The SchifferLine
Timely Real Estate News…………………….15 April 2021
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March was a “wow” month as sales, prices zoom
March came in like the lion it is supposed to be — with sales volumes and prices zooming upward. With the year starting in the negative compared to January 2020, sales volume for the five communities I report on took off like a rocket — Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Westwood/Century City, and Brentwood — were up 22% to $1.007 billion compared to $813 million this time a year ago. There were some big sales that drove the volume higher, especially in Bel-Air/Holmby Hills which had sales of $18 million and $27 million, not unusual for this high-end market. Beverly Hills had one for $15 million, as did BHPO, and Brentwood had two at $10 million and one at $13 million in March.
One of the true stars on LA’s Westside was Pacific Palisades, a community I also cover, which had a total of $426 million in sales through March, which is 122% higher than they had in the same period in 2020. The other leaders in sale volume increases were Brentwood with $92 million ahead of 2021, followed by Bel-Air/Holmby Hills with $54 million plus, Westwood/Century City was ahead by $49 million, Beverly Hills by $20 minion and only BHPO down by $9 million compared to the first three moons of 2020. Also, has I have oft mentioned, these stats are from the MLS, and does not take into account any private sales.

Despite the dramatic turnaround in sales, buyers are still scrambling for quality properties, and you can be assured that these properties will most likely have multiple offers, and as I research for my clients, targeted homes are often sold before I can get the client out to see the property. So, buyers — Beware! Start early with an experienced agent such as myself and expect a challenging journey. Also, please know, this is the market is all over. I have some clients that are moving to Florida and are experiencing the same rapid, fast paced market there. Patience and tenacity are a virtue for both of us!

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Median sales prices keep doing the expected….
Nothing is more predictable when supply is down, demand goes up…at a price! Median sales prices are zooming upward in the communities I report on.

We are clearly ahead of the same first-quarter results from 2020, as median sales prices across the board continue their upward climb. Brentwood’s median sales price is 20% higher than 2020 at $3.462 million; Beverly Hills is up 15% at $6.475 million; BHPO is also up 15% at $3.202 million; Bel-Air/Holmby Hills is up 13% at $2.210 million and Westwood/Century is down, however, by 5% at $2.470 million. Pacific Palisades is up 12% at $3.291 million.

Median sales prices reflect that “median” only — half of the homes’ sales prices are below the median price, and half are above it. It is not the standard average. What I have noticed is that buyers are coming “armed” with all-cash offers. I agree that all-cash offers can have a definite advantage in today’s market — because sellers are not eager to wait for financing to be approved or long contingencies. As a result, buyers are waiving some of their contingencies, loan, appraisal, and or physical inspections Obviously this practice can be risky, but buyers want to place themselves on a level playing field with all cash buyers. At the same time, all cash buyers many times want the benefit of a discount which might be higher than a buyer with some or all of the normal contingencies. The seller’s decision can be made on the terms of the offer, and I have seen sellers choose a non all cash offer because the terms of the offer are better. My favorite lender, Simon Atik at Great Rate Affinity has a program whereby he can qualify a non-cash buyer as a cash buyer because they do a number of pre-approval steps in qualifying the buyer, that take a little longer to do, but it gives the buyer the advantage of being in essence an all-cash buyer. Not to worry we are still doing sales with non-all-cash offers… it is done all the time, but those buyers with $$ may have a definite advantage in today’s hotly competitive market. Let’s talk as to how you can get into the game!
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A word about interest rates…at our sales meeting this week, Simon discussed that we are currently still seeing low interest rates — 3.125% for a 30-year-fixed loan, although it is projected to be at 3.95% or 4% by the end of the year. The number of re-finance applications are lower; however, purchase applications are growing, which generally means multiple offers across the board. Lenders have let it be known; however, they are installing tougher requirements for second homes and investment properties as they believe that are at a higher risk. Simon also shared the information that the economic recovery we are experiencing is the fastest since 2014!

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Good news continues for high-end
For the high-end market on the Westside, we are far ahead of last year in closed sales. The number of closed sales of $5 million-plus through March 21, 2021, is 214, versus 130 at this time last year— up 65%. Of these, 65 are $10 million-plus, and there were 37 closed sales of $10 million-plus at this time last year, up 76%. Ten of these sales are $20 million-plus, and there were nine closed sales of $20 million-plus at this time last year.
We are still slightly down in the closed sales of $30 and $40 million this year. There are two closed sales of $30 million-plus this year, and there were five closed sales of $30 million-plus at this time last year. There is only one $40 million-plus sale so far this year versus two sales at this time last year.

What is also good news is that we have never seen so many pending sales. There are 106 pending sales of $5 million-plus and 65 of these are $20 million-plus and 10 are for over $20 million.

Of the current 10 sales of $20 million-plus, eight buyers are American, one is Indonesian.. The 10 sales of $20 million-plus are: four in Malibu, three in Beverly Hills, one each in Sunset Strip, Bel Air and Brentwood.

There is good news coming down our real estate path. With LA County opening up, unlocking mass attractions, including my favorite, the Hollywood Bowl, life seems to be better this Spring. Now all we need are April Showers. We need rain.

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Emerging trends in real estate
The COVID-19 pandemic has caused a mass disruption to the way people live and work and prompted sweeping economic fallout felt throughout the world according to the Urban Land Institute’s take on emerging trends in real estate. Global leaders are still coming to grips with the long-term impact to the real estate industry. While the Asian Pacific region appears to be leading the recovery, the U.S. is also posting growth to many of its real estate sectors and seeing some evolve to better compete in the post-pandemic world.

Here are a few of the trends highlighted in Urban Land Institute’s report on real estate trends that are on the radar for global real estate markets:

Real estate continues to attract capital. Low interest rates are fueling interest in real estate across the globe. “Most industry leaders interviewed for this report believe the inherent attraction of real estate income is even stronger this year than in pre-COVID times,” according to the ULI report.

Unknowns loom for the office sector. The office sector, however, is more difficult for real estate leaders to predict. The rise of remote working, the increasing concern for the health and wellbeing of employees, and the lessening appeal of long commutes in big cities could negatively impact leasing activity this year and next year. Many large firms could delay corporate decisions on office space or commit to a greater reliance on remote working. Many real estate leaders predict employees will eventually return to the office, even if in more of a “hybrid” working model.

ESG tops more agendas. The impact of carbon emissions from the built environment remains a pressing issue for more companies, and they’re placing a greater emphasis on environmental, social, and governance agendas. Though decarbonization and climate change have been rising up the agenda for years, it is only in the past 18 months that these issues have moved to the foreground of the industry’s thinking the ULI report notes.

Re-imagined retail. The physical brick-and-mortar retail sector has faced the increasing threat of online competition—even more so since the pandemic. But investors are not shying away from seeking out new opportunities in retail, particularly as they view some falling prices in the sector. As such, retail could be acquired and repositioned either as more usable retail formats or re-envisioned as something completely different, such as residential or urban logistics.

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A list you don’t want to be on — where termites are worse
Watch out in Miami, Los Angeles, and Tampa, Fla.: These places can be hotbeds for termites, according to a nationaltermite treatment company, 2021 Top 50 Termite Cities List. Los Angeles ranks #2, San Francisco #11, San Diego #12.

They report an uptick in termite treatments across the country over the past year. “With people spending more time at home in 2020, termites and termite damage were likely observed more frequently than in previous years,” They further say, “Parallel to this, 2020 held a record-breaking number of storms and hurricanes offering what termites need most in life—moisture.”

The wood-chewing insects have been blamed for causing costly damage to homes.

Property owners should beware that termites like to gravitate to wooden structures, such as porches and decks; firewood leaning against the house; soil that stays damp long-term from leaking faucets or water retention areas near the foundation; and dead trees or other landscaping near the house. Time to check out the ’neighborhood’.

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Cryptocurrency is creeping into real estate…
A major real estate company in Los Angeles is making a long-term bet on the growth of cryptocurrency. The company announced last week that it will start accepting bitcoin as form of a rent payment at its residential and retail properties.
“We believe that cryptocurrency is here to stay,” they said last week at a “Power Lunch” program. “We believe that bitcoin is the right investment for us. We’ve allocated a percentage of what would normally go into the capital markets into bitcoin.”

This Los Angeles based, privately held company is both investing in bitcoin and accepting it as a form of payment. It has partnered with Gemini, a cryptocurrency exchange and custodian. Properties under their brand include outdoor malls, luxury apartments, mixed-use properties, and more.
In a statement, the firm said that it is committed to bringing decentralized retail payment options to its guests through “uncomplicated, efficient, and safe transactions protected by blockchain technology.”
This philosophy reflects the thinking of a growing number of companies that are accepting cryptocurrency as payment, including Tesla, Morgan Stanley, and PayPal, among others.

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Demand for pools, hot tubs is…hot
Blame Covid -19. New in-ground residential pools saw a 21% uptick in 2020 in installation compared to 2019, a spokesperson for the Pool & Hot Tub Alliance, an industry research group stated.

This is historic growth for the industry—the next closest period was in 1983 with 16% growth over a much smaller base according to the Alliance.

Hot tubs are also in demand, with some areas reporting a 400% uptick. Manufacturers are reporting a six-month wait to fulfill hot tub orders. Pool & Hot Tub Alliance members report they’re already contracted out with new orders to fulfill even into 2022.

Since the pandemic, real estate professionals are reporting pools have become a major selling point. Pools also have become one of the most popular keyword searches on real estate listing sites.

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My world and welcome to it…..
It seems with the opening of the world; the real estate market is moving even faster than it has been. I have a new listing of a Canyon home in Bel Air Crest, and due to the timing of having the photographs taken and uploaded, it went on the MLS without the photos. Within 3 hours of it going on the MLS, I have already received three requests for showings! By the time you get this, the photos will be online, and who knows, we may already have an accepted offer! The listing price is $2,525,000 for this lovely 4/3.5 home of approx. 2916 Sq. feet with light everywhere and views!. Please let me know if you know someone who might be interested in seeing it. Don’t think it will last long.

I find myself in the position of once again training a new assistant, Doug, so please say “hello” when you have an opportunity to meet and speak with him. He has 10 years’ experience of selling real estate out of state and will be my mentee while he is being trained in the way of California real estate. I am also enjoying being a mentor to six (6) mentees all in different stages of beginning their real estate careers, one of whom just closed escrow on a 10-unit complex in Santa Monica. And got engaged to be married!

Speaking of the world opening up, have you found that the traffic in our beloved West Los Angeles is pretty much back to what it was pre COVID? They are still in the process of remodeling my office at Coldwell Banker in Brentwood, so until they are finished sometime in June (it was supposed to be last November!) I will continue to be working out of my home office. I must admit that I enjoy not driving as much, but very much enjoy getting out and spending time with friends and look forward to the time when my family will be able to visit here, or I can go there. In the meantime, please DON’T FORGET TO CONTINUIE WEARING THOSE MASKS, GET YOUR VACCINE IF YOU HAVEN’T ALREADY DONE SO, AND PRACTICE SOCIAL DISTTANCING.

Please remember that I am here for you for all of your real estate needs and or questions

carole@caroleschiffer.com – ceschiffer@gmail.com – 310 442-1384

The SchifferLine
Timely Real Estate News…………………….15 March 2021
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Sales catching up as Spring season begins
March did not exactly come in like a lion, but home sales are catching up to last year’s, and that’s good news. With nearly a full year of pandemic-selling conditions, the five communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Westwood/Century City and Brentwood — recorded over $548 million in sales through the first two months of 2021, off by just 2% over 2020, or $15 million shy of last year at this time.

Sales volume leaders through the first two months were Brentwood, up $46 million over 2020 at $160 minion and Beverly Hills up $6 million at $199 million through February. Beverly Hills Post Office sales was down $46 million, Bel-Air/Holmby Hills off $18 million and Westwood/Century City just shy of $6 million down.

Santa Monica, an area I also cover, was in the plus range, with $98 million sales through the first two months, up from $94 million in 2020.

There were some large sales in these communities — Beverly Hills had five homes selling for over $10 million, and two of the largest on the Westside in 2021 at $27 million and $36 million. Brentwood had two sales of $10 million and $16 million.

We have traditionally started slow out of the gate in previous years, but now that we’re really in an all-year ’selling mode’. The Spring selling season, which starts in March, will surely tell us what we might expect for the rest of the year. As you will read in the stories below, there is positive news coming with the Covid-19 infections and hospitalizations coming down and vaccinations increasing. Also, please always remember these numbers only reflect sales in the multiple listing service (MLS).

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Median sales prices continue upward push
While sales volumes for the first two months of 2021 were behind those of last year, median sales prices were still moving upward in the communities I report on. Beverly Hills median sales price was up 15% at $7.550 million; BPHO was up 13% at $3.200 million; Bel-Air/Holmby Hills was up 14% at $2.225 million, and Brentwood was up 22% at $3.650 million. Westwood/Century City was down 5% at $2.455 million. Santa Monica showed a strong increase of 32% at $3.437 million through February compared to 2020.

There were some notable improvements in comparing February 2021 to February 2020 — Brentwood, which is off to a fast start, the median sales price is up 34% for February, and Santa Monica is up 32% for the same period. But Bel-Air/Holmby Hills was down 42% for last month compared to February 2020. Both Beverly Hills and BHPO were up 3% for February 2021. As always, with the variance of some large sales each month, these numbers reflect those sale amounts.

So, what is this telling us? Lack of inventory is, of course, driving prices up in our market (as it is everywhere in the country), and this will continue for the balance of the year according to economists. Homeowners are going to be coming ‘out’ more now because they will be able to travel and visit areas where they might want to land next.

As the pandemic resides, real estate experts are pointing to a more robust housing market and increased inventory. But the ones hurting most these days are millennials, the largest home-buying generation in the U.S. today, are challenged with the rising home prices, but so long as we stay near the low mortgage rates we’ve enjoyed this past year, this could be a real plus for everyone.

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Near-record growth predicted for 2021 according to UCLA
The first quarterly UCLA Anderson Forecast of 2021 expects robust growth for the U.S. and California as the COVID-19 pandemic abates.

One year ago, the World Health Organization declared the COVID-19 outbreak a pandemic, and subsequent efforts to stop the spread of the virus led to an unprecedented decline of the U.S economy as non-essential in-person activities came to a halt.

For all of 2020, real GDP fell by 3.5%, the worst annual decline in more than 60 years. But the Anderson Forecast’s December 2020 report offered hope of a strong recovery, dependent on mass vaccinations. With vaccines becoming widely available, the March 2021 forecast now anticipates such a recovery, as well as the establishment of a new post-pandemic norm for the economy.

The Forecast noted for the economy, a waning pandemic combined with fiscal relief means a strong year of growth in 2021 — one of the strongest years of growth in the last 60 years — followed by sustained higher growth rates in 2022 and 2023.

Following the 3.5% decline in real GDP in 2020, the national forecast calls for 6.3% growth in 2021, 4.6% growth in 2022 and 2.7% growth in 2023. These rates of growth are considerably higher than the 2.3% rate the country averaged during the recovery from the Great Recession between 2010 and 2019.

The forecast expects real GDP to surpass its 2019 peak by the end of the second quarter of 2021 and to surpass the trend it was on prior to the pandemic in early 2022.

In its review on the California recovery, the leisure and hospitality sector will be the last to recover because of the depth of the decline in this sector and its reliance on international tourism. UCLA’s lead economist expects the recovery to come earlier in the business, scientific and technical services sector and in the information sector, owing to the demand for new technologies that support how we are working and socializing.

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Federal judge rules eviction ban unconstitutional
What could have serious consequences here in California, a federal judge in Texas ruled that the Centers for Disease Control and Prevention’s eviction moratorium is unconstitutional, a decision that could set legal precedent and have a sweeping effect on housing providers across the country. Under the moratorium, which President Joe Biden has extended through March, housing providers cannot evict tenants who can prove financial hardship due to the COVID-19 pandemic.

U.S. District Judge John Campbell Barker sided with a group of property managers and landlords who brought a lawsuit against the CDC, claiming the agency overstepped its authority by issuing the eviction ban.

“The federal government cannot say that it has ever before invoked its power over interstate commerce to impose a residential eviction moratorium,” Baker wrote in his decision. “The federal government has not claimed such a power at any point during our nation’s history until last year. … Although the COVID-19 pandemic persists, so does the Constitution.”

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Marriage or mortgage…we have an app for that!
Well, it isn’t exactly an app, but there is a new Netflix show that explores the pros/cons of getting married vs. buying a home. Is giving up the chance to make a down payment on a home better than having a dream wedding? These are choices for many couples who have contemplated this issue, well, forever.

Long taken up by columnists and financial planners, the “mortgage vs. wedding” question is now the subject of an entire show on Netflix. Marriage or Mortgage, which debut March 10, follows a real estate agent and a wedding planner in their efforts to win over 10 couples in a choice between an extravagant wedding or a new house.

The shows make every effort to not offend anyone — least of all the bride or her parents — and point out there are “options’, but in these days where home prices are soaring, causing down payments to soar as well, there is a strong argument to focus perhaps more on buying a home now versus spending lavish sums on a wedding.

The ladies point out that for hopeless romantics, a wedding instead of a mortgage is the ‘right’ choice, and the two show hosts point out that perhaps you can do both — scaling back on wedding costs and developing a home-buying/mortgage budget that will work for both parties.
What would you choose or recommend?

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New stimulus relief package to propel U.S. economy
The legislation—following trillions of dollars in federal aid last year and arriving amid rising Covid-19 vaccination rates — prompted economists surveyed by The Wall Street Journal in recent days to boost their average forecast for 2021 economic growth to 5.95%, measured from the fourth quarter of last year to the same period this year.

That was up from their 4.87% projection last month would be the U.S. economy’s fastest since a 7.9% burst in 1983. The analysts also lifted their forecasts for inflation and job growth from last month’s survey.

The new poll found they expected consumer prices would rise 2.48% by December from a year earlier and projected that employers will add an average 514,000 jobs a month over the next four quarters.

President Biden’s Covid-19 bill adds to considerable tailwinds that have already produced a faster-than-expected recovery from last year’s collapse in economic activity amid restrictions to contain the coronavirus.

These include roughly $4 trillion in spending that Congress authorized last year to combat the pandemic, easy-money policies by the Federal Reserve and—most important—an expected reopening of businesses and schools as the population is vaccinated against Covid-19.

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Prospective buyers know what they want…but hurdles ahead
The pandemic dramatically impacted how we view our living spaces — with remote work now fully embraced by millions forced from office buildings, we are taking ’stock’ of what works best for us now. Some wish to have more workspace or a gym or expanding living spaces outdoors.

Buyers are particular about the look and feel of their homes. They’re also looking to stretch out. According to Bank of America’s Homebuyer Insights, 86% of prospective homebuyers wish for more indoor space, and 64% want more space outdoors. Additionally, technology is a must-have with high-speed internet and strong cell service (56%) ranked as important features. Buyers also want proximity to essential businesses (51%) and recreational activities (44%).

Half of millennials, who make up a significant portion of today’s homebuyers, shared that they would make an offer on a home they had only viewed virtually. Moreover, 85% of people believe the way we view homes will be vastly different moving forward. Yes, indeed, the way we now perceive our living spaces has changed — for the better? For many yes, and for others, it’s too early to tell. When the pandemic is winding down and we get back to ’normal’, we will no doubt be living in a ’new normal’.

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Snowmads? Zoombirds? New breed of movers
We’re used to “snowbirds” — those ’northern folks’ who travel down to sunny Southern California starting in October and heading north in April. But the pandemic has created new ‘breeds’ of wanderers to our shores. As remote work grows during the pandemic, so has the flexibility to move more freely.

For some remote workers, that has meant taking their laptops and heading to home rentals along the beach. Some are testing out new spots of the country by booking Airbnb or short-term rentals in warmer destinations during the winter.

The short-term rental site Vrbo reports these “snowmads” are often targeting vacation homes in warmer climates like Arizona, California, and Florida—where long-term stays have been stretching 15 days or more.

This pattern of heading to warmer climates in the winter was once reserved mostly for retirees. Now, it is becoming an alluring possibility for the growing remote workforce who are no longer tethered to an office.

Another term catching on to describe these groups is “Zoombirds.” We’re all too familiar with “Zoom” meetings, which allows any worker anywhere to pop into a work conference no matter where they reside. I, for one, can easily tire of having several Zoom meetings in a day. But that is the way it is today…and who knows how this will end? I think Zoom-ing will be with us for a long time.

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Have you noticed?
With more having received their vaccine, (not near enough, but more is on the way), there are more folks out and about. Crowds and lines for folks just waiting for an available gas pump. People are feeling a little more confident about the direction we are headed in. I hope that they/we are all safe, continue to social distance, wear our masks, and keep us out of another wave of more infections.

Celebrations Coming Up!

St. Patricks’ Day is the 17th of March. It has a great deal of historical and religious significance for many with a large shot of fun thrown in for all with parades, green beer, and “the wearing of the green” for all Irish, even just for the day. Hope you celebrate responsibly and carefully.

The 27th of the month brings Passover. Another time of religious and historical significance. Traditionally families get together to enjoy seders which includes the eating of symbolic foods and prayers. For all of you who celebrate may you have delicious seders and again celebrate responsibly and safely

We are all in the middle of Lent, with Easter and the end of Lent coming up the 5th of April. Ramadan is a way off and runs from the 12t of April to the 12th of May

What is my business world like these days?
First of all, I want to thank those of you who expressed interest in the zoom call I had organized on the issue of Homeowners Insurance. I postponed it as it appeared that there were not a many of you who expressed interest in getting more information on this important issue. If you would like to speak with Robert Feldman who is the person I had made the arrangements with to conduct the call, please let me know and he will speak with you individually.

Coming up in future issues of the Schiffer Line, I will be having “Ask the Expert” articles on various aspects of real estate with the topics ranging from explaining different architectural styles, to what is new and “hot” in home decorating trends, economic and loan trends. If you have a specific topic you would like addressed, please let me know.
carole@caroleschiffer.com or ceschiffer@gmail.com or 310 442-1384

I have some interesting clients in that I will be working with that live and work in various places around the world. They are both purchase and lease clients and live in Mexico, and the Middle East. It will be fun getting to know them better and learn more about their respective cultures!

In the meantime, please do not hesitate to reach out to me for any of your real estate needs or questions. I am just a phone call away.

Stay safe and Happy Celebrations – whatever they might be!

The SchifferLine
Timely Real Estate News…………………….1 March 2021
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Please don’t forget
I am hosting the presentation on the homeowner’s insurance situation on the 10th of March. Please contact me and I will be more than happy to send you the link. ceschiffer@gmail.com

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Southern California prices and sales jumped in January
While home prices were surging around the U.S., prices, and sales they also jumped in Southern California’s six-county region this January.

The six-county region’s median price rose 13% from a year earlier to $599,500 last month, according to data released Monday by data firm DQNews. Sales also increased 13.5%.

The data shows the hot housing market has extended into the new year. January marked the fifth consecutive month in which sales increased by double digits. It was the sixth straight month that saw a double-digit increase in the median price — the point at which half the homes sold for more and half for less.

Real estate agents and other experts say several factors are behind the competitive market during the pandemic. One is that the cost to borrow has plunged, with the average rate on a 30-year fixed mortgage dropping below 3% for the first time ever.

In Los Angeles County, median prices rose 12.6% to $690,000 while sales climbed 14.3%. Orange County media prices rose only 6.7% to $799,000, but sales rose 22%.

Some experts predict home prices will rise less this year than last year, because values can only get so high. Stay tuned!

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Home prices in U.S. skyrocketed in December
Home prices continue to march upward. S&P/Case-Shiller, a national real estate tracking firm, confirmed home prices continued their steady upward trend fueled by inventory shortages and low mortgage rates.

In December, home prices in the U.S. increased by 10.4% year over year to the monthly S&P/Case-Shiller U.S. National Home Price Index, up from 9.5% growth in November. The trend of accelerating prices that began in June 2020 has now reached its seventh month and is also reflected in their 10- and 20-City Composite Index (up 9.8% and 10% respectively).

The market’s strength continues to be broadly based: 18 of the 19 cities for which we have December data rose, and 18 cities gained more in the 12 months ended in December than they had gained in the 12 months ended in November. Historically low inventory all across the country is leading to the kind of fast-paced value appreciation observed for months as buyers try to obtain a limited number of available homes by making higher offers. Phoenix, Seattle, and San Diego saw the greatest increases in home prices at 14.4, 13.6 and 13%%, respectively.

“Persistent buyer demand amid severely undersupplied housing market has undeniably pushed home prices to new highs in 2020,” CoreLogic Deputy Chief Economist Selma Hepp said in a statement last year. “In looking ahead to 2021, pressure on home prices will likely remain strong until either mortgage rates increase or more homes are available for sale,” Hepp stated.

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Home sales could be 20% if they were available
That’s a big “if” — the answer, of course, is that the inventory simply isn’t there. But according to Lawrence Yun, Chief Economist for the National Association of Realtors, home sales could easily be 20% higher if more homes were for sale.

Existing-home sales—completed transactions for single-family homes, townhomes, condos, and co-ops—rose 0.6% in January compared to December 2020 and are up nearly 24% over a year ago, the NAR reported last Friday. All four major regions of the U.S. recorded double-digit annual gains for home sales in January.

“Home sales continued to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market,” Yun says. Seventy-one % of homes sold in January were on the market for less than a month, according to NAR’s report.

While most of the economy has felt the toll of the lingering COVID-19 pandemic, the housing sector has remained a bright spot, Yun adds. Sales remain high and home prices have continued to rise, adding equity to home sellers.

According to Yun, home sales are continuing to play a part in propping up the economy. With additional stimulus packages likely to pass and several vaccines now available, the housing outlook looks solid for this year. Yun predicts employment to increase, which could spur even more homebuying over the coming months. He predicts existing-home sales to reach at least 6.5 million in 2021.

Some key stats — Home prices jumped 14% over a year ago…Inventory was down, however, by 24%…. First-time buyers comprised 33% of sales in January, up slightly from a year ago when it was 32%.

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44% of Milliennials would buy home from photos only
The ‘virtual real estate world has taken hold as a new study shows 44% of millennials would buy a home now from a photo alone. This just shows how far this generation is willing to go to become homeowners, according to Clever Real Estate, a national real estate research firm.

From crushing student loan debt, stagnant wage growth to booming home prices, there is plenty of obstacles preventing millennials from pursuing homeownership. However, the pandemic and the ensuing dive in interest rates pushed this group to leave the sidelines and make a purchase before rates and prices rise again.

Clever Real Estate’s latest market survey of 1,000 millennials revealed just how committed they are to homeownership, with 30 % of respondents saying “COVID-19 pushed them to begin house hunting earlier than they originally planned.” In addition to upping their homebuying timeline, a majority of millennials were willing to purchase a fixer-upper (71% or could be persuaded to purchase a home sight unseen (80%).

For those willing to make an offer sight unseen, they would need someone to tour the home on their behalf (59%), find a listing at a ‘great price point’ (51%), or find a new build with no previous owners (39%). Respondents also said sellers would need to offer repair credit, perhaps cover the closing costs, or pitch another concession to sweeten the deal (39%). .

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Fed stays the course during pandemic
Jerome H. Powell, the Chair of the Federal Reserve, told lawmakers that the economic rebound from the pandemic recession still had further to go and reiterated that the central bank planned to keep up its growth-stoking policies, which include rock-bottom interest rates and large-scale bond buying.

“The economic recovery remains uneven and far from complete, and the path ahead is highly uncertain,” Powell said in prepared remarks he delivered to the Senate Banking Committee last week.

“Although there has been much progress in the labor market since the spring, millions of Americans remain out of work,” Powell stated

Unemployment has come down sharply after surging last year, but the official job rates remain at nearly double its February 2020 level and probably understates the extent of weakness in the labor market.

Likewise, consumer spending has bounced back but the service sector remains subdued. The Fed slashed interest rates to near-zero last March and is buying about $120 billion in government-backed bonds each month, policies aimed at fueling lending and spending.

Congress and the White House have also provided support in the form of enormous spending packages, and Democrats are now pushing for another $1.9 trillion in relief for workers and businesses.

Some economists have warned that inflation could take off as vaccines allow consumer activity to pick up and as the government pumps money into the economy, but Fed officials have generally played down those concerns. Powell said that inflation dynamics generally do not “change on a dime” and that if unwanted price pressures arise, the Fed has the tools to push back on them.

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Did you miss the Los Angeles Alligator Farm? Probably!
In Los Angeles, eccentric residents aren’t difficult to find. Few stand out as much as “Alligator Joe” Campbell and Francis Earnest, the exceptionally unique Angelenos who ran an alligator farm in the early 20th century.

At the California Alligator Farm, which operated in the Lincoln Heights neighborhood of Los Angeles between 1907 and 1953, visitors forked over a quarter to see more than 1,000 gators of all sizes and ages. The farm had 20 ponds for the trained alligators, and the animals performed daily in front of large crowds.

In a 1910 article, it describes how the alligators were captured, how the eggs were incubated and even how the animals exercised. “With a strong line and a big steel hook baited with pork, it is as easy to catch an alligator as to catch some trout with a minnow,” Inkersley wrote, “but you must know what to do with your alligator when you have caught him.”
Tiny alligators were reportedly sold to park guests, who would also pay to ride them, watch them ride down slides, feed on live chickens and wrestle with people.

Despite signs admonishing visitors not to “throw stones at the alligators, spit on, punch or molest them in any way,” adults and children regularly handled alligators at the farm. Some were even stolen by college pranksters.
Eventually, visitors to the Alligator Farm dwindled, so it was moved to nearby Buena Vista and then to Florida. Though it’s been a half-century since alligators roamed the neighborhoods of Los Angeles, perhaps the unbridled, over-the-top, rules-be-damned spirit of the bizarre park lives on within the city itself.

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Breaking News
After much frustration, I finally got m appointment for my second vaccination. I got caught up in the delay of the shipment of the materials from the east coast because of the horrible snowstorms they had last week. My date is the 25th. I must admit that I have mixed feelings about getting the vaccine: not looking forward to the reaction, but oh so glad to have it be over with.

As some of you may know, both my assistant & I have been working out of my home office since the beginning of August while they remodel the office and rework the space as Coldwell Banker, like so many other businesses understand that the large, beautiful space we have on the top floor of the Union Bank building in Brentwood is being underutilized as more and more agents have been working at home, pre-Covid so they will now be sub leasing a small portion of our space. Sometime in mid-March or so, my assistant Janelle & I will be moving back into the CB space. Once that happens, I will begin the fun chore of replacing the carpet in my house and re-panting the interior. Oh Joy!!!!!

Keeping Busy
I continue to keep busy with buyers, and still looking for more listings. In addition, I have 3 mentees, including my assistant Janelle so training them also keeps me on my toes. Two of the three are gearing their buying prospects towards income property, one in Santa Monica exclusively. I love this as I generally don’t concentrate on income property, and Janelle lives in Westlake Village which is also a little different perspective for me in working more of the San Fernando Valley… …. So, bottom line, the teacher is also the student, and I love learning new things, and also know that this newfound knowledge is great for me with my clients.. If you have any interest in income property or the San Fernando Valley, please do not hesitate to let me know how I can assist you.

Local news update
The two primary battles facing the Westside other than the on-going homeless situation are the proposals for the rapid transit system that would take traffic from the Valley to LAX.

The other day the Los Angeles Times came out with an editorial against one of metro rail formats which is one of the formats being considered. Those studies continue to take place. The other battle is the potential construction of the Berggruen Institute on the last undeveloped acreage in the Santa Monica Mountains immediately adjacent to the Mountaingate community. Both of these programs are on-going studies, and in the case of the Berggruen project is in court and both will probably be going on for the next number of years. If you want more specific information please contact me.. ceschiffer@gmail.com

Please let me know how I can assist you with any and all of your real estate needs. I am here to help you.

As always
Stay safe!