Standing Out In The Midst Of Multiple Offers
A report from the Center for Public Integrity. “The National Association of Realtors, a major outside spender in the election, reported $500,000 in television ads supporting Rep. Brad Sherman, D-Calif., in his quest to be elected in California’s 30th District. In May, the National Association of Realtors spent more than $709,000 ensuring Rep. Gary Miller, R-Calif., won his primary in California’s 31st District, as the Center for Public Integrity previously reported. Miller is the founder of a homebuilding company and oversees the real estate industry as a member of the House Financial Services Committee. Sherman also sits on that committee.”
“Both of these committees deal with issues of interest to realtors, including disaster insurance and Fannie Mae and Freddie Mac.”
The Orange County Register in California. “On Nov. 8, Real estate broker Gary Thomas, 68, will be elevated to the highest office in realty, taking the oath as the 2013 president of the National Association of Realtors. He will be the first NAR president from Orange County in at least 84 years. But others say Thomas is unfit to lead the nation’s foremost real estate group because he filed for personal and corporate bankruptcy in the past 17 months, walking away from millions of dollars in debts.”
“In late 2008, RE/MAX sued Thomas for failing to pay more than $1.7 million in fees and dues owed under his franchise agreement. He settled out of court for $1.2 million. Court records show several lawsuits filed by landlords accusing Altera of failing to pay rent. In January 2011, an Altera Real Estate agent sued Thomas, accusing him of failing to pay $128,000 in commissions she had earned from the sale of five homes. When she asked for payment, Thomas told her Altera had used her commissions to cover operating expenses, the lawsuit said.”
“Fifteen days after the agent sued, Thomas’ corporation filed for bankruptcy. He filed for personal bankruptcy this past June. The combined personal and corporate debts from the two bankruptcies totaled $13.2 million, while the combined assets totaled $1.7 million. Thomas’ creditors likely will get pennies on the dollar when the bankruptcies are completed.”
“Supporters counter that you can’t blame a Realtor for misfortunes suffered in the worst real estate crash in 70 years. ‘Has he had some unfortunate situations? Like all of us, yes,’ said former NAR President Dick Gaylord of Long Beach. ‘But I don’t think anyone thinks he’s anything but competent, hardworking and honest.’”
The Signal. “The Federal Housing Authority recently backed off on some of the agency’s restrictive rules that experts said were hurting the real estate market’s recovery and hampering the selling and buying of condominiums. Many local association complexes, however, don’t understand that qualifying their complex for FHA financing will mean an increase in owner-occupied units and fewer renters, said Kathy Salisbury with Triple D Realty.”
“‘You get a decline in prices in a heavily tenant-occupied complex due to lack of affordable financing,’ she said. ‘FHA financing would tremendously help the condo and townhome market and you would begin to see recovery within those complexes with true pride of ownership from owner-occupants.’”
The Burbank Leader. “Forty-eight homes were sold last month, a nearly 23% increase from 37 during the same time last year, according to statistics compiled by the Burbank Assn. of Realtors. However, the number of houses on the market dropped to 122 last month, a 38% drop from the 198 in August 2011. The median price also edged down slightly to $497,000 from $500,000. Elena Hubbell, a Realtor with Dilbeck Realtors in Burbank, said the number of short sales and foreclosures entering the market is remaining steady and probably won’t decline any time soon. However, distressed homes, while getting multiple offers, are keeping median prices from rising.”
“Hubbell, who is on the board of directors of the Burbank Assn. of Realtors, said she tells potential buyers that now is the time to make an offer due to low prices and interest rates. However, because of the competitiveness of the local market — especially with standard sales — she cautions them to at least meet the asking price or go a little higher so they’ll stand out in the midst of multiple offers. ‘You don’t assume you can get it cheaper,’ she said.”
The Glendale News Press. “Significantly more single-family homes and condominiums sold in Glendale last month compared to August 2011, but the number of homes on the market continues to dwindle, which may be driving up median prices for condos and higher-end properties, according to the latest real estate figures. Rick Barnes, a broker with Real Estate One in Glendale, said the housing inventory continues to dry up. ‘I don’t remember it being this tight,’ said Barnes, who has been in the real estate business for 30 years.”
“He said that as median home prices edged up this spring, banks started releasing more short sales onto the market, driving prices back down. Homes valued at more than a $1 million are actually selling for much less, which masks the true median price for mid-range homes, said Barnes, who is president-elect of the Glendale Assn. of Realtors. Barnes said there are still a lot of investors snatching up short sales and good deals by paying cash. However, he added that some of the those investors are actually taking out loans from other investors, fixing up the home — sometimes with poor quality and non-permitted materials — and selling it to pay back the loan and make a healthy profit.”
“‘It’s really an unusual market,’ Barnes said.”
The Bakersfield Californian. “In Bakersfield-Delano, 44.9 percent, or 66,424, of all residential properties with a mortgage had negative equity as of the second quarter of the year compared with 46.8 percent, or 69,179 properties, in the first quarter, according to CoreLogic. Another 5.4 percent were in ‘near negative equity,’ the company said.”
“The region’s huge number of upside-down home loans is one of the factors contributing to a super-low inventory of homes for sale locally, said Scott Tobias, president of the Bakersfield Association of Realtors. ‘There just aren’t enough homes on the shelf,’ he said. ‘It makes it difficult not only to buy, but also to negotiate.’”
“The situation has ramifications beyond the housing market. Prior to the real estate crash, homeowners frequently tapped equity to obtain money to start or expand a business. Small businesses are a major source of new jobs. ‘Now, not only have the lenders tightened up lending standards, but basically the collateral source disappeared, so it’s kind of a double whammy,’ said Kelly Bearden, director of Cal State Bakersfield’s Small Business Development Center.”
The San Gabriel Valley News. “Unemployment rates declined throughout Southern California last month and the Inland Empire led the way with a drop of nearly half a percentage point. No one would deny that things appear to moving in the right direction. But many cities in the Inland Empire still have alarmingly high jobless rates.”
“‘L.A. County is looking a little bit better,’ said Jordan Levine, an economist and director of economic research for Beacon Economics in Los Angeles. ‘We’re in our 14th month of year-over-year increases in home sales in California, and that’s starting to give way to home price appreciation.’”
The Victor Valley Daily Press. “Around 2,000 Victor Valley residents turned out for the High Desert Regional Job Fair Wednesday at the San Bernardino Fairgrounds, with lines stretching around a quarter of a mile out the door and into the parking lot. Forty-eight employers with a total of 841 job openings took part in the event, according to Brad Gates, one of the coordinators.”
“California’s official unemployment rate is 11.2 percent. But when those who have given up hope of finding work are included, California’s jobless rate is 20.3 percent — comparable to the Great Depression, according to the Bureau of Labor Statistics.”
The Desert Dispatch. “Barstow resident Vincent Hernandez spends at least five hours every day hunting for a job in retail management. Hernandez has been searching for full-time work since May. He volunteers at the nonprofit organization Desert Manna, where he assists Barstow’s unemployed with their job search. ‘I have 10 years of retail management experience and if I can’t even get a job in fast food. It just shows that it is a bad economy,’ he said.”
From KFSN-TV. “Hundreds of people come to Merced County’s Worknet office each week for help finding jobs, education, and training. That includes Kendall Ross, who lost his manufacturing position when Arvin Sango closed its Merced auto parts plant in 2010. He’s now packing produce to make ends meet. ‘Yeah, right now I’m making minimum wage, and it’s like a crazy schedule,’ Ross said.”
“But he and other job seekers are happy to hear the county’s unemployment rate is dropping. It’s down to 15.9 percent, a one point one percent decrease from the same time last year.”
The Oakland Tribune. “The Bay Area resumed its role in August as the strongest job creator for the Golden State, state labor officials reported Friday. Bay Area employers added 6,100 jobs, which was 51 percent of the 12,000 jobs added statewide, according to the state’s Employment Development Department. The Bay Area’s employment surge appears poised to persist, primarily because businesses that wish to avoid hiring more workers are using technology tools to increase productivity, economists said.”
“‘Bay Area companies supply the software, communications tools, hardware, social networking and Internet products and services that employers demand,’ said Jordan Levine, an economist with Beacon.”
The Central Valley Business Times. “High unemployment, high poverty rates and a lack of workers to take unskilled agricultural jobs are combining to throttle any hope of an economic recovery for the Central Valley, says a report by Bill Watkins, executive director of the California Lutheran University Center for Economic Research & Forecasting. ‘Employers throughout California complain of a lack of qualified workers when the employers do have job openings. Safety-net policies contribute,’ he says. ‘California, with about 12 percent of the United States population has over 30 percent of the United States’ welfare recipients.’”
“Mr. Watkins says there are other contributing causes as well, especially education. ‘California, in spite of the vast sums spent on education, has bad educational outcomes. Huge numbers never graduate from high school. Even larger numbers graduate, but are unequipped to be productive workers,’ he says.”
“He also says too many skilled workers are leaving California. ‘California has had negative net domestic migration for two decades now, and the people who have left are not losers unable to compete in California. Instead, they are the ones with the most to gain from a rapidly growing and dynamic economy. If they are not in tech, they can’t find a rapidly growing dynamic economy in California. So, they go where they can find it,’ he says. ‘Everyone that leaves takes a bit of California’s future with them.’”
