At a sales meeting yesterday we spent alot of time talking about the decreasing value of homes, that seems to be what everbody wants to talk about today.  Our broker had a very list of home prices in the state by county.  In each county section there was a list of specific cities.  The list provided the 'median' home price for each city in an excel spreadsheet for the months of Sept. 2002, 2003, 2004, 2005, 2006, 2007 and finally Oct. 2008.  There has been alot of talk lately about home prices dropping so significantly and not to downplay the situation, they have!  But when you look at each city's median price for each year, you'll be surprised to see that prices today are still higher than they were in 2002.  There are a few cities where the price is exactly the same or slightly lower than 2002 but in the whole state there are only a handful of these cities.  I know in Long Beach , an area I try to track, the median in Sept. 2002 was $250,000 and in October 2008 it was $350,000 that's still an increase of 40%.  Not a bad investment.  And yesterday I spoke to a lender who told me the 30 year fixed rate was now 5.125%!  That's such a good rate that I told my husband (for the first time) we should think about refinancing.  We can buy down the rate for 1% and get it below 5% - unheard of.  So, we're not at the high median that occurred in Oct. 2005 but what a great time to look at real estate.  We have both affordability and low interest rates and there's some really good inventory.  If you are interested in knowing what the median price in your area was for the period, give me a call or sent a quick email and I'll be happy to share the numbers with you.

I am currently working with several buyers, some of which are first time buyers, some are debating whether to sell their home and buy another and some are trying to see if they can afford an investment property.  Prices are so realistic especially for property that will become rentals.  I even have some clients who are thinking of selling their "huge" homes and buying 2 homes.  One primary and one investment.  I think that's brilliant if that "huge" home expenses and space are more than you need.  So, in my search to help these clients with their buying plans I have spent allot of time on the MLS researching opportunities.  Sure enough I have found some really great buys on homes that are in good neighborhoods.  But here's the problem.  The clients that have something to sell are not paying attention to the fact that if they will get a bargain on the "buy-side" of the transaction, the person buying their home will expect to get a bargain as well.  But allot of sellers , especially with higher end property don't seem to realize that they have to give something because they are getting it on the other side of the transaction.  Buying and selling are equal sides of a transaction and today with fewer buyers in the market, it's time for Seller's to get realistic and listen to their agents when they are discussing the listing price of their property.  It may be a bitter pill to swallow, but if you are buying, you'll get it back on the other end.

The buying process is a daunting task!  It's like Mr. Toad's Wild Ride, full of twists and turns, ups and downs, high and lows.  That pretty much sums up buying a house.  It will be the most fun you'll have planning your future and it will be the least amount of fun you have.  Believe it or not it's all about education and a little luck and really knowing your gut.  Most importantly of all, you really have to have a Realtor you can trust and you must be prepared to put yourself in their hands with all the confidence that they can get it done for you. For more on this subject: [read here]

In Long Beach and surrounding cities, where I specialize, I am constantly asked "are we at the bottom of the market?" or when will we see the bottom of the market?  My answer up to now has always been, nobody can predict that.  The changes in the market, the number of properties and the increased number of sales, not to mention low interest rates are all definitely signals that we may have reached the bottom.  Then today I noticed in the City of Los Alamitos prices were down 1.2% last month.  So...are we at the bottom.  I can't answer that, the market is in constant change and sometimes we are so focused on getting the best opportunity, we miss it and before we know it the prices are going up again.  I tell buyers don't focus on the issue of us being at the bottom of the market, focus on the opportunity presented to you.  The one thing we all know, prices will go back up again.  So when you make your purchase remember, your home will be worth more in the future.  I want you to be able to say I'm glad I bought, not I wish I had of bought when the opportunity presented itself.  Don't be caught in the media hype and doubts and fears.  I'm not trying to downplay the seriousness of our economy but I am trying to tell you if you need or want to buy, don't be paralyzed and unable to make a decision.  Focus on the best deal, the best house and moving forward.

I don't know about you but when you lose a family member or friend it's hard to recover. In the past 2 weeks I lost a colleague.  I would have told people that Pam Davis was my friend and I believe she was but our relationship began as colleagues.  She was a happy, warm and upbeat person.  The kind of person people want to be around.  She was the first to offer to help and always had a bright new idea to share.  She owned the Real Estate Books in the Long Beach, Huntington Beach area and had recently decided to move to Fort Collins, CO.  We were sad at her leaving but excited for her because she was excited about her new adventure.  Having moved here from Colorado I knew what she could expect and we talked about that.  She was thrilled to be going and although we were sad, we were thrilled for her.  The accident that took her life days before she was to leave was a fluke - but isn't that why they call them accidents?  At her memorial service her best friend spoke of their friendship.  It was a lovely service.  When I left the church I called her friend knowing I would get her voice mail and left her a message.  I told her that when I leave this world, I hope I have just 1 friend that speaks so joyfully, lovingly and from deep in their soul about our relationship.  Later that day I was in a shop picking up a Christmas gift I had ordered and there was a sign that said "Friends are like angels without any wings, Blessing our lives with the most precious things".  Pam was an angel.  We'll all miss her.  I apologize because this isn't about the real estate market - but it really is.  Friendships in this business through the tough markets and the good, are enduring.  Pam and Nannette are proof of that.

It's not my job to convince you to buy a house.  It's not my job to convince you to sell a house.  But...if you ask my opinion I'll always give it, fairly and honestly.   Well I had a client who made an offer on a house, they were buying as an investment and I was referred to them by a past client.  Always a great way to start a relationship.  Anyway they had decided to pay all cash for the house.  About 25 days into the escrow the market crashed, the prices started falling on oil and like the rest of us they saw their investment portfolio change dramatically.  They called and said we can't go through with it, we want to cancel the escrow.  They loved this house and it almost felt like magic the way they felt when they walked through the door.  So for the first time I told them they were making a mistake.  They loved the house so much and if they were willing to pay cash I suggested they speak to a lender and see what it would cost.  They could use a smaller amount of cash to put down on the house and if the market and oil came back they could pay off that mortgage.  But they would get the house they loved and they would be able make reasonable payments on it.  They moved forward, got a loan, the appraisal came in easily at the price they offered to pay and last week we closed the transaction.  I tell you all of this for 2 reasons, first of all to tell you that people are still buying houses and there are some very good deals to be had.  And more importantly to let you know there are always other options and sometimes it's the Realtor's job to give you a little "push".  I know I saw my clients on Sat. and they couldn't stop saying thank you for pushing them forward they were thrilled with their purchase.