August
Sept
New Listings
19
17
16
Total Listings
65
62
47
Sales Pending
39
47
36
Homes Sold
28
26
31
Expired Listings
5
12
14
Average Days on Market
73
60
74
Average $per Sq.Ft.
$386
$404
$399
Median Selling Price
$564,500
$590,750
$580,000
Average Selling Price
$608,214
$640,250
$598,581
Absorption Rate *
3
2
2
Condos and Townhomes
New Listings
2
3
2
Total Listings
5
6
4
Sales Pending
12
6
6
Homes Sold
5
7
5
Expired Listings
4
0
1
Average Days on Market
125
93
101
Average $per Sq.Ft.
$273
$280
$282
Median Selling Price
$495,000
$450,000
$507,500
Average Selling Price
$455,231
$459,714
$492,700
Absorption Rate *
1
1
1
* The # of months to sell current inventory at present rate of sales
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