Timely Real Estate News……………………………………………..15 October 2013
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Los Angeles rich history will surprise you….the French Connection
French contributions to early Los Angeles are largely unknown and forgotten. You may not know this, but there was a very strong French connection to the early history of our wonderful city. For example, did you know that the site of Los Angeles’s first hospital was The French Hospital, which was built in 1869, which is now the Pacific Alliance Medical Center on College Street at Chinatown’s northern end. A bronze statue of Joan of Arc stands “like a sentinel”, one of the vestiges of a French community that once thrived in downtown.
In the mid-19th Century, the city’s growing French community made up more than 10 percent of Los Angeles’s population, and the city had three French mayors between 1859 and 1876, and even a weekly French newspaper was produced.
The French started arriving in the 1820s and 1830s, and the traces of the French Colony (or “Frenchtown” as it was called) have all but disappeared. However nearby streets remain named for early French pioneer settlers such as Louis Bauchet and Jean-Louis Vignes. What I found fascinating is that in 1827, Bauchet — a former officer in Napoleon Bonaparte’s Old Guard, moved to Los Angeles where he bought a vineyard (of course) along present-day Bauchet Street. Vignes followed in 1831 and he planted 104 acres of Bordeaux grapevines on the current Union Station site, thus becoming one of California’s first commercial winemakers. And when California became a state in 1850, more French arrived, along with Belgians and Quebecois, who formed a tight-knit community along the thoroughfares of Aliso, Commercial, Alameda, and Spring streets.
Of note, the historic Pico House turned into a French-owned National Hotel, and the Merced Theater housed the French Society, and many buildings commissioned by French developers remain part of El Pueblo de Los Angeles State historical Monument, such as the Garnier Building, Hammel Building, and the Vickrey/Brunswig Building. After World War I, French immigration to Southern California declined, but many businesses with French roots continue in some form.
Le Mesnager Barn — built in 1914, this authentic French farmhouse was erected by the French Le Mesnager family in what is now La Crescenta — it was used to store grapes for their downtown Los Angeles winery….it was purchased by the City of Glendale and restored…and a modest vineyard is tended by the Stonebarn Vineyard Conservancy.
Philippe The Original — you’ve probably eaten at one of the city’s most famous restaurants, located near Union Station and at the heart of the original French community in northern Chinatown. It features, of course, its famous French dip sandwiches….and it was started by Philippe Mathieu, and he started selling his famous dip sandwiches in 1918. Philippe’s was originally at 246 Aliso Street, and the restaurant moved to its current location on North Alameda Street in 1951.
Taix French Restaurant — located in Echo Park, this family-run, fine-dining restaurant was originally built by a Frenchman named Marius Taix, who opened a bakery in 1882 in downtown Los Angeles, and later a three-story hotel on Commercial Street. The restaurant first opened in 1927, but it moved to its present Echo Park location on West Sunset when the building was sold to make room for a municipal parking lot in 1962. Taix is an elegant, old-style French-decor themed eatery..
Vive la France! was and continues to thrive in Los Angeles. Our city is a diverse melting pot of peoples from all over the world….getting to know your city is just one of the great joys I have in bringing you tidbits of history in the SchifferLine.
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The Stats New data format and what it means….a better view
As you all know, I have been relying on the Multiple Listing Service’s data to provide you with the monthly stats. Yes, there have been glitches and starts/stops on how they collect and send us data, but over time, we have overcome the few flaws that occur now and then. But now, the MLS is offering us a much more detailed view of what is going on in the four communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood. In fact, the mountain of data I am getting now is a bit overwhelming, so I won’t bore you with too much; that would put even a real estate agent to sleep. One of the reasons for the change is that recently the MLS basically opened up their “doors” to enable agents from outside of a local MLS service area access to statewide information on sales plus the ability to list and sell properties outside of their “normal” service area. For example, with the recent sale of the Moraga Vineyard, the property while sold by a Beverly Hills agent, was in fact listed by an agent in Newport Beach. So now we are getting a more complete and accurate listing of information. Suffice it to say, I feel much more confident in our new numbers than before….and we’ll still be covering Median Sales Prices and comparisons to year-to-date and comparing year to year….and I will have a new report on the # of new properties hitting the market each month, along with a very accurate report on “Days On Market” (DOM). So, this is an exciting step for us in our reporting to you — and our goal, as always, is to provide you best, most up-to-date data on your community possible.
Median Sales Prices continue their rise…..
Many of you have asked about the ‘value’ of tracking the median sales price on residential sales, and as I tell everyone, it’s the best way to measure the true ‘median’ of what is happening in our communities, especially when we have such large transactions that can soar in the tens of millions, which really skews the normal average sales price. The new format shows that all four communities have continued to rise above the previous year (September 2012 vs. September 2013).
Bel-Air has the biggest jump in median sales price increase, growing 20% over September 2012 — going from a MSP of $1.378 million to $1.650 million in the past 12 months ( of course, the sale of the Moraga Vineyard at $28,800,000 is a prime example of a large sale skewing the numbers). Brentwood was next with a 21% MSP increase, going from $1.746 million to $2.180 million; Beverly Hills Post Office was next with a 4% increase — from $1.700 million to $1.861 million; and Beverly Hills, going from a hefty $3.984 million to $4.120 million over the last year.
Strength seen in number of new properties coming on the market
One of the new stats that reflects the strength of the current market is in the number of new properties that came onto the market in September 2013 vs. a year ago. Beverly Hills went from 21 new properties listed in September 2012 vs. 32 properties for September 2013, a 32% increase. Beverly Hills Post Office did even better, generating a 106% increase, going from 21 properties to 42 properties this past September; Bel-Air and Brentwood had modest increases — Bel-Air showing a 3% increase (22 to 24 properties in 2013); Brentwood had 34 vs. 35 (2013) properties for September.
What this does reflect is that Beverly Hill and Beverly Hills Post Office continue to demonstrate increased demand while still showing their median sales prices holding steady. And while Bel-Air and Brentwood had modest gains in number of properties listed in September, their median sales prices are accelerating faster than Beverly Hills and BHPO.
All of these latest numbers are showing continued market growth….and no better gauge than to see the number of properties increase, even modestly. Sellers have become increasingly confident that they are going to sell their home once it’s listed on the market — and more importantly, the continued strength in home prices shows that they are getting their price if it is price appropriately. Even with the strength of the market we have been experiencing, if the price is out of line, for whatever the reason, the property will linger on the market, perhaps not even selling.
But how does this relate to the reality of “days on market”?
Always a bellwether in real estate is when properties sit too long and languish…and buyers are very sensitive to homes that sit and sit and sit — something is wrong here. For three of the communities I report on, the Days On Market (DOM) for homes sold in September 2013 vs. a year ago are really encouraging: Beverly Hills went from an average of 79 days on market last September to 54 days, an improvement of 31%…..Beverly Hills Post Office improved by 46%, going from 125 days on market to 68 days on market….Brentwood improved 35%, going from 76 days on market in 2013 to 50 days on market this September. Only Bel-Air showed a decline in days on market for year-to-year comparison — going from 106 days on market in 2012 vs. 111 days on market this year, or a 5% increase.
Days on market is increasingly coming down as the real estate market heats up with the increased number of new listings. The growth in Beverly Hills and Beverly Hills Post Office in number of new properties listed and the increase in median sales prices in Bel-Air and Brentwood are very encouraging signs across the board. I am as busy as ever, and have a lot of new business in the pipeline, which is always good news as we approach the end of the year.
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Button up your overcoat…better yet, donate it to a worthy cause starting October 15
I am excited to announce a new program to help one of our very worthwhile charities in the area — OPCC — formerly the Ocean Park Community Center. By working with OneWarmCoat.org, a national organization that collects overcoats (or any warm outerwear garment – sweaters, coats, etc) and donates them to needy individuals or agencies. .I have selected the very needy and successful OPCC agency located in Santa Monica. During the time period of 15 October and 15 November, please give me a call at my office, 310 442-1384, and I will arrange a time to come by your house, and pick up your items and drop them off at OPCC. OPCC is a network of shelters and services for low-income and homeless youth, adults and families, battered women and their children and people living with mental illness. Founded in 1963, OPCC is a community-supported organization in which staff, volunteers and clients work together to address the effects of poverty, abuse, neglect and discrimination. Its success stems from the full range of services provided by 10 signature programs. OPCC is a 501 (c) (3) non-profit organization. The projects are funded in part by the City of Santa Monica, the County of Los Angeles, the State of California, the Federal Government and numerous private donations from concerned individuals, civic organizations, local businesses, foundations and religious congregations. For more specific information on OPCC, I invite you to please visit their web site.,, www. opcc.net
So, get on board — go to your closet and pull out that overcoat you don’t use anymore — and give me a call — Carole Schiffer — 310-442-1384….I’ll come over and get your coat personally. It’s fall….the nights are getting colder….and it’s time for our homeless and needy to button an overcoat. Thank you in advance for your generosity..
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More young buyers are entering the “luxury” real estate market.
Results of a recent survey certainly resonates with our market today on the Westside. I am finding more and more “younger” buyers entering the market who are aggressive and driven to get the best luxury ‘bargains’ in the market. This is one of the reasons that multiple offers are becoming more intense as the quality of inventory remains relatively low but the demand is high for quality properties, especially in the so-called “luxury” market. As we all know, approximately 80% of today’s buyers do their home shopping on line first, and young buyers are generally more conversant with all of the tools and vehicles available to them to do their searching on line.
The survey conducted by Coldwell Banker Previews International and the Luxury Institute found that wealthy younger buyers are driving the luxury real estate market, and they are willing to pay more than similar wealthy buyers age 55 and older.
According to the survey of Americans age 21 or older with a minimum gross annual household income of $250,000, 43 percent of younger wealthy consumers are considering the purchase of residential property in the next 12 months, compared to 21 percent of those aged 55 and older. On average, these younger wealthy consumers spent more than $2.1 million on their most recent purchase of residential property, approximately twice the average amount spent by older and similarly wealthy luxury buyers, which was $1.1 million.
“This trend towards younger luxury buyers is leading a change in desired home amenities,” said Betty Graham, president, Coldwell Banker Previews International NRT. “Whether these younger buyers have young families or are single without children, they are looking for homes that fit their active and unique lifestyle.”
More Young Money Enters the Real Estate Market
So what are they buying? The survey found:
• Younger buyers are significantly more likely than wealthy buyers age 55 and older to want homes with amenities such as a pool, outdoor kitchen, home gym, home theater, wine cellar and four or more garages.
• Wealthy consumers under age 55 are more than twice as likely (23 percent) to value Green or LEED certified residential properties than their older counterparts (11 percent).
• Open floor plans and a fully automated and “wired” home environment are the top features wealthy consumers, regardless of age, say have become important to them in the last three years. Less importance is placed on staff quarters, tennis/sports courts and separate catering kitchens.
“Luxury homes are for more than successful and retired empty nesters,” said Milton Pedraza, CEO of the Luxury Institute. “Today’s luxury buyer is both dynamic and diverse, and it’s reflected in the homes and products they’re buying.”
Additional Survey Findings
• They may jet set internationally, but they are buying in the U.S. Only 6 percent of wealthy homeowners surveyed own residential property located outside the United States.
• For majority of luxury buyers, location is the most important factor when considering the purchase of residential property. Seventy (70) percent of wealthy consumers identified location as the most important factor in their last residential purchase. Other elements included the condition of the property – brand new with no work required, as opposed to needing major renovations (10 percent), price (8 percent), home amenities (6 percent) and view (6 percent). The most commonly cited reason for wealthy consumers not considering the purchase of a residential property was the desire to keep assets liquid (24 percent).
• However, nearly one in four have the freedom to choose a property anywhere. Overall, 22 percent of wealthy consumers, and 24 percent of wealthy consumers with a net worth of $2 million and greater, have more freedom to choose a residence that truly fits their lifestyle and will not limit their search based on location.
• The wealthier they are, the more they spend on real estate (by far). On average, wealthy consumers with a gross annual household income of at least $400,000 spent 225 percent more on their most recently purchased residential property than those with incomes between $250,000 and $399,999 ($2.58 million vs. $792,000).
• Interest rates matter, even for the wealthy. More than one in three (39 percent) wealthy consumers listed low interest rates as a reason for considering a residential real estate purchase, making it the most commonly cited motivation amongst wealthy consumers. Other frequently listed motivations were the desire to own a property in a specific location (35 percent), viewing the purchase of residential property as a good investment (32 percent) and the desire to own another residence (31 percent).
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Day of Giving
For the past number of years, through the Coldwell Banker Community Foundation, we have been collecting food and money for the less fortunate to provide meals for Thanksgiving. Every Coldwell Banker office will have barrels in their offices for this collection. I have taken this to the next step, and on Saturday the 23rd of November (the Saturday before Thanksgiving), myself and my office mates will be at Vicente Foods asking people to pick up an extra can or two while they are shopping for their family celebrations. We have been doing this for the last few years and it has been amazing what people will do. All of the food and money we collect goes to the Westside Food Bank who tells us that with the change in the economy, a number of people who in the past had been donors, were now recipients of the food and money. Last year, we collected $800 and filled 10 barrels (about 3 tons) of food in just one day. So if you have some extra items for our barrel just give me a call and I will stop by and pick it up, or if you want to stop by Vicente Foods on the 23rd and say hello, please do so.. We all would love to see you!
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Don’t you just love to get those tax bills in the mail? Payers beware!
If you’re like me, getting your property tax bill in the mail is not exactly like getting a Happy Birthday card. As you know, property tax bills were just sent out with the first due date on the 10th of November, and the second due date the 10th of February of next year. As a result, I am also starting to receive those offers for a “free” service to apply for a reduction in my property taxes for next year.
So let me be clear: You don’t need to pay outside “consultants” to help you with the possibility of lowering your property tax bill, which should be based on current market values. I am more than happy to give you the market information FREE. I do this all the time with a lot of you. Just give me a call at 310-442-1384 (my office). As has been my experience, you don’t always win the battles with the LA County Assessor). Obviously I cannot guarantee the results, but I can guarantee that you don’t have to pay for the service. Call me — I am here to help you!
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Simple Tips For Extending Food Shelf Life
Food waste is a major environmental issue as so many resources go into growing food and then getting it from field to fork and paddock to plate. The figures vary somewhat depending on where you source them, but one estimate I’ve seen is that 40 percent of all the food produced in the US is thrown out – and that isn’t even at the high end of the scale.
Aside from the wasted resources, there’s also a substantial financial cost. An average American family dumps an equivalent of up to $2,275 worth of food in the bin annually. Food waste is the single largest component of solid waste in U.S. landfills.
.The last time I purchased carrots, I couldn’t buy them loose, only in a bag. I’m not a big carrot eater and wasn’t looking forward to boosting my carrot intake so as to not waste them. Remembering an old trick I’d heard; I put the (perforated) bag of carrots on a couple of layers of paper towel in the fridge .It’s now been 4 weeks and the remaining carrots haven’t lost any of their crispness. It seems the paper towel idea not only extends the shelf life of carrots, but lettuce too.
There are many simple ways to extend the life of fresh produce; some don’t involve any additional products at all – not even paper towel.
Some of the strategies involve not storing some foods like we usually do these days or avoiding storing one type of food next to another. For example, onions should not be stored close to potatoes. It seems gases one gives off affects the other.
Our refrigerators tend to become dumping grounds for all sorts of foods, some that don’t require and shouldn’t be refrigerated. Some fruits produce ethylene gas that can cause vegetables in close proximity to spoil more rapidly; so these should be stored if possible at room temperature rather than in the fridge. (You may have smelled ethylene gas in your fridge – it has a sweet, musky odor.)
Fruits that should not be stored in the fridge include: avocados, apricots, bananas, oranges, kiwi fruit, melons, nectarines, pears, peaches, plums, pineapple & tomatoes
There are so many simple tips – another example – to increase the shelf life of green peppers, broccoli and celery; I’m told wrapping these foods in foil works a treat. Something I’ve also found to help is to wipe out the veggie crisper bin in the refrigerator each week and without fail. I’m assuming that this is because it helps to reduce the amount of bacteria present that contribute to spoilage. It’s not just fruit and veggies you can easily extend the life of, in the case of cheese; instead of wrapping in plastic, use cheese paper or wax paper. Mushrooms should be stored in a paper bag, not plastic. Speaking for myself, I have tried these simple tools and have cut down on the amount of spoilage in my house. Try it, you will like it!
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I have been very blessed this year and as such have much to be thankful for. I continue to be very busy with a number of international clients from Hong Kong, Russia, and London. I also have a wonderful group of mentees (10 in number) which in addition to having many wonderful clients of my own, keeps me on my toes with their adventures
and their clients.. My family continues to do well, and we are in the process of deciding where are going to spend the holidays this year. In the past, we have gone to Vancouver, and all stayed at my sister’s home, but she has torn her house down and is rebuilding it, so most likely they will all be venturing south to my home in Coronado. I am also about to start something that many of my clients have done which is to remodel some of my home.
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