Welcome to the Realty Investment Association of California

Our 43rd year of "Success through Cooperation!"

RIAOC Has a NEW MEETING LOCATION! Zion Lutheran Church (Map), Zion Room (Map)
Go east on Lincoln from Harbor; turn left on East Street. It's just up the street on the right!
Parking is on the south side of the church near Rose Garden. Look for the RIAOC Sign and Enter thru the "Coffee House". Please be careful of school children.

Our Next Meeting is:

1/31/2012 - Orange County Supervisor John Moorlach
“What Orange County Has Been Doing to Deal with the Economy”

RIAOC also provides Early-Bird Marketing, Legal, Legislative and Financial News at our meetings.

Network Meeting 7:30 A.M.; General Meeting 8:30A.M. Workshops at 9:30. (See Education Page for details)

News & Announcements -

See our new Ronald Reagan Page - The Star Spangled Banner (sung the way it should be sung!)

Housing Taxed To Pay For Extension Of Existing Tax, Medicare, And Unemployment Benefits (1/9/12)
NAR recently reported on legislation signed into law by President Obama that taxes housing to pay for the extension of the payroll tax, and maintain Medicare payments and unemployment benefits.

Despite NAR's strong opposition to the diversion of housing resources to pay for non-housing uses, increases in Guarantee Fees on Fannie/Freddie mortgages and premium charges for FHA loans are being used to pay for the extensions. These increases will translate into additional costs for housing consumer and will divert fees needed to minimize the loss exposure of the government-sponsored enterprises, investors, and ultimately, the taxpayer.

C.A.R. recently sent comments letters to the California Congressional Delegation expression opposition to this new law. See the letter: http://www.car.org/governmentaffairs/federal/cl2012/624141/

Proposed Department of Real Estate Changes in Governor’s Budget
On January 5, 2012, Governor Brown delivered to the legislature a proposed budget that included sweeping changes in regulatory agencies, including the Department of Real Estate (DRE), and dramatic cuts to various state programs in order to respond to California’s on-going budget deficit.

The proposed “consolidation” of state agencies, if passed in its current form, would result in the Department of Real Estate becoming a bureau within the existing Department of Consumer Affairs. Similar treatment is proposed for the Office of Real Estate Appraisers (OREA). The Governor’s rationale is that the Department of Consumer Affairs licenses and regulates most professions, ranging from doctors, architects and accountants to auto repair and contractors through more than thirty boards and commissions. The Governor suggests that it is the appropriate place to house regulatory functions for real estate licensees.

In addition, mortgage loan originators not affiliated with banks would be regulated within a new Department of Business Oversight which will oversee all financial and corporate entities. It appears that Mortgage Loan Originators now licensed by DRE will be transferred there, along with the attendant costs of their regulation, the DRE’s largest single enforcement cost area.

C.A.R. has in the past had to defend the budget reserves of DRE against “raids” proposed in previous administration budgets, and will be equally vigorous in resisting any transfer of financial reserves from the DRE under this proposed budget. It remains to be seen if the new budget would have the effect of transferring the reserves from license fees paid by real estate licensees out of the DRE “Special Fund” and into the General Fund of the state. The proposal is not yet specific as to its effect on the enforcement staff and capabilities of the DRE, however, concern has been raised that a “bureau” may not have the enforcement capabilities of a full “department.”

Again, the proposed budget is just that – a proposal, and has not yet been enacted by the Legislature.

C.A.R. Directors will consider the proposal at their winter meeting in Indian Wells later this month.

NAR: Fed Says Tight Bank Policies Hurting Recovery (January 5,2012)

The Federal Reserve urged lawmakers and the administration this week to take a more hands-on approach to the housing market because the market’s continued struggles is holding back strong economic recovery. In a report it just sent to legislative leaders, it said lenders are keeping lending standards too tight, in part because of their concerns over...(Read More)

Prices Mostly Stabilize: Why Aren't More Talking About It?

Daily Real Estate News | Tuesday, December 06, 2011
An improving job picture and prices stabilizing for non-distressed homes are all signs that point to a housing recovery taking shape, Barclays Capital analyst Stephen Kim told HousingWire.
"In the absence of a government home buyer incentives, prices for non-distressed home sales have stabilized for almost a year," Kim said. "This is the most important trend in the housing industry right now, and we are amazed at how little attention it has been getting from the media and the street. This stability on the part of nondistressed prices has occurred despite a very high share of distressed activity and continued declines in overall prices."The key to when the housing recovery will largely take off “depends primarily on when these first-time buyers decide it is safe to buy a house," Kim told HousingWire.
Source: “Barclays Analyst Sees Housing Rebound Coming in 2012,” HousingWire (Dec. 5, 2011)

Real Estate Outlook: Will 2012 See Improvement? by Carla Hill, (courtesy realtytimes.com)
We’ve seen the effects of tight mortgage conditions over the last year. Existing and new homes sales have struggled and we are now left with sizable pent-up demand. Will this trend continue into 2012?
For starters, consumer prices fell in October, meaning low wage workers and others struggling to make ends meet will find more affordability. Additionally, according to experts, this decline gives the Federal Reserve more wiggle room when it comes to policy making should...(Read More)

This Article by John Mackey is very good and worth the read! (courtesy Wall Street Journal)

November 22,2011 - To Increase Jobs, Increase Economic Freedom! - By JOHN MACKEY, CEO Whole Foods
Is the United States exceptional? Of course we are! Two hundred years ago we were one of the poorest countries in the world. We accounted for less than 1% of the world's total GDP. Today our GDP is 23% of the world's total and more than twice as large as the No. 2 country's, China.
America became the wealthiest country because for most of our history we have followed the basic principles of economic freedom: property rights, freedom to trade internationally, minimal governmental regulation of business, sound money, relatively low taxes, the rule of law, entrepreneurship, freedom....(Read More)

November 9,2011 - Want to Increase Your Business? Answer Your Phone! - Denise Lones
Recently, we had a discussion at our office meeting about a new trend that we're seeing. It's happening more and more. And it's detrimental to an agent's business. The new trend is agents don't answer their phones. They are simply letting calls go to voicemail rather than answering.
We decided to test our theory. We literally called 100 agents...(Read More)

November 9,2011 - California home price recovery expected in 2012 - Jonathan Lansner and Jeff Collins
UCLA economists forecast that California home prices will rise steadily over the next six years, although the recovery in home sales isn’t projected to begin until 2013. The UCLA Anderson Forecast predicted that the median price of an existing single-family home will increase 52.5% by 2017, rising to $438,980. This year’s median house price is projected to be $287,904, down 0.3% from 2010. But home prices are projected to turn around in 2012 — jumping 11.5% to.... (READ MORE)

October 26,2011 - Apartment Values Rise, as Do Rents
Digested From "Apartment Values Rise, as Do Rents" Wall Street Journal (10/26/11) by Dawn Wotapka
Strong growth of rents and occupancy levels of rental apartments have pushed some multifamily property values to all-time highs as more and more Americans shift awa...(Read More)

October 24,2011 - Annual real estate sales rise for 3rd straight month (CHARTS) - By INMAN NEWS
Existing-home sales rose year over year for the third straight month in September, according to the latest monthly report from the National Association of Realtors.Sales of single-family homes, townhomes, condominiums and co-ops increased 11.3 percent last month to a seasonally... (READ MORE)