Schiffer Line | Carole Schiffer | Los Angeles Realtor

SchifferLine 8 July 2020

The SchifferLine

Timely Real Estate News……………………… 8 July 2020

Missed communicating with you
Sorry you have not heard from me in the past month or so. I have been ill and then with the loss of my Mom, have not been working much.

Celebrating a wonderful life…

It is with great sadness that I share the news with you that my beloved mother, Ruth “Kelly” Schiffer, peacefully passed away June 15 due to old age (she had just turned 98!) at her home in West Los Angeles. She lived a marvelous, energetic life that focused on her family and over her lifetime, on her many contributions to the arts in Los Angeles. Mom was an elegant, lovely woman and she was my best friend, companion, biggest fan, and guiding star. One cute bit of information about her, she would never leave ANY room without lipstick and was a See’s Candy lover to the end!

Born in New York City, Mom grew up with a keen, sophisticated eye for fashion, design and valued giving back to her community. When she was just 20 and with World War II raging across the globe, after meeting on blind date, and just three short months later she and my Dad, Clifford Schiffer eloped on Valentine’s Day, 1942, informing her parents she was married on their cross- country trip to California. Mom and Dad were happily married for 61 years.

Raising two daughters, Mom and Dad encouraged and imbued each to enrich themselves in the arts and get an education as well as a strong sense of self, esthetic and design. We were taught to be the best we can be.

Mom devoted much of her life to learning and teaching about art and culture, which included her serving 45 years as a docent at LACMA…she was president of the Far Eastern Arts Council, an active member of the Decorative Arts Council and for many years, the only docent for LACMA’s famed glass collection (students from schools all over the city where brought to the museum to hear her lectures about glass including its history and the different ways in which it is made) . In addition, she was very passionate about music (especially show tunes) and theater, serving as President of the Center Theater Group Affiliates which is the fund raising arm for Children’s Programs for the Music Center as well as a member of The Blue Ribbon, which is the primary fund raising arm for the Music Center itself

Mom leaves Carole and her daughter Melanie & son-in law Lawrence Fisher, and Kim, husband Dr. Bob Sims and daughter Morgan and son Connor, and their respective partners. She was an incredible person and Mom, and we all will miss her lust for life, style, guidance, council and elegance, her family and grand kids, and the arts. What a long, purposeful life she lived…we should all be so lucky..
You have left me with millions of wonderful memories.
Thank you Mom, I will miss and honor you for the rest of my life.
Carole

What has Covid-19 done for our real estate market?
There has been a lot taking place in the real estate market these days…. not all bad, some good comes along that gives us hope. The reality is that mortgage rates are at historic lows and could go lower, and that is encouraging sales…buyers remain hungry.

The 30-year fixed-rate mortgage averaged 3.07% last week, the lowest ever recorded by Freddie Mac since it began tracking such data in 1971. “Mortgage rates continue to slowly drift downward, with a distinct possibility that the average 30-year fixed-rate mortgage could dip below 3% later this year,” says Sam Khater, Freddie Mac’s chief economist.

“On the economic front, incoming data suggest the rebound in economic activity has paused in the last couple of weeks, with modest declines in consumer spending and a pullback in purchase activity.” Freddie Mac reports average commitment rates, along with average fees and points, to reflect the total upfront cost of obtaining a mortgage. But some of the good news, too, is that 4.2 million jobs were added, and while we are seeing a spike in Covid cases, economists expect the market and job market to improve. But — there is always a “but” — the recent crackdown in LA County has dramatically hurt the restaurant and small businesses. Our lives are exactly getting back to normal. Safe distancing, masks are the ‘order of the day!. Stay safe!!!

Forbearance requests during Covid-19 declining….
The number of borrowers in government and private sector coronavirus-related mortgage bailouts just fell by the largest weekly volume since these plans were put in place. There are, however, warning signs that the programs could swell again.

As of June 30, 4.58 million homeowners were in forbearance plans, according to Black Knight, a mortgage data and technology firm. This represents 8.6% of all active mortgages, down from 8.8% the previous week. Added up, all the loans in forbearance represent just under $1 trillion in unpaid principal ($995 billion).

Many of these loan forbearance requests were made in late March and early April and will expire in mid- to late-June….and that is when we will get a better read on what is happening with forbearance claims.

Protecting our homes from fire – important please read
Standard Mesh Vents, even 1/8” mesh vents create openings for flying embers. They do little to nothing to protect your home from flames, heat and burning embers. During a wildfire, winds can carry flying embers up to 4 miles from the head of the fire. This can result in the ignition of combustible materials inside your attic and subfloor when get blown through your mesh vents. Once a home catches fire inside the attic or foundation, there is little to nothing that can be done to save it. This is why flame and ember resistant vents are now part of the building code

What you do to help protect your home?

You can install WILDFIRE RATED VENTS. There are 4 types of vents, Foundation Vents, Gable Vents, Fire Plug, and Dormer Vents. I just had them installed on my house and feel so much safer and am thrilled with the job. They installed a custom Gable vent, 8 Dormer Vents, and 2 Custom Foundation Vents (they matched the paint color for the house also). A few of us organized a group to have it done on the same day and received a group discount.
Please contact me for more information and the name of the company I used. I highly recommend them.

Summer gardens can and should brighten your day
We are all getting frayed at the edges with the Covid-19 plaguing us daily, but perhaps there is some “peace and quiet” right in your own backyard.

Here are some handy tips to ensure that you can fully enjoy your gardens this summer: #1 Rejuvenate your pots…allow for ample drainage…recycle old soil and re-arrange compacted roots so they can ‘breathe”. #2 Start a compost pile…. keeps kitchen and garden waste out of landfills, transforming into soil-building amendment. #3 Help the bees…. plant some African-blue basil in a pot or in the ground. #4 Plant some flowers…favorites. #5 Deadhead...take clippers in hand and cut back spent blooms from your roses and other plants to encourage a new set of flowers. #6 Weed…knock those weeds down before they take over your garden this summer (it is great therapy). #7 Visit your plants daily…really try to enjoy your garden every day…stroll through it with your morning cup of coffee. Love your plants, and they will love you!

Pandemic making buyers more eager
The pandemic is not scaring off home buyers. More than half—or 53% of about 1,000 home buyers recently surveyed—say they are more likely to buy a home in the next year due to the coronavirus outbreak. First-time home buyers and millennials may be the most eager to buy within the next 12 months, the survey from LendingTree shows.

The top two motivators for buying soon are to take advantage of record low mortgage rates (67%) and being able to save for a larger down payment due to reduced spending (32%). Also, the perception of reduced home prices (30%) and being confined in a smaller space during stay-at-home orders have made homeownership more appealing, the survey found.

The pandemic is not only prompting more people to pursue homeownership, it is also influencing their home shopping. For example, the majority of respondents say the coronavirus pandemic has affected how much money they plan to spend on a new home. Forty-four % plan to buy a less expensive home while 21% want a pricier home. Broken out, 28% of first-time buyers say they will purchase a pricier home compared to just 17% of repeat buyers.

Coronavirus may spark more moves….
The economic fallout from the coronavirus outbreak is having a continuing effect on mobility, encouraging some to find less expensive housing while persuading others to stay put a little longer.

In its latest survey, some 46% of Americans say the coronavirus outbreak has influenced their moving plans in some way, according to a new survey from ApartmentList. Over a recent series of surveys by the site, reflecting 10,000 responses over the past three months, the population segments most likely to move are renters (25%), those who live in dense urban areas (29%), and those who have been laid off (32%).

“Many low-income Americans will be moving out of necessity, and for them, affordable housing options will be difficult to find,” the newest survey notes. The U.S. mobility rate has been falling for the past 35 years, but the coronavirus may change that, economists say.

More employers may embrace remote working for the long haul, which could untether more Americans and let them move anywhere they wish. Also, following months of sheltering in place, urban dwellers may desire more space to spread out. Further, millions of Americans have lost their jobs and may need to move to a more affordable living situation. Bottom line: We are not through this Covid pandemic….it is becoming clear that we are continuing to see changes in our market and most importantly, in our daily lives.

New FICO Index may help expand mortgage lending
For many, this could be extremely helpful in buying your future home. Fair Isaac Corp., the creator of the widely used FICO credit score, released a new credit index last week that could help more borrowers qualify for a mortgage. The FICO Resilience Index, created to supplement the FICO score, is aimed at helping lenders assess a borrower’s ability to withstand an economic downturn, even if they have a low credit score.

The index culls personal financial information from before and after the Great Recession to measure a person’s chances of paying bills on time during economic volatility. Measuring on a scale of 1 to 99, lower scores indicate greater financial resilience in an economic downturn while higher scores indicate more sensitivity to economic shifts.

“Our hope is that it will allow lenders to continue to be able to make prudent loans,” says Joanne Gaskin, vice president of scores and analytics at FICO. “Lenders are going to feel more comfortable continuing to approve borrowers rather than denying them.”
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Back at Work!
After basically not working because I was sick and then Mom I am back at work and very happy doing so. I have a number of new clients, both Buyers and Sellers. I will share our adventures with you as we go along. Please let me know how I can assist you with all your real estate needs.

Looking forward to hearing from and seeing you

Carole
310 471-2007 – home office land line
310 413-3680 – cell
310 442-1384 – office land line

The SchifferLine 1 June 2020

The SchifferLine

Timely Real Estate News………………………1 June 2020
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The Highs & Lows of the High-End Market During Covid-19
The entire Real Estate market took a dramatic drop in April and the high end here in Los Angeles was no exception. This drop was across the entire country. A significant drop in high-end sales since the pandemic started in mid-March was not unexpected as we are seeing sales of home of $5 million-plus down 44% for the period of March 18 through May 25, with 57 closed sales versus 101 a year ago. As you will see below, it has changed dramatically for the month of May.

Of these, 21 were $10 million-plus versus 27 at this time last year, which is down 22%, four were $40 million-plus this year, versus two in 2019, up 50%. Please don’t forget these numbers are from the Multiple Listing Service, and do not reflect any private sales, of which there were two in Bel Air Crest (1 for $8,000,000 and another for $6,000,000).

Sales from January 1 through May 25 of homes $5 million-plus were 180 versus 200 for the same period a year ago, down 10%.

The good news is that we are seeing a lot of pending sales in this market, which is running contrary to what is happening elsewhere in the U.S. While some homes have fallen out of escrow since March, there are now 56 pending sales of $5 million-plus and 12 of these are $10 million-plus and two are $20 million-plus. There are 13 buyers of the $20 million-plus homes this year — mostly American (11), and two are Taiwanese.

What this is telling us is that, yes, sales are down, but we’re still making sales…, the prices are holding, and that’s the important fact to keep in front of us. With mortgage rates near or at historic lows, buyers are anxious to make a deal now, and if you’re thinking about putting your home on the market after this Covid-19 phase loosens up, sellers will be facing much stiffer competition. My advice: Buy or sell now.

Real estate fighting Covid-19 headwinds in April
It’s no surprise the pandemic is negatively impacting our real estate market. The latest existing-home sales numbers show a housing market facing the headwinds of the COVID-19 pandemic in April. Existing-home sales fell 17.8% last month compared to March, marking a two-month decline in sales, the National Association of Realtors reported last week.

Still, home prices remain resilient in the face of the pandemic. The median existing-home price for all housing types in April jumped 7.4% compared to a year ago ($286,800). All four major regions of the U.S. saw annual gains in home prices, too.

However, total existing-home sales—which are completed transactions that include single-family homes, townhomes, condos, and co-ops—fell to a seasonally adjusted annual rate of 4.33 million in April. Sales were down 17.2% compared to a year ago (5.23 million existing-home sales in April 2019). Existing-home sales are at the lowest level since July 2010. ”

This has turned around in May. We are seeing an enormous increase in activity for May with multiple offers again (20 for a house here in Brentwood listed at $2,750,000, (I am not sure what is it in escrow for). Most everyone in my office, myself included is busy. The thinking is that we are all tired of being “cooped up”, and along with thinking about the changes we want to make in our current homes, want to take advantage of the interest rates, and the lower inventory: buyers are starting to make those purchases now. We all know that as things open up more from Covid – 19, there will be more inventory, and more buyers = more competition. Why not take advantage of the situation now?!?

Home dwellers get creative, upgrades coming
If ever there was a positive outcome of the Covid-19 pandemic and Stay-at-Home order, one of them would be that homeowners discover that “we’ve got to make some changes.” And changes they are doing.

Homeowners are prioritizing remodeling projects centered around home offices and master bedrooms during the pandemic, according to a new survey of 1,000 consumers by a home renovation and resource site.

While consumers put off some remodeling projects when the coronavirus outbreak first began in the U.S., they were less likely to put off projects related to those two areas of the home. Also, outdoor remodels and improvements have been prioritized during the pandemic, as have more involved projects such as a kitchen renovation.

The survey finds 79% of homeowners surveyed say they’re now considering major home remodeling and design projects after spending more time at their home during the pandemic.

They also expressed their desire to change the home’s decor, upgrade or add lighting, add storage, and improve home office space. The list goes on…suffice it to say that camping out at home appears to have some spin-off benefits.

Remote workers say: We want to continue working remotely
In a recent poll, more than 80% of employees working remotely, want to stay working from home if at all possible and given the opportunity. Guess what? Some employers are embracing this concept for the most part.

Remote work was on the rise well before the coronavirus pandemic. In 2018, the latest figures available, some 24% of those employed worked at least part of the time from home, according to the Bureau of Labor Statistics. Under the Covid-19 quarantine, that percentage has surged. Even senior executives, long reluctant to leave the Executive Suite, now realize they can work from home and, economists predict, some may want to keep that option, changing homes and floor plans of the future.

Home listings that include the word “office” have increased every year since 2017, according to real-estate listings website Realtor.com. On average, homes with an office sell nine days faster and fetch a price-per-square-foot premium of 3.4%.

“It is highly likely that going forward, there will be a premium on residential environments that provide a dedicated quiet workspace,” says Stuart Gabriel, director of the Ziman Center for Real Estate at UCLA.

This also has major ramifications as remote working relates to the future of commercial office space, traffic, commuting, and suburban property values.

Go suburban, young man, go suburban
What the pandemic has wrought appears to be a transformation in how people view their work and where they do it. More than 50% of Americans in New York, Seattle, Boston and San Francisco said they would move if they could work remotely according to a recent poll last week.

The survey showed a “seismic demographic shift towards a desire for smaller cities,” citing remote work trends as a result of Covid-19. Roughly 40% of respondents were not working remotely before the shutdowns but were able to during the shelter-in-place orders. Twenty-eight % of those respondents said they expect to continue to work remotely or have that option.

In my conversations with clients and other agents, I have noticed that ‘locals’ are not looking to move away from the Westside — “we love it here”, but they are re-thinking the whole ‘working remotely’ option. Tall buildings may have challenges…. time will tell. We are seeing that searching in the Multiple Listing Service is much higher for single family homes, and lower for condos as people feel safer and more secure in a home.

Fire season has never left us…but it’s worse now
The Los Angeles County Fire Department has issued warnings about protecting your home from wildfires, but is now also pointing out the need for families practicing Safer-At-Home guidelines during the Covid-19 period that every home needs a fire escape plan, too.

As we have learned in the last couple of years, fire season is now lasting 12 months, and while we are aware of precautions for preparing your property for wild fires, the Fire Department is now stressing the need to have an Escape Plan that does not include traditional kitchen and living room exits (where doors are located). They recommend you locate windows that have no obstructions as one the prime requirements for your escape from fire and smoke.

As we do each spring, the Schiffer Line points to these tips on how to prepare your property for a potential fire:
* Clear leaves and other debris from roofs, gutters, and decks
* Remove flammable materials like firewood stacks and low-hanging trees around your roof to create a defensible space around your home
* Prepare your family’s “Ready, Set, Go!” wildfire action plan;
* Protect vents near eaves and consider installing double-pane windows;
* Make sure your address is visible to firefighters.

It’s imperative you review your family escape plan — for both in-home and out-of-home. Fire season is always with us.

They are also warning us that due to the additional staffing needs dealing with Covid, fire and emergency personnel availability are being stretched.

Mortgage applications decrease but are ahead of 2019
Mortgage applications decreased 2.6% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 15, 2020.

On an unadjusted basis, the Index decreased 2% compared with the previous week. The Refinance Index decreased 6% from the previous week but was 160% higher than the same week one year ago.

Applications for home purchases continue to recover from April’s sizeable drop and have now increased for five consecutive weeks. Purchase activity – which was 35% below year-ago levels six weeks ago – increased across all loan types and was only 1.5% lower than last year.

How am I faring in all of this craziness?
As I have shared with you in the past issues of the Schiffer Line, while I enjoy the comfort and convenience of working at home, I must admit that I miss going into the office and seeing all of my colleagues. Lately I have been working at the office more than at the house. I also have gotten quite busy and since I seem to have on-going computer/phone issues, it has been easier to work at the office. At the moment I am working with a few potential sellers, as well as buyers. I have previously mentioned the guidelines that we are all under in both showing and selling property today, and those guidelines in some ways change every day. It keeps you on your toes to make sure we all follow them and get the necessary signatures on the proper form. In addition to making sure you take all of your vitamins to stay healthy, one really needs to take them to keep your energy up!

Personally, I am also very busy. My darling Mom turned 98 last weekend! We had a mini party for her as I was/am the only member of the family here with everyone else stuck in Canada or Oregon. One of her caregivers hired a 6-piece Mariachi band (3rd year in a row) and they came to her house for a 45 minute concert. The same caregiver who has worked in various different capacities for over 40 years also has a darling 2 year old grandson, and he joined us dressed up as the 7th member of the band. We all really enjoyed the concert, and the baby with his hat and guitar and dancing to the music. The chocolate cake was yummy too!
We are all very fortunate that we are all fine, healthy and safe.

If you are at all thinking of buying or selling, please do not miss the opportunity to act now. I am here to answer any questions you have as well as assisting you with all of your real estate needs, anywhere on the planet!

Also, as my office is still basically closed I am still not sending either the Schiffer Line or quarterly update except via email. If you know of anyone who would like to receive it in this manner, please ask them to get in touch with me at ceschiffer@gmail.com

SchifferLine 15 May 2020

The SchifferLine
Timely Real Estate News…………………………15 May 2020
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Prices and sales remain up thru April 2020…but
If there wasn’t a pandemic going on, you’d think the real estate business is doing great: Through April, median sales prices remain high, sales volume is ahead of where we were a year ago, and mortgage rates are near historic lows. That is all true. However, as we know, the April numbers from the MLS reflect only six weeks of the coronavirus market, we do expect changes moving forward. Exactly what these changes will be…we will not know until we get there.
Sales volume for the first four months of 2020, was up by 3% to $1.013 billion for the five communities I report on each month – Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Westwood/Century City, and Brentwood. Sales through same period in 2019 was $961million. Gaining the most through April was BPHO with a $80 million increase, followed by Bel-Air/Holmby Hills with $66 million over 2019. Beverly Hills was even for the year, Westwood/Century City was down $11 million in sales volume and Brentwood was off $80 million thru April.
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Median sales prices up, down, as always
In these interesting times, we are seeing the normal swings from higher to lower in median sales prices. When looking at Median Sales Prices through April, we are seeing robust numbers in Bel-Air/Holmby Hills with prices at $2.392 million — 40% ahead of 2019. Westwood/Century City was up 35% at $2.601 million, but Beverly Hills was down 12% at $6.050 million, Brentwood was even for the year at $3.200 million and BHPO was up 6% at $3.100 million. Marina del Rey, another one of the communities I represent, median sales price was $1.570 million for a total volume of $3.341 million for the month of April.

As I have said in the past, median sales prices reflect a better understanding of the trends in each market. Because the MLS uses the median sales price tracking method, large sales do not tend to sway these averages, whereas the high prices obviously affect sales volume. In comparing 2019 to 2020 at this time of year, our market performance is almost even – there were 190 sales through April in 2020 compared to 197 in 2019. One of the factors that we have used in the past was days on the market, however since the 15th of March all days on the market are listed as 0. When the market opens up a little more, I am not sure what the policy for the MLS will be as we count Days on Market.

What was interesting to see in the April MLS data was that Bel-Air/Holmby Hills median sales prices for 2020 vs. 2019 were 132% higher, rising to $5.290 million for the month. BHPO was also up more than 102% at $.326 million. Beverly Hills was down 68% to $2.912 million, an anomaly for this city. There were some large sales in Bel Air/Holmby Hills ($35,000,000 & $43,000,000 respectively) which always skew the numbers.

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What does the future hold for real estate?
Hopefully, we are coming out of the corona virus phase, but we don’t know. It is unknown at this point as to how long Los Angeles County will continue its Stay at Home policy. This places a burden on buyers, sellers, and agents for sure. This is reflected in how we as real estate agents have changed how we do business and will continue to do so. We are using powerful and effective virtual tools for home tours to negotiations to signing documents. Indeed, it is a whole new world, and fortunately, Coldwell Banker provides state-of-the-art support for my fellow agents and our clients. Social media has also taken on increased importance.

Given all the time we are spending in our homes, we are seeing people thinking how they want to live in their homes. Nationally, there is a 20% increase in listings, a 40% increase searches for single family residences, but a 7% decrease for condo searches, What is interesting is that there are three-times the searches for homes with a pool, and two-times the searches for outdoor space. We are also seeing a shift from any densely populated area to more suburban space.

Living safely being top on every one’s minds, another trend we are seeing is that people are not wanting to spend money on gym memberships, preferring to invest in a home gym where it is safer, and more convenient for exercising at home.
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What we are seeing in my CB office….
We are experiencing increased activity across the board in my Brentwood office. I want to emphasize that there are buyers out there eager to purchase homes in our communities because we have one of the most attractive markets in the world. Right now, I have a number of highly qualified buyers looking for opportunities. Do not forget, buyers are aware that when this pandemic phase winds down, real estate prices are going to rise….so, this is a good time to buy. One of the things to remember is that while yes there are qualified buyers out there, their numbers are lower today then they will be when the market opens up again, thus adding to the competition, so if you are thinking to making a change, now is the time to take advantage of the market and interest rates. Please know we are not expecting to see an extreme drop in prices.”

Loans are being made today, and depending on the lender, we are seeing 30 day escrows!
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Homes sales predicted to pick up by late summer…NAR
On the national front, Realtor.com, the National Association of Realtors website, predicts a summer rebound, but notes that sales could drop by 15% by the end of the year. The current pandemic-induced slump in home sales could even out by late summer and early fall – even if second waves of the virus could bring another downturn on its heels.

As I have stated earlier, we are seeing a pickup in our market here on the Westside. On a national level, we expect to see some markets dragging behind others, and realtor.com predicts that some areas will be hit harder by the pandemic in their housing recovery.

On a brighter note, affordability is predicted to improve somewhat. Mortgage rates are projected to fall to just below 3% by the end of the year while home prices could flatten and increase by only 1.1%. This will surely stimulate buyers to get into the market while rates are low. With many areas now re-opening, there is a glimmer of hope that housing will rebound significantly in 2021 according to realtor.com.
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Fed Chairman says there is a ‘lot more to do’ to help economy
Federal Reserve Chairman Jerome Powell said Congress and the White House will need to spend more money to make sure policy makers’ quick initial response to the coronavirus-induced economic contraction isn’t wasted amid evidence that recovery will take longer than first thought.

“The scope and speed of this downturn are without modern precedent, significantly worse than any recession since World War II,” Powell revealed some alarm with the path facing the economy and the potential for an insufficient policy response.

Powell warned that the recovery could take more time to gather speed than what appeared possible a few weeks ago. Congress has appropriated nearly $2.9 trillion so far to support households, businesses, health-care providers and state and local governments, or around 14% of national economic output, the “fastest and largest response for any postwar downturn,” Powell stated.

On another key issue, Federal Reserve officials are unlikely to consider using negative interest rates to stimulate economic growth in the current coronavirus-induced downturn after concluding the tool’s clear costs outweigh its uncertain benefits.
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Nearly 4 million in forbearance plans
As a result of the COVID-19 stimulus plan, the Mortgage Bankers Association’s (MBA) latest Forbearance and Call Volume Survey revealed that the total number of loans now in forbearance increased from 7.54% of servicers’ portfolio volume in the prior week to 7.91% as of May 3, 2020. According to MBA’s estimate, almost 4 million homeowners are now in forbearance plans.

Mortgages backed by Fannie Mae again had the largest overall share of loans in forbearance by investor type (10.96%). The number of loans in forbearance for depository servicers rose to 8.75%, while the number of loans in forbearance for independent mortgage bank (IMB) servicers increased to 7.54%. Requests for forbearance dipped last week, although call volume is up, indicating that more demand for forbearance may be forthcoming. As more information is released how the program will be run, people who initially thought they would apply are changing their minds. The fourth stimulus package proposal now sits in the House, awaiting a more over to the U.S. Senate, which is unlikely to agree on the House’s programs. What, when, and how much (and if) a new stimulus bill makes its way through Congress is still far away.

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Creative ways to be productive at home…a few suggestions
If you have already run through your own list of to-dos to keep everybody in your household happy and healthy, I hope you will find some renewed inspiration in the “project guides”, compliments of Carole Schiffer – Coldwell Banker.

Home Improvement projects
• Attend an online class
• Learn a new cocktail recipe
• Hone your cooking skills
• Start a journal
• Take time to meditate
• Study a new language
• Start a new workout regimen with free workout app

Family Entertainment

• Outdoor fun
• Play “hide and seek”
• Jump rope
• Play hopscotch
• Draw sidewalk chalk art
• Fly a kite
• Take a bike ride
• Go roller skating

Indoor activities

• Play a board game
• Solve a jig-saw puzzle
• Set up a treasure hunt
• Build a fort
• Learn magic tricks
• Have a family movie night
• Enjoy a home spa day, relax
• Teach your dog new tricks

Arts and crafts, baking and cooking
• Color a coloring book or paint by the numbers
• Sketch a scene of your home
• Create a family scrapbook
• Make cookies
• Decorate cupcakes
• Make indoor s’mores
• Create an ice cream bar
• Make your own pizza

There are many ways to entertain and enjoy your home surroundings. It is a time to be creative and think outside the box.
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Living and working at home due to the Corona Virus
I don’t know about you, but my thoughts and feelings after staying and working at home for the past two months has changed, at first it was somewhat of a novel and fun experience to be staying and working at home, and thinking of projects to do. That lasted for a few weeks, then I got really bored with it, and now two months in, I have gotten to the point that I am both bored, but enjoying beinghome more, all at the same time. I am excited to be able to return to my office, hopefully soon.

I am lucky in that I am also responsible for making sure that my Mom stays healthy and supplied with what she and her caregivers need. Speaking of whom, one of her caregivers was exposed to the virus, so for two weeks I covered for her while she was in quarantine. Fortunately, she is fine and is returning to work next week.

It has been a different experience celebrating Mother’s Day with Mom and the rest of the family virtually, and for her 98th birthday next week, we will be sharing her Mariachi concert with everyone via FaceTime. I am the only member of the family here with Mom, everyone else lives in Canada. They all continue to be fine also.

With real estate activity picking up, I find myself not spending as much time as I had initially, on the computer and taking classes, and now am working with clients (buyers & sellers) figuring out how we are going to proceed in taking advantage of the market. Zoom has become an important part of my life as well as learning how to expand my computer skills. I also find myself checking Facebook more than I ever have..

What about you? How are you spending your time? I would love to hear from you. Also, again, since I have not been sending the Schiffer Line via snail mail, only on line, if you know of anyone who would like to getting that or any of my marketing materials on line, please have them contact me at ceschiffer@gmail.com so I can add them to the list.

Stay safe and please think about taking advantage of this interesting real estate market and how I can assist you in that regard.

The SchifferLine 1 May 2020

The SchifferLine

Timely Real Estate……………………………………………1 May, 2020

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Fed to take aggressive action to support recovery

Fed Chairman Jerome Powell sounded the alarm bells recently, announcing that while the U.S. economy has deteriorated due to this global health crisis and pledged to take aggressive action to support an eventual recovery. With the GDP falling to an annual pace of 4.8%, which is the fastest decline any time since the Great Recession, economists quickly pointed out that the first quarter included January and February months of modest ‘calm’.

The central bank “is committed to using its full range of tools to support the U.S. economy in this challenging time,” officials said in a statement released after the conclusion of their monetary policy meeting on April 29. “The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and could pose some risk to the economic outlook over the medium term,” the statement said. Powell referred to the latest data as an “extraordinary shock” to our economic system.

With the varied opinions on the speed and type of the economic rebound due to the novel coronavirus pandemic, Powell walked a line between shoring up confidence in policy makers’ response to the crisis. After several frenzied weeks creating emergency lending programs, the Fed has turned its focus to getting them up and running making sure that the money gets to the appropriate recipients, leaving aside for now difficult questions about how to stimulate the economy once more commercial activity is allowed to resume. The Fed cut interest rates to near zero at two unscheduled meetings in mid-March.

More about this later in the Schiffer Line.

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As expected, housing sales fell on Westside

One thing we do like in real estate – we love data. As data driven as we are, we are not always reflecting what is going on “now” in our industry. For example, the high-end sales for LA’s Westside showed that from January 1 through April 15, we were spot-on even with total sales for the same period last year.

However, if one counted sales from the start of our lockdown on March 18 through April 20, housing sales fell markedly behind a year ago. There were 33 closed sales in 2020, versus 50 during that time last year, (down 34%). During that same period, there were 10 closed sales of $10 plus million in 2020, versus 14 during that period last year, (down 28%). Of these, there were for closed sales of $20 plus million in 2019, versus one during that period this year, (down 75%).

What that tells us is that the robust sales we had during the first three months of 2020, really doesn’t reflect what is going on now. Since January 1, 2020, there have been 151 sales of $5 plus million through April 15, 2020, and there were 151 sales of $5 plus million at this time last year, alluding to a strong start for 2020, but not so.
Some of these sales were/are in the pipeline – with 53 pending sales of $5 plus million at the moment, 15 of these are $10 plus million and three over $20 million. While it is clear that total sales are down, sales are being obviously being made as I write this…I have four active buyers looking for properties now. Low mortgage rates, which may go even lower, are attracting buyers into our own, attractive market.
Before you start wringing your hands in despair, the other side of the coin is that prices are holding! So, while, the number of sales is lower, the discounts for sale prices are not happening.

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How Covid-19 will change our housing preferences, lives
Are we in for a paradigm shift in the way we live? Ever since COVID-19 hit, most of us have been in a “qurantinathon” in our respective places of shelter. By now, we have likely used every nook and cranny of our homes to the max…. the dining room table has quickly turned into the home office, the conference room and possibly even the home-schooling hub. The living room is the new “Zoom” center for video meetings.

Sometimes, the corner of a bedroom is the only place to find some quiet time to take that phone call. The kitchen is now the work and school cafeteria, stocked with a coffee pot that’s always on and full and a food-serving counter that’s open 24/7.

There are four potential changes coming…#1 Less dense living. After going through the pandemic, people may opt for single-family homes vs. condos, high-rise apartment buildings, congested lobbies and elevators…people want immediate access to their living quarters…#2 Functional spaces. People may want two master bedrooms or an expanded one to include a home office.

#3 Amenities. Larger entertainment centers, expanded backyards with larger decks, home movie theaters, computer and game rooms. #4 Location. Moving out of the urban core, working remotely more often than not, even going off grid or buying a tiny home for primary or second residence. And so on. Our lives are in for changes for sure, the big questions are: How, when, where, and what? When will we finally exit this ‘lockdown”?

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Wastewater reveals critical Covid-19 data
From Stanford to the University of Arizona, and from universities around the world, researches have been ramping up wastewater analyses to track the spread of SARS-CoV-2, the virus that causes COVID-19. Initial studies show that sewage monitoring, or “wastewater-based”

epidemiology,” could not only tell us how much the virus might be spreading in a community – but also when the virus has finally gone away.

Understanding the true scale of COVID-19 has been a major stumbling block across the country, as officials struggle with testing shortages, false negatives, and people who are infected but have no symptoms. Sewage data could potentially help fill these gaps by capturing critical information in the aggregate.

Americans might find the idea gross, but wastewater early warning systems have helped catch norovirus, Hepatitis A and other diseases around the world for decades. In Israel in 2013, a polio epidemic was detected in the sewage before any clinics had reported cases. This heads-up gave the government enough time to launch a vaccination campaign and contain the virus.

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set years candles party Numbers …. COVID-19 hurting real estate The coronavirus has already had a massive impact on our personal and professional lives. And there is no question that the real estate industry has been hit hard by the pandemic.

For example, new home construction starts in March marked the biggest drop since 1984, with multifamily construction slowed by 32% and single-family by 17.5%, and along with job losses in the construction industry, plus depending on the part of the country and market, rising debt could spell trouble for the housing market.

Major banks are not taking any more risks than necessary – Chase was among the first to raise its credit score and down payment requirements for new borrowers, reflecting the lender’s desire to offset increased risk presented by COVID-19-related job losses and anticipated post-quarantine foreclosures..

Many buyers are delaying home purchases, and sellers are also delaying listing their homes. Buyers are expecting at least a 10% decline in prices, but sellers, not so much. We are seeing a much lower drop in prices if the property is priced properly in the first place. If not, it will as has been the case in the past, sit on the market.

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Covid-19 is changing our environment, common-day life
If you haven’t noticed, there are few if any cars on the roads these days. Downtowns are deserted, restaurants and cafes closed, shopping malls are ghost towns, and in Los Angeles County, on a 100-degree weekend, our beaches were deserted, too.We know what gives: It’s the damn coronavirus. And the drumbeat for re-opening gets louder and louder as over 40 million are out of work, and cabin fever has set in, regardless if you have Netflix or not. Climbing walls has become a new sport.

On the other side of the coin, we have seen an extraordinary turnaround in places we have rarely ever witnessed – deer, bears, and coyotes are roaming Yosemite’s Valley floor at will. Deer are meandering through neighborhoods and canyons in the San Monica and Gabriel Mountains. Wildlife has become the best ‘new attraction’ in Southern California.

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Debunking the expectation of large numbers of foreclosures

In talking to a number of buyers and potential buyers, a good number of you are telling me you want to wait as “you know we will be seeing a lot of foreclosed properties in the next few months”. I am here to tell you, that.. you are not correct.

Here is why……. First, the downturn in today’s market, is markedly different from the one in 2007 and 2008. A good majority of the homeowners today have a healthy equity in their homes, vs. very little the last time. This gives them the ability to draw from the equity.

Secondly, with the government forbearance programs in place, it will be a good 6 months or more before any properties show up as foreclosures, or short sales.

Third – , because of buyers understandable hesitation and the “safe at home” policies in place now, the pool of active buyers is small now, but the desire is there and once the restrictions are gone, that pent up demand is most likely going to create a large pool of buyers and the competition for properties will be strong.

Fourth – Look at the current interest rates. Why not take advantage of them? Most likely they will not stay as low as they are today

This is not Carole Schiffer talking, but this is what I am hearing from other top agents that I have been speaking with all over the country. We all basically think the same thing.

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What is the story with the banks and City of Los Angeles regulations today?

We all need to know and understand that the situation changes on a daily basis, sometimes multiple times in the same day so that makes it difficult to tell you definitely what is the policy/program today will be the same tomorrow.

City of Los Angeles regulations have different requirements for showing property as to its occupancy. Generally it is much easier to show property that is un-occupied, but as of 29th of April, we can once again show owner occupied properties (we need to have written permission from the tenant to show a tenant occupied property). In all cases, there are forms that need to signed before gaining access to a property, masks, gloves and shoe covers must be worn, and only 2 people plus an agent can be in the property at one time.

These same regulations pertain to appraisals and any inspections that take place while the property is in escrow.

In addition to the disclosures that need to be signed by all parties, we need to have proof of funds dated no later than a few days before the showing, and a pre-approval letter from the lender dated that day.

Regulations for the County of Los Angeles as well as others are different from the City of Los Angeles.

With regard to the banks, purchase loans are being made as well as refinance loans for owner occupied properties. It is more difficult to get jumbo loans today, but they too are being made. It is highly recommended that buyers go to a mortgage broker rather than a bank directly

as the broker has more lenders to draw from, and it is also recommended that buyers double apply to assure they have broadened their options in not only getting a loan, but a good rate as well. Banks have been known recently to change their rates at the 11th hour, so strong, consistent communication not only with your agent (me), but your lender a number of times a week is highly recommended.

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My update

Like all of you, while I love my house, I am ready to be sprung. I am reading more than I have had time to do in the past, working on small projects in the house, but I can tell you that unlike a lot of folks, I am not cooking or baking more. I don’t want extra food in the house!

Because I am on Mom duty, I am also spending more time with her, making sure that she and her caregivers have everything they need including meds and food. I am also making those phone calls and checking in with past clients and friends, so please don’t be surprised when I give you a call.

Also, with the numbers of ZOOM calls from my office and those wonderful webinars, my days are full.

Everyone in my family continues to do well and stay safe. We are all working hard to keep it that way.

I did a fun thing for my sister’s birthday a week or so ago, I organized with my niece’s help a video of her friends calling to wish my sister a happy birthday, and am at work on doing something for Mom for Mother’s Day and Mom’s 98th birthday the end of May. Doing these things has enabled me to learn new tech trips, including ZOOM.

Mother’s Day is coming up next week.. How are you celebrating, particularly in this day of “social separation”? I would love to hear how creatively you are planning on celebrating.

What are you doing to keep yourself busy, safe and sane? I would love to hear from you. Also, the Teddy Bear in the window campaign is still going on, please don’t forget to see my little stuff animal in the window of my house.

Please let me know if you need anything or just want to chat. I am home most of the time and love talking to people.

Carole

310 471-2007

ceschiffer@gmail.com

Carole@caroleschiffer.com

Carole Schiffer, Realtor Coldwell-Banker Residential Brokerage/Brentwood Office 310-442-1384 (office) or e-mail me at carole@caroleschiffer.com www.caroleschiffer.com

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©2020 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

The SchifferLine 15 April 2020

The SchifferLine

Timely Real Estate……………………………………………15 April, 2020

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Reminder: IRS Tax deadline moved to July 15, 2020

As a result of the coronavirus pandemic, your 2019 IRS tax deadline has been moved up to July 15, 2020. There will be no penalty filing by this date, although penalties will be enforced after this date. Happy filing!

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Property Tax Deadline
I am sure you know that the deadline for the 2^nd half of your property taxes were not extended, and passed for the 10^th of April, however they are working on how to handle any penalties for late payments if you were not able to make your payment by the deadline.

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1031 Tax Exchange Update
The IRS has also issued a change in tax deadline for those individuals involved in a 1031 Tax Exchange. Consequently, if either the 45-day deadline or the 180-day deadline of your exchange falls between April 1 and July 15, the deadline has been extended to July 15. The notice extends the deadlines for “time sensitive actions” which are due to be performed on or after April 1, 2020 and before July 15, 2020. Such deadlines include the 45-day identification and 180-day exchange period in a 1031 exchange. However, the IRS Notice is confusing because it is not written like previous Disaster Relief Notices. As a result, the Government Affairs Committee of the FEA is seeking clarification and further guidance from the IRS on various issues.

What we do know is this: If you have a 45-day identification period deadline or 180-day exchange period deadline that falls between April 1 and July 15, 2020, you will have an automatic extension to July 15th. Thus, a taxpayer with a 45th day falling on May 16 would receive an extension of the identification deadline to July 15. However, that same taxpayer would apparently not receive an extension of the 180-day deadline because it falls after July 15 (this is one of the major issues on which clarification is being sought). In addition, it also appears that under the current notice, if a relevant exchange deadline fell before April 1, there will not be an extension of such deadline. Please check with a 1031 tax exchange specialist for your specific situation. If you need a referral, please let me know.

Also, please note:

With everything changing as quickly as it has, I will be posting updates on all important real estate and financial developments on my Facebook and LinkedIn pages. Please be sure to visit these between the SchifferLine editions, which are published the 1st and 15th of each month.

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Sales volume up for March…but it is”too early to tell”

I am always encouraged to see the sales volume up in the five communicates I report on regularly, and this has been the case since the start of the year, jumping to a high for March of $797 million total sales volume for the first three months of the

year. This is a 30% increase over $612 million compared to 2019 at this time.

Yes, there’s a “but” coming: The reality is that March sales means these sales closed escrow in March, some of which started in December, January or February, so these sales #s do not necessarily reflect the reality we’re in today with the coronavirus situation. I do expect sales will drop significantly for April, but it is too early to tell, as again, many of the sales currently in escrow were entered into in the first quarter prior to the coronavirus shutdown. Every day I do still run a “hot sheet” from the multiple listing service and I am seeing that there have been some closed escrows when the entire transaction was about 30 days or so meaning the property came on the market during the covid-19 environment and has already closed escrow.. And so on. We really won’t know the severity of the coronavirus on sales volume until we have filtered out sales after March 15, the official shutdown date in California.

However, as I do each for each month, I do want to review the sales for the five communities through the first quarter for Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby, Westwood/Century City, and Brentwood. As always, some areas are up in volume, some down, and median prices seem to reflect the same differences as well. The big sales volume leaders for March were Beverly Hills, up $100 million for the year; BHPO was up $98 million through 2020; Bel-Air/Holmby Hills was up $12 million, and Westwood/Century City was up $14 million; Only Brentwood was down, some $33 million through March compared to last year. Pacific Palisades, one of the communities I also work in, was up $26 million in sales volume.

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Median sales prices strong year over year for March

When comparing March median sales prices to a year ago, all of these five communities were up substantially over March 2019. For example, Brentwood’s median sales prices were up 81% for 2020 compared to same period in 2019 at $3.200 million; Bel-Air/Holmby Hills was up 53% at $2.137 million for 2020; Westwood/Century City was up 43% at $2.655 million; BPHO was up 13% at $4.984 million and Beverly Hills was up to $6.475 million. Pacific Palisades was down 6% at $3.750 million.

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Year-to-date median sales prices mixed

While these areas had strong price performance in March compared to a year ago, these markets continue to experience modulations from month to month…even though sales volume has been robust since April 2019. Beverly Hills median sales prices through the first three months of 2020 is down 7% at $6.302 million,

BHPO was down 9% at $2.831 million; and Brentwood was down 3% thru March at $2.040 million. Palisades was up 8% at $2.325 million.

Another observation is how long a home sits on the market. Days on Market tells us just how long that is. One of the changes is the suspension of the counting of the Days on Market by the Multiple Listing Service. Any properties that have been listed since the 15^th of April now show 0 Days on the Market. Not sure exactly when this policy will change.

Sales are being made…buyers are out looking, and while inventory is down, there are still excellent deals out there. It’s a good time to buy…There are a number of disclosures that need to be signed before can a property can be shown. For example, on Monday the prohibition for us to show vacant houses was lifted. We still need to follow specific guidelines and disclosures signed by all, but none the less there was a small change.

Speaking of sales being made, a number of those with a good amount of equity in their homes are taking advantage of the softer market and purchasing income property by pulling some cash from their homes to make those purchases. Might you be interested in joining that trend? If so, please let me know and I can assist you in locating and purchasing income property, ceschiffer@gmail.com.

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Market watch…. volatility continues with some hope

According to Market Watch, a leading real estate newsletter, the volatility in the markets continue with some glimmer of hope as we hear of potential peaks in the coronavirus battle that may be reached soon so we can start “flattening the curve”. Last week’s headlines were a disaster with Nonfarm Payrolls falling by 701,000, Private Payrolls falling by 713,000, and the Unemployment Rate rising to 4.4%. Initial Jobless Claims continue to shatter expectations, rising to an unthinkable 6.6 million from 3.3 million the week before.

The key takeaways from the Fed action were that the Fed is lending, not spending…loans are secured and have an expectation of repayment. The Fed also dictated that some entities will need direct fiscal support, and some market conditions have generally improved since the Fed intervention in March.

But the newsletter points out, too, that as a result of the current climate every bank is moved into a “defensive position to minimize risk and exposure from defaults. So, bottom line, it is time to be cautious and when negotiating with a bank, do not assume anything until the transaction is signed and closed!

The situation with loans, interest rates and banks also change every day. Again, please check with me for specific information.

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What’s happening in the real estate trenches….

In our weekly virtual Monday-morning meeting, the MLS revealed that in the past 24 hours (Sunday am to Monday am.) a total of six new listings were filed, there were three price adjustments (decreases), and three homes were back on the market. Two homes were sold, and there were five expired listings, and five listings were cancelled. Not unexpected, given the current state of the Covid-19 situation. Still, new listings were brought to market, that’s good news.

On the leasing front, there were six new leases listed, one lease was sold, one was put on hold, four expired, and two were cancelled.

Leasing homes in today’s market is gaining traction because of the uncertainties we’re facing with, well, everything. I have clients who are considering either leasing or buying, and clients who are considering putting their home on the market for sale or up for lease. Buyers and sellers are facing some challenges as we move forward in how we are handling our shutdown. My advice – let’s talk through all of the options based on the current economic data. That’s key!

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Working at home and being creative

With my office having been closed for the last month, I have been working here at home, trying not always successfully to follow the same time schedule as I had when I was going to the office, but also finding projects that I had been putting off such as cleaning out my closets (up to 4 full bags and still going strong), cleaning cupboards, reading more.

To assure that we don’t get bored, Coldwell Banker is wonderful in offering us classes every day, meetings to make sure we are up to speed on all of the new forms that seem to come up every day. I hardly have the time to do some of my other projects. My mentee also keeps me on my toes in helping him launch his career in this difficult time. We cannot forget the weekly virtual wine tasting parties with my fellow agents (one week we had a pet parade, and last week, an pajama party, and this week sharing baby pictures!).

I have also enjoyed making my own mask following examples online. Have the official ones but enjoyed being a little colorful with the scarfs made into masks. The trips to the market and errands have also filled some time, but I long to be back in my office.

One of the other, and probably the most enjoyable things I have done is to reach out an speak with a lot of former clients and old friends that I have not spoken to in a while. If I haven’t called you yet, please know that I will be doing so in the next week or two.

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How is my family & I faring with all of this?

I have been spending more time with my Mom than I usually do and we make it fun. It is difficult when she asks to see me every day. One of my favorite Easter things to do is to watch Easter Parade. This year I wore my Easter bonnet, when I went there. We had some good laughs..

My daughter Melanie & son-in law Lawrence are hunkered down in their home in Bend, working from there.

My niece, Morgan & Ben, have been doing the marketing and other errands for my sister & brother in law so they can spend their time gardening and planting fruits and veggies while working at home also. I am working on planning a surprise virtual birthday party for my sister next week. Connor is busy working out of his apartment in Montreal dispensing financial advice. We are all healthy, and safe!

Please don’t forget

I am here for you… If you need anything, please let me know. If any of your friends, relatives, neighbors want to receive the Schiffer Line electronically at this time while I am not sending it out via the post office, please have them contact me at

ceschiffer@gmail.com

Also, PLEASE BE SAFE, CAREFUL AND SANE!

Carole Schiffer, Realtor Coldwell-Banker Residential Brokerage/Brentwood Office 310-442-1384 (office) or e-mail me at carole@caroleschiffer.com www.caroleschiffer.com

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