Tracy King's Blog

 

Just sold! 5126 Ellenwood Drive just closed escrow - proof that short sales are indeed do-able!  We brought this classic Craftsman bungalow on the market on March 28 of this year, accepted on offer on April 18, and closed escrow on August 29. Just four months to get short sale approval from Bank of America, navigate through buyers' inspections, and close escrow.

 

Here are the details:

Listed on March 28, 2011
Closed on August 29, 2011 - for a final sales price of $584,000!
3 bedrooms, 2 full baths
1,612 sq. ft. house
9,150 sq. ft. lot, with pool

 

 

 

 

 

Just sold! 1145 Oak Grove Drive, in Eagle Rock, sold last week for $535,0o0. This mid-century traditional has 3 bedrooms, 2 baths, plus an entire downstairs for use as a family room, den, and office. The private backyard is perfect for outdoor living with an deck, outdoor kitchen, spacious play area, and dog house.

 

Here are the details:

Listed on July 8, 2011 for $539,000
Sold on August 26, 2011 for $535,000
1,540 sq. ft. home
7,160 sq. ft. lot
Upgrades include remodeled kitchen and baths, central air and heat, and finished garage

 

 

 

 

 

Here’s my take on this report:

Median price means half the properties sold for more than this number and half sold for less than this number. Is it meaningful? Figure this out (all concerning the month of July only):

3 of the sales this year were for more than the highest sale last year

But what is truly noteworthy about this year over last year is:

The number of active listings is over 40% fewer
The number of properties pending sale is 150% more
The percent of properties under contract compared to what is on the market is over 330% more!

The market is much more active right now. Why? We can say it’s low interest rates and that there is a perception that we are truly at the bottom, but we had the same factors going last year. The economic news isn’t much better, in fact, a number of homeowners have decided to sell because the future holds no promise that the picture will improve in the next couple of years. I think the true meaning is that buyers are buying homes to live in because everyone has to live somewhere and many people do not want to rent, and sellers can sell in this market if their homes are priced right.

I'm posting this because it strikes me as good advice that shows some thinking outside of the box for financial planning, which is what I like to think I do regarding real estate. I have subscribed to Justin's email newsletter ever since I saw him speak at a California Association of Realtors conference a few years ago. I have never worked with him, I don't know how good a job he does, but you might want to contact him if you are looking for a Financial Planner. I certainly will.

Justin Krane, a Certified Financial Planner^TM professional, is the founder ofKranefinancialsolutions.com. Known for his simple, savvy, holistic approach to financial planning, he has the unique ability to advise his clients on how to merge their money with their lives, so that they can make sound decisions with their finances, and get more of what they want in their lives.

8 Things I Want You to Know Right Now

1. Try not to panic. It's tough to make money that way.

2.  Keep your eye on the price of gold. For stocks to make a comeback, gold needs to go lower.

3.  The stock market needs leadership from Washington. Obama needs to appeal to business owners and tell Congress to come back from vacation and get a better budget deal done.

4.  If you had a target allocation of 50% bonds and 50% stocks, you probably are now 45% stocks and 55% bonds. Consider rebalancing back to what your initial allocation was.  This is general advice.  I have no idea what your risk tolerance is and when the PERFECT time is for rebalancing.

5.  Company insiders (CEOs) have been buying their own company stocks aggressively. That is a good thing.  Many retail investors have been selling out of mutual funds - great contrarian indicator - meaning the general public makes poor timing decisions.

6.   Based on your situation, consider converting your IRA to a Roth IRA. Talk to your financial advisor and CPA for all of the details.

7.  Call your mortgage person and consider refinancing your mortgage.

8.  Not sure what you should do based on your own circumstances?  Give us a ring.  310-989-0934 or 800-506-6071 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it.. We're here for you.  No judging, just really solid advice to help you figure this financial stuff out.

This newsletter is for informational purposes only and should not be construed as individualized investment advice.

P.S.  Click Here to forward this information to anyone who might be interested.

Have you been thinking about converting your home to solar-powered electricity? As both a homeowner and a Realtor with the EcoBroker and Green Realtor designations, I’ve thought about it for a long time. I want to reduce my dependence on fossil fuels, I want to do my part to End Global Warming, I want to save money on my utilities. Quite honestly, though, the high cost of the equipment, even with generous rebates, has stopped me.

Occidental College is installing a 1-Megawatt solar array on its campus. This is enough to power about 11% of the campus electrical needs, according to Patch.com news (http://eaglerock.patch.com/articles/oxy-offers-2000-solar-rebate). A public meeting was held last night to announce the plan to help neighboring residents and businesses save costs on installing solar by offering a $2,000 rebate that is in addition to any other rebates offered by government and utility providers. Oxy Physics professor Dan Snowden-Ifft gave an overview of the project and introduced representatives from SunPower, the manufacturer of the solar panels, and from Martifer Solar, the dealer who is responsible for the installation on the campus.

Residents and small businesses throughout the Northeast Los Angeles zip codes 90041, 90042, and 90065 qualify for the rebate, plus Oxy alumni, faculty and staff, students and their parents who live in Sunpower dealer areas and own a home.

Check out www.sunpowercorp.com/asp/Occidental for a good summary of the plan with links to registering for a free home evaluation and how to figure out the financial benefits of going solar.

I was pleased to see several past clients of mine in the audience along with other community members who are involved with such groups as the Eagle Rock Community Garden and TERA. If you missed the meeting last night, they are holding another one on September 14. You can RSVP to This email address is being protected from spambots. You need JavaScript enabled to view it.. Those of us who attended last night were able to sign up for a free home evaluation, but you can also sign up on the Sunpower website. In order to apply for the rebate, you have to have the permit from the City of Los Angeles for the installation, which can take several weeks to obtain. Why hurry? Because rebates come and go and if the government or utility that offers the rebate runs out of the allotted funds, you lose out.

If you don’t want to invest in a solar system right now, they even have a lease program that still qualifies for the $2000 rebate!

This is a positive outreach from Oxy to the community. This is the kind of partnership between government, business, and educational institutions that can make our community better and greener while it benefits individual homeowners. Save Money! Go Green!

Would you like to ride your bike more but feel intimidated by the dangers of riding through city streets? Try joining an outing sponsored by a bicycling organization. It’s safer to be in a group and you will learn how to ride safer on your own.

It had been a long time since I’d ridden my bike. But when I received an email inviting me to join an Urban Expedition exploring Highland Park by bike, I thought why not? It was only 7 miles and promised to visit some interesting sights, so what better way to ease back into cycling, have some fun and learn something?

From their website, www.cicle.org: Cyclists Inciting Change thru Live Exchange (C.I.C.L.E.) is a nonprofit organization based in Los Angeles working to promote the bicycle as a viable, healthy, and sustainable transportation choice.

The Urban Expedition happens about once a month. There were at least 30 riders on this trip, several of whom were volunteers with bright yellow vests who helped guide and keep everyone safe. We met near the Arroyo Seco Stables and rode up the bike path in the LA River to the Audubon Center in Debs Park. Did you know that Debs Park is the 4th largest park in the city of Los Angeles? It has over 150 acres of largely wild hillsides with mostly native plants to hike and explore. The Audubon Center was opened in Debs Park in 2003, and was instrumental in making the park safer and more accessible to families and individuals.

Did you know that the Audubon Center is the first LEED-certified building in the country? (LEED = Leadership in Energy and Environmental Design). The director of the Audubon Center, Jeff Chapman, told us about the site and then led us on a hike on the butterfly nature trail.

Jeff is a regular participant on these urban bicycle adventures and he rides his bike to work from his home in Eagle Rock. The Audubon Center is a very kid-friendly place, offering lots of fun ways for kids to learn about and play in nature. For adults, there is a Solar System Hands-on Training for Maintenance & Design class that meets the 3rd Saturday of each month. For $20 per class, you can learn how to better understand solar systems for your own use or even to work in the field. For all ages, they offer a free Friday film night preceded by a bird walk. Check out all the possibilities at http://ca.audubon.org/debs_park.php.

We rode on to the Milagro Allegro Community Garden (www.hpgarden.org), a project comprising 32 garden plots, monthly educational classes and workshops on gardening and other topics, and an after-school nutrition, cooking and gardening program (“LA Sprouts”) for elementary school students aimed at promoting healthy eating habits. Check out their website to read about the history of how the garden was acquired, named and constructed, all good stories.

What I love about this garden is that it is yet another example of the population of individuals in Highland Park who think for themselves to find ways to make their community better for everyone. In this case, they saw a way to make a community garden out of a city-owned vacant lot that was slated for public parking in a neighborhood where there was already plenty of parking.

We cycled on to Cafe de la Leche, a coffee house in Highland Park that features the first bike corral installed by the City of Los Angeles. The owners of this popular spot are living the urban localism dream, in my opinion. Matt and Anya Schodorf live and ride their bikes in Highland Park, saw a need for a good local coffee spot and have very successfully opened one. But they went further: they recently opened Schodorf’s Luncheonette in the same block where they offer yummy sandwiches and salads from 11 till 3 everyday. Matt and Anya exemplify the diverse creative look and spirit of Highland Park. Check them out atwww.cafedeleche.net, stop in at the 2 venues, live some of their dream. Maybe you’ll have one of your own!

Besides meeting some interesting people, learning about some cool places, and having a nice bike ride, I learned some better bike routes through Highland Park. We started off along the LA River bike path to Debs Park, then took a circuitous route over to the community garden. To reach Cafe de Leche, we rode up Avenue 56 from Figueroa towards York (a more level route than I would have done on my own), then parallel to the busy York Blvd on the much quieter Buchanan Street. Circling back to the start of our trip we rode in the bike lane that extends along much of York Blvd.

I really enjoyed this outing and plan to do more. Slowly, Los Angeles is becoming more bike-friendly through the efforts of groups like CICLE and more. Even the mayor is more sensitive to the needs of bicyclists (especially since he was in a bicycle accident) and has pledged to add more bike lanes at a greater rate than has been done in the past. The City of Los Angeles will never become a city like Davis where the bicycles outnumber the people, but who would have thought even 10 years ago that we would have the support of City government like this?

Kudos to the bike activists! Here is a list of some of the resources, groups and events you can explore:

LA Bike:
www.la-bike.org

Sunday Funday rides and the annual LA River Ride:
http://www.labikepaths.com/

Mayor Villaraigosa's Bicycle Plan:
http://latimesblogs.latimes.com/lanow/2011/07/la-mayor-pushes-bicycle-plan.html

Lots of great how-to info plus calendar of events:
www.cicle.org

Here is a table that illustrates the number of sales and percentage of distress sales over the last 3 years in Eagle Rock 90041. The question is, what does it mean? There’s a flipflop from a greater number of foreclosures in 2009 to more shortsales in 2011. Distress sales as a whole dropped in 2010 and have increased again so far in 2011.

My guess, and it’s educated but still a guess, is that the lenders were very resistant to doing shortsales early on and have finally bowed to the inevitable. As more distressed homeowners are able to sell short, there are fewer foreclosures. The more positive numbers in 2010 I attribute to the peak of the “double dip.” Or you might look at the whole thing as our thudding along the bottom.

There is a lot of talk about “Shadow Inventory,” which is distressed properties that might come on the market. This includes properties that have notices of default filed (the homeowner has stopped making mortgage payments), have notices of trustee sale filed (they haven’t brought the loan payments current and are scheduled to go to foreclosure sale), REO or bank-owned or 3rd party owned (sold at trustee sale). It also includes properties that are “upside-down” which means the property is worth less than what is owed. This can be a huge number and there is no way to track what it is. The fear of “Shadow Inventory” is what if a lot of these distress sales come on the market at once? What will that do to the rest of the market

Personally, I think that is a big “if.” If it hasn’t happened yet, why would it happen now? One reason could be if we had a major economic setback. But believe it or not, we have actually been out of the recession and experiencing a slow (excruciatingly slow) recovery for the last 2 years, according to the National Bureau of Economic Research. Another reason could be a drastic change in mortgage lending in terms of either interest rates or underwriting guidelines.

Hi Everyone!  My restaurant guide has been updated with some great local spots - check it out!

July 2011 Restaurant Guide

Celebrating Eagle Rock’s 100th year, the free fireworks display at Eagle Rock Park brought the community together with a big lovely bang. It seemed like the whole town turned out--we had to park many blocks away and hike in to the park. Ronny and the Classics played some good old Rock and Roll. There were booths staffed by the various Eagle Rock civic groups from TERA to the Chamber of Commerce to the Eagle Rock High Boosters. Classic cars parked on the field provided more browsing opportunities. There were food booths for everything from funnel cakes and kettle corn to Chinese food. We had some very tasty Argentinian grilled sausages spiced with ChimmiChurri sauce served in a roll with fresh salad and rice.

The weather couldn’t have been better: not too hot yet clear and balmy.

The crowd was mellow and friendly with lots of kids, lots of families. We all oohed and aahed at the fireworks which were at least 15 minutes of colors and swizzles and sparklers and booms. The crowd cheered and celebrated and then we all walked back to our cars. Happy 3rd of July, Eagle Rockers!