Keith's Blog

Realtors not disclosing that a listing is an REO or a Short Pay

2008-07-17T19:18:29Z

Over the past year I have had some serious problems helpiing clients because if inaccurate data in our MLS. I have a meeting on Monday and am hoping that some Activrain feedback might give me some additional ammunition to get my point accross.

When a Realtor takes a listing and they know up front that it is a short sale, how do you disclose that fact?

Marketing remark, agent remarks, terms, or other?

Our MLS has a box under terms for each of those, but no one uses them. So if I have a client that is looking for REOS, I have look manually through the listings. If I have a buyer the does not want a Short Pay, I have to manually weed out those listings.

Another major problem came up in the survey: Only two our of seven Realtors used the correct disclosure terms regarding commission being subject to lender approval. So if you brought the buyer and wrote the offer, you'd be paid the MLS stated commission, but the listing agent would.....?

I'd appreciate your input on this.

How To Make Your Weekly Association Meeting A Success?

2008-07-09T12:38:50Z

I am working with a subcommittee of our association on ways to improve our weekly association meeting, commonly referred to as the "caravan meeting".

Does your association have a weekly meeting? Do you attend? Why or why not?

Our meeting begins with the Pledge of Allieigance

Introduction of affiliate members.

Association business and/or information presented on NAR, CAR, or other RE related topic

New listings pitched, Realtors may provide overhead transparencies of properties. Anyone use digital data projector instead of an overhead?

Add-ons to caravan (that were not included in the new listings caravan report)

Listings pitched that are for sale but not being caravaned that day.

Closing announcements, drawings for business cards of Realtors who showed property

Conclusion.

We are looking for ideas to bring more value to the weekly meeting. How can we help Realtors get more listings sold? Make their time spent each Wednesday morning have more value?

Glendale, CA Real Estate Market Report, May, 200

2008-06-12T10:06:12Z

Glendale has been feeling the effects of the market shift, both ups and downs. Like the other markets I monitor, market activity has been increasing.

Market Index Looking at the last 12 months, the two top months have been May and June 2007. In May 2008 the Market Index reached 0.28, only TWO points below those earlier peaks.

Pending Ratio - In January the ratio was 0.13, jumping 33 points to 0.46. More escrows mean more closed sales next month.

Average Sale Price

Over the past twelve months the Average Sale Price has declined $178,184, from $783,055 in May

of 2007, down 22.5% to $604,871 in May, 2008. Prices appear to be trending downward.

Price Per Square Foot

It is a good idea look at the shift in values from more than one angle. The price per square foot has also changed, from $431.20 in May of 2007 to $364.82 in 2008, a decline of $66.38 or 15.5%.

Conclusions

Although rising Pending sales points to less inventory, tightened lending critieria is limiting the pool of buyers, so on balance it appears prices will continue to fall. The question is how far?

Fear of purchasing a home that very well may be worth less than they paid a few months ago is causing buyers to make offers that absorb some of that risk. Sellers will still receive full market value; the challenge for sellers is that the market values have dropped and with foreclosure and short sales dominating the market, this decline will continue for the foreseeable future.

Question? Contact me for help analyzing your needs.

Burbank, CA Real Estate Market Report, May, 2008

2008-06-10T23:19:59Z

Burbank, like other local markets, is seeing a very busy spring selling season. Buyers may be waiting on the sidelines, however there is a lot to think about, not just dream about.

Market Index

In most markets the last peak was in May and June of 2007. Burbank's market index in May of 2008 reached 0.31, surpassing the previous peak of 0.30.

Pending Ratio

Homes going into escrow mean homes closing escrow, which in most cases means reduced inventory. When inventory declines, price go up, right? So for the last few months the pending ratio has been I increasing: February 0.55. March 0.68, April 0.49, and May 0.70. The previous high was May of .07 with 0.58, so that tells us that the market is heating up. Don't get me wrong, we have a long way to go.

Average Sales Price

In May of 2007 the average sales price was $655,826, which declined $(88,712) to $567,114 or a drop of -13.53%. I like to compare the price per square foot to verify the shifts in value.

Burbank's price per square foot in May of 2007 was $438.39, which declined -$55.72, or a drop of -12.71%, so it is fair to say that values have dropped about 13%. Bear in mind that prices have stopped declining, primarily because the listing inventory is at a low of 300 listings. The last time we hit that mark was May of 2007 with 301 listings.

So, what does this all mean to you? Inventory is declining, pending sales are up, so unless a large wave of new listings hits the market (which may occur - but it may not) it appears that prices are on their way back up.

If I were a buyer, I would buy now (for the right price and property). If I were a seller, get a top agent who knows who to help you get every dime out your home.

Data provided by SRAR MLS is not guaranteed, has not been verified, and is subject to change.

Burbank, CA Real Estate Market Report April 2008

2008-05-16T17:43:24Z

All markets go through cycles, and Burbank is no exception. For the last two years we knew that Burbank was experiencing a buyer's market and the question has always been "when is it going to hit bottom?". My answer has always been the same, that we will know until two or three months AFTER the market is headed back up.

Despite what you may read or see in the media, things might be changing. First, the Market Index for the month of April hit 0.24, the highest since the mortgage meltdown last August. There is a rule of thumb that you need three consecutive periods to plot a trend, and Burbank seems to qualify. We are seeing multiple offers on well-priced properties, escrows opening in two to four weeks.

The other big question I am asked is what is going to happen to home prices. Buyers want them to return to 1992 levels, Sellers feel as if they are being robbed at gunpoint as they have seen their equity evaporate.

Using average sale prices it we have seen a shift from $665,795 in 2007 to $557,468, for a net change of -$108,327 or a decline of 16.5%. Due to the drop in entry level home sales, we need to confirm this change by looking at price per square foot.

The price per square foot has shown a similar trend, decreasing from $461 per square foot in April 2007 to $359 in 2008. The average homes size only increased 112 square feet, reflecting the decline in the sales of smaller, entry-level homes.

Volume is increasing, if I were buying I'd be looking very hard at purchasing a property sooner than later.

For help buying or selling contact me Keith@BeautifulBurbankHomes.com or 1-888-284-2056 toll free.

Data from ITech MLS has not been verified, is not guaranteed, and is subject to change.

Glendale, CA Real Estate Market Report, April, 2008

2008-05-12T09:59:49Z

Glendale, like most markets in Southern California, has seen a shift from a seller's market to a strong buyer's market. Fueled by the mortgage meltdown in August and September of 2007, the number of buyers qualified to purchase homes has been severely decreased due to more restrictive lending guidelines. Homeowners who purchased property with Adjustable Rate Mortgages (ARMs) found themselves facing adjusting interest rates that in some cases forced them to either sell their home or even face foreclosure. Many homes are on the market not because the owners wanted to sell, but because they had to sell. The shrinking pool of buyers, coupled with the increase in inventory, has caused a drop in home prices. For many home buyers this is the first opportunity they will had to purchase an affordable home.

The April 2008 Regional Market Index is a summary index combining new listings and escrows, along with sold properties and days on market. The cumulative result is a market index. It is important to note that after six months of a static market, the market index has shifted upward, perhaps indicating a change in the downward trend.

The next graph shows the list price versus sold prices for homes. Since April, 2008, the average sale price has dropped 4.7%, quite big difference from the regional figures of 20% or more. This is primarily due to the lack of new construction in Glendale. With very little new home inventory, there is simply not as great a shift in overall inventory. The shift in lending guidelines has drastically reduced activity in the first time home buyer market, primarily town homes and condominiums, so with fewer purchases and sales in those price points the average price is skewed upward.

To provide another range of value the third graph shows the change in the price per square foot of homes sold. The price per square foot has declined 11% since last April; also the average square footage has increased 7.6%, again reflecting a smaller amount of homes with smaller square footage (condos and town homes) that are in the sales mix.

In summary the reports indicate that although overall property prices have declined about 10-14%, due to Glendale's many positive attributes such as excellent schools, and outstanding city services such as our police and fire departments, and quality medical facilities Glendale is still a preferred place to live. With the opening of the Americana at Brand, along with numerous other developments, including the expansion of DreamWorks and Walt Disney, for the foreseeable future Glendale will continue to be somewhat isolated from the drastic swings in home values that other outlying communities are seeing.

Note: Data is from iTech MLS, has not been verified, is not guaranteed, and is subject to change.

Burbank, CA Real Estate Market Report, December 2007

2008-01-26T21:20:54Z

August (prior to the mortgage industry shift), and December, we see a curious trend. From 0.23, then 0.17 for Septembe,r October, and November, then back up in December to 0.22.. Now, December, 2006 had a market index of 0.53, so in numerical terms the market dropped more than other markets. For example, last December Glendale was 0.38. So it seems that Burbank was actually doing better than some local markets last December, and not is actually more in line with them..

Burbank Market Summary
December, 2007	August	September	October	November	December	Variance	Change
New Active Listings	132	125	132	132	62	-70	-53.0%
Pending in the month	36	21	36	36	35	-1	-2.8%
Pending Ratio	27%	17%	27%	27%	56%	29%	107.0%
Inventory at month end	358	383	412	412	334	-24	-6.7%
Sold listings	48	46	33	33	37	-11	-22.9%
Average Days On Market	58	59	62	54	56	-2	-3.4%
Market Index	0.23	0.17	0.17	0.17	0.22	-0.02	-8.1%

Data is from iTech MLS. Data is deemed reliable, has not been verified, and is subject to change.

One of the main reasons that Burbank's market index shifted downward is the relatively large number of new listings in November, 132 in 2007 compared to 64 in 2006, then in December 62 in 2007, versus 44 in 2006. Why the shift? When a property is re-listed, for statistical purposes it shows up as a "new listing", even if the listing is re-newed by the same Realtor. The bottom line is that there are more listings, and more inventory. Last December total inventory was 233, in 2007 it was 334. This indicates to me that people that have to sell are listing and trying to get their homes sold.

Even considering the shift in the market, along with the significant changes occurring in the mortgage industry, homes are still selling. If you are a buyer, and are waiting for prices to drop, this may well be the time to start getting serious.

F\or sellers know that buyers are looking for VALUE. Properties that show the best value sell first, leaving the rest of the inventory to sit on the market. Homes that are properly prepared, marketed, and priced, will still sell in under a month. The longer a property sits on the market, the greater the gap between the asking price and the sales price.

For a no-obligation Highest Price Analysis just call 1-888-284-2056 or email Keith@GlencrestTeam.com

La Canada Flintridge, CA Real Estatet Market Report, December 2007

2008-01-26T21:18:54Z

From August (prior to the mortgage industry shift), and December, we see a curious trend. From 0.56 in August (second only to San Marino) , then 0.44 for September , October 0.23, and November 0.18, December 0.12.. Now, December, 2006 had a market index of 0.46. La Canada seems to be headed for a soft landing. Will it go up next month? What will spring market do? In December of 2006 there were 6 new listings added.with a total inventory of 41. In 2007 we saw 14 new listings added (over twice as many), and the inventory climb to 67 listings. That is a 63% increase in listing inventory Not a large number of new listings, and a proportional number being sold, yielding a pretty much flat market index for the past few months..

La Canada Market Summary
December, 2007	August	September	October	November	December	Variance	Change
Active Listings	17	32	20	18	14	-3	-17.6%
Pending in the month	13	18	6	3	2	-11	-84.6%
Pending Ratio	76%	56%	30%	17%	14%	-0.62	-81.3%
Inventory at month end	80	99	77	74	67	-13	-16.3%
Sold listings	32	26	12	10	6	-26	-81.3%
Average Days On Market	68	50	105	73	69	1	1.5%
Market Index	0.56	0.44	0.23	0.18	0.12	-0.44	-78.8%

Data is from iTech MLS. Data is deemed reliable, has not been verified, and is subject to change.

What is important about the relatively constant figures? Even considering the shift in the market, along with the significant changes occurring in the mortgage industry, homes are still selling. If you are a buyer, and are waiting for prices to drop, this may well be the time to start getting serious.

For a no-obligation Highest Price Analysis just call 1-888-284-2056 or email Keith@GlencrestTeam.com.

Glendale, CA Real Estate Market Report, Decemer, 2007

2008-01-26T19:57:42Z

The key to understanding the market is looking at the market trends. We use a Market Index to put the market into a number that we can compare and track trends. Above 1.20 is a seller's market, between 1.20 and 0.80 is a neutral market, and below 0.80 is a buyer's market. So looking at Glendale's Market Index from August (prior to the mortgage industry shift), and December, we see a curious trend. From 0.31 in August, down to 0.16 in November, up to 0.25 in December. Now, December, 2006 had a market index of 0.38, so in numerical terms the market shifted downward, but not perhaps as much as the press would have us believe.

Glendale Market Summary
December, 2007	August	September	October	November	December	Variance	Change
New Active Listings For June	147	149	139	81	49	-98	-66.7%
Pending in the month	75	53	53	25	35	-40	-53.3%
Pending Ratio	51%	36%	38%	31%	71%	20%	40.0%
Total Active Listings	485	442	442	463	354	-131	-27.0%
Sold listings	76	62	62	47	54	-22	-28.9%
Average Days On Market	43	43	43	76	93	50	116.3%
Market Index	0.31	0.26	0.26	0.16	0.25	-0.06	-19.2%

Data is from iTech MLS. Data is deemed reliable, has not been verified, and is subject to change.

F\or sellers know that buyers are looking for VALUE. Properties that show the best value

For a complete area report just email me Keith@BeautifulGlendaleHomes.com or 1-888-284-2056 toll free.

La Crescenta Real Estate Market Report December, 2007

2008-01-26T19:53:18Z

August (prior to the mortgage industry shift), and December, we see a curious trend. From 0.37, then 0.14 for September , October 0.18, and November 0.16, December 0.16.. Now, December, 2006 had a market index of 0.39. Compare this to Glendale was 0.38, and Burbank 0.56. So it appears that in the Crescenta Valley everyone worked in concert to bring about an orderly shift in the market. Not a large number of new listings, and a proportional number being sold, yielding a pretty much flat market index for the past few months..

La Crescenta Market Summary
December, 2007	August	September	October	November	December	Variance	Change
Active Listings	51	27	45	45	9	-42	-82.4%
Pending in the month	21	6	17	9	8	-13	-61.9%
Pending Ratio	41%	22%	38%	20%	89%	0.48	115.9%
Inventory at month end	178	158	148	162	118	-60	-33.7%
Sold listings	45	16	10	17	11	-34	-75.6%
Average Days On Market	63	54	93	102	60	-3	-4.8%
Market Index	0.37	0.14	0.18	0.16	0.16	-0.21	-56.6%

Data is from iTech MLS. Data is deemed reliable, has not been verified, and is subject to change.

For a no-obligation Highest Price Analysis just call 1-888-284-2056 or email Keith@GlencrestTeam.com.

How The Foreclosure Process Works – Hanging On To Your Home - Part Four

2008-01-14T13:25:55Z

After the recent developments with Countrywide Home Loans I though readers might be interested in an update to my first three posts on "Hanging On To Your Home".

Although in my particular market we have a very small number of foreclosures and short sales (less than 4% of the current listing inventory, assuming that the data inputted is accurate. which may or may not be the case), the ripple effect is significant.

Disclaimer - the information here may or may not relate specifically to YOUR situation. Seek competent legal and professional real estate advice if you have concerns regarding your home.

If you are having trouble making your mortgage payments, your lender will want to know why. In some cases the "why" is very important. Leading reasons are illness, loss of employment, or change in family status (marriage, divorce, death of a spouse). If you become late on a payment, then the process starts.

You can review Part I of my posts for the details on the foreclosure process, so here are some updates.

First, most lenders do not focus on short sales and foreclosures. They make money by providing loans to consumers and re-selling the packaged loans to investors and wholesale lenders. As the market has shifted a typical wholesaler, like Deutche Bank or Bank Of New York do not have a large staff of people to handle lots of calls from people who are having problems with their mortgages. As more mortgage holders call in with problems, the people working in the "Loss Mitigation" department or the "Home Retention Division" have more and more customers to handle.

I was attending a memorial service for a friend's mother and at the lunch met a lady who worked in the home retention division for Countrywide. She said that the average caseload for each manager was 200 files. Why is this important to know? As the market continues to shift, there are people that get behind in their mortgage payment, and what they need to do is either a)sell their home in a short sale, b) refinance (although once you have a late payment that is probably not an option), c) let the lender foreclose.

In some areas when one home is foreclosed, or sold in a short sale, that becomes the new comparable SOLD listing, so that price drags down the value of YOUR home and your neighbors. Because the managers are so overwhelmed it takes weeks to get a response, so it is possible that if you had received an answer EARLIER you might have been able to re-fi, but because the getting a response takes so long, by the time you receive it, your home has dropped in value due to the other recent sales.

So if the mortgage holder will not talk with you until you are late with a payment, it may very well be that due to the slow response time you initially COULD have worked out a short sale, now you are officially in foreclosure. Remember that the mortgage holder does not want to foreclose. Their preference is: a) Help you so you can stay in that loan and that home b) help you sell the home as a short sale, c) and lastly foreclose.

So, what do you do if you see the writing on the wall and you know that you are going to reach a point where you are going to be in trouble financially?

After you have a late or missed payment, call the mortgage holder and see if you can discuss re-structuring your loan. If they are not receptive then ask for the short sale package. I recommend discussing your concerns with a Realtor as soon as possible so you can figure out the likely market value of your home. Then you can compute how "short" the sale might be. Then the Realtor can work with the lender. The Realtor is not attached to the home the way you might be, so let them do the negotiating

One additional issue is that some lenders will not talk about specifics until they have an offer on the table. Which means when an offer is made, then submitted to the lender, EVERYTHING is negotiable. The lender wants EVERYONE to suffer equally (that means the owner, the Realtors, title, etc.).

La Crescenta, CA Real Estate Market Report November 2007

2007-12-05T23:51:59Z

The leaves have fallen, with the real estate market fluttering in the winter winds of the Foothills. As most of you are preparing for Christmas, Realtors® are busy helping buyers and sellers figure out what to do next.

The Glencrest Team is working with buyers and sellers and we are busier now than we were during peak selling season. Why is that? Sellers that need to sell need to figure out the best way to squeeze the most out of their sale, and buyers are trying to determine when the rock bottom price is really rock bottom.

Going by the numbers, when the Market Index is above 1.20 we have a seller's market, between 1.20 and 0.80 a neutral market, and below 0.80 a buyer's market. Last November La Crescenta was had a Market Index of 0.37, in July 0.031, and in November 2007 a Market Index of 0.16. Have no fear, you will have plenty of time to become accustomed to this market because forecasters predict two to three years of the same type. The other good news is that this is normal. In the United States the most common market is a buyer's market.

For buyers, the question is,"When are prices coming down?". My response is: they have! In July the median price was $668,000, in November $642,000, a $25,000 drop. Not huge, but remember, this is an average. That means there are some people that have to sell, and they need to price their home right.

For sellers, the good news is that homes are selling. The bad news is that you will have to be realistic. Consistently two things happen. Homes that sell within the first 30 days sell closest to list price. Homes that sit on the market sell for a lot less. So price it right, hire a Realtor® who can show you to showcase the value in your home.

Buyers and their agents are looking for good deals. Help them find one!

For more information, call 1-888 284-2056, or visit http://www.glencrestteam.com/.

Merry Christmas!

La Crescenta Market Summary -November 2007
	July	August	September	October	November	Variance	Change
Active Listings	51	51	27	45	45	-6	-11.8%
Pending in the month	24	21	6	17	9	-15	-62.5%
Pending Ratio	0.47	0.41	0.22	0.38	0.2	-0.27	-57.4%
Inventory at month end	167	178	158	148	162	-5	-3.0%
Sold listings	28	45	16	10	17	-11	-39.3%
Average Days On Market	60	63	54	93	102	42	70.0%
Market Index	0.31	0.37	0.14	0.18	0.16	-0.15	-48.4%

Data from the iTech MLS is not guaranteed, has not been verified, and is subject to change.

Glendale, CA Real Estate Market Report, November 2007

2007-12-05T23:28:45Z

As Christmas comes closer, most of us are focused on what Santa will bring down the chimney. Realtors are wondering what will happen in the 2008 spring market. I wish Santa would bring me a new crystal ball!

An index of above 1.20 indicates a seller's market, between 1.20 and 0.80 a neutral market, and below 0.80 buyer's market. The market index back in November, 2006, was 0.30. This November the market index is 0.16. A decline of almost half. Last November I warned sellers that if you need to sell, do it know. This November I am saying the same thing and I'll tell you why. If the inventory we have now remains, prices may drop further. They might level off, or they might not.

For buyers there is some good news. The median price in July was $660,000, in November $650,000. That is not a huge drop overall (remember this is a statistic), however there are some people that have to sell, and they have to price their home right to get it sold. That is where you can find the good deals.

According to most industry sources, we can expect this market to continue for the next two to three years. Remember that the NORMAL market for the United States is a buyer's market, so that is good news.

If you have questions, I can be reached at 1-888 284-2056 or visit our website, www.glencrestteam.com

Glendale Market Summary - November 2007
	July	August	September	October	November	Variance
New Active Listings For June	152	147	149	139	81	-71
Pending in the month	55	75	53	53	25	-30
Pending Ratio	0.39	0.51	0.38	0.38	0.31	-0.08
Total Active Listings	456	485	442	442	463	7
Sold listings	67	76	62	62	47	-20
Average Days On Market	57	43	43	43	76	19
Market Index	0.27	0.26	0.26	0.26	0.16	-0.11

Data is from the iTech MLS has not been verified, is not guaranteed, and is subject to change.

Burbank, CA Real Estate Market Report, November, 2007

2007-12-05T23:08:12Z

As we approach the waning weeks of 2007, we can look back and begin to take stock of what was, what is, and what will be. In just five months we've seen market index drop from 0.26, to 0.17, a decline of 0.09 points. Last November Burbank was at 0.50. Recall that a seller's market is above 1.20, a neutral market is between 1.20 and 0.80, so Burbank is sliding deeper into a buyer's market.

The big question buyers have is, "When are the prices going to drop to where I can afford a home?"

Great question. The average price in November, 2006 was $628,727 and the average price in 2007 was $641,025. Remember that the average is a statistic comprised of the homes that sold.
For example, in July of 2007 the average price was $674,922, so the November 2007 figure of $641,0252 represents an over $33,000 drop. So there are good deals out there, you just need to look for them.

It is interesting that if one compares the asking price, to the sold price, the gap is spreading. From July to November owners are listing their homes are prices that they expect, but buyers are getting lower offers accepted. The bottom line is the market has shifted and buyers should be out buying now. Why? Because we will not know for two to four months when the trend changes, so satisfy yourself that you have a good deal, then buy it.

Sellers, the outlook is not bleak. If you don't have to sell now, don't. If you do, hire a sharp listing agent to help expose the features of your property so buyers will see the value. Listings that sell in the first 30 days consistently sell closest to list price. The longer the property sits, the bigger the gap between list price and sale price, therefore price it right the first time.

If you have questions, visit http://www.glencrestteam.com/ or call me 1-888 284-2056.

Burbank Market Summary - November 2007
	July	August	September	October	November	Variance
New Active Listings	118	132	125	132	132	14
Pending in the month	43	36	21	36	36	-7
Pending Ratio	0.36	0.27	0.17	0.27	0.27	-0.09
Inventory at month end	363	358	383	412	412	49
Sold listings	53	48	46	33	33	-20
Average Days On Market	42	58	59	62	54	12
Market Index	0.26	0.29	0.17	0.17	0.17	-0.09

Data is from SCOAL MLS has not been verified, is not guaranteed, and is subject to change.

La Crescenta, CA Real Estate Market Report, October, 2007

2007-11-18T20:17:46Z

The leaves are falling from my maple tree, mirroring the sales activity in La Crescenta. If you are a buyer, pay attention...actually, if you are a seller, you should too!

Back in June, at the peak of the spring sales season, we had a market index of 0.31 with 155 active listings, selling 25. Fast forward to October, a market index of 0.18, 148 listings active, and 10 sold. Not a huge change just looking those numbers, but all put together, an index of 0.18 means buyers are really in control.

Although not the end of the world as we know (according to some media outlets), the gradual accumulation of listing inventory coupled with the increasingly restrictive lending requirement has created a perfect storm. As inventory levels increase, the number of qualified buyers has decreased, so when supply goes up, demand goes down, what happen to prices?

What would you guess the median price is if October our median price was $657,500And, more importantly, how accurate a factor is average price? As the number of sales declines, there is some speculation that average price from a small number of sales may not accurately reflect changing home values. The median price of October 2007 is $645,000. That's a $12,500 drop. That's darn small, based on the reports.

So what to do? Will the market go down further? My crystal ball is a little foggy. It might. It might not. So for buyers, if you have to buy, negotiate the best price and then buy if you believe you have the best deal you can negotiate. Sellers, this is a buyer's market. Buyers are looking for value, so your REALTOR® should help you prepare your home to show its value to buyers.

La Crescenta Market Summary - October 2007
	June	July	August	September	October	Variance	Change
Active Listings	51	47	45	51	45	-6	-11.8%
Pending in the month	23	16	17	21	17	-6	-26.1%
Pending Ratio	0.45	0.34	0.38	0.41	0.38	-0.07	-15.6%
Inventory at month end	155	169	148	167	148	-7	-4.5%
Sold listings	25	36	10	28	10	-15	-60.0%
Average Days On Market	48	46	93	60	93	45	93.8%
Market Index	0.31	0.31	0.18	0.31	0.18	-0.13	-41.9%

Data is deemed reliable, is not guaranteed, and has not been verified and is subject to change. iTech MLS.

Burbank, CA Real Estate Market Report, October, 2007

2007-11-18T20:03:24Z

The leaves are falling from my maple tree, mirroring the sales activity in Burbank. If you are a buyer, pay attention...actually, if you are a seller, you should too!

Back in June, at the peak of the spring sales season, we had a market index of 0.31 with 350 active listings, selling 68. Fast forward to October, a market index of 0.17, 496 listings active, and 33 sold. Not a huge change just looking those numbers, but all put together, an index of 0.17 means buyers are really in control.

What would you guess the average price is if October our median price was $651,057? And, more importantly, how accurate a factor is average price? As the number of sales declines, there is some speculation that average price from a small number of sales may not accurately reflect changing home values. The median price of October 2007 is $614,023, that's a $36,000 drop. Ouch!

Note that as the number of listings becomes smaller, averages are less accurate. Another interesting number is 18. Eighteen is the number of short sale/REOs on the market. Probably not enough to sway the market.

Burbank Market Summary - October 2007
	June	July	August	September	October	Variance	Change
New Active Listings	131	118	132	125	132	1	0.8%
Pending in the month	41	43	36	21	36	-5	-12.2%
Pending Ratio	0.31	0.36	0.27	0.17	0.27	-0.04	-12.9%
Inventory at month end	350	363	412	383	412	62	17.7%
Sold listings	68	53	33	46	33	-35	-51.5%
Average Days On Market	38	42	62	59	62	24	63.2%
Market Index	0.31	0.26	0.17	0.17	0.17	-0.14	-45.2%

Data is deemed accurate, has not been verified, and is subject to change. SOCAL MLS.

Market Report, Glendale, CA October, 2007

2007-11-18T19:37:45Z

The leaves are falling from my maple tree, mirroring the sales activity in Glendale. If you are a buyer, pay attention...actually, if you are a seller, you should too!

Back in June, at the peak of the spring sales season, we had a market index of 0.26 with 442 active listings, selling 62. Fast forward to October, a market index of 0.15, 496 listings active, and 45 sold. Not a huge change just looking those numbers, but all put together, an index of 0.15 means buyers are really in control.

What would you guess the median price is if October our median price was $670,000? And, more importantly, how accurate a factor is median price? As the number of sales declines, there is some speculation that median price from a small number of sales may not accurately reflect changing home values. The median price of October 2007 is $546,250, that's a $134,000 drop. Ouch!

Here is another way to look at it. The average home sold in October is a three bed, two bath. The AVERAGE selling price in 2006 was $735,679, in 2007 it was $601,317, roughly the same change, about $134,000

Glendale Market Summary - October 2007
	June	July	August	September	October	Variance	Change
New Active Listings For June	149	152	141	139	141	-8	-5.4%
Pending in the month	53	55	28	53	28	-25	-47.2%
Pending Ratio	0.38	0.39	0.20	0.38	0.20	-0.18	-47.4%
Total Active Listings	442	456	496	490	496	54	12.2%
Sold listings	62	67	45	39	45	-17	-27.4%
Average Days On Market	43	57	42	59	59	16	37.2%
Market Index	0.26	0.27	0.12	0.26	0.15	-0.11	-42.3%

Data is deemed reliable, however is not guaranteed, has not been verified, and is subject to change. Itech MLS>

Glendale, CA Real Estate Market Report, August, 2007

2007-09-24T11:13:26Z

I monitor 25 local areas for real estate trends, and each area has it's own characteristics. For this month's report I would like to high some significant differences between some of the nearby areas, but first, let's look Glendale's statistics.

Overall there are many positive indicators that point to an improving market.

New Active Listings have remained steady, even as we compare to the spring selling season, normally the most active time of year, 145 in April versus 147 in August.

New Pending Sales has made a great improvement, and in conjunction with the Pending Ratio, compare April's 0.36 to August's 0.51. That is a 44% improvement in the Pending Ratio!

Due to declining sales, inventory has increased to it's highest level, 485 active listings. If I were an investor or a buyer, I might think to myself...maybe we are at the bottom of the market. Why?

Sold listings, have increased slightly, average days on market (DOM) is only three days different.

Glendale Market Summary - August 2007
	April	May	June	July	August	Variance	Change
New Active Listings For June	145	158	149	152	147	2	1.4%
Pending in the month	52	45	53	55	75	23	44.2%
Pending Ratio	0.36	0.28	0.38	0.39	0.51	0.15	41.7%
Total Active Listings	369	442	442	456	485	116	31.4%
Sold listings	68	76	62	67	76	8	1.5%
Average Days On Market	68	46	43	57	71	3	4.7%
Market Index	0.33	0.60	0.26	0.27	0.41	0.08	23.8%

Data is from iTech MLS. Data is deemed reliable, has not been verified, and is subject to change.

The market index tells the tale. From 0.33 in April, to a low in July of 0.27, up in August to 0.41. An index above 1.20 indicates a seller's market, between 1.20 and 0.80 a "balanced market", and below 0.80 a buyer's market...and we are REALLY IN A BUYER'S MARKET! In July we had 6.8 months worth of inventory, IN August 6.3, so again, these may be preliminary signs of market shift.

Compared to some nearby markets, Glendale's 0.41 market index, versus Burbank 0.23, and La Crescenta's 0.31, it appears that Glendale's market is headed in the right direction and leading the pack.

I should note that the impact of the unprecedented changes in the mortgage industry may have some unusual effects on September numbers. Buyers that were qualified and approved for loans, even after signing loan docs...and recording, had loans not fund. So my disclaimer is that were it not for the mortgage markets, I would advise buyers to consider the possibility that this is really the best time to buy. The main difficulty is that we will not know if this is the bottom until we are already headed up.

For sellers we are still seeing properly priced and prepared homes sell in less than three - four weeks. This market is not for the faint of heart, so do not waste your time "testing the market". However, the good news is if you have to sell, I suggest doing it sooner than later. We do not know the future, only the present market. The median price has not changed appreciably, so we just need to realize that we are in a "normal market".

For a complete area report just email me Keith@BeautifulGlendaleHomes.com or 1-888-284-2056 toll free.