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Carlsbad to Las Vegas

Finally!

What happens in Las Vegas will soon be able to start at San Diego County’s McClellan-Palomar Airport in Carlsbad.

County of San Diego, Elite Airways and Cal Jet Air officials announced Wednesday at McClellan-Palomar that “Cal Jet by Elite Airways” plans to start flying commercial flights twice a day between the airport and Las Vegas starting Sept. 28.

The airline has already started taking reservations for tickets on its website.

County officials said Cal Jet by Elite Airways plans to operate a single Bombardier CRJ700 jet, which has 64 seats, from McClellan-Palomar.

The flights will allow local residents a way to comfortably fly without having to drive downtown to San Diego International Airport, and become the first commercial air service at McClellan-Palomar since 2015.

McClellan-Palomar is one of eight airports operated by the County of San Diego’s Department of Public Works and the only one that offers commercial flights for county residents. Like all other commercial airports, passengers at McClellan-Palomar must check in for flights and be screened by federal Transportation Security Administration agents. However, because McClellan-Palomar is a smaller airport, passengers can escape the traffic, expensive parking and long security lines at other major airports.

The County has made several improvements at McClellan-Palomar in recent years, including a $24 million renovation in 2009 that added a modernized, 18,000- square-foot terminal, parking and a restaurant, “The Landings.”

Parking at McClellan-Palomar is $5 a day.

For more information or to book flights, go to Cal Jet by Elite Airways website.

http://www.countynewscenter.com/countys-mcclellan-palomar-airport-gets-commercial-air-service/

Posted by on Aug 16, 2017 in Jim's Take on the Market, Local Flavor | 1 comment

Coastal Pendings and DOM

As you scroll over previous years below, you can see that the mid-summer surge we’ve been enjoying is more uniform this year:

The median days-on-market time for last month’s detached-home sales was about the same as last July – and creeping up lately (scroll over graph):

In spite of higher prices, the number of new listings has dwindled:

It’s all good….until it isn’t!

Posted by on Aug 16, 2017 in Jim's Take on the Market, North County Coastal | 0 comments

Seller Cancelling the Purchase Contract

There are no back doors for sellers to cancel, unless the buyers don’t perform.  Thanks Bob for a great summary!

LINK

Breaking up is hard to do. So is cancelling a California real estate purchase contract. Especially if you are the seller. That is why, a little over a year ago, the legal department of the California Association of Realtors (CAR) produced a memorandum titled, “How a Seller May Cancel a Purchase Agreement: Checklist and Q&A”

The need for such an advisory arises out of the fact that a non-performing buyer may still want to buy. Sometimes buyers miss performance deadlines due to nothing more than sheer inefficiency. Sometimes it is because things have not gone as planned (e.g. they don’t yet have the money for the increased deposit that is due). And, sometimes, they stall the closing in an attempt to squeeze the seller for a further concession. In each case, they still want to buy — just not on exactly the terms that had been agreed to.

The CAR memo notes: “Many sellers and agents are impatient. They want the contract canceled yesterday. But rushing the process of cancellation will often lead to a defective or questionable cancellation. What good does it do to cancel a contract if the buyer can come back and possibly claim a right to buy?”

For what reasons may a seller cancel?

In a typical situation, the standard purchase contract (RPA) provides exactly ten reasons. The CAR memo provides the following list: (1) buyer failure to remove an applicable contingency; (2) buyer failure to deposit the earnest money, or an increased deposit; (3) funds for money deposited are not good; (4) buyer fails to deliver prequalification letter; (5) buyer fails to deliver verification of down payment and closing costs; (6) seller has reasonably disapproved of the verification of funds; (7) buyer fails to return the Transfer Disclosure Statement, Natural Hazard Disclosure, lead disclosures or other disclosures (if required); (8) buyer fails to sign a separate liquidated damages form for an increased deposit; (9) buyer fails to deliver notice of FHA or VA costs or terms (if applicable); and, finally, (10) buyer does not close escrow on time.

The ten reasons listed are in a standard transaction. Other possibilities could be added, such as a contingency for short sale approval, or the purchase of another property. Also, there are common law legal reasons such as fraud or duress.

When a buyer has failed to comply with one of the conditions in 1 — 9 above, the seller must, before canceling, first give the buyer a Notice to Buyer to Perform (NBP). In such an instance, it is important that the seller and his agent are careful to calculate correctly what is the buyer’s deadline date for compliance. The NBP can be delivered no earlier than two days before that date.

If the buyer has failed to close escrow on time (condition #10), then the seller should use the Demand to Close Escrow (DCE), not a notice to perform.

It is also important that the seller has fulfilled all of his obligations with respect to the buyer’s contingencies. “The [Purchase Contract] specifies that where the seller has sent out disclosures, reports or other information late, then the buyer will have an additional 5 days after receipt to remove contingencies if those 5 days go beyond the [contractual] contingency period.”

Sellers will often want to retain some or all of a buyer’s earnest money deposit. In cases where an NBP has been used, this is not possible. The purchase contract gives the seller the right to cancel if the buyer has not performed after receiving an NBP, but it also provides that the seller will release the deposit money, less costs incurred. This is not the case, however, when the seller has given the buyer a Demand to Close Escrow (DCE).

If the buyer has not conformed with a Notice to Perform, or has not closed after receiving a Demand to Close Escrow, the seller may then deliver a Cancellation of Contract (CC) to the buyer. This form comes in two parts: one cancels the contract, the other cancels escrow and provides for disposition of the deposit money. It is important to note that the first part, unlike the second, does not require the signatures of both parties. It is relevant again to quote from the CAR memorandum:

“Cancellation is a unilateral act regardless of whether there is an open escrow. The ten reasons for cancellation as outlined confer upon the seller a right to cancel unilaterally. It is irrelevant whether the buyer ‘agrees’ to the cancellation. As long as the seller has properly followed the correct procedure, the seller’s cancellation will be effective.”

It goes on to say, “Escrow may require signatures from both parties to cancel the escrow, but the fact of an escrow being open does not affect the validity of the seller’s cancellation.” And further, “The fact that there is an open escrow does not by itself mean that the initial buyer retains a right to buy. If the contract was properly cancelled, then a seller may sell the property to a subsequent buyer.”

Of course, there are still issues to be discussed. What happens to deposit money if the buyer balks? Can the property be put on the market if escrow isn’t cancelled? What is the prudent thing to do? & etc. But those are all for discussion some other day.

Posted by on Aug 15, 2017 in Jim's Take on the Market | 0 comments

Inventory Watch

Last week’s comment: “In spite of what seems to be a somewhat bloated end-of-summer inventory, the new pendings have been very solid”:

Week
New Listings
New Pendings
Jul 24
86
61
Jul 31
90
75
Aug 7
99
71
Aug 14
76
65

August 14th: I said ‘somewhat bloated’ because of the higher-end inventory.  Today there are 435 houses for sale that are listed over $2,400,000 – but only 249 have sold this year, or about 35 per month.  A year’s worth of inventory!

Conversely, there are only 487 houses for sale listed under $2,400,000, and 1,685 have sold this year – which means we have about 2 month’s worth of inventory priced under $2,400,000!

Read More

Posted by on Aug 14, 2017 in Inventory, Jim's Take on the Market | 0 comments

Home Unfurnishing

It’s all junk now – do your kids a favor and ditch it while you can! H/T daytrip:

http://www.nextavenue.org/nobody-wants-parents-stuff/

So please forgive the morbidity, but if you’re lucky enough to still have one or more parents or stepparents alive, it would be wise to start figuring out what you’ll do with their furniture, china, crystal, flatware, jewelry, artwork and tchotchkes when the mournful time comes. (I wish I had. My sister and I, forced to act quickly to avoid owing an extra months’ rent on dad’s apartment, hired a hauler to cart away nearly everything we didn’t want or wouldn’t be donating, some of which he said he’d give to charity.)

Many boomers and Gen X’ers charged with disposing the family heirlooms, it seems, are unprepared for the reality and unwilling to face it.

Dining room tables and chairs, end tables and armoires (“brown” pieces) have become furniture non grata. Antiques are antiquated. “Old mahogany stuff from my great aunt’s house is basically worthless,” says Chris Fultz, co-owner of Nova Liquidation, in Luray, Va.

On PBS’s Antiques Roadshow, prices for certain types of period furniture have dropped so much that some episode reruns note current, lower estimated appraisals.

And if you’re thinking your grown children will gladly accept your parents’ items, if only for sentimental reasons, you’re likely in for an unpleasant surprise.

“Young couples starting out don’t want the same things people used to have,” says Susan Devaney, president of NASMM and owner of The Mavins Group, a senior move manager in Westfield, N.J. “They’re not picking out formal china patterns anymore. I have three sons. They don’t want anything of mine. I totally get it.”

Read full article here:

http://www.nextavenue.org/nobody-wants-parents-stuff/

The biggest consignment store in North County:

http://consignmentclassics.net/

Posted by on Aug 12, 2017 in Jim's Take on the Market, Tips, Advice & Links | 9 comments

Results of Bank Settlement

Kamala Harris, who has been dubbed the ‘female Obama’, is likely to run for president of the United States – possibly as soon as 2020.  This is a long article on her performance in public office:

LINK

This excerpt summarizes the impact from her $20 billion foreclosure settlement – another example of how the bankers got a slap on the wrist:

The deal Harris got for California was ultimately much better. It provided $18.4 billion in debt relief and $2 billion in other financial assistance, as well as incentives for relief to center on the hardest hit counties. This is particularly impressive when one considers the banks had originally only offered California, the state hardest hit by the housing crisis and fraud, $2-4 billion.

Nonetheless, the settlement was woefully inadequate. For one, while the $20 billion total sounds good, it was a fraction of what the banks would have had to pay to compensate for all of their malfeasance. For instance, investors had won $8.5 billion in a settlement with Bank of America over mortgage securities backed by faulty loans.

Secondly, the banks themselves paid very little — only around $5 billion, with most of the settlement involving the banks modifying loans owned by others, such as pension funds, who had nothing to do with the misconduct that necessitated the deal. In terms of direct financial relief, underwater homeowners — weighed down by average debt of close to $65,000 each — received around $1,500 to $2,000 each. One called it “a slap in the face for a lot of us.”

Moreover, more than half of the $9.2 billion in principal loan forgiveness in the state went to second mortgages, and many of those were already delinquent. While it did benefit homeowners, it also meant, as one economist told the LA Times, that in practice the banks “were writing off loans that were essentially dead.” A year later, only one-fifth of the aid went to first-mortgage principal forgiveness. And even at the end of this, just 84,102 California families had any mortgage debt forgiven — far short of the 250,000 originally predicted.

Read More

Posted by on Aug 11, 2017 in CA Homeowners Bill of Rights, Foreclosures, Jim's Take on the Market | 0 comments

Glen Campbell, R.I.P.

We lost an incredible musician yesterday; Glen Campbell. He was probably one of the first crossover stars, who started as a country session player and became a mainstream radio and TV star in his own right. This is the first remark in the Youtube comment section of this video:

When Glen Campbell starts his brilliant solo, surrounded by all the GREATEST legends of Country Music, every single ONE OF THEM is absolutely DAZZLED….. (especially the guitar players.) He will live FOREVER as one of the greatest guitarists of ALL TIME.

Glen was also one of the most famous people to chronicle his struggle with Alzheimer’s. Here is his last song, with clips of his family:

http://www.latimes.com/local/obituaries/la-me-glen-campbell-2050-story.html

Posted by on Aug 9, 2017 in Jim's Take on the Market, Wednesday Rock Blogging | 1 comment

Boomers Causing Gridlock

Hat tip to daytrip for sending this in!

LINK

An excerpt:

People 55 and older own 53 percent of U.S. owner-occupied houses, the biggest share since the government started collecting data in 1900, according to real estate website Trulia. That’s up from 43 percent a decade ago. Those ages 18 to 34 possess just 11 percent. When they were that age, baby boomers had homes at almost twice that level.

Public policy contributes to the generational standoff. Property-tax exemptions for longtime residents keep older Americans from moving. Zoning rules make it harder to build affordable apartments attractive to senior citizens.

“The system is gridlocked,” says Dowell Myers, a professor of urban planning and demography at the University of Southern California. “The seniors aren’t turning over homes as fast as they used to, so there are very few existing homes coming online. To turn it over, they’ll have to have a landing place.”

Read full article here:

https://www.bloomberg.com/news/articles/2017-08-08/baby-boomers-who-won-t-sell-are-dominating-the-housing-market

Posted by on Aug 9, 2017 in Boomer Liquidations, Boomers, Jim's Take on the Market, Listing Agent Practices | 5 comments