If you have a question for the City of Lake Forest or need to report a problem, go to GovPopulous.  This system has proven to be very effective because our City Manager not only reads all inputs but also holds his staff accountable for responding to all of them.

Periodically the City conducts a Resident and Business Satisfaction survey.  The last one was done in 2006.  Overall, the rate of satisfaction by residents for City services was 91% and for quality of life was 95%.  For businesses, the overall rate of satisfaction for City services was 86% and 79% of the businesses rated the business climate in Lake Forest as excellent or good.  And the City is constantly working to be even better.  GovPopulous is another way the City keeps in touch with the needs of its residents and businesses.  To use GovPopulous, go to: www.city-lakeforest.com/govpopulous.

On the Palos Verdes Peninsula, there are two choices for Fourth of July celebrations during the day. There are also two choices nearby for local fireworks in the evening.

Palos Verdes Estates will be hosting their 47th Old Fashioned Independence Day Celebration at Malaga Cove School beginning at 9:45 a.m. with entries into the Apple Pie Contest followed by the Children’s Bike Parade at 10:00 a.m.  Admission is free and you may bring a picnic or purchase food from Boy Scout Troop 257.  For additional information, call 310-375-3455 or click on the link above and scroll down to page 3.

Rancho Palos Verdes will be hosting their 33rd Annual Independence Day Country Fair Celebration at Point Vicente Park/Civic Center from 11:00 a.m. to 5:00 p.m.  There will be Arts & Crafts Booths, Kiddie Carnival Rides, Petting Zoo, Pie Eating Contest, Hula Hoop Contest and more.  Admission is free, on-site parking is $3 per vehicle and free shuttle service is provided along Hawthorne Blvd.  For additional information, call 310-349-0743 or click on the link above.

Fireworks can be seen in the evening at the Redondo Beach Pier at 9:30 p.m. (click here for more information on reserved seating)  or at Torrance’s Charles Wilson Park beginning at dusk (click here for more information/then choose “Fourth of July Celebration”.

Photo courtesy City of Rancho Palos Verdes

Where exactly is the real estate market going?  Owners of Palos Verdes real estate as well homeowners across the country would love to know the answer.  In addition to the “in your face” reporting about real estate (which can be pro or con depending on the reporter and which forecast he is looking at) there are other subtle indicators.

Recently Newsweek had an article buried on page 61 entitled “Finance - Cash, on The House” talking about a new take on reverse mortgages.   There are several lenders now offering a new loan product where the lender will share future changes in value 50-50 with the borrower.  The borrower must not sell the house for at least five years.  The example given was a $71,000 loan on a $500,000 home.  After five, years when the property is sold if it is worth $600,000, the borrower owes $121,000 (original $71,000 plus $50,000 which is half the appreciation).   If the home only sells for $400,000, the borrower pays the lender $21,000 (original $71,000 minus $50,000 which is half the depreciation).

This is not an altruistic gesture on the part of lenders.  They are betting the market will be up in five years – not flat, but up.  Lenders are looking to make a profit.  Historically, real estate has been an excellent long term investment.

First of all, here in the South Bay you have to ask yourself, “Who doesn’t want to live here?”   There are many other reasons to buy a home - here are 6 good ones!

Pride of Ownership - One of the main reasons people buy and always have bought homes is pride of ownership.  Part of the “American dream is owning your own home.”  Making it yours - decorating it your way, landscaping w/ your favorite plants,  painting it your favorite colors, etc.  Most of us grew up with our families in our “family home.” 

Good Investment - Although home prices are cyclical, sometimes up, sometimes down, overall they appreciate or go up.   For example, if you use the Office of Federal Housing Enterprise Oversight’s “house price calculator,” a home purchased in California in the 1st quarter of 1975 for $75,000 is worth approximately $1,017,400 in the 1st quarter of 2008.  That’s not a bad savings plan since you had to live somewhere!

Tax Benefits - owning a home in the United States is looked upon favorably by our Federal government.  With that said the government offers quite nice tax benefits to those who also own a mortgage.  The mortgage interest you pay each month is deductible and typically the interest is the largest part of your mortgage payment - especially in the early years….when you need the most help.

Capital Gains Exclusions - (another tax benefit) - As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the “over-55″ rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit–subject to limitation–free from taxation.

 Equity Building - As you pay your mortgage, an amortizing mortgage, slowly you pay more and more of the principle off.  The beginning years of an amortizing mortgage are mostly interest, as noted above, but the last part of the term is mostly principle.  You are basically paying into your own bank account as every time you pay your mortgage the principle gets reduced….you can’t do that with rent.  (You are helping pay down someone else’s mortgage then.)

Equity Loans - Consumers can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical or starting a new business.

As Meryl Strep entered her office in “The Devil Wears Prada” she is calling out orders and demands endlessly.  If you have ever thought you would love to have someone on the other end of this conversation taking it all down, your dreams have just come true. Enter www.JOTT.com

By simply dialing 1800-jott123 your message will be directed either to email or text instantly!! And the best thing is that it is all FREE!!  No more excuses for forgetting to call someone back or pick up something from the store; Jott has your ‘back covered’.

 Give it a try!! Jott even won an AT&T award for it’s innovation and ease of use!!  Try it; you’ll love it!!

When you think about Floral Park, you always think of the charm and ambience of the 20’s and 30’s and a “kinder, gentler lifestyle.  And if you ever dreamed of living in a true Tudor, now is your chance.  This beautiful 4 bedroom 2 bath home has been beautifully cared for and loved and maintains the charm of yesterday.  Sparkling Hardwood Floors greet you as you enter the foyer; the expansive living room has beautiful ceiling details and an arched fireplace.  The Formal Dining Room is perfect for entertaining and has loads of windows.  The ceramic tile kitchen opens to the huge, sunny breakfast room.

The park-like grounds are exquisite and so inviting and have a brick patio and separate barbeque area. Upstairs the Master Bedroom has a private deck overlooking the back gardens as well an expanded walk in closet.  In addition to all this, there is a mammoth walk-in attic which provides for great storage and expansion possibilities beyond belief as it has high ceilings and skylights.  Let your imagination go wild!!

Lies! Damn lies and statistics as Mark Twain once exclaimed. Now with the California Association of Realtors June 2008 Economic profile you too can be an expert when you opine about our economic future.

These statistics reveal the strength and weakness in a wide range of economic data related to the real estate market, employment and population trends in San Diego County.

Most interesting trends are the increase in foreclosures, the decrease in median prices listed by city, the dramatic increase in sales and which segments of the market have the most activity. Please keep in mind that median price decreases are being driven by foreclosures which account for 25% of total sales mostly in the lower priced segments of the market while sales have dropped off in the upper priced segments. This shift in activity has a tendency to make median price decreases more dramatic. Investors are buying heavily into the lower priced homes. Tremendous opportunities exist in North San Diego County Coastal cities like Oceanside, Carlsbad and Encinitas.

Damn lies and statistics! As I’ve mentioned before, all of the statistics regarding unsold inventory are squewed by the number of short sales that are listed in the inventory. Most short sales are unsellable because lenders can’t or won’t meet the terms a potential buyers offer, which bloats the inventory numbers. Buyers find themselves competing with investors, multiple offers, overbids and transactions that don’t close.

More damn lies and statistics…Some areas are showing a 20% year to date decrease in median price. However, for those who are financing their purchase mortgage rates have gone up 20% in recent weeks from 5.3% to 6.3%. So keep an eye on mortgage rates. They can easily erase any savings to be had by lower prices.

I wish I had a crystal ball to tell sellers of real estate in Palos Verdes what price their home will sell for.  There are the obvious variables - location, condition, amenities like views, etc. and the “forgotten” variables like the market perception of the buyers.  As we have experienced, the media also plays a large part in the buyer’s mood. 

As more and more buyers begin their home search on the Internet, they identify quickly a well priced home.  Wouldn’t the seller want to be perceived as well priced when they first put their home on the market as statistics show that a home gets the largest audience/views within the first two weeks of being placed on the market.   Otherwise, they risk becoming a stale listing, whittling away at their “high” price and losing potential buyers. 

In this market, pricing is key and Realtors and sellers both need to “be brave” and price a home the same or less than the last comparable home that sold.  The buyers ultimately set the price (not the seller or Realtor).  The failsafe for a price that may be too low is that buyers will recognize the low price and multiple offers will result.

Lew Sichelman in a LA Times article, “To sell home, make sure the pricing is right” has several suggestions for sellers including “sellers need to know how fast properties in their specific market segment ae being sold…how much competition…and market statistics such as absorption rates…inventory…and days on market.”  If you want your your home sold quickly, put on a buyer’s hat for a bit when pricing your home.  Or you could, in effect, be “buying back” your home for yourself.

The ultimate question “What is my home worth in today’s real estate market?”  I hear it all the time and the short answer that is always true is that “Your home is worth the dollar amount equal to what someone is willing to pay for it and what you are willing to sell it for.”  That number is very hard to arrive at sometimes.

Here in the South Bay we have seen a softening of the real estate market…properties taking longer to sell, prices needing to be reduced, homes needing to be staged and then kept in “showing” condition for the duration of the “marketing period.”  This is no easy task. 

The hardest part of this softening market is finding a price that will attract a buyer.  Sellers that are looking back at what homes sold for a few months ago are looking the wrong direction.  Sellers need to look forward to what will make someone pull the trigger and write that offer.  We need to start seeing what Just Sold or Just went into escrow and then adjust accordingly and not equal to or above those prices…but slightly under those prices.  Properties not aggressively priced are not even getting showings - so those perfectly “staged” houses are not even making a dent.  This is why pricing is the number one key to getting people in your home.  Of course, after they are there it must show better than the house they just saw around the corner.  Buyers are looking at everything right now - they are looking for a deal. They hear words like “foreclosure, bank-owned, short sale” and think they want one of these deals.   They want to be able to tell their co-workers and friends what a great deal they got.

So, you still don’t know what your home is worth - we hope we will all find out soon!