Timely Real Estate News……………………………… I5 June 2017
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Sales volume…up, up and away. Market sizzles
Summer hasn’t even arrived, but the Westside real estate market is sizzling hot in some of its most prominent markets— Beverly Hills, Beverly Hills Post Office, and Bel-Air/Holmby Hills, three of the six cities I report on each month. Combined, these three cities increased sales volume over a year ago by a total of $308 million, which is somewhat phenomenal for any market. Beverly Hills was up $135 million over 2016 at this time of year…Beverly Hills Post Office was up $81 million, and Bel-Air/Holmby Hills was above last year’s figure by $93 million. In addition, I also cover Brentwood and Westwood/Century City, which were marginally even with last year. Total sales volume for the five cities was $1.511 billion through May 2017 vs. $1.199 billion through May of last year.
Contributing to the robust sales volume were three large transactions for the month of May — two in Beverly Hills for $20 million and $15.9 million, respectively…and one for $27.5 million in BHPO and another $27 million in Bel-Air/Holmby Hills. “These sales provided the impetus for the large increase we have had through the first five months of this year. It isn’t really that there were some large sales, but the quantity of them is what really pushed the numbers for the month of May. For example, in looking at sales over $3 million there were 14 in Beverly Hills, 10 in Beverly Hills Post Office, 9 in Bel Air, 3 in Westwood, and 8 Brentwood. As a contrast, using the same criteria for last year again in the month of May, there were 6 in Beverly Hills, 4 in Beverly Hills Post Office, 5 in Bel Air, 4 in Westwood, and 16 in Brentwood. Also, just as a reminder, these are the sales that are posted in the MLS, there may be some others that were private sales which would skew the numbers again! Bottom line, there is a lot of money out there folks!

Median sales prices are up, too — mostly

Beverly Hills continues to lead the way in our market. Median sales price for a single-family home in BH was $6 million vs. $4.250 a year ago, a 31% increase (again impacted by the number of large sales). BHPO was up 18% at $2.965 million, and Westwood/Century City was up 15% at $2.076 million. Brentwood was also up….19% over last year at this time of year at $3.155 million. Only Bel-Air/Holmby Hills was off, just 1% at $2.109 million.

One of the key areas I work in is Santa Monica, a ‘city by the sea’ that has always been a popular community for its tremendous selection of shops, dining, and recreational assets up and down its beautiful shoreline. Santa Monica sales were up 4% for the year at $279 million…but median sales prices took a brief hit, down 21% to $2.312 million.

Days on Market — an interesting ‘take’. It goes without saying that if a home is not properly priced, it’s going to sit on the market for days and months. Homes priced competitively are ‘gone’ within a normal, measured “days on market” (DOM). The “Days on Market” for the six cities mentioned above are — Beverly Hills, 54 days; BHPO, 76 days; Bel-Air/Holmby Hills, 118 days (the highest in our area); Westwood/Century City, just 32 days (the lowest), Brentwood, 63 days; and Santa Monica, 47 days.

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No surprise…. Fed hikes interest rate

Predictably, the Federal Reserve raised its key short-term interest rate Wednesday, held to its forecast of another hike this year, and announced a plan to shrink its $4.5 trillion asset portfolio in a move that will push up long-term rates over time.
The plan to unwind the balance sheet, beginning this year, represents a milestone in the eight-year-old recovery as the Fed grows increasingly confident the economy can move forward without the extraordinary support it has provided since the 2008 financial crisis.
Despite a recent downshift in economic growth and inflation, the Fed lifted its benchmark short-term rate by a quarter percentage point to a range of 1% to 1.25%. It marks the second such hike this year and third since December. It’s another vote of confidence in a recovery that, while sluggish, has whittled the unemployment rate to a 16-year low of 4.3%.

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Homeownership hits 50-year low. What happened?
There we were…going along nicely and suddenly, Bam! We hit a pothole on the real estate highway. Despite steadily improving local job markets and historically low mortgage rates, U.S. homeownership rate is stuck near a 50-year low because of a perverse mix of affordability challenges, student loan debt, tight credit conditions and housing supply shortages.

I could say I “told you so” …but I won’t…. other people have, though. Housing supply shortages, in my opinion, are the prime culprit, combined with steadily rising prices and burdensome student loan debt which is forcing many first-time buyers OUT of the market.
According to findings of a new white paper authored by the National Association of Realtors last week, NAR Chief Economist Lawrence Yun and UC Berkeley Hass Real Estate Group Chair Ken Rosen, which stated that the dip and idleness in the home-ownership rate is a drag on the economy and we have to figure out a way to get more buyers into the market. Given the many benefits of home-ownership to individuals, the decline and stagnation in the home-ownership rate is a trend that’s pointing in the wrong direction, and must be reversed. There is also, the impact of long-lasting psychological changes in financial decision-making, including housing tenure choice, for the 9 million homeowners who experienced foreclosure, the 8.7 million people who lost their jobs, and some young adults who witnessed the hardships of their family and friends.

There are signs of hope on the way, however. Fannie Mae has released a 3% mortgage down payment package aimed at first-time buyers, and there are several mortgage lenders who just recently introduced a 1% down payment plan (true story). “This is a serious challenge we’re facing in the U.S. economy,” Carole Schiffer stated. “In many ways, we become oblivious to others who are not inside the tent yet…it’s like the “last man” theory — I’ve got mine.” This is a problem that is NOT going to go away quietly or easily.

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Go North, young man….to Montreal
Looking for property in beautiful Canada? Looking to spend under $300,000 for a lovely condo in one of the most beautiful areas on the Planet…Montreal? You can do just that, and what’s happening in Montreal is a bellwether for real estate savvy investors who want to get real value for their real estate dollar (US). Demand in Canada’s second-largest city has heated up enough to put Montreal-area home prices on track to rise 6% this year, the biggest jump since 2010, according to the Quebec Federation of Real Estate Boards. That’s up from a January forecast of just 1% growth. Job creation, robust consumer confidence and new immigrants are fueling demand.

“I just spent five splendid days in Montreal to see my nephew graduate from college,” Carole stated. “We took an hour’s drive outside the city and, Wow! is all I can say. It’s beautiful, a countryside you’ve always wanted or dreamed about with wineries, cheese farms, etc. And you’re only an hour from Vermont or New Hampshire.

Currently Montreal does not have the same Canadian real estate tax on foreign investors that exists in Vancouver or Toronto…so as a foreigner you won’t be saddled with an extra tax when purchasing real estate in Montreal as you do in Vancouver and Toronto where there is a 15% tax on foreign investors. This tax has changed the foreign investor picture in both of those cities. While I was there, we looked at some condos in Montreal, in the Vieux Port section of the city, and they are lovely, and again a short drive from the upstate New York or Vermont borders.

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A $50 gallon of blue paint nets $5,400 or more…. yup!  Color is a powerful marketing tool in selling your home. According to a well-known real estate analyst, just painting walls in a fresh, natural looking color, particularly in shares of blue or pale gray not only make a home feel larger, but also are neutral enough to help future buyers envision themselves living in the space.

For example, homes with bathrooms painted in a powder blue or periwinkle shade sold for an average of $5,400 more — the highest sales premium of all colors analyzed. When it comes to a home’s exterior, neutral tones, such as ‘greige,’ sold for $3,496 more than comparable homes in a different color. Furthermore, homes with front doors painted in shades of dark navy blue to slate gray sold for an extra $1,514. On the other hand, buyers seem to be put off by style-specific features such as terracotta walls, which resulted in a $2,031 dip in sales prices. But even more than that, prospective owners seem to hate white walls: Homes that had no color whatsoever sold for an average of $4,035 less.

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California will increase jobs, but not enough to really stimulate economy
The UCLA Anderson Forecast, released their latest opinion last week that predicts employment in California will increase by a modest 1.4% and personal income will grow by 3.1% this year. Earlier projections were more optimistic. Over the last several months, President Trump has promised to pour money into a “great rebuilding of the armed forces” and has pushed a $1-trillion investment into upgrading the country’s roads and bridges.

“Congress seems to be so tied up in considering healthcare and taxes that they aren’t ready to take on a massive infrastructure bill,” said Jerry Nickelsburg, a coauthor of the UCLA Anderson Forecast. So, time will tell what’s going on with this proposed infrastructure bill, if it ever gets out of Congress onto the President’s desk.

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Rising costs put renters in a hole….
With home-ownership out of reach for so many, renting is often touted as an affordable alternative, but recent studies have revealed that renters are feeling the pressure of rising rents just as much as buyers are struggling to find reasonably priced homes. According to the National Low-Income Housing Coalition’s latest study, “Out of Reach: The High Cost of Housing,” the average full-time worker must make $21.21 per hour to afford a basic, two-bedroom apartment and $17.14 per hour to afford a one bedroom.

For some, these hourly wages may seem easy to reach, but NLIH says the average hourly wage is $16.38 — $4.83 lower than the two-bedroom housing wage, and 0.76 cents lower than the one-bedroom housing wage. And rental inventory constraints are pushing rents higher, and builders will need to create 7.4 million affordable rental homes to close the gap and bring prices back down for low-income and middle-income families. Will this happen? It is doubtful that builders will want to earn less $$ these days. As a result, we will continue to face the rental crisis.
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Connor’s graduation

It was a very proud and happy day last week, when my nephew graduated from Concordia Business School with his degree in Business Management and Marketing! There were 750 students that earned their diploma that day, and it was fascinating to me to see the students from all over the world! It had been a family effort of love and support, and now the work begins for him to find a job and get settled. He is looking in both Montreal and Vancouver.

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Leases in Bel Air Crest
Please do not forget my two beautiful leases in Bel Air Crest, 11813 Gwynne Lane, 4.3.5, den & office. Updated and in beautiful condition, patiently waiting for its new resident and priced at $10,500. 2223 Queensborough Lane, 5/6.5 family room, large yard with views and again updated and is sitting lonely for you to come and live there. We just reduced that price to $28,999. If you know of anyone who is interested in living in our lovely community or has any other real estate needs, please do not hesitate to give me a call.

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COUNT ON CAROLE
Location Counts
Location, location, location. Right? Wrong. Sure location is critical in the marketing of your home – but two other factors – presentation and price — are equal if not more important. Carole can show you how you maximize all three. Count on it.
Carole Schiffer. The Westside Expert

 

 

 

 

 

Timely Real Estate News…………………………………… I June 2017
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Managing Client’s Expectations in A Hot Seller’s Market
It sounds like the same old story, week after week, month after month. Prices are soaring and inventory is stagnant. It reminds me of Bill Murray’s iconic “Groundhog Day” where every day is a repeat of the previous day. It never changes. As we move into Summer, we are seeing the hot seller’s market getting hotter. Prices are rising everywhere in the U.S., while inventory, in many cases are stagnant or even receding. This only spells trouble for buyers and sellers. One of the most important jobs I have as a real estate agent is to manage my client’s expectations, and that is not always an easy job!

For buyers, the lack of inventory only means one thing: Scrambling and competing in an extremely limited market where choices are fewer than ever against a sea of other well-armed buyers who can be ultra-aggressive in the “multiple offers wars”.

For sellers, the challenge may be to avoid greedy appetites and pricing yourself out of the market, thinking that since inventory is so low, ‘my house’ will be snapped up immediately. However, if not priced competitively, that will not happen, even in today’s market.
Yes, prices are escalating, although still below 2007 levels in most Westside markets, and homeowners are, indeed, happy to have some of their equity back. But in this competitive market, managing expectations for both buyers and sellers is critical, if only to maintain one’s sanity. So here are a few recommendations:
* For buyers, it will be important to start early in your strategic planning for buying your home. That means, your first call should be to an experienced real estate agent, like myself to help you manage your expectations and map out your course of action. For example, home specifications, location, and financing are the three critical issues you will need to discuss and settle on before entering the market. If you are buying this property with a partner, I strongly suggest you both review what it is you want. You may be surprised that you both want different things. Your agent can assist you in identifying markets and options for your home location and pricing, and can also help you manage your pre-qualifying process, because you’ll need that from the very start. Then the fun begins.
* For sellers, this is the big challenge — when to sell, for how much, and how to deal with after-sale issues as, just as where to now? Through my 30-plus years of experience, I have witnessed so many homeowners who have made the mistake of not having a game plan or overpricing their home, and that’s especially true now in this market. False expectations of a home’s value can lead to disastrous results — homes that are not competitively priced will sit and sit and eventually get tainted and leave the market, and the seller will be disenchanted. While arriving at the proper price is by no means an exact science, I can help you avoid this “seller’s syndrome” and help guide you toward structuring your marketing campaign that will take advantage of local market conditions, competition, recent comps, and your home’s position in terms of pricing and location.
We’ve learned many lessons during the past 10 years when the Great Recession started, and it’s hard to believe it officially ended in June 2009. We are getting back to a normal market, but for now, this hot seller’s market demands both buyers and sellers be extremely well prepared when entering this market…but it takes planning and expertise at the highest level. I would like to help you…so please call me at 310-442-1384. Thanks, Carole Schiffer.

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Home prices rise across U. S…. on a fast-track
I wasn’t kidding…. home prices across the U.S. were up 5.8% annually in March, the fastest pace in nearly three years, as supply shortages continued to drive a run-up in offers. The rise in the S&P CoreLogic Case-Shiller national index was up from 5.7% the prior month. The pace has accelerated in 2017 after year over year increases held steady at a healthy 5% or so from 2014 to 2016.

S&P Case-Shiller 10- and 20- city indices, which track the largest metro areas, increased 5.2% and 5.9% from a year ago, respectively, unchanged from February. Monthly, the national index rose 0.3% seasonally adjusted while the 10- and 20-city indices each increased 0.9%. Seventeen of the 20 cities reported monthly increases after seasonal adjustment.

Inventory remains down in U.S.

Nationally, there’s a 4.2-month inventory of existing homes for sale, down from 4.6 months a year ago and a normal level of about six months. “People are staying in their homes longer rather than selling and trading up,” says David Blitzer, managing director of S&P Dow Jones’ index committee. “If mortgage rates, currently near 4%, rise further, this could further deter more people from selling and keep pressure on inventories and prices.” But he adds “there’s no way to tell” when rising prices and mortgage rates will cool off the market.

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Median home prices in LA reach all-time high
To be more specific, let’s bring this home. The median home price in Los Angeles County has reached the all-time high set in 2007, a milestone that follows five years of steady recovery but comes amid renewed concerns over housing affordability. Home prices rose nearly 6% in April from a year earlier, hitting the $550,000 level where the median plateaued in summer 2007 before a sharp decline that bottomed out in 2012.
According to the report on regional home prices released last week by CoreLogic, other areas in Southern California also are hitting record levels. The record median prices, as calculated by CoreLogic, also are nominal values that do not take into account inflation. The L.A. County median is 12.4% below the 2007 peak after adjusting for rising consumer prices.
Lower mortgage rates also have made housing more affordable than last decade.

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To rub it in…home sales dropped 11.4%
U.S. sales of new homes last month registered the biggest drop in more than two years. The Commerce Department reported last week that new home sales skidded 11.4% in April to a seasonally adjusted annual rate of 569,000. It was the biggest monthly drop since March 2015. Economists had expected a more modest retreat from March sales of 642,000, which were the highest since October 2007. Sales in April were still up 0.5% from a year earlier.
Sales fell in every region of the country, led by a 26.3% plunge in the West, the biggest drop since October 2010. A healthy job market is expected to give Americans confidence to buy homes. Employers added a solid 211,000 jobs last month, and the unemployment rate is at a decade-low 4.4%. Last month, the median sales price of a new home slid 3% to $309,200.

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Turning historic buildings into art treasures.
There is a renaissance going on in the world of art and historic Los Angeles buildings that have not been realized until recently. The California artist-architect Millard Sheets (1907-1989) designed the imposing edifice on Wilshire Boulevard for the Masonic Brotherhood (a fraternal society with roots in medieval builders’ guilds), planting his own symbolic murals and mosaics throughout. The Marciano Art Foundation bought it in 2013 for $8 million.
“When you find something this beautiful, you want to preserve and restore it,” said Maurice Marciano, co-founder of Guess, who is in retirement and has been overseeing the building’s reformation.
“It’s been interesting for us to turn something very secretive and formidable into something friendly and curiosity-driven,” added Kulapat Yantrasast, the project architect. “It’s especially interesting for L.A., because we tend to love what’s new and shiny instead of investigating history in this way.”

The Marciano Art Foundation is not alone in going the historical route. Several new arts institutions in development that will expand the city’s museum landscape have opted to reimagine existing buildings rather than build sleek new ones, as the Broad museum did in 2015 with its Diller Scofidio + Renfro design.
And as contemporary art has grown in its scale and ambitions, the trend of converting industrial spaces to provide less expensive and flexible space has also taken off.
There is so much more going on in Los Angeles…. stayed tuned to The SchifferLine as we bring you more “art + architecture’” highlights in your city.

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New home sales are down, too….
Millennials and first-time buyers are finding it more difficult to move into a home of their dreams. U.S. sales of new homes last month registered the biggest drop in more than two years. The Commerce Department reported last week that new home sales skidded 11.4% in April to a seasonally adjusted annual rate of 569,000.

It was the biggest monthly drop since March 2015. Economists had expected a more modest retreat from March sales of 642,000, which were the highest since October 2007. Sales in April were still up 0.5% from a year earlier. Sales fell in every region of the country, led by a 26.3% plunge in the West, the biggest drop since October 2010.

While I don’t normally report on new home sales, it’s all part of the housing recovery mix. Inventory — whether it’s a new or old home, apartment or condo, the housing market is all interconnected. Millennials who might be prepared to move into their own home or condo, are prevented for lack of inventory and out-of-reach prices, and hence, remain in rentals, whose prices continue to rise. It’s like a cat chasing its tail. Unfortunately, unless we get inventory levels up, this will continue for a while.

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U.S. economy is revised upward…a touchIt wasn’t much, but the growth rate for Quarter 1 was moved from 0.7% to 1.2%, still well below Trump’s ambitious economic plans. Growth in the gross domestic product, the broadest measure of economic health, is down from a 2.1% annual growth rate in the fourth quarter and marks the weakest result in a year, the Commerce Department reported last week.
The upgrade to 1.2% reflected new-found strength in consumer spending, business investment and state and local government spending. Many economists believe that growth in the current April-June quarter will rebound sharply to above 3%, helped by stronger consumer spending that reflects solid employment gains and an unemployment rate that has fallen to a decade low of 4.4%. Moreover, part of the first-quarter weakness reflected various temporary factors such as unusually warm winter weather.

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CBRE is ‘star’ on the global real estate stage
With headquarters located in Bunker Hill downtown, CBRE Group, which is part of Coldwell Banker is one of the world’s largest real estate services firm. And it’s riding high after a long real estate boom. The company finished the first quarter 2017 with its profit up nearly 60% compared with a year earlier to $130 million after posting record revenue of $13.1 billion in 2016.
Los Angeles has notably benefited from the boom too, and looks to continue doing so. Los Angeles ranked No. 1 in a recent CBRE survey of global real estate investors looking to buy property this year in North America.
“L.A. is the Clayton Kershaw of destinations for institutional capital,” said Chief Executive Robert Sulentic, who has led the company since 2012 and previously was chief executive of Trammell Crow Co. This low-profile firm has clients in over 100 countries with 75,000 employees. Sulentic is high on Los Angeles….”One of the key things is that there is good job growth here in LA — more than in San Francisco and San Jose combined. We have a cross-section of what millennials like: It’s the entertainment capital of the world with beaches, mountains and edgy places like Venice and Hollywood to live. Tech companies like that.
“One of the problems Silicon Valley has is no office space. We have a decent amount of empty space in L.A., and that’s a good thing. It’s also cleaner than other international cities. The whole emissions-control program has been a big difference maker.”
Coldwell Banker’s reach is far and wide around the globe. “It is such a great company to work for…and its brand is stands for quality and performance,” Carole Schiffer stated. We have a very strong commercial and investment component in my Brentwood office that can assist you with any of your commercial or investment needs.

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Grauman’s Chinese Theater announced
Almost 100 years ago this month in May 1919, showman Sid Grumman announced ambitious plans to open “a string of picture theaters” throughout the country, including his first in Hollywood, which would become Grauman’s Egyptian Theatre, which opened in 1922.
The announcement, which was reported by the Los Angeles Times, came just over a year after the successful opening of his first “picture palace,” the Million Dollar Theater in Downtown Los Angeles at Third Street and Broadway.
The Grumman Chinese Theater opened in 1927 with Cecil B. DeMille’s “The King of Kings”. Today, the world-famous theater is an IMAX theater with 932 seats and one of the world’s largest theater screens. TCL, a Chinese tech firm, owns the naming rights to this legendary theater.

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Kelly’s 95th birthday!

A great time was had by my family while we celebrated my Mom’s 95th birthday. Everyone flew here from parts North & East and we spent the weekend at our home in Coronado. It was great fun and went much too quickly. I am off to Montreal to see my nephew Connor graduate from Concordia, and for him now the fun begins as he hunts for a job in either Montreal or back home in Vancouver.
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Real Estate Update
While we were in Coronado we looked other units for sale in the complex, Coronado Shores as we are considering purchasing a second one that my sister & her family will use part of the time and rent out the remainder of the time.

We found one that we all loved, but that market like the one here is super-hot and this unit had been on the market only 5 days and sold before we could get our act together.
Back here at the ranch, I am still looking for sellers for Canyon homes in Bel Air Crest as well as Mountaingate and spending a good amount of time showing my two lovely lease listings in Bel Air Crest, 11813 Gwynne for $10,500 and 2223 Queensborough for $37,500. Please let me know how I can assist you with any and all of your real estate needs. Carole@caroleschiffer.com, caroleschiffer/realtor @facebook.com.

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COUNT ON CAROLE
Price counts
You entrust one of your most valuable and precious investments with your Realtor. A responsible Realtor will be straightforward and honest about the true valuation of your home. Carole knows how best to price your home. Count on it!
Carole Schiffer. The Westside Expert

Timely Real Estate News……………………………………………….. I May 2017
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Pending homes sales in March stayed at high level
According to the National Association of Realtors, pending home sales in March maintained their recent high level, but momentum slackened slightly in most of the country as the dearth of supply weighed on activity, The NAR’s Pending Home Sales Index, a forward-looking indicator, based on contract signings, declined 0.8 percent to 111.4 in March from 112.3 in February. Despite last month’s decrease, the index is 0.8% above a year ago.

“Sparse inventory levels caused a pullback in pending sales in March, but activity was still strong enough to be the third best in the past year,” according to Lawrence Yun NAR’s chief economist. “Home shoppers are coming out in droves this spring and competing with each other for the meager number of listings in the affordable price range,” he said. “In most areas, the lower the price of a home for sale, the more competition there is for it. That’s the reason first-time buyers have yet to make up a larger share of the market this year, despite there being more sales overall.”

What’s more, Yun pointed out that sellers are in the driver’s seat. “There is intense competition for the few homes for sale forcing many buyers to be aggressive in their offers,” said Yun. “Buyers are showing resiliency given the challenging conditions. However, at some point — and the sooner the better — price growth must ease to a healthier rate. Otherwise sales could slow if affordability conditions worsen.”

“It all comes back to the Law of Supply and Demand…” Carole Schiffer stated.

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There is strength in numbers…West Los Angeles sparkles
We all know that prices are rapidly moving upward, and yes, we read where inventory is abysmal — just about everywhere. Cheer up! According to Global Luxury, Coldwell Banker’s new luxury division, in judging from the same time last year, there have been 148 sales of $5 million-plus this year versus 149 in 2016, only down one from a year ago, but in the $10 million-plus category, there have been 52 sales this year vs. 44 at this time last year.

But what really jumps out is that in the $20 million-plus range, there have been 20 sales compared to only 5 a year ago. Of those sales, 9 were over $30 million and there were no $30 million sales a year ago. Also, there are 21 pending sales of $10 million-plus currently, and one in the $20 million-plus arena. And there are 67 pending sales of $5 million-plus.

“What this is telling us is that our real estate product on the Westside has performed remarkably well since the first of the year. We are still dealing with low inventory and are seeing multiple offers on properties that are priced competitively.,” Carole Schiffer said “. As I have said many times, it is very easy to see and quickly to note that if the price is wrong, as there are no showings, and thus the offers are simply just not there”. Buyers are very sophisticated and kmowledgable today. Sales are being made to a diverse group of buyers in the $20 million-plus category for example — 11 are American, 4 Chinese, 1 English, 1 Scottish, and 1 Indonesian. “Interestingly, of the 19 sales recorded, 10 were private sales!,” Carole stated.

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Housing inventory is down everywhere…
While we are enjoying a small resurgence of sorts here in West Los Angeles, housing inventory is down 25% nationally from two years ago based on a report from real estate tracking company, ProTrack. The supply of homes for sale this spring is so depleted that one of the nation’s valuation firms predicts that the inventory drought will reduce total home sales this year as shortages drive up prices and buyers fail to find properties they can afford,

ProTrack’s Home Value Forecast looks at inventory through the lens of months remaining inventory (MRI), which is defined as the current number of active listings divided by the monthly sales rate. It combines both supply and demand into one number, giving a more holistic view of the state of the market. Traditionally, a balanced market would have an MRI between six and 10 months.

According to recent data, two years ago the weighted average for the more than 200 metros tracked by Home Value Forecast was 7.87. A year ago, that number was 6.89. Today it is 5.90 — a 14.4 percent drop in MRI from last year and a full 25 percent drop in the last two years.

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Luxury real estate extends far beyond US borders
As you see in the above story about the diversity of buyers moving to our area, Coldwell Banker couldn’t have been timelier in recognizing the changes and changing its 85-year-old Previews International brand to Global Luxury. Appealing to an international group of families, who migrate in various ways to other non-native countries, it is a trend that is not going to be curtailed as the “world becomes smaller”.

For example, it was the second year in a row that Australia attracted more millionaires than any other country with a 38% increase over 2015. The United States was second over the past two years, followed by Canada, UAE, and New Zealand.

The report, conducted by Research and Markets, showed that more than 82,000 millionaires left their home countries in 2016. France had an estimated 12,000 millionaires depart followed by China’s 9,000. The report also shed light on why we all need to understand affluence globally because there are currently more than 13.6 million in the world with worldwide wealth of $69 trillion. And this expansion will continue in some surprising places.

Importantly, as the money gets younger, we can expect the real estate industry will be impacted because the affluent will have an increasing world view.

Many have left their home countries to attend college, build careers and accept multi-national assignments. They are comfortable in the global society and are not afraid to venture abroad as they discover emerging luxury markets.

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Beware…it’s rattlesnake season.
It’s not their fault. They were here first. And after months of what is called “brumation” — a slowing down of their metabolism, the rattlesnakes have shed their skins and are moving about the countryside. They are all over the city, not just in the hills. Yes, we do have rattlesnakes, and lots of them.

The state receives about 300 calls a year reporting bites, most frequently between April and October. The highest number of bites frequently are reported in May. According to local park rangers, this winter’s rains have led to a lot of vegetation growth, which attracts rattlesnake prey such as mice and other rodents.

Word to the wise (and unwise) — almost all snake bites are on the hand by people who wish to pick up snakes. Don’t disturb rattlesnakes they rest in a coiled-up position, and if you see one stretched out, that is when they are ready to strike— call the Animal Control department immediately. Rattlesnakes really don’t want to bite you — only for defensive purposes…they wish to save their venom for a kill. Also, please check with your vet, there is a shot that your lovable pouch can get which will help keep them alive if they are bitten by a snake.

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Older clients still want their space and luxury
My fellow agents and I are discovering many older, well-to-do clients are not satisfied with shared garages and elevators, remote storage lockers, and sardine-like patios that overlook other sardine patios.

That’s why developers are offering luxury town-home developments that have individual feature 4,000 square feet, as many as four bedrooms, and 3.5 bathrooms. With private garages, elevators, screening rooms, tall ceilings, formal dining rooms, large open kitchens and family rooms, pre-wired security systems and automated lights, these are what can be described as ‘mini-estates’ just without the garden and pool.

“In my opinion, this is not a fad Carole Schiffer said. “My clients who may be older are not looking to forgo the “finer things in life/ They are simply looking for an easier, maintenance free life style where they can pick up and go”. They’re simply not willing to give up what they have worked so hard for all these years.”

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Coldwell Banker Offers Scholarships!
Whether it’s around the world, across the country or just down the street, moving to a new home can have a big impact on the lives of the company’s customers, particularly adolescents. To support high school students and their families who have experienced a move, Coldwell Banker and its parent company NRT is proud to launch the 2017 NRT “Share Your Moving Story” Scholarship Program, through which the company will issue a total of $20,000 in college scholarships to 10 worthy applicants across the country.

The Share Your Moving Story Scholarship Program gives high school juniors and seniors the opportunity to tell us how their personal moving experience or that of a loved one has affected them. The applicants who visit ShareYourMovingStory.com and submit the top-10 stories will each earn a $2,000 scholarship to the college of their choice. The deadline to submit an essay is June 15, 2017, so now is the perfect time to spread the word! Please let me know if you know someone whose story you feel would qualify them for consideration so that I can enter their story, carole@caoleschiffer.com

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5 Steps in Protecting Your Smart Home
Just how ‘smart’ is your home? That’s a good question as more technologies are flooding the home market, inviting homeowners to open their wallets to finance all the latest bells and whistles for having state-of-the-art technology (did you see the new one where you have them look at your outfit before you leave the house and tell you if it looks good on you?!?). However, it’s also opening the opportunities for intruders and hackers, too. Yes, once a smart home is hacked, it’s “open sesame!” with some consequences. So, here are few items for your consideration:

1. Use strong passwords — having a strong password really is the first step against hackers and is enough to keep most hackers out of your devices. However, many people prioritize creating passwords that are easy to remember (or that don’t change) over their home’s security. The best passwords are a combination of capital and lowercase letters, numbers, and special characters. 2. Be selective with your devices. Grow your system carefully and cautiously. Buy brands and products that you trust and are proven in practice. 3. Update your apps and firmware — Always update your software on all devices, just like you do your smartphone or computer. it’s a way to stay ahead of hackers….4. Watch your Wi-fi network. Only use private security networks — never public, and experts recommend you not use the same server as your computer because computers are easier to hack and 5. Always turn off devices. Don’t give hackers a chance to play around with your turned on-but not used devices. They have free reign over your devices when they are on and you’re not around. Also, you’ll save energy by turning them off or unplugging them.

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L’Ermitage Foundation
One of my Bel Air Crest neighbors recently contacted me about an organization she & her late husband established a number of years ago to support the musical arts, so in the mode

of cross marketing that I discussed in the last Schiffer Line, I want to share some information about the L’Ermitage Foundation with you. Established in 1983, L’Ermitage Foundation has supported many charities such as the Children’s Hospital through donors’ contributions. Membership gifts are tax-deductible. The Foundation was established with two goals in mind: promote the performing and musical arts and provide funding to various charities. For over 30 years L’Ermitage Foundation has donated thousands of dollars to selected charities and has produced hundreds of concerts.

Members enjoy monthly concert events knowing that a portion of their donation helps support various charities. For more information please visit. www.http://lermitagefoundation.org.

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Turning 95!

Many of you have met my Mom, Kelly as she has accompanied me to showings, open houses, visits to the office, etc. She turns 95 on the 23rd of May, so once again me and the Canadian branch of my family is busy planning a birthday surprise. I will share the festivities as well as some photos. Stay tuned

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Searching for property to sell and finding tenants
I have a beautiful new lease listing of a Canyon home in Bel Air Crest and we are looking for a tenant to come and enjoy this lovely home. It is 4/3.5, 3 levels with an elevator, 3 cargarage, finished basement, office and den and has been updated and upgraded with new wood floors in the kitchen and den and a fresh coat of paint. The Lessor’s would like to be in their new home sometime in June so please give a call so that you or someone you know can move in quickly. I am still on the hunt for properties for my clients in Bel Air Crest, Mountaingate, and Westwod Hills, (basically all over West Los Angeles), so please reach out to me if you are considering selling.
Please visit my web site: www.caroleschiffer.com my Facebook page: www.facebook.com/CaroleSchifferRealtor, my Lindekin page: www.linkedin.com/incaroleschiffer and my Instagram page @caroleschifferrealtor.

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COUNT ON CAROLE
Presentation Counts
Many sellers overlook the power and importance of presentation when listing their homes. Carole doesn’t. She knows what works best to achieve the maximum price for your home. Remember, 50 percent of buyers make their decisions before they get out of the car. Presentation counts….Carole Schiffer. The Westside Expert

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Happy Mother’s Day