Thursday, November 10, 2016

HIGH HOME PRICES DRIVE PEOPLE OUT OF CALIFORNIA

By Kevin Smith, San Gabriel Valley Tribune  POSTED: 11/09/16

California’s warm weather, sunny beaches and world-class schools have lured people to the Golden State for decades but rising home prices are turning that equation around.

Data analysis firm CoreLogic says that for every home buyer coming into California another three are selling theirs homes, packing up and moving out.
The trend of out-migration was also noted in a trio of reports released earlier this year by Beacon Economics. Beacon noted that 625,000 more U.S. residents left California between 2007 and 2014 than moved into the state. The vast majority ended up in Texas, Oregon, Nevada, Arizona and Washington.

The search for more affordable housing is sending low and middle-income workers out of the state, while higher-wage workers continue to move in, which argues against the theory that high taxes are driving people away.“California has an employment boom with a housing problem,” Christopher Thornberg, a founding partner with Beacon, said the reports were released. “The state continues to offer great employment opportunities for all kinds of workers, but housing affordability and supply represent a significant problem.”

Recent figures from CoreLogic reveal how much home prices have risen over the past year. Azusa’s median home price for September was $449,250, up nearly 20 percent from the year-ago price of $375,000. But bigger year-over-year increases were seen in such cities as Foothill Ranch (26.9 percent), Westlake Village (25 percent), La Canada Flintridge (22.3 percent) and Chino Hills (20.4 percent), among others.

Mel Wilson, broker and owner of Mel Wilson & Associates Realtors in Northridge, said many people who are near retirement or living on a fixed income are looking for a less costly lifestyle. “I see that more in some areas of the baby boomer population,” he said. “As they retire they are trying to figure out how they can live but not outlive their money. If you are a boomer and have owned your home for 20 years or more you will have quite a bit of equity built up.”

Many baby boomers are moving to Nevada, Arizona, Idaho, Georgia or North Carolina where home prices are considerably lower. Still others are relocating to Texas. Home prices are cheaper there, he said, although property taxes are higher.


Wilson said high housing prices are also impacting younger Californians. “Some people in their early to late 20s are living with their parents after they get out of college because they’re saddled with so much student debt,” he said. “When they get to their mid to late 30s they’ll get help from their parents or grandparents with buying a home.” Wilson said California home prices have risen in part because of a lack of inventory.

Sunday, October 30, 2016

SO. CAL HOMEOWNERSHIP - LOWEST

New census data show Los Angeles and Orange counties have the lowest homeownership rates in the nation. In the 2nd quarter, only 46.5 percent of local residents lived in a home they owned. The Los Angeles and Orange County region had the lowest homeownership rate in four out of the last five quarters among the 85 metropolitan areas tracked by the U.S. Census Bureau.

The lack of affordable housing drives these numbers. This lack of So. Cal. affordable housing has very negative implications for our regional and state economies. Area businesses have an ever increasing challenge attracting and retaining talent. Too many businesses are expanding or moving out of state to locals where  housing is more affordable. Housing affordability (reflecting the American Dream of Home Ownership) is high on the list of factors influencing high demand prospective employee employment decisions.

Looking from a more personal perspective, just think of the many So. Cal families and parents who sadly experience their young adult children (and grand children) moving out of state where housing is affordable and the American Dream is so much more attainable.

Saturday, October 29, 2016

336 MAY AVENUE MONROVIA

SOLD OCTOBER 17, 2016      ASKING PRICE:  $650,000     SELLING PRICE $640,000


Friday, October 28, 2016

1056 ENCANTO DRIVE ARCADIA (LOWER RANCHO)

SOLD     AUGUST 5, 2016    Asking Price: $3,680,000    Sale Price $3,330,000




Monday, October 3, 2016

Get the Top Dollar for Your House

So you're getting ready to sell your house. Just thinking about it can be an overwhelming experience. 
HIRE A PROFESSIONAL. A Realtor who is successfully moving properties in your neighborhood and comes with references will likely get you a better price for your home than you could get on your own. Most nonprofessionals (homeowners) end up losing more in the transaction than the commission they would have paid a professional. 
NO RADICAL CHANGES. Should you remodel the kitchen? Replace fixtures in the bathrooms? Probably not, unless they aren't working. Often such updates done to achieve a higher sales price don't pay off. Almost anyone buying your home will want to make their own changes, so you are not likely to recoup your time and money investment. Unless your Realtor recommends major changes like a new roof or exterior paint job, hold off and put your energy into other areas. 
APPEARANCE. Curb appeal is the impression your home makes when a potential buyer sees it for the first time. —Repair cracks in the driveway and on the walkways leading up to your home. —Keep the landscape neat and tidy. Flowerbeds should be blooming, weed-free and well-cultivated. —Make sure the home looks freshly painted. A good scrub down might do the trick. —Keep the garage door closed. —Make sure garbage cans, tools and outside clutter are completely out of sight. 
INSIDE CLUTTER. You want the inside of your home to appear as large as possible. That means the clutter in all of the rooms has to go. And don't stuff it into the closets and cupboards. They need to be clutter-free and neatly organized, too. Motivated buyers look behind every door. Remove most or all of the items from your kitchen and bathroom counters. You want storage areas to look spacious, so take items out of the closets and clear shelves of knickknacks. Pack up your collectibles if they are visually overwhelming. Leave only a few tasteful decorator items on the mantle. Your goal is to create a simplified and calm atmosphere. Remove signs, pictures or other wall hangings that could be construed as offensive. Remove all the papers, magnets and coupons from the refrigerator. There should be nothing on the ground but floor coverings and furniture. 
CLEAN. Soap and water are cheap. The cost to get your house ready to sell will come in terms of time and elbow grease. Your home should be so clean that a Marine sergeant inspecting it with a white glove could not find a single exception. 
BATHROOMS. Sanitize and scrub the bathrooms until they sparkle. They can be impeccably clean even if they are old. Shine the faucets and fixtures until they gleam. Leave no water spots. All toothbrushes and products should be out of sight. Clean every trace of soap and scum from the tubs and showers. Clean shower-door tracks with an old toothbrush, removing every trace of gunk. FLOORS. No matter how old or worn your carpets are, have them professionally steam-cleaned. If you have hard floors, clean, wax, polish or do whatever is necessary to make them glisten. Scrub the corners even if you're sure no one will ever look there. VERTICAL SURFACES. Clean the baseboards, and scrub the woodwork and walls in every room
FURNITURE AND FIXTURES. Dust and polish until there isn't a single speck of dust anywhere. Vacuum all upholstered furniture. If you have so much furniture that your rooms appear crowded, move some of it out. Stand back and look at each room through the eyes of a stranger. Rearrange things to give a more pleasing visual impression.

Wednesday, July 6, 2016

Foreign Buyers Flood US Real Estate, But Buy Cheaper Homes Diana Olick | @DianaOlick The appetite for U.S. real estate continues to flourish, but international buyers are shifting their sights from luxury to less-pricey properties. This may be due to overall higher home prices, along with a stronger U.S. dollar, which both cost foreign buyers more at the negotiating table. There are also fewer nonresident foreigners investing in the market. "Weaker economic growth throughout the world, devalued foreign currencies and financial market turbulence combined to present significant challenges for foreign buyers over the past year," said Lawrence Yun, chief economist of the National Association of Realtors (NAR). "While these obstacles led to a cool down in sales from nonresident foreign buyers, the purchases by recent immigrant foreigners rose, resulting in the overall sales dollar volume still being the second highest since 2009." Chinese investors negotiate at the US-China Real Estate summit & trade fair in Beijing. (File photo). Zhang Peng | LightRocket | Getty Images Chinese investors negotiate at the US-China Real Estate summit & trade fair in Beijing. (File photo). Foreign buyers purchased $102.6 billion of residential property in the U.S. between April 2015 and March 2016, according to NAR's annual report on international activity in U.S. real estate. That is a 1.3 percent decline in dollar volume from the previous survey. The number of properties purchased, however, rose 2.8 percent to 214,885. The value of homes bought by foreigners was typically higher than the median price of all U.S. homes. "The slight drop in dollar volume can probably be accounted for based on the types of properties purchased, and the locations of many of those properties. We've seen at least some evidence that foreign buyers — both investors and people just looking for a home — have begun looking beyond expensive markets like San Francisco, New York City and Washington D.C., and buying properties in smaller, less-expensive cities in the Southeast and Midwest," said Rick Sharga, executive vice president at Ten-X (formerly Auction.com), an online real estate marketplace . Another major shift was in the makeup of international buyers. Chinese purchasers continued to outpace all others, with their dollar volume exceeding the total of the next four ranked countries combined. Their dollar volume of sales, at $27.3 billion, was a slight decrease from last year's survey but was still three times as much as Canadian buyers, who were ranked second. Chinese buyers also bought the most expensive homes at a median price of $542,084. "Although China's currency modestly weakened versus the U.S. dollar in the past year, it's much stronger than it was five to 10 years ago, thereby making U.S. properties still appear reasonably affordable over a longer time span," wrote Yun in the report. Given today's volatility in global financial markets, real estate is one of the safest investments available. U.S. real estate in particular is relatively inexpensive compared to properties in Asia. "The explosive growth of the Chinese economy created a very large number of very wealthy people. As that country's economy has slowed down, those individuals are looking for better investment alternatives, and many have concluded that U.S. real estate is a smart bet," added Sharga. With economic instability and political turmoil outside of the U.S. likely to persist, the world view of American real estate as a safe investment should keep demand firm even as pressures from a stronger dollar continue to weigh down on affordability." As for U.S. destinations, five states accounted for half of foreign buyer purchases: Florida, (22 percent), California (15 percent), Texas (10 percent), Arizona and New York (each at 4 percent). Latin Americans, Europeans and Canadians, who historically favor warmer climates, were most prevalent in Florida and Arizona.

Tuesday, July 5, 2016

CITIES CANNOT HAVE IT ALL

The Housing Trilemma   Josh Lehner    6.8.16

Like most things in life, Cities cannot have it all  - when it comes to strong economy, high quality of life and affordability. 

Every city wants to have a strong local economy, high quality of life and housing affordability for its residents. Unfortunately these three dimensions represent the Housing Trilemma. A city can achieve success on two but not all three at the same time. Underlying all of these tradeoffs are local policies as well.

The reason these tradeoffs exist is mostly, but not entirely, due to market forces. People want to live in cities with a strong economy and high quality of life. Increased demand for housing leads to higher prices and lower affordability. Nice places to live get their housing costs bid up due to strong demand.  The opposite is true as well. Regions with under-performing economies and lower quality of life do have better affordability.

Clearly a few patterns emerge. In particular the popular metropolitan areas stand out, not least because their eroding housing affordability is constantly discussed. What you could call the cool city profile is seen in the Denver’s, Portland’s and San Francisco’s of the world. In a way, they are victims of their own success. Their strong regional economy and high quality of life do come as the cost of lower housing affordability.


Wednesday, June 1, 2016

HOME SALE PRICES AND INCOME GROWTH

Residential sales levels are constrained by a lack of new inventory.

MAY 2016 | BY LAWRENCE YUN

Notwithstanding the ups and downs of the transaction pace, there appears to be a steady stream of buyers in the market, so we can expect sales to hold steady this year and settle at a pace close to where they were at the end of 2015.

The chief constraint continues to be inventory levels, which remain historically low. There were only 2 million homes available for sale nationwide at the end of March. That’s just a 4.5-month supply at today’s sales pace. Additional inventory will spur more transactions and moderate home-price growth.


The latest annual home-price growth of 5.7 percent is unsustainable because incomes are rising by only 2 percent per year. Either demand will have to fall or supply will have to increase to align price and income. Many potential first-time buyers are telling us they are less likely to buy now, since prices are moving beyond the affordable range. That is why first-time buyers currently account for just 30 percent of the market, compared with the more typical 40 percent.

Eric Rosa comments - So what else is new. In the end, home sale price increases are dependent on income growth.

Sunday, May 29, 2016

EARTHQUAKE INSURANCE - WEIGH THE RISK AND COST

The San Andreas – Locked, Loaded and Ready to Go

Seismologist warns the “Big One” is Imminent

Susan Williams   

In his recent keynote at the National Earthquake Conference, Thomas Jordan, director of the Southern California Earthquake Center declared that, “The springs on the San Andreas system have been wound very, very tight. In particular, the southern San Andreas fault looks like it’s locked, loaded and ready to go.” The Pacific plate is slipping northwards along the North America plate, taking cities such as Los Angeles, San Diego, Santa Barbara, San Francisco and Monterey along for the ride, while other California cities sit directly in the fault zone.

A 2008 USGS report based on a simulation of a magnitude 7.8 earthquake on the southern San Andreas Fault warned that such an earthquake could cause more than 1,800 deaths, 50,000 injuries and $200 billion in damage along with severe, long-lasting disruptions.

So what can homeowners do to protect themselves and their property against the next “big one”? First, they should investigate their level of risk. Since typical homeowner’s policies don’t cover earthquake damage, an additional earthquake policy is a smart first move if the property is within a high-risk area. In the past, some homeowners assumed that earthquake coverage was too expensive. However, what many may not know is that rates for earthquake policies from the California Earthquake Authority (CEA) have come down and now include more deductible flexibility.

Retrofitting older homes to mitigate earthquake risk can potentially lower insurance premiums. Simple things like making sure the strapping on water heaters are secure, anchoring large bookcases, TVs, and pictures to the wall and knowing where and how to shut off gas and water valves can help homeowners protect their home and belongings.


Finally, everyone should know what to do during an earthquake – DROP! COVER! HOLD ON! Every at-risk family should have an earthquake plan that includes who to contact and where to meet if an earthquake hits. 

ANEMIC ECONOMIC GROWTH -WHAT EFFECT ON HOME PRICES

Q1 GDP Revised Up to 0.8% Annual Rate

by Bill McBride on 5/27/2016 08:33:00 AM

From the BEA: Gross Domestic Product: First Quarter 2016 (Second Estimate)

Real gross domestic product -- the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production, adjusted for price changes -- increased at an annual rate of 0.8 percent in the first quarter of 2016, according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 1.4 percent.

Eric Rosa comments - What effect does anemic  GDP growth have on national home prices? On first glance, one would think that slow growth means family income  growth would also be very slow. That makes sense. And... slow family income growth translates into  slow home price increases. That makes sense. But, maybe that slow income growth  results in more families staying in their homes, not "moving up" and not selling their homes. And just maybe, that lack of homes for sale, low inventory levels, results in prices going up at a pace much faster than GDP growth. I THINK THAT IS WHAT WE HAVE GOING ON RIGHT NOW.

Wednesday, May 25, 2016

WIRE FRAUD AND REAL ESTATE

WIRE FRAUD IN REAL ESTATE TRANSACTIONS HAS BECOME A HUGE PROBLEM. Most real estate transaction funds ($$ dollars) deposits, transfers and disbursements involve Bank wires. Bad guys literally all over the world are trying and  all to often succeeding in fraudulently directing wired funds into their accounts and then "vanishing" with the money.

ALL PARTIES INVOLVED IN REAL ESTATE TRANSACTIONS (BUYERS, SELLERS, AGENTS, LAWYERS, ESCROW PERSONNEL, TITLE COMPANIES) SHOULD USE THE PRECAUTIONS LISTED BELOW.

Precautions related to bank wire transfers include:

ALWAYS PERSONALLY VERIFY wire instructions.

DO NOT AGREE to requests to forward wire instructions to other parties (or their brokers).  

BE VERY SUSPICIOUS of emails with purportedly updated, revised, or corrected wiring instruction It is extremely rare that a lawyer or title agent will change wire instructions during the course of a transaction.

PERSONALLY CALL the party who sent the instructions to confirm the ABA routing number or 
SWIFT code and the credit account number, but do not use the number provided in the sender’s 
email.  A hacker may have inserted a fraudulent telephone number in the email.  Use only phone numbers that you have called before or can otherwise verify. 

MAKE SURE you are not sending or requesting sensitive financial information in emails (e.g., SocialSecurity numbers, bank accounts, credit card numbers, wiring instructions). Also, use strong passwords (e.g., 8 characters including both letters and numbers, nothing obvious) and periodically change your passwords.


DON’T open attachments or click on links from unfamiliar sources because they could contain malware or be a phishing scheme which once opened allows a hacker the same access that you have to 
your computer and accounts.

Saturday, May 21, 2016

MORE CHINESE MONEY COMING TO BUY US REAL ESTATE ?

Chinese U.S. Real Estate Demand Tip of the Iceberg

New study says Chinese buyers will spend $218 billion despite Beijing’s attempts to control capital outflows.

By        ABBY SCHULTZ       May 20, 2016

China’s efforts to stem capital flowing out of the country so its economy, and currency, stabilize, may dampen the fast-and-furious pace of investment in U.S. real estate. But as a new report from the Asia Society and Rosen Consulting Group predicts, China’s controls on this capital outflow only stand to temporarily slow -- and will hardly stop -- the tide of cash streaming to U.S. real estate.

By 2015, Chinese investors were the source of $350 billion into U.S. commercial and residential properties and investments, Rosen Consulting says. Even with tighter capital controls, direct investment into existing U.S. commercial and residential real estate alone in the next five years will reach $218 billion, accelerating through 2025 as China’s economy returns to equilibrium. More startling is Rosen Consulting’s figures don’t capture all the dollars coming from China to the U.S. through such means as partnerships, private equity funds and 
limited liability corporations.

Another crucial insight from the report: Chinese investment in U.S. property to date is the tip of the iceberg of what’s to come. This is true for institutional players, ranging from developers to insurance companies, but it’s also true for China’s wealthy.

The rich are buying homes and luxury apartments, but they’re also investing in funds and partnerships that are buying into commercial projects. An example is Ping An, the Chinese insurer, which is tapping China’s high-net-worth investors for an RMB private equity fund to finance U.S. residential projects in a joint venture with Pacific Eagle Real Estate Fund, the report says.

There are also uncounted smaller real estate investment projects funded by individuals who pool investors together to buy, say, a handful of budget hotels or several apartment units in a high-rise. “That’s going on way below the radar of what can be specifically tracked down and quantified and also from what most people see going on,” says Arthur Margon, partner at Rosen Consulting Group and an author of the report.

One reason U.S. real estate investment by China’s wealthy has only “scratched the surface” is common U.S.-style investing vehicles like real estate investment trusts and private equity funds focused on real estate are relatively new in China, Rosen Consulting says. Both avenues have potential to grow. Investing may also spike if the Chinese government opens its individual investor program allowing for foreign investment into U.S. REITs and other investment vehicles, the report says.

Certainly plenty of Chinese are buying U.S. property for themselves or family members, enough so that China blew by Canada last year as the biggest foreign buyer of U.S. residential properties, purchasing 33,000 homes, according to the National Association of Realtors. The actual number is probably far more as the identity of many investors using trusts and special vehicles to buy U.S. real estate isn’t known.

Home purchases by China’s rich could accelerate as buyers get more access to financing. Between 2013 and 2015, an average of 71% of Chinese home buyers paid for homes with cash, NAR reports. That’s in part because U.S. banks tightened lending criteria for foreign investors post financial crisis. Today some wholesale mortgage lenders are lending to Chinese buyers and Chinese banks with U.S. operations will lend to Chinese investors based on assets they hold in China, the report says.

A global push to expose tax evasion and money laundering by forcing owners of offshore companies to reveal who they are could mute buying enthusiasm, though. Many foreign investors use special purpose vehicles legally for tax and wealth planning, but they still may not want to be named. The U.S. government is piloting a program in Manhattan and Miami that requires foreign property buyers to reveal who they are if they pay all in cash or use a special corporation. If this catches on, some Chinese investors may say ‘forget it’, or they’ll wait until they have a better idea of how the rules will be implemented. “But the motivation to buy among lots and lots of people in China is strong,” Margon says.
Back in China, the government’s attempts to keep capital at home could also mute U.S. real estate buying. Chinese banks, for instance, are being asked to look for over-invoicing of exports, a common tactic for getting money out of China, while state-owned banks are on watching for “unusual transactions” that indicate friends and family are pooling together funds to buy real estate, the Asia Society report says. China limits foreign investment for most individuals to the equivalent of $50,000 a year.

Some big deals, like China’s Gemdale Properties’ high-profile partnership with Hines, a top-shelf global real estate firm, to redevelop Boston’s South Station are moving forward but “we are hearing other deals are happening much more slowly than they did two years ago,” Margon says.
But Rosen Consulting doesn’t expect brakes on capital outflows to last more than two years. That’s because China remains driven to be integral to the world’s global economy. “Our view is these global forces acting on Chinese financial services sector are long-term forces,” Margon says.


Sunday, May 15, 2016

CHINESE POUR $110 BILLION INTO US REAL ESTATE

Investment is set to double in the next five years as wealthy rush to get their money into overseas assets, especially houses

The Waldorf Astoria hotel in New York was bought by the Chinese group Anbang. But Chinese purchases of residential property outpaces commercial deals. The Waldorf Astoria hotel in New York was bought by the Chinese group Anbang. But Chinese purchases of residential property outpaces commercial deals

Chinese nationals have become the largest foreign buyers of US property after pouring billions into the market in search of safe offshore assets, according to a study.A huge surge in Chinese buying of both residential and commercial real estate last year took their five-year investment total to more than $110bn, according to the study from the Asia Society and Rosen Consulting Group.The sheer size of that total has helped the real estate market recover from the crash that began in 2006 and precipitated the 2008 economic crisis, they said.

Chinese investment in property has also helped to inflate prices in other developed countries, notably the UK and Australia in the wake of the dip in world stock markets in 2015.

And despite a slowdown due to Beijing’s subsequent clampdown on capital outflows, the figure for the second half of this decade is likely to double to $218bn, the study said.“What makes China different and noteworthy is the combination of the high volume of investment (and) the breadth of its participation across all real estate categories,” including a “somewhat unique entry into residential purchases,” the study said.

The authors of the study said their numbers, based on public and real estate industry data, understate the total. They necessarily miss purchases made by front companies and trusts that do not identify the sources of the funds.
But the study said Chinese buying of US homes far outpaces its investment in commercial land and buildings.

Between 2010 and 2015, Chinese buyers put more than $17bn into US commercial real estate, with half of that spent last year alone. Unlike many countries, there are very few restrictions on what foreigners can buy in the US.

But during the same period at least $93bn went into US homes. And in the 12 months to March 2015, the latest period for which relatively comprehensive data could be gathered, home purchases totaled $28.5bn.That took the Chinese past Canadians, who have long been the biggest foreign buyers of US residential real estate.

Geographically, Chinese buyers are concentrated in the most expensive markets: New York, Los Angeles, San Francisco and Seattle. Property in Chicago, Miami and Las Vegas is also popular.That focus means they pay well above the average US home price: last year, Chinese buyers paid on average about $832,000 per home in the United States, compared with the average for all foreign purchases of $499,600.

The motivations are broad: some are buying second homes, some are buying as they move to the United States on EB-5 investor visas; some are investing for rental and resale.Most of the money in US homes, the study noted, is private wealth, not corporate.“This familiarity of utilizing real estate as an investment or wealth preservation tool is more prevalent in China and reflects the broader comfort of purchasing second homes in the United States by Chinese individuals and families,” the study noted.

Since last year, there has also been the motivation to get money outside China and into dollar assets amid worry about the continued fall in the yuan, which was devalued slightly against the US dollar in August.The study says it expects a lot more commercial real estate buys in the United States by Chinese companies.



Tuesday, April 26, 2016

Final Arcadia Election Results: Peter Amundson, April Verlato win council seats
By Courtney Tompkins, The San Gabriel Valley Tribune
POSTED: 04/21/16, 11:50 AM PDT |

ARCADIA >>Anti-mansionization candidates Peter Amundson and April Verlato will help lead the city for the next four years, according to final election results released Thursday.

The two received the highest number of votes in a field of six candidates, with Amundson securing 4,122 votes and Verlato capturing 4,077.Trailing behind in third with 3,658 votes was veteran councilman Bob Harbicht, who ran again after taking a two-year break in 2014.Following Harbicht was former Councilman Sheng Chang with 2,603 votes, Sheriff’s Sgt. Burton Brink, who got 1,193 votes and insurance adjuster Paul Van Fleet, who had 92 votes.


Amundson and Verlato will be sworn into office at a special City Council meeting on Tuesday. They join Councilmembers Tom Beck, Roger Chandler and Sho Tay on the dais.

NEW ARCADIA SHUTTLE SERVICE COMPLIMENTS GOLD LINE

ARCADIA TRANSIT INTRODUCES NEW SHUTTLE SERVICE
Post Date:03/10/2016 4:52 p.m.
In conjunction with the Metro Gold Line Opening on Saturday, March 5, the City of Arcadia is excited to welcome the start of Metro Gold Line service to Arcadia. With a large number of people expected to use the Gold Line to reach Arcadia and locations within the City, Arcadia Transit introduces a new fixed route/fixed schedule shuttle service that will operate seven days a week, connecting visitors to some of the more popular destinations.
Shuttle service will run from 7:10 a.m. to 6:20 p.m. during the week and 9:20 a.m. to 6:35 p.m. on the weekends, making fixed stops at Santa Anita Park, Methodist Hospital, Westfield Santa Anita and the LA County Arboretum. This is a free service through June 15, 2016.

The current dial-a-ride, on-demand reservation system will still be available to the general public. However, as of June 16, 2016, it will only be accessible to seniors and those with disabilities. At that time, the shuttle service will be expanded to cover different areas of Arcadia. The general public is encouraged to use this new fixed route/fixed schedule service.

Sunday, April 24, 2016

Staged to Sell: Confessions of a Home Stager

Published on April 15, 2016  •  At Home

With the popularity of HGTV and DYI shows like “Flip or Flop”, “Property Brothers”, and “Love it or List it”, many more homeowners and REALTORS® are familiar with the term, home staging. Before and after images illustrate how staging creates the wow factor both homebuyers and sellers are seeking. Most clients have never used a stager before, and though they have a sense of what the process accomplishes, they are still reluctant to engage a professional.

We asked home stager Judy Sutherland, founder of Stage3Moves, to share her insights about staging homes throughout the Coachella Valley. Here she answers the top questions both agents and homeowners ask about the process, and its results.
headshotCan home staging actually increase the selling price of a home?

Home staging can indeed increase the selling price of a property, as homeowners are more likely to achieve the full value asking price. Recently, Barbara Corcoran, NY Real Estate mogul and “shark investor” on Sharktank, was the keynote speaker at a RESA, (Real Estate Staging Association) National Conference. She advised that ALL homes need staging, but cautions that staging will not result in a greater sale price if the home is not initially priced correctly. That said, I’ve staged numerous homes or condos where the REALTOR® raised their initial asking price after seeing the home staged. In those cases, the new asking price was achieved.

Home staging typically results in a faster sale, thereby reducing the homeowners carrying costs for mortgage, insurance, and utilities. One thing we know is that staging always costs less than the loss of the first price reduction, so from that viewpoint, staging pays for itself.
What is the staging process and how long does it take?

There are two basic types of staging and a third called a “hybrid.” Vacant Staging, as the name implies is for homes that are completely vacant, either those remodeled by an investor or those vacant because the family has already moved out. Staging these homes is vitally important as most people cannot visualize how furniture will be arranged, if their furniture will fit, and what large open spaces are used for. Vacant staging can take as little time as a few days from the initial viewing to installation and showcasing, depending on furniture delivery schedules.

Occupied Staging is for homes that are furnished. Often people are still living in the homes they are selling. Big, bulky furniture makes a room seem small and hard to navigate. Photographs, collectables, and “stuff” distract buyers from focusing on the home’s features. With occupied homes, I assess all of the furniture, artwork, and accessories in every room to see which pieces will make the best arrangement. Once furniture has been rearranged and accessories displayed, the unused items are prepacked and stored for a later move, donated or sold. Occupied Staging can take as little as several days to a week depending on complexity and what needs to be accomplished.
A “Quick-Stage” can happen in several hours starting with a staging consultation to inform the homeowner what they need to accomplish and then working with them to implement it.
“Hybrid Staging” uses as much of the owner’s furnishings as possible and supplements them with some accessory pieces, artwork, or furniture as needed to create an updated look.
Stage3Moves Before&After
Before & After

What are the biggest misconceptions about home staging?
People confuse home staging with interior design. Stagers are not designing for the homeowner; they are creating spaces that are marketable to distinct types of buyers. Many owners think their homes are perfect just the way they are, however it may not appeal to buyers.
Sometimes homeowners like the feel of their newly staged home so much that they question why they are moving. I have been asked by many homeowners for what I call “Staging to Stay” to make homes feel open, updated, de-cluttered, and with better traffic flow.
People get the most benefit from home staging when it occurs before the property is photographed and listed, not after the fact when it hasn’t sold. The first people who view a new property are usually the best prospective buyers. The old adage that “first impressions count” is really true. There have been several cases where I staged a home after it had been on the market for many months. In those cases, it sold quickly, but there had already been price reductions. Staging at the outset may avoid the lower asking price.

Many believe that home staging is expensive, but it can be very affordable. It can cost as little as a just the consultation fee. It will always be less than the first price reduction and usually results in a faster sale, which minimizes carrying costs.


What are your biggest tips for homeowners?
The number one tip for home sellers is to have a one-hour professional staging consultation. It’s well worth the expense and aims to guide the homeowner in accomplishing the staging priorities. For example, de-clutter, pack collections and pictures, and make sure everything is spotless. Donate items ahead of time that are not recommended for staging and that you are not moving (resale shops will gladly pick them up). Store those recliners and other bulky furniture.
What about the exterior?

Curb-appeal is always important. Many prospective buyers drive by a property first before scheduling a viewing to get a feel for the neighborhood and the home. It’s important that the landscaping is well maintained. Sometimes we recommend additional gardening or potted plants to define the entry. Lighting is also vital because many first-time viewers drive-by in the evening. Shrubs, plants, and doorways should be well lit. I recommend updating lighting fixtures.
Make sure the front door is welcoming and the color is in keeping with the palette of the home. Does it need to be replaced or painted? Be careful about choosing door colors that may not appeal to all buyers and seek professional advice if needed.
How about the mail-box? Often the first object I notice in front of a home is a “beat-up” mailbox. This says a lot about how a home is maintained. Add replacing a damaged mailbox to your “to do” list.


In warm weather locations, especially in the desert, where people use their out-door space all year round, it’s very important to stage the yard and pool area. I suggest creating entertainment and seating areas.

Thursday, April 21, 2016

Move over, New York. Beijing is the world's new billionaire capital

By Jonathan Kaiman Contact Reporter Asia China Alibaba Group

China boasts plenty of superlatives: It has the world’s most people, its biggest urban areas and some of its worst air pollution.

Now it has another claim to fame: more billionaires than any other country, according to the newly released Hurun Global Rich List 2016, a respected index of the world’s wealthiest people. Moreover, Beijing, according to the list, has displaced New York as the “billionaire capital of the world,” with 100 billionaires compared with the Big Apple’s 95. Hong Kong, with 64 billionaires, and Shanghai, with 50, also placed in the top five.

After New York, the only U.S. cities in the top 20 were San Francisco, the 12th-ranked city with 28 billionaires, and Los Angeles, No. 19, with 21.

According to the list, released on Wednesday, China is home to 568 billionaires, up 80% since 2013 and surpassing the United States (which has 535) for the first time, despite unprecedented levels of capital flight, a slowing economy and a stock crisis that saw the country’s equity markets plunge by 40% since last summer.

Unlike the U.S. cities, Beijing’s billionaires are all Chinese, Hurun’s founder, Rupert Hoogewerf, said in a phone interview. New York, he said, is “much more international. ... But in terms of super-wealth created, China has been coming up a lot in the past two years, and this is sort of the icing on the cake for it.”

Note - Will this Chinese capital formation result in continued investment in US assets including residential real estate (Arcadia Residential real Estate?) - Eric Rosa  Realtor
Arcadia’s new housing standards will have an immediate impact on neighborhoods

Note- As a realtor working in Arcadia I can attest the the new standards are already having a negative financial impact on tear-down property values. Let's see how over time values will be affected by the new standards which are the result of  so much community  "effort" and dialogue.  Eric Rosa, Realtor

 By Courtney Tompkins, The Pasadena Star-News

POSTED: 04/20/16, 7:13 PM PDT
 |
ARCADIA >> Several residential development projects sitting in the pipeline could be impacted when new housing standards take effect next month, officials said Tuesday.
With a little over 200 projects in various stages of planning as of March 31, Assistant City Manager Jason Kruckeberg said it’s likely that a number of them could be subject to the new zoning codes, which become law on May 20.
The new regulations are part of a comprehensive update to the city’s zoning codes that began nearly two years ago, in part, to fulfill goals laid out in the city’s general plan but also to address residents’ concernsover a controversial development trend known as “mansionization.” The hot-button issue involves demolishing older, smaller homes and replacing them with large ones that often dwarf surrounding dwellings.
Cities across the San Gabriel Valley have taken various approaches to address the issue, including implementing moratoriums on building and/or demolition of older homes, and adopting more stringent building regulations.
Included in Arcadia’s new standards is an element that adds a sliding-scale floor-area ratio for the first time in the city’s history. A floor-area ratio is a development tool that helps determine how large a home can be built on any given lot based on a percentage of the land. Talk of creating a floor-area ratio elicited heated debate on both sides of the issue, with some saying it would help control development and preserve neighborhood character and others saying it could hurt property values.
After very little discussion Tuesday, a rarity for this topic, the City Council voted unanimously to adopt the ordinance and move forward with the residential portion of the zoning code update.
Still, there were concerns about how the city would proceed with pending projects in light of the new regulations, which officials also discussed Tuesday.
Kruckeberg said projects that already have been approved through design review by May 20, either by city staff or various homeowners associations’ architectural review boards, will be grandfathered in under the current codes. Any project that has been issued a “notice of pending decision” by the city by that same deadline also would be processed under current regulations, according to a staff report.
“We felt that was a fair way to regulate the projects in the pipeline in that the majority of projects … would still be able to continue with those rules and we wouldn’t be changing the goal posts on them,” Kruckeberg said.
As of March 31, the city had 205 single-family projects in the pipeline, with 109 in design review. Of those 109, 47 have already been approved and 62 are still awaiting approval, Kruckeberg said.
In addition, there were 96 projects in plan check as of March 31. All of these projects will proceed under the current regulations.
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Councilman Roger Chandler said the intent is not only to be fair, but to avoid a rush of incomplete projects submitted for approval at the last minute.
All projects that have not made it through design review by the deadline would be subject to the new codes, Kruckeberg said.

“Anytime zoning is changed, there is often a bit of a rush to try to beat the clock,” he said. “We want to avoid those types of projects where folks are submitting a hastily drawn plan. We want to make sure these are well thought-out plans that meet the requirements.”

Monday, April 18, 2016

MORTGAGE RATES HIT 2016 LOW: IS NOW TIME TO BUY
By Jeanine Skowronski  4.18.2016

Here's some good news for current house hunters: Mortgage rates hit a new low for the year last week. In fact, rates on a 30-year fixed mortgage are at the lowest mark since May 2013, according to the latest mortgage market survey from Freddie Mac.
The 30-year fixed-rate mortgage averaged 3.58% with an average 0.5 point for the week ending April 14, 2016, the mortgage purchaser reported. This rate is down from the prior week when it averaged 3.59%, and from a year ago when it averaged 3.67%.
Meanwhile, the 15-year fixed rate mortgage averaged 2.86% with an average 0.5 point, down year-over-year from an average of 2.94%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.84% with an average 0.4 point, down from 2.88% this time last year.
The weekly survey is based on responses Freddie culls from about 125 lenders on the rates and points for their most popular mortgage products.
What's Going on With Rates?
It was widely expected that mortgage rates would gradually rise in 2016 after the Federal Reserve began it's long-speculated move to raise the benchmark federal-funds back in December. (As a quick refresher: the Fed's benchmark federal-funds rate determines how much interest financial institutions pay to borrow from one another — and when it goes up, so does the prime rate, the lowest rate lenders will charge their most creditworthy consumers.)
The current decrease in mortgage rates is related to an unexpected increase in global demand for 10-year Treasuries at the beginning of the year amid global jitters over stagnating growth in China and its ripple effects, among other things, Lynn Fisher, Vice President of Research and Economics at the Mortgage Bankers Association (MBA), said.
But, barring another unexpected increase, further moves from the Fed should push long-term rates upward.
"MBA currently forecasts the Fed will make two more moves to increase rates this year, with the first rate hike forecasted for the June meeting," Fisher said in an email. "We think that mortgage rates will rise gradually through the end of the year, averaging about 4.2% in the fourth quarter."
Should I Buy Now?
For those thinking about buying a home in the very near future, it could be good to move on your purchase "to ensure getting a low-rate now" rather than face "the uncertainty in the future," Heather McRae, a senior loan officer for Chicago Financial Services, said.
Still, prospective homeowners shouldn't feel inclined to speed up their search or rush to make a decision, because interest rates are just one piece of the home-buying puzzle.
Home prices, for instance, tend to be higher in low-rate environments and fall in higher-rate environments as financing gets less affordable and demand goes down, Scott Sheldon, a senior loan officer at Sonoma County Mortgages and a Credit.com contributor, said. So, buying now could get you a lower interest rate, but waiting could get you a better deal on the home's purchase price.
At the end of the day, "you've got to kind of watch out for yourself," Sheldon said. "You have to make a decision based on what you feel you can handle."
Generally speaking, before shopping for a mortgage, you want to make sure you can meet down payment requirements, handle monthly mortgage expenses and safely cover other ancillary costs, like real estate agent fees, property taxes, home insurance, and repairs, to name a few.
You also want to be sure your credit score is in tip-top shape. Scores of 740 and higher generally earn the best terms and conditions on a mortgage, so, if you fall below that line, you may want to work on improving your credit score before you seriously look to buy a home. You can pull your free annual credit reports each year at AnnualCreditReport.com or see your credit scores for free each month on Credit.com to learn where your credit currently stands.


Friday, April 15, 2016

ARCADIA ELECTION RESULTS UNDECIDED AFTER CITY RECEIVES 999 MORE BALLOTS

By Courtney Tompkins, The San Gabriel Valley Tribune
POSTED: 04/13/16, 

ARCADIA  The City Council race may not be over just yet.
City Hall received 995 more ballots on Wednesday, and with a little over 400 votes between the second- and third-highest vote getters, the outcome of the race could still be decided after a final count.
After all precincts had been counted on Tuesday, anti-mansionization candidates Peter Amundson and April Verlato were leading the race, with 3,624 and 3,609 votes each, according to semi-official results.
Bob Harbicht, a veteran councilman, trailed behind Verlato, with 3,197 votes. Retired physician Sheng Chang came in fourth, with 2,260 votes, followed by Los Angeles County Sheriff’s Sgt. Burton Brink, who captured 1,049, and grassroots candidate Paul Van Fleet, who snagged 82 votes.
Deputy Chief City Clerk Lisa Mussenden said receiving this many ballots after the election was unprecedented.
“I think we all knew this was going to be a very contentious election, and I think this is a result of all that,” she said, “but to receive 995 ballots the day after, that’s huge.”
All had the proper postmark date and will be counted, she said. About 300 additional ballots that came in on Tuesday still need to be tallied because they did not make the cutoff that night.
The Los Angeles County clerk also received dozens of provisional ballots that must still be counted. Dozens more that came in without signatures must be given back residents for them to sign so that they can be counted, she said.
The second and final count will be completed on April 21.
The city saw record turnout this year, with over 9,000 ballots returned to date.

Because of the thousands of votes left to be tallied, neither Verlato nor Amundson were comfortable declaring victory.

RESULTS UNDECIDED AFTER CITY RECEIVES 999 MORE  BALLOTS

By Courtney Tompkins, The San Gabriel Valley Tribune
POSTED: 04/13/16, 4:18 PM PDT | UPDATED: 1 DAY AGO

ARCADIA >> The City Council race may not be over just yet.
City Hall received 995 more ballots on Wednesday, and with a little over 400 votes between the second- and third-highest vote getters, the outcome of the race could still be decided after a final count.
After all precincts had been counted on Tuesday, anti-mansionization candidates Peter Amundson and April Verlato were leading the race, with 3,624 and 3,609 votes each, according to semi-official results.Bob Harbicht, a veteran councilman, trailed behind Verlato, with 3,197 votes. Retired physician Sheng Chang came in fourth, with 2,260 votes, followed by Los Angeles County Sheriff’s Sgt. Burton Brink, who captured 1,049, and grassroots candidate Paul Van Fleet, who snagged 82 votes.
Deputy Chief City Clerk Lisa Mussenden said receiving this many ballots after the election was unprecedented.
“I think we all knew this was going to be a very contentious election, and I think this is a result of all that,” she said, “but to receive 995 ballots the day after, that’s huge.”
All had the proper postmark date and will be counted, she said. About 300 additional ballots that came in on Tuesday still need to be tallied because they did not make the cutoff that night.
The Los Angeles County clerk also received dozens of provisional ballots that must still be counted. Dozens more that came in without signatures must be given back residents for them to sign so that they can be counted, she said.
The second and final count will be completed on April 21.
The city saw record turnout this year, with over 9,000 ballots returned to date.

Because of the thousands of votes left to be tallied, neither Verlato nor Amundson were comfortable declaring victory.

Thursday, April 14, 2016

Amen - Let's Put This "Draconian" Initiative Away

In a twist, Arcadia anti-mansionization initiative fails to qualify for ballot

By Courtney Tompkins, The Pasadena Star-News
POSTED: 04/05/16

ARCADIA >>A resident-backed initiative targeting mansionization will not make the ballot after the city clerk’s office discovered a discrepancy in the number of qualifying signatures.

The Los Angeles County Registrar-Recorder had cleared the initiative last week, qualifying it for a future ballot, with only one more signature than the required 2,909, but City Clerk Lisa Mussenden said she found 64 additional signatures that should have been omitted because the accompanying paperwork was not filled out correctly.
“What happened was the circulators’ declarations were not properly filled out so that invalidates all those signatures,“ she said.She said she notified the county of this when she submitted the petition for verification, but somehow the signatures were still qualified.

Saving Arcadia, a local activist group behind the initiative, began efforts in July to take a measure to the voters that would set limits on home size. The initiative aimed to create a citywide floor area ratio (FAR), which, if adopted, would have set much tighter restrictions on square footage.In Februrary, the group submitted a petition with a total of 3,182 signatures to the city.

David Arvizu, the Saving Arcadia spokesman, is disappointed with the outcome, but he doesn’t intend to give up.“It’s a setback but it’s not a defeat,” he said. “It’s just a technical hurdle that we will have to get over.”He said the group may challenge the final count, but first he plans to hire an attorney to review the discrepancies before determining the next step.



Arcadia council election results undecided after city receives 995 more ballots




Arcadia City Council candidates, from top left, Peter Amundson, Burton Brink and Sheng Chang, bottom from left, Paul Van Fleet, Bob Harbicht and April Verlato.
Arcadia City Council candidates, from top left, Peter Amundson, Burton Brink and Sheng Chang, bottom from left, Paul Van Fleet, Bob Harbicht and April Verlato. 



ARCADIA >> The City Council race may not be over just yet.
City Hall received 995 more ballots on Wednesday, and with a little over 400 votes between the second- and third-highest vote getters, the outcome of the race could still be decided after a final count.
After all precincts had been counted on Tuesday, anti-mansionization candidates Peter Amundson and April Verlato were leading the race, with 3,624 and 3,609 votes each, according to semi-official results.
Bob Harbicht, a veteran councilman, trailed behind Verlato, with 3,197 votes. Retired physician Sheng Chang came in fourth, with 2,260 votes, followed by Los Angeles County Sheriff’s Sgt. Burton Brink, who captured 1,049, and grassroots candidate Paul Van Fleet, who snagged 82 votes.
Deputy Chief City Clerk Lisa Mussenden said receiving this many ballots after the election was unprecedented.
“I think we all knew this was going to be a very contentious election, and I think this is a result of all that,” she said, “but to receive 995 ballots the day after, that’s huge.”
All had the proper postmark date and will be counted, she said. About 300 additional ballots that came in on Tuesday still need to be tallied because they did not make the cutoff that night.
The Los Angeles County clerk also received dozens of provisional ballots that must still be counted. Dozens more that came in without signatures must be given back residents for them to sign so that they can be counted, she said.
The second and final count will be completed on April 21.
The city saw record turnout this year, with over 9,000 ballots returned to date.
Because of the thousands of votes left to be tallied, neither Verlato nor Amundson were comfortable declaring victory.
Election 2016: Arcadia voters shoot down Measure A
By Courtney Tompkins, The Pasadena Star-News
POSTED: 04/12/16, 9:05 PM PDT | UPDATED: 1 DAY AGO
ARCADIA >> Voters on Tuesday rejected Measure A, an initiative that aimed to repeal the city’s Utility Users Tax, according to unofficial election results.
With all seven precincts reporting, 4,910 votes were cast against the measure, with 2,735 in favor of it.
The measure needed more than 50 percent of voters to say ‘yes’ for it to pass, but since it didn’t, the UUT rates will remain the same in Arcadia.
Residents and business owners pay a 7 percent tax on their electric, gas and water bills, and 5 percent on telephone bills each month. The UUT is expected to generate $7 million in revenue this year.
The tax is Arcadia’s third-largest source of revenue, behind property and sales taxes. It comprises approximately 12.5 percent of the city’s $54.9 million general fund budget.
A group of residents, backed by the California Tax Limitation Committee, drafted the initiative in attempt to dial back a government they say is “fiscally out of control.” It is part of a broader effort by the TeaPAC organization to repeal utility user taxes statewide. Larry Papp, a longtime resident and proponent of the initiative criticized the continued rise in incomes for government employees while pay for employees in the private sector remains stagnant.
First adopted as a city ordinance in 1970, the tax fluctuated between 5 and 7 percent for nearly four decades. In 2009, a utility users tax initiative was ratified by voters as a requirement under Proposition 218, which requires tax measures to be taken to the public.
In an October presentation on the initiative, city staffers painted a pretty bleak picture of what would happen if the initiative were repealed.
City Manager Dominic Lazzaretto said there could be cuts to city police and fire services along with programs for children and seniors.

Deputy Chief City Clerk Lisa Mussenden said tonight’s results will remain unofficial until a second count on April 21.
Transcending the Single Family HomeWalter Russell Mead  3.19.2016