Burbank Real Estate Blog

Burbank Airport Curfew is Denied by FAA

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Fri, 06 Nov 2009 22:59:54 -0600

The FAA (Federal Aviation Administration) ruled this week against the Burbank-Glendale-Pasadena (Bob Hope Airport) Authority's application for a mandatory curfew from 10pm-6:59am. The news released this week, for those of you, like me, who have been following this issue for many years is disheartening, but not surprising.

To give you some background, Burbank, Los Angeles and Glendale residents have been advocating for this curfew since the 1970's. There is currently a voluntary curfew in place, but residents would like to make it mandatory as they see a risk of increased air traffic in the future.

On the good news front, this was the first application ever to make it through the entire FAA review process. The problem is that if the FAA rules for this curfew, then other smaller airports such as Van Nuys and Ontario Airports would be able to ask for the same treatment. The reason for the denial is that the FAA said the curfew would hinder business in the air and on the ground.

The next step appears to be litigation, which is supported by our local city officials and Congressman Brad Sherman. The request for a mandatory curfew would exclude medical, emergency and a number of cargo flights.

There are approximately 180,000 residents in Burbank, Glendale and Los Angeles who live under the flight paths and the area homeowners are committed to getting this curfew in order to maintain their quality of life.

Beautiful Chatsworth Lake Manor home for sale!

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Fri, 06 Nov 2009 21:26:56 -0600

Links

My Site

Photo Gallery

Backyard

Living Room

Dining Area

Master Suite

Master Bath

Bedroom

Bathroom

Front of House

Description

Beautiful Chatsworth Lake Manor home featuring formal entry, remodeled kitchen with granite countertops, large master suite with two walk in closets, private yard. Regular sale, don't miss this gorgeous home!

Features

Bedrooms:	3
Bathrooms:	3
Parking Spaces:	2
Year Built:	1990
Lot Size:	4000
Garage Size:	2 Car
School District:	Los Angeles
Square Footage:	2099
Agent Name:	Ana Connell
Broker:	Keller Williams Realty-World Media Center
MLS #:	F1824930

Location

9230 Lakeview Terrace Chatsworth CA 91311

vFlyer Id: 2925482

How to keep that pesky home inspector at bay.....

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Sun, 18 Oct 2009 11:24:29 -0500

I just found this post about home inspections and found lots of valuable information for sellers. If you are thinking about selling your home you usually declutter, spruce up the front and back yards, but you don't think about the things that a home inspector will be looking for.

Buyers will ask for repair money on many of these items.

These great tips that will save you money when you are in escrow.

Via Russel Ray, San Diego home inspector (Russel Ray, Property Consultant):

Since home sales seem to be picking up around the nation, following are some helpful hints if you're a Seller, and some helpful hints for your Seller if you're the agent.

This list is San Diego specific, so modify as necessary for your area. Don't do something that you're not comfortable doing; hire a professional do to it.

OUTSIDE

_____Check that doorbells work.

_____Check for missing roof shingles.

_____Check for loose/damaged/clogged gutters/downspouts.

_____Check attic ventilation and condition of vent screens.

_____Check to see if there is standing water, especially near the foundation, after irrigation or rainfall.

_____Check for cracks in foundation walls.

_____Check structure (including attic and foundation crawl space) for pests (termites, wasps, spiders, nests, etc.).

_____Check exterior weatherproofing (stain, paint, etc.).

_____Check for any wood in direct contact with soil, including fences and gates.

_____Check for loose wiring (electric, cable, phone) and poor wire terminations.

_____Check for holes and damage to siding, doors, windows, and trim so that structure is weatherproof.

_____Check condition of fences or gates (leaning, damaged).

_____Check that any exterior outlets are weatherproofed and not in permanent use for any landscape lighting.

_____Check condition of landscape components (retaining walls, landscaper timbers, etc.).

_____Check for overgrown vegetation, especially in walkways; growing on siding, roof, chimney, fences, or in gutters; or too close to utility lines.

_____Check for trip hazards in walkways, driveways, and stairways (deterioration, vegetation, etc.)

_____Check for loose, missing, or rusted guardrails and handrails at stairways, decks, balconies, and porches.

_____Check that landscape lighting/irrigation systems work, and that sprinklers don't spray on fences or buildings.

_____Check condition of pool and spa, and related equipment and utilities.

_____Check that ponds, fountains, and waterfalls, and related utilities, work properly and are protected from children.

PLUMBING

_____Check that seismic straps are on the water heater.

_____Check that stoppers work in bathtubs and sinks.

_____Check for clogged drains.

_____Check that toilet seat bolts and screws are tight.

_____Check that faucets don't drip or leak around the base.

_____Check stop action on faucet handles.

_____Check condition of caulk/grout in bathtubs/showers.

_____Check insulation on water pipes in foundation crawl space and attic.

_____Check for safe and easy access to water shutoff valves (street curb, water heater, sinks, toilets, etc.).

_____Check for safe and easy access to any gas shutoff valves (meter, furnace, water heater, etc.).

_____Check for loose toilets and loose toilet tanks.

ELECTRICAL

_____Check for safe and easy access to electric panels and main circuit breaker.

_____Check that ceiling fans work on all speeds.

_____Check for burned out lights, including ceiling fans.

_____Check for damaged or loose outlets and light switches, including covers for outlets and switches.

_____Check for unplugged appliances, and unplug anything that is unnecessary to facilitate outlet testing by the Buyer's property inspector.

_____Remove extension cords and outlet multipliers.

_____Check that outlets work.

_____Check for outdated two-prong outlets and upgrade them to three-prong outlets.

_____Check for properly working GFCI outlets in kitchen, bathrooms, garage, and exterior.

_____Check that exhaust fans work in kitchen, bathrooms, and laundry area.

_____Check that any electrical junction boxes have covers.

INSIDE

_____Check condition of towel holders and bathroom tissue holders.

_____Check condition of bathtubs, showers, and shower doors, and replace old shower curtains.

_____Check that safety seal shows on floor-to-ceiling windows and glass doors.

_____Check that carbon monoxide alarms work.

_____Check that smoke alarms work, and that they are present on each floor of multi-story houses.

_____Check for loose kitchen and bathroom countertops.

_____Check ease of operation for doors (including closet doors and cabinet doors), drawers, and windows, including windows nailed or painted shut.

_____Check for missing, loose, or damaged hardware on doors (including closet doors and cabinet doors), drawers (stops and guides), and windows.

_____Check for loose glass panes in windows and doors, as well as glass with holes or cracks in them.

_____Check that latches/locks work on doors (including closet doors and cabinet doors), drawers, and windows.

_____Check for damage to screen windows.

_____Remove excessive storage (closets, attic, garage).

_____Check for damage to walls and ceilings that need to be patched and painted.

_____Check for moisture stains on ceilings and walls; around doors and windows; near sinks, toilets, bathtubs, and showers; and near the dishwasher.

_____Check for loose, missing, or damaged guardrails and handrails in stairways.

_____Check for loose, broken or missing baseboards and door and window moldings.

_____Check for cracked tiles or deteriorated grouting in kitchen and bathrooms.

_____Check that kitchen appliances work.

_____Check that an anti-tip device is installed on the range.

MISCELLANEOUS

_____Let dogs and cats vacation for a few hours with a family member, friend, or at a pet spa. Check that other pets (birds, snakes, rodents, etc.) are caged.

_____Certain items should be inspected annually due to their inherently dangerous nature. These include gas-using appliances, pool/spa equipment, roof, and the fireplace and chimney. If they have not been inspected within the last 12 months, having it done now can make escrow go more smoothly.

_____Check that filters are in place and clean (kitchen range hood, heating/cooling, bathroom fans, etc.)

_____Check for soot, cobwebs, and wildlife in the fireplace and lower areas of the chimney.

_____The Chimney Safety Institute of America (CSIA) recommends that the fireplace and chimney undergo a Level II inspection any time real estate ownership is transferred, and I recommend having that done prior to the Buyer's inspection.

_____Check that the fireplace damper opens/closes easily.

_____Check for manufacturer installation guides, operating instructions, or user guides that you can provide to the buyer, especially for kitchen appliances; heating and cooling system; water heater; security, irrigation, fire suppression, central cleaning, and water modification systems; water well; and septic system.

_____Many property inspectors exclude inspection and testing of some specialized systems, such as security and irrigation systems. Once you get the Buyer's inspection report, note what the Inspector did and did not do or could and could not do. Offer to meet with the Buyer to demonstrate how those systems are operated and maintained, and provide the contact information for any companies that regularly service the systems.

_____Check for receipts and warranty papers for any work done on the property, particularly for inspections and work done to prepare the property for sale.

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Home Buyer Transaction Fees-Do you know who pays for what?

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Wed, 03 Jun 2009 15:47:47 -0500

If you are a first time home buyer, you will want to know who is expected, typically, to pay for what expenses in the home buying transaction process.

This list is intended as a guide and keep in mind that everything is negotiable and you can ask the seller to pay for certain fees or closing costs.

Typical buyer expenses:

• Title insurance premium for the Lender’s policy

• Half of the escrow fee

• Document preparation fee, if applicable

• Recording charges for all documents in buyer’s name

• Buyer notary fees

• Tax proration from the date of acquisition

• All new loan charges, with the exception of any lender requires seller to pay

• Interest on new loan from date of funding to 30 days prior to first payment date

• Assumption or change of records fees for taking over an existing loan

• Beneficiary statement fee, if assuming existing loan

• Inspection fees, which include property, roof, plumbing etc.

• Fire insurance premium for first year

Your realtor should help guide you through the offer and counter offer process so you are informed and can safely negotiate the appropriate costs/fees.

Burbank Homes for Sales-Current Stats

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Tue, 26 May 2009 22:16:42 -0500

Here are the current stats for Burbank homes-active and pending sales:

Active - 109 Properties

	Bedrooms	Baths	Square Feet	List Price	LP/SqFt	DOM
Min	1	0	480	$335,000	$0.00	0
Avg	3.1	2.25	1946	$763,406	$373.75	71
Max	6	7	6204	$3,500,000	$1,409.24	593

Pending Sale - 76 Properties

	Bedrooms	Baths	Square Feet	List Price	LP/SqFt	DOM
Min	2	1	810	$217,800	$0.00	0
Avg	2.9	2.00	1624	$550,561	$321.50	31
Max	6	5	4400	$1,299,000	$695.33	217

Active and Pending - 185 Properties

	Bedrooms	Baths	Square Feet	List Price	LP/SqFt	DOM
Min	1	0	480	$217,800	$0.00	0
Avg	3.0	2.25	1814	$675,967	$352.29	55
Max	6	7	6204	$3,500,000	$1,409.24	593

Information is Believed To Be Accurate But Not Guaranteed

Housing Starts, Housing Market Index......what do these reports really mean?

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Tue, 19 May 2009 13:16:42 -0500

The Housing Market Index report came out yesterday and showed a 2 point increase over April's report.

This follows on the heels of a 5 point jump in April's report.

Yesterday this news was viewed as a very positive sign for the future direction of the housing market. Fast forward to today, the Housing Starts report came out and showed that starts fell dramatically going to lows not seen since 1959. Housing Starts fell 12.8% in April, 8.5% in March.

The pain was felt most in the Northeast, Midwest and South as the West showed the best news with a 42.5% increase in starts.

To put these numbers into context you need to realize that this(Housing Starts) statistic is a lagging indicator, meaning that it takes a while for any rebound to actually show up in these numbers. Having said that, inventories in many parts of the country are very high. Again, real estate is local, very local.

Here in the Burbank/Toluca Lake/Glendale real estate areas inventory is high in some of the higher price points, but if you look at the 400-550k market, inventory is not bloated at all. Properties that are priced well are selling quickly as there are many buyers at this price range.

This market is unlike any we've seen before and can be very confusing for both buyers and sellers. There is no doubt that pricing is key to selling properties quickly. The take away should be that these numbers can be interesting, but really don't tell you much about your real estate area.

If you really want to know what's going on in a particular neighborhood and at specific price points you need to drill down and study the inventory, recently sold homes, pending homes to gain insight on the true picture. Ask your realtor if there are multiple offer situations, if so at what price points. All of these statistics help give you a much better picture, which is important for sellers looking to price their home for a quick sale and for buyers wanting to present offers that get accepted.

Burbank, Toluca Lake, Studio City, Valley Village and Glendale Home Sales

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Sat, 25 Apr 2009 17:00:22 -0500

As you can see, not all areas are created equal when it comes to homes for sale and actual homes sold.

While some of our local areas are mirroring the national statistics there are a few areas that are had healthy sales and price increases as compared to March 2008.

*Zip Code*	*# Homes Sold*	*Median Home Price*	*% Chg From March 2008*	*Median Condo Price*	*% Chg From March 2008*	*SFH Price Per Sq. Ft.*
*90068*	16	$950,000	-13.40%	$552,000	30.80%	$458
*91040*	10	$265,000	-40.10%	210,000	-29.90%	$264
*91042*	14	$355,000	-34.00%	208,000	n/a	$273
*91201*	11	$533,000	-21.90%	323,000	n/a	$349
*91202*	10	$733,000	18.10%	352,000	-20.00%	$345
*91207*	3	$1,166,000	83.60%	$372,000	6.70%	$418
*91208*	7	$633,000	-12.80%	n/a	n/a	$390
*91501*	5	$480,000	-33.80%	$395,000	-24.40%	$279
*91502*	1	$400,000	n/a	$392,000	5.90%	$267
*91504*	7	$515,000	-23.10%	$382,000	-12.20%	$352
*91505*	16	$441,000	-16.80%	$415,000	38.30%	$382
*91506*	8	$448,000	-9.40%	$345,000	-9.00%	$353
*91602*	6	$631,000	-16.40%	$465,000	9.20%	$411
*91604*	13	$750,000	-14.80%	$380,000	-12.60%	$357
91607	6	$492,000	-31.00%	325,000	-21.70%	$338

Burbank Real Estate Sales for March 2009

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Wed, 01 Apr 2009 23:57:20 -0500

Burbank Real Estate Report -March 2009

SFR

Avg Sale Price-2 bed

SFR

Avg Sale Price-3 bed

SFR

Avg Sale Price-4 or more bed

Condos

Avg Sale Price

Condos

Units Sold

Total Avg List Price

Total Avg Sale Price

Total Units Sold

Avg DOM

$407,700

$512,100

$734,200

$374,500

$509,101

$478,647

Recap:

Days on market are down to 59, from 63 in February.

Average sale price is up almost 3% from February.

Total homes sold rose to 38 as compared to 28 in February.

Overall the trend is looking better as prices are stabilizing, more homes are selling and the time on market is decreasing.

Information is believed to be accurate, but not guaranteed

Thinking About Greening Your Burbank Home?

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Wed, 01 Apr 2009 18:36:41 -0500

Thinking about greening your home?

With so many resources, where do you start?

One of my favorite websites is GoGreenTube.com. It's a fantastic resource filled with green videos on that talk about sustainable ideas, tips, how to advice, resources, products and much more!

It gets warm here in Burbank and the San Fernando Valley, especially during the summer. So I'm always looking for ideas on how to make my home more energy efficient.

My latest find is this video which covers ideas on home energy retrofits:

Have fun greening your home!

Foreclosure Terms for Burbank Home Buyers and Sellers

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Tue, 31 Mar 2009 01:04:18 -0500

The Burbank real estate landscape has changed and there are many terms out there today that buyers and sellers did not have to worry about a few years back.

If you have been thinking about purchasing a short sale property or a foreclosure property, here are some terms you should know:

ASSIGNMENT OF DEED OF TRUST: A document that transfers the lender’s (beneficiary’s) interest in a deed of trust.

BANKRUPTCY: A legal process that allows a debtor to discharge certain debts without paying the total amount due.

BENEFICIARY: The lender or person to who the obligation is owed.

BIDDING INSTRUCTIONS: An authorization form signed by the beneficiary authorizing the trustee to make the initial opening bid at a trustee’s sale and subsequent bids.

DECLARATION OF DEFAULT: A document signed by the beneficiary instructing the trustee to prepare the Notice of Default should the borrower not bring the loan current, to sell he property, encumbered by the loan, in order to satisfy the unpaid debt. This document is not recorded.

DEED OF TRUST: A written document describing the real property being given as security for an obligation.

EXTENSION AGREEMENT: An agreement that extends the due date of a note.

FORECLOSURE: Enforcing a lender’s rights upon the default of an obligation that is secured by a deed of trust. A deed of trust must contain a power of sale clause to enable he trustee to initiate a non-juridical foreclosure.

FULL RECONVEYANCE: A document prepared by the trustee or substituted trustee, when the obligation secured by the deed of trust is paid in full. When recorded, the econveyance takes the deed of trust off record.

NOTICE OF DEFAULT: A written document that is recorded, published, and posted giving notice of public record that a borrower has failed to perform his or her obligation under the erms of the promissory note. This document is recorded.

NOTICE OF TRUSTEE’S SALE: A document that is recorded, published, posted and mailed and sets forth the date, time and location of the trustee’s sale. POSTPONEMENT: A verbal announcement made at the time and location of a trustee’s sale, extending the sale to a future date.

PUBLICATION PHASE: The period of time beginning after the third month starting on the date that the Notice of Default records. This period ends with the trustee’s sale being conducted. The trustee sees that the document is recorded, published and mailed in accordance with the requirements of the civil code.

RESCISSION OF NOTICE OF DEFAULT: After the default has been brought current or by the request of the beneficiary, this document when signed by the lender and recorded by the trustee, will remove the Notice of Default from record.

REINSTATEMENT PERIOD: The time period between the time that the Notice of Default records and ends 5 business days before the trustee’s sale. The lender must allow reinstatement during this period of time. A lender may elect to allow reinstatement after the 5-day period ends, but before the trustee’s sale.

SOLDIERS’ AND SAILORS’ RELIEF ACT OF 1940: An act passed by Congress for the financial protection of those individuals serving in the military service.

SUBSTITUTION OF TRUSTEE: A document signed by the lender and recorded by the trustee whereby the beneficiary appoints a successor trustee to the trustee of record.

TRUSTEE: The party who holds title to real property in trust for the benefit of another. The trustee’s most common functions are to process a full (when a loan is paid off) or partial (when a portion of the property is being release) reconveyance and to process a non-judicial foreclosure and process a trustee’s sale.

TRUSTOR: The borrower/owner at the time the deed of trust is created.

TRUSTEE’S DEED UPON SALE: A document signed and recorded by the trustee that transfers ownership of the real property to the purchaser at a trustee’s sale.

TRUSTEE’S SALE: A public auction sale of a property described in a Notice of Trustee’s Sale, which property was Information gathered from public sources and deemed reliable but not guaranteed.

For more information visit My Burbank Real Estate

Will Burbank Home Owners get help from the Making Home Affordable Program?

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Wed, 11 Mar 2009 00:43:45 -0500

The Obama administration has given us some new details on its $275 billion plan to help stem the tide of foreclosures nationwide.

It’s offering many incentives to investors, lenders etc. to entice them into modifying distressed mortgages to keep Americans in their homes. The steep fall in home prices is the main reason we’ve had a global financial meltdown, so the administration’s housing plan is vital to ending the deepening economic recession.

The plan is called the “Making Home Affordable Program”, which the administration thinks can help up to 9 million homeowners. There are two primary goals of this plan:

· First, it offers $200 billion to provide refinancing for homeowners who owe more than their homes are worth-also referred to as being “underwater” on their mortgages. To qualify, these homeowners-5 million of them by administration estimates-must have their mortgages in the hands of Fannie Mae or Freddie Mac, the mortgage finance giants that the government seized last September.

This plan will help, but it won’t reach lots of homeowners in places like California and Florida where homes are now worth substantially less than their mortgages.

Because most mortgages are bundled into securities and sold into a secondary market, it’s not easy for homeowners to find out whether Fannie or Freddie owns their loans or whether they’ve been pooled with other loans and sold by an investment bank to other investors.

· The other part of Obama’s plan attacks the problem of affordability. The administration provides another $75 billion in incentives to help prevent foreclosures in cases in which the homeowners, up to 4 million of them, are about to lose their homes. The money comes from the $700 billion bailout fund approved last October.

This part of the plan is extremely complex as it offers many financial incentives to mortgage servicers, who are essentially bill collectors for private investors who own pools of U.S. mortgages. Some incentives stay with the servicers while others flow through to investors.

In exchange for the incentives, a servicer would modify a mortgage so that no more than 38% of a homeowner’s monthly after-tax income was taken by the monthly mortgage payment. The government then would step in and share the cost of reworking that mortgage so that no more than 31% of the borrower’s monthly income was tied up in the payment.

· Any lender that takes new taxpayer bailout money under the administration’s Financial Stability Plan will be required to participate.

· The Obama plan got a strong endorsement Wednesday from the Financial Services Roundtable, which represents many of the largest mortgage lenders. This first step will go far in adopting consistent guidelines for everyone. But, officials confirmed that there’s no standard procedure for lenders under the Fannie and Freddie portion of the plan. It will be up to each lender to determine whether the refinances go through them or whether mortgage brokers and other intermediaries can help homeowners seek refinanced loans under the program.

· Officials were also careful to note that mortgage servicers won’t be able to modify mortgages if the terms of their contracts with the investors who own the pools of mortgages don’t allow it. There is no reliable data on how many of these investors are on the other ends of contracts that prohibit mortgage modifications.

That question is important, since many of the weakest loans underwritten during the height of the housing boom, from 2004 to 2006, were sold by now-defunct investment banks to investors abroad, many in Europe.

So who qualifies?

· Your mortgage must predate the start of 2009, you must live in the home and you’ll have to provide proof of income.

· First, are you already behind on payments or even in the foreclosure process? If the answer is no, then ask yourself whether your current mortgage rate is high enough to make it worth your while to refinance to take advantage of today’s low rates for 15-year and 30-year fixed-rate mortgages.

· You must find out who owns your loan. Most mortgages are bundled together and sold into a secondary market, where investors technically own them. If Fannie Mae or Freddie Mac placed your loan into the secondary market, you can contact the company that sends your monthly mortgage statement to discuss the new program. If your mortgage is in the portion of the secondary market where the private sector issued the mortgage-backed securities, you don’t qualify.

· To qualify under the refinance portion of the Obama plan, you can owe up to 5% more than your home is now worth. Thus, many homeowners in California, Florida, Arizona and Nevada, where home prices have plunged, won’t qualify.

There are many more details to this plan, this was just a bare bones explanation!

Sobering unemployment and mortgage delinquency numbers

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Fri, 06 Mar 2009 14:19:28 -0600

I get alot of questions from home buyers asking me if we are at the real estate bottom here in Burbank and the San Fernando Valley and the honest answer is, I don't know. But I will tell you that looking at the unemployment numbers that came out today, I would guess the answer is probably, no. But keep in mind that we won't know where the bottom actually was until things start to improve.

Unemployment hit at 25 year high for February coming in at 8.1% and to make matters worse the numbers from December were revised.....for a total loss of 681,000. The December revision makes that the worse figure in 59 years. If you look at the numbers more closely you'll find that the average wage has been trending up slightly indicating that more lower paying jobs were cut. But the cuts have been widespread canvasing a wide range of industries.

The other statistic that we should all be looking at is the number of delinquent mortgages.

More homeowners are struggling to pay their mortgages, according to the latest study. More than a tenth of households were behind on payments, 7.9% of the loans are overdue and 3.3% are in the foreclosure process.

We'll have to see how effective the new stimulus package is as far as helping homeowners avoid foreclosure, but even with that help be prepared to see short sales and foreclosures for some time to come. On the glass is half full front I will say that there are some great deals out there!

Search for homes for sale in Burbank, Toluca Lake, Studio City, Valley Village and surroundings!

Pending Home Sales Index, what does it mean to you?

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Tue, 03 Mar 2009 13:20:11 -0600

Image by Getty Images via Daylife

First, what is the pending home sales index?

The NAR (National Association of Realtors) developed the pending home sales index as an indicator of housing activity. It tends to be a leading indicator of existing home sales, not new home sales. A pending sale is one in which a contract was signed, but not yet closed and it usually takes four to six weeks to close a contracted sale.

Until housing data improves, the economy as a whole won't show significant signs of life. The numbers that came out today offered little hope. While the pending home sales index jumped up in December, 6.3 percent to 87.7 the pending home sales index fell a very steep 7.7 percent in January. This data indicates that we'll probably have weak home sales data for February and March. The year-on-year rate is still contracting at -6.4 percent.

Sales showed continued weakness in the Northeast, South, and Midwest but, did show a gain in the West, a region worth special attention given that the general real estate collapse has been centered here.

Bottom line is that with the labor market still in major turmoil, we probably won't see a significant rebound until later this year or beginning of next year.

Again I have to put out the disclaimer, that all of this is very area specific in terms of how bad or good things are. If you are in the market to buy a home, now is a great time with low interest rates and reduced prices!

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New Stimulus Package Benefits Real Estate

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Sat, 21 Feb 2009 15:09:09 -0600

1) the loan limits on mortgages will be raised to $727,000 in high cost areas

2) the tax credit will be raised to $8,000 with NO payback....this is huge!

3) interest rates shoud react favorably to the package(see below)

4) the bill has over $50 billion in it for foreclosure mitigation, with Treasury Secretary Geithner's Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages. Additionally Fannie Mae has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10. Talk to your CPA for the full details on this.

Mortgage interest deductability, real estate tax deductability, and the $250,000/$500,000 cap gains exclusion (an overall package worth more than $100 billion and for some a very attractive funding source for their pet projects) has remained intact.

The "big and bold" stimulus package will really impact the real estate market as long as the banks can follow through on the lending side.

Keep in mind that modifying mortgages is not an easy exercise due to all the different parties involved. Many times mortgages were sold by the originating entity to Wall Street. From that point they were repackaged and put into "tranches" or pools, based on the perceived stability or ability to pay back the mortgage. This has created many stakeholders which in turn have to agree to modify the mortgage.

More to come.

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White House targets housing plan (msnbc.msn.com)
U.S. home foreclosure notices hit 274,000 in January (cbc.ca)
Foreclosures Fall From December To January (huffingtonpost.com)

Burbank Real Estate Sales for January 2009

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Mon, 16 Feb 2009 18:50:04 -0600

Monthly Activity Report Burbank-January 2009

SFR

Avg Sale Price-2 bed

SFR

Avg Sale Price-3 bed

SFR

Avg Sale Price-4 or more bed

Condos

Avg Sale Price

Condos

Units Sold

Total Avg List Price

Total Avg Sale Price

Total Units Sold

Avg DOM

$529,800

$605,200

$768,300

$387,000

$451,783

$508,508

Information is Believed To Be Accurate But Not Guaranteed

Southern California Multiple Listing Service

Month to month average home sale price in Burbank from December 2008 to January 2009 is down $38,507, or 7%.

Average days on market, are up 3 days.

Most notably number of sold properties is down almost 58 % from December 2008.

Reasons for this trend include the significant price reductions we saw towards the end of last year, banks wanting to clear out inventory before the end of the year and buyers wanting to take advantage of low interest rates and low prices.

REO or Foreclosure?

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Wed, 21 Jan 2009 17:23:56 -0600

Ever wonder what the difference is between a foreclosure and an REO or real estate owned property?

A foreclosure is a legal process in which the owner's right to a property is terminated. It usually involves a forced sale of the property by a public auction to repay whatever debt is owed on the property. Real Estate Owned (REO) is real property that has been foreclosed by a lender and is now owned by the lender due to an unsuccessful sale at the public auction.

Here are some facts:

A foreclosure property goes through a foreclosure auction which is usually held on an assigned date on the steps of the county court house.
Foreclosure property buyers need to be able to purchase the property for CASH.
At auction, an opening bid on the property is set by the foreclosing lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender.
Foreclosure property buyers inherit all unpaid liens, including mortgage debt, taxes, construction loans, home equity lines of credit, and possibly a second or third mortgage.

On the other hand, an REO property is:

REO property is already owned by the bank.
Home buyers are able to get a regular mortgage or loan on that property. All cash is not needed.
REO properties in most instances come with clear title.

Some things to look for when purchasing an REO or already foreclosed property:

Work with your realtor and the Title Company representative to make sure that the title to the home you're buying is free and clear.
Understand where the pricing is in your market so you can submit a viable purchase offer. Your realtor will look at the local market conditions and historical trends prior to submitting your offer to the bank in order to make sure you have submitted an offer with appropriate pricing.
Banks do NOT provide many, if any, disclosures, so be prepared for some surprises. Additionally some banks will require you to sign their private addendums. Make sure you read each item carefully as you may not be comfortable with their terms.
Make sure that all home inspections are completed - don't forget a sewer line inspection - prior to close of escrow. In fact all inspections should be completed during the first 17 days of your escrow period in order to give you plenty of time to remove contingencies. Some banks are allowing for certain types of repairs so you may be able to ask for credits.
Be aware that banks will charge higher loan rates on investment properties. So if you are thinking about buying an REO property as a second home, make sure you check out the rates ahead of time and speak to your CPA.

Reality Sets In..........

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Sun, 11 Jan 2009 16:26:30 -0600

Image via Wikipedia

Housing Tracker is predicting a trend of -23.9% for Los Angeles area home prices and Homepredictor.com is prognosticating a 21.7% drop in prices for the Los Angeles area. Many economists are predicting that housing will not rebound in 2009. But how do you know what your area will experience?

Whether looking at Burbank or the San Fernando Valley, if you have followed real estate home sales for any amount of time you know that neither gains nor losses are ever uniformly distributed throughout a city or county. Certain areas experience the majority of the gains, other areas will experience more of the losses and it’s not always easy to predict.

The reason for homes in a particular area to be hit hard on the up or downside depends on many factors. From a macro economic standpoint things such as level of unemployment, industry strikes, bank lending standards, ie loose or tight, whether interest rates are headed up or down and how many businesses are entering or leaving an area all play a major role. On a micro level, you need to consider the accessibility of an area to transportation and jobs, condition of houses, specifically condition of the home being sold, curb appeal etc. Is your area undergoing gentrification or is it deteriorating?

Price is the one thing that sells in today’s market, but having said that, I have worked with several buyers who preferred paying a little more in order to get more of a turnkey or move in ready house.

If you are thinking about or need to sell your home in today’s market, be prepared to compete with the vast numbers of foreclosures on the market and :

Be prepared to do a pre-sale home inspection to avoid surprises when you are in escrow.

Fix items that buyers will want fixed, or be prepared to negotiate the price down during escrow. Anything safety related such as electrical issues, foundation issues, roof repairs etc. will become a reason to negotiate a credit.

If you are a home buyer there are the obvious considerations:

Getting pre-qualified so you know how much home you can afford.

Doing your homework on different areas so you can focus your home search.
Condo vs. House…..consider association fees and proximity of neighbors.

Then there are the not so obvious discussions:

If you are married or purchasing a home with a partner make sure you are all on the same page regarding issues such as how much work you are willing to put into the home to fix it.

Will you hire someone or do the work yourself.
Are you ok with doing the work over the span of several months or several years?
Are you willing to make the time commitment required to fix the house while living in it? Not everyone has the patience to handle the turmoil of a remodel with grace.
Who will be in charge of getting the estimates, making actual decisions on paint, counter tops etc.
Do you have a process in place to accommodate the flow of information and more importantly, settle disputes.

My point in bringing all of these issues up is that in today’s market, sellers have to compromise. Sellers are compromising on price, having to make certain repairs and buyers are compromising on condition of property, to a point. If it’s an all out bargain most buyers will come out from the sidelines, evidenced by the myriad of multiple offer situations we’ve seen over the past few months. But with so many properties on the market, and more foreclosures coming online it’s important to know your market and pricing.

There are both bargains and overpriced properties out there, it’s important to know the difference and your parameters before you decide to purchase or list your home.

Economic and real estate recap!

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Fri, 07 Nov 2008 17:27:18 -0600

Economic Recap:

Pending home sales for September dropped 4.6%, worse than expected.
Showing extremely weak numbers, total domestic light vehicle sales came in at 7.7 million annual unit sales. This the lowest since the recessionary times in the early 80s. The car rate of 3.9 million is the lowest yet in data going back to 1967.
The October jobs report fell for a tenth-straight month, showing larger-than-expected job losses and the highest unemployment rate since 1994. Nonfarm payroll employment in October plummeted another 240,000, following a revised drop of 284,000 in September and a revised decrease of 127,000 in August. The For the year-to-date, the economy has lost 1.2 million jobs net.

Federal Reserve lowered interest rates this week by ½% to 1% for the federal funds rate and 1.25% for the discount rate.
Consumer Confidence is at it’s lowest level, ever! Or at least since they began tracking this number 40 years ago.
So far this year we have had 17 bank failures.
Chicago Purchasing Manager’s Index came in with a steep drop, from 56.7 in September to 37.8 in October. Readings below 50 point to slowing output, reduced orders, which point to reduced consumer spending and demand.
Both the 3 month and overnight LIBOR rates have dropped. There is a great article….Uncovering the mysteries of the LIBOR, for those interested in further reading.

Be on the look out for the advance retail sales report due out end of next week.

As I’ve said before, I think many things need to happen for both the economy and the real estate market to turn around, but key elements include shoring up the unemployment situation as well as our credit markets. How quickly this will happen as well as cleaning up our mortgage situation will determine how fast we come out of the current quagmire.

As far as the Burbank and San Fernando Valley real estate market, we'll have to see how the local economy fares. We’re still not out of the woods with respect to unemployment and the recessionary back drop. How bank lending reacts to the current financial upheaval will prove to be a pivotal factor in our recovery as well as foreclosure bailout proposals being discussed by congressional leaders.

Burbank Real Estate Monthly Activity Report: 10-2008

Property Type: Residential

	New	Avg LP	Under Contract	Avg LP	Sold	Avg SP	%SP/LP	%SP/OLP	Avg DOM
	93	$558,531	39	$535,440	59	$555,834	97.80%	93.40%	54

The columns for New, Under Contract, and Sold represent the number of listings that went into those statuses during the month. These are updated on the 1st and 15th of each month for the preceding month.

Information is Believed To Be Accurate But Not Guaranteed

Southern California Multiple Listing Service

Month to month average sale price from September to October 2008 is up $, year over year, average sale prices are down by $ or %.

Average days on market, year over year are days.

Average square footage is % year over year.

Most notably number of sold properties is down 34% from September 2008 and down 22% from October 2007.

According to the San Fernando Valley Economic Research Center, foreclosures soared 203 percent from July through September compared to a year earlier. 2,589 local families lost their homes in the market collapse.

There were 854 foreclosures in the comparable period in 2007.

The glut of homes on the market pushed down the median price, to $400,000 in September from $620,000 a year ago, down 35.5%. The price fell $21,000 from August levels.

The median price of an existing, single-family detached home in California during September 2008 was $316,480, a 40.9 percent decrease from the revised $535,760 median for September 2007.

Statewide, days on market and inventory on hand is down. We are currently at a 6.5 month inventory for California.

The new home sales report for September points to the possibility that the sector has bottomed. New home sales came in at a better-than-expected annual rate of 464,000, up 2.7 percent on the month. The 464,000 rate is the first back-to-back below 500 rate since the '91 recession. Supplies are coming down and are at 10.4 months, down from 11.4 months in August. The median price, of $218,400, is the lowest in four years.

Impressive reductions this last month in the foreclosure arena! For the San Fernando Valley, in the $200k-$400k segment (yes, there is plenty of housing out there in the neighborhood of $200k), I saw reductions ranging from several thousand to one hundred thousand dollars! This points to the fact that the banks are wanting to clear out some inventory, maybe some year end house cleaning? At any rate many homes have gone into multiple offer situations as buyers are out in full force.

For All Fans of Frank Lloyd Wright Architecture

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Fri, 31 Oct 2008 01:32:47 -0500

I recently started using stumbleupon.com. It's a very fun web site that literally let's you stumble onto web sites, videos based on your personal interests. For example, you can check photography, architecture etc. and you can explore web sites you never knew about. This is a video I just stumbled and it's amazing to watch. Enjoy!
Fallingwater from Cristóbal Vila on Vimeo.

G-7 Meets.....What's Next?

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Sat, 11 Oct 2008 01:07:15 -0500

Group of Seven finance chiefs, vowed to do whatever was necessary to prevent the collapse of major banks.

The policy makers included representatives from the U.S., Japan, Germany, U.K., France, Canada and Italy.

The G-7 policy makers were under pressure to roll out new policies, but they came up short on details which will undoubtedly disappoint many investors.

Global central banks have executed emergency interest-rate cuts and pumped more cash into financial markets and the Federal Reserve said it would buy commercial paper and start taking equity stakes in financial companies.

For more on this story, see Bloomberg.com.

Hopefully the aggressive efforts from the Federal Reserve, Treasury, and global central banks are beginning to ease the fear and lack of confidence in our markets.

Next week's economic calendar is full of key reports on manufacturing, inflation, consumer spending, and housing, so we'll see how this impacts the direction of the market and interest rates.

Producer Price Index, Empire Manufacturing, business inventories, retail sales and the Fed's Beige Book release on Wednesday.
Consumer Price Index, Industrial Production and Capacity Utilization, weekly initial jobless claims along with the Philly Fed Manufacturing Index will come out on Thursday.
Housing starts and building permits will be released on Friday. Forecasts are calling for declines in both readings, which may be a good thing as we need for inventories to decline.

Economic Update

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Thu, 09 Oct 2008 18:39:47 -0500

A couple of things are clear, many people have lost confidence in the financial system and this is not just a U.S. problem as the aftermath of this financial crisis is being felt around the world.

Federal Reserve Chairman Ben Bernanke brokered the broadest coordinated interest rate cut in history, among all of the central banks. Yesterday, the Fed, the European Central Bank, the Bank of England, Bank of Canada and Sweden's Riksbank reduced their benchmark rates by half a percentage point. The Bank of Japan and Switzerland also supported the action and China's central bank cut it's key rate by .27 percentage point.

The stock market has reacted sharply to economic and credit data this week and ended today at 8579, down 679 points on the day. We have not seen these levels since 2003.

The giant safety net that the Fed and Treasury have initiated has helped to keep the financial system afloat, but it has not restored confidence nor has it enabled US banks to start lending to each other again. Banks in Europe, as evidenced by the extremely high Libor rate, remain on the defensive and continue to hold on to cash. The Libor rate is at it's highest level this year.

Why should you care about the Libor rate?

Some business loans and many adjustable rate mortgages in the US are tied to the Libor rate, the rise will probably put added stresses on consumers and could offset some of the easing by the Fed over the past year if the rate stays high. Questions to ponder:

Currently the nominal value of all delinquent US mortgages, as of the 2nd quarter, was put at $680 billion by High Frequency Economics. If this number is accurate, will the $700 billion bailout or rescue plan do enough to alleviate this problem. Additionally there is enough anecdotal evidence to suggest that this number will be rising over the next year. If you look at the reaction of the stock market this week, the answer to that question may be negative.

It's clear we're in a recession, the big question is how long will we stay there and how long will it take the credit markets to unfreeze?

I think many things need to happen for the economy to turn around, but key elements include shoring up the unemployment situation as well as our credit markets. How quickly this will happen as well as cleaning up our mortgage situation will determine how fast we come out of the current quagmire.

As far as the local real estate market, we'll have to see how the local economy is impacted by unemployment and the current credit squeeze as well as the number of foreclosures coming online over the next few months.

Burbank Real Estate Sales Statistics For September 2008

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Wed, 01 Oct 2008 16:46:31 -0500

Burbank Closed Sales for September 2008

	Bedrooms	Baths	Square Feet	List Price	LP/SqFt	Sale Price	SP/SqFt	DOM
Min	0	1	465	$199,900	$270.57	$185,000	$268.03	1
Avg	2.7	2.25	1524	$560,785	$375.35	$540,557	$363.34	80
Max	5	5	3951	$1,490,000	$513.65	$1,400,000	$547.46	345

Month to month average sale price from August to September 2008 is down $14,258, year over year, average sale prices are down by $127,253 or 19%.

Average days on market, year over year are up 23 days.

Average square footage is down by 8% year over year.

Most notably number of sold properties is down 34% from August 2008 and down 22% from September 2007.

These numbers are reflecting several factors……

More foreclosures have been coming online, loans are hard to come by in the current credit environment.

Mortgage applications have been down, despite lower rates, but mainly due the seizing up of the credit markets.

Economic Update!

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Wed, 01 Oct 2008 13:45:19 -0500

Senate is set to vote tonight on an amended bailout bill, which includes temporarily raising the FDIC deposit insurance to $250k and continuing some tax breaks for corporations and individuals. Apparently some in the House are working on an amended bill as well. No House vote is scheduled yet.

The National ISM fell sharply from 49.9 to 43.5. Economists were forecasting 49.5.

This is the lowest number since October 2001. ISM points to a recession as a reading below 50 suggests activity is receding and this is evident by sharp drops in new orders, production, and employment.

Moreover, experts are saying conditions may worsen since the full impact from the credit crisis is yet to be felt.

ADP jobs report came in at -8,000 nonfarm payrolls for September, Employment Situation report is due out on Friday.

Mutual fund withdrawals hit a record $74.5 billion in September. The previous record withdrawal month was September 2001, with $27 billion cashed out.

Equity fund withdrawals were over $50 billion of the total $74.5 billion. You could look at that as a really bad sign, but there is the glass is half full view. Those investorswon't be racing back into the market yet, but it does mean there is a lot of cash available to return to the market when conditions are more favorable.

Many have been debating the mark to market or fair-market valuation accounting methods. Some in Congress urged suspension of the rule. But the SEC and FASB have flatly rejected this idea. The FASB has issued a “clarification” of the existing rule.

Under this “clarification” they are now telling auditors that if there is no valid market for securities, the existing rules permit institutions to value securities based on reasonable cash-flow projections. This is huge, and it is also controversial. Considering the mortgage market started to malfunction last year you have to wonder where the SEC and FASB were during all of this and why they have waited so long to "clarify" the rules.

More to come!

Economic Update!

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Wed, 01 Oct 2008 13:35:45 -0500

Senate is set to vote tonight on an amended bailout bill, which includes raising the FDIC deposit insurance to $250k and continuing some tax breaks for corporations and individuals. Apparently some in the House are working on an amended bill as well. No House vote is scheduled yet.

The National ISM fell sharply from 49.9 to 43.5. Economists were forecasting 49.5.

Moreover, experts are saying conditions may worsen since the full impact from the credit crisis is yet to be felt.

ADP jobs report came in at -8,000 nonfarm payrolls for September, Employment Situation report is due out on Friday.

Mutual fund withdrawals hit a record $74.5 billion in September. The previous record withdrawal month was September 2001, with $27 billion cashed out.

Many have been debating the mark to market or fair-market valuation accounting methods. Some in Congress urged suspension of the rule. But the SEC and FASB have flatly rejected this idea. The FASB has issued a “clarification” of the existing rule.

More to come!

A perspective on our current....well......financial mess!

Burbank Real Estate Agent Ana Connell (Keller Williams Realty) — Mon, 29 Sep 2008 23:52:06 -0500

The severity of the state of our credit markets, should be a wake up call for anyone who has not yet made the time to get educated on what’s been going on in our financial markets, today and over the last 20 years.

Understanding the speculation that led to the Great Depression, the repeal of the Glass Steagall Act and how less regulation has impacted the banking industry, the global impacts of our financial system, should all be considered as we head into uncharted territory and try to figure out how to move forward.

I don’t have the answer of what exactly will fix this mess, but I do know that a well thought out plan needs to be crafted, that includes restoring liquidity to our credit markets, decreasing our dependence on credit and restoring common sense rules to the process of issuing credit to consumers. It should include many other items, including accountability, that I will not go into at this time.

Today we lost $1.1 trillion dollars in net worth as a result of the market’s 778 point drop, which represented a 7% drop and the biggest point drop ever! In case you are wondering how this compares to previous drops, here is a list of historic stock market collapses:

12.8%: Drop in the Dow Jones Industrial Average (DJIA) on Black Tuesday (Oct. 29, 1929)

22.6%: 508 points Largest one-day percentage drop in stock market history (Black Monday, Oct. 19, 1987)

4.4%: 504 point drop in the DJIA on Sept. 15, 2008

(If the markets continue to drop, there are circuit breakers that were introduced after the crash in October 1987 and then further revised to take into account the increased volume and index levels. There are trigger levels or circuit breakers for a one day decline of 10%, 20% and 30% of the DJIA. These levels are calculated at the beginning of each calendar quarter using the average closing value of the DJIA for the previous month to establish specific point values for each quarter.)

For more information on this, check out the SEC’s website.

Unfortunately this credit crisis and the fall in the financial markets impacts all of us directly, through our 401k, IRA, money markets, annuities and just as importantly being unable to obtain access to home loans, business loans etc.

We need to move beyond partisan labels and the finger pointing, because the impacts, in the end, will be felt by everyone.

Disclaimer: All information in this post is subject to change without notice and is an opinion, is not guaranteed, may be time sensitive, as well as based on information collected from many sources which are not guaranteed to be reliable.