I want to start off by saying I have a lot of respect for realtors. Handling real estate transactions is a difficult, high-pressure job. I, personally, would have never bought my home without the help of a realtor. And no matter how popular the Internet gets, nothing can replace the human touch a realtor brings to the transaction.
I reserve my endorsement to the realtors who deal with the parties involved, face to face. And I will further limit it to true professionals, not people in it for a quick buck. I will not extend it to the brokers and agency owners behind the scene who really call the shots. They’re another matter, altogether, to be dealt with on a case by case basis.
In the very first column I wrote for this paper, “Selling (Out) Sierra Madre”, I alluded to the high-density condominium projects in our downtown having two aspects. First, the condos would have to be designed and built to undercut the market. How else would you generate sales in a market that’s the slowest we’ve seen since the bottom of the last crash 10 years ago? Second, creating a rapid decline in home values could have a very beneficial effect for realtors.
A story appeared on the front page of the February 13th LA Times titled “It’s Their Default Position” that clearly illuminates the second premise. The story describes the real estate “crash” that’s beginning out in Riverside and San Bernardino Counties, and how a real estate agency is exploiting it. They target homeowners who are behind in their payments.
The story follows the activities of two new realtors, one, a former route salesman for Peet’s coffee, and the other, a former body shop estimator who states his reason for getting into real estate as being; “It’s all about money.” However, the sentence that sums up their attitude best comes from their broker/boss. “Home Center Chief Executive Ron Barnard says that personally, he finds foreclosure sad, even tragic. ‘But as a business owner, I think it’s great. ’ ” Need I say more?
There are two major complications in real estate being reported in the financial press. One is the ever-growing glut of housing, especially condos. The other is the failure of mortgage lenders to correctly assess the risks of their exotic, sub-prime lending practices. This latter problem extends all the way to Wall Street, with problems developing in mortgage backed securities, a subject the LA Times story also touches on.
The thing everyone needs to understand is how ruthless the people are we’re dealing with. Did Joe Mosca get on the City Council through the help and planning of developers? What exactly are the opponents on Measure V capable of? I don’t know. But if we’re not careful, the disaster that’s developing out in Riverside and San Bernardino Counties will be coming to Sierra Madre.
A direct link to "It's Their Default Position."
Friday, February 23, 2007
Saturday, February 17, 2007
Joe Mosca
One of the principal arguments the opponents of Measure V are using is that we should defer decisions about community planning to our elected officials. There’s one major flaw in that argument. We tried that, and it failed.
In last year’s election for City Council we had a broad slate of candidates. The three candidates that expressed reservations about the Downtown Specific Plan and who promised the people a referendum on the final draft won a landslide victory. The people had spoken, and their wish was clear.
We thought we were safe. Whatever decisions and compromises our City Council made, the residents would have a final say in the matter. When Joe Mosca broke his campaign promise and reversed his position on the DSP referendum, it registered a 12 on the community Richter scale. He terrified us. And his betrayal galvanized our community.
I’ve heard a lot of opinions about Joe Mosca, all the way from he’s a mole the developers planted, to he’s young, inexperienced, and politically naive. Whatever your choice, he’s a disaster. Not just for the voter’s who trusted him, but also for the side he’s gone over to.
Joe Mosca’s betrayal took compromise off the table. He almost single handedly put Measure V on the ballot.
Compromise is what politics is all about. His removing the possibility of compromise has brought us to the degree of political polarization we currently face in Sierra Madre.
What was Joe Mosca thinking? What makes him think he has more experience, maturity, and wisdom than the residents who voted for him. Whatever he thinks, he’s wrong.
Joe Mosca started off his tenure on the City Council a hero and became, in a few months, one of the most despised residents this community has ever seen. That takes real talent. The real tragedy is he’d still be everyone’s hero if he just used his head.
There has been a major failure of Joe Mosca to grasp the political realities of Sierra Madre. Regardless of party affiliation, when it comes to Sierra Madre itself, the vast majority of residents are conservative. Sierra Madre is a family community. We have no desire to become another Old Town Pasadena. We want a town that’s safe, secure, and prosperous, a place where our kids can congregate at Bean Town after school and in the evening without us having to worry about them.
The signs of a reversal in the real estate market were clear last Spring. Everyone saw it. We need to maintain the value of our homes. As long as the homeowners feel prosperous, the contractors and building tradesmen who do the additions, remodels, and maintenance on our homes will have work. And if we keep Sierra Madre a desirable place to live, the realtors will have a strong housing market and an income, however modest, to get them through to the next boom.
My greatest fear is that they’ll kick out Taylor’s Meats, bulldoze Howie’s, and get a building started. Then, the crash will come all work will cease, just like 1990.
Given last April’s election, the outcome of the vote on April 17th seems predictable. So Joe, if you want to be a hero again, here’s my suggestion. Resign!
Get out of the way and let this community heal the gaping wound your poor judgment inflicted. Run again if you want to. Maybe we’ll give you another chance, but, for the sake of everyone, end the nightmare you’re betrayal created. And let the City Council, once again, become the community forum it should be.
In last year’s election for City Council we had a broad slate of candidates. The three candidates that expressed reservations about the Downtown Specific Plan and who promised the people a referendum on the final draft won a landslide victory. The people had spoken, and their wish was clear.
We thought we were safe. Whatever decisions and compromises our City Council made, the residents would have a final say in the matter. When Joe Mosca broke his campaign promise and reversed his position on the DSP referendum, it registered a 12 on the community Richter scale. He terrified us. And his betrayal galvanized our community.
I’ve heard a lot of opinions about Joe Mosca, all the way from he’s a mole the developers planted, to he’s young, inexperienced, and politically naive. Whatever your choice, he’s a disaster. Not just for the voter’s who trusted him, but also for the side he’s gone over to.
Joe Mosca’s betrayal took compromise off the table. He almost single handedly put Measure V on the ballot.
Compromise is what politics is all about. His removing the possibility of compromise has brought us to the degree of political polarization we currently face in Sierra Madre.
What was Joe Mosca thinking? What makes him think he has more experience, maturity, and wisdom than the residents who voted for him. Whatever he thinks, he’s wrong.
Joe Mosca started off his tenure on the City Council a hero and became, in a few months, one of the most despised residents this community has ever seen. That takes real talent. The real tragedy is he’d still be everyone’s hero if he just used his head.
There has been a major failure of Joe Mosca to grasp the political realities of Sierra Madre. Regardless of party affiliation, when it comes to Sierra Madre itself, the vast majority of residents are conservative. Sierra Madre is a family community. We have no desire to become another Old Town Pasadena. We want a town that’s safe, secure, and prosperous, a place where our kids can congregate at Bean Town after school and in the evening without us having to worry about them.
The signs of a reversal in the real estate market were clear last Spring. Everyone saw it. We need to maintain the value of our homes. As long as the homeowners feel prosperous, the contractors and building tradesmen who do the additions, remodels, and maintenance on our homes will have work. And if we keep Sierra Madre a desirable place to live, the realtors will have a strong housing market and an income, however modest, to get them through to the next boom.
My greatest fear is that they’ll kick out Taylor’s Meats, bulldoze Howie’s, and get a building started. Then, the crash will come all work will cease, just like 1990.
Given last April’s election, the outcome of the vote on April 17th seems predictable. So Joe, if you want to be a hero again, here’s my suggestion. Resign!
Get out of the way and let this community heal the gaping wound your poor judgment inflicted. Run again if you want to. Maybe we’ll give you another chance, but, for the sake of everyone, end the nightmare you’re betrayal created. And let the City Council, once again, become the community forum it should be.
Monday, February 12, 2007
Safety First
One of the most common things I hear people say about Sierra Madre is that, as soon as they enter the community, they feel a sense of peace and security. I feel the same way. It’s another world here. It isn’t? Well that’s not an accident. The people who live and work here have created the unique character of Sierra Madre through a lot of hard work and dedication. And foremost among those special people are Officers of the Sierra Madre Police Force.
When you read the Police Blotter, you get the feeling that nothings happening here. But the feeling of security in this town is an illusion, an illusion that has been created by a police force that’s doing an outstanding job. A job they perform with quiet dedication.
The truth is Sierra Madre is located in on the edge of a jungle. A jungle that grows more dangerous and violent with each passing day. The stabbing that occurred in Memorial Park last month sent chills down my spine. It told me the gangs know we’re here. And we are a very fat target. They’ll be back, with reinforcements.
The police need our support now. They are grossly under paid. All they are asking for is to be compensated at the same level as the lowest paid police department in the San Gabriel Valley. And no new revenues will be needed to do this. All that is required is for Public Safety it be made a priority in this community.
Our City Council has refuses to do this. I think the reason is obvious. They want to out-source police services. They’ll say it’s cheaper to do it that way. Well, you get what you pay for, and Public Safety isn’t a place to scrimp, not in this valley. Besides, if you start out-sourcing our public services, why now just let Pasadena annex us. Watch what happens to home values if that happens, when the developers finally get total control.
They’re our cops, and we need to keep it that way. They know us. We know them. They know this town like the palm of their hand. They can smell trouble before it gets into our community and into our homes. You’re not going to get that with a bunch of hired mercenary’s from other places.
So, a lot of volunteers and I are going to be out knocking on doors and asking you to sign a petition to put their very modest requests on the ballot as an initiative. Please open your doors and hearts and help us out. The community you save will be your own.
When you read the Police Blotter, you get the feeling that nothings happening here. But the feeling of security in this town is an illusion, an illusion that has been created by a police force that’s doing an outstanding job. A job they perform with quiet dedication.
The truth is Sierra Madre is located in on the edge of a jungle. A jungle that grows more dangerous and violent with each passing day. The stabbing that occurred in Memorial Park last month sent chills down my spine. It told me the gangs know we’re here. And we are a very fat target. They’ll be back, with reinforcements.
The police need our support now. They are grossly under paid. All they are asking for is to be compensated at the same level as the lowest paid police department in the San Gabriel Valley. And no new revenues will be needed to do this. All that is required is for Public Safety it be made a priority in this community.
Our City Council has refuses to do this. I think the reason is obvious. They want to out-source police services. They’ll say it’s cheaper to do it that way. Well, you get what you pay for, and Public Safety isn’t a place to scrimp, not in this valley. Besides, if you start out-sourcing our public services, why now just let Pasadena annex us. Watch what happens to home values if that happens, when the developers finally get total control.
They’re our cops, and we need to keep it that way. They know us. We know them. They know this town like the palm of their hand. They can smell trouble before it gets into our community and into our homes. You’re not going to get that with a bunch of hired mercenary’s from other places.
So, a lot of volunteers and I are going to be out knocking on doors and asking you to sign a petition to put their very modest requests on the ballot as an initiative. Please open your doors and hearts and help us out. The community you save will be your own.
Numbers Don't Lie
“ Housing Glut Gives Buyers Upper Hand”. This was the headline of an article in the January 25, 2007 edition of the Wall Street Journal. Interesting. A market that was referred to as the “real estate boom” 15 months ago and a “cooling market” 8 months ago, is now described as a “housing glut”.
The article provided data for 28 major metropolitan areas, including Los Angeles, where the inventory of homes for sale increased by 59% in 2006. The most distressed markets are Miami and San Diego, and the cause is the massive condo glut. In San Diego, there are now “more than 10,000 condos available for sale in new building, projects under construction or properties being converted”. Condo prices declined by 15% to 20% in 2006, with the article stating “it’s hard to measure price changes because sellers often give incentives such as free upgrades or help with closing costs that aren’t reflected in the price.”
In the January 16, 2007 press release from Dataquick, the main source of real estate market data for California, Dataquick’s President is quoted as saying; “We are watching the San Diego market carefully, sales and price trends there have tended to lead the region.” With the 100 to 150 condos proposed for downtown Sierra Madre, you might say the cancer that is destroying the San Diego real estate market is attempting to metastasize and spread to our community.
Sierra Madre does not exist in a vacuum. Its small town character belies the fact that it is a component of Los Angeles County and the Southern California Region. However, as an independent entity, we have the power to prevent the real estate crisis that’s moving north from San Diego from entering our community.
During the real estate crash in the early 1990’s, several areas of Los Angeles were not seriously affected. Sierra Madre was one of them. Possibly the least affected area, however, was the Hollywood Hills. That came from two factors. First, the entertainment industry did not suffer from the financial losses that hit areas around military bases and defense related industries. Second, and more importantly, The Hollywood Hills were built out decades ago, and further large-scale development is impossible.
I research everything I write in my columns, thoroughly. And in all my work I have never found any data or expert opinion that would support an argument for high-density housing projects in our downtown. All these projects will do is degrade our quality of life, depress home values and hurt homeowners. And homeowners are the vast majority of residents in this community. However, I can easily see how these high-density housing projects would help downtown property owners, developers, and the local real estate agencies. So, would City Council members, Buchanan, Joffe, Mosca, and the rest of the clique supporting these projects please show all of us what they are basing their position on.
The article provided data for 28 major metropolitan areas, including Los Angeles, where the inventory of homes for sale increased by 59% in 2006. The most distressed markets are Miami and San Diego, and the cause is the massive condo glut. In San Diego, there are now “more than 10,000 condos available for sale in new building, projects under construction or properties being converted”. Condo prices declined by 15% to 20% in 2006, with the article stating “it’s hard to measure price changes because sellers often give incentives such as free upgrades or help with closing costs that aren’t reflected in the price.”
In the January 16, 2007 press release from Dataquick, the main source of real estate market data for California, Dataquick’s President is quoted as saying; “We are watching the San Diego market carefully, sales and price trends there have tended to lead the region.” With the 100 to 150 condos proposed for downtown Sierra Madre, you might say the cancer that is destroying the San Diego real estate market is attempting to metastasize and spread to our community.
Sierra Madre does not exist in a vacuum. Its small town character belies the fact that it is a component of Los Angeles County and the Southern California Region. However, as an independent entity, we have the power to prevent the real estate crisis that’s moving north from San Diego from entering our community.
During the real estate crash in the early 1990’s, several areas of Los Angeles were not seriously affected. Sierra Madre was one of them. Possibly the least affected area, however, was the Hollywood Hills. That came from two factors. First, the entertainment industry did not suffer from the financial losses that hit areas around military bases and defense related industries. Second, and more importantly, The Hollywood Hills were built out decades ago, and further large-scale development is impossible.
I research everything I write in my columns, thoroughly. And in all my work I have never found any data or expert opinion that would support an argument for high-density housing projects in our downtown. All these projects will do is degrade our quality of life, depress home values and hurt homeowners. And homeowners are the vast majority of residents in this community. However, I can easily see how these high-density housing projects would help downtown property owners, developers, and the local real estate agencies. So, would City Council members, Buchanan, Joffe, Mosca, and the rest of the clique supporting these projects please show all of us what they are basing their position on.
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