Dear Bel Air Crest Neighbor:
Welcome to Spring!
Warm weather and blooming flowers arrived just as Spring opened its doors, and
the increasing number getting their vaccines, which hopefully helps all of us spring into new and renewed life.
As we enter our second year of the pandemic, we find our housing market conflicted — nationally, prices are zooming upward — up 14.4%, but the number of homes sold in the U.S. fell 3.6%. And in Southern California the median sales prices reached an all-time high, jumping nearly 15% from a year earlier, but sales surged 19.1% from February 2020 in Los Angeles County. What is challenging these impressive numbers is that homes are selling faster than ever, and buyers had 13% few options to choose from. Lower mortgage rates are still driving this home-buying onslaught in Los Angeles County, where we have seen a turnaround also in the higher-end market (homes selling for over $5 million) where sales and prices are up significantly over previous months compared to 2020. (See the next SchifferLine for our High-End Sales Report.)
The competition is keen everywhere that I am seeing on the Westside — multiple offers on homes that are competitively priced, and 35% of homes sold are now being sold for over listing price — a clear indication that demand continues unabated. The same situation exists with leases as well. I have a client who is temporary moving here from Mexico City, and every house he likes is gone before he can come here to see it.
So, let’s see what is happening in Bel Air Crest. As is typical all over, our inventory is down. Currently there are three (3) homes on the market. All of them are Custom homes. There are two (2) homes in escrow, one each of Canyon and Custom, and all of the (3) homes that closed escrow this past quarter were Canyon homes. Conversely, for the first quarter of 2020, there were eight (8) homes available for sale, 4 Canyon and 4 Custom. Three homes were in escrow, one of which was a Custom home, and there were ten (10) closed escrows, four (4) of which were Custom homes. In about 2 weeks I will be marketing a lovely Canyon home. At the moment we are getting it ready for its beauty shot. It is approx., 2916 square feet and has a lovely view. Please watch for it. carole@carole@caroleschiffer.com
The external issues we have been monitoring Vs a Vs the proposal to create a high-speed monorail system from the San Fernando Valley through the Westside to LAX continues to ramble along as does the proposal for the construction of the Berggruen Institute. Both of these proposed projects have a fair amount of opposition so we shall see how each of them progresses. I will keep you abreast of what is happening.
I have so much gratitude for all of you and the life we live here in our lovely community. However if you are taking of selling or perhaps wish to purchase something else, please know that I am here to assist you.
Cordially,
Carole
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.
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.
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!
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.
seeing some evolve to better compete in the post-pandemic world.
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.
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.
company announced last week that it will start accepting bitcoin as form of a rent payment at its residential and retail properties.
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.
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.
YOU HAVEN’T ALREADY DONE SO, AND PRACTICE SOCIAL DISTTANCING.
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.
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.
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.
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.
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.
that employers will add an average 514,000 jobs a month over the next four quarters.
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%).
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.
Have you noticed?
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.
Please don’t forget
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.
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).
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.
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%).
“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.
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.”
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!!!!!
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
On Wed the 10th of March at 7:00 pm I will be hosting a Zoom call forum from an expert in Homeowners Insurance. If you wish to join us and send me your email address so I can send you the link. There are still a great number of people who are being told their insurance is being cancelled. He can help. Please send your information to… 
Sales volume for January for the five communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Westwood/Century City, and Brentwood — was $202 million vs. $305 million, down 33%. Each of these communities were down, with BHPO off $43 million in sales volume, Brentwood was off by $26 million, Bel-Air/HH down $20 million, Westwood/CC was down $14 million, and Beverly Hills was only off $8 million in sales volume compared to January 2020. It is a bit surprising as the stock market was zooming upward after the start of the year, but we will no doubt hear more after the first quarter reports.
High-end sales had a record year (homes selling for $5 million-plus) on the Westside, but Beverly Hills was off 7% from its previous high at $5.212 million for January…Brentwood was down 11% at $3.627 million and Westwood/Century City was down 3% at $2.520 million.
he latest data underscores how the home-price rally, which over the years has played out in distinct pockets such as Idaho or across parts of the Sun Belt, has become much more widespread and continues to gain momentum. In the fourth quarter, 161 metro areas posted double-digit-percentage price increases, up from 115 metro areas with double-digit gains in the third quarter.
through low interest rates and hefty asset purchases, stressing the labor market remains stunted by the pandemic.
Here are some simple ideas you might follow— 1) Make a Date Night First — you need a plan, so pick a date in the future that is ‘free’ where both partners are not frazzled with heavy work day loads.…2) Consider each other’s feelings and experiences — Since money can sometimes be an issue, pick a ‘date’ that isn’t going to create a hassle by causing the other to feel uncomfortable…like a movie and dinner afterward, or a dinner at your spouse’s favorite restaurant. In their opinion it is truly is not how much you spend but how you spend it. 3) You don’t have to it all in one date — You can spread it out. Their best advice is to ’talk’ about dating and find out what ’they want to do’ — perhaps you can plan a weekend program — half on a Saturday, the rest on Sunday…. visiting a museum one day, picnic in the park the other…be creative. 4) Make it a priority — If you bring up the date night concept, be prepared to follow through. Don’t believe the other spouse hasn’t already put this into their memory bank — the worst you can do is not following up. And 5) Take action — be creative with your budgeting — think outside the ‘date box’ and perhaps go back in time when life was simpler, and yes, less expensive. The key experts have concluded that dating in a marriage or long-term relationship is about having fun — for both parties. During these pandemic times, we have less choices and money can be a challenge, too. Talk, work it out, and have fun!
At 38%, millennials—adults born from 1981 to 1996—represent the largest share of home buyers in the U.S., according to a survey by the National Association of Realtors. According to the NAR survey, it is not uncommon for millennials, who would normally be focusing on starter homes in lower-priced markets, are now jumping into multi-million homes in high-priced markets.
A home being equity-rich means that the combined estimated amount of loans secured by the property is 50% or less of the estimated market value. In short, it means homeowners themselves have accumulated at least half of the equity in their homes. This is one of the primary reasons when buyers say they “are waiting for the market to collapse” are wrong. Because there is so much equity in a number of homes, and this includes condos and townhouses, owners are not likely to walk away from that equity and allow their properties to go into foreclosure. For the most part, they will sell their properties instead.
the late 1800s, which featured closets 2.5 ft deep and 6 ft. wide. But as their utility and benefits became wider known, closets became standard in the housing boom following WW2. Fast becoming entrenched in housing plans, closets took on new meaning — walk-in closets, sectionalized for shoes, apparel, accessories. Companies were formed to create or re-do closets. Architects became more sensitive to ’stuff’.
can assist you in that regard.
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