The outlook for 2012 continues to be filled with uncertainty. The market has been permanently transformed over the last few years, but will that be enough to move things forward or will it continue to stay stuck in the mud? There are several key factors which will decide the fate of Lenders as well as the direction that the Real Estate industry moves in 2012.

One major issue that will likely affect the real estate market in 2012 is the settlement between Servicers and state Attorneys General. The terms set out by the AG’s could free up the inventory currently slowly making its way through the pipeline. Another potential issue could be the rollout of a very lenient modification program which could most likely increase mortgage defaults because current borrowers would deliberately miss payments, hoping to qualify for debt reductions. The modification requirements could add up to 280 days to the time it takes Lenders to seize properties and increase the inventory of foreclosed homes. The costs of the delays, overhead requirements, advances and principal write-downs could be passed onto consumers. This would slow foreclosure timelines to a trickle, overflow local judicial systems and extend the recovery time for the economy as a whole.

We expect to see short sales continue to take center stage in 2012. Currently short sales have accounted for a larger percent of Lender workouts and we expect to see those levels rise in 2012. While Loan Modifications volumes have declined in 2011, performance has steadily improved over time.

Overall, the outlook for 2012 has one clear message: Be prepared for the unexpected. 2012 could be the year where the floodgates open up and volumes of foreclosures and REO begin to flow. However, the uncertainty of a Servicer settlement with the AG’s and the uncertainty of new government intervention could extend today’s current environment.

The above chart reflects sales in the Alamo, Walnut Creek, Concord, Clayton,                                                                                                   Pleasant Hill, Pacheco, Martinez and Lafayette markets. .                          

Daylight Savings Time begins this month. Set ahead your clocks on Sunday March 11^th.   (spring ahead) At least we will get another hour of daylight at the end of the day when we can enjoy it.

Saint Patrick’s Day is on Saturday March 17^th  Being part Irish, on my father’s side, I always enjoy this day and I plan to wear green and eat corned beef and cabbage on the 17^th.

You may not be aware, but most Prudential California Realty Agents donate a portion of their commission to the Prudential California Community Foundation. In 2011, these contributions amounted to $16,000.

The Foundation has a committee of 8 agents who review charitable causes and administer the annual donations. Agents suggest to the committee different charities for consideration and the committee investigates then decides on which charity we will support with a cash donation. One of our goals is to choose charities that are not main-stream but serving the local communities where we represent properties While the company controls the funds, company management does not influence and accepts the recommendations of the agent committee.

In 2011, the Prudential California Community Foundation made a donation of $2,500 each to these 6 charities:  Building Futures With Women & Children /  Tri-Valley Haven: Livermore   Bay View-Hunters Point Multi-Purpose Senior Service: San Francisco  /  McHenry House: Tracy    Winter Nights Shelter  /  Rebuilding Together.

At our recent Quarterly Company Meeting, representatives of each organization were present to receive their donation check in person and tell us a bit about how each charity impacts the community that they serve.  Their presentation was indeed inspiring, and I know that I, for one, will be increasing the amount that I donate from each closed escrow.

Our goal for 2012 is to increase our donations to $50,000 so we can triple the number of charities we can assist.

My office, the Pleasant Hill Office of Pearson Properties dba Prudential California Realty recently received an award as the Number 3 office, out of 15 office’s in the company.

Recognition was given to my Broker Manager, Clark Anderson, buy Gretchen Pearson, Owner Broker of the company at our recent Quarterly Company Meeting.

We’ve got a good Realtor team and a great Management team . . . this should be the first of many more awards to come our way in future years.  It is a pleasure to be association with this company and this office.