Hi Desert Real Estate Forum

Set to debut this year, FICO ’08 is the latest model for scoring lending risk from Fair Isaac, the industry‘s leading credit-rating firm. Experts are predicting that FICO ’08 could reduce default rates between 5 percent and 15 percent.

Here’s what to expect:

• The new scoring system will go easier on consumers with one credit misstep and harder on those with multiple credit dings.
   
• Authorized Users (AUs) are people with credit cards who are approved to make purchases but are not responsible for paying the balances. (A student authorized to use a parent’s credit card is an example of an AU.) Under current FICO scoring, the history of the credit card performance is reported on the AU’s credit record, thus influencing the score. But with FICO ’08, credit cards for which people have AU status will no longer influence their credit score. Therefore, AUs might consider changing their status on existing credit accounts from AU to Joint, or opening an account of their own to build their credit score.
   
• High credit balances will deduct more points under the new system. More than ever, it’s important to lower balances on revolving credit accounts.
   
• The new system will look favorably on consumers with various types of debt. For example, people with revolving and installment credit will fare better than those with nothing but revolving credit card debt.
   
• FICO scoring will still range from 300 to 850. Customers can get a free credit report at annualcreditreport.com.

For more information, visit fairisaac.com.

I have just returned from the International Council of Shopping Centers (ICSC) Global Retail Real Estate conference held this week in Las Vegas.  This is a gathering of an estimated 70,000 retail real estate professionals from around the globe.  My goal at this conference was to attempt to persuade a big box retailer and family sit down resturaunt to at least entertain the idea of coming to 29 Palms. 

Armed with my list of available commerical properties, my Buxton study, and the CB Richard Ellis report on the revitilization of downtown along with traffic studies, demographics, and base information I set out.  Although everyone I spoke with was friendly and seemed interested (I think they were being polite), one hurdle continued to stand in my way.  Almost to a company, the minimum population within a given driving radius (usually 2-5 miles) was 50,000 people. 

The population of 29 Palms according to the city's website as of 1 Jan 06 was 27,498 (over half way there). 

What are our city leaders, armed with this knowledge, doing to entice retail and restuarants?  The city council is currently working on a revision/review of the general plan.  Are they looking for ways to increase general commercial zoning in areas where large retail make sense?  Are they looking for ways to use the monies in the Redevelopment Agencies coffers to entice retail?  No, they are attempting to reduce the buildout population of 29 Palms.  Some would even have the maximum population buildout less than the magic 50,000 population. 

 29 Palms is at a crossroads, we can either try to attract and welcome retail or we can continue to shop in Yucca Valley and points beyond. 

In recent weeks I have read reports, articles, and studies that suggest the market is rebounding, no wait...the market is at the bottom, hold on...the market will continue to decline...foreclosures are subsiding or are they increasing.  Loan regulations will be loosening up...loan regulations will continue to tighten.  Sorry if I ramble, but it seems everything you read or hear contradicts the last item you heard or read. 

This is how I see it from the trenches, as someone who is out there every day dealing with buyers, sellers, banks, short sales, developers, and retailers.  There is interest in our market fueled by the Marine Corps Base, the Nuwu Casino, and the hope of troop draw downs in Iraq.  While we are not seeing the prices of the late 90's, we are realizing prices much lower than the "boom" period of 2005.  Bottom line is, if you need to sell and have equity in your home, you can receive a fair price if you are patient.  If you are buying, you can find a deal if you are patient as well.  It also helps if you have some money to invest and don't mind a few repairs.