Happy Holidays everyone…
It is that time of year for us to celebrate…even in these pandemic times, we need to count our blessings and cherish our family and friends. With so many holiday traditions going virtual, this is all so new for us. There are fun things we can do…having a Zoom Holiday party is probably on your list. How about a contest on facetime or zoom where you dress up as your favorite holiday song, and everyone has to guess what/who you are, I know what I will be dressed up as, what about you? Our Thanksgiving Zoom call was so successful, we are doing it again, and are opening our presents together! However you celebrate the holidays I just want to wish you all the very best for the New Year!

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Get ready for the Roarin’ 20s….so says UCLA
UCLA economists issued an optimistic forecast the other day, predicting the U.S. economy will experience “a gloomy COVID winter and an exuberant vaccine spring,” followed by robust growth for some years. Almost sounds like the Farmer’s Almanac.

“The ’20s will be roaring, but with several months of hardship first,” according to the quarterly UCLA Anderson Forecast. “These next few months will be dire, with rising COVID infections, continued social distancing, and the expiration of social assistance programs.

The Forecast, which assumes mass vaccination of Americans will take place by summer, predicts that annualized growth in the nation’s gross domestic product will accelerate from a weak 1.2% in the current quarter to 1.8% in the first quarter of next year, then to a booming 6% in next year’s second quarter and consistent 3% growth each quarter thereafter into 2023.

“With a vaccine and the release of pent-up demand, the next few years will be roaring as the economy accelerates and returns to previous growth trends,” wrote Leo Feler, a senior economist with the Forecast. “We expect a surge in services consumption and continued strength in housing markets to propel the economy forward.”

California’s recovery will ultimately look similar to the U.S. trajectory, the Forecast predicts. Let us hope this all comes true…wouldn’t that be a relief!!!

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With this positive outlook…. challenging times still ahead Despite this positive outlook, there will remain challenges regardless how effective we are with the vaccine and getting people back to work. For example, the Forecast states there will continue to be a dearth of affordable housing along with wildfires, power shutoffs and the working-from-home trend could push more folks to move out of the state even if their employers remain.

Even if the state builds more homes, commercial construction is unlikely to revive soon. If the higher rates of working-from-home and online shopping persist to a moderate extent after the pandemic is over, we’ll be over-supplied on office and retail space.

There may be little demand for additional commercial investment, at least in urban cores. State and local construction is likely to take a hit as state and local governments reduce infrastructure budgets in response to lower tax revenues and the need to replenish rainy-day funds.

Even after a vaccine takes hold, the UCLA Forecast predicts, for better and worse, some parts of the economy will never be the same. I do also want to point out, that the Forecast did not duel on the potential impact the also projected impact forecloses and mortgages that were put aside might have on the market. We shall have to see how that plays out.

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Westside sales catching up as 2021 approaches
We haven’t seen the late-year push we experienced in 2019 when sales volumes overcame early-year doldrums, but for the five communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Westwood/Century City, and Brentwood — sales volumes have inched closer through November, with a total of $3.426 billion, down just 5% from 2019 at this time. Last month we were short by 10% through the first 10 months of 2020, so we have sliced our deficit by 5%.

The big winner in sales volume increases was Beverly Hills Post Office, which gained some $230 million compared to the first 10 months in 2019, but the other areas were behind with Bel-Air/Holmby Hills off by $249 million and Beverly Hills down $120 million for the year in sales volume. In the last week or so, a number of mega sales of over $60,000,000 have been reported in both the Beverly Hills Post Office and Bel Air. These sales will be reflected in my Annual Report which I will be sending out after the first of the year.

For Malibu and Malibu Beach, sales volumes have been exceptionally strong, logging in over $1.194 billion in total sales through November 2020, compared to just $662 million in 2019, for an 80% increase.

We’re seeing an increase in inventory, but at the lower price points, and buyers are still anxious to find quality housing in safe neighborhoods and communities, for which our Westside prides itself.
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Median sales prices continue their climb
The Westside’s continuing median sales price continue to increase across the board as we near year’s end. This isn’t new news…it has happened for most of 2019 and 2020, and across the country. With inventory being squeezed in many areas, demand has accelerated price increases combined with low mortgage rates, we find that home prices have continued their accent through November.

Home median sales prices have moderated somewhat — Beverly Hills is up 4% through the first 11 months at $6.475 million; BHPO is also up 4% at $2.950 million. Bel-Air/Holmby Hills moved up 3% to $2.230 million, Westwood/Century City was up 7% at $2.360 million, and Brentwood was even for the past 10 months at $3.233 million.

As Malibu and Malibu Beach experienced a tremendous increase in sales, median sales prices were highest on its prestigious Beach area with prices up 18% to $7.745 million. Malibu was up 2% at $2.876 million.

High-end sales continue to have a terrific year (see below), so bottom line: Our real estate market continues to look stronger and stronger as we move into next year.

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2020 Shaping up to be best ever for $5 million-plus homes
While overall sales volumes lagged behind 2019, there is some really positive news in the $5 million-plus homes category. The number of closed sales of $5 million-plus so far this year is 619, versus 504 at this time last year. (up 23%). Of these, 181 were $10 million-plus this year and there were 150 $10 million-plus sales at this time last year. (up 21%).

Fifty (50) of these were $20 million-plus this year, and there were 41 closed sales of $20 million-plus at this time last year (up 22%). We are even in the $30 million-plus sales, with 16 for both years. We have had seven (7) $40 million-plus sales this year, and there were eight (8) at this time last year. And there are 70 pending sales of $5 million-plus at the moment, 16 of these are over $10 million.

The buyers are mostly Americans — 40 Americans purchased homes of $20 million-plus. Other buyers included residents from Taiwan, England, and China.

On a national front…. Demand for million-dollar homes is growing faster than any other price tier in the pandemic-driven U.S. housing boom. In October, applications for mortgages larger than $766,000 jumped 59%, the biggest gain for all segments measured by the Mortgage Bankers Association. By comparison, the increase for mortgages from $150,000 to $300,000 was 13%.

I expect this trend will continue well into 2021 as buyers are looking for enhanced, higher-quality home environments, learning from the past eight months of staying at home that environmental improvements need to be made.

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Mortgage amounts surge to record highs
As median sales prices continue their upward climb, home buyers are taking on bigger mortgages as they compete in a fierce housing market and face higher home prices. The average home purchase loan amount reached $375,000 last week, according to the Mortgage Bankers Association. That represents the highest average home mortgage since the MBA began the survey in 1990.

Tight housing inventories across the country mixed with strong buyer demand are causing home prices to quickly appreciate. As I reported in the last SchifferLine, the median existing home price for all housing types jumped 15.5% year over year to $313,000 in October.

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You need to update your insurance after a remodel
Many homeowners have updated or improved their homes during the pandemic. Major remodeling

upgrades could result in homeowners needing to update their insurance, too. Otherwise, the home may be under-insured if a disaster ever strikes.

Remodeling your home can lead to higher insurance rates, since a home remodel often increases the rebuild cost of a home. Your dwelling coverage limit should match the rebuild cost of your home. So, please make sure you review your home insurance policy after your remodel.

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Buyers are now craving luxury pantries….
Looked in your pantry lately? Would you say that your pantry is deluxe? According to a recent study the walk-in pantry has emerged as one of the most desirable kitchen feature for home buyers.

As a result of us staying at home and eating at home more, pantries, once simply closets or cupboards for storing a few perishables, have become much more elaborate. More than 85% of homes larger than 3,500 square feet feature a walk-in pantry.

Luxury pantries for larger homes are now a “must have”. Pantry options can vary from 40 to 80 square feet that can include built-in shelves, stone countertops, and hardwood floors. Also featured are spice-rack pullouts, wine storage columns, and built-in lazy Susan’s for added storage.

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Another factor in us spending more time at home
Home warranty companies, plumbers, electricians, and other home repair business are reporting an 15% increase in business as we use our washer/dryers, ovens, etc. more they tend to break down with the increased usage also.

I know a number of people do not like home warranty policies, but I can personally tell you that over the years t I have had one on my home, they have been a life and huge money saver replacing things from my water heater, dishwasher, ovens, washing machine, etc. Please contact me know if you want/need any information on the various companies out there and the pros and cons.

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The Public Hearing on the Berggruen Institute’s Plan for Developing in the Sepulveda Pass
On the 8th of Dec. there was a virtual public hearing dealing with the Environmental Impact Report and the proposed construction of the Berggruen Institute on the last undeveloped acreage adjacent to Mountaingate.

Following are the notes from that hearing: 28 acres of 447 acres to be developed. 2 ridges; ridge 1= institute, offices, and residential units for guests and staff, ridge 2 = scholar living quarters (3 units up to 10,000 sq ft each). Trails not impacted. Main entrance from Sepulveda and serpentine road. Ridge 2 entrance from Mountaingate / Canyonback Rd. Stoneyhill is only for emergency access. Helicopter pad only if required by LAFD. 18 events per year with up to 250 people, 3 events per year with up to 450 people, no 3rd party events. Events end by 10 PM. Haul routes have not been determined. Entrance on Sepulveda, design is not available yet for review. Public comments due by Dec 21st, via mail or e-mail (addresses to follow in another e-mail). Another public comment period after draft EIR distributed.

Unlike other virtual meetings, only the City and Berggruen panel members could be seen, and written questions were not visible. Attendees had no clue if questions were being skipped or paraphrased. A question about the entrance on Sepulveda was eventually read but the city did not have a drawing or an idea of what the design will be. No comment from the Berggruen panel on that question. There were a lot of comments suggesting that it be built elsewhere, but the city planning members responded that they are only reviewing the request as submitted. Zoning variances come up a lot. Brush fires, wildlife, noise, and traffic comments as well.

This definitely will be a long time coming if it does come to pass, as there are lawsuits requiring Berggruen to comply with the original plan to develop the approved 29 homes which were part of the purchase agreement between Berggruen and the previous owner.
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As we enter the celebration of Hanukkah, Christmas, Kwanza and the New Year and the “dark winter” we have been warned about, my prayer for you is for your celebrations be as joyous as possible, even with the losses we all have sustained this year.

Stay safe, stay home, and wear your mask!

Please let me know how I can assist you in any real estate need/questions you might have. I look forward to seeing all of you in what hopefully will be a better year for all of us!

 

Median prices up 15.5% over last year
As I have reported earlier, despite being in an extreme, pandemic environment, the housing market is showing growing strength as we near the end of 2020. The median price for the U.S. market in October came in at $313,000, for the 104th straight month of year-over-year price gains. We have not seen this growth pace since 2006. Existing home sales rose for the fifth consecutive month to an annual rate of 6.85 million units — and that is up 4.3% from September, and sales were 26.6% higher than we saw a year ago.

It is not just the annual rate that rose, as monthly sales came in at $573,000 – and that is the highest monthly figure since the market “snapped back” in July following the initial COVID-19 shutdown. These significant increases in prices are not just because mortgage rates are low — though that certainly is a factor — but also the more substantial reason is that there is far more demand than there is supply, thus driving up prices everywhere.

Nationally, single-family sales were up by just a little more — 26.7% year over year, but the month-over-month pace of single-family sales was lower than condos and came in 4.1% higher than in September. With median sales prices continuing their upward climb in Southern California, on the Westside, we are seeing moderate sales price increases compared to 2019. But volumes remain are 10% behind from last year…this number could change. All in all, as we head to 2021, our market is well positioned to have a great year, especially if we get the vaccine and mortgage rates remain stay low.

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What a vaccine could mean for our housing market
An effective vaccine could mean a spike in interest rates and return to some pricy metro markets according to leading economists and real estate experts.

With three firms already announcing results of a Covid-19 vaccine that is 90% to 94.5% effective, this has spurred tremendous optimism across the real estate landscape. While the actual timing of the vaccines availability depends on a myriad different logistics, the news gives hope for a future not dominated by COVID-19, especially at a time when numbers are spiking in states and cities — especially in Los Angeles County where new restrictions are being issued.

The news of an effective vaccine — which in turn means a potential light at the end of the COVID-19 tunnel — would obviously be good news for the economy overall. More importantly, there will be changes in how the real estate market will emerge from this pandemic and how marketing of real estate will continue to change.

For one thing, the pandemic has already affected migration out of crowded cities to the suburbs and even rural areas. Second homes are now becoming ‘first’ homes…and remote working has taken root in every sector of our economy. One real estate expert speculated that office buildings will be going through their own challenges when life begins to return to normal. The big question is: What is going to happen to all of that commercial space? Will remote workers want to come back?

So…life as we knew it before the pandemic will be different after the pandemic for many, and housing will see changes in every market…cities and suburbs will change…and our future is still to be written. What will the ’new normal’ bring us?
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Covid brings us a new appreciation of the outdoors
The landscaping business is booming these days as stay-at-home dwellers are concentrating on beautifying their environment. As Covid stretched into Fall and now Winter, homeowners are creating expansive, landscaped outdoor spaces. As one landscape architect described it…” clients are focusing more on their gardens and how they use their exterior spaces, and they just want a better and more functional experience altogether.”

Depending on one’s situation, homeowners are now seriously considering swimming pools and large outdoor kitchens, something that was not on their pre-pandemic wish list. They are re-imagining their entire outdoor environment, creating designed gardens, fountain areas, and combining all of their favorite elements.

Properties with gardens and outdoor gathering spaces are of particular interest to buyers. According to an October analysis by Realtor.com, advertising single-family homes in the 100 largest metro areas displaying outdoor-related keywords such as garden, courtyard, deck, greenhouse and backyard sold 27%, or 12 days, faster than similar homes lacking those keywords

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FHFA Increases Conforming Loan Limits for 2021
Due to rising home prices, the Federal Housing Finance Agency announced last week that it would raise loan limits for mortgages backed by Fannie Mae and Freddie Mac.

In most of the country, the 2021 maximum conforming loan limit for single-family properties will be $548,250. That marks a 7.4% increase from last year’s limit of $510,400. The FHFA’s loan limits define the maximum amount that Fannie and Freddie can finance for a one-unit single-family home.

In more expensive markets, such as California and New York, the new limit will be $822,375, up from $765,000 in 2000. With home prices setting records in many U.S. markets, the loan limits will align with home price growth according to the NAR. U.S. home prices have continued to rise during the COVID-19 pandemic.

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Foundation problems? How to avoid water damage
This song was popular because the lyrics were not true…” It never rains in Southern California..” Of course, it rains here even though we have not seen much of it lately. While we live in a semi-arid desert, rain can damage your home and create problems if you don’t keep an eye on your foundation.

Whether you live in the ‘flatlands’ or on a hillside or in a canyon, water can cause significant damage to our homes. On the flatlands, water can gather on your roof or in your yard, which if not monitored, can result in costly repairs to your roof and interior. On the hillsides or in the canyons, homeowners need to be vigilant from storm run-off that come cascading down the ground above you, and even intrude on your home from adjacent properties. The tragedy occurring in Montecito mudslides two years ago where 23 lives were lost, and 130 homes destroyed is a terrible reminder of what could happen.
The primary recommendations are to ensure that water is diverted from the exterior of your foundation….any internal water sources that might cause flooding could be controlled with interior pumps… and make sure you carefully examine

the perimeter of your home before and after any rain storm. I also suggest the installation of a gutter protection program to hopefully avoid having leaves in your gutters thus prohibiting the runoff of water from your roof and causing leaks in the house. You should also have your roof checked on a bi annual basis, especially with the amount of sun we have beating down on our roofs. And, yes, it does rain in Southern California.

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Speaking of Low Inventory
One of the conversations we have every year at this time is “are the holidays a good time to buy or sell a house?” The short answer is a responding YES!

As aforementioned, we have a shortage of inventory, and one of the results of that is multiple offers, however, when some buyers are “taking the holiday’s off”, there is less competition for that home you are longing to own, and also with people both decorating their homes for the holidays and also staying home, you can see how they live in the house, and get ideas as to how you can live there. Also, with the coming of a vaccine, the market will most likely open and the interest rates will increase some.

As for selling your home now, the holiday decorations you have installed create a warm homey feeling, thus enabling buyers to envision how they will live in the house. Also, with the buying traffic a little less how, you will be attracting “real buyers”, not just people looking for something to do.
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Did you know?
One of the things I love about working with Coldwell Banker, is its need and philosophy of giving back.
I am very proud to announce that we are affiliated with St. Jude Hospital who continues to lead the way in treating and defeats childhood cancer and other life-threatening diseases. I have made arrangements to have a donation made to St Jude for all of my transactions. Clients can also donation to the charity as well. It warms my heart to think we are all helping children get healthy and stay that way!

Also, there is our Clients for Life Program. Every month we have a mailing and drawing for our clients to win various prices. This past month, we had two winners from my office of a gift certificate from Amazon. I invite you to participate every month. The next mailing will be going out around the middle of the month.

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One more thing
As I have mentioned from time to time, there is a proposal for the construction of the Berggruen Institute on the last 447 undeveloped acres om the area adjacent to Mountaingate. There is a lot of community opposition to this project, and have a law suit has been filed against the project by the Master Association of Mountaingate (MOSA). They won the first round in the court, but the legal battles are just beginning. There is a virtual public hearing on the proposed EIR study to be done between the dates of Nov 20 and the 21st of December scheduled for the 8th of December at 5:30 pm.  I invite you to participate in this hearing by logging on http://www.joinwebinar.com/ and entering webinar ID 772-772-955 and your email address.

The outcome of this project will have major implications for our communities.

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Holiday Wishes
It will be vastly different celebrating the holidays this year, be it Chanukah, Christmas or Kwanzaa but even with all of the losses we have sustained this year, I for one am grateful for my family, friends, colleagues, and clients and the support and love we share. For Thanksgiving with Covid prohibiting my family and I getting together for the holiday, we had a Zoom call with participants in Vancouver, BC, Montreal, Alaska, Orange County in California, and myself in my house in Bel Air Crest. It was great fun, we even played a game and decided to do this every week or two and have plans for our next holiday celebration as well.

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                                                                Stay Safe and Stay Home!                                                                     

HAPPY HOLIDAYS!!!

 

 

 

Goldman Sachs predicts V-recovery, stimulus package
Analysts from Goldman Sachs are predicting that economic growth will rebound more strongly than expected in the second quarter of 2021, despite projected GDP losses in the fourth quarter of 2020 and first quarter of 2021 caused by a resurgence of the virus in the United States and Europe.

According to their report issued last week, just as the global economy rebounded quickly (albeit partially) from the lockdowns in the spring, Goldman expects the current weakness to give way to much stronger growth when the European lockdowns end and a vaccine becomes available.

Goldman is now predicting a global GDP loss of 3.9% in 2020—driven by a major contraction in the European economy in the fourth quarter— and a bump of 6% in 2021. That indicates a V-shaped recovery, under which the economy bounces back to its baseline levels (or better) after a crisis with minimal hiccups along the way. They are also predicting a stimulus package will be passed before Biden’s inauguration.
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Federal Reserve commits to full range of tools
In their November 5 meeting, the Federal Reserve stated it is committed to using its full range of tools to support the U.S. economy in this challenging time, thereby promoting its maximum employment and price stability goals.

The Fed recognized that the COVID-19 pandemic is causing tremendous human and economic hardship across the United States and around the world. Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year. Weaker demand and earlier declines in oil prices have been holding down consumer price inflation. Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.

The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will continue to weigh on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.

The Fed Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run. With inflation running persistently below this longer-run goal, the Committee will aim to achieve inflation moderately above 2% percent for some time so that inflation averages 2% over time and longer-term inflation expectations remain well anchored at 2%.
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Median sales prices continue upward
It is no surprise that demand for high-quality housing continues to push prices up on the Westside, even though sales volumes have leveled off through the first 10 months of 2020.

In the five communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Westwood/Century City, and Brentwood, median sales prices were up by stronger margins than last month with Brentwood holding even with last year through October (no change). Beverly Hills led the way in median sales price increases with a 12% gain over last year, with an MSP of $6.475 million. The Westwood/Century City MSP was up 10% over last year at $2.411 million; Beverly Hills Post Office was up 5% at $3.000 million; and Bel-Air/Holmby Hills was next at $2.331, up 4%. Pacific Palisades, one of the communities I also cover, was up 10% over 2019 at $3.345 million.

What we are seeing across the board is a market that remains “hot”— lots of buyers who are seeking a quality lifestyle in attractive, safe and, well-managed cities and neighborhoods. During this pandemic, I am seeing buyers looking for security, calm, protected areas that offer good schools and appealing local amenities. We have all that right here…and our reputation has spread worldwide. Another measurement of our appeal is that homes are selling for an average of 93% of the original listing price, up substantially from this past summer. Once again, there are some outstanding high-priced sales that skew the numbers and percentages, and as my numbers are from the Multiple Listing Service only, any private sales are also not factored into these numbers.
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Sales volume lags…still over $3 billion
Sales have been a mixed bag for 2020…volumes have hovered below last year’s record sales from 6% to 10% each month compared to what we saw for the first 10 months in 2019. In analyzing the data from 2019, there were block-buster sales that pushed these five communities to new sales records, but we have now turned the corner for high-end sales (see below).

Sales volume for these five communities through October were $3.070 billion vs. $3.417 billion through same period in 2019. That is a 10% drop. The biggest decline in sales volumes for the year is in Bel-Air/Holmby Hills, down $301 million from 2019, followed by Beverly Hills, down $175 million.

Westwood/Century City was down $38 million, and Bentwood was off by $54 million. The good news is that Beverly Hills Post Office was up $232 million through October. Pacific Palisades has had a great year with sales up 10% with sales of $800 million for 2020.
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Buyers seek ‘multi-generational’ homes
The coronavirus pandemic has initiated several shifts in America’s housing market over the past eight months. Changes in the behaviors of home buyers and sellers were especially notable as buyers’ usual tendencies altered, and the urgency to sell accelerated.

This is according to new data from the National Association of Realtors’ 2020 Profile of Home Buyers and Sellers, a yearly report which discusses demographics, preferences and experiences of buyers and sellers across America.

Those who completed their transaction after March were more likely to purchase a multi-generational home. Multigenerational home purchases accounted for 15% of sales after March, compared to 11% for those who closed before April.

In light of stay-at-home orders instituted within the early weeks of the pandemic, 14% of buyers who bought after March said their transactions were delayed because of COVID-19. The report went on to say that buyers sought housing with more rooms, more square footage, and more yard space, as they may have desired a home office or home gym.

The NAR report also noted they shopped for larger homes because extra space would allow households to better accommodate older adult relatives or young adults that are now living within the residence. As an example, one of my clients whose son attends school in San Diego, just moved back into his apartment there after living at home for the past 9 months.
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Pandemic revs up expensive homes market
The pandemic is revving up the market for expensive homes where many people are spending far more time, luring wealthy buyers, and nudging more sales over the half-million-dollar mark from Northern California to the New York City suburbs.

Nationally, nearly one in four home buyers between April and June bought houses priced at $500,000 or more, up from 14% of buyers during the preceding nine months, according to a report from the National Association of Realtors.

…And we are moving ahead in high-end sales on the Westside…. while we are seeing increases in expensive homes across the country, our high-end sales for all of the Westside from Beverly Hills to Malibu, is ahead of last year. The number of closed sales of $5 million-plus are 550 vs. 456 this time last year, up 21%. Of those, 150 were $10 million-plus vs. 134 last year. In the $20 million-plus range, we had 45 sales close escrow vs 39 in 2019 at this time.

We are down slightly in the $30 to $40 million-plus range by 12%, and the reason sales volume has decreased so much this year in the communities I report on is that we have not seen the sales in the $40 million-plus homes, which are off by 40%. So, there you have it — we’re up, were down, but overall, we are trending up in prices and sales in our higher priced homes. We have seen some block buster sales this year, and the same holds true for Orange County.
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Second-home markets heat up, too
You would not know we are in a pandemic at times…. the housing market is booming across the United States, especially in second-home markets. Resort towns especially have become ‘hot’ because they provide vacation-style living, and many buyers are staying put year-round. For some, their primary home has become their second home now. When so many of us are working out of our homes, it has been become easier to work from our second homes.

According to the National Association of Realtors, homes are selling much quicker than they did a year ago, and sales of resort and second homes are no different. In September, 68% of vacation homes sold in less than a month, according to the Realtors’ Confidence Index Survey.

Historically, about 30% sell that quickly and the report noted that it is pretty amazing to see this uptick compared to past years. Sales of resort and second homes accounted for 6.3% of overall home sales in the third quarter, up from about 4.5% in the second quarter, according to the Confidence Index.
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New law gives many chances to buy foreclosed homes Come January 1
A new law will enable individuals, non-profits, and governments a chance to buy foreclosed homes before investors can scoop them up.

In a recent Los Angeles Times review, during the last financial crisis, millions of Americans lost their homes to foreclosure, and many of those houses were scooped up by investors — large and small — to flip or rent out. Wall Street became a major player, with large firms creating subsidiaries that snapped up tens of thousands of single-family homes to rent out and became landlords.

In California, where housing costs are sky high, many low-income community groups see investors as a negative force. They say companies crowded out traditional home buyers in the wake of the Great Recession when housing was relatively affordable and are more willing to raise rents and evict tenants than mom-and-pop landlords

Here’s the new law: The new rules apply to one- to four-unit properties sold at foreclosure auctions. If an investor wins one of those homes at auction, then people who want to live in it, as well as nonprofit organizations and government entities, have 45 days to submit competing offers. If the home is a rental, the tenants living there could prevail by matching the investor’s offer. Other would-be buyers must offer more than the investor.
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Hard to believe the holidays are upon us
Thanksgiving is a little more than a week away, and while it might be difficult to think of giving thanks given the year we have been experiencing, it is important for us to stop and take stock of all that we have.

Losing my Mom continues to be difficult for me, particularly as she was such an integral part of my life, but I am so VERY grateful for having her in my life for as long as I did and for the continuous feedback I get from those who knew her telling me how very special she was.

I am also grateful for the improved relationship I have with my sister and her family, and the knowledge that we are there for each other. My gratitude also extends for my health. A very special Thank You to all of my friends, family, and clients for everything you are and bring to my life.

As an ode to this year and what may be the anthem for all of us, I am including a link on You Tube.com to a song that I love hearing particularly this time of year. It is from Gloria Gaynor and the song “I Will Survive” sung by a turkey. I hope you enjoy this as much as I do.
https://www.youtube.com/watch?v=8jGOc0P5DEI

I am also grateful to those of you who participated in my Halloween contest. Seeing the entries was fun. Be on the lookout for my next contest which will be launched in the next week or so.

In the meantime, life goes on and I would love to hear from you as to how I can assist you with your real estate needs. I will be very grateful and thanks for this as well. Just a reminder the real estate market goes on during the holidays, and in fact because some buyers and sellers sit on the side lines, it can be a great time to buy or sell a house as there may be less competition.

Housing market — one of economy’s bright spots!
During this pandemic, now nearing eight months, the U.S. housing market has become one of our economy’s bright spots. Home sales rose to a new 14-year high in September, bolstered by robust demand and a shortage of homes for sale that is making the housing market one of the brightest spots for the U.S. economy.

Existing-home sales rose 9.4% in September from August to a seasonally adjusted annual rate of 6.54 million, the highest rate since May 2006, the National Association of Realtors said last week. The September sales marked a 20.9% increase from a year earlier.

The latest figures for existing-home sales, which make up most of the housing market, marked the fourth straight monthly increase and one of the best stretches for the housing market in years.

Real-estate agents and economists credit the strong demand for housing to record-low interest rates, a large population of millennials entering home-buying years and a desire for more household space driven by the coronavirus pandemic. As many people work and attend school from home, home shoppers are willing to move farther from their offices in exchange for bigger houses with more outdoor space.

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Home price growth accelerates in August
The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 5.7% in the year that ended in August, up from a 4.8% annual rate the prior month.

Sales of previously owned homes, which make up the bulk of the housing market, rose 2% in August from a month earlier, according to the National Association of Realtors, as low mortgage-interest rates and a desire for more space lured buyers into the market. A shortage of homes for sale has led to competition among buyers and pushed home prices higher.

“Current home price growth is exceptionally strong given that the U.S. is an economic recession,” said Selma Hepp, deputy chief economist at housing-data provider CoreLogic. “It is the historically low inventories and record-low mortgage rates that are outweighing economic and employment headwinds and fueling the price acceleration.

The Case-Shiller 10-city index gained 4.7% over the year ended in August, compared with a 3.5% increase in July. The 20-city index rose 5.2%, after an annual gain of 4.1% in July. Economists surveyed by The Wall Street Journal expected the 20-city index to gain 4.3%.

The 20-city index only measured 19 cities in August due to transaction reporting delays in Wayne County, Mich., according to S&P Dow Jones Indices. Price growth accelerated in all of the 19 cities.

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Homeownership rose in third quarter
Here is some more good news — the Commerce Department reported that the homeownership rate rose to 67.4% in the third quarter, up from 64.8% a year earlier but down from 67.9% in the second quarter. The second quarter was accentuated by the start of the pandemic, which threw the housing market into a tailspin.

The department said that its data collection was affected by the coronavirus pandemic, and its survey response rates declined from last year, which could affect the accuracy of its second- and third-quarter estimates.

With low mortgage rates, the housing market is going through an unparalleled period of ups/downs, as we are seeing on the Westside. We’re seeing an increase in sales in the lower price categories, driven by these low rates, but our total sales volumes have lagged behind last year at this time.|

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What will homes be worth in 2030? California leads list
Homeowners are watching their home values climb significantly this year, and prices are expected to continue to appreciate over the next decade. The National Association of Realtors reported that the median existing-home price for all housing types in September was $311,800, a 14.8% increase compared to a year ago.

But how high are prices poised to go over the next decade? A new study shows that home prices in the U.S. have increased by nearly 49% in the past 10 years. If they continue to climb at similar rates over the next decade, U.S. homes could average $382,000 by 2030, according to a new study from Renofi, a home renovation loan resource.

To estimate property prices in 2030, Renofi analyzed the average price in every state and the 50 largest cities, comparing them from September 2010 to September 2020.
California leads the list for valuation projected for September 2030 at $1,048,100, with Hawaii next at $899,627, followed by Washington – $782,708. West Virginia is last at $128,415.
Four out of the top five cities are from California — San Francisco leads with $2,612,484, with San Jose next at $2,251,703, Oakland, $1,713,554, Seattle at $1,540,583 and Los Angeles, at fifth place is at $1,375,638.

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Renters Beware!
What the pandemic provided for many home and apartment renters — is refuge from monthly payments. For those who opted to forgo their rent payments, the day of reckoning will eventually come. A housing crisis centered on the vast apartment and home-rental markets is emerging in the U.S., threatening to send millions of renters into eviction and leave landlords short billions of dollars.

A large number of renters have been unable to pay some or even all of their rent since March, when the pandemic temporarily shut down most businesses. Many businesses remain closed or only partially open, pushing renters into unemployment and draining their savings.

Federal and local eviction moratoriums have protected many of them from losing their homes if they missed payments during the pandemic. But the national eviction ban and some state and city protections are set to expire by January or sooner. Renters will be on the hook for months of missed payments, which even those who have jobs could struggle to pay.

Estimates of total outstanding rent debt vary widely. Yet by any measure, the fallout from missed rent payments could imperil a large swath of the U.S. population and wash over broader segments of the economy.

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Urbanites haven’t given up on ‘urban’…..
While you are reading about ’thousands moving out of the city to suburbia’ or beyond (like in ‘rural’), it is true: There have been many fed up with the congestion, closed in society and lockdowns. But confirmed urbanites are resilient and getting creative. For example, urban buyers are looking for different amenities in light of the pandemic. Clients are looking for small rooms, formerly known as a maid’s room, which have suddenly come back.

These rooms, like smaller extra bedrooms, are becoming the ’new work zones for family members. Flat desk, bookshelves, Internet connection, printer, and voila — you have your own special workspace. Working from home has caused these ‘pop-up’ work areas, springing forth from existing home space.Urbanites are also upgrading rooms for ‘fitness’ and exercise training. Getting your steps to/from the office isn’t working anymore, so urbanites are buying treadmills or other high-tech machines that transform your mind and body at the same time.

Large…and I mean large…video screens/walls. Large screen TVs are flying out the door of retailers. Home theaters have taken over wall space since movie theaters are closed and going out of business. No worries…Netflix, Apple+, or Disney+ make it all so quite easy to stay comfy at home.

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Saving your sanity in small places…
Missing your spacious office? This pandemic is forcing many of us to ‘adapt’ to this remote working concept. Working from home has plenty of pros—wearing your fuzzy slippers and spending quality time with your pooch are among them. But big challenges can arise from small spaces when you don’t have adequate elbow room to get your work done effectively. How can you survive with your performance and sanity intact? Consider your mindset, your communication, and some basic survival skills.

For example, getting the right “mindset” is your first priority. You’re not in your spacious office — far from it, so adjusting your thinking to this new, ‘homey’ environment is a must. And one of the most important elements of your mindset is ‘empathy’ — consider what your roommate or family is going through, too. We’re all in the same boat.

Be flexible — one must adapt to new challenges such as outside (or inside) distractions, like kids, sound disruptions (TV, music), and, yes, the refrigerator. Also, planning is a must…plan ahead more because now you have a home calendar merged with a work calendar…be disciplined. It’s easy to just ‘wander’.

Communication with others is key. Set up ground rules, boundaries on what is permitted during shared work times. Be respectful of others as they should be to you as well. And of course, there are basics — like Internet usage (do you have enough speed/capacity…is wi-fi working where it needs to be?) Most importantly — you and your family’s well being. Keeping in shape, have agreed-on break times, learn to anticipate, and yes, have some fun times, too. In the end, your sanity (and those around you) is so important…especially during these stressful times.

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Recycling – unused or old medicine in particular
have long shared with you the information on recycling residential special materials (paint and solvents, automotive materials, among other things), and electronic waste. On Saturday, I discovered that we can also take those meds to the S.A.F.E Collection Center at UCLA

For weeks I have been carrying around a plastic bag filled with unused meds from my Mom not knowing where to bring them and to safely dispose them. I had been told the pharmacy at the UCLA Medical Center took them but every time I went there it was closed. Now we can take them along with the e waste any time the Collection Center is open (the Collection Center only takes e waste on Saturday. For specific information as to what they will and will not take, please give them a call.

Their information is: UCLA Safe Collection Center, 550 Charles E Young, West (along fraternity row on the west side of campus) on Thursday, Friday & Saturday – 8:00 am – 2:00 pm, 1-800-988-6342. It is all easy – peasy!. you must put everything in the trunk of your car, wear your mask, and they will take what you have out of the trunk. Be specific as to what you want them to take, one time I had some bags of things I had just purchased in the trunk and they took those too, fortunately I was able to get them back! .I always drive away feeling like I have done my good deed for the day. Done!

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Keeping up to date
I have a number of listings both for sales & lease coming up in the next few weeks. For a varied number of reasons, we are not ready yet. The properties are located in Bel Air Crest, Mountaingate and Beverlywood. I will be sure to let you know when they are on the market.

Be sure to watch for the winners for my on-line Halloween Contest. All of the carved pumpkins are amazing. If you want to participate in my next on-line ONLY contest which will be in the next month or so, I will need your email address.

For those of you who have been following the situation with the proposed construction of the Berggruen Institute. In a lawsuit filled by the Mountaingate Open Space Association along with the other homeowner organizations, Berggruen suffered a defeat for their proposal in a California Court on the 13th of October. The fight will continue. Stay tuned for more updates as they come along.

Just learned from a reliable source that come Jan 1, Stoney Hill security will be merging into Crest Promontory and that those residents will be writing 3 checks rather than 4 as the have been doing and that The Vista residents will be paying for their security through their MOSMA dues.

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Please reach out to me for all of your real estate needs. I AM HERE FOR YOU

Stay safe and if you have not already done so, VOTE… EVERY VOTE COUNT

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
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