Living

Claremont

2016

My
favorite
room

Courier
Claremont

claremont-courier.com

Claremont COURIER/Claremont Living 2016

My favorite room
A kitchen / 6

An office / 11

by Matthew Bramlett

by Kathryn Dunn

A work room / 9

A solarium / 16

by Mick Rhodes

by Sarah Torribio

Claremont

Living

1420 N. Claremont Blvd., Ste. 205B

Claremont, CA 91711
(909) 621-4761
Office hours: Monday-Friday
9 a.m. to 5 p.m.

Courier
Claremont

claremont-courier.com

Claremont COURIER/Claremont Living 2016

A room for nourishment with Liisa Primack

iisa Primacks
kitchen was in
full swing on
Friday morning as she
was busy preparing
food for Passover. It
was gearing up to be a
special weekendher
daughter, Emily, was
visiting from Israel and
missed good Mexican
food, so a touch of Latin
flavor was being added
to the traditional
Passover cuisine.
Were on full throttle, Ms.
Primack said.
PRIMACK KITCHEN/ext page

COURIER photo/
Steven Felschundneff
Claremont resident Liisa Primack chose the kitchen as her
favorite room, because it is the
social focal point of the home.
She says that lots of people
come and go through the room
either to help cook or to make
crafts.

Claremont COURIER/Claremont Living 2016

COURIER photo/Steven Felschundneff

Liisa Primacks kitchen opens onto the central courtyard of her north Claremont home, which is built similar to a traditional Mexican hacienda.

Claremont COURIER/Claremont Living 2016

PRIMACK KITCHEN/from previous page

Bougainvillea blooms throughout the yard of the Primack home, in keeping with the Mexican theme of the
garden and home.

he scene was not unusual for the

kitchen at Hacienda la Encantada,
the hauntingly beautiful custom
home built by the Primacks in 2000.

Amid the mural-adorned walls and dramatic outdoor sculptures, the kitchen, Ms. Primacks favorite
room, brings the family together.
The kitchen is the heart of the home, Ms. Primack said as she chopped a bushel of cilantro, the
smell of simmering food wafting through all corners
of the room.
One look and youll agree. The space is a perfect
blend of modern amenities with an old world Mexican flair.
The kitchen is situated between the formal dining
room and the living room, claiming its rightful place
as the center of the house.
Ms. Primack has a deep love for Mexico, and visits
as often as she can. She spent her early childhood
there, and has always been enchanted by the countrys natural beauty and mysticism.
The kitchen is well suited for heavy duty cookingtwo impressive restaurant-style stoves sit in the
center of a grand concrete and tile stage. The outer
surface of the refrigerator is a silver intricately detailed, custom-made plate imported from Mexico, and
the tops of the cabinets are lined with vases and pots,
each telling their own story.
At the center of the kitchen is an island that is large
enough to hold a dozen people for virtually any occasion. Ms. Primack makes good use of it, inviting
friends on a regular basis for parties and events.
All of these elements evoke the feeling of being in
a legitimate Mexican kitchen.
The room also contains a long and grand wooden
dining table that would not look out of place in a traditional Mexican hacienda, but Ms. Primack says she
found the table at a garage sale in town.
Its a Claremont original, she said.
Much of the artwork in and outside the house is

Every Friday in print.

Every day online.
www.claremont-courier.com
621-4761

Courier
Claremont

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from local Claremont creative types, including sculpture artist Leslie Codina and Mexican folk artist
Sandy Garcia.
At the edge of the kitchen is a beautifully intricate
plate with a Star of David in the centera tribute to
the small but influential Jewish population in Mexico.
Ms. Primack noted that her guests always have the
same reaction when first entering her kitchen.
Theyre pretty much overwhelmed, she said.
Once the house was built in 2000, Claremonters
who were lucky enough to experience it were
amazed. The city awarded the house an architecture
award in 2001, Ms. Primack said.
Ms. Primacks favorite part of Mexico is San
Miguel de Allende, a city that is historically known
for its artistic community and architecture. The citys
influence can be seen not only in the kitchen, but also

throughout the Primack house, from the dramatic entryway and high-vaulted wooden ceilings, to the
wrought iron light fixtures positioned around the
kitchen.
The Primacks have been training seeing-eye dogs
for about 12 years, and every so often a tail-wagging
black lab would wander into the kitchen, checking up
on his human pack members. This is the heart of
their home, too, Ms. Primack joked.
A big part of why the kitchen is important to her is
the feeling it evokes. No matter where you go, Ms.
Primack says, the senses associated with the family
kitchen will always be with you.
Theres nothing like the smell of your childhood
homes kitchen, she said.
Matthew Bramlett
news@claremont-courier.com

Claremont COURIER/Claremont Living 2016

A room for music-making with Henry Barnes

enry Barnes workspace, while his sanctuary and creative

wellspring, also has its dark
side. Its very easy to lose little items because the magnetic
gravity isnt the same back
here, he said of the repair
shop at Claremonts Folk
Music Center.
Like, if you drop a screw, or a little
bolt or something, you can see it disappear in midair. Before it hits the ground,
itll go poof into this other realm. And
then, itll just turn up by itself sometimes. Itll come back out of the other
dimension. Theres a wormhole somewhere around here. Its crazy.
Mr. Barnes, who has been repairing
instruments at The Folk for 14 years,
says the rambling, artfully chaotic
space is nonetheless the coolest place to
be, despite the alleged mystical attributes of the 106-year-old building.
Its definitely a unique place to
work, the Claremont resident explained. Theres nothing like it. Its
something different every day. And
every guitar is different. Theyre like
fingerprints.
Mr. Barnes, a 1977 Claremont High
School graduate, has a long history
with the FMC. His brother Rufie was
the shops repairman for several years.
His mother, the poet Kate Barnes, and
his Pomona College professor/musician
father Dick Barnes knew its founders,
Charles and Dorothy Chase. Like their
son Henry, the elder Barnes were musicians. Mr. Barnes father had the 12th
Street Mini Band, and later the Real
Time Jazz Band, and often played

COURIERphoto/Steven Felschundneff
Many people build or design a special room in their home or business. However, the instrument repair workshop at the Folk
Music Center evolved over time, with each new technician leaving a mark. Henry Barnes has worked there for 14 years now
and, with his co-worker John Roy, has contributed to the evolution.

shows at the former Nicks Cafe (now

CK Cafe) and the Press.
The Folk Music Center, which is
now run by Mr. and Mrs. Chases
daughter Ellen Chase, is owned by their
grandson (and Ellen Chases son),
Grammy award-winning singer and
songwriter Ben Harper, who also
worked at the store. The FMC has been
operating continuously in Claremont

since 1958, and has been at its current

location at 220 Yale Ave. since 1970.
Mr. Barnes workspace is imbued
with the broad, storied history of the
Folk. Flakes of sawdust from long-ago
repairs dot all manner of still-functioning handmade parts drawers, designed
and built by Mr. Chase. Along with the
sawdust, the drawers hold a combination of treasure trove and treasure hunt.

Theyre full of stuff thats been here

for 50 years, Mr. Barnes said. Weird
stuff that youll never see anywhere.
Indeed: an old iron sash window
weight, a vintage green glass electrical
insulator and a lovely polished piece of
agate emerge from the shelves. Also in
the archives are hundreds and hundreds
MY MUSIC ROOM/next page

Claremont COURIER/Claremont Living 2016

MUSIC ROOM/from previous page

of small instrument parts such as banjo

bridges and hooks, mandolin tailpieces
and nuts, violin parts and instrumentmaking wood, as well as tools, saw
blades, screws, sandpaper, dowels and
bolts.
Its an OCD nightmare, but it works,
Mr. Barnes said. Its full anarchy. You
cant mess with it too much. Too much
organization actually ruins the feel.
Currently, Mr. Barnes is repairing a
late 19th century German Saxony bass
that once belonged to the late, great
jazz bassist Charlie Haden. On the
walls of the shop are disintegrating vintage flyers, yellowed photographs and
various other musical mementos, most
of which feature legendary artists who
have passed through the Folk Music
Center over the years. Many of those
musical souls, some now departed,
have left their mark on Mr. Barnes.
At the top of that list is Mr. Chase,
who died in 2004 (Mrs. Chase passed
away the following year). He would
often encounter Mr. Chase around the
Village when Mr. Barnes was working
at another job nearby.

10

He always had some pearl of wisdom to pass on, Mr. Barnes said of the
FMC co-founder. He was great.
Asked if he had ever felt the presence
of the Folks co-founder on late nights
around the repair shop, Mr. Barnes was
circumspect. You never feel like
youre completely alone, he said. Old
man Chase, his vibe was pretty strong.
And the supernatural properties of
the 1910 building arent confined to the
occasional sensation of a spectral presence.
Its a weird space, Mr. Barnes said.
I mean, this place does have some
metaphysical properties. One of them
is, no matter how much you take out, it
still gets more in than you take out.
Even if you dont put anything in, it just
seems to grow by itself.
No matter the ghosts, no matter the
COURIER photo/Steven Felschundneff
anarchy, Mr. Barnes loves coming to Repairman John Roy tunes a banjo recently in the workshop of the Folk Music Cenwork each day in a space so rich in mu- ter. A skilled technician checks and tunes every instrument the shop sells so that
the customer receives the best products.
sical history. Its got a good vibe, he
said.
You have to problem-solve. And its
struments. He also has played the guitar
Its not the kind of job that you
different every day. Theres never the
since the tender age of seven. But I
never take home. You actually do take
same thing twice.
still have a lot to learn, he added.
it home sometimes, he said. You
I think the important thing is to
More information on the Folk Music
think about stuff youre working on.
enjoy the soul of the room, and I really
Center is available at
enjoy it. And I put that into the guitars I folkmusiccenter.com.
Mick Rhodes
work on.
mickrhodes@claremont-courier.com
Mr. Barnes, in addition to repairing
instruments, designs amplifiers, preamps and an assortment of musical in-

Claremont COURIER/Claremont Living 2016

A room for
tasks and solitude
with
Nori Murphy

COURIER photos/Steven Felschundneff

Nori Murphys office is a simple 128-square-foot out-building at the Claremont home she shares with her husband, Norm Barajas and, their daughter Phoebe Murphy. The couple bought a standard garden shed for $3500,
then added a custom door, insulation, drywall and an extended roof to
make a very livable work space.

t had been nearly five

years since the couple
lost most everything in
the Palmer Canyon fire. In
2005, Nori Murphywho
had spent a dozen years
happily settled in the quiet
canyon communitywas
renting a place in town.
Her boyfriend at the time, Norm
Barajas, lost everything but the

clothes on his back when the Grand

Prix fire gutted the Claremont
canyon.
The couple was longing to settle
again. Their list of wants was
shorttwo bedrooms, two baths, a
fireplace, a detached garage and
lots of room for outdoor living.
We wanted to recreate our
Palmer Canyon experience, Ms.
Murphy said.
Good luck struck, and a house on
WORKING OUT/next page

11

Claremont COURIER/Claremont Living 2016

COURIERphotos/Steven Felschundneff
The 128-square-oot office not only has enough room for a desk and a computer but an exercise space as well. At
right, a sign outside Norm Barajas converted detached garage invites guests to kick back at their Irish pub and
gaming parlor for friends and family.

12

Marylind Drive went on the market. Just a

few doors down from a close friend, the
home had everything they wanted. The 1300square-foot house was small but it offered an
open floor plan, lots of natural light and was
nestled under a grove of mature trees.
Shortly after settling in, Ms. Murphy, who
works for the University of La Verne, set up a
home office in the large family room. She
had enough work space, but her centrally-located desk offered one major problem.
WORKING OUT/next page

Claremont COURIER/Claremont Living 2016

WORKING OUT/from previous page

When I was teaching classes online, the family had

to tiptoe through the house, she said.
When sushing her family became unmanageable
and with both bedrooms in the home occupiedNori
looked to the outdoors for a solution.
Tucked away in the far southwest corner of the property, under the giant ficus, is an 8-foot-by-16-foot Tuff
Shed, complete with a corrugated tin roof, dark bamboo floors and high-end double-swinging doors. The
room isnt huge, but it offers all the comforts of home,
including heating and air, warmly-painted tangerine
colored walls and a small exercise area.
With the exception of an intermittent squawk from
one of their pet chickens, the intrusions are scant.
I can be very productive here, Ms. Murphy explained. Its just far enough away from the house that
I have to make a plan to be interrupted.
She still keeps her office at University of La Verne,
but said she starts each day in her space, checking
emails, scheduling appointments and holding meetings
via Skype.
Just a stones throw from Noris office is a second
space with dual purpose: the Barajass Old Irish Pub, a
gathering place for friends who can often be found
gathered around the bar enjoying a beer and a round of
Scrabble on a sunny afternoon.
For Nori, the affinity for her home was forged
through making the most of both the indoors and out.
Its just a cool little place to hang out.
Kathryn Dunn
editor@claremont-courier.com

Norm Barajas customized the garage into his own space, which is part bar and part workshop.

13

A room for a better tomorrow

with Mark von Wodtke

Claremont COURIER/Claremont Living 2016

16

hen it comes to
having an enjoyable hotel
stay, the preference is generally a room with a view.
Mark and Carla von
Wodtke are lucky indeed,
because the couple enjoy
a room with a lovely view
each day they spend in
their Claremont home.
Their favorite room in the California Spanish house, which was
built in 1927, is a solarium that
Mr. von Wodtkea landscape architect and professor emeritus at
Cal Poly Pomonaadded onto
the house 40 years ago.
He built the glass-walled nook
from a kit he ordered through the
mail and modified, adding doors
and side panels. Its dominated
by a large dining table and looks
out onto the backyard, which features a koi pond and is dotted
with fruit trees.
SOLARIUM/next page
COURIER photo/Steven Felschundneff

Claremont COURIER/Claremont Living 2016

ATRIGHT:
Glass bowls
made by former
neighbor Paul
Brayton decorate
the dining table in
Mark von
Wodtkes solarium. The von
Wodtke family
share meals in
the room year
round.
OPPOSITEPAGE:
Mr. von Wodtke
relaxes in the solarium of his
Claremont Village
home. Mr. von
Wodtke, who built
the room himself
about 30 years
ago, heats his
home in the winter by drawing
warm air in from
the solarium.

SOLARIUM/from previous page

We used to have koi in the pond, but we found it was a very

expensive way to feed the raccoons, he said. Now we have
mosquito fish and goldfish.
Mr. von Wodtke is chairman of Sustainable Claremonts Tree
Action Group, has a renewable energy company called Energy

Harvester and is a regular contributor to the COURIER, specializing in articles on green living.
Considering his name has become synonymous with sustainability, it should come as no surprise that the solarium does double-duty as a source of renewable energy. The glass walls serve
as a natural heat collector. The floor is covered with terra cotta
tiles, laid and grouted by the von Wodtke family when they built

17

Claremont COURIER/Claremont Living 2016

SOLARIUM/from previous page

the room. The earth-colored tiles complement the

style of the house, but they are also excellent at absorbing heat.
Air ducts draw the heat from the solarium into the
rest of the house. Awnings controlled with electric
motors can be positioned to block the sunlight on hot
days. The von Wodtke home also has solar panels on
the roof for heating water and generating electricity,
making it 80 percent powered by renewables.
Aside from making the house energy-efficient, its a
place to connect with the garden and connect with the
sun, Mr. von Wodtke said.
On April 14 it was announced that Claremont won
the Cool California Challenge, sponsored by Energy
Upgrade California. Twenty-two cities in the state competed in the challenge, which involved getting as many
residents as possible to track and reduce their household energy usage, earning points for their town. This
house was one of the top point winners, Mr. von
Wodtke noted.
The solarium may serve as a passive source of heating, but it is foremost a rooma place where the von
Wodtkes can begin their day with the newspaper and a
cup of tea, and end it with a starlit supper.
The sunroom is furnished in a simple and clean way,
reflecting Mr. von Wodtkes unique taste and the Dutch
roots of Ms. von Wodtke, who was born in Amsterdam.
There is a large wooden table from Crate and Barrel,
surrounded by old chairs that belonged to Mr. von
Wodtkes father.
There is a rocking chair from Virginia and a couple
of freestanding wooden chairs purchased from the Village shop On a Mission. In a sure sign of a couple
thats in sync, Mark purchased one of the chairs for
Carla one Christmas. It wasnt planned, but that same
holiday, she bought him one as well.

18

he table was decorated with a vase from Italy

filled with flowers from the Claremont Farmers
Market. There were also two colored glass
bowls created by local artist Paul Brayton. The way
the light comes in here, it does wonderful things to the
glass, Mr. von Wodtke said.
The room was embellished with blooming orchids, a
flower that thrives in the sun-filled space. Adding to the
sense of peace was the purring ginger-colored tabby
Johnny, who was sleeping in a cat bed. His brother
Bello, another orange feline, had apparently found another place to snooze.
This is the cats favorite room, Mr. von Wodtke
said. And when cats approve, its a pretty good indicator that its a nice place.
The von Wodtkes enjoy wonderful family dinners
and gatherings in their solarium. Earlier this month,
they hosted a dinner for House of Ruth, earning $1,000
for the organization that assists women and children
who are victims of domestic violence.
You can pull back all the awnings on a moonlit
night and enjoy a moonlight dinner, Mr. von Wodtke
said. It also makes a great place to sing in, because all
the glass creates a resonance.
The von Wodtkes, who were married in 1969, love
their spot in the City of Trees. When they first moved
here in 1973, they werent sure they would stay long
because of the choking smog that cloaked the Pomona
Valley at the time. But they had three children, then
grandchildren, and settled in.
Luckily, air quality measures have improved the
skies immensely since that time. It certainly gives me
the realization we can make a difference by getting
people together to improve the quality of life, Mr. von
Wodtke said.
The solarium serves as a venue for those types of
conversations. The Tree Action Group gathers there, as
SOLARIUM/next page

COURIER photo/Steven Felschundneff

Mark von Wodtke grows orchids in the solarium of
his Claremont Village home.

Claremont COURIER/Claremont Living 2016

19

Photo courtesy of Mark von Wodtke

The solarium, covered here by a tarp to protect the room from a summer heat wave,
is centered along the back of the Von Wodtkes Tenth Street home.
SOLARIUM/from previous page

does the newly developed Eco-Village

Concept Group. As development in
Claremont continues, Mr. von Wodtke is
hoping to get the community to embrace
a vision of a sustainable downtown area
that you drive to, not through. He will be
elaborating on the concept in a series of
Eco-Village columns he plans to write in
the coming months.
The effort is typical of Mr. von

Wodtkes inherent sense of optimism.

The best way to predict the future is to
invent it, he said, quoting the noted
computer scientist, Alan Kay.
Thus, the von Wodtkes gracious sunroom serves as both the centerpiece of
their home and of their vision of personal sustainability. And it all came
about four decades ago.
We were ahead of the curve, Mr.
von Wodtke said.
Sarah Torribio
storribio@claremont-courier.com

Claremont COURIER/Claremont Living 2016

20

Plan a special day for Mom, right here in Claremont

morial Park. The show, Broadway Mamas! is a
Mothers Day-themed production from Ophelias
Jump. Celebrate mom with this cabaret celebrating
Broadway mothers of all shapes, shades and persuasions, said the producers. The event features music,
food and drink, including a cheeseboard dessert, wine
and craft beer. Tickets are $20-$25. Information can
be found at opheliasjump.org or at (909) 541-5850.
Some of the more non-traditional options for mom
include a nice afternoon hike at Thompson Creek
Trail. At press time, the weather for Mothers Day
looks less than hospitable though, with a 20 percent
chance of showers.

Photos courtesy of Mick Rhodes

Lynn Bernard, at left, with her son, COURIER reporter
Mick Rhodes.

hildren of all ages can be seen this

time of year at Target, the mall and
in the Village, glassy eyed, mouths
agape and a vague look of panic on their
faces. Thats right, Sunday, May 8 is
Mothers Day, and evidence of the desperate gift search for dear old mom can be
seen all over town.
One option is, of course, the old standby: flowers.
Trader Joes has a wide assortment of cut and living
varieties. Candy? Sure, you could go that way. There
are the unusual choices as well; a gift certificate for a
massage or a lunch date with mom. How about concert tickets? The risk, of course, is mom opens her gift
and there is that awkward pause, and then, Oh, wow!
I would have never thought of that...Um, thank you!
Among the local options this year is a mom-centric
musical revue at Claremonts Garner House in Me-

So what else would mom like to do? Some mothers

appreciate a fancy meal at an upscale restaurant, while
others would rather stay home and have their kids
cook for them. If your mother leans more to the former, there are a host of local eateries that fit the bill.
But here are some suggestions if youd like to give
your Mothers Day celebration a more personal touch.
If youre planning on cooking at home, or reheating
pre-made food so as to create the illusion of cooking at
home (dont judge), planning is a must. Speaking from
experience, it is wise to ask mom what she prefers.
Dont assume shell appreciate the Thai feast youve
MOTHERS DAY/continues on the next page

Claremont COURIER/Claremont Living 2016

MOTHERS DAY/from the previous page

prepared, just because you do. Ask mom

what she wants. If shes non-committal,
get out your roasting pan and cook a
turkey. Thoroughly. And mash up some
potatoes. Be sure and have moms favorite dessert as well, or you run the risk
of disappointing her. Again.
And while its of course smart to plan
a good meal, the best gift of all may
simply be time. Some moms see their
busy grown children all too infrequently, and may like nothing more
than sitting down and talking for while
with their offspring.
Then there are the mothers of young
children, who may see quite enough of
their kids, thank you very much. For
those stressed-out, stay-at-home warriors or those working uber-moms, the
best gift of all may be to leave them
alone for the day; Make them a bloody
mary or two, then drop them off at the
movies for a solitary afternoon enjoying a world that isnt dominated by diapers and baby...substances. Theres
even a movie, crassly titled Mothers
Day, that will be in theaters that day.
If mom isnt game for public con-

21

sumption, she may be perfectly content

binging on Netflix and pie and having
her kids clean up the kitchen. If this
sounds like your (my) family, then perhaps a few traditional Mothers Day
flicks are in order. Mrs. Doubtfire,
The Kids are All Right and My Big,
Fat Greek Wedding are popular
choices. But if your mom is like some
(mine), maybe an offbeat choice such
as Mrs. Bates, the incredible Austrian
horror film Goodnight Mommy or
good ol Mommy Dearest would better
fit the bill. Any of these would surely
prop up moms sense of her fitness as
the familys maternal CEO.
Isnt that what its all about? Shouldnt we all try and give our moms a pat
on the back, a cocktail or two, some entertainment and a nice meal?
No matter if your approach is fancy
or modest, elaborate or simple, the day
should be spent doing what mom wants
to do. So be prepared, kids; Moms
wishes may include your direct participation, or they may entail you slipping
a pizza and a bottle of something strong
under her bedroom door. Either way,
mama gets what mama wants.
Mick Rhodes
mickrhodes@claremont-courier.com

Claremont COURIER/Claremont Living 2016

24

Are we heading for another real estate bubble burst?

by Ryan Zimmerman

he real estate market has been on

fire since completely bottoming
out between 2011 and 2012. Investors started the trend by realizing that
prices were low, and they pounced. Investors with deep pockets were grabbing
up as much real estate as possible at a
steep discount. At the time, cash was king,
with nearly 25 percent of sales being purchased with all-cash.

With many people losing their homes due to default, there was a swarm of new renters looking for
places to live, and the investors drove the real estate

market in those early recovery years.

During the recovery, financing was tightly regulated. It became more
difficult for buyers to qualify
for a mortgage, compared to
the loose qualification criteria lenders had set before the
crash. However, the 2012
market was perfect for buyers to enter as interest rates at
or below four percent were incentive enough to get
would-be buyers off the fence.
Fast forward to 2016, where the average price of a
home in Claremont is only $10,000 shy of the ab-

solute peak of the market in 2007, and the year isnt

even finished yet. Spring and summer are typically
when markets see the biggest growth, and I predict
that 2016 will see prices on par with the market peak,
and quite possibly, surpassing it.
Prices have rebounded so much, that we are now
seeing a slow down in investor purchasing, with cash
purchases of Claremont homes dipping to 19 percent
of transactions. This is due to cheap money access,
as well as higher entry barriers for cash investors.
So what does this all mean for the future of the
housing market? With prices likely to exceed the
highest peak in history, are we on the brink of another
bubble burst? Its hard to say for sure, but factors surrounding the housing market today are very different
than they were leading up to the crash.
Here is a condensed version of how the first bubble
was created: The housing explosion that took place in
the early-to-mid-2000s was largely due to banks essentially throwing caution to the wind when it came
to qualifying buyers for a loan. They were giving
loans to buyers who had terrible credit, poor job histories and, at times, no jobs at all. They were loose with
their debt-to-income ratios to qualify and, on top of it
all, were doing whatever they could to ensure the appraisals came back at or above value on any purchases. If that sounds bad, it gets worse.

f all of those loans were set as 30-year

fixed rates, perhaps the crash would
have been more like a bad fender bender, but the majority of those sub-prime
loans they were giving had adjustable
rates, which nearly ensured that the borrowers would default when the rates
would inevitably jump well beyond their
ability to afford them. So the rates
jumped, borrowers defaulted left and right
and the market crashed. Hard.
The recovery, however, has been quite different.
Lenders credit requirements shot back up. Regulations on the banking industry were put in place, and
those horrible sub-prime mortgages with adjustable
rates and loose-to-non-existent criteria went away. So
we arent going to see millions of homeowners default on their adjustable rates like we did after 2006
and 2007. This means were out of the woods, right?
Well, not exactly. The problem now is that interest
rates have been too low for too long.
Money is still so inexpensive that buyers have been
wanting to take advantage of that before rates inevitably go back up. Lending requirements have also
loosened up a bit again, and more loan programs keep
coming out all the time. Buyers can now get loans
with as little as 3.5 percent down for an FHA loan,
and many lenders offer conventional financing with
as little as 5 percent down. So we are putting a lot of
buyers into homes who have very little skin in the
game. This works fine as long as people keep their
jobs and the market keeps moving upward, but what
happens when the economy turns around for other
reasons?
It is becoming increasingly more difficult to afford
a home as prices continue to rise. Interest rates will be
going slowly upward, which will put even more pressure on affordability. If interest rates move up too
much, affordability goes downand so do prices.
The other issue is incomes are not keeping up with the
same rate at which housing prices are rising.
In addition, the world is a very volatile place right
now, with increasing tensions in the Middle East and
Asia, oil volatility and many other global factors that
BUBBLE BURST/continues on the next page

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BUBBLE BURST/continued from previous page

could cause a downturn in the economy. If that

happens, it could mean a loss in peoples incomes,
or their jobs.
When lenders used to require 20 percent down,
borrowers had enough built-in equity that they
could often weather the storm if prices declined.
They had enough equity to likely prevent them
from being underwater on their mortgage. But
what happens when prices trend downward, the
real estate market turns and people find themselves needing to sell their homes, and they only
had 3.5 or 5 percent equity to start with? This
could cause another large string of defaults on
homeowners mortgages.
So what does all this mean? Without a crystal

ball, its really impossible to say what exactly will

happen. The last bubbleand eventual burst
were directly the result of unscrupulous activity by
the big banks and lack of regulation. We dont appear to have that anymore, so a more global economic issue is really what would have to happen
to cause some trouble for the housing market in
the future.
As things stand now, the economy seems to be
doing well, and interest rates are expected to only
gradually increase without making shocking
jumps. So there are no major indicators of a bubble burst any time in the foreseeable future.
There are some signs that do point to a possible
slow-down in the real estate market, but then
again, maybe not. Economists have been wrong
before.

25

???????????
ASK YOUR LOCAL

Realtor

Dear Realtor:
Once I decide to put my home on the market,
how much control do I have over people coming
in and out of my house? How do I protect my
privacy when showing my home?
Concerned Seller
Dear Concerned Seller:
Thank you, thats a great question. Actually you
have more control than you think when it comes to
having your home on the market. There are a number
of options available to you, which your realtor should
point out to you:
1) Your agent can coordinate all of showings
through their office with prior notification to you.
2) You can choose to not have a key safe on the property and have your agent be in charge of all showings.
3) Your agent can advise other agents of time and
day restrictions for showings. For example, you could
say Monday through Friday from 10 a.m. to 4 p.m.
only.
4) If you do have a key safe, the lock boxes are
equipped with a computer chip that allows your agent to
identify who has accessed the box, and also the date and
time of that access. Your agent can then print out an access report for your review at any time.
As far as protecting your privacy when showing
your home, I always advise my clients to clear away
items such as medications, jewelry, bills and paperwork or anything they perceive as personal and confidential. Putting all of these things in plastic containers
and storing them in a safe place is best.
If your agent is holding an open house, it is important to make sure all of your personal items are stored
away. My practice is also to keep a keen eye on any
and all attendees of my open houses to make sure my
clients home is not compromised.
Contact me to go over other ideas about keeping
you and your home safe during the selling process.
Susan Emerson
Wheeler Steffen Sothebys International Realty
(909) 447-7710