Tag Archives: economy

Real Estate

California Sales, Price Snag in May

Photo courtesy of HDlost.com
Some times we just have dog days! - Photo courtesy of HDlost.com

A weak economy and tightened financing conditions contributed to a slowdown in California home sales and median price during May, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported yesterday.

  • Home sales in May declined 5.8 percent from April and 14.4 percent from the previous year, while closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 471,840 units.  The statewide sales figure represents what would be the total number of homes sold during 2011 if sales maintained the May pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.
  • “Market demand has been sluggish as would-be home buyers remain concerned about the direction of the economy. They may also be weary of delays in the buying process and difficulty in getting a home loan,” said C.A.R. President Beth L. Peerce.  “This, combined with lenders putting distressed properties on the market at a more deliberate pace, is contributing to homes sitting on the market longer.”
  • The statewide median price of an existing, single-family detached home sold in California edged down 0.7 percent in May to $291,760 from a revised $293,800 in April.  May’s median price was down 10.9 percent from the $327,460 recorded in May 2010.
  • C.A.R.’s Unsold Inventory Index, which indicates the number of months needed to deplete the supply of homes on the market at the current sales rate, rose to 5.4 months in May, unchanged from April, but up compared with May 2010’s 4.5-month supply.
  • The median number of days it took to sell a single-family home was 51.8 days in May 2011, compared with 37.8 days for the same period a year ago.

Read the full story

For all your real estate needs, call or email:

John J. O’Dell Realtor®
Real Estate Broker
O’Dell Realty
9530) 263-1091
jodell@nevadacounty.com

Business

Your Business in This Economy, Will it Take a Dive, Survive, or Thrive?

1 Comment

Picture Courtesy of Black Enterprise

by Lisa J. Lehr

Yes, we know. The economy is bad. Recovery may be on the horizon, but no one really knows how close. Or if we can “hold out” till it happens. Yet we can each take some actions to position ourselves in the best possible way to survive a weak economy—and be at the front of the pack when it improves.

Dr. Ivan Misner, founder and chairman of BNI (Business Networking International), the world’s largest business networking organization,says that during an economic downturn “you can actually prosper…while everyone else flounders in fear.” He tells of being at a business mixer in the early 1990s, “right in the middle of a nasty recession.”

As he looked around the room and listened in, he noticed that “while nearly all were commiserating with one another, very few were actually networking and working on seeking new business…,” which, of course, was the purpose of the mixer!

So, while we can’t control the economy, we can control our response to it. Dr. Misner goes on to say, “During the last recession, I watched thousands of businesspeople grow and prosper…because they
consciously made the decision to refuse to participate in a recession. They did so by developing their networking skills and learning how to build their business through word of mouth.”

I’ve heard several people in my contact sphere say they’re refusing to participate in the recession. What if everyone refused to participate? We wouldn’t have a recession!

Dr. Misner concludes, “Don’t let a bad economy be your excuse for failure. Instead, make it your opportunity to succeed. While others are looking at the problems, those of us looking for opportunities
will not only get through a bad economy but will prosper.”

Here are some ideas on ways to find opportunity:

Invite people to meetings of your business or trade group.

Offer to speak at an industry conference.

Send out a mailing.

Begin an e-mail campaign.

Write letters to the editor.

Start a blog.

Submit articles to trade publications and online article sites.

Add an opt-in and an auto-responder series to your website.

If you don’t have a website, get one.

If you need to outsource any of these projects, do it.

Stay in front of potential customers. Whatever line of work you’re in, people still need your product or service. If you’ve made your name familiar to your target audience and established yourself as an expert in your niche, you’ll be the one they go to when they’re ready to buy—instead of your competitors. Your (former) competitors will be the ones commiserating about how the recession of the early 21st century ruined them.

Lisa J. Lehr is a writer and copywriter living in Grass Valley. She
can help you promote your business with a full range of online and
offline marketing pieces. A member of Empire Toastmasters, she’s
available to speak to your business or professional group. Visit her
website www.justrightcopy.com for more information, opt in for the
message series, and receive a free Marketing Guide.

—
Lisa J. Lehr
I write words that make you money–just ask me how.
www.justrightcopy.com
Visit my website and sign up for my fr~ee marketing tips.
New! No~cost Marketing Guide now available at my website.

Business, Local Writers & Contributors

Why Some Businesses Will Thrive in “This Economy”

Lisa J. Lehr

by Lisa J. Lehr

Yes, we know. The economy is bad. Recovery may be on the horizon, but no one really knows how close. Or if we can “hold out” till it happens. Yet we can each take some actions to position ourselves in the best possible way to survive a weak economy—and be at the front of the pack when it improves.

Dr. Ivan Misner, founder and chairman of BNI (Business Networking International), the world’s largest business networking organization, says that during an economic downturn “you can actually prosper…while everyone else flounders in fear.” He tells of being at a business mixer in the early 1990s, “right in the middle of a nasty recession.” As he looked around the room and listened in, he noticed that “[w]hile nearly all were commiserating with one another, very few were actually networking and working on seeking new business…,” which, of course, was the purpose of the mixer!

So, while we can’t control the economy, we can control our response to it. Dr. Misner goes on to say, “During the last recession, I watched thousands of business people grow and prosper…because they consciously made the decision to refuse to participate in a recession. They did so by developing their networking skills and learning how to build their business through word of mouth.”

I’ve heard several people in my contact sphere say they’re refusing to participate in the recession. What if everyone refused to participate? We wouldn’t have a recession!

Dr. Misner concludes, “Don’t let a bad economy be your excuse for failure. Instead, make it your opportunity to succeed. While others are looking at the problems, those of us looking for opportunities will not only get through a bad economy but will prosper.”

Here are some ideas on ways to find opportunity:

  • Invite people to meetings of your business or trade group.
  • Offer to speak at an industry conference.
  • Send out a mailing.
  • Begin an e-mail campaign.
  • Write letters to the editor.
  • Start a blog.
  • Submit articles to trade publications and online article sites.
  • Add an opt-in and an autoresponder series to your website.
  • If you don’t have a website, get one.
  • If you need to outsource any of these projects, do it.

Stay in front of potential customers. Whatever line of work you’re in, people still need your product or service. If you’ve made your name familiar to your target audience and established yourself as an expert in your niche, you’ll be the one they go to when they’re ready to buy—instead of your competitors. Your (former) competitors will be the ones commiserating about how the recession of the early 21st century ruined them.

Lisa J. Lehr is a writer and copywriter living in Grass Valley. She can help you promote your business with a full range of online and offline marketing pieces. A member of Empire Toastmasters, she’s available to speak to your business or professional group. Visit her website www.justrightcopy.com for more information, opt in for the message series, and receive a free Marketing Guide.

Business

How Business Owners Can Get Ahead in “This Economy”

2 Comments

Lisa-J.-Lehr
By Lisa J. Lehr

I don’t know about you, but I’m getting really tired of hearing the phrase “in this economy.” As in: “Everyone’s trying to save money…in this economy.” “Who can afford this, that, or the other thing…in this economy?” “Good luck getting a job, making a profit, running a business…in this economy.”

It’s as if “this economy” is a catch-all excuse for failure, inaction, and stuck-ness. Okay, certain things are out of our control. But let’s not throw everything that is within our control into the same hopeless bag. If you’re a business owner, there’s a lot you can do to secure an advantage over your competition who’s given in to the doom-and-gloom mentality of “this economy.”

Here are some starters:

  1. Figure out your USP, and tell everybody what it is. If you’re not sure if you even have a USP, it means “unique selling proposition.” So what makes you so special? If you’re not the biggest, the oldest, or the closest, you must have something else that no one else has. Dig it out, polish it up, show it off. Hint: what do your best customers say about you?

2  Make sure your website is as good as it can be. Please don’t tell me you don’t have a website! (Okay, do tell me…I can help.) Forget the flash and snazzy graphics. You need a clean, easily navigable, informative website. The more content, the better—both for getting more web traffic and for making your readers know, like, and trust you. People who know, like, and trust you will buy from you! And on that website

3. Put an opt-in form in a prominent place. This simple tool can literally bring in 90% of your sales. If you’re not sure what this is, I’m sure you’ve seen them on other websites: people enter their name and e-mail address and give you permission to keep in touch with them. Voila, when they need the product or service you offer, guess who’s top-of-mind—you!

4. Be famous. Not celebrity-famous—but establishing yourself as an expert in your field will put you light-years ahead of your competitors. This means you offer articles, news releases, blog posts, case studies, white papers, even an informative Yellow Pages ad—all kinds of free, no-obligation content that gets your name “out there” and convinces people you know your stuff. Secondary benefit: all that “free stuff” makes people feel indebted to you—and more likely to choose you over your competitors.

5.Have materials to hand out. Called “marketing collateral,” these are all the print pieces that support any sales messages you have: brochures, free articles, point-of-sale take-home pieces, catalogs, magalogs, white papers, and so on. These offline pieces have a “stickiness” that online content doesn’t have: people will keep, re-read, and pass along to others informative reading material. Make sure your contact info (including your web address!) is on everything.

5.Advertising can be expensive. And that “I can’t afford to advertise…in this economy” mentality has led to the failure of many businesses…especially in this economy. But the above relatively simple and inexpensive strategies will give you the visibility, authority, and distinction you need to remain competitive in your field. Even in this economy. Especially in this economy.

Lisa J. Lehr is a writer and copywriter living in Grass Valley. She can help you promote your business with a full range of online and offline marketing pieces. A member of Empire Toastmasters, she’s available to speak to your business or professional group. Visit her website www.justrightcopy.com for more information, opt in for a message series, and receive a free Marketing Guide.

Business, Real Estate

Economists Optimistic That Market Is Upward Bound

economic-upturn

Well, you can get a room full of economists and get a room full of different opinions. But according to USA Today it seems that two-thirds of the economists agree that we may have hit bottom. Here’s the article, let’s let a little sunshine in.

“Economic recovery is still a few months away, say economists surveyed by USA Today, but two-thirds of them think existing-home sales have bottomed out.

Both housing and automotive markets “have the potential to generate some quite large percentage increases,” says Bill Cheney, chief economist at MFC Global Investment.

Overall, economists say unemployment won’t peak until the first half of next year and credit markets will remain tight.

“I think (the recovery) is going to be anemic,” says Allen Sinai, chief economist at Decision Economics. “I don’t think consumers have the wherewithal to buy a lot of cars and a lot of houses.”

For full story, click here: USA Today, Paul Davidson; Barbara Hansen

Real Estate

More Signs of Housing Recovery

california-map-increase-dec

While there may be another storm of foreclosures on the horizon, at least for now there are some signs of recovery for our housing market. California is the bell weather of the economy for the nation. Any sign that the housing market in California is recovering is a sign that the economy is recovering.

It’s the first back-to-back increase in the state’s housing prices in two years, following an increase in the median price of homes in March from February. The median price of $256,700 for single-family homes in April is up from a median price of $253,040 in March, according to estimates by the California Association of Realtors. (In Nevada County for the month of May the median has ranged from $295,000 to $280,000)

Overall the housing values in California increased 1.4% statewide.

The April prices were still off 36.5% from the same month a year ago, but the sales of 540,360 homes on a seasonally adjusted, annualized basis represented a 49.2% rise over the same time, the Realtors group reported Thursday.

April also marked the eighth consecutive month of single-family-home sales above 500,000 units. The inventory of unsold homes continued to shrink, to 4.6 months’ supply from 9.8 months a year ago. “It appears that the median price is now at or near the bottom,” said Leslie Appleton-Young, chief economist for the Realtors’ association, who has previously made more subdued comments.
“At best, some markets have at least temporarily leveled off in price,” said Andrew LePage, analyst at MDA Dataquick Information Services, a market-research firm in La Jolla, Calif. “I don’t see any markets that have clearly bottomed out.”

In general, the best-performing markets across the state in terms of sales volume were in lower-priced, inland areas that had seen some of the steepest declines in prices. Sales in the high-desert region outside Los Angeles, for example, more than doubled in April from the same month a year ago, after price declines of 49.5% over the same time. Median prices, even month to month, continued to fall there amid a glut of foreclosures.

But in several more densely populated areas, the median price was stronger. Los Angeles County’s median rose 1.9% in April from March, after falling 31% over the past year. In Silicon Valley’s Santa Clara County, the median price rose 3.6% after a year-over-year fall of 38.2%, the Realtor’s group said. Boosting sales are some of the best affordability rates in almost a decade, say economists.
Realtors’ officials said sales remain weaker for more-expensive homes. Inventories of unsold homes in the under-$500,000 segment, for example, shrank to nearly three months’ supply in April from about 10 months a year ago. But the inventory of homes priced at more than $1 million rose to about 17 months from 10 months a year earlier.

The problem for the higher end of the market is that lending has tightened greatly for the jumbo mortgages that are often needed to buy a home costing more than $500,000, say economists. Some lenders now require down payments of as much as 30% to 40%. As a result, sales have remained anemic in pricey markets like San Francisco

Source: The Wall Street Journal

Real Estate

The Bargains in Real Estate are Going to be Gone

inside-of-church

This is an interior picture of a  listing for a three bedroom, two bath home which will save you travel time and gas for Sunday services.

Here in Nevada County, while there were almost the same amount of sales in April of this year compared to last year, the pending sales are way up. Potential buyers in areas that were hard hit by the housing downturn have read about bargains; only find it disappointing when they go shopping.

But in Southern California, housing is hopping:

According to an article in the Los Angeles Times:

“House hunters are trying to pounce on deals from sellers they expected to be frantic — if not curled in the fetal position. What they’re finding instead are bidding wars as low interest rates and pent-up demand in traditionally stable or chic areas have kept prices up — not as high as the market’s peak, but not nearly as low as they had hoped.

Bank-owned or not, the cheaper properties are dominating the sellers’ block in the notoriously expensive L.A. County real estate market. In March, 2,871 homes under $300,000 were sold compared with only 734 a year earlier, according to real estate information firm MDA DataQuick.

When the real estate bubble burst, it didn’t affect the mid-priced market, said real estate information firm MDA DataQuick. Instead, it created opportunities in troubled neighborhoods and slowed sales in the market of homes priced above $1 million. But in areas where most of the homes sell for $400,000 to $800,000, there are few discounts to be found.

Even the foreclosure market has slowed, says University of Southern California Professor of Real Estate Tracey Seslen. Seslen said lenders with foreclosures are supporting market stabilization and releasing only a few homes at a time to avoid flooding the markets.”

Like I said, if you wait to buy at the bottom of the real estate market, you’ll find that the bottom pasted you by a long time ago.

 

Nevada County Home & Land Statistics, Nevada County Information, Real Estate

Nevada County Residential & Land Sales, April 2009

"Alternative Housing" Location, Oregon
"Alternative Housing" Location, Oregon

 

What the figures show for April of this year is that residential sales are about the same number as it was for April of last year.  However, we’ve had a further decline in medium residential home prices of minus 23 percent. Here are the stats for sales in Nevada County.

There were 67 residential properties sold in April 2009 compared to 62 residential sales in April 2008.  Total residential sales from January to the end of April 2009 were 191 sales compared to the same period last year of 203 sales.

The medium price for April 2009 was $299,000 compared to April 2008 of $387,500 a decline in market price of 23 percent.  There were 1,165 residential properties listed for sale at the end of April, which based on the number of sales from January to April 2009 equals about 1.6 years supply of residential property for sale, assuming sales continue at the same rate.

There were 20 land sales from January to April in 2009 with a 45 month supply of land at the end of April. Last year there were 45 land sales with a 49 month supply of land.

I’ve noticed a pickup in pending sales, which I post on this website daily for those that are interested, and it seems that the pending sales are up. They have been hovering in the 200 pending sales starting within the last month. However, this is for all sales, not just residential sales.

Where are we with future sales? It’s anyone’s guess, Fannie Mae and Freddie Mac asked lenders to forestall any more foreclosures until March 6, 2009.  What they are doing now that the agreement date has expired? Some circles say we are in for a tsunami of foreclosures. The following banks had agreed to the government’s request and their expiration dates of the agreement. 

JP Morgan Chase – New Owner-Occupied residential loans that are owned and serviced by JPMorgan Chase.  As with Fannie Mae, the moratorium of foreclosures end date, March 6th.

Citigroup – All Citi-owned first mortgage loans that are principal residence and on loans for which understandings with investors have been reached.  Moratorium end date – March 12th.

Bank of America (also Countrywide now renamed Bank of America Home Loans) – Delay foreclosures sales on owner occupied properties whose mortgage loans are owned and serviced by B of A or Countrywide  – Through March 6th.

Wells Fargo (also Wachovia) – For Loans it holds.  The moratorium is expected to remain in place until the government’s foreclosure prevention plan is announced.  The majority of Wells Fargo’s mortgage loans are serviced by it and owned by other investors. 

 

Business, Environment

The Flu, the Real Danger to You and the World Economy

flu-virus

What’s the big concern about this flu that’s going around now? According to Daniel J. DeNoon and reviewed by Louise Chang, MD is that this is an unusual strain of virus.

According to Mr. DeNoon, “there are four different types of swine flu strains that commonly circulate among pigs. Most recent swine flu viruses have belonged to the H1N1 and H3N2 subtypes. Pigs typically get sick but usually don’t die from swine flu.”

“What is alarming about the current flu that has started is that it’s acquired genes from swine, bird and human flu bugs. It also has genes from Eurasian swine flu viruses that aren’t supposed to be in North America.”

So we have a “cocktail” of virus that could mutate into something more dangerous. I’m not a scientist, but I believe that is the real concern of the government.

Just how concerned:

“We are declaring today a public health emergency,” Secretary of Homeland Security Janet Napolitano said today at a White House news briefing. That declaration is “standard operating procedure,” Napolitano said. “It is similar to what we do when we see a hurricane approaching a site. The hurricane might not actually hit but allows you to take a number of preparatory steps. We really don’t know ultimately what the size or seriousness of this outbreak is going to be.”

For more information on the flu and how to protect yourself, go to WebMD Health News

We’ve covered what the current flu worries are. Now here are some of the ramifications that are already happening to the economy because of the flu outbreak. According to CNN An article about how the could derail the fragile global economy:

“Already, Russia has banned imports from Mexico, California and Texas. As the flu progresses, the fear is an overreaction and the banning of exports, perhaps worldwide.

But if the outbreak does grow into a large-scale pandemic, Auger said global trade could be disrupted through export restrictions.

“It could lead to travel restrictions for goods and people through major control over ports and airports,” he said.”

My wishes and prayers are with all of you, be safe and stay healthy.

Real Estate, Travel

Worried, Recession? The US is Still the Best

Street Scene Buenos Aires
Street Scene Buenos Aires

There was a very interesting article in the Buenos Aires Herald today by James Neilson. The Herald is a news publication printed in English and you can usually get one at the numerous newspaper stands on the streets of Buenos Aires.

Mr. Neilson points out that we are in a better position to pull out of this recession quicker and healthier then Europe, Japan, China or Africa. If you notice, our dollar continues to gain strength against the Euro, the Yen and almost all other currencies of the world.

In his article, Mr. Neilson states in part:

“But bad as the situation in the US undoubtedly is, elsewhere it is even worse. That is one reason why in these troubled times jittery investors want to get their hands on dollars. Another is that, no matter what happens in the next year or so, the medium-term prospects facing the US are far more promising than those of Europe, China or Japan, to name just three possible alternatives. This being the case, it is somewhat premature to speak of the imminent end of US economic hegemony and its replacement by a more equitable arrangement involving at least half a dozen other countries. “

Mr. Neilson goes on to explain the problems that Europe, Japan, Russia, China, Africa and South America are facing. Problems that is severe with no easy or probable solutions for them.

For example, Mr. Neilson says about China and summary:

“China’s outlook is only marginally less alarming than that of Europe and Japan. Thanks to the one-child policy, before too long there will be a huge number of single men who will be expected to support their aging parents. Many will not take kindly to the idea. Though China is bursting with talented people who, unlike so many of their North American and European contemporaries, are willing to study and work as diligently as any Victorian, before that immense human capital can be properly tapped China’s rulers must find a way of maintaining social discipline during slumps like the current one. That will not be easy. Before everything went haywire, Chinese officials insisted that their country’s economy would have to grow by at least 8 percent a year simply to provide enough work to satisfy the millions who were leaving the poverty-stricken countryside. China’s GNP may still be increasing, but at an annual rate that by all accounts is far lower than 8 percent.

As a result, if the recession, or depression, lasts as long as pessimists fear, the US will in all probability emerge in far better shape than any of its hypothetical rivals. With this in mind, it is quite natural for Asian, European and Latin American investors to put their money on the US dollar rather than on the Euro — which may not survive the mayhem — the battered pound sterling, the Swiss franc, the yen, the yuan or even the peso. The US may be groggy and could soon hit the canvas, but it would be less likely to remain there for longer than the other big countries that would go down with it.”