The SchifferLine
Timely Real Estate News……………………15 September 2021

*************************************************************
Another remarkable month…. a real sendoff for Fall
If anyone was taking August off for vacation, it appears that most went on a “Shop and Spend” trip right here on the Westside. And spend they did! Another record month for home sales in the five communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Westwood/Century City, and Brentwood. I also cover Venice, which had a spectacular August as well.

Total sales through August 2021 for these five communities is $3.950 billion, which is 72% ahead of last year at this time — $2.305 billion. These sales numbers are best appreciated when you look at each of these community’s contribution to the sales totals — Beverly Hills was up $537 million over 2020 by August…Beverly Hills PO was up $244 million, Bel-Air/Holmby Hills was up $232 million, Westwood/Century City was up $216 million, and Brentwood was up $443 million in total sales through the end of August. Venice sales were up 69% to $413 million vs. $244 million a year ago this time.

The numbers are quite frankly, numbing…we just haven’t seen this kind of activity, and through a pandemic at that. And yes, we’re all still looking over our shoulder, wearing masks, encouraging all to get vaccinated. How long will this go on? But the simple explanation is that we are seeing an increase in supply that is allowing for more units sold, but prices just are increasing every month, too. And no one is crying “uncle” now — we all seem to be riding this wave.

***********************************************************
Median sales prices inch higher, too
While we have seen an extraordinary increase in sales volumes, we are seeing mild upswings in median sales prices. Nothing comparable to increases in sales, prices continue their steady climb. Beverly Hills, again, leads the way with a median sales price of $7.300 million a 15% increase over last year at this time. BPHO was up 9% at $3.332 million, Bel-Air/Holmby Hills was up 23% at $2.818 million; Westwood/Century City was up to $2,646 million, a 4% increase, and Brentwood was up 21% to $4.057 million. Venice median prices were up just 2% to $2.400 million. Let’s be realistic… the prices are up, but in looking at the sales report for each community, the median prices are once again skewed by a number of high prices which obviously throws all of the numbers off. For example, in Beverly Hills there were 7 sales over $6,000,000. Beverly Hills Post Office had 7 sales over $6,000,000 – In Bel Air there were 4 including one for $27,000,000, in Brentwood there were 5 including one for $65,000,000, and in Westwood 4 for $6,000,000. These sales amounts are definitely ones which will skew the stats.

Looking back to a year ago — while we were settling in the trenches fighting Covid-19 — we have made quite a recovery. All these communities have made significant strides in overcoming an unresponsive market in 2019, as prices moved up across the State during the past eight months. For example, Beverly Hills median sales price for this past August was up 53% compared to August 2020. BHPO was up 19% over last year, Bel-Air/Holmby Hills was up 21%, Westwood/Century City was up 13%, and Brentwood was up 25% over August 2020. Venice was up only 1% over August 2020

There is no question that we are busier than ever. My business took off at the beginning of the year and hasn’t trailed off.

***********************************************************
Pending home sales dipped in July
Always a bellwether for future sales, pending home sales dipped modestly in July, noting two consecutive months of declines, according to the National Association of Realtors’ Pending Home Sales Index. Only the West region registered a month-over-month gain in contract activity, while the other three major U.S. regions reported drops. All four regions saw transactions decrease year-over-year.

Pending home sales declined 1.8% to 110.7 in July. Year-over-year, signings fell 8.5%. “The market may be starting to cool slightly, but at the moment there is not enough supply to match the demand from would-be buyers,” said Lawrence Yun, NAR’s chief economist. “That said, inventory is slowly increasing, and home shoppers should begin to see more options in the coming months.

“Homes listed for sale are still garnering great interest, but the multiple, frenzied offers – sometimes double-digit bids on one property – have dissipated in most regions,” Yun said. “Even in a somewhat calmer market, a number of potential buyers are still choosing to waive appraisals and inspections.”

As of July, 27% of buyers bypassed appraisal and inspection contingencies. By refraining from these evaluations, in most cases, buyers are looking to accelerate the homebuying process, according to Yun.

***********************************************************
Remote work. Another two years? Possible
The Delta variant has thrown a wrench in our plans to get back to the office, well, at least for some of us. The longer that Covid-19 keeps people home, the harder it may be to get them back to offices.

With the latest wave of return-to-office delays from Covid-19, some companies are considering a new possibility: Offices may be closed for two years. That is raising concerns among executives that say the longer people stay at home, the harder or more disruptive it could be to eventually bring them back.

Many employees have developed new routines during the pandemic, swapping commuting for exercise or blocking hours for uninterrupted work. Even staffers who once bristled at doing their jobs outside of an office have come to embrace the flexibility and productivity at home over the past 18 months, many say. Surveys have shown that enthusiasm for remote work has only increased as the pandemic has stretched on.

“If you have a little blip, people go back to the old way. Well, this ain’t a blip,” said Pat Gelsinger, chief executive officer of Intel Corp., whose company has benefited from the work-from-home boom. He predicts hybrid and remote work will remain the norm for months and years to come. “There is no going back.”

But there are other impacts of continued remote work, too. Not all positive for employees. Employers have been separating those who want to stay at home from those who want to come back to the office — those who want to continue their “quality of life” may just be losing out to those willing and anxious to come back. Promotions, work assignments, pay increases, and overall integration into the company’s culture and vision attract those wanting to return.

All major corporations are dealing with these issues now, and the continued pandemic is having a major impact on worker behavior and values. One thing that has developed during this time — an increase in building outdoor kitchens and living spaces. That industry is booming. The number of colleagues in my office has grown during the pandemic, but I can honestly say that while I am gladly back in my office, approximately 60 % of my colleagues are still working at home. I cannot remember the last time I have seen some of them, seems like years. When there are more of us in the office, and we feel the energy of voices and everyone it is really fun. Hopefully more and more will return to work in the office proper as we win the war against Covid & its variants
.
I’m happy to be back at the office — it’s really where I belong and enjoy being. Seeing my associates and getting the ‘feel’ of our team and camaraderie is well worth it.

***********************************************************
Americans want bigger homes
The classic line from Jaws might just apply…” you need a bigger…house.” Americans are into that now.

Bigger and spread-out housing is more popular now than it was two years ago. That preference cuts across political divides, as well as demographic categories based on race, education and age
Americans’ preference for bigger homes appears to have grown over the last couple of years, while at the same time nearby amenities have become less essential, according to a new report from the Pew Research Center.

The report is based on a survey conducted in July that asked more than 10,000 people about their housing preferences. The findings indicate that today 60% of Americans prefer communities in which “houses are larger and farther apart, but schools, stores and restaurants are several miles away.” That is up from just 53% who said the same thing in 2019.

The report goes on to note that a preference for larger and more spread-out housing has ticked up in multiple demographic categories. For instance, 73% of Republicans and Republican-leaning independents want larger and more dispersed homes, up from 65% in 2019. But Democrats have also seen a similar shift; today, 49% of them want larger and less amenity-adjacent homes, which is up from 42% in 2019. The same goes for age, race and education, with every category seeing a notable rise in people saying they want bigger homes. Some of these preferences tie into how we use our homes today due to the pandemic. From working at home more, we want our homes to serve a variety of uses, home, office, classroom, etc.

***********************************************************
Corporate buyers edging out home seekers
While you’re standing line to present your offer, the corporate home buyer doesn’t wait in line…they are swarming over a property before it even comes on the market. What is fueling this corporate-home buying hysteria? $$$$

Companies snapped up a record number of residential properties in the second quarter. Soaring home prices and rents are fueling real estate companies’ appetite for houses, adding unwelcome competition for many would-be home buyers.

The number of residential properties bought by companies or institutions hit an all-time high of 67,943 in the second quarter, according to a national real estate tracking firm.

That is a more than twofold increase from a year earlier, when the pandemic temporarily stymied the real estate market. It also represents 15.9% of all the properties sold in the April-to-June quarter, or just below the record high of 16.1% share of sales in the first quarter of 2020.

The data, which goes back to 2000, include all residential property types, including apartment buildings and condos. It excludes purchases by small, individual investors.

When looking at only single-family home sales, companies accounted for 16.1% of all purchases in the second quarter…ten years ago, it was 8.4%. With corporations competing against individual families, they are coming with cash and short escrows. That is tough to compete against. My advice: Get real estate counsel early…get pre-qualified and do the research. I can help you do that. That’s what I do! My lender has a program for buyers whereby you can qualify as an all-cash buyer even though you are getting a loan, thus putting you on an even level with all cash buyers. It is called Approval Express. PLEASE CALL ME SO WE CAN DO THIS TOGETHER – 310 442-1384.

***********************************************************
A jewel next to an education and culture icon
If your GPS isn’t working, you won’t find Westwood Hills easily. It’s hidden. It’s tucked away from the hustle/bustle of the Westside, in its own private enclave — filled with mature, large trees overhanging its quiet streets that wind over the real estate that UCLA didn’t acquire when they started their campus in 1919.

For one thing, Westwood Hills is “hilly” — yes, that is how it got its names. But that is the good news. Hilly also means — in residential terms — streets go up and go down, turn to the left and right — nothing linear or straight, which gives Westwood Hills its charming, out-of-the way seclusion and paradise, all in one small area. You really feel that you are in the ‘hills.

Westwood Hills is noted for its quiet elegance. Comprised of lovely and gracious homes that occupy a few acres west of UCLA, residents have easy access to all of the campus facilities including it concert halls and theaters. Westwood Village is next door, and just minutes away from the rest of the Westside and the 405 freeway.

This small community from the start was a haven for those who wanted a quiet but intimate neighborhood. Each street features meticulously cared-for homes, beautiful landscapes, and tall, mature trees that send a message: This is one, classy place to live, which features homes designed by world-famous architects that reflected the tastes of appreciative owners who wanted the only the best for their private world.

***********************************************************
What is keeping me so busy?
One of my favorite things to hear or see is the email or phone calls is “I want to buy a house “or please come over, “I want to sell my house and want your help” This is music to my ears, and I have been receiving a number of those calls and emails. THANK YOU ALL VERY MUCH!!!!!!

As most of you know, a number of the insurance companies that offer homeowners and fire insurance in the State have withdrawn from offering those policies throughout the State (I mentioned this in the last Schiffer Line). Unfortunately, one of the communities in Moutaingate was impacted by this situation and caused one of my listings to fall out of escrow. Fortunately, the situation has been resolved, and my listing is back on the market, and I am getting a lot of activity which will enable it to go back once again into escrow soon. It is a lovely unit with light streaming into it from the floor to ceiling windows offering a partial view of one the golf courses at the nearby country club. It is 2 bedrooms, plus den and 2.5 baths.

In Bel Air Park in the next few days, you will be able to see my new listing of a gracious home with a lovely view, with four bedrooms four and a half bedrooms, plus an additional bedroom suite and living room downstairs making it a great guest area. The large yard offers plenty of room for a pool and vegetable gardens, etc. I also have another new listing coming on the market in the next few weeks in Westwood Hills (I have not seen it yet).

I also have a lovely 3 bedroom, 3 bath, plus den available for lease in Bel Air Crest. It has been staged and is ready for its new resident.

In addition, I am also working with a number of buyers who are looking for that “special” place to call home.
I love keeping busy, so bring it on.. if you are thinking of selling your home, looking for a new home or know someone who is…. please add to the music in my ears… ceschiffer@gmail.com or 310 442-1384

In the meantime, please do take care of yourself, be safe, get that vaccine and ENJOY YOUR LIFE!

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
©2021 Coldwell Banker Real Estate LLC. Coldwell Banker is a registered trademark licensed to Coldwell Banker Real Estate LLC 234567An Equal Opportunity Company. Equal Housing Opportunity. Owned and Operated by NRT LLC