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Where Home Buying Begins....

Home buying doesn’t begin with home searching; it begins with a mortgage pre-approval.  Often, first-time home buyers fear getting pre-approved because they’re afraid the lender may tell them they do not qualify for a mortgage or they qualify for a loan smaller than expected.  However, by getting preapproved, buyers will make a financial decision rather than an emotion one.  Contact Mountain West Financial first before you shop and you will save money and have a much smoother transaction.

The pre-approval process will:

• Prepare you the first time buyer for the steps necessary to purchase your home.
• Give you the first time buyer the confidence you need to make the purchase.
• Assist your Realtor in structuring the deal to your maximum advantage.
• Help you narrow your home search.
• Enable you to act quickly to get the very best deal.
• Discover any challenges that need to be worked on early in the process.

Not calling a qualified mortgage professional who is and expert in the area you are shopping for a home first is a step in the wrong direction.  Do yourself a favor and make the call, you will be glad you did.  I recommend two of the best in the business.  Tom Crate can be reached at 909.744.0455 and Marty Sievers can be reached at 909.709.7318.

 

 

 

Mortgage Debt Forgiveness Act to Expire at End of 2012

One of the most helpful laws on the books for underwater home owners is set to expire at the end of this year. At this point, The National Association of Realtors expects to make a strong push to get it extended because the law will likely be needed in the years ahead as lenders undertake more loan modifications for hard-hit home owners

The law is mortgage cancellation relief and it was first passed in 2007 with the National Association of Realtors taking a prominent role as industry supporter. It relieves home owners who get part of their mortgage loan forgiven from having to pay tax on the forgiven portion of the loan for single family primary residences.

Ordinarily, the IRS would count that forgiven loan amount as income. But in light of how hard home owners were hit in the market downturn, it was unrealistic to expect households to pay tax on tens of thousands of dollars on forgiven debt when they lack money to pay their mortgage without a modification.

Now, with the ink barely dry on the $25 billion foreclosure settlement between the U.S., states, and the country’s biggest banks, the likelihood of mortgage modifications picking up is strong.

It’s safe to say many members of Congress want to extend the relief. It has already been extended once, in 2009. And given its strong bipartisan support in both houses, many members can be expected to support extending it further, especially with its need poised to grow.

But in talking with NAR Director of Tax Policy Linda Goold about the issue, the challenge could be in finding a legislative vehicle that can make it through Congress. Goold says trillions of dollars in tax provisions are expiring at the end of this year. Bills for extending expiring tax provisions in the past have tended to be the last pieces of legislation Congress considers before the end of its session, leaving little room for alternative approaches.

What’s more, all of these expiring provisions tend to get considered as a big package. That means mortgage cancellation relief, as popular as it is, could get snagged if this larger tax package gets held up.

Agent "A" or Agent "B"???

 
Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.744.7690

Below, you have the production for two well known agents in the Lake Arrowhead market for the last 12 months.  The fact that the agents work the Lake Arrowhead market is not significant as there are Agent "A's" and Agent "B's" in any real estate market.  As the Broker for the leading real estate firm on the mountain, I track performance of not only my team but our competitors also.  One of these two agents is doing a pretty good job... the other one isn't.

	Agent "A"	Agent "B"
Listings Taken	36	32
Active Listings	18	10
Under Contract	4	0
Sold Listings	9	4
Withdrawn	1	2
Expired	4	16

Both agents had similar amounts of listings that they took over the last 12 months.  However, the results each agent realized were dramatically different.... can you see who did better?  The good news for those sellers working with Agent "A" is that their agent had very few listings expire or withdrawn.  Expired and withdrawn listings represent a sellers choice to not continue to work with that agent.  When tracking Realtor performance, if an agent has a high number of expired listings, that is a key indicator that they often have a great sales pitch, and can get people to list with them, but they fail miserably in the results category. 

Agent "B" took 32 listings last year, 18 of which ended badly with the seller choosing to not continue the relationship.  They were sold upfront by a great pitch, but Agent "B" didn't deliver.

 Unfortunately, many sellers don't have access to the information they need when making a decision on who to work with to help them sell their real estate.  Often the person that appears to be the right person to work with actually is Agent "B"....

 Don't get stuck working with Agent "B".  Contact me directly and I will direct you to an Agent "A".  My cell phone number is 909.744.7690 or email me at steve@cbskyridge.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lake Arrowhead Lakefront Activity for the Last 6 Months

 
Steven Keefe, Broker/Owner 
Coldwell Banker Sky Ridge Realty 

www.mountainmoves.com
steve@mountainupdate.com
909.744.7690

The following report shows all lakefront activity for the last 6 months as of February 16, 2012 as reported to the Rim Association of Realtors.  Lakefront activity for the period saw a significant increase in units over the previous period.  There were a total of 19 sold units, there are 2 currently under contract (in escrow) and a total of 36 that are available for sale ranging in price from $699,000 to $9,975,000. 

For additional information on any of the listings or to schedule an appointment to view available properties, please do not hesitate to contact me on my cell at 909.744.7690 or via email at steve@cbskyridge.com

Lakefronts Sold Last 6 Months
	Asking	Sales	Days on
Address	Price	Price	Market
28906 Palisades Drive	$           675,000	$        709,000	137
237 Blue Lake Road	$           880,000	$        775,000	202
718 Shelter Cove	$       1,250,000	$     1,050,000	276
27781 North Shore Road	$       1,799,000	$     1,655,000	11
711 Shelter Cove Drive	$       1,995,000	$     1,675,000	121
27837 Peninsula Drive S	$       2,185,000	$     2,100,000	92
27571 Meadow Cove Ct.	$       2,300,000	$     1,875,000	209
766 Shelter Cove Drive	$       2,495,000	$     2,325,000	169
28161 North Shore Road	$       2,495,000	$     2,100,000	673
27413 North Bay Road	$       2,595,000	$     2,200,000	199
27621 Meadow Bay Drive	$       2,995,000	$     2,600,000	223
772 Shelter Cove Drive	$       2,997,000	$     2,400,000	0
924 Lakes Edge Way	$       2,999,000	$     2,700,000	399
451 Sky View Ridge	$       2,999,000	$     2,750,000	367
736 Shelter Cove Drive	$       2,999,900	$     2,360,000	430
730 Oak Point	$       3,750,000	$     3,200,000	453
27798 Hamiltair Drive	$       3,750,000	$     3,600,000	433
27825 North Shore Road	$       4,999,000	$     4,425,000	809
27453 Bayshore	$       4,999,000	$     4,100,000	962
Lakefront Listings Under Contract (In Escrow)
	Asking
Address	Price
148 John Muir	$           698,500
755 Wayside Lane	$       1,400,000
Lakefront Listings Available for Sale
	Asking
Address	Price
28956 Palisades Drive	$           699,000
354 St. Hwy 173	$           855,000
28788 Palisades Drive	$           925,000
403 Emerald Way	$       1,049,000
27793 North Shore Rd	$       1,199,000
28803 North Shore	$       1,275,000
28768 Palisades Drive	$       1,450,000
159 Cedar Circle	$       1,499,000
27447 North Bay	$       1,500,000
28853 North Shore Road	$       1,549,000
28937 North Shore Road	$       1,565,000
28806 Palisades Drive	$       1,595,000
27475 North Bay Road	$       1,650,000
28235 North Shore Road	$       1,695,000
201 Blue Lake	$       1,775,000
27849 Peninsula Drive S	$       1,900,000
27447 Bay Shore Drive	$       1,950,000
28019 North Shore	$       2,250,000
27565 Meadow Cove Ct.	$       2,275,000
27965 North Shore Road	$       2,298,000
765 Shelter Cove Drive	$       2,375,000
28025 North Shore	$       2,399,000
875 Shelter Cove Drive	$       2,495,000
27411 North Bay	$       2,499,000
27941 Peninsula Drive S	$       2,525,000
27567 West Shore Road	$       2,600,000
28060 Peninsula Drive N	$       2,995,000
28907 North Shore Road	$       3,250,000
27423 North Bay Road	$       3,300,000
27409 North Bay Road	$       3,300,000
27772 Hamiltair Drive	$       3,400,000
27425 North Bay Road	$       3,650,000
27435 North Bay Road	$       3,695,000
778 Shelter Cove Drive	$       4,900,000
177 Shorewood	$       8,795,000
28751 North Shore Road	$       9,975,000

Stop Renting Now! Calling all first time buyers....

Bad news in the real estate markets brings forth some of the most compelling reasons for buyers.... first time buyers in particular to get off the fence and become a home owner.  In most markets the cost of buying and owning a home has dipped below what it would cost to rent. 

Renting isn't such a great deal.  Its all about economics 101: demand for rentals the past few years has increased dramatically.  Primarily due to foreclosures and distressed sales, number of renters is outpacing the number of available rental properties.  I spent several weeks searching high and low for a rental property for a friend.... it is extremely challenging to find rentals in this market.  This increased demand is pushing up rental prices.  It is expected with the continued demand that rental prices will continue to increase over the next few years. 

The worst of the price declines is likely over....
The future will bring higher prices on homes.  Buyers thinking about buying need to take advantage now before the prices start to increase.

Mortgage Rates are at historic lows.
Never before could someone buy so much house for so little payment... First time buyers in particular are often shocked at how affordable their dream home is at the current low interest rates.

There are multiple programs designed to help new homeowners.
FHA and downpayment assistance programs make purchasing a home in this market possible for many who previously had no idea that they could qualify to buy.  The first step to homeownership is making contact with a loan professional who specializes in first time buyer programs.  Mountain West Financial has made its reputation as a home loan provider who assists first time buyers.  Contact Marty or Tom at 909.336.1793 and they will start you down the path to owning your own home.  Even if you think you won't qualify, make the call.... more often than not, someone will qualify when they thought they wouldn't.

History of Cedar Ridge Lot Sales

Steven Keefe, Broker/Owner  Coldwell Banker Sky Ridge Realty  www.mountainmoves.com steve@mountainupdate.com 909.744.7690 The following chart shows all lot sales from the year 2000 to present.  From 2000 to 2007 which was the last time there was a sale in Cedar Ridge of a vacant lot reported to the Rim Association of Realtors, A total of 36 sales occured. Since 2007 there have been none.  I was flabbergasted to review the data and spent some time reviewing what in my opinion is preventing some sales to occur.   It isn't because no one wants to sell in Cedar Ridge as there have been 30 separate listings in the MLS during that dry spell 27 of which ended in a non sale... either the listing expired, or the seller cancelled the listing.  Currently 3 of the 30 are actively on the market and available for sale.  One is priced above the threshold of what I believe will sell in todays market at nearly $600,000 for 5 acres, and the other two are very much priced above the market and will likely not sell. To be priced competitvely in the current Lake Arrowhead market, we are finding that values have gone back to 2002 levels.  From 2002 to 2006, our market experienced dramatic surges in value.  During that time the values of the lots doubled in value.  Unfortunately, when the market slowed down, there was significantly less demand for vacant land and buyers stopped buying.  Sellers in the Cedar Ridge market have failed to recognized that values have dropped to the 2002 levels and maintained inflated asking prices hoping to recoup their investments.  After analyzing the data , it is my professional opinion that had sellers realized where the current market stood with regard to value and had adjusted the asking prices to be reflective of the current market conditons, multiple lots would have sold during this period of 5 years where there have been no sales. A client approached me this week to evaluate what it would take to effect a sale of his property.  My advice to him was that he review my report and position his lot at $124,990 per acre and he will likely see some activity and be the first in many years to actually sell his Cedar Ridge Lot.  This seller purchased his lot in 2005 for nearly double what I am suggesting that he price it today.  He may choose to wait out the market, which in my opinion will not improve his chances to recoup his investment.  He may choose to list the property with someone else higher than what market tells us it should be listed, in which case, he for sure won't improve his chances to recoup his investment.  Or he can make a business decision to position the property correctly in the market and secure for himself the best opportunity to recoup the most amount from his investment.  Cedar Ridge Lots Sales
2000	Size	Asking	Sale	$/Acre
Lot 131	1.05	165000	125000	119048
Lot 81	1.76	219000	199500	113352
Lot 60	0.84	109000	95000	113095
2001	Size	Asking	Sale	$/Acre
Lot 48	0.74	169900	169900	229595
Lot 118	1.1	79900	79900	72636
Lot 55	1.11	125000	125000	112613
Lot 14	1.02	189000	189000	185294
2002	Size	Asking	Sale	$/Acre
Lot 74	1.06	155000	250000	235849
Lot 75	1.36	135000	135000	99265
Lot 76	2.46	185000	150000	60976
Lot 61	1.07	169500	160000	149533
Lot 66	1.14	129000	119500	104825
Lot 90	0.9	75000	67000	74444
Lot 119	0.89	119000	106000	119101
Lot 122	1.81	229000	205000	113260
Lot 87	1.6	219000	200000	125000
Lot 48	1.03	205000	197000	191262
Lot 112	1.44	170000	156500	108681
Lot 55	1.11	169000	160000	144144
Lot 44	1.4	189000	170000	121429
Lot 125	2.15	229000	219500	102093
2002 Averages				124990
2003	Size	Asking	Sale	$/Acre
Lot 132	0.78	179900	175000	224359
Lot 81	1.76	379999	300000	170455
Lot 118	1.1	110000	100000	90909
Lot 60	0.89	165000	155000	174157
Lot 117	7	529000	485000	69286
2004	Size	Asking	Sale	$/Acre
Lot 26	0.85	115000	115000	135294
Lot 66	1.14	179000	165000	144737
Lot 81	1.76	359000	350000	198864
Lot 26	0.85	159900	155000	182353
2005	Size	Asking	Sale	$/Acre
Lot 79	0.88	267500	255000	289773
Lot 111	0.62	195000	195000	314516
Lot 81	1.76	409000	390000	221591
Lot 82	1.31	165000	165000	125954
Lot 130	1	360000	357500	357500
2007	Size	Asking	Sale	$/Acre
Lot 90	0.9	225000	190000	211111
No Other Sales After this Date For a custom market evaluation of your mountain real estate, please don't hesitate to contact my office.  I would be happy to provide you free of charge a detailed analysis of the current market value of your property. I can be reached via email at steve@cbskyridge.com or on my cell phone at 909.744.7690 Steve Keefe

Bob Bailey's Winter Update

 

To download Bobs full 4 page report, click on the link below.  I use Bob's insight daily to better comprehend what is going on in our market.  I consider him to be one of the most knowledgeable profesessionals in our mountain real estate market.-  Steve Keefe, Broker/Owner

 

Download Bailey Winter 2012