TheDawgByte

     Are we beginning to see light at the end of the tunnel when it comes to the downward spiral of the real estate market?  The answer may well be yes. 

     Historically low interest rates on mortgages, 4.85 percent this week on a 30 year fixed rate mortgage, have helped spur a surge of 32.2 percent in mortgage applications as of March 20, 2009.  Interest rates are well below the 5.74 percent of a year ago.

     This week, the National Association of Realtors released figures showing an increase of 5.1 percent in existing home sales from January 2009 to February 2009.  It was the largest sales jump since July 2003, according to the National Association of Realtors.

     In Los Angeles and Orange counties, the number of sold properties is up from this time last year, while the inventory of properties for sale in months' supply is down from this time last year, as is the Days On Market for properties being sold.  All are positive indicators for the real estate market.

     One negative indicator remains the sales price of properties.  Distressed properties accounted for 40 to 45 percent of transactions in February, according to the National Association of Realtors.  Lawrence Yun, chief economist for the National Association of Realtors states in a NAR news release, "Our analysis shows that distressed homes typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price."

     But is that changing, too?  Recently I had a Buyer submit several full price Offers on several distressed properties in Los Angeles County and not get his Offers accepted on any of them.  I revisited these properties on my MLS at Close of Escrow to discover that many of them had sold for over-asking.  One of the properties sold for $20,000 over the Asking Price.

     So are we witnessing the stabilization of the real estate market?  Unfortunately, I do not have a crystal ball to look into the future.  However, if these positive trends continue the answer will be a resounding yes.

     My youngest granddaughter attends first grade at an Orange County school that received a distinguished designation.  Her teacher is great at her profession.  I admire anyone that can keep a classroom of first graders involved and learning.  The other teachers that I have met at this school also strike me as engaged with their students.  The principal, too, shows great concern for the well-being and education of the students.

     From a real estate perspective, this "Distinguished" school is a powerful marketing tool.  I have clients looking to buy a home in this area because of the quality of the schools.  So what's wrong?

     It's wrong when a school can't purchase ink cartridges for their printer and so it sits, collecting desk in the school's Office, forcing teachers to pay for copies at the local copy shop out of their pockets.  It's wrong when the supply of text books can't meet the demand of increasing student populations in the classrooms. It's wrong when talented and motivated teachers are given pink slips because of a state budget crisis. 

     So what can be done?  In terms of big picture, we need to be writing our elected leaders at the local, State and Federal levels and demand that education be of primary importance.  As a Real Estate Broker, why should I care?  Well, besides the obvious...five grandchildren in public schools here in southern California...it makes good business sense.

     A well educated population of buyers and sellers makes for an informed population of buyers and sellers and that is good business.  Home Buyers and Home Sellers who can understand a "market trend" from a "fashion trend" make for good business.  A Seller who understands their Listing Agreement or a Buyer who understands their Residential Purchase Agreement decreases the chances of legal issues arising and that is good for business. 

     In terms of small picture, we need to help our schools and teachers get through this budget crisis.  What can be done?  Adopt a teacher or a classroom.  If you have children or grand-children in school, select their school or their teacher.  Then what?  Make a pledge to yourself that from each Escrow you close, you will donate $50, $100 or more in school supplies to that classroom or teacher.  Purchase a gift card at one of the many office supply stores and donate it to that teacher or classroom, that way they can get exactly what they need.

     Adopting a classroom or teacher won't solve all the problems facing our schools and children.  It will, however, provide some breathing room for the wonderful people preparing our children for the future.   

     On Saturday, June 6, 2009, The Long Beach Neighborhood Foundation will present its annual Wrigley River Run.  The Run consists of a 5K course and a 10K course.  Kids can participate in the Tadpole Trot.  It's a great race for the serious minded runner and those seeking to drop that pesky extra pound while getting some exercise and helping support a great community organization. 

     More information about the race, including registration forms, race times and courses can be found at http://www.wrigleyriverrun.com

     The Long Beach Neighborhood Foundation is a not for profit organization that is committed to organizing events like the Wrigley River Run that serve to promote community involvement, tolerance, education and a healthy non-violent lifestyle for all, particularly among at risk youths.

      Altus Realty Solutions is a proud Platinum Sponsor of the Wrigley River Run.  I lived in The Wrigley area of Long Beach for several years and have many clients there.  It's a real front porch community with classic Spanish-style and Tudor-style homes constructed in the 1920's and 1930's.  The Daisy Street Christmas Parade is one of the largest in Long Beach.  At Halloween, you can expect to go through a lot of candy, when all those little goblins and princesses knock on your front door.  It's a wonderful community within Long Beach.

     If any one would like to run in the Wrigley River Run, I do have a few complimentary race entries.  Email me at scott@altusrealtysolutions.com or call me at (949) 903-6148 or (562) 331-1919.