Ladera Ranch Real Estate

The nation's population grew by 1.0 percent (2.9 million people) between July 1, 2003, and July 1, 2004, to 293.7 million, according to estimates released today by the U.S. Census Bureau. With a growth rate of 4.1 percent, Nevada ranked first among states for the 18th consecutive year.

Four nearby states joined Nevada on the list of the nation's 10 fastest-growing: Arizona (second), Idaho (fourth), Utah (seventh) and New Mexico (10th). The remaining top 10 fastest-growing states are all coastal: Florida (third), Georgia (fifth), Texas (sixth), Delaware (eighth) and North Carolina (ninth).

North Carolina and New Mexico replaced California and Hawaii on the list of the top 10 fastest-growing states this year.

Of the 10 fastest-growing states from 2003 to 2004, five are in the West and five in the South. The South now accounts for 36 percent of the nation's total population, with the West comprising 23 percent, the Midwest 22 percent and the Northeast 19 percent.

California remained the most populous state in the nation with 35.9 million people in 2004. The second and third most populous states were Texas (22.5 million) and New York (19.2 million).

Other highlights:

• The nation's 10 most populous states accounted for 54 percent of the nation's population on July 1, 2004.
• The 10 fastest-growing states accounted for 49 percent of the national growth from 2003 to 2004.
• Of the 10 most populous states in 2004, three (New York, Pennsylvania, New Jersey) are in the Northeast, three (Illinois, Ohio, Michigan) in the Midwest, three (Texas, Florida, Georgia) in the South and one (California) in the West.
• While the South had the largest numerical increase in population among regions from 2003 to 2004 (1.5 million), the West recorded the fastest rate of growth (1.5 percent).

The population estimate for Puerto Rico for July 1, 2004, was 3.9 million, up about 17,000 since July 1, 2003. Puerto Rico's rate of increase was 0.4 percent.

California's Housing Affordability Index at 19 percent in October; down six points from year ago

The percentage of households in California able to afford a median-priced home stood at 19 percent in October, a 6 percentage-point decrease compared with the same period a year ago when the Index was at 25 percent, according to a report released today by the California Association of REALTORS® (C.A.R.). The October Housing Affordability Index (HAI) was unchanged from September, when it also stood at 19 percent.

C.A.R.’s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The index is the most fundamental measure of housing well-being in the state.

The minimum household income needed to purchase a median-priced home at $460,370 in Californiain October was $106,680, based on an average effective mortgage interest rate of 5.70 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $88,860 in October 2003, when the median price of a home was $379,120 and the prevailing interest rate was 5.83 percent.

The minimum household income needed to purchase a median-priced home at $187,000 in the U.S. in October 2004 was $43,330.

At 42 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Central Valley region at 26 percent. The Santa Barbara region was the least affordable in the state at 9 percent, followed by the Monterey region at 11 percent.

C.A.R.'s November 2004 sales and median price report for the state and regions within the state will be released on Dec. 22.

Stronger than expected home sales and higher median prices have caused the National Association of Realtors® to revise upward its year-end forecast. Existing-home sales are expected to jump 7.9 percent to 6.58 million* in 2004, well above last year's record. For 2005, NAR projects 6.38 million sales, which would be the second highest level on record.

The national median existing-home price is projected to rise 7.9 percent to $182,500 for the year. The median new-home price should increase 8.9 percent to $214,600.

New-home sales will rise 8.9 percent to 1.18 million this year and 1.13 million are forecast for 2005, just shy of the record expected this year. Housing starts are seen at 1.95 million this year, the highest level since 1978; housing construction is projected at 1.87 million units in 2005.

David Lereah, NAR's chief economist, said that some of the backup in housing demand is being met. "We're setting our fourth consecutive record year for existing-home sales, and even with strong fundamentals such as household growth, low interest rates and an improving economy, we simply can't set records every year," Lereah said. "Given the sharp rise over last year's record, a lot of buyers have found the home they've been looking for and we can expect a bit of a breather in 2005, which will remain a historically strong year."Lereah predicts the 30-year fixed-rate mortgage should rise slowly but average only 6.4 percent next year.

In 2005, Lereah expects the median existing-home price to rise 5.0 percent and the typical new home price to grow by 5.8 percent. "The slowing rate of price growth will be good news for first-time buyers, but since inflation is expected to remain modest, home prices will still be rising a little faster than the historic norm of 1-to-2 percentage points above the rate of inflation," Lereah said.

NAR forecasts tame inflation with the Consumer Price Index rising 2.7 percent this year and 2.1 percent in 2005. The U.S. gross domestic product should grow by 4.4 percent for all of 2004 and another 4.0 percent next year. The unemployment rate is projected to decline to 5.1 percent by the second half of next year.

Inflation-adjusted disposable personal income is forecast to increase 3.1 percent this year and 3.9 percent in 2005, while the consumer confidence index should rise to 105 in 2005.More detailed information about NAR's economic outlook, as well as other analysis of real estate industry statistics, can be found in the December issue of NAR's Real Estate Outlook: Market Trends and Insights. The publication may be purchased by calling 800/874-6500.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Binding arbitration, a little noticed clause in many agreements and contracts, strips consumers of their fundamental rights, including the right to sue individually or join a class-action suit if they have a problem with a company.

Under binding arbitration, a consumer can be forced to pay thousands of dollars upfront to pursue a complaint, travel thousands of miles to a location of the company's choosing for the hearing, argue their case before an arbitrator who depends on the company for future business and surrender such basic legal weapons as the right to discovery and the right to appeal a decision.

In some cases, the clause allows the company to sue the consumer while denying the consumer the right to sue the company.

Housing wealth has a more immediate impact on consumer spending than stock wealth and has sustained the U.S. economy since the beginning of this decade, shows a new study produced by the Joint Center for Housing Studies of Harvard University and Macroeconomic Advisers, LCC, and commissioned by the National Association of Realtors®.

David Lereah, NAR's chief economist, said the study shows a large difference between the impact of housing wealth and stock wealth on consumer spending, particularly during the last economic downturn. "Aggressive cuts in short term interest rates at the beginning of the decade forestalled economic problems and led to record home sales and home equity borrowing," Lereah said. "Without the stimulus, housing's contribution to consumer spending would have been about half as great, the recession much worse and the recovery less robust."

A major finding in the study is that over time, consumers spend about five-and-a-half cents out of every dollar increase in both housing wealth and stock wealth. However, spending from housing wealth only takes about a year to reach 80 percent of its long-run effect, compared with nearly five years for stock wealth to have the same effect – likely because near-term gains in stock wealth could prove to be unsustainable.

"In other words, housing produces a quicker lift to the economy while home-price growth provides lasting benefits," Lereah said. "Homeowners are more confident of gains in housing wealth, so they spend more readily and quickly when they occur."

"Housing Wealth Effects," sponsored by NAR's National Center for Real Estate Research, reviewed a number of existing studies and developed new models to compare wealth effects. The study shows that expansionary monetary policy can provide a rapid and substantial lift to consumer spending under the right circumstances. While some investors pulled out of the stock market when values began to fall in 2000, a near 45-year low in interest rates allowed housing to help the economy through a soft spot.

Regarding speculation about the prospects of a housing price bubble, Lereah said that debt service costs are largely ignored and not well-understood. "In simple terms, over the last year monthly mortgage payments to buy a median-priced home would have taken about 18 percent of the typical family's income. In the early 1980s these costs exceeded 30 percent of family income, so we now have a fair amount of headroom," he said. "The fundamentals of a growing population, tight supply of homes available for sale and rising construction costs will support home prices moving forward."

Home price changes are far less volatile than stock values, but individual returns depend on market conditions in local areas. Between 1983 and 2003, the average deviation in annual value from national price trends in the top 100 metropolitan areas was only 4.7 percent. By contrast, stock values can rise and fall rapidly – even over the course of a single day. During the period of 2001 to 2003, housing contributed more than one-quarter to consumer spending in each of those years. About half of that boost was attributable to gains in housing wealth through equity withdrawals and realized capital gains, confirming that housing propped up the economy.
In the fourth quarter of 2003, home equity accounted for 19 percent of household wealth, slightly higher than the combination of stocks and mutual funds. However, homeownership is more widespread than ownership of stock and contributes more to the balance sheet of the typical household. Home equity exceeded the value of stock owned directly by households by $2.6 trillion.

Other findings include: About 6 in 10 homeowners have more home equity than stock wealth. Total housing consumption, operations, related goods and investment came to about 23.1 percent of Gross Domestic Product in 2003. Over the last 50 years, housing has hovered between one-fifth and one-quarter of GDP.

Housing wealth accounts for 36 percent of the nation's tangible assets. The U.S. Federal Reserve Board estimated the value of housing stock at $15.2 trillion in the fourth quarter of 2003. Late last year, the homeownership rate was 68 percent, but only 52 percent of households held stock – either directly or indirectly.

In 2001, the Federal Reserve Board's Survey of Consumer Finances showed that the top 1 percent of stockholders controlled 33.5 percent of stock, while the top 1 percent of homeowners controlled 13 percent of home equity.

Lereah said homeownership has a larger effect than stocks on the typical household's finances. "The broader distribution of homeownership means that changes in stock wealth affect a much smaller share of households and mostly affects those with larger disposable incomes," he said. In addition, homeowners accumulate significantly more wealth than renters. Analysis shows a renter in 1984 would have accumulated $42,000 in net wealth by 1999. However, a typical owner household in 1984 would have accumulated $167,000 in the same timeframe. "Most of the differences between renter wealth and ownership wealth reflect the contribution that a leveraged investment in a home provides through appreciation in value, which has been exceptionally strong over the last three years," Lereah said. "Homeownership is unique in that it provides shelter in addition to being an investment that yields a financial return as values rise."

Housing is an attractive investment because it directly builds wealth through both home price appreciation and forced savings in the form of mortgage payments that reduce principal. "It is also appealing because it allows owners to tap into that wealth at favorable interest rates to finance other forms of investment and consumption," Lereah said.

Owners have the option of taking out a home equity loan or line of credit, or taking cash out while refinancing. In addition, when buying another property, they can keep some of the equity from their existing home and use only a portion as a downpayment on another. The findings in this study suggest that expansion of monetary policy – a lowering of interest rates – at the onset of weakness after an economic expansion can give the economy a significant lift. Conversely, a tightening could slow home sales and reduce equity borrowing, which could quickly act as a drag on consumer spending and slow the economy.

"Accommodative monetary policy through lower interest rates during periods of economic weakness can make the difference between a steep recession and a soft landing," Lereah said.

I've done it, and I'm sure Realtors experience it all the time: When a potential buyer says "There's no need to get out" when you drive up to a property that you intended to show them.

The buyer has already made up their mind based upon the curb appeal of the home.
There are two main goals to maximizing a home's curb appeal:

1. Remove or reduce the quantity of "red flags" in view from the curb. 2. Create the most enjoyable trip from the curb to the front door as possible.

Here are some ideas to consider:

1. A Visible Address is a Must
Make sure the address is clearly visible from the street. Preferably, the numbers should be in a horizontal line versus vertically, or on a diagonal line and be lit at night - at least while the home is listed.

2. Maximize the Front Door Appeal
The front door equals the mouth of that home's body. Energy must be able to find it easily and then enter. The trip from the street to the threshold should be easy to navigate; ie: no "trips" in sidewalk, no thorns grabbing you along the way, no cob webs to go through, no dead plants in pots along the way.

The actual front door should be clean and fresh. If there is a screen door, it must be in tip-top shape and dust-free. If the door is in shadow because of solar orientation, keep the porch light on. Add color and fresh items such as foliage to attract energy towards the door.
If the door is not visible from the street, hang a metal chime somewhere near the door on the non-hinged side of the door. The actual door should be able to open fully, and not stick or squeak. A welcome mat is always welcomed here. If there is a doorbell - it must work. If there is no doorbell, consider adding a knocker to the door.

3. Make the Plants Work for You
Nothing says "creepy" like ill-maintained plants. Their weak and droopy energy tells the story of how life will be if you buy this home! Plants should be clean, and their droppings picked up.
Plants can be up against the walls and foundation, but not "touching them." Trees touching the eaves and roof, and vines clinging to the walls takes away health energy from those living within the home. There should be no white flowers touching the building - long story - it's just a traditional feng shui thing. Happy, healthy, and colorful and well maintained plants say "someone cares," and "this home is capable of taking care of you."

If there are sick, weak, or poorly trimmed plants (I'm thinking of trees that have been "topped" and look like a big trunk with a few sprigs growing out of the top) they are distractions to buyers as well as weak energy and should be removed. In this case, less is definitely more.
If there is a tree, shrub, boulder or any other landscape item directly in line with the front door (say, within at least 50 feet or so,) it's best to have it removed. This subconsciously creates blocks with the home, as if it is hiding from the very people who want to buy it! It also makes the home struggle to hold health energy for those who live there. A gate is the exception here.

4. Have a Clearly Defined Edge Between Lawn and Planting Beds.
Grass growing into the planting beds not only create a maintenance problem, but it also shows up as lack of boundaries in life. Clearly define planting beds with mow strips (any material is fine) and you will help buyers subconsciously understand this home's front yard. They will subconsciously "feel safe."

5. Use Color to Your Advantage
Color can be an easy way to add energy to a home's curb appeal. Red attracts - use it when the door is out of view or the home seems "lost," or people have a hard time finding the home. Yellow evokes friendly and clear communication, green is simply the color of life, and blues are more introverted and quiet - perhaps what a home on a busy street needs. Orange is subjective, but can create boundaries and a healthy appetite! I would not usually recommend a lot of white.

6. Balance Offensive Neighboring Buildings and Landscape Issues
If there is a church, cemetery, funeral home, school, commercial building within the visual "neighborhood" of the home, try adding landscape screening to block these views. You may want to hide a mirror in the landscape facing the negative item in question with the intention of deflecting its energy away from your home. (No one has to see your secret cures to make them work!)

If the offensive building (or even a tree, or "T" of the street) is directly in line with your front door, hang a mirror above the door facing the item with the intention of pushing it away if you can't do anything about it (like removing the tree.)

If you have significantly taller buildings next to your home and your home is "in its shadow," apply a mirror on that side of the house and face it towards the taller building with the same "pushing away" intentions.

7. Clear the Clutter
Clutter is one of the more obvious "red flags" and should be removed immediately. Extra cars, pots full of dead plants, the kids bikes, garden tools, old holiday decorations (get the lights down!) all need to go. The trash cans should not be visible from the street. Basically, any "personal affects" other than a fresh plant-filled pot or a working water fountain should go.

8. Check Lighting Levels Both Day and Night
Landscape, security, and aesthetic lighting should be in good working order to put the home "in it's best light" for a potential buyer. If the home sits lower than the street, consider placing an uplight on each corner of the home, with the light pointing up at the eave. Keep this light on at all times (at least while the home is for sale.)

9. Attend to General Maintenance Issues
Peeling paint, dead spots in the yard, broken pickets in the fence, etc. will not give you that warm and fuzzy feeling as a buyer! Dripping hose bibs and broken irrigation heads won't either. The front facade and front yard MUST appear in good working order.

Also, take the five senses into consideration: If you can smell a compost pile - it has to go. If you can hear the train next door - cure it or any other offensive noise by hanging a chime between the house and the noise.

If You Have the Chance To Design the Front Yard From Scratch, Consider Shape and Element-balancing Characteristics of Walkways, Planting, and Other Front Yard Amenities

1. Consider free-form and undulating shapes (like sidewalks) and water element items in the front yard.
2. Make a "transition space" (like a porch) between the walk and the threshold to "slow down" the chi before entering the home.
3. Use color to your draw attention towards your door.
4. The sidewalk should connect the street and the door - not just the driveway and the door.
5. Create strong mow strips shape and lines within the landscape.
6. Appeal to all five senses.
7. New sod goes a long way to make the home look fresh.
8. A moving object like a flag, whirligig, chime, water fountain in the front yard can attract new buyers!