Market Analysis, Chino, Chino Hills

February 10th, 2016

March Market Analysis

I have talked with many homeowners over the last several months asking me if the market is going to fall like it did in 2007. My answer to them is we are no where near the level of borrowing today that the homeowners experienced in 2007. Banks and lenders were giving money away back then and homeowners were mortgaged to the hilt. Today, with the new lending rules in place, buyers have actually bought homes they can afford. As long as the builders are building new houses the resale market should hold up.

Home Prices

The medium single family resident home price for Chino is the same this month with an average home price of $425,000. Chino Hills single family residence is down slightly at $575,000. We are now in the 3 month of sales since the fed raised interest rates a 1/4%. It is evident that the housing prices have stayed flat for the immediate future. As we move into the spring buying season we will see how the market moves.

Days on the Market

The Median days on the market are showing signs of dropping as it should. Home buyers have been flooding the market to purchase homes before the next interest rate hike. As I have said before if your home is ready to sell it usually does. Investors are not finding value in homes that needs repairs so they are on the market for longer periods of times.

Inventory Supply

Inventories are trending down to about 2.5 months supply. Homeowners are benefiting from the lack of inventory with most properties receiving multiple offers. Sellers are choosing the best financial offer and the most likely to close even if it isn’t the highest offer. This will be a good start to the spring buying season for sellers.

February Market Analysis

Home Prices

Market analysis for February for Chino and Chino Hills. The end of 2015 housing trends for Chino and Chino Hills are continuing into January. Home values have stayed about the same with Chino average home value at $425,000 and Chino Hills average at $576,000. Buyers continue to shop around for value, wanting homes with modern touches. Homeowners that have invested into their homes tends to sell sooner and closer to their asking price

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Days on the Market

Inventories for Single Family homes are declining again this month according to my market analysis charts. Very common for this time of year as most people are trying to finish paying for Christmas and waiting for their tax returns. I have been helping several buyers over the last few months and we have found ourselves bidding on homes with multiple offers. A trend I dare say will probably last until the summer. Good news for Sellers.

The Market analysis for “days on the market” is flat for Chino and has risen slightly for Chino Hills. A little misleading in that inventories are declining. Buyers today are looking for homes they can move into with little or no repairs. Homes in need of repair are normally bought by investors or buyers looking for value.  They are finding it more difficult to earn the margins or profits they want out of these homes. These homes tend to stay on the market for much longer periods or do not sell at all.

New Constructions projects are popping up in all areas. Standard Pacific homes have started new projects in Chino Hills and Chino. Montarra at Vila Borba is a very upscale home with many features for the modern family. Amherst at College Park is another new development by Standard Pacific. If you are thinking of seeing these properties, give me a call and I will set up a time for you to view the homes. I can help with closing costs if I am with you on the first visits to these great communities. Just give me a call.

January Market Analysis

Home Prices

Here is the market Analysis for January in Chino & Chino Hills. This is just for single family residence homes. Average sale price for Chino is $425,000, a 3.7% increase, and Chino Hills is $579,000, a 2.5% increase. In December the Fed increase the discount interest rate 1/4% with a promise of  additional increases for 2016. I believe the 1st quarter will see a jump in home purchases as buyers jump into the market and bring down inventories. I anticipate that starting in the 2nd quarter inventories will rise and home values struggle to move forward. The chart below shows the last 3 years of home values. We have had a huge increase from the end of 2012. 2015 will prove to be a more difficult year for home values but should see some increases as household income should rise above average in 2016.

Inventory Supply

Inventories are on the decline. Chino has a 2.4 month and Chino Hills 2.5 month supply of single family residence homes. Down from the July peak of 4.8 and 4.9 months supply. Not since the 2012 rush to purchase homes have we seen this kind of decline. Even though we have seen a drop in inventories, days on the market are still roughly 50 days.

If you would like additional information or other areas of the Inland Empire. Also, follow me on Facebook – Randy Gariador, Chino Valley Reator – for more home improvement ideas and stats.

Market Analysis – Dec – Chino and Chino Hills

December 5th, 2015

Market Analysis  – Dec – Chino and Chino Hills

As we approach the end of the year and the Federal Reserve dangling an interest rate hike, the first since 2006, we find that the real estate market has picked up in sales as the charts below will show. The Fed has the green light to raise rates in December with USA Today noting an average increase in employment of 200,000 jobs per month for 2015 as one of the reasons of a healthier economy . Buyers that have been waiting to purchase a home will feel the need to move forward before and after the rate hike causing a short term jump in home sales. This should last through the 1st quarter then slide back to more normal volumes. As you will see in the charts below we are leaning towards increased pricing, lower inventories, and higher interest rates that should make it an active 1st quarter in 2016.

Overall value of homes sold from December 2014 – 2015 in Chino and Chino Hills are up 4.1% & 2.5% respectively. Even though there is an increase in overall prices for the year I still see a decrease in values from November. Chino average is $404,000 down $1,000 and Chino Hills is $558,000 down $7000. This could easily be the mix of homes sold and will need to follow this trend in the coming months.

Homes sold are increasing year over year with Chino closing at 812 units, 2.5% increase and Chino Hills closing at 870 units, 14.2% increase. This chart is indicative of buyers feeling the Fed will be increasing rates and may be the last chance to have interest rates below 4% for a 30 year conforming loan.

Inventories are declining  with Chino at 2.5 months supply and 4 months supply for Chino Hills. I have talked with many home owners this last month and the general feeling is that it has become a buyers market. This is another indication that buying has picked up this 4th quarter. Last year we did not see a drop in inventory until January & February.

 

Let me know if you have another area you would like similar information on. I would be glad to share the stats with you. Also, like my facebook business page “Randy Gariador, Chino Valley Realtor” for more home improvement ideas and tips.

Do’s and Don’ts of Holiday Shopping

November 28th, 2015

Do’s and Don’ts of Holiday Shopping.

Shopping this holiday season

Shopping this holiday season

This is always a challenging time for families thinking of purchasing a home. Credit cards create a “buy now, worry later” hazard for shoppers. Thanks to Retailers advertisements featuring heavily discounted items, we tend to overextend ourselves with our credit card debt. However, shoppers need not risk financial peril if they shop smartly and heed some dos and don’ts of holiday shopping.

Do set a budget. Establish what you can afford to spend on gifts and other seasonal trimmings early on. The National Retail Federation estimates that the average consumer will spend around $700 this season. If you cannot afford to pay your entire credit card off to avoid steep interest charges then you should rethink your budget and set one up that you can afford. Remember, any credit cards you still owe money on will reduce your purchasing power in shopping for a home. Lenders use a debt to income ratio to qualify homes buyers for loans.

Don’t be fooled by false sales. Retailers  understand that a good advertised deal lures shoppers into their stores. As a result, some retailers mark up the cost of certain items in order to slash the prices for holiday sales. Even if you are saving the assumed 50-60 percent, the final cost of the item still may be higher than normal. This is true with home shopping. Just because a seller has discounted their property $20k – $30k doesn’t mean that they have discounted the true value of the house. Always have a R.E. Agent do an Comparative Market Analysis (CMA) on any home you are interested in.

Do schedule time for shopping. Hectic schedules results in last minute shopping. Set aside time to actually shop different stores to find the best deal. You want to think through your decision and not regret your hasty purchase. Same with looking for a home. Do your homework. The National Association of Realtors estimates that buyers start looking for homes 12 months before they are ready to buy.

Don’t double buy. Some shoppers use the holidays sales to purchase items for themselves. While it is tempting to treat yourself come the holiday season, this is a quick way to blow your budget right out of the water.  If you are in escrow and waiting to close before the end of the year don’t start buying large priced items for your new home. This could raise your debt to income ratio and cause you to have to finance your purchases into your home loan.

Don’t be afraid to delay some purchase if need be. If you or your company is hosting an after holiday party, delay purchasing those gifts until after December 25th to find even deeper discounts on the items you want to buy. All lenders check your credit just before they fund the loan to make sure there are no changes to your credit. You will need to explain any large purchases whether or not you used credit or cash.

Do keep a level head. Some people forget the season is for spending time with loved ones. Getting swept away by shopping and worrying about deadlines can make the season less enjoyable. Don’t allow the stress of holiday shopping to compromise an otherwise joyous time of your. With that I wish you and your family a wonderful holiday season.

 

Giving Back – Sleeping bag drive

November 22nd, 2015

Giving Back – Sleeping bag drive to help the homeless.

searchOn December 20th, 2015 at 6pm many of my fellow Real Estate agents and Keller Williams will be handing out sleeping bag to the homeless. Mostly from the LA skid row area. Peter Mendez from our Covina office is heading up this group. This is their 5th year back on the streets of skid row to bring a little cheer and warmth to those less fortunate for this holiday season. The group have given out thousands of bags and hygiene kits to make the less fortunate’s life a little better. They are asking for donations of $15 – $20 for the sleeping bags or you can give gift cards for the cause. Lets make this the best event ever. You can contact Peter Mendez at 606-786-5487 or petechtc@hotmail.com. If are wanting to help out in passing out the bags on the 20th they are meeting at 6th and Maple in Los Angeles, be sure to contact Peter to let him know.

 

IMG_20151114_095137716Also, I saw there was a food drive at Bravo Burger this last weekend. If you would like to give to a great organization “Food for Life” this holiday season stop by Bravo Burger with your can foods. They located at 14698 Pipeline Ave, Chino Hills, CA 91709

I am sure their are other locations around the city so if you find one please let me know and I will add it to the list.

 

Solar Panels – Does it bring home value

November 15th, 2015

Solar Panels – Does it bring home value to your home when it comes time to sell.

Solar PanelsI have done some research on our MLS looking for homes that have sold since July with solar panels in the cities of Chino and Chino Hills. Last week I gave you stats showing the average home price selling for 98.7% and 97.4% of their original asking price. What I have found is homes sold with solar panels in Chino were 96.8% lower and in Chino Hills that number was 97.2%. Of the approximately 20 homes I found 80% had the solar systems paid for or would be paid at the close of escrow. For now, I think that this is going to be the norm when buyers are considering homes with solar. What we are learning as agents is there is no definitive answer for home owners positive or negative to their home values except for the obvious monthly savings in electrical costs.

As a buyer, considering a home with Solar panels may pose additional challenges for you. Many home owners have installed solar panels either by Purchase, Lease, or Rental. All 3 are secured with a deed to the property the units are paid in full. Buyers for the home will need to include in their debt to income ratio any monthly payment that is transferable at the close of escrow. They could include any HOA Fees, Mello Roos taxes, Solar leans, or any energy improvement purchased through the HERO program. Solar payments vary based on usage so make sure you get this information to you lender as quickly as possible so they can insure you can qualify to purchase the home.

Market Analysis – Chino & Chino Hills

November 7th, 2015

Market Analysis – Chino & Chino Hills

As we finish off a great year in real estate I wanted to share with you what the numbers show. Although no one can predict the future we can take some positives from these charts that we are still growing.

On a rolling 6 month average we have a 4.1% increase in Chino and a 2.4% increase in Chino Hills in Sales price year over year. For the entire So Cal MLS we had an average increase of 5.4% in sales price.

Although we have slowed in our year over year increase we are still gaining in our home values. As good as that may sound I am a little cautious in thinking we are going to continue down the path of growth. One of the other matrix we look at is days on the market. Both Chino and Chino Hills has increase to 45 days and 52 days, an increase of 2.2% and 20.9% respectively. One of the biggest reason homes are on the market longer is the sellers are having to negotiate their homes value. 1.3% for Chino and 2.6% does not sound bad but at an average price of $440k for Chino and $565k for Chino Hills that mean $5,000 – $15,000 in home value.

 

Next time I will share some of the new home sales information for the area. I have always felt that as the new home market goes so does the existing home market. In other words if they are healthy and growing so will the resale market.

If you are interested in other areas let me know and will be glad to send them your way.

Solar Panels vs Redwood Trees – How the courts ruled

October 17th, 2015
Redwood Trees

Redwood Trees

Solar Panels vs Redwood Trees and how the courts ruled in favor of the solar panels.

I was having dinner with family when somene brought up a court rule about trees blocking the neighbors solar panels. I read up on it and  found it interesting. Something to know whether or not you have solar panels on your home.

In 2001, a home owner in Sunnyvale installed solar panels on the roof of his home. The next door neighbor had several redwood trees growing on their property however at the time of installation the trees did not block the sunlight from shining onto the solar panels. Over time the redwoods grew taller and eventually blocked the sunlight from the panels. The owners of the redwoods did not think they should have to cut down the trees because they were planted before the solar panels were installed. But, after 6 years of legal battles, the judge ruled in favor of the solar panels. The owners of the redwoods was ordered to cut down 3 of the 8 redwood trees.

You may be surprised to learn that there an obscure California law enacted over 3 decades ago requires that any new growth from trees can not block more than 10% of the production from 10am – 2pm each day. This is the first time the “Solar Shade Control Act” was used in court. The fines for not complying with the law could be up to $1000 per day. After this ruling the owners of the redwoods decided not to appeal because of legal fees and court costs. However, they are asking lobbyist to help overturn or modify the current act. Time will only tell whether this will happen.

As a fellow homeowner, properties that have trees on the northside (as a general rule) of your lot, may be asked by their neighbors to keep your trees trimmed or have them cut down. And, it might not be just your neighbor asking. Companies supplying and maintaining these panels for profit may ask themselves. With this court ruling in their back pocket, they would have every right to ask for you to comply.

Hope you found this interesting.

Is Solar right for you?

October 7th, 2015
Home Solar Panels

Home Solar Panels

Is Solar right for you?

Many homeowners are wondering if Solar is the right move for them. Solar has been around a long time but only recently has it become popular for producing power for homes recently. In 2002, California established its Renewables Portfolio Standard (RPS) Program, with the goal of increasing the percentage of renewable energy in the state’s electricity mix to 20 percent of retail sales by 2017. California has used tax incentives to help kick start the solar craze and really imitate a whole new industry. As a realtor, I have seen some of the positives and negatives to owning, leasing, or renting solar systems.

At first, Solar companies only wanted to sell you their systems. They used 3rd party financing to keep their investments minimal. Home owners would have to come up with an initial investment, usually 5%-20% down. When sales did not take off for the solar companies, they introduced leasing options so that the initial deposit was deferred to the end of the contract. You might find this familiar in that the auto industry have used these choices for years. Again, Solar companies saw an initial rise is sales but still was not expanding as quickly as the industry needed to meet the long term plan of Colifornia’s Renewable Portfolio Standards.

Now, Companies like Solar City are being backed by big investment companies. Tesla Motors has backed Solar City and their rental programs. The rental program works like this. The companies will install and maintain the systems for the home owners. The home owner agrees to pay a set rate for all the electricity produced from the installed panels. Usually this rate is your tier 1 rate from Edison. Most contracts that I have seen have a built in annual rate hike of 3%. At a $.17 tier 1 rate, 20 years of increase could mean an increase of $.128 or $.298 per kilowatt. There is nothing in these rental contracts that really say they would or would not raise the rate a full 3% each year or that they would follow any increases from Edison. It just says that they can, which does worry me a little. You could be paying more for electricity than you would have from Edison.

For me, I find the rental program the best choice of the 3 but I am not completely sold. Solar companies are trying to keep a good public image so I am sure they will not do too much to tarnish that image. Over the next few weeks I will talk about some of the problems and benefits Solar has for home owners.