Copy for Real Estate Guide Column for 4-24-09

REAL ESTATE PATTERNS
By Ken DuVall

GLIMMER OF HOPE

Yes, per Kiplinger, the economy is improving but don’t get carried away just yet. The gains are small and the recession will linger at least through midyear. First quarter GDP figures due out this month will be better but not by much. Sales of new and existing homes are higher, fueled by foreclosures, record low mortgages rates, and the first time home buyers tax credit.

The Labor Department reports initial jobless claims plunging by 53,000 to 610,000 last week, the lowest since January. However, the number of people collecting unemployment checks surged by 172,000 to 6.02 million, another record high. Sales of cars and light trucks rose in March, another positive sign. While the stimulus will bring more gains this summer, unfortunately, the job market will continue to suffer into 2011.

In sum: The economy hasn’t reached bottom yet, but it’s getting closer. The Fed has done about all it can to calm the markets. What’s needed now are clear signs that the recession is truly ending so investors start breathing easily again.

Unfortunately, legislation severely limiting mortgage options will slow housing’s recovery. It had to happen. Congress will make plain-vanilla 30-year fixed loans with 20% down the norm, restrictions which will all but eliminate risky loans. That will keep buyers who can’t afford the payments out of the market. But lenders agree that steps are needed to restore confidence in housing markets.

The dollar will stay strong through this year. Global investors will continue to view the greenback as the safest haven available. Look for it to hit multiyear highs against all other currencies over the next 6 months. The buck is up 15% from a year ago. Amen to that!

A new “industry” rears its ugly head. Squatters are brazenly moving into foreclosed homes all over the country in cahoots with numerous “advocacy” groups, some secretly, others openly, variously calling themselves “Take Back the Land”, “National Coalition for the Homeless”, “Coalition on Homelessness & Housing”, “Poor People’s Economic Human Rights Campaign”, “Welfare Rights Union”, “Task Force for the Homeless”, on and on.

The groups have been likened to a modern day underground railroad. Illegal squatters can last up to a year before being evicted. Neighbors with several vacant homes on their block are not objecting. The groups scout foreclosure lists to find the homes. The squatters agree to keep up the property but usually don’t, mostly leaving damaged and stripped homes behind.

There’s even competition between groups. One advocacy group director said, “We had a move-in scheduled for one morning and found another squatter had already taken over. We went to a different nearby home and someone had taken over that ‘squat’ too. We always change the locks but they had them changed again.”

And finally, now we’ve got Chinese drywall imports made with too much sulfur content that makes your home smell of rotten eggs and corrodes all metal- plumbing fixtures, wiring, door hinges, jewelry, silverware, etc. - in the house. Let’s just forget it and move to Somalia and be pirates!

Ken owns Ken DuVall & Associates, REALTORS at 3rd Ave. & Mangrove in Chico. Ken was the 2001 President of the Chico Assn. of Realtors and the 1995 Chico Realtor of the Year. See Chico MLS listings at www.KenDuVall.com and call Ken at 345-3700 for all your real estate needs. Free consulting.

Copy for Real Estate Guide Column for 4-10-09

REAL ESTATE PATTERNS
By Ken DuVall

RICH & FAMOUS REVISITED

The stuff of dreams. Candy Spelling, 63, widow of TV mogul Aaron Spelling, last week listed “The Manor”, near Beverly Hills off Sunset Blvd., for a jaw-dropping $150 million It’s by far the most expensive home for sale in the U.S. Spelling, who died in 2006, produced such blockbusters as “Charlie’s Angels”, “Dynasty”, and “Beverly Hills 90210”. Candy has since bought a $47 million 2-story 16,500 SF condo penthouse in Century City. Just like a lot of people today, she’s cutting back. It’s part of the “War on Prosperity”!

The French chateau mansion has 56,500 SF situated on 4.6 acres. It’s the largest home in L.A. County. Neighbors include the prestigious L.A Country Club golf course, and Hugh Hefner’s Playboy Mansion. We’re talkin’ a MAJOR high rent district, folks! “Everything here is glamorous and luxurious. There is really nothing to compare”, says the Coldwell Banker listing agent.

Candy decided to let her terrier dog “Madison” help choose who would get the listing! She had her security people bring him into the room while she interviewed prospective Realtors. If Madison didn’t take to them, they didn’t get the deal! The 3-story mansion, built in 1991, is gated, and not even Candy knows how many rooms there are, estimated at over 100. She says, “I actually haven’t gone around and counted them.” Can you imagine NOT knowing how many rooms there are in YOUR house?!

There’s no shortage of them, including a gym, bowling alley, wine cellar with tasting room, a gift-wrapping room (how could you possibly live without one of those?!), a humidity-controlled silver storage room, china storage room, library, gym, media room, and a huge movie screening room. It features a movie projection system that comes up from the floor at the same time that shades cover the windows.

Candy says, “We had some really wonderful times entertaining there. I wanted Aaron to have the biggest and best projection room anyone had ever seen. We had to excavate a lot of dirt to get down that low for the special room that housed the screen and was totally dust free.”

The 17,000 SF finished attic has a barber shop and beauty salon. Of course, there’s a separate servant’s wing with kitchen, 7 bedrooms, 5 fireplaces and 4 wet bars. If things don’t get better soon in real estate, maybe I could get a job there!

Lavish features outside the house include a tennis court, fountains, pool and spa, pool house with kitchen, a reflection pool, and 16 car ports. There’s also an 18th century-style garden, a rooftop rose garden, and a citrus orchard. The winding motor court will accommodate over 100 cars for when you host those really big parties.

You’ll have to pardon me now while I go count the rooms in my house to make sure I know how many there are! There’ll be quiz on this topic for all of you later and the prizes will be fantastic! Unlike John McCain, at least I know how many houses I own! It’s a no-brainer: one.

Ken owns Ken DuVall & Associates, REALTORS at 3rd Ave. & Mangrove in Chico. Ken was the 2001 President of the Chico Assn. of Realtors and the 1995 Chico Realtor of the Year. See Chico MLS listings at www.KenDuVall.com and call Ken at 345-3700 for all your real estate needs. Free consulting.