Tracy’s LA Real Estate

Coming Attractions From the Arroyo Arts Collective

There is so much to do around here! Luckily, many of these shows run for a few weeks, but if you want to attend the openings, you’ll have to pack most of them into Saturday, March 13!
GERARDO HACER: THE MYTH
PE Lofts Gallery, 610 S. Main St. LA 90017
Reception: Thursday, March 11, 2010 from 12:00 noon to 10:00 PM
Presented by The Avenue 50 Studio, with the support of Los Angeles Trade-Tech College (LATTC) at the Downtown Art Walk in the PE Lofts Gallery (corner of 6th and Main Street).
The work of Los Angeles–based sculptor, Gerardo Hacer, consists of monumental structural, metal, origami animals in bold, flat, solid colors. The centerpiece of the show, Gerardo Hacer: The Myth, is a 2-ton fourteen-foot Pegasus entitled, “Education Gives You Wings To Fly” that will be permanently installed at the gateway of the main entrance to Los Angeles Trade-Tech College’s new $250M campus. A former graduate, Gerardo was selected as the face of their multimedia campaign, “Trade As Art”. His works have received coverage from SoCal News, Huell Howser’s “California Gold”, as well as, featured on public transit DASH buses. Contact: Ashley Lund – 310-405-5285

ART AND ARCHITECTURE: MERGING THE CONTEMPORARY AND THE HISTORICAL
Center for the Arts, Eagle Rock, 2225 Colorado Blvd., Los Angeles 90041
323.226.1617, www.centerartseaglerock.org
Panel Discussion: March 13, 2010, 4-6 pm
Panelists: Gwynne Pugh (Pugh + Scarpa), Isotta Poggi (Getty Research Institute), John O’Brien, Cielo Pessione
Bruno Bondanelli will be making a brief presentation on behalf of Italian Living Umbria at the end of the round table conversation and offering Baci Perugina for all.
FOLLOWED by NELAart Second Saturday Gallery Night 7-10 pm
The March 13, 2010 panel discussion about “Art and Architecture: Merging the contemporary and the historical” is particularly relevant at CFAER, a historically listed 1914 Carnegie Library Building, that was itself transformed into a multicultural community center for arts and culture.

ASSEMBLAGE & COLLAGE
Howeeduzzit Gallery, 821 S. Raymond #27, Alhambra 91803
626.458.8811, www.howeeduzzitgallery.com
February 21st – March 13th, 2010
Closing Reception March 13th, 2:00-5:00 PM
Featured artists: Kathy Carvalles, Ruth DeNicola, Charles Dickson, Jack Fenn, Clare Graham, Frank Gutierrez, Cookie Hanson, Cidne Hart, Heather Hoggan, Jeffrey Kibbe, Dave Lovejoy, Mavis Leahy, Jaime Sabatte, Richard Sculley, Suzanne Siegel, Joseph Sims, Richard Turner, Howard Swerdloff, LaMonte Westmoreland

THE VIRGIN MARY CHAINSMOKING AT THE BEACH AND A COUPLE OTHER REALLY AWFUL THINGS I SAW WHEN I DITCHED SCHOOL THAT DAY
Future Studio Gallery, 5558 N. Figueroa St., LA 90042
futurestudiogallery.com
Opening Saturday March 13, 7 to 10 pm, part of NELAart.com Second Saturday Gallery Night
Tatiana Luboviski-Acosta: Drawings, Piñatas, Videos, Prints, Collages, and Photographs
(Don’t forget to pick up your free Tati artist trading card at the gallery during the opening)
March’s Chicken Boy Trading Card #6, also available Second Saturday. (It’s CB, a guy’s guy, repairing his cycle)
CUENTOS DE HADAS
Avenue 50 Studio, 131 North Avenue 50, Highland Park 90042
323.258.1435, www.avenue50studio.com
Mercedes Gertz and Esau Andrade reinterpret fairy tales with photographs by Elizabeth Beristain
Opening Night Reception: Saturday, March 13, 2010 from 7-10 pm
The Avenue 50 Studio is proud to present “Cuentos de Hadas” (Fairy Tales), an exhibition of works by two contemporary Mexican artists. Through a narrative language, Gertz and Andrade portray the female vs. male versions of fairy tales. The exhibit opens with an artists’ reception on Saturday evening, March 13, 2010 from 7 to 10 p.m. and closes on Sunday, April 4, 2010.
Mercedes Gertz. Using humor and sensuality, Gertz’s fairy tale series asks us to consider where women are in the 21st century. Her heroines are unapologetic symbols of female confidence. We sense in them a comfort with the body, with play and decoration. They confidently own the sensual, and relish in being a woman in charge. “These … fairy or folk tales … recur over and over through millennia in the guise of innocent stories telling us time and again that the docile, young body gets the prince, that the girl brave enough to venture into the woods—the space of men–meets her fate at the hands of the big bad wolf. Peter Pan lives forever as a boy, Wendy must grow up–it is her calling, her duty, her essential nature.” — Marlena Doktorczyk-Donohue, Art Critic, Essayist, Poet
Esau Andrade. Following in the footsteps of the Latin American surrealists, Esau Andrade twists reality, creating canvases bursting with color that are pop in nature. He instills a childlike exuberance into his delightful paintings. Andrade comes from a folk art background, as both his mother Guadalupe Valencia and brother Raymundo Andrade are also artists. He is mainly a self-taught painter, although attended La Escuela de Artes Plasticas de la Universidad de Guadalajara. “Unlike the candy colored confections of his more stylized folk art paintings, these other works by Andrade place him firmly in the surrealist tradition shared by many Latin masters. He retains a naiveté and originality with quirky images that are both charming and serious, and also remain indebted to his rich culture for visual symbols that are vivid and intense.” — Kathy Zimmerer, Artscene 11/2004
Elizabeth Beristain. Elizabeth was born in Mexico City. A graduate of the Escuela Activa de Fotografia and staff photographer for “El Reforma,” one of the top national daily newspapers in Mexico, she moved to Los Angeles as a freelance photographer and later became Photography Editor for the cultural publication Latino Weekly Review. A product of her Mexican mother’s artistic sensitivity and her Portuguese father’s decidedly more adventurous side, this subtle mixture of Old and the New World influences are germinal elements of Elizabeth’s artistry. Additionally, in devising the art direction of her own work, a wider range of crucial creative features shine through, from the world of opera, painting, music, and cinema, in a vision where a unique sense of artistry never intrudes with a boundless appreciation of our common humanity. Elizabeth has participated in various collective and solo shows, both in Mexico and Los Angeles, where she lives with her husband, cinematographer Gabriel Beristain ASC, BSC, and their two children Max and Victoria. She is currently at work on her new series, entitled Crowned Nuns.

And the Annex Presents:
A PRAYER FOR JUAREZ, A CURSE ON THE KILLERS
March 13 through April 4, 2010
Opening Night Reception: Saturday, March 13, 2010 from 7-10 pm
Alfonso Aceves, Ismael de Anda, Antonio Escalante, Judithe Hernandez, Cindy Suriyani, vincentmayakovsky

DECKED OUT – ART ON RECYCLED SKATE DECKS
Cactus Gallery, 4534 Eagle Rock Blvd. Eagle Rock 90041
323-256-6117, http://www.eclecticcactus.com
w/ Featured Artist Michael Pukac plus group show
March 13th – April 7th 2010, Gallery Hours: Weds-Sun 12-6pm
Opening Saturday, March 13, 2010 – 7-10pm
Group Show Artists: Amanda Sage, Motion One, Hans Haveron, L. Croskey, John Park, Spectr, Tommii Lim, Stix and Jones, Yuki Miyazaki, Nick Wildermuth, Ted Von Heiland, Anna Chung, Shahid Brown, Patrick Haemmerlein, Max Neutra, Jacob E. Roanhaus, Jose Carabes, Elle Seven, Liz Brizzi, Jonathan Bueno, Kelly Thompson, Carlos Ramsey, Dicapria, Mikolaj Wyszynski, Walt Hall, Art Martinez, Douglas Alvarez, Julie B., Delphia, Mike Russek, Amy Bernays, Krystle Smith, Alfie Numeric, and more.
Beats by Mr. Numberwonderful
Curated by The Imaginary Light Bulb Factory
10% of proceeds will go to Greenizm: a 501.3c rehabilitating neglected urban landscape into green skate parks in LA County while promoting the arts to skate culture.
More info: ArtSlant Event Page – http://www.artslant.com/la/events/show/92985-decked-out,
Facebook Event Page – http://www.facebook.com/#!/event.php?eid=301594547342&ref=ts

MICK & FRIENDS: A COLLECTION OF ROCK & ROLL PHOTOGRAPHY
drkrm/gallery, 2121 San Fernando Road Suite 3, Los Angele 90065
323.223.6867, drkrmgallery@gmail.com
March 13th- April 3rd, 2010, Tue-Sat 11-5 Sun 1-4
Opening Reception Saturday March 13th 7-10pm
drkrm/gallery announces it first show of 2010, a group show retrospective of fine art Rock & Roll photographs. Featuring Ethan Russell’s 1968 portrait of John and Yoko, Cecil Beaton’s portraits of Mick Jagger on the set of the film Performance and Travis Shinn’s recent photographs of Morrissey and Marilyn Manson. The Exhibition will run though April 3rd. There will be an opening reception Saturday March 12 from 7-10 pm with several of the artists in attendance.
Also featured are images of Bob Marley from the 1980’s by Neville Garrick, Paul Zone’s photos of KISS playing a small Queens NY club in 1973 and a 1969 Grateful Dead concert in San Francisco photographed by Ryan Herz plus many more.
The Land of Odd Gallery, 4690 Eagle Rock Blvd. Los Angeles 90041
March 13, 2010 – March 27, 2010
Opening Reception: March 13, 2010 from 6pm to 12am
Come to The Land of Odd Gallery’s 5×7″ Group Show, opening on the evening of March 13, 2010 from 6pm to 12am. We will also be continuing our $100 and Under Art Show so if you missed getting to see it, now is your chance to come by and check it out. This event will be held in conjunction with the NELA 2nd Saturday art walk. As always refreshments will be served and the event is FREE!
We are proud to have the following artists participating in the 5×7″ show: Chito Arellano, Christie Bastet, Jeff Bertrand, Julie Bossinger, Deryke Cardenaz, Jennifer Cuellar, Brad Davis, Jolly de Guzman, Diane Harrelson, Chuck Hodi, Edith Ben Horin, Jinx, Bruce Kaplan, Patrick Quinn, Pablo Ramos, Monica Roache, Annalise Sullivan, Jason Sullivan, Melissa Sullivan, and Christopher Umana. Most of these works have been created especially for this event and have never been exhibited before, so come by and show your support.
We will also be continuing our $100 and Under Art Show, featuring the artwork of; Douglas Alvarez, Christie Bastet, Edith Ben-Horin, Charles Bennett, Terri Berman, Jeff Bertrand, Deborah Blanco-Flores, Chris Bonno, Heidi K. Born, Deryke Cardenaz, Bryan Collins, Emma Cooper, Josh Cooper, Creep Creepersin, David Daniel, Brett Gilbert, Jolly de Guzman, Brad Davis, William Reynolds Green, Joe B. Hall, Benjamin Harmon, Santiago Heredia, Nicholas Hernandez, John Hicks, Chuck Hodi, K. Howell, Chris Isner, Jinx, Bruce Kaplan, Amelia Lewis, Cynthia Llanes, Vivian Nguyen, Sean Madden, Demi Pietchell, Patrick Quinn, Pablo Ramos, Monica Roache, Glenda Rolle, Lisa Rosso, Therese Solone, Evil Paul Springer, Melissa Sullivan, Jason Sullivan, and Ckay Walker.
Mention the phrase — “The greatest FREE print on Earth” — and you may choose a FREE 5×7″ linoleum print. You might want to mention it to someone who works at the gallery. Otherwise people will just think you are weird.

MOSTLY SCULPTURE SHOW
Sea and Space Explorations, 4744 York Boulevard, Los Angeles 90042
March 13-28, 2010, Gallery Hours Friday/Saturday 1-6 pm, Sunday 1-5 pm
Opening Saturday March 13, 7-10 pm
This is a show of work that centers on material exploration. The six artists’ works are unified by their emphasis on process and innovation. Each artist engages in a pas-de-deux with specific materials in a poetry of making. In the tradition of Schwitters, Tuttle, Franz West, Kippenberger, and Genzkin, this work is strongly formal and has to do with specific methods of making. Encompassing materials from draped fabric to dyed carrara marble to sheetrock to newspaper to fireproof canvas to human stand-ins and fake flowers, the show is made up of work that is sculptural and mostly sculpture.
Artists: Kathryn Andrews, Alice Clements, Heather Cook, Patrick Hill, Alice Konitz, Brett Lund

MIRROR TO A WORLD
José Vera Fine Art & Antiques, 2012 Colorado Blvd., Los Angeles 90041
323.258.5050, www.joseveragallery.com
Gallery Hours: Wed.-Sun. 11am-6pm
Opening Reception on Saturday, March 13th, from 6 – 9
José Vera Fine Art & Antiques invites you to join us for our upcoming exhibit, featuring the work of Irene Carranza in her solo show “Mirror To A World”. We are pleased to showcase her work from March 3 – April 11, 2010, with an Opening Reception on Saturday, March 13th, from 6 – 9 pm, in conjunction with the NELA ArtWalk. Please join us for wine, appetizers and a meet-and-greet with the artist herself.
Artist Statement: On the surface, Carranza’s work is about women; that is the subject matter. At a deeper level, however, the works are about issues that women face, and they pay tribute to the resilient female spirit. Some of the images explore challenges of identity that we confront as women as we attempt to reconcile modern life with traditional Latino culture. Thus the art can be viewed as affirmations of strength and celebrations of a complex yet incredibly diverse presence as female human beings. She also explores themes of beauty, nature, solitude, death and rebirth. Feminism is expressed in many forms-virgins, mothers, mermaids, maidens, field workers, musicians and prostitutes, reflecting on the tender aspects of mankind. Carranza prefers to work with organic and richly layered oil pastels, using mineral spirits to blend, achieving painterly results. She also works with acrylic and oil paints, and occasionally some printmaking, such as aquatints, etchings and collographs. The artist’s recent explorations of color are done with acrylic paintings on black-gessoed surfaces of canvas and wood, and oil pastels and oil bars on black museum board. She considers these pieces as transformations of darkness into light, or darkness and lightvying with one another. This fascination may come from early childhood memories of the Mexican paintings on black velvet she saw everywhere during visits across the border. It may also stem from her immersion in Catholicism growing up in religious schools and a deeply religious home, where the concepts of good vs. evil and light coming out of darkness were pervasive.

HOW OLD DO YOU HAVE TO BE TO BE AN ARTIST?
The Judson Studios Gallery, 200 So. Avenue 66, Los Angeles 90042
Saturday,March 13th , 6:00PM~9:00PM
Students of ROOM 13, an international network of student-operated art studios will show work at The Judson Studios Gallery as part of NELA Art Night. Three ROOM 13 studios, including James Foshay Learning Center in South Los Angeles, Eliot Middle School in Altadena, and Marjorie Street in South Bay, will showcase paintings, drawings, sculptures, mixed media, assemblage, muralart and animation at this collaborative art installation. The Judson Studios, an internationally known stained glass maker run by five generations of family members, was also the first home to the USC School of Fine Arts until 1920.
Room13 originated in Caol, Scotland in1994 and has grown into an international network of student-designed and operated creative studios. It now provides learning and business enterprise skills to students in Scotland, Britain, Nepal, India and South Africa, and is currently expanding to Mexico, Turkey, China and Austria. The director of theTate Galleries has called Room 13 “the most important model for artistic teaching in school that we have in the UK.”
In 2008, Light Bringer Project, a nonprofit arts provider, engaged with the program’s international trustees and decided to take advantage of this opportunity for our own public school children. Partnering with Project Design Studio, the organization launched the first ROOM 13 in America at James Foshay Learning Center in South Los Angeles. They proceeded to found ROOM 13 at Eliot Middle School in Altadena. The third, an dmost recent model, ROOM 13 at Marjorie Street, was formed early this year in the South Bay vicinity. Like its peers, each creative studio operates as a physical space flourishing within a public school or community setting and is solely managed by the students.ROOM 13 is dedicated to provingthe worth of the individual with with the support and mentorship of schoolstaff and community members. Facilitated by an artist-in-residence, also from the community, students work in teams, as partners or alone, determining the scope and content of their own creative projects. ROOM 13 artists also learn self-reliance by designing a business model that will sustain their own studio operation. TBWAChiatDay advertising has also provided support of the ROOM 13 network through the contributed help of its creative professionals.
Proceeds from the sale of artworks will benefit ROOM 13 studios.

Today we have 27 single-family homes, 1 condo, and 5 income properties on the market in the 90041 zip code, ranging in price from $249,500 to $1,395,000. Since January 1, we have had 26 SFR, 0 condo, and 4 income properties either go into or close escrow ranging in price from $339,000 to $699,000.
In Highland Park and the 90042 zip code we have 54 active single-family home, 35 condo and 31 income property listings ranging from $129,999 to $1,590,000. Since January 1, we have had 54 SFR, 9 condo and 8 income properties either go into or close escrow, ranging from $145,000 to $599,000.
These numbers indicate an active market where, in general, almost as many properties are selling as fast as there are properties coming onto the market. According to TrendGraphics from Itech Multiple Listing Service, the prices in Eagle Rock have trended up a bit over the last year and in Highland Park they have continued to decline. In my opinion, this is because there were more distress (foreclosure and short) sales in Highland Park than in Eagle Rock. If you look at individual sales, you will see that for good homes in good neighborhoods, there were many cases of multiple offers and houses that sold for over-asking in both communities.

Notice on the tables below the percentage of list price/sales price. In Eagle Rock the median sales price was a little higher than the list, in Highland Park it was right at or below the list price. This supports the old saying, when it’s priced right, it sells. Also notice how the number of homes for sale on the market has dropped dramatically in both zip codes. Supply and demand is at work here.
What does this mean? First time buyers in the under $450,000 range have a very short window of opportunity to get into the market. It is very difficult to get into Eagle Rock in that price range and much easier to buy in Highland Park. With the first-time and long-time buyer credit deadline of April 30, this is a great time to put your home on the market—if you can accept what the market brings you. No, we are not back to 2007 prices. Will we ever be? Eventually, probably, but who knows how many years it might be. In general, at the current rate of increase, it will be quite a few years. Individual homes will vary.

If you need to sell your house in the next few months, that is, you are financially in a situation where you are afraid you might not be able to make your mortgage payments soon, don’t wait any longer before talking to professionals about your options. That means talk to your lender, your family, find out the truth about your situation. If you are wondering whether the best thing is for you to sell the house, please give me a call. I’m happy to meet with you, direct you to the appropriate professional to help, or at least to help you explore your options.
Eagle Rock:

Highland Park:

Have you heard about the 3/50 Project? It started in 2009 when a woman in Minneapolis wrote a blog post asking people to think of three “mom and pop” businesses they didn’t want to see disappear, then to commit $50 of their monthly spending to those or others like them. She called her idea the 3/50 Project, and you can find out more about it at www.the350project.net. You can also become a fan and a member in Facebook.

In honor of the shop local movement, I ventured out into Eagle Rock and assembled some places where you can shop for your Valentine gifts this year and keep your hard-earned money in our town!
I found a number of unique and inexpensive gifts made by local artists at Cactus Gallery. This independent gallery sells wonderful jewelry, paintings, crafts, and you will find something for everyone here.
There are several shops along Eagle Rock Blvd just below Colorado that have unique treasures that may have been gently used before: Twerp’s or Owl Talk for clothing. The Sniveling Sibling for furniture. Read Books for books. You can even go in there and sell them some books to help finance your shopping trip!

Solve your two left feet issues at Ballroom Blitz with some dance lessons. 

Toro’s Pottery has wonderful ceramics, practical or artistic and usually both. For something truly different, Bughouse has great prints and furniture with their particularly insightful and often humorous slant on the world. Around the corner a few blocks down on Colorado Blvd, Jose Vera Fine Art & Antiques offers exceptional and unusual ideas for art, furniture, design.

For a great Valentine’s bouquet, check out Eufloria, nestled between Trader Joe’s and Cacao Delicatessen.
You must go to Pollen and experience the romance of the senses there. Botanical chocolate, jade bracelets, scented soy candles, stunning floral arrangements, chocolate-scented orchids—I want it all!

Camille’s Lady is such a cool place for stylish gift items for the woman in your life. Check out the website or go to the store quickly before that fabulous one-of-a-kind item is sold!

How about a great gift basket from Heather’s Store? You can go in there or call her. She’ll put together a great gift for you. Hurry, I’m sure she’s busy! And stop in right next door at Daybreak Health Foods for some healthy snacks, vitamins or gifts as well.

We have so many great cafes and restaurants here you’ll have to look at my Restaurant Guide for the list. http://docs.google.com/Doc?docid=0ATgtVF9dWpLbZG13a3N4a18yMDdmY3JiaDRocQ&hl=en. If you have any trouble accessing the guide here, I’m posting an updated copy on my blog in the next day or so. I’m happy to email or snailmail you a copy, also. Just ask.

And then there is Colorado Wine Company for all your wine needs. Plus, they’ve teamed up with Auntie Em’s for a pick up your Valentine dinner with fabulous wine pairings. Wow. I’ll be working all Sunday and too tired to go out. I want this one for sure! Are you reading this, sweetheart? From their website:
Anyway, here’s how it works — read the menu, choose your dinner, call Auntie Em’s (323-660-0681) or email to reserve your food, then pick up your food @ Auntie Em’s on the 14th and swing by Colorado Wine Company for your wines. Dinner $28/person, menu and wine prices on the web at www.cowineco.com.

 As I wrote this article, more and more shop local ideas came to me. Highland Park has a growing and vibrant shopping scene along both York and Figueroa streets. How about an updated article on therapeutic massage providers? This is a huge subject as there are many really talented and gifted healing massage therapists in our area. Of course, in the interest of investigative reporting, I’ll have to visit them all so I can be sure everyone is of the quality I can vouch for…Your ideas are welcome, too!

All these shops are in Eagle Rock, Los Angeles, 90041.
Ballroom Blitz, 4878 Eagle Rock Blvd, 323-258-0029. www.ballroomblitz.org
Bughouse, 5046 Eagle Rock Blvd, 323-640-0234, www.bughouse.com
Cactus Gallery, 4534 Eagle Rock Blvd, 323-256-6117. www.eclecticcactus.com
Colorado Wine Company, 2114 Colorado Blvd, 323-478-1985. www.cowineco.com                                                                      
Daybreak Health Food, 1565 #a Colorado Blvd,323-258-3881.                                                                                                   Eufloria, 1576 Colorado Blvd, 323-257-5997.
Heather’s Store, 1565 B Colorado Blvd, 323-550-1625. www.heathersstore.com
Jose Vera Fine Art and Antiques, 2012 Colorado Blvd,323.258.5050. www.joseveragallery.com
Lady. 4974 Eagle Rock Blvd, 90041, 323-254-6500. www.ladyeaglerock.com
Owl Talk, 5060-B Eagle Rock Bl. Los Angeles 323-258-2465. www.owltalk.com
Pollen Botanical Design. 1583 Colorado Blvd. 323-550-1555. www.pollenstudio.com
Read Books, 4972 Eagle Rock Blvd, 323-259-9068. www.readbookseaglerock.com
The Sniveling Sibling, 5028 Eagle Rock Blvd.
Toro’s Pottery, 4962 Eagle Rock Blvd. 323-344-8330. www.torospottery.com
Twerp’s, 5060 Eagle Rock Blvd, 323-256-7608

It seems like I’m always saying that here at last is the straight story on the real estate market, but it’s always true! Last year, 2009, there were 121 sales in Eagle Rock, zip code 90041. Here’s the interesting part: 60% of the sales were “distress sales,” that is, either short sales or bank-owned properties. Now, in 2010, we had 9 sales in the first month and 55% of those were short sales or REOs (bank-owned). While the foreclosures were scattered out fairly evenly over the last year, I noticed that the short sales that actually closed escrow tended to happen later in the year, and in January, 5 of the 6 distress sales were short sales. This is in line with the government’s efforts to help people avoid foreclosure, modify their loans and then approve a short sale if the loan modification didn’t work out.
What you can’t tell from the Multiple Listing Service is that a lot of the “normal” sales were under duress as well. I know personally of several divorce sales and a few properties that had to be sold quickly before the owners were unable to make any more payments due to job losses or failed businesses.

In other words, very few people who didn’t have to sell did sell. But look at the graph and table for the year from 12/08 through 12/09: it’s obvious that we did reach a bottom in the first quarter.  I think the dip in November was not another bottom, just an example of my point about distress sales. Notice on the table how few properties were selling at the end of the year–because of holidays, because of perception of the market. If you take the dip in November out, the market was steadily higher than earlier in the year. And note that the year over year prices were up, which is much more meaningful than the dramatic 1-month changes around November.

What’s going to happen this year? My crystal ball is still on backorder, but so far this year I have talked to a lot of people who want to sell and many who want to buy. From the energy I’m feeling, I’d say the first quarter of the year should be very active. In most years past, the first quarter is sluggish with sellers talking a lot about going on the market in the spring, but not getting around to going on the market until May or June. Buyers want to take advantage of the federal tax credit programs with their April 30 deadlines, and more and more sellers are saying they are ready to sell even if they can’t make what they might have in 2007. This promises good things to come.

This is probably the most common question I am asked as we launch into an exciting new year in real estate. Everyone is happy to be done with 2009 and to look forward with hope to a much better year. The most common answer I hear from various experts is that, in general, don’t expect much different from last year. I think it’s better than that in our special corner of the LA area.

Here is my personal experience so far since the beginning of this year, a bit over 3 weeks.

I’ve taken two listings, one of which hasn’t come on the market yet. Sellers are seeing that the prices aren’t necessarily as dismal as this time last year, so it might be a good time to sell and figure out a good next step. I’ve been on about 9 listing appointments and several of them may decide to move forward in the next month or two. I also opened escrow with some people who have been looking hard for many months.

Of the two listings in Eagle Rock that I have on the market now, we are having a good turnout at our open houses. That means over 30-40 people at the $699,000 listing at 5320 Rock View Terrace at each the last 3 open houses. Yesterday was the first open house for 4902 Wiota, listed for $429,000, and we had over 60 people! 

5320 Rock View Terrace, Eagle Rock

So the first-time buyer crowd is out in force for the under $500,000 price range, with good interest for higher price ranges as well. And we don’t have just looky-loos walking through (though you are always welcome at my open houses), we have serious talk of offers at both properties.

The First-Time Buyer Tax Credit deadline of April 30, 2010, is having a positive effect both on buyers and on sellers. I think there is a real urgency to take advantage of that opportunity, so buyers are about to have a better choice of interesting properties to consider. The inventory is extremely low right now as properties are being snapped up. 

4902 Wiota Street, Eagle Rock

For you homeowners who have been in your primary residence 5 of the last 8 years, you have a very brief opportunity for a tax credit as well.  Check out my previous blogpost at http://www.tracyslarealestate.com/federal-tax-credit-for-home-buyers-expanded-and-approved-for-eagle-rock-home-buyers. You can also go to www.federalhousingtaxcredit.com for the complete information.

But whether or not you qualify for tax credits, this year is starting off with an active real estate market fueled by relatively low interest rates and prices higher than last year, but lower than the peak. Opportunity is everywhere!

Really. It’s amazing what a well-chosen new paint color scheme can do for the exterior of your home. It’s the least expensive major upgrade you can invest in and actually expect to make money on when you sell your home.

Look at these:

1135 Rock View Ave, Eagle Rock

This sold in 2009 as the pale beige seventies house it was. The new owners painted it a tasteful dusty gray-green and really transformed it.

1312 N. Avenue 57, Highland Park

I sold this in 2005 as a major fixer for $475,000. That buyer did little to it and resold it for $575,000. The current buyer has done much more including the really great fence, but you couldn’t see much change until he painted it these nice colors.

1319 Las Flores, Eagle Rock

This is a really good example in terms of showing what effect the paint has on value. When this house was white, it was towards the beginning of the major slide in prices. I sold it in 2007 for around $489,000. It just sold again at the end of 2009 for $470,000. Considering that the average price in Eagle Rock went down about 32%, this property held its value incredibly well. I credit the paint job for a major influence.

Every now and then in this hilly, older part of Los Angeles, we see a property that has settling to the point of obvious house/land movement. Several homes were red- or yellow-tagged after the 100-Year Rains of 2004/2005. A couple of them are still for sale as foreclosures with their asking prices continuing to drop as the houses edge closer to the abyss over the Arroyo. About 30 years ago and a couple of miles away, there were a few houses that did slip down a hill and were eventually torn down. A few here and there didn’t survive the 1987 or the 1994 earthquakes.
These are dramatic, expensive issues when the problem is obvious. But what if it’s not so obvious? What if it’s a little slippage, but nothing major? How do you decide what to disclose? What to do?
First rule: if the question “Should I disclose this?” occurs to you regarding a property you plan to sell, the answer is “Yes.”
Now we see before us a sea of gray. Ok, so you say the floor isn’t level. What does that mean? Almost any house experiences a little settling over the years. How much is normal? How much is acceptable?
“If I disclose that the floor isn’t level, will that scare buyers away?” It can. It’s a red flag. So what are you going to do about it? And, would you rather have this deter timid buyers before or after you accept an offer and take it off the market?
Some people at this point firmly decide that they don’t want to know anything they would have to disclose and would rather do nothing. This is certainly a fair choice. I have known attorneys who decided this about their own homes. Everyone has a different tolerance for each consequence. Most foreclosures and probates are sold with no pre-sale inspections as well. With a fixer, this path can lead to the property falling out of escrow a time or two or more, and it can lead to a much lower eventual sales price.
Second rule: You can have 5 different professionals give you an honest assessment of what they think should be done and you will get 5 different opinions costing 5 different amounts.
I once had 7 different floor guys give me 7 different estimates that went all the way from $1000 to refinish my hardwood floors to $15,000 to replace them. I had 5 different estimates to install copper plumbing that ranged from $1500 to $9,000 and they each specified exactly the same work!
So do you get the work done? Can you afford to? Do you want to? Here is how I would structure my decision-making process if I had this problem in my house and I was thinking of selling it:
1. Assume I’m going to live here for the rest of my life: what would I do about it? Would I feel safe and comfortable if I did nothing? How would I feel if I did the cheapest fix—or the most expensive one?
2. Assume I’m going to sell in the next couple of years:
a. What will it do to my property’s value if I do nothing and hope for the best?
b. What if I were buying this property? What would I expect the seller to disclose to me?
c. What if I bought this property and found out that there was a big problem afterwards, how would I feel? Would I call my attorney?
d. Who can I talk to about what to do next?
One comment I have heard countless times during inspections over the years is that drainage and water management can have a huge effect on foundations and on hillsides. One of the least expensive repairs can simply include installing gutters and diverting water away from the house. So don’t immediately expect you have a very expensive repair in front of you. Get the facts.

Here are some options that seem reasonable to me:
1. Have a physical inspection done and see what a generalist thinks of what they see. And go a step further, tell them what you know so they know what to look for.
2. Depending on what you hear, you might want to consult various professionals including:
a. A geological inspector
b. A foundation inspector
c. A drainage expert
d. A landscape designer
3. After you have inspections, see where they point you and get some estimates.
a. If the general consensus is to repair, you can choose to fix it or leave it alone. Depending on the size of the expense and your pocketbook, you can make the best decision for your particular situation.
b. Remember, you have to disclose the issue whether you fix it or not.
c. If you decide not to fix it, make your information known to the buyer and price the house accordingly.
d. If you fix it, disclose to the buyer what you did.
If you haven’t been involved in a real estate transaction for many years, the laws and paperwork regarding the seller’s obligations to disclose have changed a lot. Every year we have a new form to complete, new questions to answer. Did you know that you are supposed to provide every report that you have on the property since you bought it? If you’ve owned a place for 20 years, that can be a lot of paperwork.
Oh, that’s overwhelming! Upsetting! Unfair! I’m selling “as-is! “ Fine, it’s already in the contract that all transactions are sold in their current condition subject to the buyer’s inspection rights. And “as-is” does not mean you can choose not to make disclosures. And no, a buyer can’t expect perfection in a 50-year old house. But again, put yourself in the buyer’s shoes. What’s fair now? Which leads us to:
Rule Number 3: Price cures all problems.
So maybe the eventual price is not what you want, but every house will sell at some price. Will you make back all the cost of your repairs? Maybe, maybe not. But here’s the final rule for today:
Rule Number 4: The houses that sell for the most money are the ones that offer the best condition, location, amenities and style for the price in the current marketplace.
It doesn’t matter what you paid, it doesn’t matter what you want to net, what matters is the perceived value in the eyes of the buyer. Which would be worth more in your eyes: a house that has a serious slant in the floor, maybe some signs of water intrusion or cracks around the foundation–or a house that doesn’t?

South Pasadena has proven to be similar to Eagle Rock, having about doubled in value over our 9-year time span.

91030 South Pasadena 9 Year Graph

South Pasadena 9 Year Table

As you can see, the prices are higher in South Pasadena, but the curve has been similar to Eagle Rock.
In the last 2 years:

91030 South Pasadena 2 Year Graph

South Pasadena 2 Year Table 2007-2009

We see that prices didn’t fall quite as dramatically, but losing a quarter of a home’s value is no small number. It looks like prices have stabilized somewhat in South Pasadena, but we’re not seeing any healthy price increases at this time. Remember, in Eagle Rock we are seeing an actual trending up right now, but South Pasadena didn’t really have the big drop earlier that Eagle Rock did.

Why is that? Perhaps because South Pasadena isn’t as much of a first-time buyer market as Eagle Rock is?
Now let’s look at a zip code that is really not an entry-level marketplace, 91108, which includes San Marino:

San Marino 9 Year Graph

San Marino 9 Year Table

The general trend from 2000-2006 is generally up exactly like every other zip code around here, but over the 9 years, this zip code appreciated 82%, around 20% less than South Pasadena and Eagle Rock. But now, look at the spike in the asking price versus the sold price. I guess we’re thinking we’re the Beverly Hills of the San Gabriel Valley, aren’t we? But look at the table for the average sold prices in the last 2 years here:

San Marino Real Estate 2 Year Table

You can ask whatever you want for your property, but the fact is that people are going to pay what they (and the bank, if there’s a loan) think it’s worth. Look at March, 2009—one property sold! In January, only 3 sold. These are really small numbers to try to make any sense out of. This tells me that very few of these homeowners were either willing to sell in the worst part of the market, or that they absolutely had to. Voila! Upon scrutinizing the details on the March 2009 sale, I find that this was a corporate relocation sale. Most of the time, you won’t know from the public data what crisis might have forced a sale unless everything went over the edge to a short sale or a foreclosure.
Here’s the graph of the last 2 years for San Marino:

San Marino 2 Year Graph

It looks like San Marino was just as hard hit by the downturn as everyone else, as far as sold prices goes. And although the asking prices are going up, the sold prices are not. How long can this go on?

FHA raises Buyer Requirements

This just in: according to an article on www.Inman.com , Congress  and HUD (the US Department of Housing and Urban Development) is looking at raising down payment and credit score requirements and lowering seller maximum concession limits for FHA borrowers. This won’t add anything to FHA reserves, but it will significantly limit options for first-time buyers. Check out the full story at http://www.inman.com/news/2009/12/3/fha-will-tighten-in-2010.

This is the first of my end-of-year reflections on where we are and where we’ve been and why do we do this anyway?
I have lots of caveats about the following statistics. Note that the source is called Trend Graphics. These are generalizations, trends, an overview of what the market has done over a period of time. Just because the average price of homes in the Eagle Rock 90041 zip code has gone up 104% in the last 9 years, doesn’t mean that if you bought your home in October 2000, that it is worth 104% more today. But it does mean that generally speaking, homes in Eagle Rock are worth about double what they were in 2000. Some might be more, some less, but it’s a good benchmark.

90041 9-year Table

I think that speaks well for real estate as a long-term investment. Especially when you see that the values in the last 2 years plummeted 35%. One reason our inventory is so low is we all remember what we might have gotten in 2007 or 2008 and we just can’t bear to hear what we need to accept now. I’ve heard this argument many times so far this year. Cheer up, take the long view. Even after all the ups and the downs, if you have owned your home for a long time, you’ve done ok. If you have a good reason to move now, don’t let what might have been 2 years ago stop you. Imagine how much less you would have gotten at the beginning of 2009, now that was a lousy time to sell!

90041 2-Year Graph

90041 2-year Table

But what if you had sold your house at the bottom of the market in the beginning of this year and bought another, also at the bottom of the market? Hmmm.

The 17th annual Arroyo Arts Collective Recovery Discovery Tour takes place this coming Sunday, November 22,

Peter Hess - Intersection

2009. This is a unique event—a self-driving tour that takes place all over northeast Los Angeles and features the work of over 100 artists. To find out more or to buy tickets online, go to www.ArroyoArtsCollective.org or buy tickets in person for $10 each at Galco’s Old World Grocery, 5702 York Boulevard, Highland Park. Tickets at the door are $15, still quite a deal. This year, they are giving $10 “Arroyo Bucks” coupons with each ticket when you check in, good towards an art purchase that day of $100 or more. You get $20 if you can prove that you arrived via Metro. The start for the Tour is the Charles Lummis Home at 200 E. Avenue 43, Highland Park, at 9:30 am. There will be shuttles driving the route all day, or you can drive yourself.

Lummis Home -- photo by Cidne Hart/Kevin Hass

 

What I love about this tour is the chance to meet working artists in their studios and see a part of the community that you never get to see otherwise. As a tourist driving through, say, the top of Avenue 53 off Montezuma, would you ever think there were probably a dozen artists living within a few blocks of each other? Or along Marmion Way at the base of Mt. Washington? Plan to spend the whole day if you can, and you still won’t see everything. This is a rare glimpse of a vibrant community of creative souls, many of whom have lived in these communities all their lives. This is the real LA.