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Re-Post of the March Newsletter

2010-03-14T13:23:00.000-07:00

This is a re-post of the March newsletter sent to my clients from Advanced Access.

"Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind."

~Dr. Seuss

Featured In This Issue

Special Days and Events

Existing-Home Sales Down, Prices Steady

Tax Time Tips for the Biggest Federal Refund

Special Days and Events

March 14 – Daylight Saving Time starts

March 17 – St. Patrick's Day

March 20 – First Day of Spring

The birth flower for March is the Daffodil. The birth stone for March is the Aquamarine.

Existing-Home Sales Down, Prices Steady

Existing-home sales fell in January but are above year-ago levels, according to the National Association of REALTORS®.

Existing-home sales — including single-family, townhomes, condominiums, and co-ops — dropped 7.2 percent to a seasonally adjusted annual rate of 5.05 million units in January from a revised 5.44 million in December, but remain 11.5 percent above the 4.53 million-unit level in January 2009.

Lawrence Yun, NAR chief economist, said there is still some delay between shopping and closing that affected current sales. “Most of the completed deals in January were based on contracts in November and December. People who got into the market after the home buyer tax credit was extended in November have only recently started to offer contracts, so it will take a couple months to close those sales,” he said. “Still, the latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery.”

Inventory Levels

Total housing inventory at the end of January fell 0.5 percent to 3.27 million existing homes available for sale, which represents a 7.8-month supply at the current sales pace, up from a 7.2-month supply in December. Raw unsold inventory is 9.6 percent below a year ago, and is at the lowest level since March 2006.

“Activity should be picking up strongly in late spring as buyers take advantage of the tax credit, which is critical to absorb distressed properties reaching the market and to continually chip away at inventory,” Yun said. “With a downtrend in the number of homes on the market, especially in the lower price ranges, values are beginning to firm but with great variance around the country.”

Median Home Prices

The national median existing-home price for all housing types was $164,700 in January, unchanged from a year earlier. Distressed homes, which accounted for 38 percent of sales last month, continue to downwardly distort the median price because they typically are discounted in comparison with traditional homes in the same area.

A parallel NAR practitioner survey shows first-time buyers purchased 40 percent of homes in January, down from 43 percent in December. Investors accounted for 17 percent of transactions in January, up from 15 percent in December; the remaining sales were to repeat buyers. The survey also shows that buyer traffic increased 9.4 percent in January.

NAR President Vicki Cox Golder said buying a home in the current environment has become more challenging. “First-time buyers and others who need a mortgage are increasingly losing out to all-cash investors for the best bargains in many areas, particularly for foreclosed homes where cash is king,” she said.

“Inventory conditions vary by price range, and of course there are major differences depending on location. REALTORS® are the best buyer resource for strategies on winning bids in increasingly competitive markets,” Golder said. “The bidding for more desirable homes will only accelerate between now and the April 30 contract deadline to qualify for a tax credit of up to $8,000.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage edged up to 5.03 percent in January from 4.93 percent in December; the rate was 5.05 percent in January 2009.

Single-Family Homes and Condos

Single-family home sales fell 6.9 percent to a seasonally adjusted annual rate of 4.43 million in January from a level of 4.76 million in December, but are 8.6 percent above the 4.08 million pace in January 2009. The median existing single-family home price was $163,600 in January, down 0.4 percent from a year ago.

Existing condominium and co-op sales dropped 8.1 percent to a seasonally adjusted annual rate of 620,000 in January from 675,000 in December, but are 38.1 percent above the 449,000-unit level a year ago. The median existing condo price was $172,400 in January, which is 1.4 percent higher than January 2009.

Regional Performance

• Existing-home sales in the Northeast fell 10.9 percent to an annual pace of 820,000 in January but are 22.4 percent above a year ago. The median price in the Northeast was $245,300, a gain of 8.8 percent from January 2009.

• Existing-home sales in the Midwest declined 6.9 percent in January to a level of 1.08 million but are 8.0 percent higher than January 2009. The median price in the Midwest was $130,300, which is 1.0 percent below a year ago.

• In the South, existing-home sales dropped 7.4 percent to an annual pace of 1.87 million in January but are 12.0 percent above a year ago. The median price in the South was $140,200, down 2.0 percent from January 2009.

• Existing-home sales in the West declined 5.2 percent to an annual rate of 1.28 million in January but are 7.6 percent higher than January 2009. The median price in the West was $203,400, down 5.8 percent from a year ago.

Reprinted from REALTOR® Magazine February 2010 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2010. All rights reserved.

Tax time tips for the biggest federal refund

The majority of taxpayers will receive a bigger refunds or less tax owed on 2009 returns.

"The key this year is to get organized beforehand," says Jessi Dolmage, spokeswoman for 2nd Story Software, the makers of TaxACT.

Dolmage shares easy ways that everyone can use to maximize their federal refund.

1. Gather your tax documents and organize by category. Locate records related to events including unemployment, college, new vehicles, having or adopting children, buying a house, moving and changing jobs.

2. Free solutions like TaxACT Free Federal Edition guide you through the new credits, deductions and tax laws. They also do the math, help find missing information and identify potential errors. TaxACT Free Federal Edition at www.taxact.com allows everyone to prepare and e-file for free – regardless of income, age, state of residence and military status.

3. Remember the Earned Income Tax Credit (EITC). According to the IRS, one out of every six taxpayers will qualify this year for this credit designed for those whose earned incomes are below certain thresholds.

The fastest way to get your federal refund is to e–file your return and choose direct deposit, reminds Dolmage. Learn more about 2009 tax law changes and TaxACT at www.irs.gov and www.taxact.com.

Courtesy of ARA Content

Hope you've enjoyed March’s Newsletter.

Please call or send an e-mail if you have any questions about buying, selling, or investing in real estate.

Re-Post of February Newsletter

2010-03-14T13:17:00.000-07:00

This is a re-post of my February newsletter send to my clients from Advanced Access.

Winter is the time for comfort, for good food and warmth, for the touch of a friendly hand and for a talk beside the fire: it is the time for home.

~Edith Sitwell

Featured In This Issue

Special Days and Events

Power Savers - Energy Efficiency in the Residential Sector

Tips to Manage Credit Card Debt

Special Days and Events

February 2 – Groundhog Day

February 14 – Valentine's Day

February 15 – President's Day

February 16 – Mardi Gras

February – Black History Month

The birth flower for February is the Violet. The birth stone for February is the Amethyst.

Power Savers – Energy Efficiency in the Residential Sector

According to the U.S. Department of Energy's 2008 Annual Energy Review, the residential real estate sector accounts for roughly a fifth (22 percent) of all energy consumption in the country. This considerable share of all energy consumption has led lawmakers to propose policies to improve energy efficiency in homes. At the same time, homeowners and home buyers are showing a greater preference towards energy efficiency for reasons varying from a desire to become more environmentally conscientious to cutting down on their monthly energy bills. When formulating policy, however, there are several factors to consider.

Older vs. Newer Homes

Older homes consume more energy than newer homes. According to the Department of Energy's 2005 Residential Energy Consumption Survey, homes constructed before 1970 consume roughly one and a half times what newer homes consume, on a per square foot basis. It should be noted that the average size of homes has been steadily increasing since the 1970s, though older homes still in existence tend to of similar size compared to recently built homes. However, recently there has been a decline in the median size of homes. This is likely due to the slowing of the housing market over the past couple of years as well as rising energy costs.

Also, according to the 2007 American Housing Survey, older homeowners tend to occupy a larger share of older homes. This is an important point as it may have ramifications in terms of public policy. Government restrictions or mandates that require energy audits or upgrades may place an excessive burden on older home owners who often are retirees with less flexible incomes or restricted in their geographic mobility.

Cost Variations

Regionally, great variations persist in terms of energy consumption and costs. Some of this is attributable to climate variation throughout the country. The Pacific and South Atlantic regions are generally warmer in the winter; in the case of the Pacific the weather is also milder in the summer than in areas like New England or the Middle Atlantic. This variation in climate means that certain regions have lower demand for heating or cooling.

Consequently, energy costs for the typical household can vary widely, according to the DOE's 2005 Residential Energy Consumption Survey. In the Northeast, the typical yearly energy bill was $2,319, compared to $1,491 in the West. Federal legislation regarding residential energy policy should take into account these regional variations when it comes to energy costs.

Similarly, energy consumption varies by state. For instance, the typical yearly energy bill for a home in New York was $2,409 while in California the typical bill was $1,396. A major reason for the difference is heating costs, which account for almost two–fifths of energy bills in the Northeast and Midwest, compared to approximately one–fifth in the South and the West.

Marketing Homes to Energy-Conscious Buyers

For homeowners looking to sell their properties (as well as the real estate professionals who assist them), they may want to take into account the fact that current home buyers are placing greater significance on homes' heating and cooling costs as well as energy efficient appliances and lighting in their home-buying decisions. According to NAR's 2009 Profile of Home Buyers and Sellers, 88 percent of recent home purchasers indicated a home's heating and cooling costs were at least somewhat important in their home–buying decision. In addition, roughly 70 percent said that energy–efficient appliances and efficient use of lighting was important. In fact, reducing energy costs through energy efficiency appears to take priority over other energy or environmentally friendly home features such as “Landscaping for energy conservation” and “Environmentally friendly community features” which about half of home buyers said were important to their buying decisions.

Homeowners may need to consider improving their homes or retrofitting in order for their current properties to be more energy efficient. A few things need to be considered such as the length of time home owners plans to own their homes (the median, according to NAR's 2009 Profile of Home Buyers and Sellers, is about 7 years) and the cost of the upgrades. There are a few ways that homeowners can benefit from upgrades. First, homeowners will save on energy costs. Some projects have longer payback periods (i.e., the amount of time that it takes to recoup the cost of the energy efficient upgrade through reduced energy usage), while others have a universally low payback period like programmable thermostats which are relatively cheap and easy to install. The energy savings from a programmable thermostat can be recouped in as little as a year. However, some projects may be more expensive to undertake and the payback period can vary greatly depending on the region where the home is located. For example, sealing air ducts or replacing windows may be much more cost effective with a shorter payback in regions where heating costs are greater. Second, since home buyers are increasingly aware of energy efficiency, certain upgrades may increase a home's resale value. Finally, there is the “peace–of–mind” benefit that homeowners may feel by being friendlier to the environment.

Potential Impact

Federal policy options should take into consideration a variety of factors like the variations in region, age of homes, and mix of homeowners when creating new laws. Likewise home buyers and sellers making updates to homes should be aware of such factors when making upgrades to their existing home or when purchasing a home.

Reprinted from REALTOR® Magazine January 2010 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2010. All rights reserved.

Tips to manage credit card debt

Loan consolidation has its ups and downs, but, if handled properly, it can help a family afford to get out from under debt.

The average American household had $8,329 in credit card debt in 2008, according to the Nilson Report in April. And that didn't depend on if the household currently had an active credit card open.

“Debt control and management is a possibility for everyone,” says Daniel Wesley at CreditLoan.com. “And there are many resources available – ranging from credit consolidation companies to credit counselors – that can help people bring their debt to a manageable level.”

Some tips to help evaluate if debt consolidation is an option for you are:

• Get organized

List all the debts you have, all the interest rates you're paying and all the annual income your family brings in. Having all this information in front of you will help you to determine the best steps for bringing your debts under control.

• Do the math

Calculate the interest rates for all the debts you're paying now, and then calculate what your new interest payments will be for all the different consolidation options. The concern is that the new single interest rate through your credit card or bad credit loans will probably be a higher amount, so you need to make sure your overall payments are fewer than what you're currently paying on multiple debts.

• Determine the risk

You can consolidate all your debt to one credit card that has a lower interest rate now, but there is the risk that those rates will increase in a year. And if you don't have your debt paid down that quickly, this type of consolidation probably won't make the best sense. Another type of consolidation is taking out a home equity loan, but with this, you have the risk of your home being taken away if you default on the payments.

Courtesy of ARA Content

Hope You've Enjoyed February’s Newsletter.

Please call or send an e-mail if you have any questions about buying, selling, or investing in real estate.

Re-post of January Newsletter

2010-03-14T13:10:00.000-07:00

This is a re-post of my January newsletter send to my clients from Advanced Access.

"Be always at war with your vices, at peace with your neighbors, and let each new year find you a better man."

~Benjamin Franklin

Featured In This Issue

Special Days and Events

Extending the Good News for Home Buyers

Tips to protect your home from severe weather

Cooking Corner

Special Days and Events

January 1 – New Year's Day

January 18 – Martin Luther King Jr. Day

The birth flower for January is the Carnation. The birth stone for January is the Garnet.

Extending the Good News for Home Buyers

by Lawrence Yun, Chief Economist, NAR Research

Let's first turn to the terrific news regarding the housing stimulus. Earlier this month, the U.S. Congress overwhelmingly passed and the President signed into law new measures to maintain the momentum for a housing market recovery. The home buyer tax credit, originally scheduled to expire at the end of November will now be available through the middle of next year and more potential buyers will be able to take advantage of it. The income limit was also increased and many move-up buyers - not just first-timer purchasers - also will qualify. Furthermore, loan limits will not shrink as was planned for next year; in high-cost areas, the loan limit will remain at near $730,000 in 2010, thereby permitting more consumers to tap into the historically low mortgage rates.

As most of us are aware, the housing market recovery to date has been concentrated in the lower-end starter home segment. While the mid-priced market has begun to show signs of life, it is still far below normal activity. The upper-end remains sluggish. Therefore, enlarging the tax credit to include move-up buyers will add the necessary "juice" to broaden the recovery. The accompanying increased velocity in home sales will mean more economic activity. Also, even though there may be less impact in the overall net inventory (a person sells before buying so it looks as a "wash" on inventory), the months' supply will fall because of rising sales. Increased sales have the added benefit of making HVCC and appraisal issues less problematic since more comparables will be available.

Adding it all up, home sales are now expected to get a boost by roughly 15 percent next year. Existing-home sales are forecast to post 5.7 million units in 2010 (up from 5 million units in 2009). New home sales will also rise, reaching 550,000 (from 400,000). More importantly, inventory will likely fall to a 6-7 months' supply by the middle of next year. That draw down of inventory means that that there are likely to be modest home price gains. Roughly speaking a 2-5 percent price gain is likely in many parts of the country in the next year.

Rising home values will prevent home prices from overcorrecting even further. Home prices have, indeed, been overcorrecting and have led to sizable destruction in middle-class housing-related wealth. By contrast, stock market and financial wealth have experienced spectacular gains in the past nine months. Despite those gains, however, consumer confidence still continues to tread near historic lows.

Why is there a disconnect between the rising stock market and low consumer confidence? Most middle-class families have the majority of their wealth tied to housing and less to the stock market. So as long as home values fall, then consumer confidence and the broader economy will face challenges. Therefore, housing-focused stimulus measures will help households build up their housing-wealth (again) and lay the foundation for a sustainable economic recovery.

There were those who argued against the home buyer tax credit. They contended that it would be cheaper for the government just to let home values slide by $8,000 (the amount of the credit) because from a buyer's point of view, there is no difference between a $8,000 credit or an equal amount decline in home value. However, a further decline in home value by that amount would have translated into a $700 billion wealth destruction for middle-class home-owning families. Such an unnecessary loss of household wealth would hold back general consumer spending and thereby hinder a broader economic recovery. But with the tax credit extended and expanded, rising home sales will help nudge home values upward rather than continuing to overcorrect. Yes, the tax credit extension will have an impact on the federal budget deficit - around $10 billion. But those monies will be easily recovered as the economy gets a boost in addition to preserving the middle-class wealth.

The commercial real estate market will also benefit, though as always after some lag time. As the economy becomes more fully entrenched in "recovery" mode, employment will start to turn around. Rising employment and recovering consumer wealth will mean an eventual increase in demand for office, retail, and industrial space.

As always, there are some caveats. Despite the very positive news on the housing stimulus, there remain significant risks to the forecast. Mortgage rates will rise from their rock-bottom points as we move into the next year. The Federal Reserve will slowly start the unwinding of its mortgage-backed security purchases. Also, consumer prices will be watched for any sign of accelerating inflation. Bond investors, therefore, will be cautious about lending at such a low rates. The 30-year fixed rate is likely to reach 5.7 percent by the end of 2010 from the current 5.0 percent.

The labor market is another worry. Though anticipated, the rising unemployment rate is a painful reminder that not all is well. The unemployment rate in October zoomed into double digits - 10.2 percent, its highest level since 1983. And the climb is not over yet - look for unemployment to hit 10.4 percent before reversing. With 7 million job cuts in the past two years, the current total payroll employment at 130.8 million is even below the total jobs that existed in 2000. The country has about 25 million more people in 2009 compared to 2000, yet the total number of jobs has remained unchanged. The silver lining is that the pace of job cuts is now less sharp now than in the first half of the year. Still, the jobless rate unfortunately will remain stubbornly high for quite some time. While job creation is expected to turn positive by spring, unemployment will likely be at 9.5 percent by November 2010 at the time of the mid-term elections. A more-than-usual number of elected officials will be voted out.

Despite the risks of rising mortgage rates and rising unemployment, the housing outlook has significantly improved. As the fear of falling home values disappears, that one key negative factor that has held back home sales will no longer be in play. Happier days are ahead

Reprinted from REALTOR® Magazine December, 2009 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2009. All rights reserved

Tips to protect your home from severe weather

When people think of winterizing their homes, most often their heating bills spring to mind - along with insulation and weather stripping. The winter months bring not only high energy bills, but also an increased chance of certain kinds of damage to your home and its contents.

A few precautions can help protect you from serious losses and disruptions this season:

Indoor floods

While home fires make headlines, water damage is more common and often just as severe. The most frequent cause is faulty or broken pipes. In fact, Fireman's Fund Personal Risk Consultants see a surge in water damage during the first three months of the year, when pipes are most likely to freeze and burst. Be sure to insulate exposed pipes.

If you leave your home to spend time in warmer climates or even just a weekend on the ski slopes, always leave the heat on in your home and set it to at least 55 degrees. Don't let high fuel prices tempt you into going lower. The pipes that come in through your foundation or run through external walls can reach temperatures much lower than the setting on your thermostat. Have someone check on your home while you are away.

A foolproof way to protect your home from broken or leaking pipes at any time of year is to install an automatic water shutoff system. Attached to your home's main incoming water line, the device senses increased water flow caused by a burst pipe and automatically shuts the system off. Fireman's Fund Insurance Company recommends the Leak Defense System from Sentinel Hydrosolutions. A 5 percent premium discount is available to policyholders who use this system, so let your insurance agent know if you install one.

Chimney and furnace fires

While fire presents a year-round risk, certain causes of fire occur more frequently during the winter. Chimneys, boilers and furnaces are particular risks. Approximately 25,000 residential fires begin in a fireplace or chimney every year, according to the Consumer Product Safety Commission.

Why so many? Over time, a layer of unburned carbon-based residues (sometimes referred to as fireplace creosote) builds up along the inside walls of your chimney and can eventually catch fire. The solution is to have a trusted, professional chimneysweep clean and inspect your chimney annually.

An annual inspection is just as important for those with furnaces and boilers. And, remember, your furnace room should never be used for general storage. Wood scraps, old books, paint, solvents and other flammable liquids are significant fire hazards and should be removed and stored elsewhere.

Ice dams and old trees

Snow and ice storms can create a number of potential threats to your home. One of these is ice damming, which occurs in the days after a snowstorm.

Icicles hanging from your eaves, while they may be beautiful, usually indicate that a dangerous ice dam has formed. An ice dam is a build-up of ice that can form at the edge of your roof when snow melts but is blocked from draining. When more snow melts and is trapped behind this ice, the resulting water backup can soak through your roof and cause damage to ceilings, walls and more. The most common causes of ice dams are clogged gutters and insufficient insulation, both of which are easy to remedy.

Mature trees on your property represent another potential hazard during storms. Strong winds or frozen water that covers old branches with a heavy coat of ice can lead to failure and collapse, a clear threat to your home or other nearby structures. Have a trusted horticultural expert take a look at your property's mature trees and prune or cut down unstable specimens.

For more advice on how to protect your home from winter's severe weather, visit www.firemansfund.com.

Courtesy of ARA Content

Cooking Corner

Raspberry Cream

Courtesy FoodNetwork.com

1 cup raspberries

3 tablespoons sugar, plus more to taste

Freshly squeezed lemon juice, to taste

1/2 cup heavy cream, chilled

Directions

1 tablespoon confectioners' sugar Mash the berries and sugar in a small saucepan with a wooden spoon. Bring to a boil over medium-high heat, stirring frequently. Reduce heat to low, and simmer, stirring frequently until the berries breakdown and get juicy, about 5 minutes. Strain mixture through a fine-meshed sieve into a bowl; discard the seeds. Cool. Adjust the sweetness or tartness of the sauce with more sugar and lemon juice, as needed.

Beat the cream until it holds a light peak. Sift the confectioners' sugar into the cream. Continue beating until the cream holds a holds a soft, but firm peak. Gently fold raspberry sauce into the whipped cream until blended. Store in an airtight container in the refrigerator until needed.

Yield: about 2 cups

Hope you've enjoyed January’s Newsletter. Please call or send an e-mail if you have any questions about buying, selling, or investing in real estate.

Bud McHarg

Arrowhead Resort Realty

Office: 9093362289

Cell: 9513141263

Toll Free: 8005755659 Email me at:

bud@budmcharg.com

Visit my website at:

http://ArrowheadResortHomeSales.com

New Website is Running

2009-11-23T21:29:00.001-08:00

Have you had a chance to check out our new site?

We are launching a newly revised website!

2009-11-10T21:35:00.000-08:00

Stay tuned for our new real estate website for the San Bernardino Communities. We are in the final phase of creating the new site to emphasize organic placement in all the major search engines.

We created our first website in 1998. This site (http://www.highcountryrents.com/) was developed to showcase our property management company; High Country Property Management. At the time, we concentrated our marketing efforts on various pay-per-hit placements on the major search engines. Over a number of years, we worked this system very hard and engaged in the bidding wars for paid placements. Then, in 2000 we expanded by adding a website for real sales by launching http://www.budmcharg.com/. Again, we subscribed to the pay-per-hit system to place this site near the top of most of the major search engines. We added still another real estate sales site (http://www.arrowheadresorthomesales.com/) in 2002.

With the many changes in the way the public searches for properties over the past few years, it because obvious that pay-per-hit marketing was not reaching as many potential clients as we could reach from high organic placement. With this understanding, we have decided to shift our marketing efforts away from pay-per-hits to better organic placement by more effective use of keywords and meta-tags and more convenient site design. This new, revised site (http://www.arrowheadresorthomesales.com/) will be launched on Thursday, November 12, 2009.

Please check out our revised site and see if it doesn’t offer you more information and easy access to property details. Feel free to let us know what you think of the new site.

Thanksgiving Holiday Rentals!

2009-11-04T21:21:00.000-08:00

Looking for reservations for a Thanksgiving Holiday vacation home in Lake Arrowhead? Here is the place! We still have several rental properties to meet the needs of any group. From a small cozy cabin for 2 to a 5 bedroom home that accommodates a group up to 24 guests.

To view all of our properties can check availability and pricing, visit our website at: http://www.highcountryrents.com/.

We look forward to hearing from you.

Great New Listing!

2009-10-30T19:37:00.000-07:00

Today was spent dealing with full-time rentals and adding new listings to the MLS.

Our property management company, High Country Property Management, deals with both full-time and vacation rentals. More on the details of each of these services will be the subject of future posts.

The new listing is for a 2-bedroom, 1.5 bath home in Crest Park. This property was built in 1986, and shows pride of ownership. It is commuter-friendly since it is right off Hwy 18. It has a fenced yard for the dog, too! List price is $190,000.

Welcome to my blog

2009-10-29T20:48:00.000-07:00

Well, it is finally time for me to move into the new century and start blogging. I have given this a lot of consideration over the past 8 years; but just haven't taken the time to get started. So here I go...

First of all, I hope everyone understands that the only thing I absolutely, positively know for sure about real estate is that I live in a house! Anyone who tells you they know anything else about real estate is stretching the truth, at a minimum. This is a fickle business, for sure! You can track the trends, and watch the activity; but in the end, it is really just a crap shoot to make perfect decisions in real estate.

So understanding that I don't claim to be an expert, I do have a lot of knowledge about the San Bernardino Mountains communities and our real estate market. And, I would be delighted to try to answer your questions and share my opinions.

Let me hear from you.