Burbank single family homes sold in September(see chart below) reflected an average selling price of $573, 014, up 13% from August 2011 prices. Days on market were down from 71 to 65 days in the same period.

Overall the sweet spot right now continues to be in the $400-$525,000 range where most of the buyers seem to be concentrated.

Next week we will have a host of numbers out, including Housing Starts, Existing Home Sales, Producer Price Index and Consumer Price Index.

Burbank: September 2011

All real estate is local and nothing illustrates that point better than the S&P Case Shiller Home Price Index that came out last week.  It reported that the average home price for March in the 10 city composite was down .6%(non seasonally adjusted) and the 20 city composite was down .2%.  Actually if you read the report, the overall data was not that bad, but obviously showed a downtrend in prices.  18 out of the 20 areas did show a downtrend when you look at the unadjusted three month average.

In case you are curious the S&P Case Shiller Home Price Index tracks monthly changes in home prices in 20 metropolitan areas and comes out monthly.  The report focuses on single family homes and excludes condos and new construction.  Please note that this data was for March, so it does have a two month lag.

Los Angeles County home prices dipped roughly 1.7% for the first quarter of 2011.

With that in mind, let's look at the average home prices for Burbank single family homes over the last 12 months:

Information is Believed To Be Accurate But Not Guaranteed   CRMLS

There are several ways to parse the data.

There was a spike in the fourth quarter of last year and we are down 8% from the spike, however, year over year we went from $538,773 in May 2010 to $557,000 in May of 2011, an increase of 4%.  From January of 2011 to May 2011 we saw an increase of 11% , as we rose from $505,809 to present levels.

Overall, Burbank home prices are showing strength, and there is no doubt that the current amount of short sales and foreclosures will continue to put pressure on prices.......but the picture here is not as dire as in other parts of the country.  I know it's a pipe dream but it would be nice if local media were to comment on our numbers as well as the national numbers.

It's truly amazing to me how much the real estate market has changed over the years. It used to be that buyers looked at homes, decided what they were willing to compromise on, then made an offer.

These days more and more buyers have a very challenging wish list that needs to fit into their budget parameters, and, after an extensive search, when they do find THE PERFECT HOUSE, they will ask me if I think 10-20% below asking will be ok?

Let's assume that if this house is that perfect, other buyers will probably be bidding on it, especially if your budget happens to fall into the sweet spot that most other buyers are looking in.  If the house is priced within the market, then offer full price!

Offering full price will get you in the game, especially if other buyers are trying to low ball on the price.  In addition to giving you the opportunity to have your offer accepted, it gives you the ability to ask for concessions depending on what is discovered during the inspection period.

I do have to get back to how much you love the home.  If it's in the right neighborhood, priced well and fits most of your wish list items, this should be a no brainer.

Another thing to consider is that after losing out on a certain amount of properties, because you are trying to get "a deal", that may provide some incentive to offer the full price as well.

Please note this post was on May 31st, as you can see from the comments.  For some reason it showed up in draft status today.

Ever wonder what grasscycling is?

I didn't, but I did find out that golf courses, school districts, parks, commercial landscapers and city landscape crews are doing it!

All it entails is leaving grass clippings on your lawn.  It's really the best way to use your clippings as grass clippings contain nitrogen, phosphorous and potassium, which are the same nutrients that fertilizers provide.  This approach helps to build your topsoil, reduces water demand and reduces the need for synthetic fertilizers!

When doing this it's recommended:

• That you use a mulching blade on your mower
• Mow your grass high
• Cut when dry
• Water after cutting

It's great for the environment and really helps your lawn!

If you are behind on your mortgage payments, you do have options.   The best advice I can give you is don't delay and get in touch with your lender as quickly as possible.  The more you procrastinate the more likely that you will make your situation worse.

When you call your lender they may try to send you to their collections department, be firm that you need to talk to someone in the loan modification or loan work-out department.  Be persistent and keep calling until you get someone who is willing to talk to you.

Don't wait until the lender initiates the foreclosure process by sending a Notice of Default.  Loan workouts often take months to complete, so it is important to contact the lender before you miss the first payment, having said this I do know of lenders that will ask you to call back after you have missed a payment, don't give up.

Be persistent as lenders don't have to wait until the borrower misses a loan payment.  Do keep in mind that they are swamped with workout requests and past-due borrowers are receiving priority.  If the employee at the bank isn't helpful, call back and you will probably get someone else who may be more helpful.

Make sure you have your finances in order.  The bank's loan-servicing agent will ask you to provide information about your income and expenses such as credit cards, utility and auto payments, and any other revolving debt.  You must prove financial hardship to get a loan workout.

Once you contact your lender, and are speaking to the appropriate person, what are your options? 

TYPES OF LOAN WORKOUTS

•  Revised Repayment Plan:  Borrower is allowed to make up past-due payments over time by adding them on to future payments.

• Forbearance: The lender re-apportions the payout by temporarily forgiving past-due payments to bring the borrower current and then extending the loan's payoff schedule by the number of months in which the payments were missed.

• Loan modification:  The lender reduces the borrower's monthly payments by adjusting the terms of the loan, such as lowering the interest rate.  This is usually a temporary measure for a definite period of time.

• Short Sale:  The lender agrees to let the borrower sell the property for less than the remaining loan balance.  Usually the short amount is forgiven but sometimes the lender may take the short amount and set it aside in a separate obligation such as an unsecured promissory note. 
• Short Refinance:  A special loan modification in which the lender agrees to refinance the loan at a lower rate and reduce the principal.  The federal housing bill approved in July proposes short refinancing to a fixed-rate FHA loan at no more than 90% of the original loan's value.
•  Loan Assumption:  A new borrower assumes the original borrower's loan debt in exchange for the property.  Be advised that while conventional adjustable loans are usually assumable, conventional fixed-rate loans are usually not.  FHA and VA loans are assumable.  Also, be advised that loan assumptions almost always require a "formal" assumption where the borrower must qualify to assume the loan.
• Deed in Lieu of Foreclosure:  The borrower surrenders the property to the lender in exchange for forgiveness of the debt.  (Note: many lenders do not like this option) Often the lender will offer the borrower nominal funds and allow the borrower to live in the property and pay rent until they dispose of the property.  Sometimes investors will offer a lender the same option.  Both this type of transaction and Short Sales are "Pre-Foreclosure" sales.

Other options you have available include:

Talk to a HUD-approved foreclosure intervention specialist.  Their services are free and they understand how to work with lenders.  Another advantage is that they won't let emotions get in the way. 

Consult with the loan officer that originated the loan.  If he/she is still in the business and with the same lender, they may be able to provide assistance in getting the loan adjusted.

Ask an attorney to send a letter to the bank with the request for a loan workout.  Some lenders will pay more attention when the request is on an attorney's stationery.  Another suggestion is to have it delivered by FedEx or DHL.  That will call attention to it.

This is not a good situation for anyone, the borrower or the bank, but being informed and making sure you are persistent will help you!

The term HPOZ refers to Historical Preservation Zone or a historic district.  The idea is to preserve nieghborhoods with very distint architectural elements.  The regulations impose restrictions on what homeowners are allowed to change, including windows, paint, roof tiles etc.  All in order to safeguard the integrity of the architectural designs.

City of Burbank has no HPOZ's, however they do have historic preservation regulations in order to preserve the city's heritage and specific landmarks.

In City of Los Angeles the City Council adopted an ordinance in 1979 to enable the establishment of HPOZ's.  The first one was Angelino Heights in 1983 and there are now 27 HPOZ's throughout the city.

Recognizing the importance of preserving these culturally rich neighborhoods, the City has developed an expansive program of Historic Preservation Overlay Zones (HPOZs), which includes review of proposed exterior alterations and additions to historic properties within designated districts.

While most districts are primarily residential, many have a mix of single-family and multi-family housing, and some include commercial and industrial properties. HPOZs are established and administered by the Los Angeles City Planning Department (in concert with the City Council).

Maybe.  Today the MBA Purchase Application data came out for this last week.  The number rose 1.5%, as compared to the previous week's decline of 3.2%, but so far the month, overall, is pointing to some gains.

The Mortgage Bankers Association compiles how many loan applications are taken out at mortgage lenders.  This indicator is considered to be a leading indicator when it comes to single family home sales due to the fact that people don't apply for a mortgage unless they are feeling pretty good about their employment situation.  New home builders will look to this and other indicators when deciding how many homes to build. 

The data may be pointing to a stronger June or July in terms of closed sales, but let's not overlook the fact that some of these sales will fall through for various reasons.  Still, it's a good indication that things may not be as bleak as the national news media is making it out to be.

The stats I posted yesterday for Burbank real estate sales, suggest a growth of monthly inventory and days on market which point to a market has slowed down from the month of April. 

Stayed tuned and we'll have to look at the full month of May to see if we can get a clear picture of current home sales in Burbank Ca.

Following on the heels of last week's disappointing numbers today new home sales came in at a higher than expected 323,000, jumpiong 7.3% for the month!

On the local front, average sale prices have risen slightly over the last 6 months as shown below:

MonthSale Price, Average

Days on market are trending slightly higher:

MonthDays to Sell, Average

Overall the volume or number of sales is down:

MonthSales, Number of

Data for May is not complete, however we're seeing a slowdown in number of sales as well as a lengthening of days on market.  This may be pointing to a slower summer sales season, but it's a bit early to tell.  We'll keep our eyes on economic and jobs news as well as the lending arena.  Overall the data is pointing to a possible slowdown.

The Rancho Equestrian Neighborhood or "The Rancho" as it's commonly referred to, is bordered by Griffith Park to the south, Victory Blvd. to the east, Olive Avenue to the west and Alameda Ave. to the north.  What makes this community so popular is that it's zoned for horses and it boasts beautiful winding, tree lined streets!

There are roughly 785 single family homes and many of those have stables.  The community is represented by the Burbank Rancho Homeowners, a group formed in 1963 to represent the interests of the residents.

Rancho real estate is very sought after and tends to sell at a premium.  In addition to the equestrian zoning, other amenities include it's adjacency to the Los Angeles Equestrian Center, connection to riding trails in Griffith Park and numerous parks.

It's common to see people on horseback along Riverside Drive, it's main thoroughfare.  This scenic street is lined with Sycamore and Oak trees, some more than 70 years old.  The Rancho, coincidentally, was the home to T.V. star and talking horse "Mr. Ed" along with Ava Gardner, Ronald Reagan and Tab Hunter as well as Bette Davis in the adjoining Glendale Rancho area.

The rancho is very desired for it's parks and open space. This includes Mountain View Park, Johnny Carson Park, Los Angeles' Griffith Park and Equestrain Center, Bette Davis Park (in the adjoining Glendale Rancho) and the neighborhood's Polliwog area, which extends along Disney Studios' animation building is used by local residents to exercise their horses.

It's been a favorite neighborhood of mine for many years and I highly recommend a look if you are exploring Burbank real estate.