Archive for December, 2008
CALIFORNIA HOUSING REPORT RELEASED
HOME LOANS, INDUSTRY NEWS, TIPS FOR BUYERS, TIPS FOR SELLERS
C.A.R. summarized 2008 in a recent housing market report. Home sales have increased, home values have declined, and the credit crunch had a significant impact. The report found one in five home sales was due to foreclosure, short sale or default.
In general, sales improved compared to last year in virtually all parts of the state. Sales were spurred by significant price declines in the Central Valley and Southern California. The pace of sales hit bottom in the last quarter of 2007. The report predicts 395,000 homes will change hands this year, a 12% increase from last year. CAR expects a 12.5% increase in units sold for 2009.
The number of sellers who sold their home for a loss doubled from 11.9% in 2007 to 22.2% in 2008 according to Leslie Appleton-Young, CAR’s lead economist. The report shows the value of home ownership-sellers that owned their homes for a longer period of time and did not refinance, were less likely to experience a loss from their home sale. Nearly half of sellers that owned their home for less than 3 years had a net cash loss. Only 3% of sellers that owned their home for more than 5 years experienced a loss in 2008, the same rate as 2007.
The statewide median price is expected to decline 31.7% to $381,000. CAR predicts a 6% decline for 2009 to $358,000, Leslie added. First-time buyers increased from 30.4% in 2007 to 35.9% in 2008 but is behind the long term average of 38.3%. In the mid-1990’s, the number of first-time buyers was close to 50%. Tighter credit standards and the credit crunch resulted in many first-time buyers being turned down for loans.
The percentage of FHA loans originated skyrocketed in 2008 to 18.8% compared to 1.2% in 2007. Only 7.5% of loans in 2008 were ARM’s (adjustable rate mortgages). Distressed properties in 2008 had a median sales price of $330,000, median square footage of 1600 and a median price per square foot of $197 . Locally, the median price is closer to $210,000 and the median cost per square foot is closer to $150.
Price discounts set a record in 2008 at 7.5%, more than double the long range average of 2.8%. In 2007, the sales price vs. list price discount was 4.3%. Four out of five homes had to knock something off the price in order to get it sold in 2008.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
GO ELF YOURSELF!
REDDING LIFESTYLES, SHASTA COUNTY
Aren’t you embarrassed dancing all over the place like a fool? A clever promotion by Office Max allows you to upload pictures of five people and their program will assign each face to an elf that will dance their hearts out to make you laugh. Just in time for some holiday fun. Guaranteed to bring a smile to your face!
Happy holidays fellow bloggers.
http://www.elfyourself.com/
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
WHISKEYTOWN LAKE SUFFERING IDENTITY CRISIS
LOCAL GOVERNMENT, REDDING LIFESTYLES, REDDING RECREATION, SHASTA COUNTY
The latest salvo form Whiskeytown National Recreation Area Superintendent Jim Milestone is to rid Shasta Bally of its communication towers utilized for decades by radio, TV and government agencies. In fact, these towers were there before Whiskeytown Lake was filled with water behind the man-made dam. Now the man in charge at Whiskeytown NRA equates Shasta Bally to Yosemite’s Half Dome. The towers mustn’t mar such a pristine mountaintop, according to Jim.
Comparing a man-made recreation area to a naturally beautiful National Park is comparing apples to oranges. If Jim believes he is overseeing a pristine national park, he may want to review the brief history of Whiskeytown NRA. Understand that this lake, beautiful as it is, is part of a huge plumbing project. It impounds clear, cold water diverted from the Trinity River near Lewiston, then pipes it down through Shasta where it joins the Sacramento River near the town of Keswick.
September 28, President Kennedy dedicated Whiskeytown NRA just weeks before his assassination in November, 1963. In his dedication speech, he said “Shasta and its neighbors are assured water and power. They can enjoy new chances for recreational growth, and new access to open space.” Managers have expanded trail systems for horseback riders, hikers and mountain bikers but banned personal watercraft from the lake and closed some roads to 4WD users. Much of the back country is closed this winter, at the direction of the superintendent, due to hazards posed by potential mudslides after last summer’s fires burnt hundreds of acres in the area.
Jim has also made life difficult for some private property owners around the perimeter of the recreation area’s boundaries. If their access road has been gated and locked by NRA employees, property owners must prove, to Jim’s satisfaction, legal deeded access exists across the recreation area’s land. This can be a daunting task, and failure to provide satisfactory records means these properties are effectively landlocked.
As long as Superintendent Milestone keeps calling the recreation area a park, expect further limitations on access and elimination of man-made facilities, such as the towers atop Shasta Bally. It wouldn’t surprise me if this leads to an eventual ban on motor boats and vehicles on the back roads of the recreation area. In my experience, this has been the trend in National Parks across the West.
Visit the Whiskeytown Web cam at the following link: http://www.whiskeytowncam.com/
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
SEPTIC DISCUSSION SUMMARIZED
LOCAL GOVERNMENT, REAL ESTATE LEGISLATION, SHASTA COUNTY
Last Thursday evening, residents from all corners of the north state packed the Shasta County Board of Supervisors Chambers to listen as State Water Quality Resource Board Members summarized the proposed statewide septic regulations then the board listened as local politicians and residents commented. None of the 30+ speakers spoke in favor of the regulations.
Aside from a few outbursts from the audience, speakers lined up in an orderly fashion to address the state bureaucrats. The majority understood these government officials had the unenviable job of drafting regulations due to a bill (AB 885) passed by our state legislature in 2000. The proceedings were civil, and at times, hilarious. One local Aussie transplant gave a spirited lecture about overly strict civil servants interfering with private property owners efforts to peacefully enjoy their rural lifestyles.
Many valid points were submitted for the board to consider, and hopefully modify the final regulations, if they deem appropriate. Review my two earlier posts on this subject for a summary of comments I presented to the board. Here are some points made by others, including several engineers that work in the field as designers or regulators:
- The cost to repair a failed septic system will be much more expensive than the numbers quoted in the Draft Environmental Impact Report (DEIR).
- The regulations could create a black market for unscrupulous excavation contractors that will repair or replace septic systems without permits. This would happen if property owners opt to bypass local health authorities to avoid the potential cost of an alternative or engineered septic system.
- The requirement a monitoring well be installed when a new septic is installed will generate data of little value. At least three wells are needed to detect the direction of flow of the underlying water table.
- The elimination of sidewall filtration capacity when designing a leach field will likely require these fields be enlarged considerably. The new regulations will allow only the area under the leach lines be counted for percolation. If a lot has limited space, there may not be room enough for the expanded leach field.
- The requirement that septic systems and wells be tested every five years, even if no problem exists, will add millions of vehicle miles traveled yearly by well and septic engineers and pump trucks. The DEIR did not address the pollution that will be generated by these additional vehicle miles.
- Landfills have limits on how much septage can be dumped. This could create a problem of septage disposal for pump truck operators.
- The new requirements will make development of upland areas of California with rocky clay soils, high water tables, perched water tables, fractured rock or lava caps difficult or impossible, which will force growth to deeper soils typical of fertile agricultural land on the valley floors.
These regulations essentially presume a property owner is guilty of having a failing septic system or a contaminated well, until they prove their innocence by spending hundreds of dollars to periodically test both for problems. One speaker, George Theobald, got to the point when he said he tests his systems every day. He drinks a glass of water from his well in the morning, and if by noon he doesn’t have dysentery, his well is fine. He then sends his wife out into the backyard. If she doesn’t come back yelling about the stench of a failing septic system, the septic is working fine. Sorry, George, this won’t be good enough for the state come 2010!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
NEWS FLASH-MORTGAGE RATES DROP TO 4.5%
In twenty five years of selling real estate, I have never seen interest rates drop so low! Becki Isner, of Amerigroup Loan Center here in Redding, is quoting 4.5% for a 30-year fixed rate mortgage with a 20% downpayment and a FICO credit score of at least 740.
For the median priced home of $210,000 with 20% down, this translates to a mortgage payment of $851/month on a loan of $168,000. Add taxes and insurance and the payment is roughly $1,100/month! That is about equal to rent not counting tax advantages.
Homebuyers would be able to write off interest, property taxes and some loan fees. Taxes and interest are deductible and would create nearly $10,000/year in write-offs. This should save a buyer at least $250/month which equates to a net payment of $850/month. Home ownership makes sense with these very low long term fixed interest rates!
Becki Isner can be reached at 221-2626 or 949-0157 for details….
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
FIRST-TIME BUYERS HAVE ADVANTAGE ON COMPETITION
The New York Times recently published an article pointing out the advantage first-time buyers have in the current housing market. The primary reason first-time buyers are in a superior position is they do not have a home to sell in order to buy now. Most buyers have to sell their existing home before they are in a position to buy a replacement property.
Sinking home prices and interest rates also make this an opportune time to buy according to the article. Rarely do all these elements come together to create a buying environment perfect for first-time buyers. The slower market has a side benefit of greater selection of available homes and sellers willing to make repairs, credit buyer cash for closing costs, or both.
Despite the fact that home prices increase over the long run, buyers still worry that prices will continue to decline. In that case, buyers timing the market should pay down their credit cards and other loans prior to applying for a mortgage loan. The best rate and terms are only offered to buyers with credit scores above 720, according to John Ulzheimer, president of consumer education at credit.com. He also recommends prospective home buyers avoid using credit lines to borrow money, even if you pay it off in full each month, because credit scoring systems penalize those that use their credit lines frequently.
Self-employed individuals may have a difficult time securing a loan in the current credit enviornment, even with excellent credit scores and a sizeable down payment. The self-employed have a difficult time documenting their income and lenders want W-2 forms to fully account for their income.
Avoid closing credit accounts to decrease the amount of credit available. Once closed, these accounts with good history’s are not used to calculate your credit score. Maintaining zero balances on credit cards can also work against you because it does not prove you are capable of making timely payments. If you do carry a balance, keep the balance at 50% or less of the available credit limit on that account.
Conumers are entitled to free credit reports by going to www.annualcreditreport.com. I would also recommend buyers work with a local loan representative in the area they live because developing a good working relationship with a local banker has never been more important than now to navigate the ever-changing underwriting standards for home loans.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
PROPOSED SEPTIC REGS WILL BE COSTLY TO PROPERTY OWNERS
LOCAL GOVERNMENT, REAL ESTATE LEGISLATION, SHASTA COUNTY, TIPS FOR SELLERS
Property owners that utilize septic systems listen up. If the statewide septic regulations are adopted as proposed, start saving your money to comply with the new regulatory requirements. The California Association of Realtors legislative advocates have provided input as “stakeholders”
since 2002, when the State Water Resources Control Board (SWRCB) began the process of formulating the regulations . AB 885, passed into law in 2000, requires California develop and adopt regulations that would apply statewide instead of varying standards being implemented by each county’s health departments today. California is one of only two states in the nation lacking statewide regulations regarding Onsite Wastewater Treatment Systems (OWTS).
The citizenry should be aware of some of the mandates in these regulations:
- Most property owners will be required to pay for testing of their private groundwater wells, and periodic septic inspections (and pumping if needed), regardless if a problem exists or not.
- Because the regulations stipulate a minimum soil depth to groundwater and do not allow sidewall infiltration to count as surface area for water dispersion, many existing lots and parcels will be deemed unbuildable under the new regulations. Existing systems that fail will not be replaceable, leading to possible condemnation of the property.
- There is a lack of solid scientific data proving OWTS are causing water quality problems. It is likely and possible that agriculture is the major culprit. Studies should be funded, data gathered and more focused and efficient regulations developed.
- If the proposed regulations are adopted “as is”, there likely will be thousands-if not hundreds of thousands-of properties that will ultimately be deemed uninhabitable or unbuildable, even in areas that don’t have problems with septic systems.
- The lack of a variance process, where local health officials can make site-specific exceptions to the regulations, will result in many property owners losing their rights to use their land.
- The requirement that property sellers provide buyers with an operations and maintenance (O&M) manual for the OWTS should only apply to new or replaced systems. Most owners were not provided O&M manuals, may have misplaced them if they were provided, or may no longer be available if they wanted to replace them. This could be a legal nightmare for owners trying to sell their properties.
- Groundwater monitoring wells, required for new systems, are hugely expensive and alone could render a lot unbuildable. No exemptions are allowed even if the well is more than 100′ from a leach field dispersal area. Furthermore, if an impermeable layer or protective geologic or hydrological condition exists separating the well and septic systems, there is no provision for exemption.
- The list of constituents that must be tested for in the well water is overkill. Fecal coliforms, Escherichia coli and enterococci should be the only pathogens tested for. The other required items have not be shown to have a direct nexus to a failing OWTS.
- Where 303(d) listed water bodies have been identified as needing specific protection from OWTS, agriculture or wildlife has been identified as contributing factors. The arbitrary prohibition of OWTS within 600 feet of impaired water bodies effectively ensures many lots will be unbuildable or existing dwellings condemned because their OWTS lie within the protected zone. A few of the local 303 (d) water bodies include the Sacramento, Pit and Fall Rivers, Little Cow Creek, Oak Run Creek, Bear Creek, Whiskeytown, Shasta and Keswick Lakes.
Real estate agents will find themselves mired in regulations requiring delivery of owner’s manuals, disclosures of inspection histories or lack thereof and explaining new maintenance requirements to prospective buyers. Undeveloped lots approved years ago may not be able to be developed under the new requirements causing an immediate loss in value. The cumulative environmental impact of septic pumping vehicles, inspectors, well sampling, installers and maintenance vehicles will easily add millions of vehicle miles to properly regulate OWTS statewide.
The Draft EIR concludes regulations impact on real estate development or on low-income property owners to comply with expensive system repairs, maintenance or addition of supplemental treatment systems is insignificant. Hardly!
There are many other concerns regarding this legislation. The meeting will be this Thursday at 7PM at the Shasta County Supervisors Chambers. Speak now, or forever hold your peace!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
I-5 CHRISTMAS TREE STORY REVISITED
Anyone who has traveled I-5 North between Red Bluff and Cottonwood has probably noticed the scrawny tree near the rest stop decorated to the hilt every year for the holidays. This tree, and the reason it has been decorated for 40+ years has quite a fascinating story behind it that is retold from time to time. Here’s my reiteration of that story, as told by Doni Greenberg 10 years ago in the Record Searchlight.
When I-5 was being built in the early 1960’s, Cottonwood resident Carrie Bogue, who was fond of all trees according to Doni, asked Cal Trans for permission to relocate the tree away from the new path of the interstate highway. She was denied. The freeway was built, and the tree died shortly thereafter. A few years later, Carrie Bogue died at the age of 93, in 1966.
In the Spring of 1967, Ruth and Cary Chadwick, good friends of Carrie, noticed the tree she had tried to save leafed out and appeared to have been reborn. “It’s Carrie!”, they said. Carrie had told friends, including the Chadwicks of Cottonwood, “that when she died, she would come back any way she wanted.” She went on to say she’d like to come back as a tree! Could it be?
They were so excited about this, they decided to decorate it for the holidays. It has been called “The Carrie Tree” ever since by locals that know the history of the tree. And the tree has been decorated every year since. When the Chadwicks got too old and the tree got too tall, the decorating was passed down to Dale and Larry Mclure of Cottonwood in 1993. I don’t know if they still are the ones decorating the tree today. If anyone knows, feel free to comment.
What a great story and it makes me wonder if reincarnation is possible. If only trees could speak!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
REALTORS LIST REMODELING PROJECTS WITH GREATEST RETURN
INDUSTRY NEWS, SHASTA COUNTY, TIPS FOR SELLERS
According to a survey by the National Association of Realtors, exterior remodeling projects provide the 
greatest return on investment. Topping the list is wood deck additions and all types of exterior siding replacements. In the competitive market we have today, the first impression (curb appeal) is more important than ever in attracting home buyers.
The survey was conducted by Haney Wood, LLC in cooperation with REALTOR Magazine. Realtors in 79 market areas nationwide were grouped into 9 regions following 
geographic divisions used by the US Census Bureau. Realtors provided their opinions of what buyer preferences were in their particular market area.
Besides siding and decks, window replacements and kitchen remodels returned a relatively high percentage
of remodeling costs. Here’s the breakdown of return on investment as reported by the Realtor Pressroom:
- Cement siding- 86.7%
- Wood Decks-81.8%
- Minor kitchen remodel-79.5%
- Window replacements-76%
- Major kitchen remodel-76%
- Bathroom remodel-74.4%
- Attic-to-bedroom conversion-73.6%
- Basement remodel-72.7%
Some of the least profitable remodels:
- Home office-54.4%
- Sunroom addition-56.6%
- Back-up power generators-57.1%
The West Coast states, along with Alaska and Hawaii, consistently return a higher percentage of remodeling costs upon resale. Other factors that determine how great the return will be include “the home’s overall condition, availability and condition of surrounding properties, location and regional economic climate” according to NAR President Charles McMillan.
530-224-6767 or 530-9417492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
GAIA HOTEL:TOP NOTCH BANQUET VENUE
INDUSTRY NEWS, REDDING LIFESTYLES, SHASTA COUNTY
The Shasta Association of Realtors held their 80th Annual Christmas Party at the new Gaia Hotel in Anderson last night. Chef Jon Stadille presented fabulous Hawaiian fare to coincide with the “Season of Aloha” theme for this years installation/dinner dance. I have never had finer cuisine in the Northstate prepared for a crowd that topped 200 people.
A three-tiered appetizer spread greeted banquet 
attendees including skewered Beef Misoyaki and Chicken Yakitori stabbed in a pineapple half on the top tier. The second tier had fresh fruit and crudites, the bottom tier an assortment of fish including Ahi Sashimi, Lomi Lomi Salmon and Sushi Rolls.
The scrumptious salad included tangy noodles with coconut vinaigrette. Everyone was served a hot entree plate that included a variety of Hawaiian style dishes including Kalua Pig, Kalbi Ribs (phenomenal), Ezekas Chicken, potato mac, sticky rice and chicken long rice. The service staff was as excellent as the cuisine!
For dessert, each table was presented a whole Maui Christmas Haupla Cake which was cut and served with provided utensils by one volunteer dinner guest. During the meal service, entertainment was provided by Ke Aloha Polynesian ‘Ohana, a Hawaiian dance troupe from Palo Cedro. Charlie Ii and Wille Kong played Hawaiian sounds for the Polynesian dancers.
Dignitaries in attendance included termed out Assembyman Doug LaMalfa, Nadine Bailey on behalf of Senator Sam Aanestad and Anderson City Council Member Norma Comnick. Vince Malta, past president of the California Association of Realtors, drove from San Fransisco to install the 2009 Board of Directors for the local Realtor association. Vince, an avid baseball fan, wrote a reference book dedicated to baseball-used bats called LOUISVILLE SLUGGER. He brought a few copies of the book as gifts to several attendees. Thanks Vince!
The esteemed Realtor of the Year Award was bestowed upon my colleague at Real Estate Professionals GMAC, Donna McFarlane. Mary Spence, of Coldwell Banker C&C Properties was installed as 2009 President of the Shasta Association of Realtors.
I believe this was the first banquet at Gaia where the food was prepared on site by the Gaia’s restaurant staff. I was told many of the entrees will be on the menu when they open the restaurant to the public in the very near future. Anyone seeking a top notch banquet facility to host a business function may want to give Gaia a try. This was hands down the best Inaugural Dinner function I have attended in 25 years in Redding! Everyone I spoke to about the fare felt the same way. My compliments to the chef and all his staff that made this a memorable evening!
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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