The SchifferLine
Timely Real Estate News………………………….1 June  2022

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Existing home sales down 2.4% in April
If you’re reading the latest economic news, it is not surprising that existing home sales are down — inventory is lightening up some, prices remain high, interest rates up.

The National Association of Realtors reported existing home sales were down for a third straight month, slipping slightly in April. Month-over-month sales were split amongst the four major U.S. regions, with two areas posting gains and the other two experiencing waning sales in April. Year-over-year sales struggled, as each of the four regions reported dips. Existing-home sales in the West dipped 5.8% compared to the previous month, registering an annual rate of 1,140,000 in April, down 8.1% from one year ago. The median price in the West was $523,000, up 4.3% from April 2021.

Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, slid 2.4% from March to a seasonally adjusted annual rate of 5.61 million in April. Year-over-year, sales dropped 5.9% (5.96 million in April 2021).

“Higher home prices and sharply higher mortgage rates have reduced buyer activity,” said Lawrence Yun, NAR’s chief economist. “It looks like more declines are imminent in the upcoming months, and we’ll likely return to the pre-pandemic home sales activity after the remarkable surge over the past two years.”

Total housing inventory at the end of April amounted to 1,030,000 units, up 10.8% from March and down 10.4% from one year ago (1.15 million). Unsold inventory sits at a 2.2-month supply at the current sales pace, up from 1.9 months in March and down from 2.3 months in April 2021.
“Housing supply has started to improve, albeit at an extremely sluggish pace,” said Yun. He also noted the rare state of the current marketplace.
“The market is quite unusual as sales are coming down, but listed homes are still selling swiftly, and home prices are much higher than a year ago,” said Yun.

“Moreover, an increasing number of buyers with short tenure expectations could opt for 5-year adjustable-rate mortgages, thereby assuring fixed payments over five years because of the rate reset,” he added. “The cash buyers, not impacted by mortgage rate changes, remain elevated.”

We are also seeing more buyers going for fixed rate loans rather than the adjustable they have in recent years.

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New home sales plunge 1.7% in April
Sales of new, single-family houses in the U.S. dropped 1.7% — more than expected last month to the lowest level in two years as rising construction costs, home prices, interest rates and supply chain woes continue to batter the industry.

The U.S. Census Bureau’s latest data shows the pace of new home sales fell by 16.6% in April from the month before at a seasonally adjusted rate of 591,000. Analysts surveyed by Refinitiv anticipated a dip of 1.7%.

The drop is 26.9% lower than a year ago, and the lowest since April 2020. This is the
fourth straight month new home sales have declined.

The Census Bureau reported that the median sales price of new homes hit $450,600 last month. With interest rates now upward of 5.8%, the rising cost of homeownership is pricing more would-be buyers out of the market.

“One year ago, 25% of new home sales were priced below $300,000,” explained Odeta Kushi, deputy chief economist at First American. “In April of this year, only 10% of new home sales were priced below $300,000.”
Inventory of new homes was also up last month, according to government data. “New home months’ supply jumped to 9 months, up from 6.9 months in March and the highest since 2010,” Kushi noted, predicting, “Builders will likely slow construction in the months ahead.”

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Housing demand surges in pricey suburbs
New residential sales data shows that the most popular housing markets of 2022 are the top 10 pricey suburbs just outside a major city. Among the pandemic’s prevailing housing market trends has been a surge in demand in the suburbs, as urban dwellers reevaluate their needs amid a rise in remote work.

These markets include, Woodinville, Washington; Highlands Ranch, Colorado; Westchase, Florida; Yorba Linda, California, John’s Creek, George; and Tustin, California.

The most popular markets so far this year paint a picture of how remote work has changed the U.S. housing landscape. Demand for suburban homes found an extra gear last summer, perhaps as buyers gained more clarity in their employers’ return-to-office policies.

Research suggests the rise of remote work is responsible for roughly half of home-price growth during the pandemic. How many employers continue to allow this flexibility for employees to live where they choose will go a long way toward determining which markets are most in demand in the future.

The report also found that home prices were increasing in all 10 markets at a faster rate than their nearest major city, underscoring the lasting popularity of suburban markets amid the pandemic.

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NAR’s economist views 2022 with caution….
Two years after enduring the devastating financial impacts of COVID-19, the U.S. economy has made an impressive comeback, in large part due to a booming housing market. NAR Chief Economist Lawrence Yun noted there are significant questions regarding the sector’s direction over the coming months. According to Yun, housing kept the economy afloat as home prices rose and buyer demand intensified during the Pandemic.

“However, this year has already thrown some curveballs, including record-low inventory and unyielding inflation.” Yun says inflation will persist and in turn cause strain for would-be buyers. Additionally, other external economic factors will negatively impact the market, both indirectly and directly, he said.

“The Russia-Ukraine war and escalating fuel prices have contributed to further housing unaffordability for buyers.” And Yun explained that a more immediate impact for home seekers has been the rapid increase of mortgage rates, along with other anti-inflationary actions from the Federal Reserve.

“Mortgages now compared to just a few months ago are costing more money for home buyers,” he said. “For a median-priced home, the price difference is $300 to $400 more per month, which is a hefty toll for a working family.”

NAR calculates purchasing a home is now 55% more expensive than a year ago. These rising mortgage rates and prices hurt affordability, and although wages are improving, Yun says they are “wiped away” due to inflation.

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Bidding wars for apartments….and no refrigerator?
This is happening all over Southern California. The availability of apartments in Los Angeles and surrounding counties is so tight that some renters are paying above list price to secure a high-quality unit, while others jostle for the remaining stock of apartments. And many are coming with no refrigerators.

As a result, renters are scrambling to ‘get in line’ for rentals and it is not uncommon to find multiple offers now going to premium rentals — condos or single-family homes. LA County rents are up 16% from a year ago, when the rental market was still subdued by people who moved in with family or moved inland for more space — as remote working demands increased across the Southland.

The Los Angeles Times recently covered another phenomenon — rental units, which once included refrigerators, are now renting ‘without’. This is forcing renters to scramble on Craig’s List, Facebook Marketplace, and the newly created Underground Fridge economy to find the appliance. Lucky renters with extra cash opt out of the used refrigerators and go to Best Buy or Home Depot and get a new one delivered. The Times reported that the National Multifamily Housing council that California has more apartments without refrigerators than any other state in the union.

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Los Angeles’ glorious architectural history
We have covered several other prominent architectural gems in The Schiffer Line before, and today, we are sharing with you other renown attractions that have earned their place as part of our area’s amazing cultural history.

Lummis House, Highland Park
Built and named after its namesake, Charles Lummis, a passionate convert to the life and culture of Southern California, as is truly one of its most fabulous founding characters. The Lummis House is located in Highland Park, which he built of boulders dragged up from the Arroyo Seco, the sometimes-waterway of which Teddy Roosevelt told Angelenos: “This arroyo would make one of the greatest parks in the world.”

Naturally, we turned it into the Pasadena Freeway according to a recent Los Angeles Times article…and that’s true. Lummis was the City Librarian and insisted all Angelenos read about our history.

Skirball Cultural Center, Sepulveda Pass
Like the Getty, it sits atop a hill above the Sepulveda Pass and has its own exit sign on the 405. It is a meeting and exhibit space describing itself as “guided by the Jewish tradition of welcoming the stranger and inspired by the American democratic ideals of freedom and equality.”

Jack H. Skirball may have been the world’s only rabbi, developer, and philanthropist. He spent nine years as a rabbi but moonlighted as a film salesman and wound up producing nearly 60, most of them short subjects but two of them Hitchcock’s.

Norton Simon Museum, Pasadena
Even if you haven’t visited this museum, most likely you’ve seen it. It stands near the “starting line” of the New Year’s Day Tournament of Roses Parade on Colorado Blvd.

Founded as Pasadena’s art museum, it was facing ruin in 1974 when it agreed to Norton Simon taking it over, paying its bills and installing his own enormous and top-notch collection there.

Simon’s wife, Oscar-winning actress Jennifer Jones, oversaw the museum’s renovation and collection, and an LA Times art critic called Simon the “mercurial Medici of Los Angeles art

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Water water – no where to be seen & fires
As we approach summer, I don’t know about you, but it makes me so very sad that we find ourselves in the position of making choices about cutting down to watering our gardens two or perhaps even one day a week, and the potential loss of our plant materials. We all need to pitch in and do our part to conserver as much water as we can.

Also, about two weeks ago in the course of 3 days, we had 5 brush fires in the Sepulveda Pass going north between the entrance to Bel Air Crest and the north bound on ramp to the 405. It is heart breaking to see the damage.
If you see someone smoking in the Canyon and they toss their cigarette out the windows, honk your horn and ask them to put it out in their car and not on the street or roads.

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What is happening in my world?
I recently had cataract surgery in both of my eyes. When I shared that I was going to undergo this procedure, so many said, “Oh Yea” , I had it and it is so easy, and it is amazing how much difference it makes. They were 1000% correct! I did not realize how bad my eyes had gotten, and my doctors said I really could have waited… so very glad I didn’t.

I know there are some comments about the slowing down of the market, but honestly, I do not see it. In our weekly sales meetings when transactions are being discussed, the numbers simply have not changed, nor am I seeing any difference in my business nor that of my colleagues. As I have talked about in the past, I have a great number of buyers, and if I had the inventory to sell to them, they would be thrilled! The majority of these buyers are obviously impacted by the increase in interest rates, so their purchase numbers are a ”little harder”, but they all still want to buy a new home. I repeat my quest and search, so if you are at all thinking about making a move, or know someone who is, please give me a call… 310-442-1384

I hope you all had a wonderful Memorial Day Holiday weekend.

Talk to you soon

Carole: 310 442-1384

 

 

Carole Schiffer, Realtor Coldwell-Banker Residential Brokerage/Brentwood Office 310-442-1384 (office) or e-mail me at carole@caroleschiffer.com www.caroleschiffer.com
CalBRE 00677619
©2022 Coldwell Banker Real Estate LLC. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate LLC 234567An Equity Company. Equal Housing Opportunity. Owned and Operated by NRT LLC

The SchifferLine
Timely Real Estate News………………………….15  May  2022

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Happy Memorial Day — Summer beings May 30
It’s not on the calendar that summer actually begins on this annual holiday, but most Americans think so This three-day weekend which gives us all a chance to taste the spoils of the summer season. Although living in Southern California, especially during our drought, we don’t have to put our raincoats away, we seem to dress like it’s summer every day. Enjoy your Memorial Day weekend and summer….Carole

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April sales and prices — a mixed bag
Higher interest rates combined with a slowdown in the stock market, resulted in a mixed bag of results for real estate in the four communities I report on — Beverly Hills, Bel-Air/Holmby Hills, Brentwood, and Westwood/Century City. With the Federal Reserve upping interest rates by ,50 percent at their May 3-4 meeting, mortgage rates climbed to over 5%, which put a drag on some buyers’ ability to purchase a new home. Buyers with cash offers, most often engaged in multiple offers for a scarcity of inventory on the Westside, proved to be the most likely to succeed in getting their dream home. More about this later in this issue.

Median sale prices for 2022 were mixed across the board — Beverly Hills, an expanded area from previous MILS reporting data, was up 15% in MSP at $3.477 million, compared to $3.025 million a year ago at this time. Bel-Air/Holmby Hills was up 65% to $4.090 million compared to $2.350 million in 2021.

However, Westwood/Century City was down 22%, with an MSP of $980 million through April vs. $1.212 million in 2021, and Brentwood was down 5% to $1.980 million from $2.100 million thru April 2022. Santa Monica, another area I cover, was up 13% in median sales price to $3.868 million from $3.400 million previously in 2021.

What we are seeing is a leveling of prices as interest rates are having an impact on buyers’ ability to qualify for mortgages that are now reaching 6% and are expected to go higher and inflation continues to be a factor in our economy.
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Sales volumes also showed a mixed bag
As inventory continues to struggle to meet an intense demand for homes in our area. Multiple offers continue to be the norm today. Beverly Hills led sales with $1.038 billion in sales through April 2022. Bel-Air/Holmby Hills added $377 million, Brentwood had $404 million, and Santa Monica chipped in with $354 million.

Another key indicator of “strength of market” is, of course, Days on Market — how long do properties ’sit’ before escrows open? The median days on market for Beverly Hills was 29 days for April, 35 days for Bel-Air/Holmby Hills, 14 days for Brentwood, 15 days for Westwood/Century City, and 14 days for Santa Monica. The higher-priced homes — in Beverly Hills and Bel-Air/Holmby Hills — generally take twice as long to move off the market.

To sum it all up, we’re seeing how the market reacts to inflation and the resulting Fed rate increases — housing costs are going up, like everything else. Economists expect interest rates to keep moving upward as the war in Ukraine continues, the market drops, and inflation stays at its current height. How high? Some predict 8%, but it is too early to tell….my advice: Buy Now! Interest rates will continue at the current rate and most likely will go higher. If you wait, you’ll look back and think…”I shoulda….”: Also, while the current interest rates are higher than they have been in recent years, they are still lower than they were a few years ago, and unfortunately, we are not going to see the interest rates in the 2% and 3% range again.

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Sellers hit a ’tipping point’ — dropping prices
The share of home sellers dropping their asking prices has risen to a six-month high. The percentage is still low, but the quicker pace of price drops is notable, researchers say.

For the four weeks ending May 1, 15% of home sellers dropped their asking prices, up from 9% a year earlier. More home buyers may be starting to feel priced out by the rapid rise in mortgage rates, which may be making sellers have to adjust slightly. The 30-year fixed-rate mortgage averaged 5.27% last week, up from 2.96% just one year ago, Freddie Mac reports.

Meanwhile, the median existing-home price in March was $375,300, up 15% from a year ago, according to the National Association of Realtors.

Housing affordability is declining as monthly mortgage payments increased by nearly 10%; the median family income increased by just 1.1% in comparison, according to NAR’s housing affordability index, reflecting March data.

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High-end sales still ahead of 2021…that’s good news.
We remain ahead of last year at this time in high-end sales, which are those homes selling for $5 million-plus in the West Los Angeles region.

There have been 368 sales of $5 million-plus so far this year, versus 336 at this time last year, up 9%. Of these, 128 were $10 million-plus this year, versus 117 at this time last year, up 8.5%. Thirty-six (36) were $20 million-plus this year, versus 28 at this time last year, up 29%.

Of those, 19 were $30 million-plus this year, versus 10 at this time last year. , up 90%. Ten (10) of these sales were $40 million-plus, and there were only four at this time last year. There are 111 pending sales of $5 million-plus now, and of these, 29 are $10 million-plus, 12 are $20 million-plus and three are $30 million-plus.

Included in this list of the 36 $20 million plus sales are these locations — eight each in BHPO and Malibu, six in Bel-Air, five in Beverly Hills, four in the Palisades, two in Hancock Park and one each in Sunset Strip, Holmby Hills and Brentwood Yes, we continue our successful marketing of our high-end properties…and why not? We have the most beautiful place in the world in which to live and thrive!
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More markets reached double-digit gains in 2022 Q1
The first quarter of 2022 saw more markets reach double-digit annual price gains than the previous quarter, according to the National Association of Realtors. Seventy % of 185 measured metros experienced such price gains, up from 66% in the preceding quarter.

These increases come as median single-family existing-home prices rose at a faster rate nationally – 15.7% – from one year ago, up to $368,200. In comparison, the year-over-year pace in the prior quarter was 14.3%. Notably, the Southern region of the Country made up 45% of single-family existing-home sales in the first quarter and notched a double-digit price appreciation of 20.1%. Meanwhile, the Northeast saw a climb of 6.7%, the Midwest 8.5%, and the West 5.9%.

“Prices throughout the country have surged for the better part of two years, including in the first quarter of 2022,” said Lawrence Yun, NAR chief economist. “Given the extremely low inventory, we’re unlikely to see price declines, but appreciation should slow in the coming months.” Yun notes his prediction is based on an expectation of further supply for the upcoming quarter, citing that the beginning of the first quarter registered a record-low amount of inventory. He also anticipates other changes.

“Price gains in many smaller, tertiary cities are now outpacing those in the more expensive primary and secondary markets,” he continued. “This is due to buyers looking for less expensive housing and also a result of more opportunities to work from home, making relocation to smaller markets possible.”

Half of the nation’s top 10 most expensive markets were in California, including San Jose-Sunnyvale-Sta. Clara, Calif. ($1,875,000; 25%); San Francisco-Oakland-Hayward, Calif. ($1,380,000; 15%); Anaheim-Santa Ana-Irvine, Calif. ($1,260,000; 26%); San Diego-Carlsbad, Calif. ($905,000; 18.5%); and Los Angeles-Long Beach-Glendale, Calif. ($792,500; 13.1%). This is encouraging…for homeowners. For buyers? Not so much.

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Inventory supply ‘relief’ may be on its way.
One of the leanest housing markets in history might be putting on some fat. The supply of homes for sale could increase in the next few weeks, according to new data from Realtor.com.

In April, inventory was 12% lower than in the same month last year, the smallest year-over-year decline since the end of 2019. Another reading for just the last week in April shows inventory down only about 3% from a year ago.

“April data suggests a positive turn of events is on the horizon for weary buyers: If the trends we’re seeing now hold true, we could potentially see year-over-year inventory growth within the next few weeks,” said Danielle Hale, chief economist for Realtor.com.

The shift in supply is likely due to a slower sales pace stemming from the recent rapid increase in mortgage rates, which has made expensive homes even pricier. The average rate on the 30-year fixed has jumped more than 2.5 percentage points since the start of the year.

New listings were down 0.9% in April compared with a year ago, and the number of active listings is still down 67% from pre-pandemic levels. The growth in supply is being led by mid-sized family homes, as fewer are going under contract despite it being the spring market, a popular time for families to shop for houses.

Higher mortgage rates, combined with record high home prices, have sidelined much of the competition. Home prices are up about 34% since the start of the pandemic. The monthly mortgage payment on a $400,000 home, with a 20% down payment, is now $467 more than it was in March 2020, according to Realtor.com

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Homeowners are delaying needed home repairs
Make no mistake about it, homeowners are not making the repairs they need to make according to Consumer Affairs. We all know, homes are not perfect, and they are often in need of repairs and maintenance. The average home is in need of about $3,150 worth of repairs that haven’t been made yet, according to a new survey of more than 1,000 homeowners conducted by consumer information website Consumer Affairs.

About one in four homes are in need of serious repairs. Forty-five % of homes are less safe due to those neglected repairs, the study finds. The average homeowner waits more than 10 months to make a critical repair on the home.

Some homeowners inherited needed repairs when they first purchased a house. Forty-three % of homeowners say they hadn’t made repairs that were needed when they purchased the home.
The expense is the leading reason homeowners have delayed fixing issues. More than half of homeowners surveyedsay they don’t have much saved up to pay for home repairs. Only 41% of homeowners say they could afford a $500 repair out of pocket, and that percentage drops to 28% for those who could afford a $1,000 repair.

There have been many times over the years of my career, when I have sold a house where the buyer “could not stand the color of the carpet”, and or something in the house needed fixing, only to see when called me a few years later to sell the house, that same carpet was on the floor, or the repair had not been made.

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Speaking of repairs
I think most of you know I live in Bel Air Crest, which is a high fire zone and in the last few days, it has proven to be the case. I was working at home the other afternoon, when I heard the water dropping helio copter over head going back & forth. Yes, we had a brush fire just off the 405 and Sepulveda! After about an hour or so, the LAFD got it out, only to have it flare up again a few hours later, and then when I was driving to work the next day, there was smoke again along side Sepulveda and 405! Then coming home from work that evening, there was another fire being attended to by 5 -6 fire trucks. All of this truly scary and daunting.

Because of the drought, winds and heat, we are in for a long hot summer and the fire we had by my house was too small as the news stations were concentrating on the bigger fires including the tragic one in Laguna Nigel. I am not sure if you noticed, but the flames on the houses were coming up from the bottom and as a result, the homes were burning from the inside out.

I cannot stress enough installing Vent Guards on your homes if you have not already done so. They are designed to prevent what was happening with the homes in Laguna Nigel in that they protect the vents for our homes on the ground as well as the vents by the eaves at the roofs of your home. If you do nothing else, please do this for yourselves. Call me… Carole Schiffer, 310 442-1384 and I will give you their contact information

Also, please make sure your home owners insurance is sufficient enough and you have a plan in place if/when you might need it.

We all have to be prepared for these types of emergencies.

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My “Hot Listing” in Westwood Hills
About 10 days ago, I listed a sweet little home on Veteran in Westwood Hills. It is charming, close to campus and has a fabulous upstairs family room and lovely back yard. It also has 26 steps which is the ONLY way you can get in the house. The house needed some repairs, so the seller installed a completely new roof, drain pipes and gutters, refinished the oak floors, painted the interior, did the termite repair work as well as tented it, and cleaned up the landscaping.

The Sellers & I priced it taking into consideration what they had done, but also the fact that there those “stairs”, and it was on somewhat on a busy street. The first two days it was on the market, we had over 70 people through the house, received 10 offers, most of them from owner users. At the end of the day, we sold it in two weeks, well over our asking price to owner users (I will tell you the price when we close escrow in about 30 days). The investors dropped by the way side. Of the offers we got approximately 50% of the buyers all getting loans, not at all bothered by the new interest rates.

What does this tell us???? There are still a lot of buyers out there, wanting to desperately “buy something”.. so, Sellers, please pick up the phone and call me… 310 442-1384. I expect I can do the same magic for you as I was able to do for the Sellers on Veteran.

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Carole Schiffer, Realtor Coldwell-Banker Residential Brokerage/Brentwood Office 310-442-1384 (office) or e-mail me at carole@caroleschiffer.com www.caroleschiffer.comCalBRE 00677619 ©2022 Coldwell Banker Real Estate LLC. Coldwell Banker iregistered trademark licensed to Coldwell Banker Real Estate LLC 234567An Equal Opportunity Company. Equal Housing Opportunity. Owned and Operated by NRT LLC

The SchifferLine
Timely Real Estate News……………………………1 May  2022

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Existing home sales fell in March
March marked the second consecutive month of existing home sales declines according to the National Association of Realtors. Month-over-month, sales in March waned in three of the four major U.S. regions while holding steady in the West. Sales were down across each region year-over-year.

Total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, dipped 2.7% from February to a seasonally adjusted annual rate of 5.77 million in March. Year-over-year, sales fell 4.5% (6.04 million in March 2021).

Existing-home sales in the West held steady compared to the previous month, posting an annual rate of 1,210,000 in March, down 4.7% from one year ago. The median price in the West was $519,900, up 5.4% from March 2021.

“The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power,” said Lawrence Yun, NAR’s chief economist. “Still, homes are selling rapidly, and home price gains remain in the double-digits.”

With mortgage rates expected to rise further, Yun predicts transactions to contract by 10% this year, for home prices to readjust, and for gains to grow around 5%.

The median existing-home price for all housing types in March was $375,300, up 15.0% from March 2021 ($326,300), as prices rose in each region. This marks 121 consecutive months of year-over-year increases, the longest-running streak on record.

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The reality: Multiple offers remain prevalent this Spring
Home sellers are still fetching multiple offers on their properties and buyers continue to face competition, even as the housing market has shown some signs of slowing. Realtors reported an average of nearly five offers on each home that sold in March.

On average, half of buyers made two offers before being successful in their purchase by the third try, the survey shows. And buyers are paying more than list price, too. Fifty-seven (57%) percent of buyers offered above the list price, which is up from 48% in February.

“Multi-offers on a home are still prevalent because even if buyer traffic is weakening it is still outpacing supply,” Gay Cororaton, research economist at the NAR, writes at the association’s Economists’ Outlook blog. “With homebuying demand still outpacing supply, properties typically stayed on the market for a shorter time compared to one year ago, at 17 days on the market.” Eighty-seven percent (87%) of listings were on the market for less than one month.

Cash buyers still continue to hold the upper hand in bidding wars, accounting for 28% of sales in March. Buyers who
offered an all-cash transaction were four times more likely to win in a competitive offer situation than those who didn’t in 2021

“Multi-offers on a home are still prevalent because even if buyer traffic is weakening it is still outpacing supply,” Gay Cororaton, research economist at the NAR, writes at the association’s Economists’ Outlook blog. “With homebuying demand still outpacing supply, properties typically stayed on the market for a shorter time compared to one year ago, at 17 days on the market.” Eighty-seven percent (87%) of listings were on the market for less than one month.

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So, think you’ll get multiple offers? Well, you’re not alone.
Homeowners who are thinking of selling now believe that ’they should’ get top dollar — and beyond — for their home. About 43% of sellers recently surveyed say they expect their home to sell over the asking price, according to a new survey of 1,000 homeowners.

More than a quarter of sellers—28%—expect to receive an offer on the first day the home is listed. Fifty-three percent (53%) anticipate an offer within a month. Thirty-six percent (36%) said they would be able to negotiate a better price, 31% said their appraisal would come back at a higher price, 30% fee that buyers will start a bidding war over their home, but 25% said they will sell for less than the asking price.

In a separate survey conducted recently by a real estate referral site homeowners also showed great expectations for the sale of their homes. About half of home sellers surveyed said they expected to retain 30% or more of the sale price of their homes. Eighty-seven percent (87%) of sellers surveyed also expected to receive more than one offer on their home. Fifty-two (52%) percent expect to receive four or more offers.

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Some other thoughts on the market and buying now
About two weeks ago, the Wall Street Journal published an excellent article by Laurence Kotilkoff entitled A Home i=is your Castle Against Rising Inflation. I will not repeat the entire article, but I do however encourage you to read it. Here are some snippets.

“If you’re holding back from buying a house now because of the rise in rates, consider that inflation is up even more.” “A year ago, it was running at 2.6% on a year over year basis (March 2020-March 2021).”: Today, this retrospective annual inflation measure is 8.5%”. “We haven’t seen inflation this high since the early 1980s”” If inflation continues at this rate, you’re better off borrowing money today at 5% and paying back a year from now with dollars that have depreciated by 8.5%”.

“But the story is more complicated. Retrospective inflation isn’t the same as prospective inflation” “prices rose by 1.2% last month alone.” “That’s an annualized inflation rate of 15.4%.” In that case, the current 5% rate is even more of a bargain in the short term”.

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Outdoor watering restrictions take effect June 1
California’s continuing drought is causing Southern California officials to take unprecedented steps of declaring a water shortage emergency and ordering outdoor usage be restricted to just one day a week for about 6 million people in parts of Los Angeles, Ventura and San Bernardino counties.

The outdoor watering restrictions will take effect June 1 under the decision by the Metropolitan Water District of Southern California and will apply to areas that depend on water from the drought-ravaged State Water Project. “We are seeing conditions unlike anything we have seen before,” said Adel Hagekhalil, the district’s general manager. “We need serious demand reductions.”

The MWD’s board has never before taken such a step and the resolution by the water wholesaler will bring the first widespread water restrictions imposed in Southern California during the current extreme drought.

California’s drought, now in a third year, has become the driest on record and has been intensified by hotter temperatures unleashed by climate change. With the state’s major reservoirs at low levels, the MWD has been left without enough water in parts of Southern California. Large parts of the City of Los Angeles, San Gabriel Valley and Ventura County rely heavily on MWD water.

“These areas rely on extremely limited supplies from Northern California, and there is not enough supply available to meet the normal demands in these areas for the remainder of the year,” Hagekhalil said. So please heed these new limitations on watering outside. It is a hardship to be shared by all

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Buyers and sellers like green…as in “sustainability green”
Green features are the ‘hottest’ new features for both buyers and sellers according to the NAR. The number of realtors involved with buying or selling a property with green features has significantly increased in the past year, according to a recent study from the National Association of Realtors. In their MLS, the top ways they were used were to promote green features (35%), energy information (24%) and green certifications (13%).

Sustainability continues to play a growing role in consumers’ purchasing decisions, and this is becoming even more prevalent in the real estate market,” said NAR President Leslie Rouda Smith. “With the residential property market, in particular, home buyers have expressed increased interest in eco-friendly factors like solar panels and energy efficiency
Half of agents and brokers surveyed said they helped a client buy or sell a property with green features during the past 12 months, a notable jump compared to 32% in 2021.

Nearly two out of three respondents – 63% – said that energy efficiency promotion in listings was very or somewhat valuable. Over half of agents and brokers – 51% – found that their clients were somewhat or very interested in sustainability. And 35% reported that their multiple listing service features green data fields. Among those with green data fields.

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What should a homeowner or purchaser/seller look at to make their home “greener

There are four primary categories one should consider making their home green

The first category is Energy Efficient Equipment
This includes Smart Power Strips, Charging Stations, LED lights, Smart Thermostats, Energy Saving Apps, Smart refrigerators, ovens. Cooktops, and dishwashers, energy efficient plumbing, and high efficiency laundry machines.

The Second Category is Energy Efficient
Solar panels, energy efficient glass windows,

Smart Landscaping
Choosing water tolerant plant materials, replacing grass with other water tolerant products, keeping your soil healthy, using mulch

Sustainable materials
Composite roof shingles, bamboo floors, solar panels, Eco-friendly insulation.

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Travels around LA with Patt Morrison….
Pulitzer-award winning LA Times writer Patt Morrison offered a wonderful review of often overlooked historical landmarks that have served as our city’s most important cultural foundations.

Among the many rare gems, she covered in her April 17 story, is the famous Lummis House in Highland Park, designed and built by Charles Lummis in 1897. The home was built of boulders dragged up from the Arroyo Seco, the sometimes-waterway of which Teddy Roosevelt told Angelenos: “This arroyo would make one of the greatest parks in the world.” Naturally, we turned it into the Pasadena Freeway. Located at 200 East Avenue 43…opens at 10 am on Saturdays and Sunday only.

Bradbury Building. The man who envisioned and paid for it was the silver-mine and real estate tycoon Lewis L. Bradbury, whose name adorns a town in San Gabriel Valley. A dazzled critic called the building “a fairy tale of mathematics.” The interior is what Patt Morrison would call “Victorian futurist”: glazed brick and tracery wrought-iron staircases and balustrades. Scenes from “Blade Runner” were filmed here. The building is located at 304 South Broadway, Los Angeles, and closes at 6 pm.

In future issues of the Schiffer Line, we will highlight other iconic edifices in Los Angeles. This is our heritage, of which we should and are most proud.

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My HOT new listing.
In the amazing community of Westwood Hills is the charming, home located at 521 Veteran Ave. Being offered at $1,699,000 this lovely 3 1/34 bath has been polished, shined for all to see. There is a brand-new roof including gutters and drain spouts, gleaming solid oak floors, freshly painted interior, completely landscaped, two fireplaces, an amazing upstairs family room with desk and steps leading to a lovely garden.

For an appointment to see the house, please give me a call at 310-442-1384.

                                                    Happy Mother’s Day

 

 

The SchifferLine
Timely Real Estate News……………………………15  April 2022

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Celebrations
This is the time of year for the celebration of Passover, Easter and Ramadan.
I hope whatever holiday you celebrate; it is a happy, mediative and festive one spent with family and those close to you.

Hopefully, these celebrations will soften the bite of Tax Day on the 18th of April!

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Sales remain strong although median prices are slowing
In the communities I report on each month, we are seeing continued strong volumes but not the robust increases in median sales prices that we have been experiencing during the Pandemic, which, by itself, seems a bit odd. For example, Beverly Hills median sales prices have fallen to $3.650 million, down 7.59% for March compared to February. However, please understand that under the new MLS reporting data I am receiving, the Beverly Hills area has been greatly expanded to include areas outside of previous reporting areas…so data is trending differently.

On the other hand, Bel-Air/Holmby Hills’s median sales price for March was up 88%, at $4.050 million, and Westwood/Century City was at $1.250 million or up 83%, while Brentwood was $2.100 million, up 9%.

Sales volumes were strong — Beverly Hills sold $883 million for March 2022, Bel-Air/Holmby Hills sold $326 million; Westwood/Century City was at $408 million, a very active market these days, and Brentwood was at $303 million in sales volume.

Days on market, always a valuable indicator of market strength, were down in all these markets, with Beverly Hills at 30 DOM, Bel-Air/Holmby Hills — 35, Westwood/Century City at 52, and Brentwood at 14 DOM, quite an improvement over last month. Santa Monica was at 52 DOM.

Median sales prices have moderated somewhat throughout the Westside, and we continue to see multiple offers on most properties — if they are competitively priced. I have several very qualified buyers who are seeking homes on the Westside, so please call me — Carole, 310-442-1384.

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Rising mortgage rates….what to do? Buy now!
We’ve been through this before…recessions, economic slowdowns, inflation…you name it and it all eventually shows up in higher interest rates. And that’s where we are now. Going from less than 4% just months ago to a little over 5% for a conforming loan. This is our new reality. If you are waiting for the rates to go down, you will be greatly disappointed. So0, what to do?

My recommendation is that if you are searching for a new home, step up now because as we have seen in the past, rates are going to continue to go up. Some economists see as much as 8% for mortgage rates in the near future, so today’s rate of 5.1% looks like a bargain. They also all say that should the rates climb to 8% they will “level back “ down in the 5 range. While these rates are certainly as low as they have been for the last few years, in the scheme of things they are still low, and again, are likely to stay at this rate. As we have seen before, those who are waiting for the ’return to normal’ are going to be frustrated as they have been in the past. We’re past the ’new’ normal. Waiting for the rate to get better is in my esteemed opinion fool hardy as is not going to happen. Wish I could tell you otherwise, but as they say, “A is A” Ayn Rand – “Fountain Head”.

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What Is a Conforming Loan?
A conforming loan is a mortgage that meets the dollar limits set by the Federal Housing Finance Agency (FHFA) and the funding criteria of Freddie Mac and Fannie Mae. For borrowers with excellent credit, conforming loans are advantageous due to their low interest rate. According to my favorite lender, Simon Atik at Guarantee Rate Affinity that loan rate was 5.1%.

The total mortgage application volume fell another 6% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was down 41% from the same week one year ago.

Applications to refinance a home loan, which have been falling steadily for months, dropped another 10% week to week. Refinance demand was 62% lower than the same week one year ago.

Please take into account our mortgage rate history….the current rates proport to be the best you will get for some time. I remember when I bought my condo in Westwood in 1982, I thought the 13% interest rate was a gift!

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NAR’s chief economist Lawrence Yun on inflation:
Inflation continues to kick higher with an 8.5% consumer price rise in March. Aggressive inflation will force the Federal Reserve to raise interest rates multiple rounds this year and actively pursue quantitative tightening. That is why mortgage rates recently have shot up so high. Higher mortgage rates will inevitably pull home sales down in the coming months and slow home price appreciation. My projection at the moment is for a 10% reduction in home sales this year and a 5% home price gain by the year’s end.

“Rents rose by 4.4%, even though many private sector data sources have been pointing to even faster gains. Hotels

and motels are charging 29% more. Home price is not part of the consumer price index but has hurt first-time buyers, especially with rising mortgage rates. Clearly, more construction of both apartments and single-family homes is needed.

Realtors drive much more than the general population and have felt the pain at the pump. To airfare, which rose 24%, and pretty much to all goods that are transported. Higher energy prices moreover will provide revenue to energy-producing countries including Russia, irrespective of economic sanctions. It is a lower energy price from raising global oil supply that will squeeze Putin.”quantify this, gasoline prices were up 48% from a year ago. Higher energy prices will also filter up to

Yun is the long-time chief economist for the National Association of Realtors.

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Fed to raise interest rates again….will impact real estate
A new rate hike will surely trigger higher mortgage rates…the question is: How much? There is no doubt that the Federal Reserve is going to be much more aggressive regarding controlling inflation, which hit a 40-year high of 8.5% for March. The ruling opinion amongst economists — the Fed will pile on 50 base points hike at their May meeting.

As I stated above, mortgage rates are now 5.1% and could go as high as 8% later this year. Not only do higher interest rates mean buyers’ monthly mortgage payments are going to rise, it will also result in some buyers, who must meet banks’ strict debt-to-income rations — losing their mortgage eligibility. Fewer buyers should result, however, in a deflation of U.S. home price growth, which is up 18.8% over the past 12 months.

The impact is not only going to be felt by first-time home buyers (the most), but it will make it more difficult for existing homeowners to move because it will mean giving up existing low-interest loans for much higher-rate loans in a new home. Also, homeowners are going to be impacted for any refinancing, so it behooves both buyers and sellers to assess their future financial moves relating to their home investment. Yes, it is challenging times.

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Mortgage applications decline
As a consequence of all of this, mortgage application volume continues to decline “…as financial markets expect significantly tighter monetary policy in the coming months,” said Joel Kan, a Mortgage Bankers’ economist. “As higher rates reduce the incentive to refinance, application volume dropped to its lowest level since the spring of 2019.”

The refinance share of all applications fell to 38.8% from 51% a year ago. Mortgage applications to purchase a home declined 3% for the week and were 9% lower than the same week one year ago.

A strong employment market with continuing wage growth is keeping housing demand hot, but the supply of existing homes for sale is still extremely lean. Bidding wars tend to be the rule, rather than the exception. Affordability is falling fast, and entry-level buyers are being sidelined.

“The elevated average purchase loan size, and steeper 8% drop in FHA purchase applications, are both indicative of first-time buyers being disproportionately impacted by supply and affordability challenges,” added Kan.

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Home prices continue upward trend….not ending soon
No surprise — home prices continue to rise everywhere as inventory remains tight. Home prices nationwide, including distressed sales, increased year over year by 20% in February 2022 compared with February 2021. On a month-over-month basis, home prices increased by 2.2% in February 2022 compared with January 2022.

The CoreLogic HPI Forecast, a leading real estate tracking source, indicates that home prices will increase on a month-over-month basis by 0.6% from February 2022 to March 2022 and on a year-over-year basis by 5% from February 2022 to February 2023.

“New listings have not kept up with the large number of families looking to buy, leading to homes selling quickly and often above list price. This imbalance between an insufficient number of owners looking to sell relative to buyers searching for a home has led to the record appreciation of the past 12 months.

Higher prices and mortgage rates erode buyer affordability and should dampen demand in coming months, leading to the moderation in price growth in our forecast,” according to Dr. Frank Nothaft, Chief Economist for CoreLogic.

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Westside’s high-end sales are up but slowing….
While we are used to seeing amazing increases in home sales and price increases for each month of the past two years, we are seeing a bit of a ‘stall’ – we are still ahead of last year at this time, but it is not like it used to be.
There have been 252 closed sales of $5 million-plus so far this year, versus 233 at this time last year, up only 8%. Of these, 94 were $10 million-plus versus 75 at this time last year, up 28%. Sales are moving more slowly.

Twenty-five (25) of these sales were $20 million-plus, versus 12 at this time last year, up 108%. Of these, 12 were $30 million-plus and there were only two at this time last year. Of these, 10 were $40 million-plus and there was only one at this time last year.

The community locations of the 25 homes over $25 million were — seven in Beverly Hills Post Office, five each in Beverly Hills, Bel Air and Malibu, two in Hancock Park and one in Holmby Hills. At the moment, we have 101 pending sales of $5 million-plus and 26 of these are $10 million-plus.

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Brentwood Circle, luxurious gated community
Brentwood Circle is a beautiful, 24-hour, guard-gated community of 67 luxurious homes, north of Sunset Boulevard
within close distance to Brentwood Village, a quaint shopping area featuring fine restaurants, shops, offices, beautifulparks and a post office.

What makes Brentwood Circle unique is that it has the prestigious, world-famous Getty Center as its neighbor to the north. And with that, a bit of trivia and history: When the Getty Trust decided to build on their incredible property in Sepulveda Pass in the 1980s, one of their emergency access roads to their property was through the Brentwood Circle neighborhood.

This presented challenges for both neighbors, and to resolve the issue the Getty Center helped facilitate the construction of a private gate to control access to both the community

and the Getty. Today, Brentwood Circle has a 24-hour guarded main entrance, augmented by two other exit-only gates within the community.

Brentwood Circle is a unique enclave in many ways…it has a relatively small number of homes for a private community which naturally brings neighbors together…and in the past the community purchased two-foot cast iron bells that they would display during the holidays, (only a few remain, however) and more importantly, there is little turnover of homeowners because residents love the uniqueness of Brentwood Circle and the privacy it provides.

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What is the mood and temperature in my office now?
Frankly, it is quite busy. At our weekly sales meetings we are hearing the reports of a few more listings, a good number of new escrows, and some really extra ordinary leases, with some really healthy amounts. The majority of my office recently went on a road trip to Santa Ynez to see two homes listed by Coldwell Banker, one for $69,000,000 and the other for $30,000,00. Unfortunately, I was not able to join them as I was too busy working on other things to take a day or two off to play. I will share their findings on my next Schiffer Line on the first of May.

One of the things I am working on is preparing my new listing in Westwood Hills, which will be coming on the market the end of this month. It is a charming home that is getting its “Spring Sprucing up” done before it is shown. The price will be $1,699,000. I am taking names and phone numbers for anyone that might be interested so they can get a head start on seeing it when it is ready. If you are or know someone who might be interested, please do not hesitate to give me a call… 310 442-1384 and I will add you/them to the list.

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Some Final Thoughts
As we look at the horrific pictures and news reports coming out of Ukraine, I am reminded of how lucky we all are to live where we live and to celebrate with our loved ones

                                                 Happy Passover, Easter & Ramada

 

 

 

The SchifferLine
Timely Real Estate News……………………………15  March 2022

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Median sales prices continue to show strong increases
The Multiple Listing Service (MLS) has recently upgraded their data collection and reporting formats, and from now The Schiffer Line will be presenting this data on the five major communities I report on regularly — Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Brentwood and Westwood/Century City. The new format combines both Beverly Hills and the Post Office, so that information will be reflection of both communities. I am and will ty to separate the stats for the two communities, particularly as I am some difficulty understanding how the stats account for their numbers. The reformatting has expanded some of the reporting areas, which means our data will reflect only the current configuration which offers a broader view of what is happening in these communities. Each month, I will continue to cover other communities where I also work, and this month I will be reporting on Venice.

The good news is we continue to see median sales prices continue to be strong in all of these areas for January-February 2022. The Beverly Hills report now includes and has seen a 78% risein median sales prices from $2.714 million to $4.950 million compared to the two first months2021. Bel-Air/Holmby Hills showed an 81% increase in median sales prices from $2.725 million to $4.140 million. Brentwood had a 3% increase from $2.141 million to $2.220 million, and Westwood/Century City had a 17% increase — $1.045 million to $1.223 million. For Venice, median sales prices went from $1.790 million to $2.100 million, a 17% increase. As always, we have seen some extraordinary numbers for sales, for example, there were 10 sales over $7 million with the most expensive one coming in at $24,137,392. The Post Office had 6 over $7 million again with the topper at $58,000,000! Bel Air coming in with its highest sale at $37,000,000 of the 4 sales over $7 million (and let’s not forget the auction of the house – The One which sold at $125,000,000 , against an asking price of $250,000,000 which will most likely be in the MLS report for March). Brentwood had 4 sales over $7 million starting at $15,305.547, and Westwood/Century City 1 sale over $7 million at $9 million. The Venice, Playa del Rey, and Playa Vista areas did not have any sales over $7 million with the highest one in Venice coming in at $5.900,000.

In comparing February 2022 median sales prices to 2021, Beverly Hills was up 24%, Bel-Air/Holmby Hills was also up 24%, Westwood/Century was up 25% and only Brentwood was down 9%. Venice’s MSP were down 6% compared to same time last year. I have not separated Beverly Hills Post Office median prices from the Beverly Hills prices.

Average Days on Market were down substantially — Beverly Hills was down to 53 days; Bel-Air/Holmby Hills was down to 51 DOM; Brentwood was down to 38 days; and Westwood/Century was down to 44 DOM and Venice to 75 Days on Market. All areas are coming down for DOM because of the intense competition for reduced inventory. This condition will most likely not change for some time.

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Sales robust in all areas….

Without question, the sales volume increased substantially, and The Schiffer Line is starting with a new baseline for the above communities, and we will be comparing total sales vs. the new reformatted sales data as of February’s 2022 report. Total sales for the five communities I regularly report on for the first two months of 2022 were $1.284 billion — with Beverly Hills leading the way with $611 million, followed by Westwood/Century with $250 million, Brentwood with $206 million and Bel-Air/Holmby Hills at $142 million. Venice had $117 million through February 2022.

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High-end Westside sales move up, but more slowly
During the past 12 months, we have seen dramatic increases in high-end sales (those above $5 million) on LA’s Westside. However, as the impact of various global events including the war in Ukraine and rising inflation, we are seeing a marked slowdown in high-end sales.

But we are still ahead of last year at this time. There have been 155 closed sales of $5 million-plus so far this year, versus 137 at this time last year — up 13%. Sixty (60) were $10 million-plus this year, and there were 40 at this time last year, up 50%. Of these, 14 were $20 plus million and there were seven (7) at this time last year, up 100%.
Six of these sales were $40 million-plus and there was only one at this time last year. There are 108 pending sales of $5 million-plus at the moment and 26 of these are $10 million-plus, and one is $40 million-plus.

The 14 $20 million-plus sales so far this year were: 5 in BHPO, 4 in Beverly Hills, 3 in Malibu and 1 each in Hancock Park and Bel Air. Most of the buyers for the $20 million-plus sales were American.

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Preventing fires relies on communities pulling together
Last month, I shared with you six recommendations you can implement to protect your home in case of wildfires sweeping over your area. But individually, homeowners can’t prevent fires by themselves if neighbors are not also well prepared: There are community action programs you can implement. For example, a homeowner’s safety upgrades can be undermined by neighbors who ignore the hazards on their own properties. So, community-wide efforts are crucial.

The framework lays out the following “mitigation elements” for communities to adopt:

•  Clearly defining the community’s boundary, then obtaining an assessment of the community’s fire risk from the local fire district or the state fire agency.

• Identifying an evacuation route that is kept clear of overgrown vegetation, along with a contingency plan.

• Finding the financial resources to support the upgrades needed to meet “clear risk reduction goals.” Cal Fire offers fire prevention grants that can pay for clearing firebreaks and removing combustible material, but the dollars are available only to governmental agencies, tribal groups and nonprofits.

• Developing plans with measurable annual goals for reducing the community’s wildfire risks, as well as steps to increase the awareness and education of community members regarding those risks. Currently, 10 insurers are offering community-based discounts to homeowners, although they aren’t all using the same criteria. The new framework puts forward a standard that all insurers could use to judge a community’s mitigation efforts.

A good place to start is with your local fire safe council, which you can locate on the California Fire Safe Council website. These groups draw up wildfire plans, educate local homeowners about prevention and tackle larger projects to protect their communities, such as clearing brush and creating firebreaks.
I recently learned that some of the bigger insurance carriers will once again be dropping and/or not renewing their current policies as they are no longer insuring homes in California. If you need some assistance, please contact me as there are still a few carriers that are issuing policies, and I might be able to refer you to them. ceschiffer@gmail.com or 310 442-1384 which is my office land line.

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Mortgage rates and a word or two from the Director of Forecasting, NAR Research
Nadia Evangelou, Senior Economist and Director of Forecasting, NAR Research said in her recent Facebook post what I have been saying. “Mortgage rates rose this past week as inflation jumped to its highest level since January 1982. The 30-year fixed rate increased to 3.85% from 3.76% the previous week. While its too soon to know how the war in Ukraine will affect the US economy, it seems that it will continue to put upward pressure on inflation. Most likely the Fed will likely raise short term rates at the meeting next week. This strategy will also push rates up”.

“However, we all need to bear in mind that mortgage rates are still near historic lows. For instance, in 1982 when inflation was rising roughly at the same pace as now, mortgage rates were on the average 16%,

Meanwhile, the economy added nearly 12 million new jobs in the first couple of months of the year despite the spread of the virus. By comparison, about 400,000 new jobs are typically added to the market during the same period pre pandemic”

I am not at all advocating hiding our heads in the sand, not at all, I am simply saying that we all should try to keep the rising mortgage rates in perspective. We have more people returning to the work force and home ownership is still the American dream that we all reach for.

The war-induced drop-in U.S. mortgage rates was short-lived. Rates popped up again last week to the highest level in nearly two years. This may just be the beginning as the war in Ukraine drags on.

“Last week’s data indicates that homebuying competition is picking up as we move closer to the market’s busiest season. National listing prices, which hit a new all-time high in February, continued to accelerate at a double-digit annual pace,” said Danielle Hale, chief economist at Realtor.com.

There is some good news. The inventory of actively listed homes, which is near a record low, saw its fifth straight week of improvement last week.

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However, mortgage delinquencies drop to record low
While mortgage rates were inching upward, the percentage of homes with mortgages that have late payments or are in foreclosure has dropped to the lowest seen on record in more than two decades, according to CoreLogic’s data dating back to 1999.

The nation’s overall delinquency dropped to 3.4% at the end of 2021, with the majority of states posting a year-over-year decrease in delinquencies, according to CoreLogic’s newly released Loan Performance Insights report.

Declining unemployment rates and higher home prices are helping more homeowners stay afloat. “National home prices increased by 18.5% year-over-year, helping more owners regain equity,” Molly Boesel, principal and economist at CoreLogic, writes: “The combination of these dynamics pushed the overall mortgage delinquency and foreclosure rates to the lowest levels that CoreLogic has recorded in more than two decades.”

The data also reflects a time when pandemic-related forbearance aid was put in place to help financially struggling homeowners, although for many owners it had expired by the end of the year. U.S. employment has been robust and home equity levels have been on the rise, both of which have helped keep homeowners from going under. Lenders also reportedly have been stricter when issuing loans during the pandemic, ensuring it was to borrowers who were unaffected by hardships.

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Homeownership is leading source of net worth gains
Homeownership is widely recognized as the leading source of net worth among families. Housing wealth itself is primarily achieved by price appreciation gains, and the nation has seen home prices accelerate at a record pace during the course of the last decade.

A new study from the National Association of Realtors examines the distribution of housing wealth between 2010 and 2020 across income groups and in 917 metropolitan or micropolitan areas. NAR found that during those 10 years, nearly 980,000 middle-income households became homeowners. Within that timeframe, total housing wealth for this income group surged by $2.1 trillion.

“Owning a home continues to be a proven method for building long-term wealth,” said Lawrence Yun, NAR chief economist. “Home values generally grow over time, so homeowners begin the wealth-building process as soon as they make a down payment and move to pay down their mortgage.”

From 2010 through 2020, 529 of 917, or 58%, of metropolitan and micropolitan areas gained middle-income homeowners. NAR identifies these locations as rising middle-income class housing markets, i.e., markets that saw the largest increase in middle-class owner-occupied housing units in 2020 compared to 2010.

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Real estate market slowing down? Isn’t happening
If you’re a home buyer, you may have hoped that the real estate market might freeze up a bit in early January to allow breathing room in a less competitive market. Unfortunately, that doesn’t appear to be happening.

While it is early in 2022, the National Realtors Association monthly housing report shows that the real estate market is starting off just as competitive as 2021′s.

The typical home sold in 61 days in January, which is 10 days less than in January 2021 and nearly a month (29 days) faster than the typical pace of sales in January between 2017 and 2020, according to realtor.com. In some of the hottest markets, such as Nashville, San Diego, San Jose, Denver and Raleigh, homes sold in 36 days or less in January.
While buyers were active in the market in January, the number of homes for sale continued to lag well behind demand. The number of active listings on the market — which includes any home listed for sale, not just those that are recently listed — was down 28.4% in January 2022 compared to January 2021. It decreased 60.4% compared to the number of active listings in January 2020.

New listings, which are those first placed on the market during the month, were also down by 9.1% compared to January 2021 and by 17.9% compared to January 2020.

That imbalance between demand and supply contributes to the rapid increase in prices. The median listing price was up 10.3% in January 2022 compared to January 2021 to $375,000, which represents a 25% jump over the median listing price in January 2020.

In my office, we have been experiencing multiple offers on homes and income properties all across the board in all price points

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What is the hottest new gadget for your home? EV charger
High prices at the pump are inspiring car owners to get an electric-powered automobile (EV), but you will need more than the car to use it. Having a home charger will be on your shopping list, too.
Besides understanding what it will cost to power an EV, it’s also important to know the cost of a key piece of at-home technology: the electric vehicle supply equipment (EVSE), along with the cost of its installation.
Plug-in vehicles today typically come with the ability to charge at home on standard household current, 120 volts, which is called

Level 1 charging. They also can charge on faster 240-volt circuits, called Level 2 charging. If the vehicle has a small battery, under 10 kWh, you can often make do with the Level 1 charging system that comes with the vehicle. For plug-in cars with larger batteries, Level 2 is your best bet for overnight charging and quick top-ups
Most automakers with plug-in vehicles in their lineups have a preferred charger provider, but there are dozens of companies selling EVSEs. A search online will help you find the features, power output and pricing that best suit your need. Just search for “EVSE” or “EV home chargers.” Prices for quality Level 2 home systems can range from just under $200 to more than $1,000 before installation.

Installation costs for EVSEs vary by region, depending on such factors as local labor rates, materials used, and government permit costs and requirements. The biggest variable is permit costs, which varies from city to city.

Nationally, average costs for a home EVSE installation with short and uncomplicated 10-foot wiring, which runs from the electrical service box to the charging station, range from $800 to $1,300. The costliest region is the Western U.S., where installation can run from $950 to $1,300.

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New listing coming up!
We have some work to do on it before putting it on the market sometime in the next few weeks, but it is a lovely house in Westwood Hills and very convenient to the UCLA campus (available for a short walk particularly helpful what we are paying for gas these days!). Call me & I will let you know when we are ready to show our shiny new face! 310 442-1384 – Carole

Gratitude and acknowledgement of feelings.
Recently I lost a long-time friend and colleague to cancer, and it made me realize once again how grateful I am for all of my family, friends and colleagues and the very strong need to share your feelings with those you love and cherish. It is very important.