Dear Bel Air Crest Neighbor:
It seems only yesterday we were dealing with the Y2K issue, and now we’re entering 2020. The conversations as to if we are ending a decade or starting a new one are endless, guess it depends on which end of the spectrum you are looking at. Amazing what has happened since 2000 and the speculation as to what will happen with the turning of the end of that decade! Since, the economy remains strong and vibrant, we are expecting a solid real estate year in 2020. So, yes, Happy New Year!
While we started off down nearly 10% in sales volume at the end of 2018, we have steadily moved up with sales volumes through November 2019 over 10% higher than a year ago…a good sign that 2020 should be experiencing this upward trend. However, with all of the continuing tumult in our world with tariffs, trade wars and the 2020 political season heating up there continues to be some speculation as to the impact these events and situations will have.
The good news is that mortgage rates remain low, and the Federal Reserve indicates that they do not expect to raise rates this year and more importantly, the Fed does not see a recession in 2020, which was also endorsed by UCLA’s Anderson Forecast. California’s employment and GDP numbers are strong, but what is concerning is the lack of affordable housing and inventory for thirsty home buyers. This remains a problem on many fronts as rental costs are also soaring in Los Angeles County. The housing industry is, indeed, facing severe challenges in the future.
How does the community look from a real estate perspective and how does it compare as to what we were looking at this time last year? Currently there are 10 homes available for sale in the community, more than we have had for some time. Of that, 3 are Canyon homes, and the remaining ones are Custom homes. Last year at this time there were 4 homes for sale, none of which were Canyon homes. In comparing the closed escrows for the past quarter, there were 8, six Canyon, and two Custom. This past quarter, the cost per square foot for the Canyon home was $632.52 (it needs a great deal of work), and the Custom home which also needs a great deal of work was $680.92. Conversely, the cost per square foot for the ’18 closed escrows for the last quarter of the year were $707.29 for the Canyon homes, and $798.18 for the Custom. In ’18, the average was $505.51 for the Canyon homes, $748.79 for the Custom, and in ’19 it was $709.14 Canyon, and $716.62 Custom respectively. Did the fact that some of the homes are aging and have not been updated hurt our prices, yes, but on the other hand we basically are holding our own and the forecast is for a strong real estate market in 2020. Please click here to see the Quarterly Update Report.
We have some potential issues facing us, the recent Getty fire which has unfortunately caused a few of our neighbors to lose their insurance and face increased premiums, the potential development of the toll lanes on the 405, and the proposal for the rapid transit system as well as the Berggruen Institute. I do urge you to stay tuned with what is happening in our area, they are all important issues. Please do not forget that I am here to assist you in all of your real estate needs and to also hopefully keep you informed as to what is going on in the area around us as well as our fabulous community.
Happy New Year!
See you soon
Carole Schiffer, Realtor Coldwell-Banker Residential Brokerage/Brentwood Office 310-442-1384 (office) or e-mail me at firstname.lastname@example.org www.caroleschiffer.com CalBRE 00677619 ©2019 Coldwell Banker Real Estate LLC. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate LLC 234567An Equal Opportunity Company. Equal Housing Opportunity. Owned and Operated by NRT LLCNot intended as a solicitation if your property is already listed by another broker. Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor sales associates, not employees. ©2019 Coldwell Banker Residential Brokerage. All Rights Reserved. Coldwell Banker Residential Brokerage fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Owned by a subsidiary of NRT LLC. Coldwell Banker, the Coldwell Banker logo, Coldwell Banker Global Luxury and the Coldwell Banker Global Luxury logo are registered service marks owned by Coldwell Banker Real Estate LLC.