It wasn’t always so.  LACMA, as it is popularly known today around the world, has until recently been referred to as the “step sister” of museums — a nice, local museum where the family could spend a few hours wandering the exhibits, have lunch, and see the nearby La Brea Tar Pits.  But things have dramatically changed.  While LACMA is the largest encyclopedic museum west of Chicago and attracts over 1 million visitors annually, it has literally taken the art and museum world by storm — in both deeds, exhibits, and quality of its collections and architecture.  

Originally LACMA was part of the Los Angeles Museum of History, Science and Art, and founded over 102 years ago in Exposition Park.  In 1965, the Museum moved to its new Wilshire Boulevard complex as an independent, art-focused institution — the largest new museum to be built in the United States after the National Gallery of Art.  

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World -class art…world-class architecture

Through multi-million dollar donations from many of the community’s leading philanthropists such as Robert O. Anderson, Eli and Edythe Broad, Bernard and Edith Lewin, and Lynda and Stewart Resnick, LACMA has grown its exhibition space to now include one of the world’s most impressive line-ups of collections in modern and contemporary art, American and Latin American art, and Asian art.  Its permanent collection continues to expand with additions of world-renown sculptures, paintings, tapestries, and most recently, LACMA made world news with the installation of the “Levitated Mass” by artist Michael Helzer — a 340-ton boulder, measuring 21.5 feet wide and 21.5 feet in height, which came to the museum, criss-crossing Southern California from its Riverside County quarry to find its final destination atop a 456-foot-long trench that one can walk under.  

It is not the first most eye- and media-catching event ever held at LACMA.  Perhaps the most famous of its exhibition was the highly controversial “Back Seat Dodge ’38″ sculpture (1964) by Edward Kienholz, who portrayed a couple engaging in sexual activity in the back seat of a truncated 1938 Dodge automobile chassis.   An interesting side note:  The museum agreed to keep the door closed, and it could only be opened by a museum patron who was over 18. This exhibit has been one of many record setting exhibits that has followed through the years.   

With the leadership of its forward-looking Directors over the past decade along with a very influential Board, and the combined generosity of a ‘Who’s Who Donor” list, LACMA is a “must-see” attraction today.  The incredible permanent and touring exhibits, the character and feel of the museum grounds and iconic new pavilions are truly world class.  The museum has shown its forward-looking vision by selecting some of the world’s most renowned architects to create and design pavilions worthy of the art they hold.  Truly, LACMA is the place to spend some quality time. During the summer months, they have wonderful jazz concerts every week.

Of note, the Docent council just celebrated its 50th anniversary, and my mother was just honored for serving as a docent since 1968. Congratulations, Mom!

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La Brea Tar Pits — it’s real.  It’s not animatronics

No, this is not on the Jungle Cruise….it’s not a new attraction from Universal Studios or Disney…it’s Mother Nature’s Real Thing — the La Brea Tar Pits.  This is the “home” to a few unfortunate souls (animals of all shapes, sizes) who wandered centuries ago into these unsuspecting pits of what is called asphaltum or heavy oil.  These pits consist of crude oil that seep up along the 6th Street Fault from the Salt Lake Oil Field, which underlies much of the Fairfax District north of Hancock Park.  But these pits have been forming for tens of thousands of years, and from time to time, asphalt would form a deposit thick enough to trap animals and when they entered the pits they were unable to free themselves.

The Tar Pits exhibits, which is adjacent to LACMA, are being excavated and studied — and has produced dramatic large mammal bones that are remains of saber-toothed cat, dire wolves, bison, horses, giant ground sloth, turtles, snakes, clams, fish, gophers and an American lion.  The park is known for producing myriad mammal fossils dating from the last glacial period…..and you can witness archeologists working at the Page Museum where the specimens are displayed.  George C. Page was a well-known Los Angeles philanthropist who felt from his early teen years that there should be an exhibit/museum and research center located next to the pits…and he contributed the funds to house the exhibits as it is today.                                          

George C. Page Museum exhibit

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Malibu is market on the rise….and it’s about time!

Malib, the fabled beachside community on the edge of the Pacific, is like other Westside communities:  it reflects the same oddities and challenges of the recessionary-market we’ve been living with since the late 2007s.  Malibu, like many other communities in West Los Angeles, has suffered in the residential market as well.  And regardless of how ‘famous’ it might be, fame can’t alone move real estate.  So it was good news to hear that Malibu is on the rise — real estate is moving at last. Coldwell Banker provides us with weekly updates on various Westside markets — and Malibu is one of my communities that I focus on.  
So, here’s the good news:  From the manager of our CB Malibu office as of 5 May 2012, the office is “extremely busy with offers and closings, especially on large high-end sales, on and off the beach.  Escrow closed on three beach houses last week in the $5+ million range, and one house off the beach went for over $10 million.”  In April, it was reported that sales are up 28.44%, and this doesn’t count several sales that closed after the report was generated.  

Unlike many other areas, Malibu has had such a large amount of unsold inventory where prices were not in a competitive range.  The report indicates that inventory numbers are coming down without having a panic about needing inventory.  That being said, most of the many beach houses that were sitting on the market over the last two years have gone into escrow or have sold….so, according to our CB manager, that’s great news, and “we’ll be needing good-quality beach inventory soon.”  Did you know that there are at least 12 wineries in Malibu?  

Sales volume continues ahead of 2011 pace….a far cry from a year ago

I wasn’t particularly impressed that our sales volume for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — was only $24 million ahead of 2011 figures — or $624 million for this year vs. $600 million for last year.  On the face of it, that’s only a 4% increase over the previous year, but then I went back to the 15 May 2011 SchifferLine and discovered that for last year at this time, we were more than 10% behind the previous 2010 performance in sales volume.  So while we have slowed down a bit in our trending of upward sales volumes, we’re significantly ahead of where we were last year — demonstrating our market is still relatively strong.  

What we have seen this past April, for example, shows that Beverly Hills is having a good  year –.  Average sales price year to date is $5.223,090  vs. $7.031,266 last year .In April ’11 there were 10 sales over $3,000,000 including one at 10,675, another at 12,000,000,  another at 12,500, and another at 15,700 vs. 9 this past month, but the highest sale was $9,150.   In Beverly Hills Post Office the average sales price for April ’11 was $3,251,363 vs. $2,582,564 again with 4 sales over $3,000,000 with the highest sale at $11,725,000 vs. 6 over $3,000,0000 this year and the highest sale came in at 9.1. In Bel Air, the average sales price was $5,101,271 in April ’11 vs. $4,638,446 in ’12.  The big difference was obviously impacted by the one sale in April ’11 of a  
whopping $40,000,000 which was among the 7 sales over $3,000,000 vs. 4 in April of this year with the highest sale at $25,500,000. In Brentwood, in April ’11, the average sales price was $3,131,954 vs. $3,035,625.  In April ’11 there were 10 sales over $3,000,000 with the highest one coming in at $8.2 vs. 10 in April ’12  with the highest sale at $12,000,000.     I have always regarded median sales prices on a year-to-date basis as the only relative reliable # to gauge our market performance.

A tale of two markets……pricing is everything in today’s world

How you price your home for sale can either make you a hero or a bum.  It’s that simple.  In today’s real estate world, there are two markets — #1 — if the home is appropriately priced for what it is; and #2 — if the home is improperly priced.  These homes (#2) “linger” and sell for much less had they been properly priced in the first place.

While the economy and the real estate market ebbs and flows, pricing is as always everything — and I see the effects of how improperly priced homes fare on the market:  The picture is not that pretty….  

Let me give you a couple of examples:  A property recently came on the market near the Brentwood Polo Fields — it was a nice little house, in need of repairs that was a potential short sale, but extremely well priced, and it generated 35 offers!  While it hasn’t closed escrow, and I cannot give you the final sale price, we do know that the final sale price was over the asking price and it sold within days of coming on the market, and given the speculation of what the final sales price is will most likely not be a short sale.  And another example is a listing I took in January in Mountaingate — a lovely home, good condition,  perhaps some updating was needed (but not much), a beautiful city views; 3 bedrooms, 3 1/2 baths,  but has some freeway noise.  We had a fair amount of showings….but we realized that we needed to adjust the price — and we lowered the price by $100,000.  Within days, we had two offers and we just opened escrow with one of them.  

The point is this:  What is clear is that we are short on inventory on the Westside — the buyers are out there, and while sales volumes are still ahead of 2011, we’re not satisfied — and the biggest concern we have now is that we cannot provide our clients with the level of quality inventory and choices that we have seen in the “old boon times” of four and five years ago.  Warning:  Do you research….and hire an experienced real estate agent who knows the neighborhood and can guide you through this competitive maze.

What is quality inventory?  Positive vs. negative energy

I have talked about ‘quality inventory’ a great deal in the past, because, I suppose, that is the category of homes most
buyers are seeking.  Quality inventory means that it is 1) well-priced for where and what it is; and 2) condition is prime in terms of look, feel, and quality that comes through in all facets of the home’s interior and exterior.  It’s bright, sunny, and inviting — quality is felt and seen wherever you are inside and outside the home.  The home has its own “positive energy”.

Negative energy is easy to feel and see:  Buyers will walk into a property with their “cash-register mentality”.  As a general rule, buyers will look for deficiencies where they can knock down the price — carpets are worn or dirty; wood floors are worn – needing to be fixed or replaced; counters are worn or damaged; painting inadequate; appliances are old; kitchens and bathrooms need updating; and the yard and landscaping are below par.  So unless the property is being marketed as a “fixer” — then it’s a whole different kettle of fish.  This means that if something would cost $10,000 to replace — the buyers are going to factor in a $20,000 expense — to give them that “edge” or cushion.  And after inspecting a house with a lot of negative energy, the $$ add up quickly.  

So, seller beware!  Buyers are sophisticated and demanding.  They don’t like being on the losing end. .  In these short-inventory markets, there are a lot of competitors out there to snap up the best homes, quickly and aggressively.

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Connecting Kids With Nature

Some of the fondest memories of childhood are of my grand-father and I fishing. Just him and I a couple of fishing rods and the deep blue sea.   We used to go every week on the commercial boats off of Santa Monica Pier (I hated cleaning the fish we caught!) If we didn’t catch a fish, it wasn’t a problem. Those trips were adventures for me and I believe helped cultivate my awe of nature.

They are also among my earliest memories of being concerned about pollution, in the form of trash that would be along the ocean and beaches. It’s a shame that so many children today don’t get these learning opportunities and most of their nature education occurs via a screen.
TV documentaries can be great thing for many age groups – for example, Sir David Attenborough’s various series over the last few decades where he lets the animals and stunning camera work do most of the talking. .For children too young to venture out, TV can certainly be a positive influence environmentally speaking.
Unfortunately, nature documentaries and such these days are too often focused on computer animations and the “whoa!” factor – more fluff than substance. Regardless of programming quality; the best way to learn about nature is hands-on; whether it’s in a local park, or out the back of beyond.
It’s more than just allowing kids to explore the great outdoors though – it’s how it’s done that counts too. While getting kids to properly connect with nature doesn’t mean they should be forced to undertake a vow of silence, don burlap sacks and sleep under the stars using rocks as pillows, it shouldn’t involve excessive noise and destruction, nor be heavily dependent on technology. It should be an engaging experience, one that forces the senses and body to be used in a way they often aren’t in our lives.
If the next generation only sees nature as something cool on a very fleeting and shallow level; as something easily trumped
 by or viewed via a noisy internal combustion engine or gadgets; then the planet is in even bigger trouble than we realize.

 Happy May Day!

Mariachis, margaritas….America celebrates Cinco de Mayo and the Battle of Puebla

The perception many Americans have is that we are celebrating Mexico’s independence on May 5.   You see we Americans love to celebrate other country’s holidays too such as St. Patrick’s Day, Chinese New Year, or the weeks-long Octoberfest.  But Cinco de Mayo is not the celebration of Mexico’s Independence Day as many believe (actually, it is September 16).  What Cinco de Mayo commemorates is Mexico’s army surprising victory over the French on May 5, 1862, after the French landed a large force on the shores of Veracruz in the State of Puebla in late 1861.  France’s purpose for the invasion was to conquer Mexico and make it a Second Empire.  They also wanted to collect monies owed them by the Mexican government.  At the time, this victory symbolized unity and pride for what seemed like a “Mexican David defeating a French Goliath”.  And while the French were vanquished at this battle, they returned with 30,000 troops a year later and deposed the Mexican army, capturing Mexico City, and established Emperor Maximilian as ruler of Mexico, which only lasted three years.  Still, the Battle of Puebla, as it is called, remains a historic victory for our south-of-the-border friends, and we, too, take pride in celebrating with our friends from Mexico on Cinco de Mayo.

Olvera Street — the centerpiece of Cinco de Mayo in historic downtown Los Angeles

If you’ve never been to Mexico, it’s not far away.  I’ve been coming to Olvera Street since my childhood when my parents brought me to this very historic part of old Los Angeles.  Olvera Street started out as a short lane called Wine Street. In 1877 the street was extended and its name changed to Olvera Street in honor of Agustin Olvera, who owned a home at the end of the street across from the Plaza. He was the first county judge of Los Angeles. Several historic buildings line the street, including the Avila Adobe, built around 1818 by former mayor Francisco Avila, the Pelanconi House, oldest brick house in the city, dating from 1855, and the Sepulveda House, built in 1887 as an Eastlake Victorian business and residential building.

When socialite Christine Sterling walked through the Plaza and Olvera Street in 1926 she was shocked by the dilapidated condition of the oldest part of the city, and started a campaign to save it.   Mrs. Sterling envisioned a colorful Mexican marketplace and cultural center. With funding provided by six influential men and publicity from the Los Angeles Times, she started a corporation to revitalize Olvera Street.

One well-known business that moved to Olvera Street in 1930 was La Golondrina Cafe, the first restaurant in the city to serve authentic Mexican food With the City’s roots firmly established by early settlers from Mexico in the late 1700s and early 1800s, Olvera Street’s cobblestone street and buildings remain much the same as they did over two centuries ago.  Today, some 3.5 million visitors come to the area to dine in authentic, old Mexican restaurants and shop amongst the many vendors with stores and carts in this lively slice of old Mexico.

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The birth of the California-Mexican Cook Book.    Olvera Street was also the inspiration for a famous lecturer and author, Bertha Haffner-Ginger, who discovered Mexican food when she visited Olvera Street area in the early 1900s.  Having just started as a writer for the Los Angeles Times in 1913, Haffner-Ginger took a stroll through nearby “old Los Angeles” and sampled some of the area’s delicious foods, and she was hooked.  Lecturing and writing about “domestic harmony” and focusing on unique, primitive foods, Haffner-Ginger published her 96-page “California Mexican-Spanish Cook Book in 1914, which included a glossary of food terms and the first documented recipe and photo for tacos in the United States.

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Whom do you trust?  You find “trust” in the trenches…..

Like you, I find it frustrating to read about these real estate articles that come streaming from everywhere.  The real estate market is up, down.  The market is bottoming out.  Los Angeles home prices are up by this percentage or that percentage.  And after all is said and done, I look out the window at my home and think?  “What are they talking about”?

Certainly, I have respect for many national reports — because they are reporting on a “national situation”, not just what is happening in Bel-Air, or Brentwood, or Beverly Hills — the communities I specifically report on.  These are national and regional statistics that they are batting about.  And as a reader, you only see the headlines and perhaps read the stories that carry the sweeping overview of our city, region, or state.  But in the real estate trenches — where I work every day — I see a more intimate, more relevant picture of what is really happening in your neighborhood.

Yes, all of these reports affect the national real estate state of mind, and it does impact attitudes of buyers and sellers.  So when I sit on an open house and see the enthusiasm, the intensity and recently, the competition for really great listings, I see a lot of energy out there.

Statistics don’t tell the whole story — and while I rely to some degree on the Multiple Listing Service, I have grown skeptical of MLS monthly stats and take with a dose of reality any statistics that cover Los Angeles.  What counts is what is happening in your neighborhood, in your community, on your street; these stories do not cover your community do they?

For example, we have seen the local MLS allowing agents to double post a sale which really screws up the median sales prices and sales volumes. I have stated enumerable times that the median sales prices for your community are the best reflection of the ‘trend’ in evaluating how your community is doing with home prices.  However, that’s really too broad too.  For months I have been filtering out all of the double-posted sales to give you the most accurate information I can in the SchifferLine.

Being in the trenches every day gives one the “birds eye view “that reflects how buyers and sellers truly feel.  It’s one thing to read about prices in the newspaper, it’s another to sit before a seller and talk about how much they want for their home….or to negotiate for a buyer what they should pay for a home.  The intimacy and sensitivities of buyers and sellers experience is the “true reality”:  This is what I see in the trenches every day.

What you see from the trenches is the true reality of the market.  Flying at 30,000 feet cannot give you the pulse of the market down on the ground.  We live in a magnificent market — the Westside of Los Angeles is truly unique, and so when you see these stories, please understand that you are getting only a partial picture.

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And, the $64,000,000 question:  Are we bottoming out?

I can only speak for the trenches I work in  which is primarily West Los Angeles, although I just referred a client to an agent in Dallas Texas and another one in Hyde Park in Illinois.  I would say to any of this current national talk about bottoming out: “It’s too early to tell.”  From your standpoint as a seller or a buyer, national trends don’t count much when you are negotiating to sell or purchase a home: It’s the deal in front of you — what’s on the table?  Yes, we are definitely seeing an uptick in sales volume over 2011 as I reported in the SchifferLine.  But sales volume is not the most important story — it’s what homes are selling for — the price one is willing to accept and offer.  Let’s wait a few months to see what is happening in our communities — not what is happening in Colorado, New York, or Florida.  I will keep you posted on how the trenches are doing, and I must admit we have pretty nice trenches in Bel-Air, Brentwood and Beverly Hills!

Challenges on the home front.

The biggest challenge I see for home buyers is the lack of quality inventory in our market.  We are seeing very aggressive buyers who are anxious to close a deal.  Many buyers have come late into the market, selected their dream home, and discovered that they’re too late — multiple offers have already been made and the competition is intense.   Many homes are sold before they even hit the market, because our Westside communities remain so attractive and popular, not only with local buyers but with foreigners as well who know they can count on making a sound real estate investment.

Another issue is getting an accurate read on “price”  — either from the buyer’s or seller’s perspective.  Just how valuable is this home?  That’s the question we real estate agents deal with constantly — trying to set a realistic price that is fair to both the seller and the buyer.  One of the problems I have encountered is that the local statistics you might see on some of the online price evaluation sites just don’t take into consideration all of the factors of a home’s true value.  So where do you get the price evaluation?  I always state that the best person to ask is real estate professional, like me.  What do we use?  Simple:  We use comps: Pure and simple!  Comparable final home sales data are what is real.  They tell the story.  And it doesn’t make any difference if a seller believes his home is worth $2, 000,000 when the market/comps clearly show that the home should be priced at $1,750,000.  The longer a home sits on the market, the lower the price is when it is sold.  That’s a proven fact. I am always getting phone calls from appraisers asking for help in making up with a number that works and is fair.

If you would like a no-obligation review of your home’s value, please contact me, at 310-442-1384…..day or night.

Be A Rainmaker…..an inspiration

There’s a group of people on this Earth who have made a bold decision: They have decided to take on a career that promises them no paycheck on a daily basis until they deliver the goods. It delivers an abundance of challenges and problems to solve along the way in order to earn that paycheck.

It’s a job that is built entirely on competence and character mixed with the ability to create rapport, while maintaining ethics and truth even when it costs you. It’s advanced entrepreneurship…you have to want it because it’s going to put up a fight.  It says “You want it? Come and take it if you can, ’cause we ain’t giving it away here!”  Well, it sure feels that way doesn’t it?

This is a group who wakes up every morning with fire in their belly….creativity in their brain and a passion in their heart for the possibilities the day holds.  For what they can accomplish and build, they never, ever, ever quit.

The time they offer you is, oh, so precious, because it’s time not spent with their families, with their hobbies nor with their personal dreams. They offer you that precious time with the generosity of a mother and will defend how it’s spent with the watchful eye of a father. They are happy to be in service to you, to help you reach your goals and defend your right to pursue them. They are having fun, serving people, making money.
They are your Realtor, they are your Lender; they are The Salesmen or Saleswomen and they are in the most honorable profession on this planet; because nothing happens on this planet, until a sale happens: no economy, no employment, no wealth happens without sales.

This is my mantra.. to be of service to my clients and to have fun  and enjoy my life along the way.

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What is going on in my life you ask?

My wonderful Mother is celebrating her 90th birthday this month, so we are all going to Seattle for a weekend long party to celebrate her!  We are also planning a family cruise later this year when we can coordinate our busy schedules. She is fabulous, still lives alone, drives and I consider her as one of the many gifts I have in my life!!!

As for my business, I am very, very busy and enjoying every bit of it… I currently have a number of listings in Mountaingate, a lease listing in Bel Air Crest, and am negotiating a number of purchase agreements for a various clients in different areas, including Brentwood, and Westwood.

I also want to thank all of you who attended our Emergency Preparedness Fair in Bel Air Crest last weekend.  It was most successful and very informative for everyone who attended.

The difficult job for a real estate agent today is to create the “meeting of the minds” between the buyers and sellers. With good properties, properly priced — as I have been saying — there is a plethora of ready, willing and able buyers out there.

Buyers’ – Definitely want to take advantage of the lower prices and interest rates; No always willing to jump in and make an offer.. Seem to want to wait, but also know that the “bell is ringing” and that the mood is shifting.

Sellers’ – Very defensive about the value of their home.  Know the value has probably gone down or what they would like for it to be, but that doesn’t apply to their house, sometimes just because it is their house.

Two weeks ago, I was working with a young couple who were looking for their first home together in Pacific Palisades, Santa Monica and Brentwood.  We found a beautiful home that everyone loved, including his parents.  The home had just had come on the market, and we were there for the first open house.  It was a popular open house — potential buyers were streaming in and out of the house while we were there and we all assumed it would sell quickly.  Our plan was to scoop it up before anyone else did.  We made an offer but it was substantially lower than the listing price.  We negotiated for two weeks and but we couldn’t come up with a price that everyone agreed on.  In the interim, some of the other houses we had seen when we first started this house-hunting journey had already been sold, some with multiple offers and all were in the same basic price range.  So the question my clients had, “if this house is so great, why are we the only ones making an offer”?  We ended up walking away, as we could not agree on the sellers final counter offer price. It is now on the market at that reduced price, and now it should sell.

So, what’s the answer here?  Price!  Even though it was a great house, the initial price was not realistic because it would have sold immediately.  It didn’t.

Another example of how these differences impact the sale of house:  Just last week, there were  11 offers on a home in Brentwood, three of which were all cash, and it sold over asking price. With another house in Pacific Palisades which had been on the market for a month, the sellers had gotten a few offers way under their asking price, and then they got three offers over asking price last week. It can be very frustrating for buyers in that they have all heard that it is a buyer’s market filled with anxious desperate sellers, and then they encounter the multiple offer scenario and they really don’t know what to do or think about this. What does this mean? It partially means that one of the most important jobs a good real estate agent has is to work with their both buyers and sellers to manage their expectations. Many buyers, who have been in the position of having made an offer on a property and lost it in a multiple offers scenario become gun shy and walk away — or they go with gusto and go way over what they might have initially paid because they just want to get a house!

Sellers who have had their homes on the market awhile and not have much activity, on the other hand, wonder: “What’s wrong with my house”? And 99.10% of the time — it’s the price. Their price is just too high! Sellers’ who procrastinate too long and see their price drop, end up losing more money  in the end then if they had started at the “right price” from the get go. My recommendation is to adopt a smart strategy: Take the emotions out of it, and start with a strong, aggressive price, because at the end of the day, you will end up selling the house for more money than had you trailed the price down. The numbers speak for themselves.

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Strong sales volume continues through first three months

Residential sales volume for the four communities I report on all showed sales increases for March 2012 over the same period for 2011.  Total sales volume for these four communities through the first quarter 2012 was $394 million vs. $333 million for 2011,a 18.6% increase.  Notably, Beverly Hills had approximately $123 million in sales for March vs. $115 million in March 2011;
Beverly Hills Post Office had $81 million vs. $60 million March 2011; Bel-Air had $90 million in March 2012 vs. $71 million for 2011 period; and Brentwood had $98 million vs. $85 million.  What is encouraging with these sales volumes is that the increases are spread evenly throughout the four communities – a very healthy sign.

Specifically, looking behind these sales volume numbers, Beverly Hills, had 19 sales in March 2012, nine in ranging in price from $1,100,00 million to $11.8 million  with 10 over $4,000,000, vs. 14 sales in March 2011 (with six ranging in price from $3 million to $9 million).

In Beverly Hills Post Office, there were 11 sales in March 2012 with prices ranging from $1,125,000 – $4,544,000 and only one over $3 million at $4.5 million vs. March 2011, with 12 sales with one at $3.7 million and one at $6.999 million.  Bel-Air had 15 sales with prices ranging from $ 451,180 to $11.5 million and 5 over $4,000,000 vs. eight homes in March 2011, with one sale at $890,000, one at  $7.4 million and one at $21 million.

In Brentwood, there were 18 sales in March 2012, starting at $928,000 and with four ranging in price from $4.8 million to $7 million vs. March 2011, with 13 sales prices starting at $1,100,000 with one at $3.6 million and another at $26 million.

I have avoided referring to the MLS’s #s for median sales prices because of the wide variances we get from their summarized data each month vs. the detail (behind the #s).  Suffice it to say, the volumes and pricing appear to be on a rising trend in these four communities – which is nothing but good news for all of us.

One of the statistics I haven’t shed a lot of light on is “Days On Market” — which compares the statistics for the actual number of days a home is listed to the day it enters escrow. From March 2012 to March 2011, these numbers are skewed by human foibles because even though the Multiple Listing Service has a “fining system” in place, for changes in a transaction status, many agents neglect to post their changes in a the required time frame. Therefore the monthly MLS stats for “days on market” are skewed by misinformation put in the system. That is one of the key factors a buyer looks at when considering an offering price.  We also use that number when setting a listing price.

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Income property…..rising rents are spurring new demand

You may not be interested in buying a new home or selling your current home, but perhaps you want to consider purchasing income property. According to specialists in income property on the Westside, now is the time to make an investment in income property. Prices are down, interest rates are still low – 4 – 5%.  As reported last week in the Los Angeles Times, rental prices are rising….indicating a strong incentive to invest in income property.

Another factor in your decision, of course, is that property values are still down from their highs of 2006 and 2007, you can get positive cash flow which is something we have not seen in a while.

According to the property income specialists who recently spoke at my office sales meeting, the approximate down payment for “A” area units (Beverly Hills, Bel-Air, Brentwood, parts of Venice, Santa Monica) is 50 – 55% down. And for properties in “B” areas it would be approximately 40% down payment – (Culver City, Mar Vista, West Los Angeles, other parts of Venice, and some parts of Los Feliz and Silver Lake).  For example, what would $1,000,000 buy you in income property today… a quality four-plex in a” B’ area.

Retail/office building update: There is also a strong market for retail/office buildings. A lot of owner-users are now buying buildings these days. What is very hot now is the Abbot Kinney retail area in Venice. Abbot Kinney retail and office area attract boutique, one-of-a-kind merchants, which gives the area a unique, local flavor.  And on another front, Target is coming to Westwood – taking over the old Home Expo space — across from Trader Joe’s (in back of Ralph’s).

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Fortune report indicators show housing market on mend…

One of America’s most respected business journals, Fortune Magazine, observed that “if you’re waiting for home prices to go up, then you’re missing signs the troubled housing market has finally turned around.” The article points out that many economists have concluded the US housing market has reached a turning point and is healing. Now, this may sound hard to believe after hearing about the glut of some 3 million homes in the foreclosure pipeline…lagging California employment #s…but these same economists
believe that while home prices have remained depressed compared to the 2006 bubble high, the recent pick-up in sales is what we should pay attention to according to economist Paul Dales at Capital Economics. After all, he stated,” prices tend to be a lagging indicator, and that it should take six months for any improvements to show in the market, if not longer”. “Even if the asking price
is at the right level when the home is first listed, it may still take a few months to find a buyer and another month or so before the contract closes,” Dales stated. “The selling price that is registered at the end of this process, therefore, relates to the market conditions somewhat earlier.”

Fortune points out that the evidence reminds us that perhaps we should change our expectations of what a housing recovery might look like, particularly following a crisis marked by record foreclosures and a financial crisis that sent the economy into one of the deepest recessions in history. “The recovery we have been anticipating is defined more on the rate at which the glut of vacant properties come off the market as opposed to any steady rise in prices, which some think won’t happen for years”, Dales said. Currently, the inventory of unsold homes in the US has dwindled, falling in January to 6.1 month’s worth of supply, the lowest since March 2005, and six months is considered ‘ideal’ for a healthy housing market.

As I have reported in the SchifferLine recently, there is not a lot of quality inventory in the marketplace, and in some cases, it will take several days to a week to get an appointment to see a home that is priced right and has the quality buyers are seeking.

And on the heels of Fortunes’ somewhat optimistic view comes the report last week that nearly a 1 million foreclosures will hit the market in 2012. Fortunately, the majority of these homes will be in the already hard-hit markets of Nevada, Arizona, Central California and Florida. But all of these factors — increased sales, stagnant pricing, foreclosures, and continued tight credit — all play pivotal roles in how our real estate market fares. The good news? We are in one of the most vibrant, most asset-rich areas in the world — Los Angeles’s famous Westside. We’ll fare better than most — so stay tuned

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The SchifferLine will take you on a tour of sites to see in Southern California
As part of my concentration of fun things to do close to home, the SchifferLine will begin pointing out to our readers the unusual, the rare, the different and unique sites of California’s rich heritage and history….our first stop is Pasadena’s famous Huntington Japanese Gardens which was recently opened after its restoration…..

Return of an Icon – Pasadena’s Huntington famous Japanese Gardens

After a year-long closure and a $6.8 million renovation, the historic Japanese Garden opened to the public on April 11, marking its centennial as one of the most beloved and iconic landscapes at The Huntington Library . Completed in 1912, the nine-acre site, with its picture-postcard views of Koi-filled ponds, distinctive moon bridge, and historic Japanese House, has attracted more than 20 million visitors since the institution opened to the public in 1928.

“The Japanese Garden is arguably the most popular spot at The Huntington,” says James Folsom, the Telleen/Jorgensen Director of the Botanical Gardens. “It is a garden that functions on multiple levels at once. It’s a magical place, intimate and inspiring, yet at the same time it teaches us about Japan’s unique landscape traditions, craftsmanship, horticulture, and rituals.”

Several new elements will enhance this “magical place.” Among the new features visitors will see is an authentic ceremonial teahouse, situated on a ridge above the existing Japanese House and set within a traditionally landscaped tea garden. A newly created waterfall cascades down the slope, visually connecting the tea garden to the ponds below.  The teahouse was donated to The Huntington by the Pasadena Buddhist Temple. Built in Kyoto in the 1960s, it made a return trip to Japan for restoration in 2010. Kyoto-based architect and craftsman Yoshiaki Nakamura (whose father built the original structure) oversaw the restoration. The restored teahouse was then shipped back to San Marino and painstakingly reassembled here under the tutelage of Nakamura and other expert craftsmen who had traveled from Kyoto for the project. Its location on a picturesque ridge will provide visitors with a stunning new vantage point from which to admire the vista below.Restoration of the Japanese House, a structure built in Japan around 1904, was led by preservation architect Kelly Sutherlin McLeod. Her research revealed a number of original architectural features that had been covered over or removed during the course of the past century. Elements such as the distinctive curves of the roof line, an elaborately carved ornament atop one of the gables, and original plaster and wood finishes have been restored, giving the house a dramatically different appearance, but one more authentic to the building’s past.

A Storied Past

The Japanese Garden is among the oldest and most elaborate of its kind in America. Begun in 1911, it was inspired by widespread Western fascination with Asian culture. The Japanese gardens exhibited at world’s fairs and expositions in St. Louis, Chicago, and San Francisco helped to fuel the trend. Henry E. Huntington shared this interest, and at the urging of his superintendent, William Hertrich, he decided to build his own Japanese garden on his San Marino estate. Many of the garden’s plants and ornamental fixtures came from a property in nearby Pasadena that had failed as a commercial venture. Purchased in its entirety by Huntington, the materials also included the Japanese House, an example of a type of upper-class Japanese dwelling typical of the 19th century. The moon bridge, commissioned by Huntington, was built by Japanese craftsman Toichiro Kawai. After the institution opened to the public in 1928, the Japanese Garden became a major draw for visitors. But by the advent of World War II, staffing shortages and the political climate caused the Japanese Garden to be neglected, with parts of it inaccessible to the public, and the Japanese House fell into disrepair. The Huntington (as it is now called) is closed Tuesdays but open the rest of the week — please check their web site for directions, hours, and pricing: www.huntington.org

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Please don’t forget to join us at the Bel Air Crest Emergency Preparedness Fair Sunday, April 29th 11 – 1.It is open to non Bel Air Crest Residents .You will be to purchase supplies, make arrangements to get your home, see presentations by the Los Angeles Fire Dept and the Red Cross and the children will be able to climb on the fire truck. There will be food and games. Please call 310 471-3755 to RSVP.

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What is happening in Carole Schiffer’s Real Estate World”

I just closed two escrows this week, one a lovely home in Mountaingate to a couple of first time buyers, and another home in Bel Air that is now up for rent for $7,000 a month until the owner moves here from Hawaii next year. I have a great custom home in Bel Air Crest also available for lease for $20,000 a month as well as a number of lovely homes in Mountaingate, some already on the market and a few coming on in the next week or two. As always I am ready to assist you with all of your real estate needs and I look forward to seeing you at the BAC Emergency Preparedness Fair on the 29th of the month.

C

As you may know, myself along with a number of other BAC residents and Rick Cole have been working on helping get the community ready for a catastrophic emergency, i.e. fire, earthquake. We have been working very hard to not only make sure the community is ready, but to also assist in educating our residents on how to take care of themselves.  All of the experts tell us that every resident in the City should be prepared to take care of themselves and their families for 4- 7 days.  It is for that reason we are sponsoring an Emergency Preparedness Fair at the club house on Sunday April 29 from 11 am – 1 pm.   We will have a number of suppliers available for you to either purchase some supplies or arrange for services such as a gas shut off valve or a handyman to make sure that your big pieces of furniture or electronics are properly attached to the wall.  We will also have some food and games for the kids. If you have any friends or relatives who you think would benefit from joining us, please invite them as well. 

So, to answer that question that I get asked on a regular basis, what is happening with real estate and in Bel Air Crest specifically?  We have had a fairly active quarter.  It is interesting to note how things change in that there are times when we have only one or two Custom homes on the market vs. a much higher number of Canyon homes, and at this point we have only one Canyon home on the market and eight Custom homes on the market. Last year for the same quarter, there were five Canyon homes listed for sale, 1 Custom lot, and three Custom  homes. There were four homes in escrow, three Canyon and one Custom, and two closed escrows, both Canyon. There are a number of reasons as to the higher than normal Custom homes on the market and they range from the passing away of one of our long time residents to residents purchasing smaller homes because their family size has changed, and in some cases, they are purchasing bigger homes.  As in any area the reasons vary.  I have not seen or heard of anyone leaving because of the freeway construction taking place around us. If you own a custom home and would entertain doing a lease option, please let me know as I have a client that is not in the position to buy today, but most likely would be in about 6 – 8 months and would like to lease a home while they are putting their finances together. They are ready to move as their current lease is up at the end of Apri. I am still meeting people who have lived in Los Angeles for a number of years, who are coming to the community for the first time, and loving what they see.  I also have clients for the area who live in other parts of the city, and have kids who will be attending schools nearby and want to relocate to be closer to the schools. The reasons to live in Bel Air Crest are still very compelling. 

As always if you have or know of anyone with any real estate needs, please do not hesitate to give me a call.  In the meantime, I will see you around and please do join us on the 29th.     (RSVP is necessary).

Carole

If you ever wondered why football players always say “Hi, Mom” when they’re on camera during a game, you get the idea: Women — and more precisely, Moms, play pivotal roles in all of our lives. And so it is natural to have a month-long celebration honoring the contributions of women who have helped move civilization forward in so many fields of endeavor or just life in general. Women have always struggled to get recognized for their importance and contributions to society, and it wasn’t even until 1920 when women in the United States gained the right to vote with the passage of the 19th Amendment.

Women’s History Month was actually inspired by a school district in Sonoma, California, in 1978, when it declared the week around March 8 as Women’s History Week. March 8 was already recognized as International Women’s Day. And when the event became so popular with other schools around the country, Senator Orrin Hatch (R-Utah) and Rep. Barbara Mikulski (D-Maryland) cosponsored the first Joint Congressional Resolution proclaiming Women’s History Week….and of course, this was so well received by various celebrations around the US, in 1987, Congress expanded the focus to a whole month.

The focus has always been on contributions of women who have “made a difference” — including a long line of distinguished first ladies from Dolly Madison, Eleanor Roosevelt to Michelle Obama to our first women Secretaries of State — Madeline Albright to Condoleezza Rice to Hillary Clinton. The list is endless, and so it is this month, we can think about the great women in our own lives who have been there for us, including my own…”Hi, Mom…”

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2012 gets off to fast start

The ‘hummmm” in the office is stronger, more vibrant than we have seen in a while.  Sales volume for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — are all showing up and because of some large sales, the  median sales prices for February 2012 compared to 2011 is up a little. Sales volume for these four communities was $176 million vs. $170 million in 2011. Notably, sales volumes were up in three of the four areas — Beverly Hills, BHPO, and Brentwood. Only Bel-Air suffered a volume decline this year vs. February 2011.

As always, influencing the median sales price, which I believe is the fairest way to average out actual prices sold in single family homes were large sales of over $10 million — Beverly Hills Post Office recorded a sale of $21.750 million in February and had another sale of $6.750 million as well last month. Beverly Hills had two sales over $7 million; Bel-Air had a sale of $10.175 million; and Brentwood had three sales over $3 million — two in the $3 million range and one for $9 million.

There were a total of 30 sales for the month, and the average sales price vs. average listing price (always a strong gauge of market strength) was led by Brentwood at 95.5%; Bel-Air at 91.6%; Beverly Hills at 90.4%; and Beverly Hills Post Office at 89.7%. In other words, the average price reduction from the listing price to actual sales price is still hovering around 10% reduction.

This is not a seller’s market….yet. But we are continuing to see multiple offers on homes that are priced right.
The average days on market (DOM) is still over 100 days, with Beverly Hills at 96 DOM; Brentwood at 100 DOM; Bel-Air at 124 DOM; and Beverly Hills Post Office at 143 DOM.

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Rolling Spring break for schools eases congestion….what to do? where to go?

Perhaps I’m getting old….I never heard of “rolling Spring breaks” when I was growing up — maybe that’s because when I grew up we didn’t need them: There were  less people living in Southern California when I had a Spring Vacation in school. But with millions more living here in our Golden State, school districts have instituted the rolling vacation schedule — where schools are staggering their Spring breaks to ease crowding at popular resort towns (like Balboa, San Diego, Palm Springs) and make it easier for families to get around to popular attractions without the huge crowds all coming at once. The problem is if the kids go to different schools and each school has a different schedule, it makes it difficult to schedule something for the entire family to do together at the same time.  Did you know that nearly 80% of all domestic person-trips are taken by car, truck or RV? And that’s up 11% from 1994…and what that means is that most of us who are taking time off this spring will be going by automobile? And with gasoline prices going through the roof, you might want to consider some of the close by choices suggested by the Southern California Automobile Club in their monthly magazine, Westways. Given the price of gas today,   I thought it might be fun to give you some suggestions for day trips rather then “trips”. The obvious choices for day trips, of course, are the famous Southern California theme parks — Disneyland, Knott’s Berry Farm, Sea World, Magic Mountain, and Universal Studios — but there is a world of other free (or almost free attractions) that can appeal to the whole family as well — including the Getty Center, Getty Villa (Malibu), and a variety of nature and mountain walks in the nearby mountains. Different communities have wonderful venues that can entertain you and your family for a day, like Pasadena with the Gamble House, the Norton Simon & Huntington Museums, and a delightful tea at the beautiful Langham Hotel. Or how about the new exhibit Levitated Mass at the Los Angeles County Museum of Art?  They are in the process of putting it together, but should be most interesting when it is done. Museums abound in our area, all within easy driving distance –the Hammer (Westwood) to the Gene Autry Museum. One of my favorite places, of course, is San Diego and all of its famous attractions including the Gaslight District, USS Midway, San Diego Zoo or Legoland and Wild Animal Park.

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College debt can be a challenge for first-time home buyers….check it out

If you or someone you know is planning to buy their first home, you will have to consider the debt issues of your college loan if you have one. Many first-time borrowers have too much debt from college loans and as a result, either opt out of buying or they seek help from their parents — who sometimes co-signed for their children’s indebtedness. There are some sobering statistics to note: one in four college borrowers are carrying past-due student loan debts,  there is a higher delinquency rate than previously thought. About 167,000 former students are carrying more than $200,000 in loan debt, or about one-half of 1% of all student-loan borrowers. The average balance per borrower is $23,300. According to some experts, this is a “ticking time bomb” — a looming crisis threatening young adults, their families and the broader economy. There are some 37 million borrowers with student loans, of which 5.4 million had at least one past-due student loan account.

What’s worse, is that only 40% to 50% of students at the California State University system, for example, end up completing their degrees. And sadly, many scholars believe that America’s declining or stagnant college graduation rates have become an Achilles’ heel in the competitive global economy. The report issued by the New York Federal Reserve concluded that there are far-reaching consequences of these loan failures, which force students to make decisions that greatly affect their careers and the outcomes for their families and parents. And here’s one last statistic to sober you up: The latest outstanding student loan balance is $870 billion, which is nearly $200 billion more than the total credit card debt in the US.

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Foreign buyers focus on individual homes….

Now that Freddie Mac and Fannie Mae have left a trail of broken dreams because of the housing market meltdown, foreign clients are storming US shores with pockets full of money to pick up hundreds of thousands homes throughout the country. According the National Association of Realtors, foreign clients have purchased $41 billion worth of houses and apartments during the 12-month period ending March 2011 — that is roughly the same amount purchased in the previous period of 2010. And there are no signs this trend is abating.

While most of these are investments are via the rental market, there is another $41 billion spent by immigrants who moved here within the last two years and individuals with visas of more than six months — bringing the total to $82 billion worth of US residential real estate that was taken off the market by international buyers, up from $66 billion the year before according the NAR.

When a similar trend occurred in the early 1980s with Japanese buyers, there was a huge outcry that we were selling off America. Not so this time. The foreign share of the domestic housing market is a “small sliver” of the $1.07 trillion pie. And in today’s times, local economies are welcoming with open arms anyone who is moving into the neighborhood with money to spend. The most popular places for foreigners? California (of course), Florida, Texas, and Arizona.

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Top 10 overlooked personal tax deductions….

Here are some handy tax tips for you to consider…..1. Dependent parents. More and more often, middle-aged people take care of their aging parents, including paying some or all of their medical expenses. If you’re providing more than 50 percent of your parents’ financial support, and their expenses exceed 7.5 percent of your adjusted gross income, you may qualify for a big deduction. 2. Mortgage loan discount and origination fees. If you bought a house in 2011, make sure you check your Good Faith Statement and deduct any mortgage origination fees or discount points that you paid. The IRS considers all of these expenses prepaid mortgage interest, and mortgage interest is always deductible for primary residences. 3. Sales tax on a new vehicle.  This deduction comes with a lot of restrictions and stipulations—buying a used car doesn’t count, for example—but if you purchased a new car in 2011, you may be able to deduct the sales tax on the purchase, even if you don’t itemize your deductions. Depending on your filing status (i.e. single, married filing jointly versus married filing separately) and income, your deduction might be a little lower, and if you make more than $135,000, this deduction is not applicable. 4. Home energy efficiency improvements. If you make qualifying energy-efficient home improvements to your primary residence, like installing doors, windows, a water heater, furnace, or air conditioner, you may be able to deduct up to $1,500 off your 2011 tax bill. For more information, see this list of green energy tax credits.  5. Mileage for volunteer work. If you travel a long way to volunteer for a charity, you can deduct the IRS-determined mileage allowance for your commute back and forth. While the reimbursement rate fell a bit for business expenses last year, fortunately the 14 cents per mile for charity-related travel held steady. 6. Childcare
expenses when volunteering. If you paid a babysitter to watch the kids while you volunteered for your church or other non-profit organization, you can deduct that expense on your taxes.  7. Expenses for mentoring programs. Many volunteers for programs such as Big Brothers Big Sisters, Young Life, and youth groups end up spending a lot of their own funds on children by paying for meals and event tickets. You can’t deduct the money you spent on yourself, but you can deduct the cash spent on the child. 8. Continuing education deductions. If you itemize your deductions, don’t miss out on these miscellaneous itemized tax deductions: Subscriptions to professional publications, dues paid to professional associations, investment advisory fees, costs of a safety deposit box, and tax-preparation fees (even if you used online tax preparation software like TurboTax).  9. Jury duty pay. If you received jury duty pay, the IRS considers it like any other taxable income. But if you had to return jury duty compensation because you still had a salary from your employer while at jury duty, then you can deduct the pay from your tax return.

You don’t have to be a CPA or a math whiz to figure out that many activities, tasks, and everyday situations can be money-saving tax deductions. But of course fine print can always get in the way, so if you’re unsure about itemizing or taking certain deductions, consult a tax professional. The last thing you want to do is claim a deduction and pay it back later on during an audit.
Aren’t taxes fun?

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Light Rail Expo coming to the Westside.

We all complain about the horrible traffic on the Westside, I know I sure do… Expo is coming to the rescue.  As we have read and heard recently, the Expo stations connecting Downtown to the Sea is in the works with some stations already completed and in the final testing stations.  Here is the phone number to call for more information of the stations and the route (213 922-3976). Jim Kennedy is the Community Relations Manager for the project and his direct # is 310 500-1787, and email address; jimkennedy2@skanska.com  I would provide you with the link, but apparently is it full of virus’ and I don’t want to contaminate anyone’s computer.  According to a presentation I recently attended, there will be parking areas for us to leave our beloved cars and get around the city.  They are working with community groups (called stake holders) to assure their concerns are addressed.  .  As we are seeing with the construction for the widening of the 405, there are going to be some miserable days ahead of u, but hopefully in the end it will lighten the traffic gridlock that we all experience here.

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As for me, I am very busy, hold open houses most Sundays on one of my listings in Mountaingate, including my new listing at The Ridge, and/or working with some of my many buyers including selling homes in Brentwood and Bel Air, and condos in Santa Monica, Venice and the South Bay.

It’s a tradition — Spring time is Spring Cleaning Time. Unless you’re the type who wants to do it all by yourself, here are some handy tips to get your spring cleaning done quickly and put it behind you before Summer arrives with the whole family involved. It has been said that if you haven’t used/worn it in past six months, get rid of it.  I was told a few years ago by a coach, that the more clutter you get rid of, the more new and exciting things come into your
Life… and it is true.

Pick a day (usually a Saturday) when you don’t have a bunch of competing activities that require/demand anyone’s participation, including soccer or Little League games…
2. Make this into a “party” — invite everyone to bring their favorite CD and alternate playing them so everyone can listen, too. You can even pull out names from a hat as to whose CD gets played first/in what order.
3.  Gather supplies before the day arrives….don’t wait for the last minute and have to run out to get something — it destroys the momentum;
4.  Have some good snacks and drinks on hand for break times….choose your families’ favorites — you know what to bring.
5.  Make chores age-appropriate.
6. Turn off the ringers of cell phones — and enforce the rule that cell phones can only be accessed during breaks and lunch.
7.  Take pictures of the event — video and photos. Post on Facebook and/or Twitter. Let them show they’re having fun. 8.  And when you’re through, have a Grand Prize (several) — Best Worker; Best Job Done; Most Diligent; Most Creative, etc.

And finally, you may want to take the family out for dinner and a movie (after they clean up, of course). The Spring Cleaning Party can be an easy-to-organize, easy-to-finish event that will bring the family closer together and you will have accomplished a lot, too.

Happy Spring Cleaning Day!

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The Ides of March is not just the name of a popular movie — it’s been around a lot longer than that! The “Ides of March” has been with us for several thousand years and is most noted as the 15th day of March in the Roman calendar, probably referring to the day of the full moon. The word Ides comes from the Latin word “Idus” and means “half division” especially in relation to a month. It is a word that was used widely in the Roman calendar indicating the approximate day that was the middle of the month. The term ides was used for the 15th day of the months of March, May, July, and October, and the 13th day of the other months. The Ides of March was a festive day dedicated to the god Mars and a military parade was usually held. Perhaps the Ides of March is best known as the date on which Julius Caesar was killed in 44 B.C.(remember that?).

Caesar was stabbed (23 times) to death in the Roman Senate by a group of conspirators led by Marcus Junius Brutus and Gaius Cassius Longin. The group included 60 other co-conspirators according to Plutarch. Can you imagine the uproar on our cable news channel had that happened today? We’d never hear the end of it.
But leave it to William Shakespeare to bring the “Ides of March” into popular lore. The fateful meeting when Caesar learns of a possible plot against him is famously dramatized in William Shakespeare’s play Julius Caesar, when Caesar is warned by the soothsayer to “beware the Ides of March.” And who would play Caesar today? George Clooney, of course!

March comes in like a lion and goes out like a lamb.

Well, we’re waiting. And waiting. No lions anywhere on the horizon. One only has to look outside in the middle of January or February and see the bright, sunny skies and feel the 80-degree weather wrapping around you to understand why Hollywood is located in Hollywood. Why we have a parade on New Year’s Day in Pasadena. We are woefully short of rainfall this year, and frankly, I would love to see the rain falling outside my kitchen window and to see how fresh everything smells after the rain stops. But no rain also spells trouble down the road as we experience dry, draught-like conditions which can lead to increase fire risk.

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The operative key words today in real estate: “Global” and “Connected”

I wouldn’t call myself a techno-wizard by any stretch, but if you’re going to survive in today’s real estate profession, you have to be virtually connected and available 24/7 and you will have to learn to go global at the drop of a mobile phone. We’re all connected today, and the lesson learned came home to land in my lap while driving a client from Japan around last week.

I first met my client via my web site four years ago.  At the time, he and his wife were living in Hong Kong, but they wanted to move here to Los Angeles where he had grown up and attended USC. Timing was not right for them to have made the move then.  But through the years, we have stayed in touch while they moved around different parts of Asia because of his job. As an investment banker, with one of the biggest lending institutions in the world, he has had an opportunity to be in the forefront of watching and participating in the changing economic situation the world over.

So now that he and his wife and two beautiful children are ready to call West Los Angeles home for the next four to six years, we are looking for a home that suits their needs;  one that will also enable the children to attend one of the great private schools in the area. Having a geographically friendly home to the school was at the top of their list. As we were driving about looking at houses, I received a call from an agent who was in Miami on his way to Cuba to play in a baseball tournament for a few days.  We were finalizing a transaction where I am representing a buyer who lives in Hawaii; we had to get all the formal sign offs of the transaction by the deadlines, so time was of the essence.

To set the picture straight:  I am in Los Angeles….the agent representing the sellers was in Miami on his way to Cuba….the sellers were in Utah at their home….. and my buyer was at her home in Hawaii.  Talk about connections. And working globally!

My passenger client was listening to all this conversation going on(something he is used to as most of his business conferences are held in the same manner)….”Amazing….I’m just amazed at how all this gets done, and I’m just sitting here….taking it all in.” “Wow,” he said, “our world has sure shrunk, hasn’t it?” “Yes, you certainly could say that!” I nodded my head in agreement.

Being globally connected — that’s what I call it. Being able to stay connected wherever your client is. This is not unusual these days, we have to consider that we have to be available literally 24/7 — and yes, it’s a challenge.
One of the key attractions  on the Westside are all of the wonderful private schools we have here Enrollments are down because of the economy — and many parents have opted for public schools, which remain solid on the Westside. So
those with the ability to pay for these private school, we are seeing openings in these schools that we have not seen in the past.  In these challenging times, in order to facilitate a sale and manage the myriad of responsibilities during escrow — one has to stay connected, wherever the client is and wherever I am. It all just comes with our new territory. And frankly, I love it….thrive on it!

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Good news on the home front — nationwide homes sales up — a strong sign

The National Assn. of Realtors reported that January sales of previously owned homes rose 4.3% in the US, and inventories fell to nearly seven-year lows as lower prices, unusually warm weather and an improving economy lifted demand. This is a good-news report, because it shows that the market appears to be gaining speed.  The prices are not necessarily following the level of activity, but if the level of business continues to grow as it appears to do, then I would imagine that given the shortage of good inventory, the natural progression of supply and demand will kick into gear.   According to Laurence   Yun, the lead economist for the NAR, “Things are genuinely improving,” Yun’s forecasts have traditionally been on target and while these are what we call — trailing stats — they reflect a marked, positive change in the market. As we have seen on the Westside during the past year, we have experienced slow starts in the first three months of the year, only to see a rapid acceleration of sales volume as we move toward the strong selling months of April-June period. “It’s still the case that existing home sales are recovering, albeit only gradually,” said Paul Diggle, property economist at Capital Economics. Sales are up 13% over the last six months and up 38% from their mid-2010 low, “so there’s clearly an underlying recovery in place,” he said. Nationally, the median sales price in January was $154,700, a 2% drop from a year earlier. Home prices are usually weaker in the winter because there are fewer transactions, and the National Assn. of Realtors doesn’t seasonally adjust the price data. Inventories fell 0.4% to 2.31 million, the lowest since 2005. That represents 6.1 months of supply, the lowest since April 2006 and down from 6.4 months in December.
While working with some of my buyers lately, they all have been surprised by the number of multiple offers on properties they are interested in, or properties that have been on the market a very short period of time that already have an accepted offer.

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US Incandescent Light Bulb Phase-out

There seems to be a bit of confusion over incandescent light bulb phase-out
Legislation passed back in 2007 established a phase-out schedule for most incandescent bulbs; starting with 100 watt light bulbs in 2011 in California.5W light bulbs will be phased out next year and the 60W and 40W light bulbs will disappear in 2014.Consumers will still be able to buy 100 watt bulbs for a while, until stocks run out – which is expected to happen around mid-2012. From what I’ve read, some folks have been hoarding the darned things.

Incandescent bulbs are incredibly energy intensive considering only 10% of the electricity they consume is converted to light – the rest is wasted as heat. That wasted heat is money and often coal being burned. Still, some folks say they prefer the type of light they generate .

New packaging requirements have also commenced where the term “watts” is replaced with “lumens”. The reason for this is a watt is a unit of power, whereas lumen is a unit of light.
While packaging will offer some sort of “watt-equivalent” detail as well, here’s how the new ratings translate for clear, frosted and soft white general service light bulbs.

100 watt = 1490-2600 lumens
75 watt = 1050-1489 lumens
60 watt= 750-1049 lumens
40 watt = 310-749 lumens

That information comes from the American Lighting Association; which also lists a table for modified spectrum general service incandescent light bulbs. Additional packaging labeling requirements also offers consumers a greater amount of information to help them make a more informed lighting choice.

The types of light bulbs we can be replace our incandescents with will be either halogen or xenon hybrid bulbs that scrape past in terms of the new efficiency requirements; or Compact Fluorescent Lamps (CFL) and LED bulbs – both of which blast past it, with a *quality* LED bulb being the king of efficiency and serviceable life.

CFL’s are well established in the market and very reasonably priced these days. Given the increase of recycling points, the small amount of mercury CFL’s contain has become less of an issue.

LED’s can be a different kettle of fish when it comes to quality in some cases – you just need to be careful what you purchase; particularly given their higher price tag.
There is also a great deal of controversy regarding the handling of the mercury CFL light bulbs.

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What is happening in my personal real estate world?  I can only tell you that I am very busy.  As I have in the past I am working with approximately 10 – 12 active buyers (ready to purchase something in the next 30 – 90 days), and have two great listings in the Ridge in Mountaingate with some new listings in the wings, including a fabulous Custom home in Bel Air Crest that will be coming on the market in about two weeks for lease at $20,000 a month! Please let me know how I might assist you or someone you know with any of their real estate needs.

The 18th annual Mardi Gras in San Diego’s Gas Lamp district is back.  The largest Mardi Gras celebration on the West Coast, San Diego’s 18th annual celebration in the Gas Lamp district takes over downtown San Diego on Fat Tuesday, February 21.  Although much smaller and cozier than the famous Mardi Gras celebration in New Orleans, the authenticity and charming Gas Lamp area of San Diego makes this a must-see if you’re in the mood for fun and joining other Fat Tuesday celebrants

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Leap Year (2012) and Leap Day (February 29) are fast approaching

Every four years, we get to play Leap Year and Leap Day.  February 29 is Leap Day and is the one day that we add a “day” to our calendar to make sure we catch up with the Earth’s rotation around the sun.  We all do the obligatory snicker when someone says that because they were born on February 29 (in one of the former Leap Years), they’re not as old as they really are.  So how did this all get started?

Julius Caesar, Father of Leap Year

Julius Caesar was behind the origin of leap year in 45 BC. The early Romans had a 355 day calendar and to keep festivals occurring around the same season each year a 22 or 23 day month was created every second year. Julius Caesar decided to simplify things and added days to different months of the year to create the 365 day calendar, the actual calculation were made by Caesar’s astronomer, Sosigenes. Every fourth year following the 28th day of Februarius (February 29th) one day was to be added, making every fourth year a leap year. In 1582, Pope Gregory XIII further refined the calendar with the rule that leap day would occur in any year divisible by 4 as described above

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Home prices surge for first month…..sales volume down

There’s good news and not-so-good news:  Home prices surged upward in the four communities I report on  — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — for the month of January when compared to same period in 2011.  But sales volume was down 25% for the first month as well, which dampens some of my initial enthusiasm for the start of the New Year.

On the good news side, however, Median Sales Prices were up in all four communities for January 2012 compared to January 2011.  Beverly Hills, which had a great January, was up 60% over January 2011.  Beverly Hills Post Office was up 25% over last January; Bel-Air was up 30%, and Brentwood nudged ahead by 3%.  Year-To-Date Median Sales Prices are the best gauge how our neighborhoods are doing in terms of home values.  Each month, the Multiple Listing Service (MLS) continues to track monthly sales and for the most part, the #s are trailing statistics at best.  Homes sold in December may not show up for three or four months, depending on when the escrows close.  And, as I have noted in the past, MSL has had challenges in eradicating double booking a sale when two real estate agents record the same sale.  I try my best to weed these out, but sometimes, it’s difficult based on the way MLS sends out its data.  Still, our #s remain the best guideline as to what is happening in our communities.

When you track median sales prices for December 2011 sales vs. January 2012 sales, Beverly Hills had a huge statistical leap of 110% increase for this year — with the average MSP of $4,800,000 vs. $2,280,000.  Bel-Air showed a 46% increase in January 2012 over December 2011, with a MSP of $1,935,000 vs. $1,654,000.  BHPO was down 5% for the same period as was Brentwood.

What does this mean?  It’s too early to tell?

One month does not make a year, and while it is encouraging to see all four communities I report on in the positive area, it doesn’t necessarily mean we’re going to have a spectacular year.  I will share with you that we’re seeing a lot of activity at open houses, and I’m off to one of my best starts already.

One of my recent sales was to a wonderful lady from Hawaii who came here to shop for a home close to UCLA ((She had already done her research on the Internet (California Moves, Trulia) and she was very focused and organized.  Our combined – 50 homes, most of which we looked at in a crush of 4 days.  About  25% of the homes on the lists had at least one offer, some as many as 10 pr had gone into escrow while we were looking.. But fear not, we did find “that special one”, and now are going through the inspections. She really had not totally planned to find something that quickly, but fortunately we did.   I am relating this story to illustrate the current state of the market.  .

One of the key factors in this market is the challenge to even see the home you want to inspect.  In Beverly Hills, for example, it may take you three or four days, and in some cases, a full week — before you can even get an appointment to see the house.  And one of the reasons for this is that there is not a lot of good inventory out there now.  Good properties are hard to find, and many homes are being gobbled up before they even get on the market.  And as an aside, a house next door to my Mother’s home in Beverly Wood, came on the market and had 11 offers on it.  We couldn’t believe it.

The point is that the Westside continues to attract buyers from all over the world — it’s all about location, isn’t it?

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Los Angeles County luxury home prices make up some lost ground
In a larger context, the luxury market is finally getting traction in Los Angeles County.

I attended the Previews Directors meeting of Coldwell Banker’s Los Angeles Company today.  This is the group of Coldwell Banker agents that specialize in the higher end market (in West Los Angeles, that cut off is $2,000,0000 and slightly lower in other parts of the areas covered by the Los Angeles Company which includes all of Los Angeles, Ventura and Santa Barbara counties).  The energy in the room was palpable, and exciting in that the difference in the production and sales volume between, just the first six weeks of 2012 vs. 2010 and 2011 were appreciably higher.  Thus far, there have been two sales over $20,000,000, one in Beverly Hills Post Office and the other in Bel Air (both of these are closed escrows).  The sales volume in Beverly Hills is up 30% from the same time last year, and in Bel Air, it is up about 10%; in Brentwood it is up approximately the same amount and the same in Beverly Hills Post Office. One of the areas reported on was Santa Monica, and there it was reported that of the 58 active listings, 46 are in escrow!  The only area that is suffering is Marina del Rey, with Venice recovering faster than the Marina.  You can’t keep a good home down long.  Last year brought a dose of real estate reality to many wealthy areas of Los Angeles, including tony San Marino which endured a 7.2% decline in median sales price, erasing gains from the previous two years.  And where beach areas have remained strong over the past decade, Hermosa Beach was the big winner and Malibu a big loser.  San Diego-based Data Quick pointed out that “looks can be deceiving” — while some areas made some strong gains in 2011, they really were just climbing back to previous levels — not highs, but levels that deteriorated during 2010 and 2009.  One of the main reasons for the rise in luxury home prices has been the lack of homes for sale at the top of the price spectrum.

According to Data Quick, Bel-Air and environs had a 14.3% price increase from 2010 to 2011, but it came off a 10.5% loss in the 2009-to-2010 tally.  The 147 recorded sales in Bel-Air included the $85 million Spelling mansion, which claimed the highest priced -sale distinction for Southern California for 2011.

In Beverly Hills’s desirable 90210 Zip Code, prices were up 7.3% compared with a 1.7% drop the year before.  Malibu was hardest hit with a median sales price drop of 21% to $1.65 million over the previous year.  And Santa Monica’s 90402 had 110 existing home sales at a median sales price of $2.141 million, an 8.5% price drop….and Pacific Palisades took a 7.8% hit as well, which has been its third consecutive loss in a row.

All in all, the market appears to be strengthening as we enter 2012.  Year-to-date median sales prices will tell our story for the most part….but there can always be a Spelling Mansion hitting the market, too, which influences all of these stats.  At the end of the day, your home’s value will be based on what buyers are willing to pay for it.

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What an impressive event….my Uncle’s military funeral

I really didn’t expect a memorial service out of the ordinary….at my age, unfortunately I’ve been to many, but I must share with you the absolutely impressive, moving military funeral given for my Uncle last week.  He was 83 and had served as a pharmacist in the US Army in Korea.  Born in Brooklyn, New York, in 1928, Art served as an officer during the Korean War and on getting out of the service in 1953, he worked as a pharmacist in Long Beach, where he passed away after a long battle with lung cancer.  At the memorial service, his coffin was draped in the American Flag, and three honor guards walked in perfect unison, smartly turned to face us, and then another soldier played taps. After taps, the honor guard tri-folded the American Flag and gave it to my Aunt as an expression of America’s gratitude for Art’s contributions in the military.  The entire ceremony was very moving!

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Amazing spider silk

Spider silk – stronger than steel, tougher than Kevlar – and beautiful

A fear of spiders isn’t uncommon, although often unfounded. I know of far more people who have been bitten by dogs or scratched by a cat than have been bitten by a spider. Sometimes fear can be turned into fascination once we understand more about something.

A fascinating aspect of spiders is the webs they weave – not just the intricate nature of the construction, but the silk used to spin the web, which is the strongest natural or synthetic fiber known. Spider silk is made up of complex proteins. Researchers have been keen to figure out how to replicate spider silk, but have so far only decoded the silk’s DNA for a handful of species of spider.  Spiders create different types of silk depending on the application, with some species may create up to 8 different silk types.

The interest in creating spider silk based products for applications such as ropes and protective clothing becomes apparent when you look at the properties of the silk.

According to Wikipedia, spider silk strength is better than that of high-grade steel and is as strong as Kevlar; which is used in bullet proof body armor. It’s very lightweight and it would only take a strand of spider silk weighing around a pound to encircle the entire planet. Some webs are strong enough to capture small birds and bats. Spider silk is able stretch up to 140% of its length without breaking and retains its strength below -40 degrees Celsius.

Spiders are great recyclers too when it comes to their silk. After a couple of days, the web strands lose their stickiness – so the spider eats that section and weaves a new one. While silkworms have been farmed for their silk for thousands of years, there hasn’t been much success in spider farming or harvesting spider silk as they can be cranky little critters who have a tendency to eat one another. However, that doesn’t mean to say there hasn’t been any success.

An example of just how beautiful spider silk can be as a fiber for textiles is captured in this cloth, made from the silk of the golden-orb weaving spider.

An embroidered cape made of spider silk.
Crafted by Simon Peers and Nicholas Godley, 2011
Image credit: Victoria and Albert Museum

An image of the full spider silk cape can be viewed here. I’m not at all a fan or spiders, I found this to be absolutely beautiful. Aside from the amazing workmanship, what you see is the natural color of the silk. According to the accompanying report on the ABC, 1 million female golden orb spiders contributed to the 4 meter (around 13 feet) cape. Spiders were captured in the highlands of Madagascar each morning, harnessed in special equipment and their silk extracted; then returned to the wild. I’m not sure how the spiders felt about the whole ordeal though – and if they are the same golden orb spider we have here in Australia, the handlers would have been risking a nasty bite.

Trivia – there are well over 30,000 species of spider and only 200 species have bites that can cause health problems in humans (allergic persons aside) – less than 1%. Three species of spider go extinct each year.

Even if you don’t like professional football, you can watch this Sunday’s 46th Super Bowl ads and know that you are making history (again) as being part of the largest American television broadcast ever.  Last year’s 2011 Super Bowl attracted the largest-ever telecast in American TV history with 111 million viewers (160 million worldwide), and this year’s match between New York Giants and the New England Patriots is expected to surpass that landmark.  Whether you are game watcher, ad watcher or just like to graze the food, the Super Bowl has become an unofficial national holiday and Americans consume more food on Super Bowl Sunday than any other holiday except Thanksgiving.

Held in the Lucas Oil Stadium in Indianapolis Sunday, February 5, the game’s history is replete with football heroics and, most importantly, with television’s most expensive advertising — this year, ads will cost $3.5 million for a 30-second spot, not including production, which adds a minimum of another $1 million.

What is the most famous Super Bowl ad?  You’re right:  It was the legendary 1984 Apple commercial which introduced the Macintosh, created by Chiat Day Advertising right here in Los Angeles.

This 60-second commercial, developed by Lee Cloud and directed by Ridley Scott, has been voted not only the best-ever Super Bowl ad but the best television commercial produced in the last century.  Super Bowls have a way of inspiring the creative minds we have in advertising.

You can expect this year’s Super Bowl advertisers will have that famous commercial in mind — from the acclaimed Budweiser frogs to e-Trade’s talking baby to sexy GoDaddy.com ads, the ads have become as much a part of the spectacle as the game.

The National Football conference leads the American Football conference 24-21 since the two met for the first time in January 1967 before 61,946 at the Los Angeles Coliseum, which featured Vince Lombardi’s Green Bay Packers who beat Kansas City, 35-10.  The Pittsburgh Steelers have won six Super Bowls….Dallas Cowboys and San Francisco 49ers each have won five…..Green Bay has won four….and the New England Patriots are pointing toward the fourth win.  Who are you rooting for?  I’m pulling for the Giants.

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The “405″ takes on new meaning…..a term some say will live in infamy

I’m not normally in for hyperbole, but it was interesting to hear a recent New York transplant describe her reaction to driving the 405 freeway after arriving in our Golden State from New York (actually she is now bi coastal).  “I’ve learned to swear in Californian:  405!”  Heard that before?  That’s California Speak — and for all of us who have struggled on the 405, we wonder “why am I doing this?”

What is particularly depressing at times is that as you drive up or down this critical Los Angeles artery, you can see the nightmare stretching out before you…there is no break, no speed up.  However, I have learned that simply by using the 405 widening project’s Twitter site , you can get timely updates that can help you navigate your daily comings and goings.  It really works, and once you get used to scanning Twitter.com/I_405 a few times a day, you’ll be able to 1) get where you need to get by missing clogged arteries, and 2) lower your blood pressure. It tells us what is open, what is closed and the timing for openings and closings of streets, freeways, etc.   Perhaps one day, the 405 will take on a newer, more pleasant meaning…..we can hope.

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Valentine’s Day creates a great opportunity to show ‘you care ‘

Just to remind you….in a recent survey, 67% of females felt their Valentine’s Day celebration “failed their expectations.” So, I thought it worthwhile to pass on different, fun ways to celebrate Valentine’s Day…..Balloon Goodies — insert candy surprises into balloons before inflating them….add a folded-up Valentine’s message and then inflate each balloon — tie with a red ribbon and present on Valentine’s morning.  Family Affair — have the children help you prepare red Jell-O with cinnamon hearts mixed in….or heart-shaped cookies….pink-colored Angel food cake, topped with strawberries and Cool Whip.  The Gift of Time — give a hand-made coupon for some work you can do to free up time for your spouse or parent.  Scavenger Hunt — Prepare hand-written Post It Notes with sweet messages and attach with a candy heart or other treat…..place around the house where they will be found all day.  Picnic fun — you can either place a blanket on the floor near a ‘lit fireplace’ with candles on the mantel…and have a Valentine’s meal with a bottle of your favorite bubbly or invite your friend or spouse to a Valentine’s picnic in the park.  And , of course, there are the traditional flowers and card — the most popular gift of all are roses delivered to work or home to your loved one….interestingly, women surveyed prefer other colors besides red, too!

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Out of the box — extending your reach, your market

Having spent 30 years in the real estate business, the hallmark of my survival (and success) has been my ability to work “out of the box.”  Every two weeks, I report on four communities in The SchifferLine — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood.  But my reach is much longer and my “box” is much bigger than these four communities!  My discerning clients come from and go everywhere — from far away in China or Mexico or Russia — or from just around the corner.  So it is critical that I can serve ALL their needs — and that’s exactly what I do.  They all have unique wants and needs that cannot always be served by one community or the next.

During my career, which started in Marina del Rey and extended into Venice and Santa Monica in the early 1980s, I have always been involved in the ‘goings and comings’ of the entire Westside — alert to local trends, real estate values, and most importantly what is happening in every community on the Westside, that is one of the reasons I serve on the Board of Directors of both the Century City and West Los Angeles Chamber of Commerce.. Knowing ‘the neighborhood’ is not a fancy marketing phrase — it’s the foundation of my core business philosophy of serving a diverse, demanding client list that expects a real estate agent who goes that extra mile — outside the box, too!

Here is a partial list of properties I’ve sold in the past five years:
A partial list of homes and condos I have sold in the last five years that are not in Bel Air Crest, Mountaingate, Brentwood Circle, Beverly Hills Post Office

Beverly Hills: Spaulding, Chevy Chase, Wetherly, Bedford, Rodeo, Tower, Summit,  Camden.

Brentwood Park: Avondale, Rockingham, South Bristol, Carmelina North & South

Marina Del Rey & Playa Vista: Via Dolce, Playa Vista, Ketch Mall – Bought & Sold

Westwood: Wilkins -Bought & Sold, Wilkins – house & condo, Rochester Av, Ohio

Pacific Palisades: Palisades Drive, Paseo Miramar, Castlemar, Strathmore

Santa Monica: Ocean Ave – house, Ocean Ave – condos, Alta, Margarita, 11th, 24th, 25th,  Montana

Other Areas: Avenida Del Mundo, Coronado CA, House in Arizona, House in Hawaii

* – not a complete list

I represented the clients as buyers, sellers and sometimes both buyers & sellers.

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Investment properties are on the radar as demand grows

Over the years, I have assisted clients in a variety of real estate investments, and I wanted to share with you some information about the investment property market. In addition to single-family residences, I can help you with your investment property search. Here is a recent update from the Reis Observer on real estate investment published in November, 2011:

The Reis Observer, which publishes quarterly reviews of real estate news on the major US markets, identifies the Westside (which this report covers from downtown Los Angeles to the ocean) as the most affluent section of Los Angeles County. Northern sections such as the San Fernando Valley and Tri-Cities area (Glendale, Burbank and Pasadena) mix affluent and middle-income communities. Southern and eastern sections of the county are less well off.  Downtown has been the location of a recent condominium and apartment development boom, beginning with the reuse of older office buildings and shifting to new construction. While the economy in Los Angeles County isn’t not faring well at year end according to Reis, the good news is that the 761,500-unit market-rate, investment-grade Los Angeles rental apartment market continued to tighten in the third quarter of 2011, and rent gains began to accelerate. While new supply is gearing up, demand far exceeds it, and this is expected to continue through the end of the year. The national press has noticed.

According to Multifamily Executive magazine, “job growth, healthy investment sales, and a long-awaited decline in vacancy have the apartment sector looking up in Los Angeles County.”
Here is a list of the various sub markets in Los Angeles County:

Westside

As of October 31, 2011, the 40,991-unit Beverly Hills submarket has a vacancy rate of 3.3%, and an average asking rent of $1,844 per month for the third quarter of 2011, fourth highest among 37 submarkets in Los Angeles County according to Reis. The vacancy rate fell 20 basis points in the third quarter, and is down 60 basis points year-over-year. Rent gains were above average, with the average asking rent up 1.0% for the quarter, and the average effective rent up 1.2% to $1,797 per month. The year-over-year gains were 2.4% and 2.6%, respectively.
In the 35,975-unit West LA/Brentwood/Westwood submarket, the vacancy rate is 4.5% and the average asking rent is $2,194 per month, the second highest county-wide, Reis reports. The vacancy rate was unchanged during the quarter, but is down 100 basis points year-over-year. Both the average asking rent and the average effective edged up 0.1%, the latter to $2,109 per month. The year-over-year gains are 1.6% and 1.8%, respectively.

The average asking rent in the 18,300-unit Santa Monica submarket, at $2,358 per month, is once again the highest in metro LA, according to Reis. The third quarter vacancy rate is 3.3%. Rents rose sharply here during the quarter, with the average asking rent up 1.5%, and the average effective rent up 1.6% to $2,234 per month. The quarter accounts for nearly all of the increase from a year earlier. Vacancy has been essentially flat in Santa Monica for a year.

Central Los Angeles

The 14,065-unit South/Central Los Angeles submarket has a vacancy rate of 3.6%, and an average asking rent of $901 per month, the second lowest recorded by Reis. In the third quarter the vacancy rate increased 20 basis points, but it is unchanged from a year earlier. The average asking rent rose 0.6%, and the average effective rent increased 0.5% to $875 per month during the quarter. The year-over-year increase is 1.0% by both
measures.

For the 44,402-unit Wilshire/Westlake submarket, Reis reports a third quarter vacancy rate of 3.9%, and an average asking rent of $1,207 per month. The vacancy rate was fell 20 basis points in the third quarter, and is down 70 from a year earlier. Both the average asking rent and the average effective rent rose up 0.6%, the latter to $1,184 per month.

In the well-established pattern of gentrification moving out from a central core, much of the multifamily development action is in this submarket near Downtown. In the 8,780-unit Downtown submarket, the vacancy rate is 5.8%, and the average asking rent is $1,809 per month, fifth highest according to Reis.
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You don’t have to be Chinese to celebrate Chinese New Year. Also referred to as the Lunar New Year and Spring Festival, Chinese New Year is the most important of traditional Chinese holidays.  It marks the end of the winter season, and the ‘festival’ begins on the first day of the first month in the traditional Chinese calendar and ends with the Lantern Festival which is on the 15th day. Now don’t refer to your Gregorian calendar to get your dates right — doesn’t work… This celebration began centuries ago and is scheduled this year for Monday, January 23, 2012 — the year of the Dragon.    Where is the best place to be?  Hong Kong would be my vote.  Plan B would be Beijing!

Interestingly, the Chinese have figured out the right foods to eat on New Years to guarantee wealth, happiness and luck for the coming year — bamboo shoots (symbolic for wealth); black moss seaweed (symbolic for wealth); dried bean curd (happiness); fresh tofu is not served because the color “white” symbolizes death and misfortune; chicken (happiness); eggs (fertility); egg rolls (wealth); whole fish (prosperity); Chinese garlic chives (everlasting, long life); lychee nuts (closed family ties); noodles (long life); oranges (wealth); peanuts (long life); pomelo (abundance and prosperity); lotus or watermelon seeds (having a large number of children); and finally, tangerines (having a lot of luck)!

Every Chinese restaurant worth their chopsticks will have a broad selection of these items on their New Year’s menu….and Monterey Park is the place to be if you can’t get to Hong Kong or Beijing! G?ng X? F? Cái. Happy New Year!

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There may be a way to derail the foreclosure juggernaut

One the biggest factors in dragging down home prices — and your equity — are the glut of foreclosed homes that keep coming on the market.  There are an estimated 4 million homes in the foreclosure pipeline — homes that have begun the three-step foreclosure process combined with those already past the “save me” mark — which is over 2 million.  These homes have been an albatross around our economy’s neck, but federal officials hope to launch a pilot program in early 2012 to convert government-owned foreclosures into rental properties.

The program, which was cited by Federal Reserve Chairman Ben Bernanke last week as one way to address the housing crisis, would sell foreclosed homes now owned by Fannie Mae and Freddie Mac to investors in bulk. The properties would then be converted into rentals.

Me thinks this is an outstanding way to keep these foreclosed properties off  the market, thus helping to preserve the ‘normal’ market price for your home.  When bank-owned homes come into our neighborhoods (yes, even in Beverly Hills or Brentwood or Bel-Air), they can dramatically affect the comparables, which are used by appraisers and buyers to determine the ‘true’ value of a home.  These devalued properties, in turn, affect your home’s price, and obviously, lessen your equity.  These devaluations can amount to as much as 30% in some Westside neighborhoods, and in the inland California counties, the price reductions (re: equity) can amount to more than 50%.

The initiative began back in August, when the Federal Housing Finance Agency, the Treasury Department and the U.S. Department of Housing and Urban Development announced they were seeking suggestions on ways to dispose of repossessed homes now owned by Fannie Mae, Freddie Mac and the Federal Housing Administration.

In addition to getting the properties off the government’s books, officials are hoping putting the homes back into productive use which will stabilize neighborhoods and housing values. Also, it is looking to expand the supply of rentals, which are increasingly in demand.

The agency is not releasing details on how the rental program would work, instead saying it is “proceeding prudently but with a sense of urgency to lay the groundwork for the development of good initial transactions in early 2012.”
Administration officials said they are continuing to work with the agency to develop the program.  Stay tuned — this could be a positive program to stave off future foreclosed homes negatively impacting our home prices and equity.

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2011 is history….and it ended on a relatively high note.  What will 2012 bring us?

I always am nervous about the monthly stats I receive from the Combined Los Angeles Multiple Listing Service (CLAW) — our semi-official tracking organization that handles the goings/comings of our residential real estate market.  I have to confess I don’t always ‘trust’ these numbers — because we have seen in recent years there is a tendency to double record home sales (two registered sales for the same house by different agents involved in the transactions), and these have skewed the median sales prices which many of us count on as the barometer of how we’re doing.  They have promised to be more diligent about keeping these double recordings out of the system, but I have yet to see them make that change so I have my own ‘methods’ of deleting these double-dip sales.

December 2011 stats are in:  And what we find that year over year, overall sales for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — are up 9% over 2010.  We sold just under $2 billion — $1.998 billion to be exact.  And that’s over the 2010 year-end number of $1.835 billion.  So, the market has made some progress in overall sales volume, but this increase also has an asterisk next to it: Last year’s total sales included some rather large transactions that made a bigger-than-normal impact on the #s — including Jennifer Aniston’s home which sold for $39 million and the Aaron Spelling estate, which sold for $85 million after being on the market for nearly three years at $150 million.  But one must always remember, too, that every year, we have these anomalies in some form or another — we have many large estates on the Westside, especially in Beverly Hills and Bel-Air, so when these $20-million-plus homes are sold, they greatly affect the ‘median sale prices’….but over time, these all even out, too.

Median sales prices are the key to understanding the market rather than looking at short trends (like from month to month), and the year-end numbers continue to show a steady market – one that is holding its own.  Beverly Hills, the community with the highest median sales price on the Westside, was down 10% over 2010, at $2.863 million for 2011, compared to $3.181 million for last year.  Beverly Hills Post Office was up 12% over 2010 — with a median sales price of $2.050 million vs. $1.850 million for 2010.  Bel-Air stayed even with 2010 median sales prices — $1.609 million for 2011 vs. $1.600 million for 2010.  Brentwood inched up 4% in median sales price over 2010 — with $1.793 million vs. $1.722 million for 2010.

Beverly Hills Post Office ended 2011 on a high note, however — with an 84% increase in median sales price for December 2011 over November 2011.  And compared to the previous year, December 2011 #s for BHPO were 13% ahead of December 2010.  Likewise, Brentwood showed a 26% increase for December 2011 over November 2011; and a 28% increase for December 2011 vs. December 2010.

What does this tell us?

We did make progress over the previous year — still not back to where we were four years ago….but we’re slowly climbing our way back out of this hole we’ve been in.  The volumes indicate that buyers are applying for loans and getting  them.  There are enthusiastic, active buyers who are coming to Open Houses every Sunday, and that’s the best indicator for where we are right now.  My business for the 4th quarter was the best for all of 2011, and quite frankly, because of the surge in real estate spending during the months of November and December, I feel confident that this trend will continue through the end of the year.

While you may read about the softening of home prices throughout the US, our #s in the four communities I report on clearly indicate there is a resiliency and strength in our ‘product’.  We have the best residential real estate product in the nation, if not the world.  Who can compete with the quality of life of Beverly Hills, Bel-Air, and Brentwood?  Few areas can.  And that’s why we’re seeing more foreign buyers who have cash to spend now.  Everyone who has researched real estate as an investment damn well knows that our market is one of the best investment areas on the Planet.  We prove it — in good and bad times.  So cheer up.  We’re making progress.

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In case you haven’t heard — your kids need a ‘small loan’.  Mom & Dad banks thriving today.

There’s a new bank in town……The Bank of Mom & Dad.  Perhaps you’ve heard of it.  More and more kids are turning to the nation’s most popular bank that offers low-interest (or no interest) loans….who will listen to your pleas for a down payment….and who will hand over the funds and put their arm around you….”you are just like my son.  Oh, you are my son!  Even better!”

About a third of first-time buyers in 2011 got either a gift (26 percent) or a loan (7 percent) from their families to help finance their home purchases, down slightly from 2010, but consistent with assistance levels seen during the last decade, according to data from the National Association of Realtors (NAR).  This isn’t surprising news to most of us, and yes, I will confess that I went down this road to make my first real estate purchase in the 80’s,  and I  know  many of my friends and associates who have either gone to Mom and Dad or are Mom and Dad.

In November, 2011, all-cash purchases among first-timers hit a high of 13 percent, according to Guy Cecala of Bethesda, Maryland-based Inside Mortgage Finance, a mortgage industry newsletter publisher and researcher. That’s up from 6 percent in 2009, when IFM first began tracking it. While the company’s surveys don’t ask about the source of cash, Cecala said that when first-time buyers buy outright, it’s likely their parents who are purchasing on the children’s behalf.

What’s encouraging these all-cash purchases now? Home prices are way down – with the median price in November 2011 at just $164,200, down 3.5 percent from a year ago, according to NAR. Mortgage interest rates, too, remain at all-time lows. According to mortgage researcher HSH, the average rate on fixed 30-year loans fell steadily from 5.1 percent at the start of 2011 to 4.09 percent in December.

As a real estate agent in a price range that usually starts at $1 million, we are still seeing young parents who have the down payment — or even the full amount — in their pockets and are key to our recovery.  They play an important role in the lower end of our market — and we welcome them with open arms.

Indeed, in some markets, without parental help, many first-time buyers wouldn’t qualify for the best rates or even a loan on the types of property for sale. To qualify for loans backed by Freddie Mac or Fannie Mae, borrowers need at least a 740 credit score and a minimum of 20 percent down payment — or else they’ll pay private mortgage insurance and additional “risk-based pricing” fees on their loan, IFM’s Cecala says “As the government rethinks the role of the two mortgage giants, these tighter lending standards may be here to stay, or be tightened further”.

To be sure, many baby boomers want to help. More than a fifth of them have co-signed a home loan for an adult child or given a gift or loan to help them buy, according to a September survey by Better Homes & Gardens Real Estate and
Research Solutions Inc. More than half of those earning at least $75,000 said they wanted to help their children finance a home purchase.  If you are in the position of considering either giving or receiving a private money loan, please check with your financial advisor for all of the “ins and outs” of the IRS requirements as well as tax implications before you get too far down that road.

It is also advisable to work with an outside party to draw up a formal loan agreement and repayment plan, and to record the loan locally as an added lien against the property. Doing so makes the adult child accountable but also turns the interest on the intra-family loan into one that’s tax-deductible as mortgage interest.

In these challenging times, the real estate business has always had the Mom & Dad Bank — it’s just in these days when we have such sophisticated tracking technology, we’re seeing it more transparently than ever before.  After all, if you’re a seller, you really don’t care if the money comes from Mom & Dad Bank, do you?

Happy Parenting…..

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Non-food uses for olive oil

Our use of olive oil dates back prior to 3500 BC and today over three quarters of a billion olive trees are cultivated around the world. One of the amazing things about olive trees are the conditions in which they can grow. While originating from the Mediterranean, there are thriving olive industries in many countries, including Australia, and I’ve seen them thrive in some very harsh conditions over here.

Olive oil grades

In case you’ve ever wondered about the various olive oil grades, here are a few of the common ones:

Extra-virgin: comes from the first pressing of the olives; the best quality; Virgin: has an acidity less than 2% and no refined oil content; Pure olive oil: Usually a blend of refined olive oil and virgin olive oil. Refining is carried out using charcoal or other chemical filters; Extra light: More of a marketing term than a grade. Usually highly processed, may be mixed with other oils, or may be just pure olive oil grade. The “light” refers to flavor rather than caloric content; Pomace, cake or lampante: not intended for human consumption, and generally used for industrial purposes, such as soap making or lamp oil.

Non-food usage tips for olive oil

We’re familiar with olive oil in relation to cooking, but there are so many other ways it can be used; often avoiding the need to use synthetic chemicals, compounds and substances that aren’t very environmentally friendly. For these tips, you don’t need to use the best grade of olive oil.

- After polishing copper or brass, rub it with a little olive oil to slow down the reoccurrence of tarnish
- Can be used as a stainless steel cleaner; apply sparingly
- Rub olive oil into wooden cutting boards to help prevent cracking, repel staining and marking
- Remove paint from hair or skin by dabbing a cotton ball dipped in olive to the affected area
- Use it as an alternative for those squeaking hinges

- Olive oil can help with stuck zippers – use a cotton bud to apply
- Apply a little olive oil to your shoes to restore their shine
- Old leather can be made more supple by rubbing in olive oil (spot test first)
- Coat garden tool blades with a thin layer of olive oil to prevent dirt sticking to them and to help prevent rusting. This works really well!
- Mix one part lemon juice with 3 parts olive oil to make wooden furniture polish

- Rub into to fingernails before and after manicuring
- A small amount of olive oil applied after shampooing can substitute hair conditioner.
- Extra light olive oil can be used as a massage oil
- Olive oil can replace shaving cream or shaving oil
- Dip a razor into olive oil after use to prevent the blade rusting
- Can be applied to chapped lips to relieve the dryness
- Use as a makeup remover

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As for me, the New Year has started out with a bang!  We had an offer on one of my listings on New Year’s weekend (unfortunately it did not go), but seems to have set the pace for what it looks like will be a very busy and active year for me.  I have a wonderful new listing in Mountaingate and have some listings in both Bel Air Crest and Bel Air Park coming up in the next month.  Also all of my properties that I have leased are renewing and some have expressed the desire to purchase these homes, which the landlords are all agreeing to.  Once again, I am so grateful for all of you who stop me on the street to tell me how much your enjoy reading the SchifferLine.

Perhaps a good-news present under our tree will be the recent poll showing that Americans are happier this holiday season than just three months ago according to Gallup’s confidence index (-39) which is the highest mark since optimism began recovering from a summer slump that began in July. The new seasonal cheer may be good for retailers and holiday spirits, too, but Gallup aptly pointed out that we have become more cynical, too, while the economy lingers and stumbles along, frustrating many. We’re still below the minus 32 rating recorded the same week a year ago. The highest recent rating was recorded in early 2008 at plus 7! So, perhaps there is good news — even if we’re in negative #s. There isn’t much we don’t or can’t measure these days — just take a look at how much more expensive the 12 Days of Christmas has become……

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Twelve Days of Christmas just got more expensive….

I know many of you put on your Christmas shopping list the 364 items that make up “The Twelve Days of Christmas” — from partridges and pear trees to seven swans-a-swimming. If you’re in the mood again this year, you’re in a for a big surprise (or maybe not): 2011′s list will cost you $101,119.84, the most expensive total ever according to PNC Wealth Management, which for some strange reason (publicity) tracks this every year for us.

Compiled on this 364-item list in this classic carol, the Twelve Days of Christmas Index (yes, that’s what they call it) is up 4.4%. Birds this year were a pricy proposition — cost of those seven swans-a-swimming soared $700 or 12.5% to $6,300, which is the largest dollar increase out of the song’s collection of gifts. A partridge is now 14.2% more expensive at $15….two turtle doves cost $125, a 25% increase because of the rising cost of feed and availability. Five gold rings were actually cheaper this season as high prices for the metal drove down retail demand by 0.8%. And if you’re wondering about your Thanksgiving Day dinner — it was 13% more expensive in 2011 than last year.

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Three special holidays during the holiday season……

This is a busy time of year for just about everyone — scurrying to get last-minute shopping done. So like many of you, I love to share the holidays with friends and family. Traditions seem to grow or stay the same each year — but for most of us, we will be celebrating any one (or all three) of the traditional holidays — Kwanzaa, starts its festive period December 26 and runs through January 1; Chanukah — begins December 20 and ends December 28; and Christmas, is celebrated on December 25, although we all know that Christmas selling season began in August when the big box retailers like Wal-Mart and Costco had all their Christmas stuff in the aisles. Whatever is
your choice (or non-choice), I want to wish you a wonderful Happy, Healthy Holiday and festive New Year.

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Have you ever wondered where the story of Santa Claus came from?

The American version of the Santa Claus figure received its inspiration and its name from the Dutch legend of Sinter Klaas, brought by settlers to New York in the 17th century. As early as 1773 the name appeared in the American pressas “St. A Claus,” but it was the popular author Washington Irving who gave Americans their first detailed information about the Dutch version of Saint Nicholas. In his “History of New York”, published in 1809 under the pseudonym Diedrich Knickerbocker, Irving described the arrival of the saint on horseback) each Eve of Saint Nicholas. This Dutch-American Saint Nick achieved his fully Americanized form in 1823 in the poem” A Visit From Saint Nicholas” more commonly known as “The Night Before Christmas” by writer Clement Clarke Moore. Moore included such details as the names of the reindeer; Santa Claus’s laughs, winks, and nods; and the method by which Saint Nicholas, referred to as an elf, returns up the chimney. (Moore’s phrase “lays his finger aside of his nose” was drawn directly from Irving’s 1809 description.)

The American image of Santa Claus was further elaborated by illustrator Thomas Nast, who depicted a rotund Santa for Christmas issues of Harper’s magazine from the 1860s to the 1880s. Nast added such details as Santa’s workshop at the North Pole and Santa’s list of the good and bad children of the world. A human-sized version of Santa Claus, rather than the elf of Moore’s poem, was depicted in a series of illustrations for Coca-Cola advertisements introduced in 1931 that introduced and made the red Santa Suits an icon. In modern versions of the Santa Claus legend, only his toy-shop workers are elves. Rudolph, the ninth reindeer, with a red and shiny nose, was invented in 1939 by an advertising writer for the Montgomery Ward Company.

Here also is a little link to one of the wonderful holiday songs … you can play it while you read this last edition of the SchifferLine for this year…..

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Something to cheer about? Perhaps….but real estate continues to challenge us all

It would be nice to wake up in the morning and discover that California’s unemployment fell to even under 10%….that the stock market was rocketing skyward….that there was peace everywhere in the world….and that real estate prices were near our record 2007 and 2008 levels, restoring the equity many of us have lost during the past three years. Yes, it would be nice. Just not this year, right?

The good news on the Westside is that real sales volumes have held their already-achieved increases over last year — and for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — year-to-date sales (through November 30) are still up over 13% at $1.833 billion, compared to $1.620 billion in 2010. We have seen several large transactions that account for much of the $213 million increase, but still, we’re up in three out of the four communities in total volume.

One of the most important battlegrounds in the Westside real estate market is the tracking of median sales prices. And although large sales can greatly influence our month-to-month statistical analysis, these sales tend to even out the monthly averages over time. It gets very frustrating to see unreasonable bumps in median sale prices for one of my four communities, because I know that one or two large sales can really give buyers and sellers an unrealistic view of home prices in their community.

Beverly Hills continues to lag behind 2010 median sales prices at 10% south of 2010 #s, which is where BH has been for the past six months; Beverly Hills Post Office has consistently performed well this year, and remains 11% ahead of 2010 MSP through the end of November 2011; Bel-Air has moved back just a touch — remaining even with MSP for 2011 vs. 2010; and finally, Brentwood, which suffered so much in this median-sales-price category for 2010 is still ahead by 2% over last year through November 30.

Recent monthly stats do not bode as well as our year-to-date #s, however. Beverly Hills was down 5% for November 2011 compared to November 2010 — and was down 17% when comparing October 2011 to November 2011 sales (this, of course, accounts for the negative 10% median sales price comparison with YTD numbers for this year vs. 2010). Beverly Hills Post Office, which continues to hold strong for its median sale price at 11% over 2010, was down 17% when comparing November 2011 to November 2010; and down 8% when matching November 2011 #s with October 2011.

Bel-Air, however, was down what appears to be a huge # — 40% — when comparing median sales prices for November 2011 to same month 2010; but was up 23% when tracking November 2011 to October 2011. And finally, Brentwood was up 7% for November 2011 over November 2010; while down just 5% when comparing November 2011 to October 2011.

Our final selling price compared to original listing prices still remains at around 84% — the same figure recorded in 2010 for this time of year. Final sales price reflects a buyers’ market still — which is understandable in our economic climate today.

If you are really concerned about the value of your home in today’s market, I will be more than happy to give you a thorough price analysis of your home based on comps and other statistical information I can provide you. Of course, there is no obligation for this….so please call me.

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So what does this all mean?

Let me share with you the feeling in the professional real estate trenches: At our Coldwell Banker office in Brentwood, you can tell when the business soft, terrific, or just plain rotten. Today? It’s buzzing — we’re seeing more qualified prospects at our open houses — which are humming today. We know that if you’re a seller — a real seller with a competitively priced home — you’re going to sell your home, fairly quickly. Buyers are real — and they’re coming from all over the world to Southern California, particularly to the Westside. We have the best communities, the most beautiful neighborhoods, and superior shopping, culture, and educational facilities in the world. What’s not to like?

I’m busier than ever — had two sales last week, and well, I’m very encouraged about 2012. We have a lot still to be thankful for. Cheer up. It’s the Holidays!

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What happens when you lose power? Be prepared, the Boy Scout Marching Song

Tom Lehrer, the famous balladeer from Harvard in the 1950s said it best: Be Prepared. That’s the Boy Scout Marching Song. With the severe winds howling down the canyons at speeds of up to 147 miles per hour in Pasadena (true story)….we experienced power outages throughout the Westside, but not like in Pasadena, where I have friends who were without power for five and six days! And it was cold, too. Santa Ana winds don’t always mean hot winds and high temperatures.

So, what do you have to do to Be Prepared? In reading the gamut of stories about what our friends had to go through during the power outages; the clear winner was: #1 Batteries! Have plenty of all sizes (AAA, AA, D, Cs) on hand; #2 Keep you cell phone charged. Charge your cell phone whenever and wherever you can (restaurants, movie theaters, car — they all chipped in to help in Pasadena) — plus have a phone on hand that doesn’t require electrical charging (that’s a must). #3 Manual can opener; #4 Cash; #5 Keep your car filled with gas at all times; #7 Extra blankets — in this cold time of year, you can’t stay warm in bed if you don’t have these extra wool blankets; #8  Have warm friends who will invite you for dinner; and let you charge your laptop and cell phones, and perhaps even an extra bedroom; #9 BBQs make great stoves — so get extra charcoal or propane tanks filled if you need them; and finally #10 — keep your friends and family informed of your whereabouts and condition. #11 – Have plenty of emergency lighting ready in your house.. .those flashlights that plug into the wall are great, but we need to keep checking the batteries.  #12 – Have plenty of canned food and water available for humans as well as our beloved pets

******************************************************************************************************************************************** This is some information from a recent article in the LA Times re wind damaged trees.  This information was provided by arborist Rebecca Latta.

Question: Is there any way to save a tree that has been uprooted by the wind?

It depends on how old the tree is and how much damage there is. If it’s a young tree, with a fair amount of the root plate (the anchor roots) intact, then you can sometimes re-stake or re-guy (rewire) it. I have seen trees re-root. With older, larger trees, it’s more difficult. If there is an uprooted street tree in the front yard and it looks like the root systems are in good shape — no big circling roots or crossing roots that may have caused it to fail in the first place — then it could be a good candidate. If severed roots can be cut cleanly and put back in, sometimes you can establish new roots to go back out into the soil. It’s fairly involved.

Are there certain trees commonly  that are more susceptible to falling?

For street trees, I see a lot of pine, large pine, typically those that have a big sail, a fair amount of dense foliage. One of the common ways that trees are pruned here is that they are center stripped. That means taking all the center foliage out, and that encourages the tree to become very dense in the center, making it more susceptible to failure. When the wind hits, rather than going through, it’s like a wall. I saw a lot of cedars in Altadena that failed in the parkway because of root pruning probably done 20 or 30 years ago, when they were making curbing gutters or sidewalk improvements. I saw eucalyptus, mostly big branches dropping. Quite a few Chinese elm. Liquidambars.

Are there some trees that are surviving better than others?

That’s a hard question. Wind damage is often a factor of the age of the tree, decay and how it’s been pruned — or not. Some species don’t seem to drop branches as easily. Oaks seem to be able to take wind, particularly if they haven’t been center stripped. An oak with a full canopy that hasn’t been pruned badly seems to do pretty well. Older oaks go over because people have been watering the ground around the tree, the lawn. Lawns and oak trees are not a good combination.

What should you do with a tree that has a branch torn off?

You can cut it cleanly with a sharp, sterilized pruning tool back to another branch that is at least one-third of the size of the one you are taking off. Or you can take it back to the trunk if there is nothing else. If the broken branch is left hanging, it may fall off at some point. If the branch is not hanging but has a significant crack, that also can be a problem.

Can you put in guy wires or posts?

You can. It depends on the tree. I have seen leaning trees with a post installed underneath; these trees have done well. I prefer to use posts over guy wires because I’ve seen guy wires done badly. They have to be adjusted yearly. I don’t use cables or guy wires in trees very often. If the tree is leaning and it doesn’t look like it’s going to fall, you might put a post under it. The post has to be rated for the amount of weight and has to be designed with a sizable footing so it doesn’t tip. Trees are heavy. If you have a smaller tree that is leaning and it is possible to right it, do that. If it’s a bigger tree, leaning because of the wind, and it looks like it might reestablish itself in that position — and some trees do — that’s when you might want to have an arborist come look at it.

Is the danger to trees structural? Or is it a matter of long-term health?

Both are true. It can be long-term structural. If you have a big crack you can’t see because another tree hit it, that’s an invisible point of weakness inside the tree. Sometimes it will manifest itself in decay later on, a bump that comes out. Right now, the issue is structural. Do other trees that haven’t failed have the potential to fail? Are there trees that can be restored with a pruning? Or do they need to be removed?

Is a tree safer if it has lost limbs in the center?

Not necessarily. If the center has been blown out of the tree, then that means that you may have lower branches that are now big and heavy, so the tree might need a crown restructuring.

What should I look for when I’m checking my trees? Are there things I should look for on the ground?

Look to see if there is cracking in the soil and if there is any pulling of roots or mounding on the side of the tree. If you see mounding and the tree is starting to lean, the tree could be moving. Cracks on the trunk of a tree that is leaning, especially if the crack is on the leaning side, are of great concern. That’s bad. Sometimes a tree starts leaning after another tree falls. Sometimes when you change the environment, you will see things start to move. That’s when you want to pay attention: When trees adjacent start snapping out because they have lost their support. You can also look for unusual things on the tree — bumps, sapping. If the tree puts out dark sap on the trunk, that’s a sign it’s stressed.

Is there anything that people can do now for their healthy trees to protect them from future wind?

Prune in the right season. Pine trees and cedars need to be pruned in the winter. Make sure you don’t remove center foliage that is necessary for structural reasons. Concentrate on the outer two-thirds of the canopy. Don’t let people center strip or top. Those cause wind failures. You have to make decisions about how to prune the tree so it doesn’t drop more branches over time. If someone is going to come in and prune your tree, they should know why they are pruning your tree — not just reducing the height. Trees need the ability to move in the wind. If you shorten a tree, you actually make it more of an immovable object. It is better to have the tree pruned properly and have evenly spaced branches and leave foliage in the center of the tree rather than topping or center stripping. That’s the lazy man’s way to crown. Be there when people do the pruning and make sure they are not topping. Make sure whatever pruning they are doing is an effort to improve the structure of the tree to avoid limb failures.

If a tree has come out and you want to put in a replacement, should you take out the entire old root system?

I would strongly recommend it because there are some fungi that can invade the old stump, mostly oak root fungus. If you can get the old stump out without damaging other trees — remember the root systems of trees are interconnected — do that. Or plant the new tree away from that location if possible. When homeowners are replacing trees, there are some guidelines on how to select trees in the nursery.

Is it better to wait until spring?

Actually, the time to plant here is between October and March. Our limiting season is the summer. You want to get root systems established before the heat of summer. You can also buy bare-root trees now and then you know exactly what you’re getting. You can see it. If the tree is sold in a container, you can’t really see what the roots are doing.

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With this the last issue of The Schiffer Line for 2011… I want to once again take the opportunity to thank you for the opportunity to work with you and for all of the wonderful compliments you have given me.  I hope you have a wonderful holiday and a healthy, happy New Year. I look forward to seeing you next year.

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Black Thursday, Black Friday, Cyber Monday — records set, but it ain’t over

Shopping hordes leaped from their Thanksgiving dinner tables and began a literal stampede over the four-day Black Friday shopping period, which now is a four-day event (not just three). Retailers were mildly enthusiastic about the record $52.4 billion consumers shelled out over last weekend, which is up 16% over last year’s $45 billion, according to the National Retail Federation (NRF). More shoppers showed up as well — setting another record of 226 million consumers who visited stores from Thursday through Sunday, up from 212 million. Of course, the question is: Are these unduplicated shoppers or do we have the shopaholics going back again and again?

Bargains were the lure, especially electronics — video game consoles, LCD televisions, tablets according to a review of other ‘non-hot’ sale items, discounts averaged less than 15% across the board in most large retailers. Retailers have learned their lessons from last year — don’t go deep too early. And apparently they didn’t.

“It’s clearly a great start to the season, but,” warns Sherif Mityas, with the retail consulting firm of A.T. Kearney, “but we still have five weeks until Christmas.” The ability of retailers to keep up with this moment is the key, he stated. Shoppers may be worn out or out of money now that the first, big binge has taken place. “Retailers have to get people back into the stores and back online after this weekend.”

More importantly, how does this retail story play against the larger health issues of our economy? In a recent survey by Bankrate.com, only 13% of Americans feel more secure in their jobs now than they did a year ago. The strong holiday sales doesn’t guarantee those strong results will hold over for the next several weeks stated Greg McBride, Bankrate’s senior financial analyst. “Consumers are still worried about their savings, job security, debt and net worth,” he added. In the same survey, McBride pointed out that 42% of Americans said they intended to spend less this holiday season compared to last year, while only 10% of Americans said they would spend more.

We are tracking at 2.8% growth rate for November and December — “it’s good, but you’re not popping champagne corks,” Mityas said.

I don’t know about you, but I avoided the mad rush, the pepper spray, and the parking nightmare in the Mall lots. But is there ever a time during this holiday season when we are not dealing with traffic, finding a parking space, and getting to your favorite stores in time to get everything on your list? Of course not! We are a consumer nation, to be sure, and this holiday season appears to be off to a good — if not, great — start! As they say, “….it’s too early to tell!”

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How Did We Get to Black Friday Anyway?

According to Wikipedia Black Friday is the day following Thanksgiving Day in the United States, traditionally the beginning of the Christmas shopping season. On this day, most major retailers open extremely early, often at 4 a.m., or earlierr, and offer promotional sales to kick off the shopping season, similar to Boxing Day sales in many Commonwealth Nations. Black Friday is not actually a holiday, but some non-retail employers give their employees the day off, increasing the number of potential shoppers. It has routinely been the busiest shopping day of the year since 2005,] although news reports, which at that time were inaccurate, have described it as the busiest shopping day of the year for a much longer period of time.
The day’s name originated in Philadelphia, where it originally was used to describe the heavy and disruptive pedestrian and vehicle traffic which would occur on the day after Thanksgiving. Use of the term started before 1966 and began to see broader use outside Philadelphia around 1975. Later an alternative explanation began to be offered: that “Black Friday” indicates the point at which retailers begin to turn a profit, or are “in the black”.]

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Cyber Monday has greatest day in history

Cyber Monday 2011 was the heaviest online spending day in history, with the holiday season as a whole up 15 percent year to date to $15 billion this season-to-date. Americans went a bit crazy this year — as the average order increased 2.6 percent and mobile traffic to retail sites was up 3.9 percent over a year earlier. This translates to 33% increase over 2010 Cyber Monday which is tracked annually by IBM. Other sources (ComScore) pegged the increase over 22 percent. Online spending reached $1.25 billion — a record for online e-commerce sales.
Retailers and brand marketers are going wherever the customer is — and the customers are taking their credit cards out of their wallet and doing their Holiday Clicks. Interestingly, though, half of all Cyber Monday sales were done by consumers while still at work! What do employers think of that? –. Happy Shopping wherever you are!

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Here’s how to start the Holiday Season

This is always a special time of year – so it is also a time to appreciate the many blessings in our lives — from our family and friends and from so many others in our community and work. It is also a time to renew our spirits and souls, especially as we head into the holiday season and a new year. John Ciolino, one of my wonderful associates and mortgage consultants with whom I’ve worked with for years at Coldwell Banker and First Capital Financing, reminds us to consider dedicating specific times of the day or week to family activities that focus on the blessings of the season.
John recommends a website — Kaboose.com — which can help you find a list of special holiday activities to celebrate during our individual choice — Chanukah, Christmas, Kwanza, and New Year’s. You can easily find the right activity for your family by simply downloading a selection of
crossword puzzles, mazes, coloring pages — all for free and you can print them, too.

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Europe’s woes becoming our woes, too?

In a recent article from Iconowatch.com , our ties to Europe’s economy is clearly identified — so goes Europe, so (can) goes America. If global news is anything to go by, Europe isn’t having its finest hour right now, with economies failing, nations backbiting and some consumers raging. But while the politicians bicker about fiscal responsibility and the euro zone dream, more European consumers are quietly finding ways to cope with straitened times.

“Austerity” may be the watchword for politicians, but consumers are determined to avoid the Depression-era privations it suggests. To keep themselves in the style to which they’ve become accustomed, they’re making every purchase work harder, and demanding ever-greater value for money. Anti-waste campaigns and high food prices are taking effect as consumers cook and eat more wisely, and increasing interest in private-label brands shows that Europeans are getting savvier at the supermarket.

But in an unexpected combination of two of our Top Trends, “People Power” and “The Save Me Economy,” Europeans are also increasingly relying on their friends and family to keep home fires burning. Figures from UK insurer Aviva suggest that 31% of Britons are subsidizing their nearest and dearest by L422 a year (Guardian, 16 November 2011). Meanwhile, according to a pan-European study by Fundacion la Caixa, 25% of Spaniards have lent or given money to family members during the last five years (ABC.es, 22 September 2011).

Of course, this is partly down to banks being less willing to lend consumers money, but consumers are increasingly reliant on friends and family across the board. With the recession already forcing young people to live with their parents, and grandparents taking over childcare to help save money, it seems that family interdependency is set to grow further. As the power of friends and family grows, businesses will have to consider not just the influence of one member on another, but the power of a family bloc. Europeans are rightly nervous about the future of their Union as well as the individual economies as the EU leaders try to deal with the overwhelming debt. The good news is that recent political events in Italy and Spain have created a sliver of hope that the EU will eventually work out of this crisis, but it gets down to Germany’s Chancellor Angela Merkel and other leaders in pushing for stronger, more rigid reforms on spending and country budgets. We’ll see.

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Realtors give thumbs up to Congress for re-instating loan limits formula

The National Board of Realtors applauded Congress for reinstating the loan limit formula and maximum cap for Federal Housing Administration-insured loans for two years for FHA loans only. The loan limits for Fannie Mae- and Freddie Mac-backed mortgages will remain at 115 percent of local area median home prices, up to $625,500.

“As the nation’s leading advocate for homeownership, we applaud members of Congress for restoring FHA’s previous loan limits, which will help reduce consumer cost burdens, stabilize local housing markets and allow qualified, creditworthy borrowers to access affordable mortgage financing,” said NAR President Moe Vissi. “The reinstated loan limits will help provide much needed liquidity and stability to communities nationwide as tight credit restrictions continue to prevent some qualified buyers from becoming home owners and the housing market recovery remains fragile.”

The provision reinstates the FHA loan limits through 2013 at 125 percent of local area median home prices, up to a maximum of $729,750 in the highest cost markets. The floor will remain at $271,050..
NAR believes the reinstated loan limit formula and cap change will help make mortgages more affordable and accessible for hard-working, middle-class families throughout the country, not just wealthy individuals or those in costly markets. Nearly two-thirds of buyers who will be helped by the loan limits provision have incomes below $100,000.

“It’s a misconception that only wealthy borrowers benefit from the maximum cost loan limits; middle-class home buyers living in all areas of the country deserve the same access to affordable mortgage financing and the same opportunity to achieve homeownership that home buyers enjoy in the most affordable regions of the country,” said Veissi. The legislative action will have an impact even in communities with loan limits well below the maximum cap; the reset last month impacted 669 counties in 42 states and territories, with an average loan limit reduction of more than $68,000.

The bill also provides for a short-term extension of the National Flood Insurance Program through December 16, 2011. NAR strongly urges Congress to use the additional time to complete work on a five-year reauthorization of the program, which ensures access to affordable flood insurance for millions of home and business owners across the country.

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Traffic Woes on the Westside

As I drove around last night and this morning, dodging the tree branches and other obstacles in the streets, I thought about other issues we have in dealing with the construction projects going on in our “hoods” right now. As you may know, there is a twitter site that provides information on a regular basis as to the changes in the work schedules, etc. Even if you don’t tweet, I do recommend that you google the twitter site, www.metro.net/projects/i-405/construction-info/. They actually recommend that we check every FIVE hours as that is how often their situation changes! I know it is not fun dealing with this situation now, but we will get through it, I promise!

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More on the various aspects of Natural” cleaning products

Among the most common claims found on cleaning products are the following:

•     Non-toxic. This implies that the product will cause no harm to the consumer or environment. However, there is currently no standard definition for the term “non-toxic”, and unless otherwise specified, there is no organization independently verifying the claim.
•     Natural. Though widely found on commercial cleaning products, the term “natural” doesn’t necessarily mean much. There’s no standard definition for this claim in industry, so manufacturers can use it as they please. What’s more, just because something is “natural” doesn’t mean it’s less toxic, or non-irritating. Even cleaners that are safe enough to eat, like lemon juice, can be irritating to the eyes or skin.
•   Environmentally friendly. While this label implies that the product or packaging has some kind of environmental benefit or that it causes no harm to the environment, there is currently no standard definition for term “Environmentally friendly”. Unless otherwise specified, there is also no organization independently verifying this claim.

Biodegradable. This term is somewhat meaningful, but it can be misleading. “Biodegradable”, which implies that a product or its packaging will break down in nature in a reasonably short period of time, has been only loosely defined by the federal government.
•     Be sure to check the ingredient list. Since manufacturers are not required to list all the ingredients in their cleaning products, unless they are active disinfectants or known to be potentially hazardous, it can be difficult to know exactly what you’re buying. And bear in mind that unlike food package labels, when a cleaning product’s ingredients are listed, the order doesn’t necessarily represent relative amounts.
•   Avoid harmful ingredients whenever possible. Certain chemicals found in cleaning products can pose health and/or environmental risks. To minimize these risks and to choose the best cleaners for your household, avoid the ingredients listed
below.
•   Nonylphenol ethoxylates (NPEs). When they’re released into the environment, these chemicals can break down into toxic substances that can act as hormone disrupters, potentially threatening the reproductive capacity of fish, birds, and mammals.
•    Antibacterials. Some antibacterial ingredients may cause skin and eye irritation, and certain types, such as triclosan, now found widely in the environment, may cause environmental harm by contributing to the emergence of antibiotic resistant bacteria. Some studies have also suggested that triclosan could form dioxin, a carcinogen, in the presence of sunlight, and chloroform, a probable human carcinogen, in the presence of chlorinated water. What’s more, there’s a growing consensus that antibacterial household cleaners won’t keep you any safer from infectious illnesses than regular types. These findings may stem in part from the fact that most infections are caused by
viruses, not bacteria. In fact, experts say, it’s not the type of cleaner that matters in combating germs, but the frequency and thoroughness of cleaning; plain soap and hot water are generally enough to do the job.
•    Ammonia. Poisonous when swallowed, extremely irritating to respiratory passages when inhaled; can burn skin on contact. (Note: Never mix ammonia-containing products with chlorine bleach. That produces a poisonous gas.)
•     Butyl cellosolve (also known as butyl glycol, ethylene glycol, monobutyl). Poisonous when swallowed and a lung tissue irritant.
•     Chlorine bleach (sodium hypochlorite). Extremely irritating to the lungs and eyes. (Note: Never mix chlorine bleach products with ammonia. That produces a poisonous gas.)

.   Disinfectants. This is a catchall term for a variety of active ingredients, including chlorine bleach, alcohol, quaternary compounds, and pine oil and ethyl alcohol. They are regulated by the EPA as pesticides and all have some health effects. Most can also cause problems in waterways by killing helpful bacteria.
•    Fragrances. May cause water eyes and respiratory tract irriation. Some products are labeled “fragrance free”, which CU does not consider to be a meaningful label.
•  Phosphates. Can reach waterways and contribute to the overgrowth of algae and aquatic weeds, which can kill off fish populations and other aquatic life. Some products are labeled “phosphate-free”, which is considered to be a somewhat meaningful label by CU.

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What is happening in my personal real estate world?

The monthly Standard & Poor’s Case-Shiller index released on November 30, 2011, showed that all of the California cities in the index posted price declines from August, including Los Angeles and San Diego, which were both down 0.8%, and San Francisco fell 1.5%. Despite these declines, however, home prices in California cities measured by the index are comparatively healthy despite the state’s high unemployment rate. The markets tracked by the index are close to key job centers such as Hollywood and Silicon Valley, which are strong economic engines, and are also near the ocean, where overbuilding has been relatively restrained.
The good news is that I am very busy; I just sold a beautiful home in Mountaingate, and am working with a number of real buyers and sellers. We will have a few properties coming on the market after the first of the year. Please do not hesitate to get in touch with me regarding any questions or real estate needs you may have.

According to the ‘most accepted’ official first Thanksgiving -
at Plymouth, MA, in 1621 — we Americans delightfully relish this annual harvest festival, as it was originally named. It’s a wonderful time to gather friends and family for our traditional turkey (w/stuffing) dinner, although duck, ham and lamb are also growing in popularity. But as the traditional start of the Holiday season, when shoppers begin their feeding frenzy at local malls, it’s also a time for reflection on what we surely should remember — what do we really have to be thankful for? We sometimes forget to remember just what a great country we live in, despite our challenging economic times — it could always be worse. When I was growing up, it was always a fun game we played at the Thanksgiving table to say what we were thankful for that year and going around the table we always had to “play a little of  “can you top this”.

At the top of my “Thankful” list would be my wonderful family, although spread out between Los Angeles, Vancouver BC, and Montreal, and staying connected on Thanksgiving Day is always a treat. And of course, our good friends who also give us their love and support are never far away or forgotten. I am also very thankful for my health and that of my family. I am also very thankful for my clients and their business and for a recent compliment I received on this publication where the gentleman said” I love your newsletter and I can tell that it is not about the money with you”. How lovely that he “got me” like he did.

Our lives are, indeed, quite different from what the earliest settlers in Plymouth 389 years ago had to endure. Imagine they had no electricity, air conditioning, computers, cell phones, and how they survived without the Internet or email is beyond me. Life must have been wonderful, ya’think?

I have often imagined what those first settlers would think of us if they had to fast forward to 2011 and see our world as we live it. “No, Martha,” John would say. “I think we should stay right where we are. Traffic is horrible. They have this cloud that hangs over their cities. And they have this celebration they call ‘Carmageddon’ when they close all the trails for the weekend. Whatever for?”

Happy Thanksgiving!

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Real estate #s we can be thankful for…..sales volume climbs upward – slowly

Several months ago I pointed out that sales volume was up for the year, but it was attributable for some out-of-the-ordinary sales in Bel-Air for the previous period (August, 2011). We have had — as you know — large sales that have exceeded the $20-million-plus mark which have skewed the median sales prices and volumes. I am happy to report that we are now back to a more normal progression of seeing sales volumes grow throughout the four communities I report on including Bel-Air, Brentwood, Beverly Hills and Beverly Hills Post Office.

Sales volumes for these four communities have grown from $1.475 billion (year to date, through October 2010) to $1.713 billion for same period for 2011, a 16.6% increase, and these increases are spread across all four communities. That’s a positive trend.  In Beverly Hills there were 7 sales over $3,000,000 in October of this year vs. 10 in October ’10. For BHPO there were 4 this year, vs. only 1 last year, but it was for $19,500,000.  In Bel- Air we had 3 this year and none last year, and in Brentwood there were 3 this year vs. only 1 last year.
Also, when you compare sales price to original listing price in 2011, the sales price compared to OLP in October 2010 was 60.57% vs. 85.09% today. Of course, those #s from last year reflected large discounts of luxury homes that were overpriced in the first place. The market has certainly righted itself as sellers become more realistic about how to price their homes when they come on the market. Having the right price remains the key to moving from “for sale” to “sold”!

Also, we are seeing a steady improvement in Median Sales Prices in three of the four communities — Beverly Hills Post Office is up 15% for 2011 year-to-date vs. 2010; Bel-Air is up 5%; and Brentwood is up 6% for the year. But the monthly comparison between October 2010 vs. October 2011, we are seeing that Beverly Hills median sales prices continue to be down — 22% from previous year; Beverly Hills Post Office is down 9%; Brentwood is also down — 14%; but Bel-Air is up 27%. The 3 sales over $3,000,000 in Bel-Air were all healthy numbers, $6,750,000, $7,700,000 and $8,400,000.

For the month of September 2011 to October 2011, however there was some slight improvement. , showed improvement — Beverly Hills was up 9%; BHPO was down 24%; Bel-Air was up 7%; and Brentwood was up 3%. I must caution you that these stats are for all of these communities, not just segregated portions such as Bel Air Crest, Mountaingate, etc. The stats for those areas can be somewhat different and must be looked at with that understanding in mind.

Again, as I have cautioned my readers: It’s the long-view on median sales prices that portend the true market conditions — not the monthly anomalies.

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The murky world of foreclosure — it’s Tabloid Time

Stop the presses. Hold the front page. Here’s the headline: “Foreclosures are going to be our doom”! Or something like that. Yes, there are as many as 4 million homes in the foreclosure pipeline in the United Sates, and I’m not going to put my proverbial head in the sand and tell you that foreclosures are not impacting us. They are. But to a much lesser degree than what you see in the screaming headlines that greet you in the morning papers or on TV. We are not Nevada, Arizona, Florida, or the Inland Empire. California is being hit hard by foreclosures up/down I-5, from Sacramento to Riverside.

Mortgage lenders — having gotten through the legal morass they, themselves created — are now becoming more aggressive in pursuing foreclosures. They have to….but to a point. The banks are not totally stupid — they realize they have to moderate the influx of bank-owned homes into the marketplace to preserve as much of whatever equity they have left to avoid a total collapse of the price/value balance in every community across the land. They prefer higher prices to just dumping homes on the market. And they’re trying to be smart about the release of these homes into the neighborhoods, where you have seen in some California communities home values drop by 50%.

I have researched our communities, and what I have found is that there are a fair number of properties (both single family homes and condos) in the “foreclosure pipeline”. The “foreclosure pipeline” includes four stages: 1) Pre-foreclosure where homeowners are late on at least three payments or have some other type of lien filled against it (i.e. mechanics, etc.); 2) Notice of foreclosure; 3) Indebtedness is not cleared and now becomes ‘bank-owned’ and 4) Auction.

According to the Combined Los Angeles Multiple Listing — we have the following properties in this pipeline in these zip codes: 82 in 90077; 131 in 90049; 148 in 90210; 62 in 90211; and 67 in 90212. These include condos as well as single family residences.
Comment: What’s happening in our backyard? Shadow inventory (homes the bank has taken back or is in the process of foreclosure; but not on the market — on their books). They would be included in these numbers.

According to a front-page cover story in USA Today last week, 28.6% of US homes are underwater, meaning they owe more than the home is worth. However, you do have to take some of this information with a grain of salt, and do your research: For example, we had a home in Bel Air Crest that was reported to be in foreclosure when, in fact, the house did not have a mortgage. How could it be in foreclosure? Of course, it can’t be! And another incident was a house that was to have been auctioned in April, but the auction never took place. Go figure! And when you consider that 11% of the homes in the US are abandoned, you get the feeling the problems being faced elsewhere are not going to be resolved soon

I don’t want to make ‘light’ of the foreclosure challenges many homeowners have today — there are many people are genuinely hurting. And yes, we are blessed with unique assets that, in many ways, protect our communities from being devalued like we have seen in other parts of the United States, including California. Just be careful about what you read and don’t jump to conclusions.

If you’re confused about all of this, please contact me my office: Carole Schiffer, 310-442-1384.

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7 BILLION PEOPLE TODAY, 9.2 BILLION TOMORROW

The United Nations estimates that just recently was the day that planet Earth reached 7 billion people. (The US Census Bureau’s population clock, which runs a little slower, put the current number at 6,972,015,442.)  And we think the traffic is bad now…. I cannot imagine what it will be like then!
It’s hard to know just what to make of 7 billion humans. Pro-natalists and optimists say that the world can support many more people than 7 billion. Malthusians raise the specter of famine, war and deprivation. Reality falls somewhere in between. There’s really not much that individuals can do about demographics, but there is something that businesses can do: Plan for the future.

East Asia and most of Europe are aging quickly. China, where every business wants to be today, will find itself with too many elderly and not enough workers within four decades. Japan is practically already there, with Western Europe not far behind. On the flip side, Latin America, Southeast Asia, the Middle East and Africa will still be relatively young in 2050.
Future workers and consumers will reside in those emerging regions. They will benefit from a Goldilocks demographic dividend (a just-right ratio of economically active adults compared to dependent children and elderly) around 2050, when the world will be supporting 9.2 billion people.
It’ll take a while to catch up, but the Middle East and Africa are pulling up from behind. If these regions can keep population at or slightly above replacement and educate all their children (including girls), then they, too, may be having their golden moment on the global economic stage in just another four decades.

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Green recommendations

A growing number of less-toxic commercial cleaning products are now available in stores and online. However, because manufacturers are not required to list all of their ingredients, unless they are active disinfectants or known to be potentially hazardous, it can be a challenge to find the least-toxic formulations.

Your best defense is to carefully read and understand the label warnings on cleaning products, which can be challenging. All household cleaners that contain known hazardous chemicals must carry a warning label that spells out potential risks, along with precautionary steps and first-aid instructions. In general, the more serious the safety warning on a product, the more likely that it poses risks to your health and the environment. Products labeled “Poison” or “Danger” are more toxic than those labeled “Warning” or “Caution.”
Danger -  refers to products that are corrosive, extremely flammable, highly toxic, or poisonous. Commercial toilet-bowl, oven, and drain cleaners often bear this label.
Caution or Warning are catchall terms for many other hazards, so scan for specifics, such as Vapor harmful, Causes burns, or “May be fatal or cause blindness if swallowed.
Irritants refer to substances that cause injury or inflammation on contact.
Corrosives refer to chemicals that destroy tissue.
Sensitizers are ingredients that can cause allergic reactions and chronic adverse health effects that become evident only after continuing exposures.
Chronic Health Hazards may include effects ranging from sterility and birth defects to cancer.

In the next issue I will list the various types of products and their possible substitutions.

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What is happening in my personal real estate world?  First of all I can easily assure you that while I will take some time off for the holidays, I am working and quite hard at that!  I have 5 listings, some of which are more active than others unfortunately. I also have approximately 3 more listings coming up in the very near future.   I am also working with 3 real buyers.  I know that however busy I am now, will give me a good running start for the New Year and I like to give myself that breathing room.

Have a wonderful Thanksgiving Holiday and ENJOY!!!!

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Fall back….it’s time to turn your clock back.

I always thought we changed our clocks back on the last Saturday of October, thus ending Daylight Saving Time (DST). Not so. We changed the DST date in 2007. The official time to make the change this year is 2:00 a.m., Sunday, November 6, 2011. Most of us do it when we turn out the lights and go to bed. And many use this reminder to change the batteries in our smoke and carbon monoxide detectors (good idea). One side benefit is that many bars keep pouring after they reach 2:00 a.m. and then turn back the clock so they can have another hour to keep customers happy. But the really ‘big’ benefit is getting an extra hour to sleep in!
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Celebrating our military on Veterans Day on November 11

World War I hostilities were officially ended at the 11th hour on the 11th day of the 11th month in 1918 when the Germans signed the “armistice.”.
This day was known as Armistice Day, first recognized by President Woodrow W. Wilson. It has been an official national holiday since 1926, and traditionally, there are parades and most federal offices and banks are closed. I particularly love driving by the cemetery between Veteran and Sepulveda seeing all the flags that have been planted on every grave site, it I truly beautiful and very moving. Many communities continue to have Veterans Day Parades with bands playing John Phillip Sousa marching music…..and to this day, Canada, France, and Britain also recognize November 11. It is of note that until 1953, this holiday was officially known as Armistice Day in the US until a fellow named Alvin King in Emporia, Kansas, felt we should honor all veterans, not just those from WWI. With the help of the Chamber of Commerce, and a local Congressman Ed Rees, they persuaded Congress to pass the change and President Dwight D. Eisenhower signed the bill in 1954 officially declaring it Veterans Day.

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In case you missed this, the economy is recovering….

In the latest news from Washington (October 27), economists were upbeat about the 3rd quarter that showed the most solid rate of expansion in a year. Gross domestic product rose to 2.5 percent during the July-September third quarter, “considerably better than the 1.3 percent gain in the second quarter and the miserable 0.9 percent rate of growth for the first half of 2011.” And it looks like the Europeans have cobbled together an economic plan to resolvetheir debt crisis in countries like Greece, Spain, Ireland, and Italy, thus avoiding a total collapse of Europe and a US debt downgrade.

On the real estate front, the latest Case-Shiller Index
on existing US housing prices across the country showed that their index was up (.02%) for August over July 2011. It’s been the fifth straight month that the Index has been up over the previous month. Remember, the recession was officially over in June 2009. But in California, the three major markets covered in this Index showed that Los Angeles’ home prices fell 0.4% in September compared to August, 2011; San Diego prices declined 0.2%, and San Francisco saw a dip of 0.1%. And we are grasping for air over the state’s budget deficits and high unemployment….and with 27% of homes in California under water, our recovery seems elusive. The troubling news seems to hit us square in the face…..every day. October was a much better month than September was.

There are two trends emerging in this continued housing crisis according to Christopher Thornberg, principal for Beacon Economics: Values are declining for homes in distress — those properties that are either foreclosures or cases where the homeowners are delinquent on their mortgages, but other homes are fetching higher prices now. “The biggest problem is not credit, it is not confidence, it is equity,” Thornberg said. “No equity, no move-up buyer; no move-up buyer, you get a slow market.” One of the things I am seeing is that some move up buyers are taking a long time to decide that they want to move and most likely sell their existing home and purchase a new one. The thing they seem to forget is that while the purchase price of the home they want to purchase may be going down, the value of their existing home may be going down as well. Also as we head into the holiday season, I am asked a great deal about when is a good time to put my home on the market. Obviously, we can all be distracted by all of the holiday events, but we also must remember that many times for tax purposes, etc. a buyer or seller needs to close escrow by the end of the year. Also the type of property could impact the timing in that a home that would not be conducive to being a “family home” (for children, etc.), is not as impacted by the time of year as homes where one is thinking of having children registered in school, etc. In essence, there is no bad time to sell your home.

As I reported in the last SchifferLine, three of the four communities I report on — Beverly Hills Post Office, Bel-Air, and Brentwood — have median sales prices that are up over the previous year. Only Beverly Hills is down for the year compared to 2010. But as we have seen during the past seven years I have been producing our bi-monthly SchifferLine, Beverly Hills has always been a leader in increased home values and sales volume, by a large margin.

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How does one keep their sanity in this up/down market……?

As a real estate agent on the Westside for the past 25 years, I have learned this career is fraught with many anxiety-driven events — falling home prices, disappearing equity, higher loan rates, or tighter credit. But I have also learned that the Westside, especially within the communities I report on, has an amazing resiliency not found in many other places on the Planet. We’re not just lucky — we’ve planned and built incredible communities that are the envy of the world….and you know what? The world is coming to our front doors as never before. Foreign buyers are dramatically increasing in our area: They know where to put their money.

I’m a voracious reader of news, observer of the latest financial and real estate trends, and keep my ear to the ground of the neighborhoods I cover. I am in the real estate trenches every day, doing transactions on multi-million-dollar homes with a broad, cross-section of buyers, young and old. To be successful in this roller-coaster market, knowledge is strength. And I always want to operate from a position of strength because it gives my clients a position of strength, too. If I’m strong, my clients are strong.
In drilling down to the core assets necessary to operate successfully in real estate, one must be aware of what’s going on around you….in your neighborhoods….talking with neighbors….reading the daily paper, talking with other agents, networking. One has to connect the dots because you can pick up the Los Angeles Times one morning — as I did last week — and read about the number of homes in the United
States that are under water (26%) and then, the next day, read about the massive # of foreclosures that will continue to hit the market (some 2 million homes in the wings). Did you know that 11% of the homes in the US are abandoned?
Sure, the government is trying to put their finger in the dyke to avoid further collapse, and we all know that the economy must turn on a healthier housing construction industry. But the reality is, new housing construction is not
what is going to have any real impact in Beverly Hills, Bel-Air or Brentwood. What happens outside of our communities has less impact than what is happening right here at home.
We continue to hold our own in terms of real estate sales volumes (even with the previous year after discounting Bel-Air’s out-of-the-ordinary sales increase), and median sales prices are slowly. So, that’s the good news. Bottom line: Don’t panic and slash your wrists when reading about national Indexes or what’s happening in Nevada, Arizona or Florida. Even in California, we have bright spots – we are living in one of them! Stay tuned — I try to give you an objective perspective about our real estate world on the Westside. But if you ever want to just sit down and discuss your personal situation when it comes to buying or selling, I’m here for you.

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Government gets into act to help homeowners fight foreclosure

With hundreds of thousands of homeowners facing foreclosure and an estimated 2 million or more waiting in the wings, US regulators will let qualified homeowners refinance mortgages regardless of how much their houses have dropped in value. The Federal Housing Finance Agency will also enhance the Home Affordable Refinance Program (HARP) by eliminating some fees, reducing others, and waiving some risk for lenders. HARP, which was introduced in 2009 to help homeowners get lower interest rates, was originally limited to borrowers whose mortgages were no greater than 125 percent of the value of their homes. To qualify, borrows must be making on-time payments on loans owned or guaranteed by Fannie Mae or Freddie Mac.

Another new bill is moving through Congress that would allow owners to pull up to $50,000 out of their 401K plans without penalty. The money could be used in a lump sum to pay down the delinquent mortgage balance or to fill shortfalls caused by reductions of household income. It could also be used as part of a loan modification agreement with lenders designed to avert a foreclosure. Put together by two members of Congress from Georgia — Senator Johnn Isakson and Rep. Tom Graves, the HOME Act, as it is called, is just one of the many proposals the Obama administration is considering to resolve the current financial crisis amongst homeowners who are in the middle of the foreclosure process or about to enter it. There are downsides to the program, however, as it relates to future tax and investment contributions.
It seems ‘everyone’ is trying to find a way to work our way out of this mortgage and underwater mess — again, stay tuned!

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COLDWELL BANKER REAL ESTATE SURVEY REVEALS HOME BUYING DIFFERENCES bETWEEN OLDER AND YOUNGER BABY BOOMERS

While Majority of Agents Report Economy is Delaying Boomers’ Plans to Sell Homes, Many Are Still in the Market, Especially for Investment Properties

PARSIPPANY, N.J. (Oct. 11, 2011) – A new survey from Coldwell Banker Real Estate finds that 87 percent of 1,300 agents and brokers polled agree that the economy is delaying baby boomers’ plans to sell their homes. That said, the desire to purchase and own a home, or more than one home, remains strong in this demographic cohort, especially so in the investment market segment. Another 87 percent said they have baby boomer clients who already own or are looking to own an investment property, including 22 percent of agents who report that at least half (50 percent) of their boomer clients either own or are looking to own such properties.

“The baby boomer generation has driven the U.S. economy for years, and like many Americans, they may be anxious

about their next real estate decision,” said Jim Gillespie, CEO of Coldwell Banker Real Estate. “I know baby boomers are a very diverse group and cannot be described in generalities, but our survey clearly indicates that those boomers who are financially secure are actively seeking to buy their retirement home, or a second home, and they are taking advantage of the opportunities and value available in today’s market.”

The survey also underscored that by dividing boomers, which account for 79 million Americans, into two age categories, a more dynamic picture of the real estate market emerges. Here are the additional findings:

Survey Methodology: Coldwell Banker Real Estate conducted an online survey among 1,333 Coldwell Banker real estate professionals across the United States about housings trends for baby boomers. The survey was fielded between September 6 and September 15, 2011.

*Some answer percentages in the above may not total 100 percent, if only the most popular responses are listed. In other cases, respondents had the option to check all that apply, which may mean that percentages total more than 100 percent.

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Halloween comes early….why this can’t be easy!  More tricks than treats.

It was simpler growing up in West Los Angeles when I would dress up for Halloween out the door with friends I would go for “trick or treating”.  I remember knocking on doors and this lovely neighbor would say something, like, “Oh, my, aren’t you cute!”  I would dutifully hold out my paper sack and in would drop a variety of sweet treats — all the stuff I loved to eat.  I particularly remember a funny, special time when we went to a restaurant on the corner of Pico & Beverwil called Willard’s.  They had the best fried chicken around…  We would go to the back door and out would come with a hand and a few pieces of that yummy chicken. Then we would get really bold, run home, change costumes, and come back again for more. I am sure they knew what we were doing, but we were set for our lunches for a week!   Those are the ‘sweet memories’ of Halloween, which is just around the corner.

Halloween was popularized by Robert Burns in 1785 “Halloween”, and traditionally meant the “end of summer”.  Said to have been started by the Scots in the 16th Century, it has been attributed to the “night before All Hallows Day.  When I was younger we couldn’t wait to go “trick or treating” — and that tradition holds forth still, but now I look forward to seeing all of those cute neighborhood kids and their costumes.   But what many of us have come to know, we Americans know how to turn a holiday into a retail bonanza — Halloween is the #2 Retail Holiday in the US — after Christmas.

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Dealing with the today’s market — a challenge

In today’s topsy-turvy world of real estate, I look back fondly on those simpler times when life was not so complicated.  I look at the latest stats from the Multiple Listing Service and shake my head:  September wasn’t exactly ugly, but it was close.  Were the real estate Gods playing tricks on me?  I look at the monthly sales reports that we get at the beginning of each month and scratch my head:  Sales volume is up for the year — always a good sign.  But after looking at this bag of “tricks”, however, I notice that in the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — there are some warning signs that cause me to pause.

For example, sales volume for these four communities through September 2011 are up 17.6%, a great increase over last year, which was not a stellar year compared to….say, 2007 or 2008 before the recession hit real estate hard.  So, on the surface, I like the “uptick” but then realize that nearly100% of this increase comes from just one community — Bel Air, where sales value (year-to-date) was $255 million in 2010 and $450 million in 2011! Total sales volume for the year in these four communities was $1.555 billion for 2011 vs. $1.346 billion in 2010.  Obviously, several large luxury home sales pushed Bel-Air’s volume way ahead of a rather bland 2010.

Digging further, I am not surprised to see that the Sales Price vs. the Original Listing Price stats continue to be stuck in the high 80% range in all four communities — Beverly Hills OLP is 88.6% of the sales price; Beverly Hills Post Office is 85%; Bel-Air is 87%; and Brentwood is the highest at 89%.  All of this continues to support today’s reality that buyers are in the driver’s seat.   In a seller’s market, the OLP #s would be in the 90% range in all four communities.  But these are different times.

While there continues to be active buyers in the market today — we see this every weekend at our Open Houses — we recognize that buyers are much more sophisticated and discerning in negotiating for a new home.  I face this reality every day, yet I find that many sellers are still clinging to the ‘good ol’days’  which are gone.  My challenge is to present the reality of today’s market — not yesterday’s — to my clients about the need to competitively price their home. One of the other newer aspects I am seeing today is that buyers are much more interested in figuring the price on a cost per square foot basis. This is not something that residential buyers generally have done in the past, but has been more limited to commercial property values.

I am very empathetic to homeowners who have seen their equity slip away, and sometimes, they point to the increase in median sales prices — that I report on every month — and they see the monthly increases that they immediately transfer to their own property.  So, it’s important for me (and you!) to not always look at the MLS stats as “gospel” and assume that we’re back to the good ol’days.  We’re not.  Every home, every neighborhood, and every ‘location’ are faced with their own realities each and every day.  We’ve all seen it, and I’m afraid these changing and sometimes volatile conditions will continue to be with us through this year and most likely next year as well.

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So, what are the MLS stats telling us?

As I have said the past, trying to gauge the real estate trends in these four communities is best viewed by the year-to-date median sales prices, which level out the monthly vagaries.  Through September 30, 2011, Beverly Hills was down 5% in median sales price at $2.957 million; Beverly Hills Post Office was up 11% through last month at $2.075 million; Bel-Air was up 3% at $1.650 million; and Brentwood was up 9% at $1.887 million.  Beverly Hills has been playing catch-up for most of the year, because of large sales completed last year.

In comparing median sales prices for single family residences in September 2011 with September 2010, Beverly Hills was down 34%; Beverly Hills Post Office was down 9%; but Bel-Air was up 40%.  Brentwood, on the other hand, was down 49% from the previous year.  So you can see how one can justify pulling their hair out when you try to figure out just where you are each month.  And when you compare last month to August 2011′s numbers, you will see that Beverly Hills was down 54%, BHPO was up 4%, but Bel Air was down 15% and Brentwood was down 18%.  I will be more than happy to have coffee with you and give you an overview why our Westside real estate industry is the way it is.  My treat!  No tricks!

Mortgage rates tied to job growth….and Freddie Mac continues

According to the latest Lender Survey conducted by Freddie Mac, mortgage rates starting with a “3″ are becoming harder and harder to find.  Even if you have stellar credit, they say, lenders are moving up the prime loan rates to over 4%.  The big-government-controlled loan buyer reports that lenders are offering loans to well-qualified borrowers at an average of rate of 4.12% — which is a jump higher than the 3.94% two weeks ago.  Remember, that the ‘below-4%’ rate is the first time in 40 years since the survey has been taken.  Freddie Mac insures loans up to $417,000.

John Ciolino, Coldwell Banker’s mortgage lender consultant, asks the question: What did last month’s tepid job market report (+103,000 jobs) mean for home loan rates? “It’s important to remember that when our economy is struggling, our Bond Market usually benefits as investors seek a safe haven for their money. And since home loan rates are tied to Mortgage Bonds, our home loan rates are sometimes at their best when our economy is struggling. In a way it makes sense…in times of economic struggle, good home loan rates can help kick start our economy in other areas.”
“Yet,” John stated, “when good or better than expected economic news hits the wires, like it did with last month’s job report, investors often move their money out of bonds and into stocks in an attempt to take advantage of these gains. And that’s a big reason why we saw bonds and home-loan rates worsen two weeks ago.”
The most important thing to remember, John states, is that now is still a great time to purchase or refinance a home, as home loan rates remain near historic lows.

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The good news?  Location.  That’s our treat!

I want to share a few treats that have surfaced lately.  I know, like you, we can get very tired of street or on/off ramp closures and unexpected traffic delays caused by a variety of construction projects including the 405 widening.  At the same time, it’s a treat when our thoroughfares open up and we zip seamlessly along Sunset or Sepulveda or Wilshire.  So it was not surprising to receive three calls this past week from families who are looking to locate in our neighborhoods.  They currently reside in Malibu, Santa Monica, and Beverly Hills.  They have done their research and decided the best place to be was closer to the schools their children were attending.  They are just tired of fighting traffic across town and know it’s not going to get better for a while.  While we all look at the negatives these construction projects cause, families want to move here because we have great schools.  So location, location, location matters.

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Autumn in Montreal

How many times do people say that we don’t really have seasons here in Southern California, while I dispute those claims, even though the recent heat waves belie those beliefs, they truly do have a change of seasons in Montreal, Canada.  My sister and brother in law recently visited their son to enjoy Canadian Thanksgiving together.

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Sugar.White sugar vs raw sugar

How raw sugar is made. Sugar cane is initially pressed and the juice is then mixed with lime to achieve the desired ph balance and to help settle out impurities. The resulting liquid is reduced through evaporation, then a centrifuge used to separate sugar crystals. It is then dried further to produce granules. The brown color of raw sugar is due to presence of molasses.

How white sugar is made. “White” sugar is created in a couple of ways. Mill white sugar is the result of sulphur dioxide being introduced to the cane juice before evaporation. It effectively bleaches the mixture. In the production of refined white sugar, which is the most common product in the Western world, the raw sugar syrup is mixed with a heavy syrup and run through a centrifuge again to take away the outer coating of the raw sugar crystals. Phosphoric acid and calcium hydroxide are then added to the juice which then combine and absorb or trap impurities. Alternatively, carbon dioxide is used to achieve the same effect.The resulting syrup is then filtered through a bed of activated carbon to remove molasses and then crystallized a number of times under vacuum. It is then further dried to produce white refined sugar like we buy in the store.

Brown sugar. Brown sugar is refined white sugar with a molasses syrup mixed in, then dried again.

Sugar cane and the environment. Environmentally speaking, the less processing required means the less energy used, less waste products and fewer chemicals. While whole or crushed sugar cane can be difficult to source in the city, out of the options remaining, raw sugar is the more earth friendly option and brown sugar oddly enough is the worst choice. The bad news about sugar and the environment doesn’t end with how the syrup is processed into a final product. Effluent and waste from sugar mills creates major problems for local environments. Pesticides and herbicides applied during cultivation contaminate the ground and water supplies. Added to these problems is the firing of sugar cane prior to harvesting which pumps millions of tons of carbon dioxide and other chemicals into the atmosphere each year. Natural habitats in sensitive areas are often cleared in order to grow sugar cane to meet increasing demand.
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What about my personal real estate world?  My world also has been topsy turvey – up one day and down the next.  What all of the quietness for the various holidays and the perfidies of the market and economy itself, I have been on my own personal roller coaster.  I am now very busy, working with a number of buyers, and have about 3-4 listings coming up.  I also leased a house on Bel Air Park even before it came on the market. It was a very special house and it was leased totally furnished to a lessee that needed exactly that.  Please let me know how I can assist you with all of your real estate needs including property management

Happy Halloween!

Our economy and high unemployment continue to be serious concerns to us all. In its 3rd quarter report, UCLA researchers at Anderson School reported on September 20 that while the national economy is in “far worse” shape than it was just three months ago, neither the U.S. nor California is expected to slip back into recession. “The U.S. economy has only ‘stalled’, the job market continues to be horrible, and even a modest shock could possible trigger a full-blown recession”. But in a “nuance only an economist could appreciate”, a recession is unlikely because the forces that normally spur downturns such as home construction are already so weak that that this declining effect won’t cause much harm. A sudden drop in consumer spending or exports will, however. The GDP is expected to grow between 2.5% and 3% my mid-2012. Silver lining? We hope so.

Real estate performance on the Westside can best be described as the Tale of Two Markets, higher-end homes — those over $4 million — are selling well vs. lower-priced homes that are under-performing. I was recently showing a house on La Mesa, one of the prettiest streets in all of West Los Angeles.  A home that came on the market for over $9 million had two strong offers in less than a week!  However whatever the price point, if any home is priced right, they’re gone quickly. The buyers want to take advantage of the record-low interest rates (my own was just lowered to 2.75%!). As I have mentioned before, they are sophisticated: They know their neighborhoods and pricing, and are ready to move when they find a property that works for them. Effective October 1, maximum loan amounts for conforming loans goes down from $729,000 to $649,000, which could negatively impact the market.

Coyote Alert: Be careful walking your neighborhoods….we’ve had several coyote confrontations with residents and their dogs. Carry a big stick!  If you experience aggressive behavior from any type of wildlife, you should immediately contact the West Los Angeles Animal Services at 310-207-3156 and file a Wildlife Sighting Report. If they say that they do not accept reports over the phone, say that you were told by Officer Randall (the Wildlife Officer in charge of our area) that they are supposed to accept phone reports. Also, you can please file a report with the Dept of Fish and Game at 562-596-3885.

f you want any information on specific transaction that occurred during the last quarter, or if you have any questions or needs regarding real estate. please contact me by phone 310-442-1384 or by email carole@caroleschiffer.com

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Autumn always brings us a time for remembrance, hope, and optimism for our future

There is a certain ‘reality’ that comes after Labor Day — autumn (my favorite season) is just around the corner, vacations are over, kids are back in school, and we’re now focusing on the future and getting back to ‘stuff’  “.  One of the other reasons that for me this is a special time of year is that it is also a time for reflection and renewal.  A lot of people are going through a rough patch now, and as the lyrics in the song Turn,Turn,Turn” reflects those feelings,-

To Everything (Turn, Turn, Turn) There is a season (Turn, Turn, Turn)And a time to every purpose, under Heaven.  Yes, autumn is a lovely time of year….and with the Jewish New Year coming on September 28, it’s also a time for hope, renewal and dedication. Speaking of  the Jewish New Year, Happy New Year, and here is the link to a fun You Tube video about the holiday:  Dip Your Apple – Fountainheads Rosh Hashanah – YouTube
Rough patches or not….we’ll get through this.

I’m encouraged by what my coach, Tom Ferry, stated that in these uncertain times, “…we must be inspired to action — not inaction, not doing the same ol’thing — but to be enthusiastic and inspired in how we approach our daily lives.” As a Realtor, I help people find their new dream — whether it’s selling their home and having them move on to their next phase or helping clients find the new home of their dreams.  It is all very inspiring and gratifying for me, and while some transactions are more troublesome than others, at the end of the day, I am most grateful for all of them and for those of you who provide me with those opportunities.

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Westside real estate sales continued strong through the summer

You wouldn’t know that the US economy is rather “anemic” as our gross domestic product struggles below 2%, but in the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — we are doing exceedingly well, thank you. Sales volume — one of the key indicators for our local real estate economy — is up 20.4% for the year over 2010, but get this: Our sales volume in these four communities is up 59% over 2009 as we were languishing in the mid-recession doldrums. Sales volume through August 2011 was $1.394 billion vs. $1.157 billion in 2010….and just $876 million for the same eight-month period in 2009. That’s impressive. Please remember, that while overall the sales volume is up, for the most part, the prices are down.   As I have mentioned previously, we have had some significant large luxury home sales which obviously skew the numbers; that is a common element in all of my monthly and year to date sales reports.  We’re not entirely back yet — but we are working on it!

All four communities were up in August…..this is good news, too!

For the first time in 2011, all four of these communities are in positive territory for the median sales price when compared for the year and for the month of August. Beverly Hills, which always has the largest swings in median sales price on a monthly basis, was up a whopping 78% for last month compared to August 2010, averaging $5.275 million on single family units. This compares with a 2010 August figure average of $2.958 median sales price, for example, in 2010 there were eight sales over $3,000,000, and in 2011 there were eleven ranging in price from $3,626,000 to $11,950,000. Brentwood followed with a 28% increase in median sales price — $1.975 million for August 2011 vs. $1.534 million for same period last year. In Brentwood last year there was only 1 sale in August over $3,000,000 vs. 3 this year.

Bel-Air came in at 18% over the previous year in median sales price — with an August 2011 average of $1,791 vs. $1.511 million in 2010.  In 2010, there were only 2 sales over 3, with one of them coming in at $11,000,000 and while was just one more this year, they ranged in priced from $6,375,000 to $18,700,000….and Beverly Hills Post Office has an 11% jump in August over last year, with a median sales price of $1.826 million vs. $1.642 million for August 2010. In August of 2010 in Beverly Hills Post Office there were no sales over $3,000,000.00 vs. three this year, and one of them was for $13,800. These numbers continue to support the feelings of “smart money” that I mentioned in the last issue of the SchifferLine. Here again, these numbers          are impacted   by the big numbers for some of these sales as well as the counting of some multiple sales by the MLS, which obviously skews the numbers.  By the way, watch for the re-opening of the Hotel Bel Air in the next few weeks!

Because we have such an up/down, roller-coaster experience in our monthly sales statistics, it’s no surprise to see that August median sales price for Beverly Hills was 80% higher for August 2011 vs. July 2011. Bel-Air was up 44% in median sales price last month over July 2011, but BHPO was down 42% when comparing August 2011 with July 2011….and Brentwood was down a modest 7%.

So what does this, portend? Looking back at our ‘state of affairs’ in 2009, we have made tremendous progress in building back our resale market in these four communities. Will this continue? Everyone I talk to is concerned about the future — for sure — but we all recognize, too, we’re busier today than we were two or three years ago. Yes! I predict these trends will continue.

There is a vitality in the market place — not just in these numbers — but in our Open Houses and seeing real prospects are serious buyers who are not just looking for bargains but who want to live here. Yes, we have investors who are looking for bargains. But, why? Because they have faith in our communities — they recognize the inherent, unique values and strength we have in our neighborhoods and business areas — great shops, great schools, and great restaurants.

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What’s needed for the future? Capital flowing back into the housing market… ..

Those who ‘read the news’, cannot escape the predictions for our national economy that seem to pop up every day in every medium. Here is one from the Wall Street Journal that I found last week that is pertinent to our housing industry: According to the Federal Reserve, the United States needs to make it more attractive for capital to flow back into the housing market to get the residential real estate industry — and the economy — back on track, a Federal Reserve economist said Wednesday. The nation is in a “new normal” marked by 2% to 3% growth rates, more frequent recessions, low interest rates and sluggish consumer spending, said William Emmons, assistant vice president and economist at the Federal Reserve Bank of St. Louis.

This new normal includes millions of foreclosures still in the pipeline. Households, he said, will continue to deleverage — both voluntarily by paying down debt and involuntarily via mortgage defaults — putting further constraints on the economy. “My estimate is that we have in the U.S., somewhere between $3 trillion to $5 trillion

too much mortgage debt,” he said. Emmons said the average household needs to deleverage by about $80,000 or about a third of its mortgage debt. Many millions of households have experienced great stress on their balance
sheets,” he said. “There is tremendous pressure to reduce debt.” That is key in understanding why the economy is going to grow so slowly.

The new normal could last as long as seven to 10 years, he predicted, noting that was his own view not that of the Federal Reserve. Emmons gave a decidedly pessimistic view of nation’s growth prospects, saying he doesn’t expect a bottom before 2015. He spoke as part of a webinar hosted by the American Legal & Financial Network, a national network of legal and residential mortgage banking professionals.

“We have to find that place where housing becomes exciting again and people want to buy houses,” Emmons said, noting that investors will be key to a “self healing” of the housing economy and pointed to “the capitalistic instinct to realize that any period of turmoil presents opportunities.” Equity investors who view depressed housing prices as an opportunity could allow for large-scale conversion of for-sale properties into rental properties, helping to reduce the time it will take to re-balance the economy.
Emmons said he expected little, if anything, out of Washington with the existing cost-cutting mindset and lack of political will for grand-scale programs that would be large enough to make a difference. He also said the Federal Reserve has done what it can, saying the problem is one of solvency not liquidity.

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Master Mind Group?

I am very honored to have been asked to join other top real estate agents around the country to be part of a Master Mind Group.  We will be meeting on a bi monthly basis to discuss what is happening in their markets as well as what we are doing to make it better for our clients.  I look forward to sharing these findings with my clients as we move forward.

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More Local Construction Projects Impacting Our Roads!

As we drive around the Westside, I am sure that you have noticed that we have more than the construction on the widening of the 405.  A project was begun to rehabilitate, and replace the aging sewer pipes all over the city throughout the next 10 years!  They began some of that project here late summer.  The area they are concentrating on is being called the Mulholland and Bellagio Road Project and extends in an area bounded by Mulholland to the north, Sunset to the south, Roscomare to the east and Mandeville to the west. This portion of the program will last until summer of 2012, weather conditions permitting. The hours of construction are Monday through Friday from 7:00 to 4:00, and on major streets from 9:00 am to 3:30. For more information, please visit www.lasewers.org, and click on City Sewers, the find the Secondary Sewer Renewal Program (SSRP) or call 213 978-0333.

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Cutting boards plastic vs. wood

Plastic boards are based on petroleum products and a considerable quantity of crude oil, energy and chemicals go into making them. From what I’ve been able to research, it seems it takes just under twice the amount of crude oil to create the equivalent weight in plastic. The concept that plastic cutting boards are a more hygienic choice appears to be somewhat misguided. This may be the case where a board is new, but over a period of time the countless score marks become havens for bacteria that cannot be easily removed through normal washing.

A healthier and greener choice – wood cutting boards

From a hygiene point of view, it’s been found that the capillary action of dry wood means bacteria are quickly sucked up and die. Wood boards are also self healing to a degree and shallow score marks in the wood will close
up over time.  Often cutting boards are made from the off cuts from milling operations, so they are basically a waste product that is being put to good use. If the issue of timber cutting operations is of particular concern to you; there are boards available that come from sustainable forestry operations; or if in doubt, contact manufacturers before purchase to find out how they source their wood.

One type of wood to consider is teak. Teak is a very nice looking wood and incredibly durable. The boards are made without fillers, stains or any harmful chemicals. Bamboo boards have also become quite popular. Bamboo is a readily renewable resource, pest resistant, can grow in poor soils and in comparison to other crops, requires little water. I have one and it’s held up well over a few years of use. Something that has been mentioned to watch out for is that as bamboo boards aren’t made from a single piece of material, they often incorporate glues that may contain formaldehyde.

Given a good wood cutting board will last far longer that a plastic one, this translates into energy savings, less oil consumption and associated environmental issues, plus you’ll save some cash as well over the long term.
To help waterproof and seal a wood cutting board (if it hasn’t already been done), making it easier to keep clean, earth friendly products such as beeswax or coconut oil can be used. Don’t use plain vegetable or cooking oil as these will turn rancid. Sealing a board will also help prevent odors from items such as onions tainting other foods. To disinfect a wooden board, use a 3% hydrogen peroxide solution or neat vinegar – simply spray it on, then wipe it off.. and, regardless of the type of board you choose and as a food safety precaution, have separate ones for meat, fruit and vegetables, dairy and poultry.

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My News

I have been very busy with a lot of buyers, all committed to buying now and taking advantage of the market and have been showing properties from Beverly Hills to the Palisades Highlands. I also have a few more listings coming up in the next month or so… We are working on getting the house ready to market.

Please let me know how I can assist you with any of your real estate needs.  Looking forward to hearing from you.

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Labor Day is traditional end of summer……and the dog days of summer begin

Summer finally “hit” — temperatures soared this past week and while we will find Labor Day to be the unofficial end of summer — we know it isn’t.  It never is in Southern California.  Kids are back to school…college football season kicks off….and of course, political season begins (again).  We are in what is called the “Dog Days” of Summer.., you might ask as do I where did that expression come from?  The expression has an interesting history……Dog Days are the hottest, most sultry days of summer in late August. They can also define a time period or event that is very hot or stagnant, or marked by dull lack of progress. The name comes from the ancient belief that Sirius, who also called the Dog Star, and is in close proximity to the sun, was thought to be responsible for the hot weather. The Romans considered Sirius to be the “Dog Star” because it is the brightest star in the constellation. Dog Days were popularly believed to be an evil time “when the seas boiled, wine turned sour, Quinto raged in anger, dogs grew mad, and all creatures became languid, causing to man burning fevers, hysterics, and phrensies”. In recent years, the phrase “Dog Days” or “Dog Days of Summer” have also found new meanings. The term has frequently been used in reference to the American stock market(s). Typically, summer is a very slow time for the stock market, and additionally, poorly performing stocks with little future potential are frequently known as “dogs.

A casual survey will usually find that many people believe the phrase is in reference to the conspicuous laziness of domesticated dogs (who are in danger of overheating with too much exercise) during the hottest days of the summer. When speaking of “Dog Days” there seems to be a connotation of lying or “dogging” around, or being “dog tired” on these hot and humid days.

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I look forward to my favorite time of year — when autumn leaves appear setting the landscape aglow in oranges and reds.   Summer isn’t over as we know that September and October is also the start of fire season.

For me, Labor Day weekend finds me enjoying the “last weekend in summer at Coronado Shores.  This holiday finds my niece, Morgan, who is finishing up some missed classes at USC before applying for dental school attending the first USC football game of the season (go UCLA), and my nephew, Connor, after taking a year off between high school and college in Montreal to begin his college education at Concordia University, a four year business University located in the heart of Old Town Montreal with a philosophy of total business immersion. I cannot wait to visit him there as I have only been to the West Coast of Canada!  As I said, there are some things that end with Labor Day — but there are many wonderful new events that are just beginning also.

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Coldwell Banker’s parent company controls 25% of US residential real estate market

Coldwell Banker is America’s largest and most successful real estate company.  A division of NRT which owns a number of real estate companies, Coldwell Banker currently has 720 company-owned CB offices nationwide, staffed by 44,000 real estate agents vs. 60,000 agents just a year ago.  According to Bruce Ziff, president of NRT, which is a division of Realogy, the holding company, nationally the company has seen a 30% drop in the number of sales units per year and approximately 50% drop in rental units.  Nationally, one out of four real estate transactions are NRT transactions.  Ziff pointed out that NRT in Southern California is having its 2nd best year during the past four years.  And currently, he stated, there is a 9 1/2-month supply of unsold properties — of which 30% are in the distressed category (foreclosed/bank owned or short sales).  “The smart money is in the market,” Ziff stated, and the majority of people impacted by the negative economy is directly related to their education level.  He noted that the majority of NRT clients have college degrees or higher….”they’re better educated.”

In Brentwood’s Coldwell Banker office the number of transactions (by either a buyer or seller) is off 26% from a year ago, but the average price per transaction is up 28% or $1,368,000 compared to $1,060.000 in 2010.  Listings also are down for year-to-date, while the volumes continue to be ahead in three of the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood.  Coldwell Banker continues to gain market share as the industry contracts in these economic times.  Because we are positioned as the premier real estate company, we attract smarter buyers and smarter sellers — who want the very best representing them, especially in these economic tough times. Something to think about.

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New York, New York, it’s a helluva town

Bi-coastal residents, who own property  on the Westside LA and NY (or thereabouts) are pleased to know that Manhattan real estate is booming along, even though it’s in the middle of  the summer doldrums.  Sales were 3% higher in July 2011 vs. July 2010.  Condo sales were up 10% than a year ago, but co-op sales dropped 3%.  Average sale prices for both condo and co-ops were up 2% and 4% respectively according to the Stillwell Report.  Stillwell is a member of the Corcoran Group, which is a member of the NRT family.

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The luxury market is zipping along….and It’s a Small World Isn’t It?

When was the last time you sold or purchased a home that made headlines in the local newspaper or on the 5 o’clock news?  Not lately?  Of course, if you purchased or sold your home for over $100 million you’d be right up there with Candy Spelling who had her family home on the market — at one time — for only $150 million.  But it was Petra Ecclestone who paid a reported $85 million for the 56,400 square foot home that is basically a fixer in Holmby Hills.

According to Betty Graham, president of Coldwell Banker Previews International Division of NRT, the ultra luxury market ($10 million and above) is proving its resilience in Southern California.  For example, in the Greater Los Angeles area, Coldwell Banker Residential Brokerage closed 32 transaction sides (representing either buyer or seller) in excess of $10 million this year to date, compared to only 15 at of this time last year.  “The exotic luxury market’s rebound is attributed to several factors — including smart money’s confidence in real estate, lower prices, lower interest on jumbo loans, and a higher return on investment compared with other assets.”

“From Montecito to Beverly Hills, smart buyers have already seized the opportunity to invest in the future of luxury real estate as an asset” Betty stated.  We are seeing a large number of foreign investors in our
market place.  For example, at my open house in Bel Air Crest last weekend, with the heat that we had I had four parties, one from Russia, another from Indonesia, another from China, and one from here in the
good olde USA.  This is a wonderful example of “Smart Money”, an expression we are hearing a lot lately.  People are using their money wisely.

However, while the luxury market is being fueled by the super wealthy, other credit-worthy buyers are having a tough time getting loans. NAR chief economist, Lawrence Yun, said” there is a tug and pull on the market. “Affordability conditions this year have been the most favorable on record dating back to 1970, but many buyers are being held back because banks are offering financing to only the most highly qualified borrowers, ignoring a large share of otherwise creditworthy buyers,” he said. “Those potential buyers represent the difference between an uneven recovery and a much more robust housing market that could stimulate additional economic activity and create jobs.”

Jobs continued to be the prime culprit in California’s recovery, rising to over 12% and hanging there.  UCLA’s Anderson School forecast predicted that the California would experience a slow recovery through the end of 2011.

As part of this conversation, the new rating system for the condition of properties from the appraisal perspective goes into effect today.  The rating goes from 1 – 6, with properties in the 1 – 4 range, being acceptable for a loan consideration (depending on all of the other requirements being met), and those homes with a rating of 5 -6 will be very difficult to obtain loans for.  There will be a separate loan consideration process applied to homes that are being sold for lot value or with a great deal of work necessary to be done.

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Short Sales on rise — unclogging the mess?

According to First Capital Mortgage executive John Ciolino, Coldwell Banker’s mortgage consultant, banks are agreeing to more short sale transactions, and short sales are taking less time to sell. This, in turn, is helping to clear large inventories of distressed properties more efficiently, says James J. Saccacio, Realty Trac CEO, in releasing new housing data this week.

“This is a glimmer of hope that lenders are getting more realistic,” Rick Sharga, senior vice president of Realty Trac, told Bloomberg News. “It’s a win for borrowers to avoid foreclosure, buyers who could purchase a house in better condition and banks that lose less money, which is also a win for taxpayers.” John points out that there continues to be large inventories of homes whose owners are “upside down” — they owe more than the home is worth or to put it another way — they have no equity. According to 1st American Core Logic, there are 650,000 homeowners who have negative equity in their home.
For homeowners who are upside down, there are several options:

1) Do nothing — keep paying your current mortgage until you reach the break-even point;

2) Apply for a loan modification which may lower payments, but with the same high mortgage loan
balance. This may not make a lot of sense. Reports show that only 25% of loan modifications are granted.

3) Foreclosure — stop making payments. Which results in eviction, ruined credit and loan worthiness, and
becoming a renter for extended period of time.

4) The Short Sale ASAP program – The home owner short sales their existing home and thus eliminates all negative debt, and then simultaneously buys a similar replacement home at today’s low property values. This is a very interesting new program.  Once you have reached an agreed upon short sale amount with your lender, and VERY IMPORTANT, HAVE KEPT CURRENT ON YOUR MORTGAGE PAYMENTS, you can purchase a replacement home for an amount less than the ORIGINAL loan balance on the house being short sold.  You can also have a very low down payment.   This is an excellent way to enable you to still own a home rather than renting.

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Mulholland Schools face traffic challenges…..please note

With the private schools having started this past week, and the public schools starting next week, we are seeing more traffic on the Mulholland Bridge because of the removal of those two lanes during the famous Carmageddon weekend. The Mulholland Education Corridor Association (MECA) has launched a program to encourage parents to reduce the number of car trips along to/from school during this construction period.  The schools in MECA include Berkeley Hall School, Curtis School, Mirman School, and Westland School.  Participation has grown to include American Jewish University, Bel Air Presbyterian Church, Skirball Cultural Center, and the Stephen S. Wise Temple and Schools.

The efforts by MECA include staggered start times at all schools, including dismissal times.  These staggered  times pace school traffic along the corridor and prevent a “critical mass” of students commuting at one time.

MECA is also utilizing 13 different bus routes to help minimize school traffic along the Mulholland corridor.  The average cost per student utilizing buses is approximately $2,400/year, and the schools subsidize these routes to help families utilize this service.  Please check with your school regarding new class schedules and bus information.

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Tech Tips…..Watch out for new LinkedIn “social ads”

Did you know that according to a recent article in the Los Angeles Times, 80% of employers who are looking for a new employee go directly to Linkedin.com to search for the best candidates?  If you’re looking to move on to a new job, you know that you have to have your ‘act together’ on linkedin.com.  Social media, including Facebook pages, are now being used in the measuring mix to evaluate new employees: These are some of the thought processes an employer is going through – “Just how socially adept are you?  Are you up to speed in social media?  Do you understand the nuance
being well connected in today’s mobile society?”
Linkedin.com did an ‘end ‘run’ on their 100 million subscribers last month.  They launched “social ads” which are turning linked.com users into cheerleaders for business.  They use individuals’ names and photos to promote products or services that individuals had recommended or companies they followed.  This prompted a huge uproar, and forced linkedin.com to change its policy. What is the new policy?  Linkin.com will now say that the ads state that people in your network recommend a product, service or company.

If you want to opt out, here’s what you do:

To opt out of social ads: 1. Click on your name in the upper right corner. Select “Settings” from the drop-down menu.2. Click on “Account.”.3. Click on “Manage Social Advertising.”.4. Uncheck the box next to “LinkedIn may use my name, photo in social advertising” and click “Save”.

To opt out of promotional content from partners: 1.Click on your name in the upper right corner. Select “Settings” from the drop-down menu.2. Click on “email preferences “.  3. Click on “Turn on/off partner In Mail”.4. Uncheck the boxes and click on “Save changes.”

To limit the data third-party applications can access: 1. Click on your name in the upper right corner. Select “Settings” from the drop-down menu.2. Click on “groups, companies & applications”. 3. Click on “View your applications”.4. Check the boxes next to any applications you don’t want to access your information, and click “Remove.”.5. Go back to “Groups, Companies & Applications”.6. Click on “Turn on/off data sharing with 3rd party applications”. 7. Uncheck the box next to “Yes, share my data with third party applications”. 8. Click on “Save changes”.

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What is happening in my personal Real Estate world?

Despite the “Dog Days of Summer”,  I have been quite busy.  Last week I attended a wonderful and exciting three day seminar given by my business coach Tom Ferry, and I am in the process of  incorporating many of the thoughts and ideas into my real estate practice.  I am working with a number of buyers and in the process of negotiating a few offers on both leases and purchases as well as showing my wonderful listings in both Bel Air Crest and Mountaingate.   Currently I am representing five sellers and am expecting to get another three to four listings in the next few weeks.  Please give me a call at 310 442-1384 and I will be happy to share any and all of this information with you and assist you in any way I can.

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If you love roller coasters, you must be having fun..…..

I’ve never been a big fan of roller coasters.  Friends tried to convince me that riding Long Beach Pike’s famous “Cyclone Racer” would be fun; the closest I ever got was on the on Santa Monica pier.  The “Cyclone Racer” in Long Beach; an all-wood, death-defying roller coaster, which hung out over the water, was never my idea of fun.  Built in 1930 and torn down in 1968, it might well serve as a symbol of what is happening in our economic waters today — a careening, screeching, open-pit car that chugged slowly up its first big climb, only to throw you mercilessly down its dual track iron-rail highway at breath-neck speeds that could rip your head off if you didn’t watch out.  You held on for dear life, and when it was over, many would just jump into another car to do it all over again.

Well, that’s what’s happening today.  We’re on a modern-day roller coaster ride that delivers chills and thrills.  We can’t escape the good and bad news.  There are days when I just avoid the gloom and doom, and there are days when I hear the market is way up, only to be mercilessly thrown down, again, when the market is way down.  I can personally tell you it is hard on one’s nervous system.

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So, just what is the mood in the Westside on the overall economic situation?

Everyone I talk to is committed to riding out the highs and lows of the current economic situation — however long it takes.  Each of us have our own set of economic issues — and as a homeowner, too, we’re all in the same boat together. The people I have spoken to are not going to sell their stocks, or trade in their gold jewelry…. “Just going to hang in there”.

For us, a part of the question is how is of this upheaval impacting the West Los Angeles Real Estate Market? All I know is our real estate market in the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood are not in horribly bad shape. Over all, we are looking at more stability as I have reported each month.  I am seeing strong attendance at open houses, and starting to see more offers. As we have been hearing in the media, and I am personally experiencing, leasing remains a popular option for those who want to “rent out the market” and continue to hedge their bets.  However, the market is still full of buyers who are eager to make deals today.  Why?  Because there are excellent prices on Westside residential properties….there continues to be low interest rates.  I am constantly being asked about the foreign buyers are coming to our communities to take advantage of current market conditions. There definitely has been an increase in the number foreign buyers, for example the 23-year-old-woman from England who paid $85 million for the Spelling residence in Holmby Hills (this sale greatly impacted the percentages in the Bel Air stats for July). We are seeing multiple offers on homes that are priced properly.  However, I can tell you this:  I’m still no fan roller coasters — over the water, on land.  Every month, I give you a snap shot of what has been going on the past month.  July was a good month.  Stay tuned.

We’re holding steady on the Westside….improving in sales volume
I love presents — and every month, I open the MLS statistics report to see what good news Santa has brought me.  And for the July 2011 period, it was mostly good news.  Probably the best news was that the median sales prices for three of the four areas I report on — Beverly Hills, BHPO, Bel-Air, and Brentwood — three remain in positive #s, while Beverly Hills continues to lag behind as it has for some time.  (That will change soon — see below.).  Median sales prices for 2011 — from January thru July — are up in Beverly Hills Post Office — 20%; Bel-Air was up 3%; and Brentwood was up 22%.  Beverly Hills was down 9%.

Contradicting its year-to-date performance, Beverly Hills was up 46% for July vs. June 2011.  And that doesn’t include the sale of Jennifer Anniston’s home or the home that designer Vera Wang purchased for $10,000.000, Beverly Hills Post Office was up 39% for the same period, while Bel-Air went down 32%.  Brentwood was up 8% for July over June.  (Do you have that ‘rolling’ feeling yet?)

When you compare July 2011 to July 2010, we are seeing the same up/down #s — Beverly Hills is down 7% compared to July 2010; Beverly Hills Post Office was up 76%; Bel-Air was down 14%; and Brentwood was up 34%.  You can tell — we’re on a roll…..

Sales volume for the four communities I report on is good news:  Sales volume for the first seven months of 2011 was $1,170,000,000 (that’s billion) vs. $1,170,000,000. or a 15.5% improvement over 2011.  We were up just 6% as of June 2011 over the previous year.  Sales volume does not include some large estate sales as well.

Some background — the statistics that are shown in the MLS do not reflect what is happening Vis a Vis the economy today — they reflect the sales that closed escrow in the past month, meaning these sales were made primarily during the past 45 – 90 days.  For example, there are major estate sales that are not in the monthly stats for July.  Jennifer Anniston’s home sold for a reported $35-38 million and closed escrow in July, which is not shown in the Beverly Hills July 2011 stats.  She bought the home in 2006 for $13.5 million, gutted it, and did extensive remodeling over the next four years — putting it on the market in the spring 2011 for $42 million.  It’s a spectacular property and even though she didn’t get her asking price, getting $38 million is still remarkable in this climate.  This sale should eventually show up in the MLS stats, perhaps by September when the sale becomes public information, which will skew the stats again for Beverly Hills.

All in all, the key #s to watch are the Year-to-Date Median Sales Price numbers since these tend to even out the vagaries of each month’s up/down, roller coaster performance.  Look at this way — you’re getting a free ride on our Westside Cyclone Racer — its chugging uphill one month, and then throwing you mercilessly down the next.  Hang on.  We’re not done yet.

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How are appraisals impacting home values?

According to a recent article in the Wall Street Journal, the problems we have been dealing with and loan appraisals is continuing to negatively impact home values, and thus sales prices.  There is one quote that describes the process as buffoonery! Appraisers are meant to be unbiased assessments of a property’s value.  Disputes over valuations are rising.  It is a multi-fold problem: “The banks need to be protected from future investors who purchase their mortgages, some sellers are not realistic about the value of their homes, and the sweeping Dodd-Frank financial overhaul law that went into effect in 2010 built appraiser independence by regulating both the industry and the fees that the appraisers were being paid.”

This resulted in banks using appraisal-management companies who then hired less expensive appraisers, many of whom are totally unfamiliar with the properties and the areas in which they have been doing their appraisals.  This situation has
been compounded by laws that prohibit both lenders and agents from directly contacting the appraisers to discuss the appraisal or even in some cases provide them with comparables on the subject property.

For the most part, I have been very lucky in my contacts with appraisers. Over the years, I have received many, many calls from appraisers asking my opinion on the value of a property and because of my strong belief that appraisers are a major part of my transaction team; have gone out of my way to assist them in any way I could.  Recently those beliefs were paid back in that I needed an appraisal done quickly on one of my transactions, so when the appraiser called me and it was someone that I worked with in the past, he was more than happy to accommodate me!!!!

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Credit-rating issues — One out of three is bad!

We all know that America’s credit rating was downgraded from AAA to AA+.  While two other credit rating services did not follow.  What  Iconoculture.com among others is saying about all of this is worth repeating:  “We should recognize that credit-rating agencies themselves have been in hot water. There’s evidence that folks like Standard & Poor’s, Moody’s and other credit raters contributed to the Great Recession (and the Not-So-Great Recovery) by rubber-stamping financial instruments and portraying risky investments (mortgage-backed securities, credit default swaps) as safe, easy money. The raters are in a fight for their lives, a fight that depends on reestablishing their credibility as objective, neutral evaluators of creditworthiness. And, as uncomfortable as it may be to admit, signs point to the fact that the US simply is not what it used to be in terms of macroeconomics.”

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Make sure you have a carbon monoxide detector……listen up!
You may not be aware that California now requires single family residences to have carbon monoxide detectors  alongside your smoke detector.  It is not yet required as a point of sale compliance, and I’m not really sure how they will “police” it.  So people tend to not pay much attention to the risks. I received a troubling email from very dear cousins who live back East – and I am so thankful they did use good judgment and survived their experience.  With their permission, I am passing this warning along…This is their story…
“Dear Friends, We had an experience yesterday that was both frightening and eye opening.  We have a carbon monoxide detector in our basement that the alarm went off.  We really did not see that anything was wrong, so Bob changed the batteries and we did not think about it again.  One half hour later the alarm went off again.  We called our Gas Company, they said they would send someone out but we should call 911 and leave the house.  We called 911 and the operator said she would send someone right out and to again leave the house.  We took the dog and went outside.  To make a long story short, Bob and I probably would not have gotten up this morning had we not had this inexpensive battery operated detector.  The fire department and the Gas Company found the gas/carbon monoxide leak.  The levels were high throughout the house but especially high in our bedroom.  Carbon Monoxide is both odorless and colorless and hard to detect.  Without symptoms of nausea, headaches, sleepy, of which neither of us had any of those symptoms.  Carbon Monoxide is a Killer.  According to the fire department if we had not had a detector warning regarding the carbon monoxide we probably would not have gotten up today.  The fireman’s words were “I am not sure who you believe in but whoever it is give extra thanks today”.”
Most of all, to all of my friends, family and clients, these detectors, fire, smoke and carbon monoxide are so important.  My cousins are living proof that they do save lives.  If you do not have them please get them as soon as possible.

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Roundup — Renting becomes fashionable……
In these uncertain economic times, many are contemplating their next move:  Sell or buy. For many, it’s waiting out the market — staying put.  Others want to sell and jump into their next dream home.  But for many, it’s “circle-the-wagons” time — and leasing.  Many are selecting this option — and as a result, rent prices are moving up.  The leasing market is strong, and property owners are taking advantage of leasing their homes and being price aggressive.   Please give me a call if you would like to talk about your alternatives to buying, selling or leasing.

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Going, going gone? Back to school.

Summertime and the livin’ is easy.  I’m sad to see the back-to-school ads on television.  While it brings back many fond memories of my early days in school, it also is a reminder that Father Calendar is alerting us that summer is nearing its end.  It’s August, hot, and sometimes humid.  But I love this time of year — it’s the best time to enjoy the outdoors, the ocean, mountains and having dinner under the stars.  And it’s also the time to think about planting fall colors in your garden and making sure you have adequately prepared your home in case of fire.  Autumn in California is also fire season.

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Start and Stop – Again

As part of the continuing work on the expansion of the 405 and Sepulveda, the very detailed work schedule for the Bel Air Crest front entrance that I provided in the last issue of the SchifferLine never happened.  We never heard why the work wasn’t implemented.  Based on the information we received — the work will resume in September.  Will it?  Stay tuned!

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Fellows of Contemporary Art

As those of you who are regular readers of the SchifferLine know, one of my areas of interest and passions is art and that I have been a member of the Modern and Contemporary Art Council at LACMA.  I just recently expanded my involvement in this world by joining another group called the Fellows of Contemporary Art which was formed a few years ago by a friend of mine.  The group is a very interesting one, again with some very knowledgeable and involved art collectors.  I am very much looking forward to furthering my education on this arena and will share some of my experiences as I move forward.  I am also continuing my involvement with the Glass Alliance of Los Angeles; in fact I am attending a lecture by a glass artist from Israel next Sunday.

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Cell phone recycling
The average lifespan of a phone is around 18 months. – it’s just that people simply want the latest and greatest features that marketers convince us we must have although with the latest generation of phones, I have to admit some of the features are very handy indeed.

However, our new, top of line phone is relatively worthless in a very short time; so the phones are often stashed away or thrown out with the household rubbish. While the cell phone industry has created a lot of jobs, the level of consumption has also created an environmental nightmare. Aside from the massive amount of resources used in production, its estimated there are over half a billion discarded cell phones in the US – both tucked away or in landfills. In 2008, a survey by Nokia in 13 countries found that only 3% of people recycle their mobile phones. Some of the toxins your phone may include:Lead,Mercury,Arsenic,Cadmium,Brominatedcompounds,(PVC),Antimony,Beryllium,Barium,Selenium,Chromium.When disposed of in landfill, these chemicals leach into the soil and ground water. Many of the toxic compounds in cell phones are persistent and bio-accumulative. They build up in the fatty tissues of creatures, and then are concentrated at the top of the food chain.

Cell phone recycling is easy
There are so many recycling options now for cell phones the phones are either: repurposed – e.g. given to charities, refurbished – spruced up and then resold, sometimes to people in poorer countries who can’t afford the latest models, recycled – precious metals, plastics etc. extracted.
You can recycle your phone along with other electronic items at the UCLA toxic waste site.  If you wish, I will be more than happy to come by and pick them up for you. Just be sure to clear out your address book before you get rid of your old phones.

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As for my personal business, I continue to be busy showing my listings in both Bel Air Crest and Mountaingate, managing my escrows, as well as working with a number of well qualified buyers! At the moment I have two listings in Bel Air Crest, one a Canyon home and the other a Custom lot, and in Mountaingate I have four listings in Mountaingate ranging in price from $1,595,000 t0 $2,595,000 and that includes one of the homes available for lease as well.

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The National Budget Situation in Washington DC.

As Yogi Berra said….”it ain’t over ’til it’s over.”
As the SchifferLine goes to press, we’re sitting on proverbial ‘pins and needles’ awaiting the outcome of the final vote in Congress on the debt ceiling bill that would enable the US to avoid a default.  Which ever way the vote goes, we do understand that while this ‘temporary’ fix-it bill will get us through this immediate crisis, the US still faces inexorably huge deficits and Congress and the President will have to get back to the drawing board soon.  Needless to say, Yogi Berra — at 86 and in the Hall of Fame after spending 19 years almost all of them with the New York Yankees — is well known for his “it ain’t over, ’til it’s over” quote.  But he like many others —  had /have most notably a more apt view of where we’re going that applies today:  “The future ain’t what it used to be!”  How true

It’s August. It’s hot. It’s wonderful. Let’s have another Carmageddon….Not…….

Remember the dire predictions for the 1984 Olympics? Oppressive heat… Traffic jams. Irate drivers, short tempers…. Chaos… Never happened…. And so it was with Carmageddon….the traffic was quite wonderful, thank you….and even a trio of 405 gate crashers had time to enjoy a short dining experience on the deserted freeway.
While I had escaped to my Coronado home to avoid the envisioned Westside mess, it turns out I probably didn’t need to leave the scene, and so the next time around when we do Carmageddon again in 11 months, who knows what we’ll do then? “When I got the all-clear about the freeway opening up again so early on Sunday, I actually felt like I had missed something special and was somewhat sorry that I had left town. In talking to the guards at Bel Air Crest gate, they “said it was boring!”
When I came home on Monday morning, the traffic was amazingly light…..it was like that all day on Monday, and then on Tuesday, we got back to our normal frenzy! I am sure you have all heard the talk about closing the freeway once a month so that we all can enjoy the change in the traffic patterns.
And so we are now smack in the middle of summer and real estate continues to heat up, too….as attested by the performance in my office…. Coldwell Banker Brentwood — the average price for a single residence in 2010 (as of June 30) was $1,552,000, but for the same period in 2011, the average price is $2,557,000. Now, this is good news. CB’s Brentwood office manager, Ellen Bergeron, stated that “The interesting thing about the market this year is that the number of units is slightly down, but volume is slightly higher. That is because this time last year the high end was very slow, and in the last year we have had a number of important transactions in the high end.”  This year in my office, we have had an extraordinary number of high end transactions, $25,000,000, $17,000,000, $28,000,000!  This of course skews the numbers.

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On a national front, pending home sales rise in June….but don’t hold your breath

According to the National Board of Realtors (NAR), pending home sales increased in June 2011 following a down turn in April and then up in May. Activity increased in the West and South but declined in the Midwest and Northeast with all regions showing strong double-digit gains from a year ago. What this means, of course, that during this spring window, we are seeing some strength in home sales, which can affect the overall mood of buyers and sellers. Buoyed spirits are always good.
Based on the NAR’s Pending Home Sales Index — a forward-looking indicator based on contract signings, the Index rose 2.4 percent to 90.9 in June from 88.8 in May and is 19.8 percent above the 75.9 reading in June 2010, which was the low point immediately following expiration of the home buyer tax credit. The data reflects contracts but not closings but is a strong sign that home sales are moving in an upward direction.

I always take national surveys with some grain of salt since the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — have consistently countered national trends, especially in down times. Yes, we do experience downturns, but our declines have not been as severe as other parts of the country, and conversely, our market improvements have come quicker and stronger because of the unique, inherent strengths in each of our communities.
At the end of the day, the real #s that count for you (and for me) is what is happening in our neighborhoods. But as we have seen with the recent, convoluted negotiations in Washington D.C., what happens “there” can have a dramatic impact on what happens “here”. Stay tuned.

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Big mortgages are back….and that’s good for many

Here’s some good news: Low-interest rates are driving high-end home buyers to super-sized mortgages as a pace unseen since the housing boom, but the deals may also have a limited shelf life. So-called jumbo loans—generally those bigger than $417,000—are a better bargain now than they have been in years according to Smart Money magazine. The average rate on a 30-year jumbo mortgage is 5.15%, down from 6.41% two years ago, according to mortgage data firm HSH Associates. That means the monthly payment on a 30-year $600,000 home loan is now about $3,280, some $480 less than the cost of the same loan two years ago, for an annual savings of nearly $5,800.
The report noted that not only are jumbo loans cheaper relative to historical rates, they are cheaper relative to smaller “conforming” loans, which are backed by Fannie Mae, Freddie Mac and federal agencies. The difference between the rates on a jumbo mortgage and a conforming loan is just 0.43 percentage point, the narrowest spread since 2007. Since we are located in a market where jumbo loans are the rule, not the exception, this makes borrowing bigger amounts more attractive than it has been in recent years, and also presents opportunities for buyers who might have been previously locked out of pricey markets due to higher rates, says Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California, Los Angeles.

Buyers already have taken advantage. Jumbo loans accounted for almost one in every six new mortgages, including new-home purchases and refinances, in the first quarter of 2011, according to Inside Mortgage Finance.

At that pace, Smart Money reported, the number of jumbo loans issued in 2011 could be the highest in five years, when the housing market was near its peak. That is in part because people are trying to lock in a government-backed jumbo loan now ahead of a planned limit reduction.
Starting in October, the federal government will start easing its support of jumbo loans as large as $729,750, which it began as an emergency measure three years ago. The new limits will vary by location, but will drop to $625,500 in top-tier markets such as New York, Los Angeles and Washington, D.C.
Many potential buyers are trying to take advantage of substantial price declines of expensive homes over recent years, Mr. Gabriel says. That includes people who bought well before the housing bubble and who are still significantly above water now and want to trade up while prices are low.

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Tax rolls up! Is that good news? Yes, if you’re looking for a recovery……

According to a recent article in the Los Angeles Times, for the first time in three years, the assessed value of all property in Los Angeles and Orange counties has increased, which gives reason for optimism that the “real estate market in Los Angeles County and California is growing stronger and continues to recover,” according to LA County Assessor John R. Noguez.” Not being the one to endorse increased taxes for anyone, I find it an encouraging sign in a landscape that has mostly been littered with negativity in the past three years, that we look at the increased values for homes in our area to be a good thing. It validates what we are seeing in the strengthening of the real estate markets in Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood. Noguez, ever the optimist apparently, added that this was “probably a breath of fresh air that ‘hope’ is finally resurfacing.” Let’s hope so.

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Ice Cream….no nutritional facts here, just plain fun

If you’re like me, every now and then the memory of a cool, delicious ice cream cone sweeps over me….and I’ll succumb to at least one scoop of my favorite ice cream which magically transports me back to my childhood or trips to Italy and its wonderful Gelato!  My mom has always loved ice cream – and trying to be health conscious these days, I seldom take the ice cream plunge except when she’s with me, especially in Coronado where it’s almost a ‘must’ to stop by one of the two  local ice cream stores.  With one of them, I can always tell how busy the town is by the line outside the door as I drive by.  “Oh, come, on,” she’ll say, “we’ll just have one scoop!”  So, we do, and of course, I love to take my time licking away that cool chocolate ice cream.  I want to make it last as long as I can.

Ice cream, I found out, has been with us thousands of years – when the Persians combined ice from the mountains with fruit as early as 400 BC….but ice cream – as we know it today — didn’t really get its start until 1718 in England when Mrs. Mary Ealies’s Recipe’s was published, providing the first true ice cream recipe.  And today, we have plethora of frozen ice cream desserts — from Ben & Jerry’s to Haagen Daz to Italian gelato to non-fat yogurt.  We have managed to transform these delicious, sweet frozen desserts into just about every taste to fit every palette.  My favorite – when I get really weak and I’m with my Mom – is Chocolate Almond or Rocky Road; I just love those cute little marshmallows’, nuts, and rich chocolate ice cream inside a deep waffle cone.  What is your favorite flavor????

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Power Boost for all of you ATT cell phone customers.

For all of you who are ATT cell phone customers and suffer from the weakness of the signal strength, there is a product called the ATT Microcell: http://www.att.com/shop/wireless/devices/3gmicrocell.jsp?fbid=tJeEyRzZZpw
I am told it would get your five bars anywhere in your house. This is only good for ATT subscribers…

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Birds and Bel Air Crest Front Entrance Update

After many delays, the work on the front entrance at Bel Air Crest is beginning this week. The finches have flown the nest and it has been verified by the Fish & Game Dept… so now what happens next?  This coming Thursday evening (8/4) they will be cleaning and grubbing on the south side ONLY between the hours of 10 pm to 5 am. Then on Monday the 8th they will begin the installation of the K rails during both day and night time hours. On Wed the 10th the excavation work begins for 3 weeks and this will only be done during the night. They also will be doing the abutment and column construction during the day time.

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What are egg cartons made of?

An egg carton may be made from plastics such as Styrofoam or from recycled paper and molded pulp. One way to make your egg consumption a little more environmentally friendly is to ensure you buy eggs in paper based packaging as Styrofoam is difficult to recycle.

Recycling egg cartons

If the eggs you buy are in plastic packaging that isn’t Styrofoam; look for a triangle with a number inside it stamped on the packaging. This is a plastic resin code and depending on the number, it may be possible to place this packaging in your recycling bin. Even though the paper based version of the packaging is biodegradable, when thrown in with your general household rubbish it will likely wind up in landfill where the decomposition process takes a lot longer. Additionally, as the waste in landfill is buried, decomposition occurs in an anaerobic environment, which is one without oxygen. Microbes that thrive in anaerobic conditions give off potent greenhouse gases such as methane as they digest material. Methane has a Global Warming Potential (GWP) 62 times that of carbon dioxide. Instead of going into your general rubbish bin, paper based egg cartons should be put into your recycling bin; but given the nature of their construction, they also break down very quickly in compost piles – so you can use them to help benefit your garden.

Other uses for egg cartons

Egg cartons don’t have to be waste – there are other ways to use both the paper and plastic forms. Here are a few ideas. Inquire with your local primary/pre-schools if they need cartons for craft projects. I still remember an alligator I made with an egg carton when I was very young and using the cartons in class as a type of paint palette. Art departments also use the cartons for papier mache projects as essentially, paper based cartons are just papier mache themselves. Use the cartons as seedling starters – plastic egg cartons can also be used in this application. Handy for organizing small items such as nuts, bolts and screws. Use as packing materials when shipping goods. As a way of storing delicate Xmas tree decorations.

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My Listing Inventory

At the moment, I have a number of listings and quite a few coming up as well.  I have two wonderful Canyon homes in Bel Air Crest, in addition a custom lot, and a few Custom homes that are not on the market. In Mountaingate, I have a fabulous home with an amazing ocean view, another smaller home with a pool that is available both for lease as well as for sale, and another great townhouse with an elevator. Here too, I have some homes that are not currently listed but will be coming on the market in the next month or so.  Please let me know how I might assist you with any of your real estate needs.

Over the weekend, the Los Angeles Times published a front-page article in the Business Section about the “deafening buzz” created by the sales of a half-dozen Westside mega estates — all selling for over $20 million.
The article pointed out, also, that we haven’t seen the last of the big-sellers, either.  There is more to come…..Candy Spelling’s ‘larger-than-White-House-sized manor’, which was originally listed for $150 million in Holmby Hills (for more than two years) is about to close escrow, and we’ll soon find out what that finally went for.  Surely that home will eclipse last year’s record $50-million Bel-Air sale by a wide margin….but by how much?

Has the market turned on the Westside?  Are we seeing the last of the bottom?  Can I confidently tell my clients — yes, we’ve seen the worst of it.  Well, I’m cautiously optimistic it has made a turn, a modest one.  And one of the places I turn to, always, is UCLA’s Anderson School who closely tracks real estate in our own backyard.  “It’s highly likely we would not see this activity if there wasn’t a growing belief that we are close to the bottom of the market,” stated Stuart Gabriel, director of the Ziman Center for Real Estate at Anderson.  “Certainly on the Westside of L.A.,” he said, “we’re close to the trough.  That doesn’t mean there isn’t a likelihood of future price drops, but the worst is behind us.”

When you put into perspective that L.A.-area prices are generally back to 2003 levels (yes, I said 2003!), Southern California’s median home prices have fallen nearly 45% to $280,000 in May….from a 2007 peak of $505,000.  Now, that doesn’t tell the Westside story, but it gives you an overview of the ‘macro’ real estate market in which we exist.

As the article went on to point out, many of these mega estates went for as much as 25% off the original listing price, but still, there was a strengthening in the $20 million+ estates that managed to sell in the first half of 2011.  All I can say is that we’ll see if we have seen the worst of it…..for me, it’s too early to tell, but I’m cautiously optimistic.

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Real estate sales volumes holds steady…ahead of 2010.  Prices ahead of last year.

We all appreciate ‘little favors’ and when you are used to seeing prices going down, it’s nice to see that we are making headway in the four communities I report on….Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood.  Sales volume for the four communities continues to be up by 6% over 2010 through the first six months of 2011.  That’s the good news. Total sales for single-family residences in these four communities was over $935 million, compared to $880 million last year.  Median sales prices for June in Beverly Hills was up 21% over same period in 2010….Beverly Hills PO was up 11%….Bel-Air was up nearly 60% over 2011, and Brentwood was up 13%, which is great news — because it has been dragging behind the other three for much of last year and earlier this year.

While Beverly Hills remains behind last year’s median sales price by 12% (year-to-date), BHPO is running 8% ahead of 2010 for the first six months of 2011….Bel-Air is up 3%, and Brentwood is up 20% for median sales price through June 30.  But the #s are somewhat mixed when you compare May 2011 to June 2011 — BH is down 14%; BHPO is up 51%; Bel-Air is up 5%, and Brentwood is down 12% when you compare median sales prices between May 2011 and June 2011.
While Beverly Hills is still feeling the effects a higher-than-normal median sales price from 2010′s large number of estate sales when June 2010 showed seven homes selling in excess of $3 million versus just three homes in this range in 2011. Days on market (DOM) in 2011 was 74.  Beverly Hills Post Office had four homes selling for $3 million plus in 2010 versus six in this price category in 2011 and the DOM is 130 this year vs. 104 last year.  Bel-Air has five sales in the $3 million bracket in 2011 versus none for 2010.  DOM was 96 in 2011 vs. 58 in 2010.  Brentwood had seven in the $3 million price range vs. six in 2010 with the DOM as 60 this year vs. 52 last year.  The stats are of f a little as there were a few double sales posted in Brentwood both this past June as well as last year, and t hat obviously throws the stats off some.

Again, as I have said so many times….our four communities are prone to have statistically good and bad months simply because we have so many large estates, most of which are gated, those sales  just skew the market stats every so often….it just comes with the territory.  And of course, we have one of the best “territories” on the Planet — we all know that!

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“Carmageddon”….this is what it is all about!

Above is a computerized rendering of the new Mulholland Bridge that is to be completed sometime by mid-2013 — not the weekend of July 16-17, 2011.  What our Westside communities are going through with the now famous “Carmageddon” 405 Sepulveda Pass shut down can only be told with personal stories.  Many of us (myself included) have decided to “Get out of Dodge”….others have opted to make this a special stay at home weekend, and some are just plain curious with the prediction of “this will be just like 1984 when we were all warned about how horrible it will be while the Olympics were here, and it turned out to be just the opposite”.  Send me your unique stories — and we’ll share some of them in the next issue of the SchifferLine on August 1.

If you decide to stay in town this weekend, or want the latest traffic conditions and closures/openings in general you can either call 599 or go to Go511.com.  This is a terrific site — well done and very informative.

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Owning a home is an integral part of the American Dream…..

In a bi-partisan national poll of 2,000 likely voters by the National Association of Home Builders it was clear that homeownership holds a special place in Americans’ minds and the delicacy required to deal with the issue…..75% of voters believe that “owning a home is the best long-term investment they can make and is worth the risk of ups and downs in the housing market.”

Interestingly, a high percentage of those surveyed who were in different financial situations all had positive views — 81% of those who own their homes outright felt strongly about home ownership….76% with mortgages, 67% with renters, and 65% with homes that were ‘underwater’, which I find amazing.

Eighty percent of respondents said they would recommend buying a house to a close friend or family member just starting out, including 78% who had underwater mortgages.  73% who did not own a home said their goal is to eventually buy one.  As we know, the federal tax code has always been favorable to home ownership.  73% felt that the incentives provided in the tax code or encourage home ownership should be continued to be provided — and that included 71% of Republicans, 68% of independents, 79% of Democrats, and even 68% of members of the Tea Party.

When you see such strong support for home ownership, it’s not surprising that 71% oppose eliminating the mortgage-interest deduction and 63% oppose lowering it.  The message is clear:  Owning a home is among the values of Americans most cherish — and it’s an important part of the American Dream.

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Call 3-9-9 for Non-Emergency Roadside Assistance on the Highway

If your car breaks down on the freeway and there is no Call Box in sight, you can use your cell phone to get non-emergency roadside assistance quickly and easily by calling 3-9-9. You can also use this to report obstacles or hazards in the road, (but wait until you have stopped driving to call!). Calls to 3-9-9 are connected to Call Box operators who can Metro Freeway Service Patrol (FSP) tow trucks to your location.

If you are covered by AAA, the dispatcher can patch your call straight through to AAA. FSP help is free of charge, and is funded by an additional $1 on every Vehicle Licenses Fee in the State of California. In emergencies, you should still always call 9-1-1. (This informative article was provided by Los Angeles Councilman Paul Koretz.)

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Sunscreen – protection or poison?

The regular use of sunscreen lotion might provide some protection from sunburn, but it may also have quite serious health risks – for ourselves and the wider environment. The sunscreen industry is huge – worth billions of dollars annually. It rose to mega-profitability when a link was made between skin cancer and over-exposure to the sun in the late 60′s/early 1970′s. Yet the incidence
of skin cancer continues to rise even though these products are widely used. The latest investigation by the Environmental Working Group of over 1,700 sunscreens and other sun-blocking products currently on the market found only one in five sunscreens earned high marks for safety and efficacy. Leading brands were again this year among the worst offenders.

It’s quite disturbing what’s in some sunscreen preparations. Millions of gallons of sunscreen are consumed each year. After application, it doesn’t mysteriously vanish – it winds up either soaking into our bodies or accumulating there or is excreted (into the environment) or washed off; again – into the environment.

I’m now a little cynical about the claimed benefits of sunscreen. Sure, it may stop us from burning; but isn’t that nature’s way of telling us “get the heck out of the sun and don’t stay out here this long again”?

And aside from all the chemicals, does it actually stop melanomas, the most dangerous type of skin cancer, from forming?

One of the other problems with sunscreen is in order to be effective against less serious forms of skin cancer; you need to use a lot of it, and far more often than what the manufacturers recommend and regardless of what the SPF rating is. If you’re in shorts and a t-shirt and working up a bit of a sweat, the amount you’d need to use over an 8 hour period is the equivalent to a 100 ml or 3.5 ounce tube. Imagine if you worked outside each day and followed “best practice” sunscreen application – it would cost you a fortune, not to mention having applied many pounds of toxic chemicals to your body every year. Let’s not forget about all that packaging too – mainly plastic tubes and pump packs that wind up in landfill – millions of them every single year.

After reading on the subject; the cheapest, most earth friendly and proven sunscreen solutions I could find are: stay out of the sun, stay out of the sun especially between 10 and 3pm, if you have to spend time in the sun, cover up, wear a wide brimmed hat and UV sunglasses.

It’s basically all just common sense. Some people just aren’t meant to spend lengthy periods in the sun – and light skinned Caucasians are a group most at risk. People with lighter features are 20 times more likely to develop melanoma than African Americans.

I know I have to stay out of the sun, and this from a reformed “sun bunny” who used to spend all day at the beach and taught swimming!

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What is the Quick Response Code and how am I using it???

As you most likely have seen, there is a newish vehicle available for people to obtain “instant information” on items for sale, coupons, etc. This code is being used in a number of different types of business, and in different ways. It is also used for real estate, and I am using it to promote my listings. On the For Sale signs I will now have a sticker with the coding for anyone who drives by one of my listings and has a “Smart Phone with a camera” to be able to capture or scan the code on the sticker and go directly to my web site and obtain all of the information on the property they are looking at. I in turn am able to obtain their information and get in touch with them.   Here is a sample of what the code looks like.

Happy July 4th – this traditional holiday brings back fun memories. This is one of my most favorite holidays, because July 4th symbolizes how lucky we are to live in the United States and enjoy the bounty we have been blessed with. While I love traveling far and near as you well know, I am always glad to be home and gain a true appreciation for how lucky we are to live where we do.  We have all see the images of small town America celebrating The Fourth with home-grown parades, picnics and fireworks that touch a tender spot in my heart. My family has been going to Coronado over July 4 for decades — and being able to experience all of these traditional events each year warms my heart. The old fashioned parade down Orange Avenue, which is the main street in Coronado, is fun to see every time.  I do hope you have a great Fourth of July, too.

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It’s not too early to plan your July 15-18 ‘Carmageddon’ weekend.  It’s still just two weeks away, but already many of my friends and associates have their ‘Carmageddon’ weekend planned — getting out of Dodge…pulling up the drawbridge….taking that vacation they have been putting off. Whatever your choice be, please remember that as of July 15, 7 p.m., (was 10 p.m. previously), the 405 freeway will be closed from Interstate 10 for 53 hours — all the way over the hill to 101 (Ventura Freeway) — a 10-mile section that essentially chokes off all traffic over Sepulveda Pass except for residents who can prove their residence is within the area. The Getty Center, located in the middle of Sepulveda Pass, will be closed on July 16 and 17. The 405 lanes will be reopened sometime Monday morning the 18^th. There will be some police and fire personnel who will be using our Club house as a staging area over the weekend.

The Mulholland Bridge will be partially demolished as part of the $1 billion highway improvement project, scheduled to end in mid-2013. All drivers are being warned to expect severe traffic on freeways and streets in the area. As usual, the information keeps changing, so the best way to keep up to date is to check the project website: www.metro.net/405.

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If you want any information on specific transaction that occurred during the last quarter, or if you have any questions or needs regarding real estate. please contact me by phone 310-442-1384 or by email carole@caroleschiffer.com

Have a GREAT summer!

Unreliable sources tell us that there are 66.3 million fathers in America (compared to 85.4 million moms) and that neckties remain the #1 gift for Father’s Day. I don’t know about you, but in California — where casual has become formal — I am not sure that I agree that neckties are #1, but who knows! Hallmark does reveal that over 90 million cards were sent last Father’s Day, making it the #4 holiday gift card. And in this age of Face book and online greeting cards, kids are using ‘everything online’ to send greetings and stay in touch. As I have said before, I wish my Dad were still here to celebrate with, but I try to honor him every day. However you celebrate it, Happy Father’s Day.

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The Closure of the 405

Hopefully you have all seen and heard about the closure of the 405 freeway from t the 110 freeway to the Santa Monica freeway on the weekend of July 15th to the 17th.  Access on Sepulveda will be limited to only those residents who can show that they live in the area.  This will be gridlock of Massive proportions.  They are tearing down one side of the Mulholland Bridge and guess what; they will repeat this exercise in 11 months when they take the second side down!  My advice to all of us…. Get out of Dodge.. Access to the majority of West Los Angeles will be severely limited for the entire weekend.

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Yes, there’s good news for Westside real estate….sales above 2010 for first time
I do have some good news for you — total real estate sales for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — are up 6% for the year compared to same period in 2010. More than $747 million in sales have been recorded through May 31, 2011, compared to $702 million in 2010. We have been lagging behind in total sales, which is a key arbiter for measuring strength in the market. And this comes at a time when overall home sales (new and resale) for May 2011 fell 17.4% compared to a year ago. This was a three-year low according to Data Quick, the San Diego-based real estate research firm as reported in the Los Angeles Times (June 14, 2011).

Again, I have to point out that the regional and national stories you can’t help but see or hear about in the media on a daily basis are not necessarily indicative of what is happening in your community or neighborhood. And why is that, Carole? It’s because we are like an “island” within the greater Los Angeles market, and are somewhat protected… yes the prices are down, but we are doing better than most. This is because our community and neighborhood assets stand out and consistently remain the primary reason we continue to buck other area’s real estate trends.

Year-to-date median sales prices remain strong…. .

In analyzing the individual communities, we have three out of four communities posting median sales gains for the period — January 1 through May 31. Beverly Hills Post Office posted a 6% gain over 2010; Bel-Air was up a modest 1%; and Brentwood, which suffered for most of 2010, is up 23% for the year. That’s really good news. Beverly Hills, which seems to have a schizophrenic personality when it comes to tracking monthly trends (up, down), was down 5% for the year and, well, I never worry about BH because one or two huge sales will hit the market and throw off their median averages into a dither. (For example, the media is  reporting that Aaron Spelling’s 58,000 square foot home which is in Holmby Hills just went into escrow with the buyer being a wealthy British heiress….it was listed 2 years ago for $150 million..and the purported non confirmed sales price is $85,000,000).  The  escrow is scheduled to close in the next to 60 days).  Here are some examples of closed escrows for May 2011 vs. May 2011 for sales over $3,000,000 – Beverly Hills (2010) – 2 sales over $3,000,000 – but no really high numbers as all of the sales were under $4,000,000 – (2011) – 5 over $3,000,000 with 2 under $4,000,000, one at $4,100,000, the 4th one at $7,300,000, the 5th sales price was confidential, but list price was $26,000,000.  Beverly Hills Post Office (2010) – again just 3 with none over $4,000,000 – (2011) – 4 sales – two under $4, 000,000, the 3rd was at $9,100,000 and the 4th at $22,950,000. – Bel Air (2010 – 1 sale over $3,000,000 at $16,250,000, and (2011) – 6 at $3,000 or more with only one at $3,000,000 then they were $8,000,000, $12,000,000, $16,600,000 and $21,500,000. – Brentwood (2010) 2 over $3,000,000 with 1 at $4,000,000 and then $11,000,000 – (2011)   – 6 over $3,000,000 -$3,350,000, $4,339,000, $4,900,000, $6,167,000, and $6,750,000.  All of these high numbers will as you know skew the stats any way you slice them.

There is definitely a chasm in the market today…. And huge gaps of sales prices and activity… what the above numbers are telling us that the high, high end is moving, but the “typical” numbers for West Los Angeles real estate of $1,000,000 – $3,000,000 is still bogged down.

While these #s may not impress you, when you compare this year’s MSP to last year, you will find that each of the four communities have all done much better this year — each succeeding their negative year-to-date performances for median sales prices through May 2010 (although Brentwood did have a 2% increase in MSP through May 2010….but had a 23% increase this year!).

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Monthly Median Sales Prices show strength…..
Median sales prices for the four communities were a bit uneven for May 2011 compared to May 2010 — Beverly Hills was down 12%, BHPO was down 14%, but Bel-Air was up 1% and Brentwood was up significantly by 47% over last May 2010.

When you peel back the real estate onion, you will see that another significant statistic is indicating a deeper strength — Days on Market. When you compared Beverly Hills DOM for May 2011 to May 2010, it went down from 91 days to 54 days, a substantial improvement. BHPO, however, had 137 DOM, compared to 97 for Bel-Air and 78 for Brentwood. And perhaps the one of the more important #s to watch on the monthly MLS stats are comparing the sales price to the original listing price: Beverly Hills was at 91%, BHPO was at 93%; Bel-Air logged in at 84%, and Brentwood was at 90%.

What does this tell us?
We can’t ignore “lingering economic uncertainties that have left the market soft” according to Richard Green, director of USC’s Lusk Center for Real Estate. “People are gloomy,” he admits, “but if you look at our job numbers over the last year, we are not doing badly.” The difficulty, he says, is the difficulty in getting a mortgage — “it’s a big part of the problem.” He points out that “…Hollywood is hiring, Silicon Valley is hiring. I think things are getting better in California….and housing is about as much about the availability of credit as anything else.”

Foreclosures made up 33.4% of the resale market last month in California, down from 33.8% in April and 33.9% last year. Short sales made up 18% of the market in May 2011, up from 17.1% a month earlier.

From my in-the-trench observation, the buyers are out there. They’re looking at properties, but unless they see a substantial savings or discount (in other words, they want ‘blood’), buyers are still concerned about the economic conditions. They want to be justified in making an offer — because they fear that they might get stuck by having made a mistake and “buying too soon”. It doesn’t matter what the seller or real estate agent thinks — it’s what the buyer thinks. They are setting the final price.

Adjusting a home priced too high…..when to do it
This is always a difficult decision – for the seller and the real estate agent. Let me give you a typical example. Let’s assume that we would agree to list a home at $2.3 million. Based on the comps and market conditions, this home was properly priced. But after two to three weeks of no showings and a few phone calls, it was obvious that there was no interest at that price level. When we drop the price to $2.2 or $2.1 million, we expect to see stronger interest. I only drop the price because of these factors: 1) new comparables in the nearby neighborhood indicate that the price is too high; 2) economic conditions have worsened; and 3) taking into consideration, of course, the goal of the seller. Usually, these price adjustments occur when a property is on the market longer than it should be. In some cases, the seller is not in a hurry to sell and under no pressure, so they will tend to keep the price longer in the market than it should be — assuming they really are a seller. Do these price reductions work?  Yes, they do, but sometimes we have missed the boat with our timing and the price needs to be adjusted again.. and so does any seller really want to be in the position of “chasing the market”.. I don’t think so.. So the trick is to start out with the right price off the bat… and that is not easy to do..

Every listing has its own challenges — and regardless of the market conditions, one area can be “hot” and another nearby area “cold”. For example…..One of my fellow associates who is a leading sales agent in the Marina said that Venice is hotter than Marina del Rey. He has 18 listings, which is an above-average number for any successful agent — and is not getting calls to show them. However, up the coast, I heard at a meeting of Coldwell Banker agents who specialize in selling high end homes, but could not verify this that Santa Monica properties are selling at 119% of the asking price.

*Buyers Sitting on the Fence?

So, is this a good time to purchase a home? Yes. The cost of money today is at one of its lowest points in recent years, and there are some excellent bargains out there. If you factor in the cost of increased interest rates (they will surely go up) and increased housing prices when the economy turns (and it will), you will see that those increased costs will convince you that this is a good time to buy. To see a sample of buying today vs waiting for the sales price to go down and the interest rate to go up, please click on this link

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West Los Angeles Contest

Congratulations to Debbie Finerman of Bel Air Crest for wining my knowing some of the different spots in West Los Angeles..  Debbie is a faithful supporter of my contests and won this with 100% correct answers.

Thank you Debbie… enjoy your $100 Whole Foods Gift Certificate

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Fun Things to do in Southern California this Summer

Thank you to all of you for the great feedback on my addition of the listing of Fun Things to do in Southern California.

Click here to see the rest of the Fun Things to do.

Have fun!!!

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Reusing bread bags

I’m not sure if there’s been much advancement in the world of bread bags in terms of making them a little more earth friendly; so this is another area that certainly needs some improvement. Sure, you can go to a bakery and buy full loaves wrapped in paper or make your own bread which will also cut down bag usage, but for most of us this isn’t going to be the case.  Many families would wind up with hundreds of bread bags each year. So what to do them all?

We probably can’t keep them out of the waste stream forever, but perhaps they can be used for other purposes that may prevent the use/purchase of another product. Here are some ideas:

- For packing sandwiches, As packing material when shipping goods ,General storage for small items, A replacement for freezer bags, Plastic bag crafts, A cake icing piping bag, Handy bags for picking up dog poop, makeshift gloves, punch holes in the bag and use as a seedling tube, seasoning bag for cooking.

These ideas won’t keep the bread bags out of the waste stream, but they might take the place of something you’d otherwise buy for the tasks .Lowering consumption of anything and everything is something we can all do to reduce our environmental impact. “Repurposing” is one of the 3R’s of going green: “Reduce, Reuse (Repurpose) and Recycle! Sometimes it’s the simple things we often overlook that give us the best opportunity for contributing to a greener planet.

Have ideas for using bread bags or any other Green Tips you’d like to contribute? Please let me know at Carole@caroleschiffer.com

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My listings

Please don’t forget my wonderful listings in Mountaingate, including a great unit in the Ridge with an elevator, and a wonderful home with amazing city and coastline views.

We have all seen and heard about the “plunging home prices” that we are facing.  Is it true?  Yes, prices of real estate — even in our wonderfully luxurious West Los Angeles real estate market — are softer than any of us would like (even for buyers), but are our prices really plunging?  Not that I can see…..

However, the effect of these stories (LA Times, June 1, for example) is having on buyers and sellers today are creating a lot of fear. Buyers want to buy, but they are afraid that whatever they buy will eventually lose its value.  Sellers are worried about their continuing loss of equity.

So where is the truth?  In my open houses over the last few days….and with the phone conversations I have had with my buyers…..they all say the same thing… “We don’t know what to do.  What if the prices go down further”?  Here is what I tell them.

“Interest rates are the lowest they have been in years, and most likely will not stay at these levels, so what happens when they go up?  Your expenses go up with a higher interest rate on your mortgage even though you may be paying less for the property.  If you delay your purchase, you actually will be paying more with future, higher interest rates, and you will not have the advantage of having your home to enjoy.  Also you have the added bonus of the tax write off.

Are you buying a home or an investment?  If it is — in fact — a home that you are purchasing, then hopefully you will be staying there for a while, and the value will come back up as they always do.  It might take a little longer than you would like, but again, THIS IS YOUR HOME. So please sit back and enjoy it”.

The reality is there are two markets out there today: #1 – If you have a good property that is properly priced, the buyers will be there in droves.  And, #2 – if your home is on the market and priced too high, then you can expect it to sit and sit…..eventually selling for less than it possibly should have if it had been properly priced in the first place.

Of course, comps impact the values of all homes on the market and everything else around it.  I can tell you story after story when this has happened.

The moral of the story is that, yes, buyers and sellers need to be extra careful these days and make sure that you clearly understand the value of the home and neighborhood.  And most of all, you need to have an experienced real estate agent who truly understands the subtleties in the market.  That’s what I’m here for.

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Home sales fell in April by 9.2%.

The National Association of Realtors (NAR) reported that nationally existing home sales fell 0.8% in April 2011 from March to a seasonally adjusted annual rate of 5.05 million homes projected for the year. At the current sales pace, it would take 9.2 months to sell homes on the market. A healthy existing home sales inventory is considered six months.

April home sales in Southern California fell by 9.2% from a year ago according to Data Quick, a San Diego-based real estate research firm. This figure was 25.4% below the month’s average since recording keeping began in 1988 the firm stated. The median price paid for a home in the entire region fell 1.8% from a year earlier to $280,000.

However, as I am always quick to point out, the #s for the four areas I cover — Beverly Hills, Beverly Hills Post Office, Bel-Air and Brentwood are all luxury communities, including a number of them that are gated — our real estate performance is not usually in-synch with what is happening throughout the region. Because of our attractive residential areas, superior shopping and dining, and a plethora of cultural assets, “we” tend to avoid many of the real estate pratfalls other areas endure”.
One of the notable negative statistics, however, is that according to Data Quick, 21% of the homes in the Los Angeles metropolitan area are now underwater — which is another way of saying that their mortgages are now greater than what the homes are currently worth.
Many buyers have taken the short sale route — only to be frustrated by lenders who want to stretch out the process to see if the target home will rise in value during the process. Many buyers feel that they are getting the runaround when entering the short sale tunnel. Even after months of what sometimes is described as a “tortuous process”, the lender can pull the rug out during the closing days of escrow if they think they can extract more $$ from the property. So, if you’re thinking of going the short sale route — remember that there are many hurdles to overcome — and not all will be evident from the start of the process. These are fickle times. I will be more than happy to give you counsel on any property where this might be a factor.

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There is news on the home mortgage front…….

The Mortgage Bankers Assn. said last week that applications for home loans have risen and were 7.8% higher than the previous week (May 13), and that’s good news. Fixed-rate mortgages are at their lowest point of the year according to Freddie Mac. Mortgage rates declined for the fifth straight week amid mixed economic and housing data.

The 30-year fixed-rate loans averaged 4.60%, down from 4.61% the prior week and 4.84% a year ago. The 15-year loan fell to 3.78% from 3.80% a week earlier and 4.21% a year ago.
Last year at this time, Freddie Mac noted 30-year fixed-rate mortgages averaged 4.84%. The last time the 30-year rate was lower was in the week ended December 2, 2010, when the rate was 4.46%. The rate fell as low as 4.17November 2010 before surging to 5.05% in the week ended on February 10, 2011.

Freddie Mac surveys rates lenders are offering to well-qualified borrowers who make down payments of at least 20% or have that much equity in their homes if they are financing. As rates fall, applications for home loans rise.

For those of you who are looking for five-year Treasury-indexed hybrid adjustable rate mortgages averaged 3.41%, down from 3.48% the prior week and 3.97% a year earlier. To obtain these rates, the fixed-rate mortgages require an average payment of 0.7 point while adjustable mortgages require a lower 0.5 point.

While there are signs of a slowing economy, Freddie Mac Chief Economist Frank Nothaft said that the U.S. house prices indexes may be nearing the bottom soon, pointing to slower price declines in recent months and a reduction in the serious delinquency rate.

But there were some disturbing signs as well — the number of American households behind on mortgage payments hovered at its lowest level in nearly two years during the first quarter 2011, but the number of borrowers in foreclosure stayed at near-record high levels according to the Mortgage Bankers Assn. Sales of previously owned homes declined in April, further underscoring the challenges we have in our US housing sector that has, according to the MBA, “limped along since the home-buyer tax credit ended last summer.”

The number of borrowers who are seriously delinquent — meaning they have missed three or more payments — has now declined for five straight months. “We’re not healed yet, but things are looking better than they did certainly a year ago,” said Jay Brinkman, the MBA’s chief economist.

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Bird Watching

If you have taken to bird watching in Bel Air Crest, I am afraid you and I will need to look and wait for the construction on the front entrance to begin a little longer.  The chicks have not all taken flight yet and the California Department of Fish & Game has not cleared the site for the commencement of the work.

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Fun Things to Do This Summer

Given the price of gasoline, a number of us are taking “staycations” rather than going away.  Here is a list of some fun things to do in Southern California

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So what wonderful properties do I have in my hopper for you to know about?

I have some great new choices including a home on Promontory in Mountaingate that is listed at $2,695,000 with an amazing view of the coastline as well as a great yard, and then if you like the feeling of living in a park there is another absolutely immaculate home in the Ridge in Mountaingate with an elevator for $1,650,000.  Later this week I will be listing an Urban Oasis in Brentwood, north of Sunset with a price yet to be determined.  Please let me know how I can assist you with your real estate needs.

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There’s some ‘spring’ in these real estate shoes….things are picking up!

I kept telling myself to be patient….Westside real estate is on its way back and is going to keep improving. We’re headed in the right direction. Well, April numbers confirmed it: We are making progress in all of the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood. Each of the communities — for the first time this year — showed gains in April 2011 over the previous March 2011. And while these gains range from modest to extraordinary, what is even more impressive is that we are now closing in on matching our year-to-date sales volume with last year. In these four communities, the year-to-date sales volume is now just 10% behind 2010 levels for the first four months, whereas last month, we were 24% behind as of the end of March 2011. The strengthening in the market is remarkable for several reasons: 1) We started out slow in the first two months of 2011 when compared to the previous two months in 2010 — for example, last year there were 56 homes sold in the $5 million plus range in these the first two months of 2010 vs. only 37 homes over $5 million in 2011. 2) In 2010, there were 18 homes that sold over $10 million, vs. only 11 in this price range this year; but we did have one home over $20 million that sold in 2010 vs. two homes in the $20 million category in 2011. So, what we are seeing is a strengthening in the market as we move farther into 2011 — as our sales volume continues to play catch up with robust #s for 2010 which were driven by high number, luxury home sales in the first two months of 2010. This is just the nature of our market – luxury homes that come and go on the market that dramatically affect the average monthly statistics.

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The on-going Yin & Yang of our market continues

As evidenced not only by the stats from the previous article, but the stats from the multiple listing for April as well, the market was a bit healthier for the first quarter than it is currently. We are continuing to see softness in the prices of homes as well as some activity. According to an article in the Los Angeles Times on Friday, May 13, prices are down 1.8% from 2010. The typical spring selling/buying time has not yet caught on fire, yet I can also tell you that open house activity is up which means the buyers are out there. However, unless they have a compelling reason for making an offer (amazing property properly priced), they are sitting on the sidelines waiting it out. The monthly stats released by the local MLS on the 7th of each month shows that April 2011 was a strong month for all communities. What is important to understand, however, is that the stats you are seeing reflect sales that took place in the last 30 – 90 days (their escrows did close, however, in April 2011). Beverly Hills’s April 2011 median sales price was ahead of March 2011 by 13%; Beverly Hills Post Office was 50% ahead of March 2011; and Bel-Air showed a whopping 96% increase of the previous period; and Brentwood was 19% ahead of March 2011. These numbers, of course, translated into overall year-to-date median sales prices as well — Beverly Hills Post Office is up 23% YTD over 2010; Bel-Air is up 3%; and Brentwood is up 12%. Only Beverly Hills is lagging behind (down 10%) for year-to-date median sale price because of the large number of homes over $5 million in the first two months of 2010, which brings down its MSP. When comparing year-to-year MSP for the four communities I report on, you find that Beverly Hills is down only 6% for April 2011 vs. April 2010; Beverly Hills Post Office is ahead 79% for the same period; Bel-Air is up 37% over the previous 2010 period; and Brentwood is making a strong comeback now — up 49% over the previous April 2010. Surely by now — if you’re a regular reader of The SchifferLine — you recognize that we’re going to have these ups/downs for months throughout the year when you have the impact of $10 million and $20 million homes selling in your community. But that’s good news, too. The richness we have in our four communities of beautiful homes speaks volumes of why we live in one of the most desirable areas of the country, if not the world.

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Test your Westside IQ…..and win $100 gift certificate to Trader Joe’s

Due to popular demand, I extending the deadline for you to enter this fun (I hope) contest) So you think you know the neighborhood? We’re going to give you a very simple test — and all you have to do is answer a few simple questions:

1. What year was the Santa Monica Pier built?

2. When was Will Rogers State Park created?

3. Who was the architect for the original Getty Villa?

4. Who was the first mayor of Beverly Hills?

5. What is the name of the movie that was based on the Malibu pier?

6. Who was the original developer of Bel-Air?

7. When was the University of California at Los Angeles current campus created?

8. What iconic building was used as one of the main sets in the classic movie,” Chinatown”?

9. Name two world-famous artists who live in Venice.

10. Name two honorary mayors of Brentwood.

You can find the answers on my web site, caroleschiffer.com. They are in the section describing each area. For example, the question about the Venice artists is in the section about Venice.

All answers need to be sent via email, to: carole@caroleschiffer.com. Submit your answers to me by May 30, and if there are ties, I will randomly draw the winner who will receive a $100 gift certificate to Trader Joe’s or Whole Foods (your choice). Good Luck and Have fun!

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A word about foreclosures….and their place in our ‘sun’

Much is being written these days — you can’t hide from it — about the looming impact of foreclosures on home prices. Yes, we have seen it here, and we will continue to deal with this condition for some time. It has been reported that 28% of the homes in the US are ‘under water’ — meaning they owe more than the home is worth. But we are also seeing that foreclosures are slowing down — the pace has greatly decreased — in part because the banks/lenders are much more cautious about “how” they institute foreclosure process on homeowners. If there is any good news in this arena it is that foreclosure rate is slowing down which should help all of us in terms of our home equity and values as our market strengthens. It’s important to understand that even though you may read bad news about what is happening in some area of the country, even nearby, does not necessarily mean it is happening in our Westside communities.

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Understanding the economy and labor #s….it’s a mixed bag

First of all, I don’t pretend to be an economist, and secondly, I defer to our financial consultants who serve Coldwell Banker on many fronts. John Ciolino, a long-time associate and senior executive with First Capital, reports that “the labor market and the economy saw their own mixed blessings last week — when three different employment reports were released.” According to John, the Jobs Report showed that 244,000 jobs were created in April, 2011, which was far above “all expectations”….and it was the biggest private job increase since 2006.” And yet, in the very same week, we see that while jobs picked up, we also saw an increase in the unemployment rate go from 8.8% to 9.0%. Why was that? Well, John points out these reports are based on very different databases that have something to do with the Household Survey, and tend to cause confusion when trying to compare the jobless rate with new jobs. He goes onto state that this disparity between recent-record new jobs and increased unemployment stats demonstrates that the jobs “being created simply aren’t enough to have yet made a significant dent in the number of jobless Americans.” Another words, these are not “apple to apple comparisons” and should not be seen or viewed as such. At the end of the day, however, John said that while there is mixed news, the “overall positive tone does validate that the labor market is gradually improving, and….as it improves, so will the economy and housing.” The good news, he reports, is that “home loans recently reached some of the best levels so far in 2011.”

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Birds do it, bees do it…..let’s fall in love. Birds bring 405 to halt….well, almost

For those of you who live in Bel Air Crest, and are wondering why the construction that was to begin at our front entrance about 4 -5 weeks ago is on hold…. The 405/Sepulveda construction project, which knows no stone, rock or mountain it can’t move (or destroy)…has finally found its match. Families of birds have been nesting in the trees for weeks at the entrance to Bel Air Crest. Several families have recently welcomed newly born chicks….and according to California law, the trees cannot be touched or disturbed until the chicks have left the nest! So, the word is out — “No construction until the chicks have left the nest!” From what I hear, we are on hold for a few more weeks.

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Parents are moving….moving in with the kids.

A national phenomenon in these times. According to recent survey by a family history professor out of Olympia, WA, the number of parents moving in with their children is beginning to take hold. According to a report just released by the U.S. Census Bureau last week, the number of parents, siblings, and other relatives who live with adult heads of households grew 42% from 2000 to 2007. Leading the way? Parents, up 67%, to 3.5 million; The figures suggest it isn’t only elderly parents moving in — the number of parents under 65 in these households increased by 75%, and those 65 and older grew by 62%. “This is a major trend,” says Stephanie Cooetz, a family history professor at Evergreen State College. She directs research at the Council on Contemporary Families. She indicates that there are a host of factors — higher housing costs and the nation’s struggling economy. And, another factor — intergenerational households are more common among the country’s growing number of immigrants.

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New Baseline Hillside Ordinance goes into effect May 9 2011

If you live north of Sunset in West Los Angeles, this new ordinance applies to you and your property. Essentially, what this ordinance covers are newly created hillside regulations established for single-family zones for R1, RS, RE, or RA. Any project submitted prior to and approved by May 9 will be considered to be a Vested Development Plan, meaning that the applicable regulations in place prior to this change will continue to apply. (There are some limitations to this proviso — so please check with the building department.) The Department of City Planning is in the process of preparing a comprehensive, user-friendly guide. For more specific information and details on both of these important issues go to: City of Los Angeles’s online Municipal Code for more details http://www.amlegal.com/nxt/gateway.dll?f=templates&fn=default.htm&vid=amlegal:lamc_ca. As a part of the Baseline Hillside ordinance, the city is also working on a New Retaining Wall ordinance — it’s in the planning stages. It will be compatible with the already-approved Baseline Hillside Ordinance. If you want to get your two cents in on this new ordinance, you can be added to their “Add Me to Retaining Wall Interest List” list by contacting David Olivo from our Code Simplification Unit at david.olivo@lacity.org

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Commencement Day 2011 at USC

So many of you have followed the woes and joys of my niece Morgan during her years at USC, well, believe it or not, Friday the 13th was her commencement! The four years have flown by. It was with a great deal of pride and joy that I along with her parents, brother and Grandmother watched her not only receive her diploma but her medal for being a member of the Honors program (called Thematic Options at SC)! I cannot tell you how proud I am of her growth and development over these past four years. So what is in her future? She is still short of a few credits and has decided to have an exciting new adventure. In July she heads to Queensland College in Brisbane Australia for a 4 month stint to complete her required courses, and then upon her return to Vancouver, she will work for a bit before she begins Dental School at the University of British Columbia in September 2012. I shall miss having her here, but we have made a pledge to continue to enjoy the closeness of the relationship we have developed over the past 4 years. One of my graduation presents to Morgan……a membership in the SC Alumni Association (gee that was hard for me to do!).

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Green glue

The types of glue we use and their impact on the environment probably isn’t up all that high on our going green checklists, but I thought I’d delve into the world of adhesives commonly used around the home to see what’s what. After all, if there are some big environmental issues in our lives we aren’t ready to tackle, there are probably lots of little ones where we can make headway in the meantime!

What is in glue?

The composition of glue varies widely according to application, but these days for anything more heavy duty than gluing paper for kids craft projects and paper mache, they are often based on petrochemical products, meaning they have their roots in crude oil. Some of the compounds used are polyvinyl acetate (PVA), epoxy, polyurethane and cyanoacrylate polymers. Aside the crude oil link, these substances have their own additional environmental impact.

Additionally, the substances are often dissolved in a solvent. As the solvent evaporates during the drying process, it can generate volatile organic compounds (VOCs), which may include greenhouse gases, ozone depleting substances, chemicals involved in the creation of smog and other gases hazardous to human health.

Environmentally friendly glue

I think the important thing to bear in mind with “green” glue products, also known as bioadhesives, is to not expect a product so non-toxic you could eat it (although some do exist); rather something that has less impact than mainstream products.

Home made glue

If you want to know exactly what is in the glue you use; you can make your own. You can always use the kindergarten teacher’s favorite – flour and water; but that’s not going to cut it for jobs such as mending frames or gluing fabric.

Commercial “green” glue

I wasn’t able to find recipes for metal plastics glue and not everyone has the time or inclination to make their own glue, so it’s good to see commercial bioadhesive products now available. I’m not going to recommend any specific products as I haven’t used any as yet, but they can be easily found via your favorite search engine using search terms such as:green glue,earth friendly glue,eco glue,environmentally friendly glue.

Things to look for in an earth friendly glue include: Low or no VOC,petrochemical free, water based, and you might want to look for an MSDS (Material Safety Data Sheet) so you can determine what is actually in it.

A popular active component of eco glues is Amino Silane. According to MSDS information I was able to locate on it, it has the following properties:

Oral – Result: LD50 > 2,000 mg/kg. Remark: Very low order of toxicity.

Skin Absorption – Result: LD50 > 2,000 mg/kg. Remark: Very low order of toxicity.

Skin Direct contact – Result: Slight irritation.

Eye Direct contact – Result: Severe irritation. Remark: Causes corneal injury.

Inhalation – Result: LC50 Not acutely Toxic.

Exposure Limits – Not applicable.

Sensitization – No.

Reproductive Toxicity – No.

Mutagenicity – No. Teratogenicity – No

Synergistic Products – None.

Ecological Information – No known applicable information.

Hope this information “sticks” with you…

At the moment I have seven (7) listings; two canyon homes for sale in Bel Air Crest, one custom lot in Bel Air Crest, two homes for sale in Mountaingate, one home for lease in Mountaingate, and one home for sale in Malibu. They are all very easy to see, so please check them out on my web site.. caroleschiffer.com and let me know if you or anyone you know might be interested in seeing any of them or any other property.

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Media confuse us….but remember: Reality check starts at home

Many of us are just swept away with “information overload” on practically every level – world events, high gasoline prices, and the economy.

The LA Times reported last week that home prices had — again — bottomed out, announcing that all of the home price increases since 2009 had ‘vanished’. The Los Angeles metro area was down 2.1% from the previous year, meaning home prices were not moving upward, but downward — placing a pall over the enthusiasm we were beginning to feel with improving Westside home prices. So where does that put us now?

The reality is that these are aggregated, regional #s — not for your community, neighborhood or property. But when you open up the Los Angeles Times — as many of us still do — we are somewhat shocked when we see headlines that contain words like “vanish”. I have to not only read further — I have to check out our #s. In the past we have talked about the sensational headlines that news agencies use to attract “eyeballs”, and many times it is not until we get “into” the story that we get to the real story. So what is the real story?

What we have seen in 2011 so far (through March) is that some areas — Beverly Hills (up 3%) and Beverly Hills Post Office (up 35%) have seen median sales prices hold steady or post significant gains for the first three months of the year when compared to 2010. Sales volume, on the other hand the four communities I report on — including Bel-Air and Brentwood — is down 24% over 2010 for the first quarter.

What we continue to see each month are moderate-to-wild swings in our median sales prices because we don’t live in cookie-cutter neighborhoods. In the four areas I report on — we will have single family homes selling for $1.3 million in one section of the community, and a few blocks away, an estate will go for $23 million. You know the area as well as I do — and when a blockbuster sells, it can dramatically affect median sales prices. And likewise, when you have a blockbuster month in 2010 and don’t repeat it the next year, you can experience a serious drop in MSP. That’s just the nature of our market.

So how do you get your “reality check”? Call me! As we all know the pricing of a home is not an exact science, but using the tools I have at my disposal, gives me and my clients the best perspective we can possible get on the value of your home. Only an experienced, qualified Realtor who knows your neighborhood can do that. And I get these calls all the time.

For example, one of my neighbors called yesterday and said…”Carole, we want to sell our home and we want to make sure we properly price our home. “We read your SchifferLine all the time.” Of course, I’m flattered, but the truth is – properly priced homes DO sell quickly and efficiently, especially in this market. You may not be motivated to sell, and perhaps you can wait this market out — but who knows how long “this market” will last? While we don’t know answers to that, I think we all know that is not just around the corner. Does that mean the market is dead, or flat, not by any means! I was checking on showings on beachfront property activity in Malibu the other day, and the agent I spoke with told me that they had just sold a house for $28 million!

With so many foreclosed homes coming on the market (over 5 million in 2011 in the US)….this factor continues to affect real estate values. We’ve seen it all over the Westside. I recently attended a real estate conference at the Beverly Regent that was sponsored by First Republic Bank, and their speaker, one of the top ranked economists; Ken Rosen last week, expressed his opinion that the recovery is on its way, slower than most of us would like and there are a number of factors that potentially stall the recovery, but overall the outlook is positive. The Feds are keeping the interest rates down, which will really help get more traction to the housing market. –Call me — I will be more than happy to help you with your reality check!

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Insights from the top……A message from NRT’s CEO

Bruce Zipf — president and CEO of NRT, the holding company for Coldwell Banker, offered keen insights as to the ‘state of the real estate market’ in the United States last week. With more than 140,000 agents nationwide, Coldwell Banker is the nation’s #1 real estate firm. Here is Bruce’s take on where we are:

“Despite trailing last year’s pace, our overall business results have managed to exceed expectations, thanks in large part to a surprisingly resilient high-end market. NRT agents closed 32 homes over $10 million in March, up from 10 last year and six in March 2009.

“…There was particular strength in the high-end segment in the North East, California and Florida regions. Total homes sold over $2 million are up 12%.

“….Consumer perception and confidence have a strong impact on the strength of the real estate market and this perception can be significantly affected by the tenor of the news media. We closely monitor real estate media and we have seen great inconsistency, with some reports touting an improving real estate climate and others pointing to continued pricing declines.

“,…This is continuing to sow uncertainty and confusion out there among potential buyers and sellers…..and normally, we judge the strength of our markets by looking at current sales volume against the same time last year to gain a sense of how things are improving. For many real estate markets, we couldn’t properly compare data from this March and April due to the artificial stimulus effects of last year’s Home Buyer Tax Credit. In May, these effects should lessen and give us our first true glimpse of the market’s strength.” Thank you, Bruce.

As I have been pointing out to our SchifferLine readers for years, we continue to see mixed messages in the media — each reporting on the same state of affairs but using varying measurements or coming to dissimilar conclusions with the same data! It can be frustrating for all of us — and that is why I publish my newsletter twice each month to keep you abreast of the issues we are all facing every day in the market and real estate industry.

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Test your Westside IQ…..and win $100 gift certificate to Trader Joe’s

So you think you know the neighborhood? We’re going to give you a very simple test — and all you have to do is answer a few simple questions:

1. What year was the Santa Monica Pier built?

2. When was Will Rogers State Park created?

3. Who was the architect for the original Getty Villa?

4. Who was the first mayor of Beverly Hills?

5. What is the name of the movie that was based on the Malibu pier?

6. Who was the original developer of Bel-Air?

7. When was the University of California at Los Angeles current campus created?

8. What iconic building was used as one of the main sets in the classic movie, “Chinatown”?

9. Name two world-famous artists who live in Venice

10. Name two honorary mayors of Brentwood

You can find the answers on my web site, caroleschiffer.com. They are in the section describing each area.  For example, the question about the Venice artists is in the section about Venice.

All answers need to be sent via email, to carole@caroleschiffer.com.  Submit your answers to me by May 15, and  if there are ties, I will randomly draw the winner who will receive a $100 gift certificate to Trader Joe’s

Good Luck and Have fun!

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Fewer Californians are entering foreclosure process….that’s good news!

By now, you’re probably wondering just what is the ‘reality’ in California — since learning that there are 5 million foreclosed homes going on the market in the US. But California may have seen the last of the worst of it! California foreclosures eased significantly during the first three months of this year, which lenders pushing the lower number of homeowners into the formal repossession process since just before the start of the credit crunch according to the San Diego-based research firm, Data Quick Information Systems. The first-quarter tally represents a 2.2% decline from the previous quarter and a 15.8% drop from the same time in 2010.  Click here to see the Market Trends.

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New York, New York .

A few weeks ago, I spent a week in New York along with 28 other members of GALA which is the Glass Alliance of Los Angeles, a group of studio glass and art collectors. We all had a wonderful and action packed time. In the course of 5 days, we visited 6 personal glass and collections, including the personal residence of the Bronfman family as well as the Chazen family, 4 museums, the opening gala of the SOFA (Sculpture, Objects and Functional Art) show, 3 galleries and 1 hot shop where we were able to watch John Brekke a glass artist who just had one of his pieces accepted at the Rennick Gallery in the Smithsonian in Washington DC! The whole trip was a treat. Of course we all had to indulge in a little theatre as well as some retail therapy!

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Green wedding tips

With all of the excitement about the Royal Wedding, I thought it would be fun to look at weddings from a green perspective.

With weddings often being extravagant affairs, many couples wanting to tie the knot are looking towards making their nuptials more environmentally friendly. Weddings are generally a nightmare of hyper-consumption and produce a great deal of waste. There’s invitations, decorations, gifts, travel, clothing and the list goes on. Many of the items used at a wedding are only used once.

There’s an old saying in connection with weddings believed to have been coined in the Victorian era. It refers to the bride and how she can bring good luck to her marriage by wearing:

“Something old, something new, something borrowed, something blue and a silver sixpence in her shoe”.

Invitations and paper Use recycled paper wherever possible for wedding invitations; most companies can offer this option. Also consider treeless paper made from materials such as bamboo, hemp and kenaf. Even the type of ink used for the invitation should be taken into account as some inks can be toxic. Weddings can generate a huge amount of paper consumption, so give careful thought to items that can be reduced. For example, instead of a program for everyone, perhaps one per couple or group.

Communications. Throughout the lead up to the marriage ceremony, you’ll no doubt have news to communicate with your guests about progress, venues etc. Instead of mail outs or bulky inserts accompanying the invitation, consider starting a web site or blog. If you’ve had no experience with setting up a site or blog, companies such as Blogger provide easy to use tools. If you can use a mouse and a keyboard, you can run a blog!

Catering. Where possible, use an organic catering company that sources local ingredients.

Flowers. Flowers used at weddings and receptions have a tendency to be out of season and therefore imported. Transportation and care of these flowers requires extra resources. Try to use locally sourced flowers. Perhaps use potted flowers as these can make a great addition to your home or garden after the big event.

Venue and travel.  When selecting a venue, consider where your guests will be travelling from. Try and find a middle point if possible.

Photos Everyone likes a photographic record of a marriage ceremony, so instead of sending out hundreds of paper based photographs, save on postage, processing and toxic chemicals by storing digital images on your wedding blog for family and friends to download as they please.

Good luck in planning for your green wedding, for the big day itself. and may you be luckier than I was and enjoy many years of wedded bliss

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Rolling Spring Break

This year, we have had what I call a “rolling spring break” with it lasting for the entire month of April. As a result it created a somewhat quiet market place, but now that it is finally over, things are gearing up again.  I have a good inventory of properties available for ones consideration: my fabulous home on the beach in Malibu now priced at $7,950,000, three canyon homes in Bel Air Crest, one lot in Bel Air Crest, two homes in Mountaingate and one lease in Mountaingate.  So please let me know how I can help you.

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We take our lumps…but we’re faring better than most

Despite soaring unemployment, a state with more than $24 billion in the red, and over $500 billion in unfunded pension costs….California, surprisingly, is faring better than most states according to a report by USC on April 5 published by the Los Angeles Times.
Using data from the US Census and other sources to compare such as homeownership and employment growth between the recession of the early 1990s and the recent “Great Recession” (as they call it), California poverty level peaked in 1993 at 23.8% but went down to 16% in 2009….but even though unemployment (real and unreal) went over 12%; despite an economic downturn, median household income in home values and real dollars grew over the last decade.
On a positive note about sinking home prices, the report added “…we might hope that these reduced housing prices also have lowered the barrier to homeownership for countless others,” referring to many who were permanently dislodged from the status of homeowners to renters.
We see it everywhere — housing prices still dramatically below values in the mid-to-late 2000s, and yet, we continue to see our Westside’s resiliency that has prevented home equity from being driven into the ground as it has occurred in many other areas in the US.

Shadow inventory of 1.8 millions could, however, prolong slump

Just when you thought it was safe to go into the housing waters, you read that there the “glut of troubled homes not yet on the market represents a nine-month supply at the current sale pace”. That’s in addition to the 3.49 million previously owned homes already on the market, according to Santa Ana mortgage research firm, Core Logic. When you combine these numbers, you are looking at an estimated 16.8 months of shadow inventory on the market, up from the 15.3 months in January 2010. (“Shadow Inventory” is defined by Core Logic, as a property that is in foreclosure…has a loan 90 days past due or has been taken back by a lender and is not yet listed for sale.”)
Does this affect your home value? Of course, it does — but as I have pointed out in practically every issue of the SchifferLine, every home and every neighborhood are different. We have all seen how our home values decline when a foreclosed home in your neighborhood is sold at a substantial discount, meaning your home takes its lumps, too.
Yes, location still makes a huge difference and our Westside location continues to boast the finest neighborhoods, shopping, dining, and school assets. But always, the critical factor in determining your home’s true value is when it is put on the market — price, always, is the determining factor! Properly priced homes sell well and quickly. Homes that are not priced correctly within its environment will sit. And sit.

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Sakes volume lags behind 2009 and prices continue their ups, downs

You must get tired to hearing my tales about the roller coast ride going on with Westside real estate. I wonder, sometimes, why I ever picked real estate as a career, especially in these up/down times when we have experienced such wild swings over the past two years, but then I know why, I really love what I do, lumps and all!!!. For example, last March 2010, we were 76% ahead of sales volume for the first quarter….but this year, we are 24% behind for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood. And even though we’re slowly increasing our volume percentage each month since January, we’re obviously not where we want to be.

For example, Beverly Hills is 48% over the median sales price for March 2010 yet it “posted a 83% drop in median sales price last March compared to March 2009. Beverly Hills Post Office is up a whopping 73% in median sales price for March 2011 but a year ago, it slipped 23% when compared to a year earlier — which is nearly a 100% swing. Bel-Air is down 31% over last year, but Brentwood — always lagging in 2010 — is up 8%.

Again, one has to take a step back and not just look at the monthly #s because they are deceptive — a large sale (or many) can skew a community’s median sales price by many percentage points. Two communities are performing ahead of 2010 for the first quarter 2011 in year-to-date median sales prices — Beverly Hills is up 3% and Beverly Hills Post Office is up 35%. Both Bel-Air (-37%) and Brentwood (-21%) are down for the first quarter.

There were some large sales (over $3 million) in all four communities in last March; Beverly Hills had seven over $3 million; Beverly Hills Post Office had two; Bel-Air had two also, but had one for $25 million; and Brentwood had three — with one for $26 million. This all speaks well for the higher priced market.

What’s behind the numbers?

Yes, the glut of bank-owned homes on the market has driven prices down everywhere in the United States, as we have discussed above. And it’s not going to necessarily get better with the shadow inventory looming on our horizon (more foreclosed homes coming our way). Pricing strategies, however, indicate that over-pricing is one of the major contributors to the lower prices and laggard sales volume. All one has to do is compare “sales price” to “original sales price” to see that homes not priced right will not only sit — but the final selling price will be substantially below what the seller originally wanted. The MLS tracks these #s every month, and in the past strong real estate years we saw this ‘ratio’ was in the mid-90s percentile in all communities I report on. Beverly Hills and Beverly Hills Post Office homes closing escrow in March 2011, sold at 86% of their “original listing price”. Bel-Air performed much better at 96% of the OSP and Brentwood was at 91% of OSP.

The MLS is replete with examples in all four areas that I report on where the final selling price was substantially lower than the original selling price. For example, a home in Beverly Hills was listed for $6.996.000 in June 2010, and closed escrow in March 2011 for $5,800,000. An estate in Brentwood was listed for $28,900,000 on September 20, 2010, and sold for $26,000,000 on March 31, 2011. Originally the house had been listed with another agent for $35,000,000 and it sat on the market for about a year! And on and on. The point is this — homes not properly priced will sit longer on the market than homes that are priced right.

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Everyone’s Favorite Day of the Year – April 15th – NOT

Since 1955, Tax Day is usually on April 15. When April 15 falls on a weekend, Emancipation Day, or any other holiday, tax returns are instead due on the following business day.
Federal income tax was introduced with the Revenue Act of 1861 to help fund the Civil War. That Act stipulated that income tax “shall be due and payable on or before the thirtieth day of June”. There is an unsubstantiated claim that the first income tax was paid only by the very wealthy, and they tended to spend their summers vacationing. The filing deadline was March 1 in 1913 and was changed to March 15 in 1918 and again to April 15 in 1955. Today, the filing deadline for U.S. federal income tax returns for individuals remains April 15 or, in the event that the 15th falls on a Saturday, Sunday or holiday, the first succeeding day that is not a Saturday, Sunday or holiday. Tax Day occasionally falls on Patriots’ Day, a civic holiday in the Commonwealth of Massachusetts and Maine. When this occurs the tax deadline is extended by a day.

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Sepulveda Pass/405 construction continues without a break

The 405 construction project in Sepulveda pass continues day and night. We’ve all experienced ‘surprises’ when we thought it was ‘safe’ to take one of our favorite ‘ways’ home, only to find a surprise detour or traffic clogged — and nowhere to go.
Starting at 10 pm on April 8 for 12 hours, Kiewit, the contractor for the freeway construction, began placing k-rail, restriping the intersection at Wilshire and Sepulveda and installing temporary lighting and signals at Wilshire Blvd and Sepulveda Blvd. During this installation the traffic lights at Wilshire and Sepulveda will be turned off and traffic control officers will direct traffic.
Upon completion, Wilshire Blvd will have one less center lane in each direction from Bonsall to Veteran. All turn lanes will remain open. There will be K-rails placed around the median of both westbound and eastbound Wilshire to create a work zone for the bridge widening. This new configuration will remain in place for one year.
Church Lane will be closed at Sunset starting April 30th for 3 months. This is due to electrical vaults being moved and the onramp being reconfigured. The Getty on-ramp will be closed 20 hours a day during the week for 7 months beginning April 14th. The ramp will be open from 6 am – 10 am and closed from 10 am – 6 am during weekdays. The on-ramp will be closed 24 hours a day during the weekend. The Skirball southbound on-ramp will always be open when the Getty on-ramp is closed.

Changes are taking place every day with various street, on ramp, etc. closures. Please check the sites listed below to get the latest information

Email: I405 @metro.netWebsite: www.metro.net/I405
Twitter: http://click.icptrack.com/icp/relay.php?r=1017197659&msgid=1659563&act=85D6&c=395186&destination=http%3A%2F%2Ftwitter.com%2FI_405
Facebook: www.facebook.com/405projectNixle: nixle.com Project Hotline: 213.922.3665

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Earth Day is about celebrating our wonderful Planet…….

You’d think that Earth Day has been around since….well, would you believe 1970? Founded by Senator Gaylord Nelson as an environmental teach-in on April 22, 1970. The concept literally took root, and is now a globally celebrated event in 175 countries. April 22 seemed like a good day to start this celebration because it corresponds to spring in the Northern Hemisphere and autumn in the Southern Hemisphere. And it doesn’t stop there — there are many communities who celebrate Earth Week that focus on environmental issues. At the SchifferLine, we literally celebrate Earth Something every issue with our Green Tips — I want to share with all of you my commitment to be environmentally sensitive and compliant for what is good for Mother Earth. And the United Nations has now designated April 22 as International Mother Earth Day. (Don’t forget Mother Nature!)

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How to celebrate earth day in the kitchen

Cover up – Where possible, cover up your pots and pans. This will help your food to cook more quickly and generates a higher temperature allowing you to turn down the stove. Taking the heat off - Instead of turning off the stove when the food is done, experiment a little with switching it off just before the food is cooked. An electric fry pan can be switched off a minute or two earlier, and oven up to 10 – 20 minutes depending on how well it’s insulated and sealed. It may not sound like a huge saving, but particularly with electric stoves, the dollars will add up. Nuke it - Instead of boiling water in a pan; zap it in a microwave instead. Be prepared -Always ensure your ingredients are prepared as much as possible before turning on the heat. Slow food – In the 70′s, crock pots were all the rage. These were heavy pots that took ages to cook anything, but cooked at a very low temperature. The idea was to switch it on before you head off to work and by the time you came home, the food was done saved power and the end results were delicious too! Hot stuff – Not ready to eat just yet? Instead of having the stove top going to keep it warm, wrap the pot up in a towel – this will help insulate it for quite a while. Splurge on pots and pans – Resist buying cheap pots and pans – they’ll cost you more in the long run. A good sturdy, thick walled set will last you a lifetime and while they take a little longer to heat up, the heat distribution is better and they’ll also store heat for longer. Glass and ceramic pots and pans are said to be the most efficient. The right pan for the job – If you can see the heating element or the gas flame is licking a little on the side of the pot or pan, it’s too small and much of the heat is being wasted. Keep the door closed – How’s your oven door glass looking? It’s worth spending the time to keep it clean so you can see in rather than opening the door to check on the food. Water, water everywhere – Only use as much water as you need in a pot. Every extra drop requires more energy to heat and will increase the cooking time.

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My inventory…

I have some stellar properties for your consideration. They range from fabulous Canyon homes in Bel Air Crest, one with a price reduction from $1,360,000 to $1,325,000, another Canyon home listed for $1,725,000 is 4/3.5 and is newer. In addition, I have also the last custom lot available in Bel Air Crest. In Mountaingate, in The Terrace, I have a great 1 bedroom, sitting room and den with golf course views listed for $1,085,000 and an amazing home on the beach in fabulous Malibu listed for $8,099,000. Please let me know if you have anyone for any of these properties or any need any additional real estate assistance.

On March 17, we’re all Irish — who doesn’t want a little more ‘Irish Luck’ in their lives?  There is something magical about this holiday — it’s the one time of year where we have the Irish’s traditional corn beef and cabbage (don’t forget the potatoes) and pint of Guinness beer.  The Irish have never needed an excuse to have their pint of beer, but as we pointed out last St. Patrick’s Day, the tradition of corn beef and cabbage is more American than a passion of Ireland. 
While we are familiar with the famous “Riverdance”, which is notable for its rapid-leg movements, body and arms being kept largely stationary, the dancing traditions of Ireland probably grew in close association with traditional Irish music. Although its origins are unclear, Irish dancing was later influenced by dance forms from the Continent, especially the Quadrille. Travelling dancing masters taught all over Ireland, as late as the early 1900s.The history of the dances of Ireland is quite old and tied into the folk dance probably dating back as long ago as the 1400 or 1500’s!
One last Irish historical fact:  St. Patrick’s Day is a religious holiday in Ireland and is named after Saint Patrick (AD 387-481).  It originated as a Catholic holiday but today is more of a secular celebration of Irish culture.  Wearing of the green started out originally as “blue” but has gradually shifted to green to reflect the ‘green shamrock’ — a token of good luck.  And if you’re not wearing green on St. Patrick’s Day — you may be pinched — another sign of good luck.

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Japan and its tragedies and the impact on the world economy

First, let us start by sending our thoughts and prayers to the families affected by last week’s earthquake and tsunami in Japan. The earthquake was a magnitude of 9.0 – the strongest in Japan’s history. The earthquake in Japan and its damage created some counterintuitive market reactions.
Secondly, one would think that U.S. treasuries and mortgage bonds would trade much higher, as often is the case when devastating natural events drive money into “safe haven” trades, according to John Ciolino, Coldwell Banker’s mortgage consultant. But that wasn’t the case John indicated.
Why? The answer – he says — is that buying of treasuries and mortgage bonds as a safe haven trade was offset by the Japanese selling some of their own massive holdings of treasuries and mortgage bonds in order to repatriate money back to their country during the time of emergency. Considering Japan is the second largest holder of U.S. debt at $877 billion — selling just a tiny position of their holdings — has an impact on bond prices. John indicated that oil fell last week, despite the news. Why? Shouldn’t unrest in Saudi Arabia – the world’s largest oil producer, push prices higher? Yes, he stated, “but that news was offset by the earthquake in Japan. That’s because Japan is a huge importer of oil… and the market senses that the earthquake and subsequent tsunami may create an economic slowdown and diminish the demand for oil.” 

The Japanese government has since shored up its economy with a major influx of money to hopefully offset a huge impact their horrible will have on economies around the world.  Obviously this is going to be a “wait and see situation.” 

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What is happening?  Well, it is going according to ‘plan’

When I first looked at the statistics for the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — I was a bit taken aback.  Sales volume was down 29% (egads, I thought)….all four of my communities were down in median sales price compared to the previous month….and median sales prices were down for the year.  What was going on? 

One has to look at statistics a year ago to find that we are basically on track with the same pricing trends as 2010.  At this point in 2010, we were down 30% in sales volume -this time (February 2010), we’re down 29% from last year in volume.  And all four communities were also behind where they were in 2009.)  

My mother always said that I was a ‘late bloomer’.  Well, not exactly, but it does seem that when you look at the February statistics provided by the MLS, you can see that individual communities reflect anomalies that don’t normally occur.  For example, Beverly Hills was down 79% in median sales price compared to February 2010.  That’s a huge anomaly — and it’s because we had sales of $7 million, $8.8 million, $10 million, $12 million, $16 million – all in February 2010, which accounts for this huge difference.  Bel-Air, which is down 54% compared to February 2010, also had three sales last year of $4.5 million, $5.2 million, and 5.4 million, which really bumps up the negative comparison with a limp 2011.  Beverly Hills Post Office was down %19 compared to February 2010 and Brentwood was down 23%. 

When you compare January 2011 to February 2011, it’s a bit more normal for a down period — Beverly Hills was down 32%; Beverly Hills Post Office was down 15%; Bel-Air down 23%; and Brentwood down 30%. 

Again, I try to keep a focus on trends — such as year-to-year median sales price — and while we are down in volume (again), these YTD #s reflect a more encouraging trend:  Beverly Hills YTD is down 33%, BHPO down 17%; Bel-Air is off by 3%; and Brentwood is down 16%, which is better than what this area did in 2010, which, overall, are a bit better than 2010.  Is this good or better news? 

There’s an old adage that seems to apply here:  “It’s too early to tell.”  2011 is barely underway and one indicator is DOM — Days on Market.  The average for all four areas is just 88 days, which is just under three months.  In this market, is this good or bad?  Several years ago, average DOM was over 120 days….so we’re heading in the right direction. 

Homes not priced right sit….and sit….and sit
Remember, DOM reflects many issues — mostly price.  Is your home priced right?  The farther away your price is from true market value, the longer your house sits….and sits.  The longer it sits, the faster the value declines.  Another key factor is the comparing Original Listing Price (OLP) to Selling Price (SP).  For example, when you look at these #s, you will find that Beverly Hills selling price (SP) to original listing price is 84%; Beverly Hills Post Office is 81%; Bel-Air is 88%; and Brentwood tops out the group with 90%.  Basically, these means that when you compare what a house came on the market for and what it sold for, Brentwood homes did better than Beverly Hills Post Office.

There are notable examples of seller ‘excess’ – wanting more but – in the end, getting less.  A home in Beverly Hills Post Office was first listed at $7.4 million and after sitting for 479 days, it finally sold for $4.5 million.  Another home in Beverly Hills came on the market at $3.75 million and sold for $2.78 million 229 days later!  Obviously, these homes were not properly priced and owners paid the price.  But the right pricing can turn the other way, too.  For example, a Brentwood seller put their home on the market for $3.3 million, had multiple offers, and sold almost immediately for $3.5 million.  A home in Bel Air was only on the market for 8 days, getting $325,000 more than the asking price of $3.075 million. Again, priced right with multiple offers.

How can you avoid risky price strategies?  Again, I’m going to tell you that unless you have a thoroughly experienced real estate agent who knows your neighborhood, you are risking value time and equity by not getting objective, accurate advice.  I cannot tell you have many times I have seen homes come on the market where the owner is absolutely rigid (and unrealistic) about the true market value of their home.  I have seen homes drop from $14 million to under $10 million….and in this buyer’s market, that is not unusual.  Buyers know they have the upper hand today — and the ONLY way you can protect yourself is to be objective and realistic about the challenges of putting your home on the market.  Knowledge and experience is everything.  I’m here to help. 

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An institution — Bel Air Bar & Grill — is leaving us….but only temporarily

It is famous as the Bel Air watering hole….but for at least 12 months, this local institution will be closing it doors (and tearing them down, too) staring mid-April.  The owners are going to redesign and rebuild this “hood” hangout, with plans to reopen in April 2012.  We’ll miss this local favorite.  If you’re in the mood for pizza, across the street on Sepulveda, Manny’s Pizzeria just opened in the small strip center across the street.  I have not been there, but from those who have, I understand the pizzas and salads are great.

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Nuclear power and the environment

Given what is happening in Japan today, and with both Chernobyl and Three Mile Island in the past, I thought this article would be particularly timely. I’m not totally against nuclear energy, I just prefer the closest nuclear reactor being 93 million miles away (the sun). Regardless, nuclear energy does have some very attractive attributes in a world becoming increasingly conscious of peak oil and climate change and I understandable that many people feel it’s a solution.
 
How does nuclear power work? Essentially, nuclear power seems quite simple. Nuclear fission heats water to generate steam, the steam turns turbines connected to a generator which in turn produces electrical power. It’s basically the same process as coal fired generation; just using what can be a very, very unstable fuel. Nuclear fission is the splitting of atoms, a process in which a great deal of energy in the form of heat is produced. Where things get complex are the controls and resources needed to keep the fission reaction safe.
 
Advantages of nuclear energy The actual generation of electricity using nuclear energy involves little in the way of carbon emissions. A single nuclear power plant can generate a huge amount of electricity. Running costs are low. Nuclear reactors have a long life span. Fuel appears to be abundant; however this is a hotly debated subject and one in which I don’t intend to enter.
Disadvantages of nuclear power

Mining Uranium mining destroys landscapes and uranium and other radioactive substances are released in the process. The mining and extraction process requires large volumes of water and various acids and alkalis. Contaminated water can leak from tailings dams into groundwater.
Greenhouse gas emissions Electricity generation using nuclear fuel is emissions free – but that’s just the generation. All the processes leading up to that point involve carbon emissions; but how those stack up compared to coal I’m not sure.

Accidents In a word – Chernobyl .. but now there’s also Japan. While the Chernobyl accident occurred decades ago, its legacy continues and may even worsen if the old plant isn’t properly dealt with. Even today, an exclusion zone of approximately 20 miles exists around the Chernobyl reactor and estimates are the region will not be safe for agricultural purposes for 200 years. The effects of Chernobyl are still measurable in countries as far away as the UK.
 
As for the current Japan nuclear emergency at two nuclear reactors at Fukushima power plant, north of Tokyo  – that situation is still evolving.
A nuclear meltdown can be caused by a number of issues, such as a failure in a plant’s cooling system, but my understanding is basically the fuel rods overheat to the point they melt. Beyond that meltdown, the worst case
scenario is where the containment structures then also fail – they may rupture due to a build-up of steam pressure inside. At that point, dangerous levels of radioactivity can be released and as in the case of Chernobyl, affect a very wide area.

Aside from the general immediate health and environmental effects should the Japan situation deteriorate into a Chernobyl-scale incident; imagine having to tie up so much land in an exclusion zone in a country with so little land available – and perhaps for centuries

Water consumption Nuclear power plants are thirsty operations. According to the Union of Concerned Scientists, for every three units of thermal energy generated by the reactor core, two units of waste heat go into the environment. Cooling systems for plants require huge volumes of water and a nuclear power station will use more water than a similar sized coal fired power station. Water intake and discharge has a negative effect on aquatic ecosystems – through the processing of the water itself which kills organisms and the raising of waterway temperatures during discharge. In a world where fresh water supplies are becoming increasingly unreliable in many places; there’s also no guarantee a plant that is built today will have the water it needs in a decade from now without causing even more related environmental problems.
Waste The issue of radioactive waste is an important one as what we do with it is a legacy that will affect future generations for thousands of years. The more nuclear power plants we have, the more waste is generated and it only takes a single incident to affect a wide area – and for a very long time. The waste can also be used by hostile parties to create “dirty bombs”. Aside from the human costs of such devices being used, the environmental impact needs to be considered.

Time for construction A solar power plant can be planned and constructed in a matter of months; a rooftop solar power system in a matter of weeks. A nuclear power plant can take decades – it’s not a short term solution for our energy needs by any means.

Misuse  Nuclear energy based power generation is thought to be a front in some countries for nuclear weapons programs. You cannot build a nuclear missile from solar panels, nor with the equipment used to make them. A nuclear energy free future removes some opportunities for covert weapons development.

 Availability of uranium While some say we have an “endless” supply of uranium, the same sort of spiel was once said about oil. Perhaps uranium is a plentiful resource, but how much of it is relatively easy to get to? Low-grade uranium ore contains as little as 0.01% uranium oxides and it takes a lot of uranium oxide to make nuclear fuel.

There are advantages and disadvantages for all power sources. Here’s hoping the people of Japan are not again subjected to the nightmare of a widespread radiation incident on top of everything else they have to contend with at the moment.

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My properties for sale… We just reduced the price on my fabulous listing at 20726 Pacific Coast Highway in Malibu to $8,099,000. With spring around the corner, beach living is a wonderful alternative for those “staycations. 

 Back in town, I just listed a wonderful one ad den at The Terrace in Mountaingate, a newer 4/3.5 Canyon home for $1,725,000 in Bel Air Crest and have my great 3/2.5 plus den for $1, 360, 00 also in Bel Air Crest and for those of you who long to build your own dream home a lot in Bel Air Crest for $3,250,000.  Please call me at 310 432-1384 or check out my web site, caroleschiffer.com for more information.  Looking forward to hearing from you.

For example, the meeting was held at the amazing new home at the corner of Sunset and Alpine in Beverly Hills. It is on a little less than two acres….approximately 36,000 square feet with nine bedrooms and 13 baths! The details are awesome – gold-plated fixtures, including door handles, all of the doors are lined in brass, hand-painted walls including guilding, and the limestone exterior was completely hand- and custom-made. All of this magnificence can be yours for $68.5 million! But this was not the only house that was discussed in the $20 million to $50 million price range. Obviously a few sales in this price range will do wonders in boosting the numbers.

However, some news reports on real estate and housing can scare the hell out of you….The Los Angeles Times reported last week that new home sales fell 12.6% in January….but as you read on, it gets worse: This is a dismal sign after the worst year for that sector in nearly a half of century. A half century! And while new home sales are not necessarily a major factor in our market — it’s the headline that rattles around in your brain and fosters a sense of fear and concern. As I have mentioned before, just going through the paper is enough to make you crazy and suspicious as there can be two to three articles in the same section of the paper on the same day that completely contradict each other as pertains to the status of our market and economy.

So it is with some restrained humor to report that if you just read the headlines, one might cut their wrists to see/hear about falling prices. For example, on February 15, Data Quick — a reliable real estate reporting firm out of San Diego, noted in the Los Angeles Times that Southern California home sales and median sales price edged lower. In the San Fernando Valley median sales prices, for example, were down in December 2010 and again 7% in January. Fortunately this same situation is not holding true south of Mulholland. But at first glance, a homeowner looks at the region’s statistics and assumes that their homes is clustered into that bucket of real estate soup…and sadly trudge onward.

What I try do in the SchifferLine is to bring clarity and “real numbers” that directly affect your home. My monthly stats issue’s goal (on the 15th of the month) is to deliver the best available data I can acquire from our member Multiple Listing Service as well as other sources. I want you to know exactly what is happening in your neighborhood and community as that is the most important thing, right?

So, after going deeper, one can quickly realize that while we are part of Southern California (or even Los Angeles County)….our communities are unique and well positioned in today’s market.

Every community, every neighborhood, and every street and home is different. The strength and breath of our Westside communities have endured the ravages of real estate deflation to a large extent. We have a ways to go…..but don’t believe everything you read. We’re a resilient bunch

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Here is an update on home financing….while the lending waters are still difficult to navigate I can tell you that it is getting better, slowly, but surely. I am seeing loan approvals being obtained in 21 days! We have not seen that in a few years. Most of the appraisers I have run into in my transactions lately are once again from the Los Angeles area, and they are familiar with the area, properties and have been more realistic in their appraisals. Hopefully thiswill continue. Also as stated in a recent LA Times article, all cash purchases are on the rise, in fact in the $1,000,000 and up market, 29.2% of the buyers paid cash, which is the highest percentage since 1994. For homes selling for $5,000,000 and up 62.2% paid cash. In the past 2 years, approximately 50% of my transactions have been all cash.

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It’s Spring Cleaning time of year…..don’t you just love it?
Spring is one of the loveliest times of year, so why do we celebrate this Rite of Spring by cleaning out our closets, garage and getting rid of all the stuff we accumulated since last spring? There must be a law someplace against this.

The arrival of spring is supposed to bring warm weather, which is – as I have discovered — the inspiration for spring cleaning. While we have certainly had our share of cold and rain lately, it’s nice to know we have warmer days ahead. Spring cleaning is sort of a ‘rite of passage’ — taking us from winter’s cold to summer’s heat, and in researching who ever thought of this idea in the first place, no one really knows for sure. And do we care? Spring cleaning has been a tradition for centuries in Persia, starting on the Iranian Norouz, or Persian New Year. In preparation for Passover, Jews have a tradition of cleaning their homes this time of year, and of course, Americans utilize the warming months of March to clean up winter’s mess. At least we haven’t created a national holiday for Spring Cleaning. I truly believe Spring Cleaning is akin to New Years’ Resolutions — it’s a nice objective, and we have to be patient about this.

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Preparing your home to sell
Since spring traditionally has been the busiest time of year in real estate (but that has changed in the last few years as there is no busiest time of year), there are some practical reasons to get your home/yard in order. Without question, presentation is everything in today’s tough real estate climate. A home that doesn’t show well doesn’t do well. And when you consider that nearly 50% of buyers make their decision to purchase a home before they even get out of the car, curb appeal becomes extremely important. My philosophy about making repairs to your home reflects the reality of the market today….

Buyers today feel empowered, and to a degree they are, so if there are things in the house that needs to be addressed such as your carpet, kitchen, floors, etc., they will completely over estimate the repair costs by at least 20 -30%. For example, if a repair/replacement of an item will cost $10,000 they will use their estimate of $30,000 in their decision as to what to offer on the property… so my feeling for sellers is to “take the power back”.. If you can make the change yourself or at least make it look better”, why should you as the seller leave money on the table?

Here is a consensus list of the most important ‘clean-up’ factors for you to consider:

1) Eliminate clutter. Clean out your garage, closets and all of the stuff you’ve accumulated around the home’s exterior. Buyers want to know what lies behind those hidden doors and they’ll look when you’re not lookin’.

2) Clean up walls, windows and floors. Buyers are extra picky these days, and your floors must be in excellent shape….remove outdated window treatments such as old drapes, bent metal blinds, and clean your windows. If you need to paint your walls, paint them. Also remove old wallpaper.

3) Landscaping. Curb appeal is everything. Did you know that nearly 50% of buyers will make a decision to purchase a home BEFORE they get out of their car? Landscaping makes a difference. Step out into the street and see how your home looks….get opinions from professionals, like me, to evaluate the look and feel of your property.

4) Clean interiors. Your home should not look like 30 years of history. Your marketing goal is to sell the property. Buyers want to be able to visualize how “their stuff” is going to fit, not yours. A “buying sign” is when buyers start talking or thinking about how they would place their furniture/things.

5) Kitchen and baths. Improving these two areas in the house are the “money shots”! Sometimes it can be as simple as just painting the cabinets and changing the hardware. Obviously if you have the ability to do so, and they need them, changing the appliances in the kitchen will go a long way.

6) Exterior improvements. Since so many buyers make their decision to purchase a home before they even get out of the car, a buyer needs to make whatever capital improvements that brings the home’s exterior to a competitive level. Yes, you’re in competition with every other home on the market in your price range (there are five homes on the market for every buyer) and a well-designed landscaping plan plus a quality home exterior are guarantees that buyers will at least get out of their car and into your home.

At the end of the seller’s day, the key to selling your home requires two basic elements: 1) The right price; and 2) the best presentation possible — inside and out. And the best way to insure you’re on target with each of these requirements is to retain the services of an experienced Realtor who knows your neighbor….like me!

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Repurposing old neckties into something functional

Repurpose old ties into something functional, repurposing, also known as reusing, is the second most important action of the green 3 R’s – Reduce, Reuse, Recycle.
I think most men who spend much of their lives in office jobs tend to accumulate a pile of ties – and some only get worn once or twice, fashion (planned obsolescence) being such a fickle thing. They are also easy and relatively cheap gifts to give; but gifts that may sometimes not appeal. So, what to do with these neglected neckties? Repurpose them.

Ties That Matter create reasonably priced and unique bags and pillows from neckties that are donated to the organization. The company also employs women in need to make the creations and donates a percentage of its revenue to help finance support services for the homeless. Zero waste, recycling and reusing materials, providing work to disadvantaged groups and plowing some of the returns back into the community – what a great business model. The creations made by Ties That Matter are all originals and look pretty good too: You can see their products on their web site, http://www.tiesthatmatter.com/ or they are at a number of craft shows throughout the country.

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It looks like it is going to be beautiful this coming weekend, and I will be holding my fantanstic Malibu beach house open (20726 Pacific Coast Highway) which has just been reduced to $8, 450,000. I will be there from 1 – 4, and I invite you to stop by and say hello. Next week, I will be holding my lovely listing at 11816 Henley Lane in Bel Air Crest open (new open house hours 2 – 5), so again I invite you to please stop by.

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The Oscars are coming…the Oscars are coming

On Sunday, February 27, we get a chance to view fashions and the glamorous stars that wear them on the Red Carpet and finally getting to see who actually wins an Oscar. We don’t have Marlon Brando refusing to accept an Oscar (as he did for “Last Tango in Paris”). .Just a little bit of Oscar history; the first Academy Awards Ceremony was held on May 16, 1929, at the Hotel Roosevelt. It was hosted by Douglas Fairbanks, and the after-party was held at the Mayfair Hotel. Oscar stands 13.5 inches high and weighs 8.5 lbs and depicts a knight rendered in Art Deco style, holding a crusader’s sword standing on a reel of film with five spokes. The five spokes represent the original branches of the Academy — actors, writers, directors, producers and technicians.

This will probably be the first year that I won’t be watching as I will be in Las Vegas celebrating my birthday, so I will miss the Oscar parties where everyone ballots and bets on who makes the most correct choices for the winners. Good luck if you are attending one of those fun parties!

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Luxury home sales jump — so says LA Times. But you heard it here first…..

It’s nice to know that we sometimes get things right in The SchifferLine. As the Los Angeles Times reported last week, luxury home sales jumped 21% in California — which is not news to SchifferLine readers — we told you that last month in our January 15 edition. We had a good 2010 relative to the past three years — combined homes sales were up nearly 20% in the four communities I cover — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood….and each of three areas averaged a 7% median sales price increase, except for Brentwood, which struggled for most of 2010.

According to Los Angeles economist Christopher Thornberg….”we’re pretty sure we’re at the bottom for home prices. Even if prices fall further, if you are borrowing — buying today makes a lot of sense because interest rates are (still) incredibly low.”

Two other reasons for the rebound is the return of the jumbo mortgage market and a comeback in the stock market he said. Cash purchases were also up, the highest year since 1994. But even cash purchases can be motivated by low interest rates — “a lot of cash offers are done on the basis of the person trying to get a leg up and then they turn around and re-finance.”, Thornberg said.

It is no surprise to yours truly — I have had one of the most active years in my real estate career — perhaps it was the Real Estate God, good Karma, but I suspect it is just hard work and sticking to my game plan that has proven successful in these very trying and challenging times — giving my clients the best possible service 24/7, effective and efficient communication on every level, knowing how to deal with difficult transactions when creativity is demanded, and yes, even The SchifferLine plays a key role. One of my new clients remarked she was debating between working with me and another agent who really did not market themselves that effectively, and she felt that “….if you can’t market yourself, than you can’t market my property.” And that’s true. I’m not here to blow my own horn — but the facts are that it is difficult to keep up with market trends. That’s why it is extremely important to choose a Realtor you can trust — who knows your neighborhood – inside/out – and who has a proven track record. I cannot tell you of the number of unique circumstances that cropped up these past three years because of the recession, lender fallout and incompetence, and buyers and sellers who are constantly being whipped back/forth over what to do. Patience, in this industry, is, indeed, a virtue. I never have enough of it — but I try.

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January 2011 continues strong trends from last year….

The first month of every year is always a sneak preview of what lies ahead….and January 2011 was no exception. We are continuing our trends from 2010 with median sales prices; however, volume is down 11.6% in the four communities I report on — Beverly Hills, BHPO, Bel-Air, and Brentwood. That’s not too alarming, though — when you look at the sales in the same communities for 2010 in January, there were three large estate sales that really affected the comparison between January 2011 and January 2010. Bel-Air had a $14.8 million sale in 1/10; Brentwood also had one for $14.2 million; Beverly Hills Post Office had one for 23.5 and Beverly Hills had one for $23 million — all the rest of the sales were between $990,000 and $5-6 million. So, volumes went from $96 million down to $86 million for January 2011 year-to-date.

The big winners for median sales price performance for January 2011 were Beverly Hills, which had a 46% increase and Bel-Air had a 24% increase over January 2010. BHPO was down 25% (although up for all of 2010)….and Brentwood was down .5% in comparing January to January. Brentwood’s performance, hopefully, portends a positive trend for the balance of the year since its median sales price was languishing under 20% all last year.

When you compare month-to-month stats — you’ll find that Beverly Hills was up 7% over December 2010; BHPO was down 26%; Bel-Air was up 12%; and Brentwood was up a strong 17%, which is good news. I’m counting on Brentwood to have a great year.

I can’t know what else you’re receiving in terms of real estate news as it pertains to your community, but I try every month to give you insight and the best statistics available. The Multiple Listing Service (MLS) is not always the most efficient in tracking these numbers — mainly because they allow the stats from a property that was listed with two different agents to be counted twice, rather than just once. Every time I come across this situation, I figure it into the stats and percentages I give you. Since I have been analyzing these #s every month for over five years, I believe that this is the best information you can get on a month-to-month basis. If you would like any other information, please e-mail me — I get questions all the time, and am only too happy to oblige your request.

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 So, has the market bottomed out? Advice from experts — don’t wait to jump in

Reading any of the dailies — online or offline — you’ll read that now is not the time to sit on the fence. If you wait too long, you’ll miss out on the bottom and only regret it later. According to Michael Corbett, author of “Before You Buy: The Homebuyer’s Handbook for Today’s Market”….if you’re into bottom-fishing, now is the time to start trolling for real estate.” His advice — don’t wait too long or you’ll miss not only the bottom — but the low interest rates as well.

There are a number of other indicators that the market/economy is picking up…

There are a few lenders who are back in the equity lending business. That is GREAT news, totally showing a growing confidence in our economy.

Also on a personal note which I think is also an indicator of the perspective of the market/economy, a few weeks ago I attended the second annual Art Los Angeles Contemporary at the Barker Hanger in Santa Monica. This is a different show from the Los Angeles Art Show which is held at the Convention Center downtown and deals with all medium and vintages of art. The show I attended is only for Modern or Contemporary Art. It was very well attended and there were a number of very expensive pieces of art that were sold while I was there. The art market is proving to be a strong indicator of the market, worldwide.

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 When throwing something away, know where away is

I don’t know about you, but I remember the “fix-it shop” where we took our broken appliances to be fixed rather than throwing them out as we do today. Our toys lasted and were passed down because they were sturdy and fun. I still save bags, boxes and wrapping paper to use again. As we “progressed” and became more affluent and small appliances and other items became less expensive, it was cheaper and more convenient to buy new and throw away our old stuff.

You may have noticed at Whole Foods they have separate trash bins labeled compostable, mixed recyclables and landfill. I am sure we have all seen the recent articles in the paper about what happens with our trash. If you have not seen it before, you might enjoy (or perhaps not) watching “The Story of Stuff” a video by Annie Leonard www.storyofstuff.org. It is about 20 minutes long and presents another way of looking at our culture of consumption and disposal.

This information comes courtesy of Debra Spector, Committee Chair of the Environmental/Conservation Committee at Brentwood Country Club.

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I am very busy, I have a new lot listing in Bel Air Crest, it is the last of the Mohicans, a flat 15,131 sq foot lot on one of the best streets in the community, I also have a new listing of a Canyon home in Bel Air Crest; it is a 3.2,5, den at 11816 Henley Lane, approx 2760 sq. feet and is listed for $1.4. I have a few more listings in both Bel Air Crest and Mountaingate coming on line in the next few weeks, and please do not forget my beautiful listing on PCH in Malibu.

In the meantime Thank you again for your business and support, I very much appreciate it.

Malibu still has its cache….and then some.  I have a magnificent listing on Las Flores Beach (a dry beach vs. a ‘wet’ one) in Malibu that is listed for $8.95 million.  This is one sexy, sophisticated home, right on the beach — it is seductive, luxurious, and elegant.  It’s been described as a “city house” on the beach — has all the “bells & whistles”, and is located on a glorious stretch of beach between Moonshadows and Duke’s.  When you walk into the house, you’re overwhelmed with the floor-to-ceiling, wall-to-wall view of the Pacific Ocean — it’s intoxicating, and when potential buyers walk through the front door, its OMG….they’re awestruck at the incredible view and feeling of being in a very special place on this Planet. 
The house, though, reflects my client’s elegant and superb tastes in creating stimulating and appealing interiors — but this time, the incredible exterior just melts into a beautiful interior giving the home the sense that it just goes on forever off into the blue horizon.  We just need to be patient as it takes a little longer to sell houses in “the boo” today.

What buyers want…..like the house in Malibu, it’s not only contemporary, but it’s a complete, state-of-the-art residence unlike many anywhere.  Buyers today want homes that are either “done” — with all the up-to-date whistles and bells that require nothing else to do…..or they want it “as is”, meaning they’ll fix everything themselves and  want the price to reflect that.  This goes along with the price sensitiveness of the market today.  For a house to sell “as is” — that’s exactly what it means:  The seller will not pay to repair broken windows or paint a door or fix a sprinkler.  “Sellers are not paying for any repairs, period!”

Over the past several years, sellers have been hardening their positions in many cases when they know they’re taking a “hit” on the price — realizing that they have lost a fair amount in equity over the past several years, and frankly, they’re “not taking it anymore.”  It’s not they’re bitter…..it’s just the realization that bargain hunters are not going to make sellers grovel for a sale anymore.  There are lots of bargain hunters out there who are more than willing to fix it themselves. 

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Despite a weakened housing sector, the economy is moving on……
California’s housing market has not rebounded as quickly as some of us would like, but according to
several prominent economists, the housing sector — while depressed — is not going to impede the local economy.  According to Edward Leamer, director of the UCLA Anderson Forecast, “we’re going to have a growing economy.”  That’s notable, he says because historically housing has led the economy out of recessions.  This time, it hasn’t and it won’t.  “That’s the price we’re paying for the bubble years.”  New-home construction accounted for a mere 2.2% of gross domestic product in last quarter, 2010, compared with 6.1% for all of 2005, before the bubble burst.  But other sectors are picking up the slack.  One of the most important barometers is consumer spending (70% of GDP), rose a “robust 4.4% annual rate in the last quarter.  Exports grew at 8.5%, and spending on equipment and software rose 5.8%, although that was nearly a third of what it was in the 3rd quarter. 

Job growth remains the challenge, and housing will continue to suffer from that — as indicated in inland California, where property values have decreased as much as 75% in Stockton.

Stuart Gabriel, PhD, director of Ziman Center of Real Estate, UCLA, indicated that foreclosures are down, and “we are seeing signals that there are modest improvements — but that hasn’t been the trend.”  The downturn has been more severe in California’s interior markets while the coastal and Silicon Valley areas have taken “less of a hit.” 

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More Fun Facts about Money…………………..
During the Civil War, the Bureau of Engraving and Printing was first called upon to print paper notes in denominations of 3 cents, 5 cents, 10 cents, 25 cents and 50 cents. The reason for this is that people hoarded coins for their intrinsic metal value, which created a drastic shortage. These first bills, called greenbacks, were used to pay Civil War soldiers.

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Two good reasons to celebrate this month! Chinese New Years and Valentine’s Day!
We can never get too much of a good thing, especially after a somewhat chaotic (and for some, a miserable) 2010. 

Chinese New Year….No, New Years is not over.  Chinese New Year’s begins Thursday, February 3….and it lasts for two weeks, ending February 22.  According to the Chinese Zodiac, the Year of 2011 is the Year of the Golden Rabbit, which begins on February 3, 2011 and ends on January 22, 2012.  The Rabbit is the fourth sign of the Chinese Zodiac, which consists of 12 animal signs.  The Rabbit is a lucky sign.  Did you know that rabbits are private individuals and a bit introverted.  People born in the Year of the Rabbit are reasonably friendly individuals who enjoy the company of a group of good friends.  They are good teachers, counselors and communicators, but also need their own space.  According to Chinese tradition, the Rabbit brings a year in which you can catch your breath and calm your nerves.  It is a time for negotiation.  Don’t try to force issues, because if you do you will ultimately fail.  To gain the greatest benefits from this time, focus on home, family, security, diplomacy, and your relationships with women and children.   Make it a goal to create a safe, peaceful lifestyle, so you will be able to calmly deal with any problem that may arise.  It also brings some interesting customs to observe; Sweep for success – clean your house from top to bottom, Dress for the occasion – buy and wear something new – preferably Red for Good Luck, Add luck to your menu – some symbolic foods -   sweet sticky rice cakes, dumplings, and a whole fish. All of these foods have different symbols.

 ???????           gong-xi-fa-cai    or as we pronounce it gong hay fa choy

Valentine’s Day…this year Valentine’s Day falls on Monday, February 14 –.  Did you know that in a
survey taken just last year, 67% of females felt that their Valentine’s Day celebration “failed their
expectations…” Guys note that one! And further, did you know that women much prefer colored roses to
the standard red roses so often selected by the male? Of course you didn’t. This is totally contra to all the surveys that I have read with red roses signifying love, and all of the other colors having different means, so like everything we see today, another mixed message.  Well, I hope you enjoy both holidays — we can never get enough of a good thing!
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Construction on 405 continues….beware of notices
Because this is a “design build” project, it changes on a regular basis, but we all need to remember that it is a work in progress and will be with us for a while. ….so please be aware of the notices sent to in their twitter page regarding street and on/off ramp closures during this construction period in Sepulveda Pass www.metro.net/405  Stress less is the motto!  

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Cotton facts……..  Cotton swabs, balls and rounds are made from gin trash.  Gin trash is the low-grade by-products (short fibers, leaves and stems) stripped from the cotton boll.  By-products like these are often given to cattle to eat but conventional cotton is so contaminated with pesticides that  it is illegal to feed it to cows in some states such as California.  Instead it is used to make pillows, mattresses, cotton swabs, cotton balls, etc. 

The difference between the ecological   impact of organically grown and conventionally grown cotton is huge.  Conventionally grown cotton is one of the most chemical intensive crops on the planet.  It occupies only 3% of the world’s farmland, but uses 25% of the world chemical pesticides! In the US, conventionally grown cotton uses 1% of agricultural farmland and 10% of agricultural chemicals. The USDA found that eighty four million pounds of pesticides were sprayed on cotton, making it second behind corn. (Remember that when choosing between corn fed and grass fed beef). 

The EPA considers seven of the top 15 pesticides used on cotton to be “likely” or “known” carcinogens.

 Besides pesticides conventional farmers also use synthetic, petroleum-derived fertilizers, soil additives and defoliants which affect soil, water and air.  In the US, no genetically engineered materials are permitted to certified organic products.  You might want to consider using organic cotton, the use of which grew 152% during the 2007-2008 year. 

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So what listings do I have coming up?  A few.. I have two listings coming up in Mountaingate, one in Bel Air Crest, one on Lower Casiano, and another in the Clark Gable Estates area of Encino (a lovely house with its own tennis court and two bedroom guest house)!  If you have any interesting in seeing any of these properties or know someone who might.. Please let me know.. Also I am looking for leases in Bel Air Crest…

Take care and enjoy the two holidays (Chinese New Year’s, Valentine’s Day)!