Welcome to the Coachella Valley! Home to famous cities such as Palm Springs, Indian Wells, La Quinta & Indio. Whether you're thinking about investing here, already have, or are a Full-Time Resident - this post is for you! We want you to know and understand what's happening here. Hopfully you find it helpful! Please let us know if you have any questions or would like further information, we would be more then happy to assist!
A spin-off from our good friend Mirela Monte and her Fabulous blog titled: Snapshot of the Real Estate Market we thought it would be easiest to respond via blog post - mostly because our answer was so lengthy and detailed, but also because the information is GREAT for all our readers!
Mirela brilliantly asked key questions which have all been addressed by not only us, but other Realtors® throughout our Nation. We encourage you to check out her Snapshot, as well as the comments left by others.
1. How many properties do you have for sale in your MLS?
We based our search on Single Family Res Detch & Attch from 01/01 - 02/19 for 2008 & 2009:
2. How does that figure compare with last year's and the year before?
Our inventory has doubled, tripled, quadrupled etc. YTD
3. What is the sales activity per month on single family homes, condos, multi-family, lands and commercial?
Single Family Res Detch/Attch:
Condominiums Detch/Attch:
Lots and Land:
Commercial:
4. What is the absorption rate for all the above?
17.1 weeks is our Absorption Rate for 2009. Here's how we got it:
# of listings on market = 2003
# sold last month = 507
# sold (507) X 12 (months) = 6,084
6,084 (divided by) 52 (weeks) = 117 units per week
2003 (total Actives) divided by 117 = 17.1 weeks is our Absorption Rate for 2009
~*~*~*~*~*~*~*~*~*~*~*
# of listings on market = 109
# sold last month = 362
# sold (362) X 12 (months) = 4,344
4,344 (divided by) 52 (weeks) = 83.5 units per week
109 (total Actives) divided by 83 = 1.3 weeks was our Absorption Rate for 2008
5. How does that compare with last year and the year before?
Absorption Rate increased over 16 weeks!
6. How do January 2009 sales compare with January 2008 sales?
*We've Closed 145 MORE properties YTD!
7. How does that compare with November and December of last year?
*Comparing 01/2009 to 12/2008 we're 88 Sales behind...
8. What is the best selling product in your market? What is the worst selling product? Why?
Clearly our worst selling product for 2009, so far, is our Commercial Real Estate with our Lots & Land coming in a close second. The Coachella Valley is still growing and our Commercial projects will increase over the next 10 years, however has (like everything else) been greatly affected by this recession.
Our best selling product in the Coachella Valley thus far is our Single-Family Residences; just 13 Sales off track which I think we'll make up before this 1st quarter is over. Buyers are coming out of the wood-work, most antsy to snatch up the deals (A.K.A Real Estate Owned/Short Sale properties).
9. How much of your market is foreclosure related? How many foreclosures have occurred in your market in January & February?
We would say 55% of our Market is Distressed Properties. Here are our #'s:
10. What are your observations on local financing?
The money is there - and fundable. It's all about your CREDIT SCORE!
11. What are your observations on local appraisals?
Ridiculous. Depending on the lender, most appraisers come from OUTSIDE our Valley. Our comps are obviously established by the REO Sales which kill our "normal" properties AND aside from being timid and hyper-sensitive they're adding an additional 10-20% DECREASE IN VALUE based on "a deteriorating market".
12. What is the best advice you would give a Buyer in your market?
In a nut shell? . ..Cash is King - our inventory is your playground!
13. What is the best advice you would give a Seller in your market?
Don't Sell!! JUST KIDDING;) Our advice depends on the Seller's situation, their time frame & reason for selling. Not everyone is in arrears but for those who are, we spend even more energy counseling, educating & assessing their options as well as focus on power pricing & positioning etc.
*Please Keep in mind, this information was pulled on Thursday, February 19th, 2009 around 7PM and is bound to change before Grey's Anatomy starts at 9PM;)
"In Sales, we're not measured by our experience, we're measured by our performance."
As you may be aware, on September 25, 2008, the Governor of California signed Senate Bill No. 133 ("SB 133"), which was effective January 1, 2009. This new legislation instituted a program for the California Department of Insurance to register, regulate and monitor title company sales representatives to address what the legislation referred to as the "problem of illegal rebates and inducements dispensed by title marketing representatives."
The changes to California Insurance Code Section 12404 under SB 133 impact existing title company's sales practices. In addition, there are severe penalties imposed upon a title sales representative (also known as a Title Marketing Representative ("TMR")) found to be in violation of SB 133 including a 5 year revocation of license and monetary sanctions, as well as an investigation and potentially severe monetary sanctions against the Title Company.
Since January 1, 2009, there are a number of newly-prohibited activities and expenditures for Title Companies and TMRs. In these challenging times you may encounter Title Companies and TMRs that try to disregard this new law, but you of course may not accept payments or services that violate the law. The following lists are intended to further educate you and to provide you with an understanding of the prohibited and permitted activities and expenditures under California law.
Prohibited Activities:
1. Indirectly or directly paying (whether personal or business funds) for any food, beverage or entertainment for any 12404 Person (which can be considered to be any brokers, real estate agents, lenders, and current or prospective buyers or sellers), including but not limited to meals, sporting events, movie tickets, gift cards and gift certificates, etc.
2. Paying for any advertising in any newspaper, newsletter, magazine or publication on behalf of or that benefits any 12404 Person.
3. Providing any time or "productive effort" to any 12404 Person that is unrelated to the title business. For example, a TMR cannot be a "courier" for a 12404 Person (e.g., obtaining permits), a TMR can not make phone calls for a 12404 Person, a TMR cannot sit at an open house for a 12404 Person, a TMR cannot prepare marketing or informational materials for a 12404 Person, and a TMR cannot take photographs for a 12404 Person.
4. Paying for or providing assistance with business expenses of any 12404 Person including rent, employee salaries, copiers, facsimile machines, courier services, telephone services or computers. This would also include regularly supplying a 12404 Person's office with drinking cups, pens, tablets, etc., an expense they would otherwise incur themselves.
5. Creating and/or providing marketing/informational materials that are not exclusively related to title insurance. For example, flyers related generally to short sales, foreclosures, REO processes, auction processes, tax issues, loan modifications and refinances, HELOCs, and new construction are prohibited unless they solely discuss how these items are handled in the title insurance process or how these items impact a preliminary title report and title policy.
6. Messenger services between parties to a title order for any items not required by the title company for the processing of the preliminary title report or title policy. Re-direct messenger services is prohibited.
7. Quoting or charging any title fees other than the company's filed rates.
Permitted Activities:
1. Providing education and educational materials if they are exclusively related to the title insurance business and continuing education credits are not offered to the attendees. In addition, the title sales representative cannot provide any food or refreshments at the event.
2. Furnishing promotional items with permanently affixed company logo that have a value of not more than ten dollars each. Bulk items are acceptable provided the total cost does not exceed the ten dollar limit.
3. On individual or multiple properties, in printed form or by electronic media, furnishing Property Profiles with the names of owners of record, descriptions of real property, and property characteristics, including property tax information, the year of construction of improvements to the property, square footage, the number of bedrooms and bathrooms, acreage, and other attributes of or amenities to the property, such as swimming pools, views, zoning characteristics or restrictions, use code designations, and the number of dwelling units of multiple family properties. Comparables and demographic information, however, are prohibited.
4. Providing FARM Packages and Labels that are not personalized for a 12404 Person and that include property information as described above as obtained from the public records.
5. Furnishing Lead Lists that are not personalized for a 12404 Person and are limited to names, addresses, property descriptions, property characteristics and address labels.
6. In conjunction with a particular real estate transaction, furnishing a preliminary title report along with copies of the recorded documents cited in the report; the applicable assessor's maps and tract maps; and the color-coded easements. The Title Company must properly invoice for the preliminary report.
7. Furnishing messenger services for items necessary to the processing and issuance of a preliminary title report and title policy provided it directly relates to an existing title order.
To view the Executive Summary of the new plan proposed by the President, Click Here: Homeowner Affordability and Stability Plan: Executive Summary.
We'll keep you updated on the Homeowner Affordability and Stability Plan as more details and information become available to us. Below is a very informative note from our 2009 C.A.R. President, James Liptak we encourage you all to read. ..
Feb. 18, 2009
Dear Pederson Properties,
Earlier today, President Obama unveiled the Homeowner Affordability and Stability Plan, which will offer assistance to as many as 9 million homeowners, while attempting to prevent the destructive impact of foreclosures on families and communities.
The plan contains three main components, and only applies to primary residences. The loans referenced in the plan cannot exceed Freddie Mac/Fannie Mae conforming loan limits. I've outlined the plan in greater detail below.
The first component is directed toward homeowners suffering from falling housing prices who still have equity in their homes, but no longer have the 20 percent equity needed to refinance. Under the plan, homeowners who have conforming loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance their homes, even if they do not have 20 percent equity left in the house. The U.S. Treasury Dept. estimates that about 5 million homeowners will be helped by this portion of the program.
The second component, known as the Homeowner Stability Initiative, is designed to assist homeowners who are "underwater" on their mortgages. The $75 billion initiative will bring together lenders, servicers, and the government so that all stakeholders share in the cost of the modification. Primary mortgages would be reduced to monthly payments that do not exceed a 38 percent debt-to-income ratio, with the costs of doing so borne by the lender. The government and lender then would split the costs of further reducing the monthly payments until they were at a 31 percent debt-to income ratio. An important aspect of the initiative is that homeowners do not have to be delinquent to participate.
The Homeowner Stability Initiative also will create incentives for servicers, mortgage holders, and homeowners. Servicers would receive an up-front fee of $1,000 for every eligible modification meeting the initiative's guidelines. Guidelines are scheduled to be released by March 4. Mortgage holders will receive an incentive payment of $1,500, and servicers $500, for modifications made on loans that are current but at risk of imminent default.
The final aspect of the Homeowner Stability Initiative is creating clear and consistent guidelines for loan modifications. The Obama Administration plans to work with federal agencies, banking and credit union regulators, and the private sector in order to develop loan modification guidelines that can be implemented across the entire mortgage market. While adoption of the guidelines will be voluntary for the private sector, all financial institutions receiving Financial Stability Plan assistance going forward will be required to implement the loan modification guidelines.
The government estimates that between 3 and 4 million homeowners will benefit from the Homeowner Stability Initiative component of the plan.
The third component of The Homeowner Affordability and Stability Plan is supporting low mortgage rates by strengthening Fannie Mae and Freddie Mac. The Treasury Dept. plans to increase their Preferred Stock Purchase Agreements with both Fannie Mae and Freddie Mac from its current $100 billion in both entities to $200 billion in each. The Treasury Dept. also will continue to purchase Fannie Mae and Freddie Mac mortgage-back securities in order to help promote stability and liquidity in the marketplace.. Additionally, the Treasury Dept. will increase Fannie Mae and Freddie Mac's portfolios by $50 billion, for a total of $900 billion. The Obama Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving home buyers, such as CalHFA. Funding for this will not come from TARP money but from the Housing and Economic Recovery Act.
While some of the details still are being developed, such as the modification guidelines, the Obama Administration plans on using programs and funding already allocated for The Homeowner Affordability and Stability Plan and will need little legislative approval for programs under the plan.
Here we go again, shocking ourselves with our open and honest - yet prideful gesture of letting you all know where you should with out a doubt stop by if you're in the beautiful San Diego area!
Swami's has been an [Encinitas] Local hangout for as long as we can remember. Whether you're stopping by for a quick cup of java before work, a smoothie between errands or refueling after an exhaustive tanning or surf session - Swami's takes care of you & your friends. With a casual and comforting (outside) ambiance, smiling hosts and talented Chef's, Swami's offers a broad menu which accommodates everyone's taste buds & appetites. Breakfast, lunch & dinner with a tremendous smoothie/juice bar - you will feed your body and mind the most healthy & wholesome selections, most locally grown.
Our favorite smoothie is a toss between Nirvana Nectar (Apple Juice, Bananas, Strawberries, Raspberries, Boysenberries, ginseng, protein powder, vitamin C) topped with some bee pollen and the Swami's Surprise (Apple juice, Mangos, Dates, Strawberries) topped with bee pollen...Mmmm'good! From the Juice bar, you can't go wrong with an Apple Hop or Swami's Veggie Mix and remember, you get two free additives (bee pollen, protein powder, tofu, wheat germ, spiralina etc.) and a Smoothie Card for frequent visitors!
Swami's offers the best Specials which change daily - we always recommend whatever is on the grease board! However, they also have fantastic staple faves to remember as a contingency plan. Regardless of the time of day we love the Blueberry pancakes, Swami's Combo (two eggs, home-style potatoes, toast & java), Croissant Breakfast (w/mock bacon), Huevos Rancheros, the Protein Veggie Wrap, Ultimate Veggie Sandwich, Tofu Stir Fry. ..yum!!
The Açaí Bowl continually leaves us speechless and is dirty delish. We've summed it up as simply phenomenal. You can see for yourself why we repetitively order this small piece of paradise.
Same with the B.L.T.A - A traditional lunch preference which is uniquely prepared Swami's Style and tastes ridiculously good! 
As far as salads go, you must try the Swami's Salad! It's loaded with Romaine lettuce, tomatoes, bell peppers, carrots, cucumbers, broccoli, mushrooms, red cabbage, spinach, sprouts, raisins, garbanzo beans, sunflower seeds and avocado! Whew! . ..Getting hungry just thinking about it, let alone gawking at these photos! ;)
Swami's is located at 1163 S. Coast Hwy 101 in Encinitas, California. They are OPEN DAILY from 7am - 5pm and can be reached directly for Take-Out orders etc. at 760.944.0612.
For additional information visit: http://tinyurl.com/Swami-sCafe.
We sure hope you make it over - you will definitely find one of us there. ..
Happy Eating!
A Reminder of "Good Funds Law"
The practices under the "Good Funds Law" will remain substantially the same except that the date of disbursing funds is now specifically governed by statute.
The law reenacts the requirements that checks be deposited prior to disbursement. In addition, the actual day we disburse funds us governed by the type of funds we have deposited into our account.
We intend to follow the disbursement schedule of the "Good Funds Law" and the guidelines set forth by our underwriters. We will be able to do the following:
1. Disburse-funds the same day as our deposit, if we received:
2. Disburse-funds the next day following the day of deposit if we received:
3. Disburse-funds 2-8 days after the date of deposit if we received:
Recording at 8:00 A.M.:
Our 8:00 A.M. recordings will continue to require the funds be deposited the evening before recording and, in most instances, we will be able to disburse our funds the day of recording.
Special Recording:
(In counties that allow special recordings):
We will deposit the funds on the same day as received, and disburse funds on the day following confirmation of the special recording, unless funds were received at least one day prior to the special recording or by wire or cashiers / certified check.
Note: Disbursement by wire has a deadline of 2 P.M. Pacific Standard Time.
Section 23413.1 et seq. of the California Insurance Code
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"Unlocking Your Door to Paradise..." Representing Luxury Real Estate, Buyers, Sellers & Investors in all of Hawai'i & California...Over 30 years of Business & Hospitality expertise to your advantage!
Licensed REALTORS® in both California and Hawai'i
President & Vice President of Pederson Properties, Inc. ~ Representing Luxury Real Estate, Buyers, Sellers, & Investors
Vice Presidents of Pederson Homes, Inc. ~ Exclusive Custom Designed Homes
Partners & Investors in La Quinta Development I, LLC.
e-Pro ~ Certified Internet Professionals
ABR ~ Accredited Buyer Representative's
Graduates of Coldwell Banker University
Representing
California & Hawai'i Buyers & Sellers
New Construction
Golf Course Communities
Investment Properties
Multiple Income Properties
Resort ~ Luxury Vacation Properties
Short Sale, Foreclosure & REO Properties
Memberships
National Association of REALTORS®
California Association of REALTORS®
California Desert Association of REALTORS®
Desert Area Multiple Listing Service
Discovery Land Company
Professional Background
Real Estate Sales ~ California & Hawai'i
Interior Designs
Custom Home Designs
Sales & Marketing
Hospitality, Management
Employee & Guest Relations
Human Resources
Banquet & Catering Convention Services
Corporate Administrative
Wedding Coordinator
Child Care
Contacting Pederson Properties, Inc.
Email: MailTo:AR@PedersonPropertiesInc.com
Direct: 760.333.4777 / 808.205.3000
Websites to Visit
http://PedersonPropertiesInc.com
http://PedersonPropertiesInc.wordpress.com
http://myspace.com/PedersonPropertiesInc
http://brokeragentsocial.com/PPI/
http://tinyurl.com/UniqueGlobalEstates
"In Sales, we're not measured by our experience, we're measured by our performance."
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