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Rolling hills, ancient oaks, and great views define the eastern slopes of the Alexander Valley which runs from Cloverdale in the north to Healdsburg in the south. This long stretch of land follows the Russian River which has blessed the valley floor with rich, alluvial soils that produce wonderful grapes. Cabernet Sauvignon and Chardonnay predominate, but you can plant most varietals here with good results.

We have just listed two estate site properties near the north end of the valley close to Asti. The two separate, but contiguous parcels would be great for small vineyards or horses.

The land is rolling hills with the front of the bigger property beginning right on River Road near the summer crossing of the Russian River at Asti. The land rises gradually through terrain of trees and meadows. There is a knoll crossed by the invisible line that divided two land grant Ranchos.

That knoll is where the natural home sites area and where the two properties are separated. The smaller property dips down the back of the knoll and then climbs again to a high point at the back of the property. I took a screen shot with Google Earth to show the approximate property lines superimposed on the land.

This would be a wonderful estate site for someone who wants to build a family compound. There are two separate parcels, each of which could have an additional guest unit.

This was a stellar day. You know how sometimes the light is just right and the temperature mellow warm, but not hot. Add to that the wonderful smells filling the air as the growing season kicks into high gear with the warming and lengthening days. I stopped along Old Redwood Highway near Wikiup to grab some pictures of early flowering cherries and plums. The air under these trees was dense with scent…almost intoxicating in its power. The masses of flowers on the trees almost defy description. These are the street trees rather than the great fruit bearing cherries, so the whole breeding goal has been for intense color and density of the flowers. These mature specimens illustrate their success.

A close up of a random branch shows flowers packed as tightly as they will fit. The effect of massed flowers which is apparent at a distance becomes even more intense close up when each flower’s fragrance is added to the next.

The pink blossoms surround darker centers with pistils and stamens colorfully projecting an inch or more from the center.

The whole effect is magically powerful as the eye is grabbed, the nose is sweetly invaded, and the air itself seems to vibrate with the intensity of the display. It’s no wonder bees, hummingbirds, and humans all flock to these trees in this season. Absolutely irresistible.

Mix heavy rain and narrow river channels and you’re bound to get floods. I’ve had one home and one business flood, so high ground looks good to me, even in dry times. When floods are rumored, it helps to have good information about projected river levels. Even the best estimates are often wrong, but it’s smart to keep your eye on accurate information.
This web page from the California Department of Water Resources combines both rainfall and flood stage information for Guerneville, the most likely flood area in Sonoma County. Here’s an example.

The left side of the chart is five days of historical information, with rainfall on top and flood stage on the bottom. The right side of the chart contains five days of predictions for both rainfall and flood stage. The nearer in time the more accurate the predictions. Those are shown in green. The state also attempts to look deeper into the future, but they call it guidance rather than predictions, since they don’t have enough information to make a strong prediction. That information is in magenta and is worth watching, particularly when rains are heavy and flood rumors start to spread. The image is a link to the actual state information that is updated frequently.

The best advice I can give potential flood victims is to keep your pictures and important documents where you can grab them fast and keep them safe. Furnitures, clothes, applicances, etc. can be replaced, but your wedding pictures, birth certificates, etc. can be impossible to recover. Next best advice…get a motel room in Santa Rosa and wait the flood out with electricity, working toilets, showers, and hot food.

Not too far from the energy of the Airport Business Park and Shiloh’s Wal Mart and Home Depot is Faught Road. It’s only a couple of miles long, but it’s miles away in space and time from the urbanizing 101 corridor. This classic farm house on six acres is architecturally pleasing on many levels. The three dormer roof lines echo the larger gable and break up the roof plane. The wrap around porch makes a symmetrical division of the house height and creates blocks of space that comes close to fitting into the “golden ratio” that has always been a pleasing shape. The house itself from the peak of the gable to the width of the entire structure is also close to the golden ratio.

The photograph to the right uses color masks to show the way the house’s design is a series of golden ratios. The use of these proportions is probably an unconscious element on the architect’s part; just good design that pleases the eye.

REO is the acronym for Real Estate Owned. Owned by banks, insurance companies, mortgage companies, and anyone else who ends up holding the deed when foreclosures are finished and there were no bidders (holders of ten or more of these properties are listed in the box on the left). These are the reluctant owners who thought they were buying guaranteed cash flow, but instead ended up with real property that most likely is worth less than the original loan amount. How we as a community of buyers, sellers, and brokers end up valuing and moving these homes into the hands of resident buyers and rent-minded investors is likely to be one of the most interesting stories in real estate this year.

First, the number of REO properties is small in absolute terms, but as of the end of the year, nearly 400 homes in Sonoma County fell into that category. Less than half of that number were actively on the market, so there is a growing reserve of over hundreds of REO homes that aren’t listed on the MLS yet. The sellers are motivated to get these properties off the books, but they don’t want to flood the market and depress prices any further. Still, the need to dispose of the homes will be a strong incentive for the REO holders to accept qualified offers and to avoid piling up even more inventory as the foreclosure boom continues.

Some properties are on the market now that I would classify as excellent values. Some are inexpensive enough to create a positive cash flow for investors; others are estate type properties at prices that will look like great deals in a few years. I can produce a list of the MLS-listed, REO single family homes available for download if you would like to see what’s on the market. I would also be happy to produce a list about REO properties in specific areas.

In the last six months 60 REO single family homeshave been sold. Selling prices ranged from $195,000 to over $1,000,000. Depending on location, the prices they are selling for are anywhere from 15% to 30% below the market peak prices of 2005. Almost nowhere in the county is immune from foreclosures, so these sales happened in south west Santa Rosa and the Russian River, but also in Healdsburg, Sonoma, Sebastopol, and Fountaingrove.

The other factor to consider along with REO’s in Sonoma County is short sales. These are sales for less than is owed on the property and the banks and other mortgage holders end up negotiating how much money they are willing to lose. Their alternative, of course, is to foreclose on the property and take their chances that either wiping out a second mortgage or a HELOC (Home Equity Line of Credit) might leave them in a position to recover their investment. There are more than 500 short sale listings right now, and it’s fair to say that all of them are highly motivated sellers. Add to this the even more motivated sellers of the 41 homes listed on the MLS that are in foreclosure or have a notice of default filed, and it makes this is an interesting time to be a buyer.

Arnie, baby, tell me it ain’t true! Newspaper reports indicate the proposed state budget plans to close Austin Creek Reserve and Armstrong Woods along with 46 other California parks. In Sonoma County the Petaluma Adobe park would also be closed. It’s clear that we have budget woes in the state, but there have to be better solutions than closing pubic facilities beloved by the public.

The silly thing about “saving money” by closing parks is that the towns and surrounding businesses will be taking in less sales tax for the state as visitors who would have stopped and enjoyed the parks  decide to spend their vacations doing something else. They may spend their money here, or they might go somewhere else. The hotels and motels will also be bringing in less Transient Occupancy Tax which hits the county hard.

This blog isn’t the right forum for helping balance the state budget, but let me put one often discussed alternative out there for people to think about. Many states charge sales tax on professional and craft services the same as they do for products.  If we collected sales tax on your accountant, lawyer, and plumber we could balance the budget while lowering the overall sales tax rate for everything else.  You could even charge tax on the work of lowly bloggers and web site designers to bring in a couple of bucks. I just hate to see Arnold take his sword to the state budget without the citizenry giving him our two cents…or 8.5 cents worth.

I’ve been blessed with a wife, children, brothers and sisters, parents, coworkers, and a great boss. I have invested a great deal of quality time during the last month hanging out, cooking, eating, dawdling, dog-walking, and generally having a relaxing holiday season. Regretfully, but with a cheerful spirit, I resolve to update at least three times a week and pick up the thread where I left off last month.

California’s growth rhythm is always a mystery to newcomers from four season climates. In Sonoma County we already see the first stirring of new life even as the leaves linger on the trees and Halloween, Thanksgiving, and Christmas bear down on us. These early rains have triggered the grasses and beneath our still golden hills the new season is being born.

I was at spectacular Applewood Inn a few days ago, talking with innkeeper Jimmy Caron as the gentle rain was falling in the courtyard. A passing guest heard us admiring the summer-ending rain and reminded us that tourists aren’t quite as happy with early season rainfall as the locals. His party had pored over weather predictions for months, hoping for a beautiful and dry tour of the wine country at the end of the harvest. I was disappointed for him since I love showing off the beauty of the county to our valued visitors. On the other hand, he’s going to get the clean skies, fresh earthy smells, and sparkling crispness that isn’t possible without a cleansing rain.

I passed a Japanese maple after the rain. Many still-green leaves, already loosening for their personal fall, had taken a beating from a brief burst of pelting rain. They joined their yellowing comrades on the ground around a brass watering frog. For me, these first rains and emerging grass shoots mark the start of the new year even before the old year is ushered out the door.

I had a chance to visit a terrific ten acre property on Eastside Road near Forestville today. You’re never quite sure what you’re going to find on a place you can’t see from the road, but I have been driving past this secluded driveway for years and have never had a chance to see the house or gardens. First, let me say that you aren’t going to see it here either. Instead, I’m going to tease you with a handful of lovely details and encourage you to visit the “official” web site.

Small details matter to me. This place is filled with deft touches that indicate a deep affection for doing things right. The picture you’re looking at might be hard to make out, so feel free to click on it to see the larger view. What you are seeing is a gently curved piece of wood that serves as a bridge at the pond. Wood has the potential to be very slippery when it’s wet, and the builder has taken the time to carefully insert metal bumps to provide traction. It’s subtle and almost invisible when you’re walking, but it represents a care that is echoed elsewhere on the property.

At the same bridge, there is a lovely railing detail with a curved copper hand cleanly attached to the post. The two side rails are close enough to provide a secure feeling when crossing the bridge and are big enough to feel comfortable in the hand and look correct in the scale of the garden and pond. Again, just the right touch of design sense, choice of materials, and execution to be a fine detail.

The entry courtyard, home of the cactus in the first picture, is also graced with nice details. In addition to the diamond plate cactus, there’s a multi-tiered fountain, and a second small piece of metal art to the left of the gate and a host of fruit trees and flowers. The gate itself has two wooden swinging doors and a bell in the opening in the door that has a melodious gong sound to announce visitors. The whole thing is topped with an exuberant potato vine in a pretty arch. Details make the difference on this Sonoma County Russian River valley parcel.

Sometimes good opportunities are right in front of you and you just can’t see them. That’s what I was thinking after I got done touring the Foss Creek Villas with Ed Buckner last week. I am usually focused on Healdsburg real estate whether it’s vineyard properties or country land or looking at Victorians on Matheson and Tucker. I’ll also check out anything near downtown Healdsburg since walking distance to the plaza is always a great selling point. Somehow in the midst of all that looking, the fact that Healdsburg has some affordable condos in walking distance to downtown just hadn’t registered.

I’ve looked at the condos at the Grove (just across the street), and they’re very nicely done and brand new, but with prices starting at around $615,000 they’re not a weekend getaway place for everyone. I still think they represent an excellent value, but after seeing what $399,000 to $449,000 can buy at Foss Creek Villas I know where I would buy my Healdsburg getaway place. The $300,000 you save buys an awful lot of great dinners at Cyrus and Dry Creek Kitchen, and that’s one of the main reasons you want to spend your spare time in Healdsburg anyway.

The two bedroom, two bath Foss Creek Villas have been totally redone with new interiors, great landscaping, and garages for the first 25 buyers. The kitchens are high quality with granite counter tops and stainless steel appliances and the finishes throughout are very nice quality. You can find a lot more detail and the full sales pitch at the condo web site, but I wanted to mention the project here just to let my readers know that you can still find excellent real estate values in Healdsburg. I don’t know of any place along the 101 corridor from Sonoma County to San Jose where you can be so close to so many good restaurants for well under $500,000. For the real bargain hunters, Ed told me that two units are being sold for only $399,000.

Of course, these places aren’t just for weekend visitors. This is a great location for anyone working downtown, in any of the Foss Circle business condos, or at the Parkpoint Health Club which is just across the street. It’s hard to get more convenient than this.

As a last word, I think the landscaping people have done a great job. Next time you’re in the area, stop by for a look and say hello to Ed for me.