Timely Real Estate News…………………………………..I December 2017
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How was your Thanksgiving?
Mine was lovely, but a little strange and different. I spent it at my home at the beach in Coronado, and it was HOT!!! The temp was 94 on the beach, leaving no energy for doing anything including eating turkey. I cooked it, but we ended up having an omelet as that is all we had the energy for. Fortunately, it cooled down and we were able to enjoy the rest of the weekend. Hopefully when the whole family gets there for the rest of the holidays, the temp will be more normal.

For those of you who receive the Schiffer Line via snail mail, I hope you are getting ready to celebrate Hanukah as it starts on the 14th of the month. Get those latke party invitations out!

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Home Values could take big hit in new tax bill
In looking at the proposed tax bill in its current iteration, the National Association of Realtors analysis of new data of the tax bill now being considered in Congress could potentially negatively affect California home values by more than $56,550 and owners could be exposed to $30,000 in new capital gains taxes under a House tax proposal that would cap the mortgage interest deduction at $500,000 and alter tenure requirements, new data indicates.

The brunt impact of the “Tax Cuts and Jobs Act” on California home owners is merely one of the insights to emerge from a new state-by-state analysis by NAR of the tax bill that passed in the House on November 16.

Within the national analysis, the impact on Californians is the most severe, with approximately 6.9 million owner-occupied homes, nearly half valued at more than $500,000, effected by the new proposals. According to NAR, 4.3 million homeowners claimed a mortgage interest deduction and under the House bill many would be exposed to $28,875 in capital gains taxes.

“Of the approximately 6,943,000 owner-occupied houses in California in 2016, 71% had a mortgage,” according to the authors of the NAR analysis, released last Wednesday. “49.1% of the housing units with a mortgage had a value higher than $500,000 while 9.0% of the owners paid over $10,000 for real estate taxes. Vacation homes accounted for 2.7% of the housing units in California.”

I will keep you posted on this evolving story as it is one of the most important stories for our real estate industry and the country in general. If you have any questions, don’t hesitate to contact me….carole@caroleschiffer.com or call me at 310-442-1384.

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No signs of cooling…market stays “hot”
Housing shortages across the U.S. is fueling a “hot” real estate market as September home prices rose 6.2%, up from 5.9% in August, according to S&P CoreLogic’s National Home Price Index. The surge marks the strongest price growth in over three years. The highest year-over-year gains were recorded in the cities of Seattle, Las Vegas and San Diego.

“Home prices, after multiple years of fast growth, still show no signs of cooling because of the ongoing housing shortage in much of the country,” said National Association of Realtors Chief Economist Lawrence Yun. “This fast appreciation over income growth is not sustainable over many years.

Continued low mortgage rates, low unemployment, rising rents, and a short supply of housing are fueling this surge and will likely continue according to leading economists. The biggest challenge facing the national housing market is…affordability as many are being squeezed out by these continued high prices. One of the leading components leading the market is new construction. We are seeing a good amount of that here in West Los Angeles.

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While prices rise, pending home sales shrunk
California pending home sales shrank for the fourth consecutive month, posting the lowest level in six months. Pending home sales are those homes that have been entered in escrow and are a measurement of future, final sales. The California Association of Realtors (CAR) reported that even with the home-buying season winding down, there are slight increases in open house traffic and listing appointments/client presentations compared to a year ago.

Based on signed contracts, year-over-year statewide pending home sales dropped in October on a seasonally adjusted basis, with the Pending Home Sales Index declining 2.6% from 119.1 in October 2016 to 116.0 in October 2017. California pending home sales were also down on a monthly basis, decreasing 3.3% from the September index of 120.0.

Pending home sales were down 7.3% from October 2016 in Southern California. Los Angeles and Orange counties registered lower annual pending sales of 4.7% and 4.9%, respectively. Double-digit, annual pending sales drops occurred in Riverside
(-14.0%), San Diego (-11.4%), and San Bernardino (-10.4) counties.

In another report on comparing sales prices to asking prices, CAR reported that the shares of homes selling above asking price fell from 28% a year ago to 23% in October, while the share of properties selling below asking price was up from 44% to 46%. The remaining 30% sold at asking price, which simply means, pricing is a critical factor in how the home is received and acted upon. I have always maintained that overly aggressive pricing is going to lessen the chances that your home is going to sell quickly.

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Millennials are back in the news, again
Here we go again….the share of older Millennials living with relatives is still rising, underscoring the lingering obstacles faced by Americans who entered the workforce during and after the Great Recession.

About 20% of adults age 26 to 34 are living with parents or other family members, a figure that has climbed steadily the past decade and is up from 17% in 2012, according to an analysis of Census Bureau data by Trulia, a real estate research firm. The increase defies record job openings and a 4.1% unemployment rate, the lowest in 17 years. Not surprisingly, a much larger portion of younger Millennials age 18 to 25 (59.8%) live with relatives, but that figure generally has fallen the past few years after peaking at 61.1% in 2012.

I have been reporting on this important demographic for years, and the obvious shortcomings inthe real estate and housing market are negatively impacting Millennials. Those Millennials at the bottom range of their age demographic are actually competing better for jobs and opportunities because, well, they ‘cost’ an employer less money to hire.

For example, a 24-year-old techie without family and just graduating from college or grad school, may not have to support a family, and therefore, may need less and will might possibly take a lesser salary. We’re seeing that in Silicon Beach, which is exploding with new housing constructions (new condos and apartments).

The trend for Millennials living with parents isn’t about to end soon, and some predict as the housing market suffers from inertia, it could become more prominent.

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A woman’s touch is the future in house flipping…
Did you know that women make up more than 63% of licensed real estate agents according to the National Association of Realtors.

More dramatically, it is women who are using home…and its invention…as a tool for economic and creative improvement.

In Los Angeles particularly, female real estate investors are making a huge impact on inventory and resale prices. We are seeing more and more women who are ‘flipping’ homes and garnering substantial profits.

Once primarily a man’s game, flipping has now slowly moved to women because as women are becoming better and more educated, and earning higher salaries, they appear to be just as venturesome as their male counterparts. Women look at flipping as a “natural, yet exciting adventure”. Having flipped a few houses a few years ago, I certainly understand and appreciate the creative process.

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Mark your Calendars
Representatives for the Berggruen Institute will be making a community presentation on their proposed plan for the development of a Think Tank on the undeveloped 450 acres just south of Mountaingate between Sepulveda and Mandeville Canyon.

We are all urged to attend this presentation on Sunday the 21st of January from10:00 to 12:00 at Skirball Cultural Center. Make your voices heard.

The proposed project site is on the former Castle and Cook property. Current entitlements would allow the following:

* Construction of 28 residences with access through Mountaingate.

* Building would occur on two ridges — Ridge 1 East (Stony Hill Ridge) and Ridge 2 West (Canyonback Ridge) l.

* East Ridge would house three buildings — #1 the Institute, with courtyard where 26 fellows each would live in a monastic style setting with a library, dining hall and lecture space…#2 Sunken courtyard houses (12) for shorter-term scholars that would integrate into the landscape and not hinder the view, and #3…Chairman’s residence, comprised of four, one-story buildings. The lecture hall will seat 250.

* The primary access for the Institute would be off of Sepulveda via a new Serpentine Road.

* There would be 18 special events during the course of the year during week days from 5 – 7 Pm. Of those 18 events, 15 would have 250 attendees and 3 could have up to 450.

*The Days of operation would 7 days a week, and would operate from 8:00 am – 7:00 for daily operations, 24 hours a day for residents, and for events until 10:00 with load out until 11 pm.

* a Helipad is proposed for Ridge #1.

* The proposed time frame for construction is 24-36 months, with access off of Sepulveda.

* There would be 350 parking spaces, 280 for the institute, 15 for cottages on the West Ridge,50 for Valet, and 5 for the Chairman’s Residence.

* The facility will not be leased out for private events.

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What is really happening with West Los Angeles Real Estate in particular?

Yes, the market is slowing down, but we are also experiencing multiple offers on properties within days of them coming on the market, so while there may be slowing down while people are waiting to see what is happening with the tax bill, and the holidays, depending on the properties and prices, it is an active market. Case in point, last Sunday (Thanksgiving weekend), at some open houses held by my colleagues there were more than 40 groups (or guests) in attendance, and one of those open houses created a multiple offer situation of 6 offers. In another example, two homes in Santa Monica that I sent one of my clients to the previous weekend, had just come on the market and are now in escrow. As always it is a case of pricing and filling the needs of the client.

I am working with some of my clients to get their homes ready to come on the market immediately after the first of the year. They are in Bel Air Crest and Mountaingate and will be in the mid $2,500,000 range. In addition, we will be putting a home in the Sunset Plaza area on the market soon, and that will be in the $4,000,000 plus range. If you have any interest in either of these homes or know someone who would (the Sunset Plaza home will need updating but has a fabulous view!) please let me know. 310 442-1384

Be sure to check out my Facebook page (www.facebook.com/CaroleSchifferRealtor) and or my web site. Caroleschiffer.com.

Timely Real Estate News……………………….I5 November 2017

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Giving Back and Thanksgiving
With Thanksgiving coming up next week, Hanukkah two and one half weeks later and Christmas twelve days after that I am once again reminded of my gratitude for all of my family, friends and clients and my wish to Thank You for your generosity and support and to re-in force my wish to give back. We are all so lucky to live where we live and do what we do. I hope we all take the time express that gratitude in any way you can.

HAPPY THANKSGIVING!!!
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Median sales continue steady climb
Stop if you heard this one before: Median sales are going up. Yes, that’s true, but it’s different for this year: All of the major communities I report on each month — Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Westwood/Century City and Brentwood — are up as of the first ten months of 2017. Usually, one or two of these communities are down while others continue to climb.

We saw that Beverly Hills Post Office’s median sales through the first 10 months of the year, ending in October, were up 30% to $3.235 million, followed by Beverly Hills up 21% at $5.700 million, Brentwood, up 17% at $3.180 million and Westwood/Century City up 5% at $2.010 million, their highest year-to-date median sales price ever. Bel-Air/Holmby Hills managed to stay positive at 1% over the last 10 months compared to 2016 at $2.211 million.

Lack of inventory remains the challenge not only for the Westside, but all over the country. However, you can’t tell it by sales volume — which is driven by demand, forcing prices up and up — demonstrated by the fact that these communities were up 13.5% over 2016 for the first 10 months at $3.136 billion compared to $2.751 billion a year ago at this time. But, please remember, there are many private sales in the $10- and $20-million-plus category that are not officially reported to the Multiple Listing Service, so sales volume is significantly more for the Westside. According to last month’s high-end sales report, there were 42 homes selling over $20 million, 19 of which were private sales, meaning they were not included the stats that I get from the multiple listing service. However, the median sales prices would be slightly higher for those sales not included.

Compared to a year ago…
One of the key statistics I look at each month is comparing how a community is doing on a year-to-year basis, and October was really an eye-opener. For example, Beverly Hills’s median sales price in October 2016 was $3.102 million but in 2017, it was $7.860, a 153% increase. Bel-Air/Holmby Hills was 83% over a year ago…Brentwood was up 73%, Beverly Hills was up 37%. Westwood/Century was, however, down 3%. As I mentioned in the past one months’ price increase doesn’t make a trend, but we are seeing extremely strong price increases in our most popular communities on the Westside. All of Beverly Hills nine sales were over $3 million.

In comparing Listing Price to final Sales Price, homes are going for near final listing price in the 95% range, although Beverly Hills was down to 88.8% of the listing price. And the biggest sales were $26 million in Beverly Hills, with nine of their homes selling for over $3 million. Both Westwood/Century City and Bel-Air/Holmby Hills had homes selling in the $14 million range.
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Marina del Rey is fast moving upward….
One of the other communities I frequently work in is Marina del Rey. The sales volume for Marina del Rey through October 2017 nearly doubled. Located next to the Venice canals and literally dug from a swamp/wetlands area in the 1960s by Los Angeles County, Marina del Rey has been developed into a community with condos and lovely single-family residences. In comparison with October 2016 — total sales through the 10 months of this year was $111 million vs. $58 million a year ago at this time…. an 88% increase in volume. Median sales prices were $1.410 million through October. This can mostly be attributed to Silicon Beach as we have discussed in the past.
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A home priced right, sells right away
I know, I sound like a broken record. I have been preaching from Day One in my real estate career — a home that is priced right, will sell right away. It’s not a secret…every smart real estate agent advises their clients of this “Real Estate Law”. And yet we find clients, who unfortunately think their home is so very special that buyers will jump to buy it, and not be concerned about the price. It does happen from time to time, but rarely.

Here’s a great example of the “right way” strategy. A Coldwell Banker manager — recently retired and is starting off her retirement with a move to Normandy, France, for six months. She and her husband, a retired attorney, decided to sell their house before leaving. It’s a lovely home on a tree-lined cul-de-sac in Brentwood, walking distance to Sunday’s Farmer’s Market, and has this fabulous, large lot, with a guest house and large BBQ area, towering trees and is beautifully landscaped.

They priced the home at $3.5 million since the kitchen and bathrooms needed updating, but the value was there, no doubt about it. They had nine offers, two from speculators and seven from end users. They ended up accepting an all cash offer, substantially over the asking price, and 10-day escrow, and ironically, she had just purchased one of the buyer’s books! Good for all of them. So, you see…. pricing your home right serves you in the end. We wish them a happy time in Normandy.
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Smart painting choices can make a difference
Painting can be one of the most cost-effective ways to add real value to your home if you’re thinking of about putting your home on the market. It’s a way to add dramatic impact to your home without costing you a fortune, and it’s relatively easy to accomplish.

According to staging and color experts, here are some handy hints to brighten up your home…and your price:

1) Don’t choose the wrong finish. Select a finish that correlates with your room’s purpose. Semi-gloss paints are great for kitchens and bathrooms, while matte and flat finishes work best with hallways and kids’ rooms. 2) Pay attention to a room’s undertones: Furniture, cabinets, floors, and even stone fireplaces will influence the colors of walls and other painted surfaces. Test your color swatches in various lighting conditions – -daylight and at night with the lights on. 3) Don’t select the wrong “white”. There are many, many different shades of white — as we all know. Go conservative…take your swatches out and let them sit on the surface for a day or two…experts advise to choose a white with a slight pink or yellow tint, such as a cream. 4) Don’t ignore the ceiling: If you pick the wrong color and have not taken into consideration the ceiling color, you could end up with a mess. “…paint properly, giving the edges along the top a sharp cut in will make the wall pop!” Also, the best color for a ceiling is one that will add to the feeling of height of the ceiling (everyone loves high ceilings!), and 5) Add an accent wall to an odd place. There’s nothing like putting a distinctive color on one wall that is not expected. Adding a pop of color to an accent wall is a popular choice…but don’t make the move ‘jarring’. Use samples and swatches…think about it until you feel comfortable before you commit. If the colors are too bright or too bold, it could turn off buyers.

Having gone through this myself several times, I know how confusing and challenging it can be to make sure you have the right color. Take your time, get lots of samples/swatches, and let it all gestate until you feel comfortable.
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Tech markets thrive…others not so much
It’s no secret but the latest report on “Emerging Real Estate Trends” by PriceWaterhouseCooper (PWC), pointed out that the five largest U.S. cities fell in favor among investors as secondary markets while blossoming tech hubs proved ascendant. Seattle, the home of Amazon and Microsoft, clinched the top spot in PWC’s nationwide survey of 1,600 property owners, developers and lenders. That’s in keeping with other metrics where Seattle leads the nation. San Jose, Raleigh and Boston, each with their own sizable tech sectors, climbed steadily.

Meanwhile, New York City, Los Angeles, Chicago, Houston and Phoenix all dropped precipitously, with Manhattan plummeting in the PWC index, while Chicago’s drop was “severe” according to the well-regarded study, issued annually by PWC and the Urban Land Institute.
A young, educated workforce and an overabundance of capital elevated Seattle to the top spot. Survey participants noted a positive outlook for all property sectors in the city, with the strongest outlook for investment and development in industrial and single-family housing.
As I have been reporting for a while, our own Silicon Beach (Venice, Playa del Rey, Culver City and Santa Monica) are all thriving with the import of new technology firms and their property-hungry employees. This has led to price increases and community changes in a number of areas throughout the city.
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Is there a drone in your future? Yes...
Once new commercial rules are in place, the Department of Transportation is expected to approve the use of commercial drones —This will be a boon for companies as Amazon who have already tested innovative product delivery. This will not affect the recreational user, but there a many uses already being tested for commercial use.

Drones have proven to be very beneficial, especially for the film and entertainment industries, one of our major enterprises in Los Angeles. But drones are coming…count on it.
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Bitcoin….is it real?
There’s been so much written about “bitcoin” …and the question always is: What the heck is that? According to Wikipedia, it’s a worldwide cryptocurrency and digital payment system. We are all “in to” technology with smartphones, computers, and social media…wouldn’t cryptocurrency be a logical progression?

Well, for many, it is. It was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009. The system is peer-to-peer, and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Bitcoin can also be held as an investment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
I haven’t seen bitcoin used in real estate…at least, not yet. There are trades and exchanges in real estate that involve consideration and barter, of course. Perhaps bitcoin will find a niche in real estate one day but until there we do, we’ll just rely on the ‘coin of the realm’…the American dollar!
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Do you have a Warm Coat?
Baby its cold outside! Under the auspices of the One Warm Coat” organization I am once again collecting coats, jackets, sweaters and any other clothes that you no longer use and taking them to the Ocean Park Community Center in Santa Monica for them to distribute to their clients. It is very easy, just give me a call at 310 442-1384 and I will swing by and pick them up.
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The Day of Giving
For the last number of years, my office has teamed up with Vicente Foods, a local family owned market here in Brentwood at Thanksgiving to collect food and cash for the Westside Food Bank. This took place last Saturday, the 11th and as always it was a truly exceptional day It always amazes me that people who look like they don’t have two Nichols to rub together, come out with shopping bags full of food.. The concept is that people go into the store, purchase nonperishable foods, which they in turn put in the barrels for the food bank to distribute to their clients. Over the years, we have learned that some of the clients at the food bank, had in previous years been donors themselves! This year we filled 4 barrels to the top, and collected $550.00.
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Bel Air Crest and Mountaingate Real Estate News
My wonderful listings in Bel Air Crest and Mountaingate are patiently waiting for their new owners to enjoy them. The house in Bel Air Crest is 3 bedrooms/3 baths and has been done to the nines and is very sophisticated and is priced at $2,225,000.
http://www.11738ipswich.com

The lovely home in Mountaingate is also 3 bedrooms, 3.5 baths also “tooth brush ready” for its new owner and is priced at $2,130,000. Both homes are in gated communities. The holidays are a great time to look for a new home, and sellers are most anxious to show off their holiday decorations. Please give me a call at 310 442-1384 so we can make an appointment and get together.
http://www.12357ridge.com

Be sure to visit me at caroleschiffer/realtor@facebook.com or my web site, carole@caroleschiffer.com.

 

Timely Real Estate News……………………….I November 2017
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Southern California home prices tied for all-time high
“White hot” was the description one real estate economist used to describe the Southern California market. The median price for the six-county region soared nearly 10% from a year earlier, to $505,000, data firm CoreLogic said last week. That matches a price level reached in 2007 before the housing bubble burst and the economy cratered.
In some corners of the Southland, home prices have already risen past their peaks. For example, in Los Angeles County, the median last month was $575,000, up 9.5% from a year earlier and $25,000 higher than its 2007 peak.
In Orange County, September’s median was $710,000, up nearly 11% from a year earlier and $65,000 from the 2007 height.
Economists said the latest upswing is more sustainable, driven not by risky lending but by an improving economy, historically low mortgage rates and a shortage of homes for sale. It’s important to note, however, when adjusted for inflation, prices in all counties are still under their 2007 peaks; the Southern California median is about 13% below its peak

This is not all good news, however….
A UC Berkeley poll this year found 56% of voters considered moving to find a more affordable home, with a quarter saying they’d probably leave California to do so. Business groups say employers are having difficulty recruiting workers from outside the state, which some economists cite as one reason job growth has slowed this year.
The surge in home prices isn’t limited to California. Values are up nationwide as the economy expands. But affordability is a far greater problem here, with even lower-cost areas commanding a significant down payment. In Riverside County last month, the median hit $360,000, up 7.5% from a year earlier. In San Bernardino County, prices “climbed 8.7% to $325,000.
Experts point out that developers are simply not building enough new housing in California, a state that has experienced both job and population growth. This just adds to the affordability crunch with an expanding shortage of housing combined with soaring rents. Even as you drive around Southern California and see cranes and new apartment complexes rapidly rising from the ground, it isn’t enough. Not nearly.

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Slightly good news, new-home sales up in U.S.
I know that I just wrote that developers are not building housing fast enough in California (it’s true), so you might be confused by the news that new-home sales are, indeed, up — to a 10-year high, but that’s in the U.S. not here.

According to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built single-family homes rose 18.9% in September. Compared to last year, new-home sales are 8.6% above their level during the same period in 2016.

“New-home sales have bounced back from a few soft months and have returned to the strong growth trend we saw earlier this year,” says National Association of Home Builders Chief Economist Robert Dietz. “As existing home inventory remains tight, we can expect new homes sales to continue to make gains in the months ahead.”

New-home sales increased in all four regions of the country, rising 33.3% in the Northeast, 25.8% in the South, 10.6% in the Midwest, and only 2.9% in the West. Home sales in the South had been greatly hampered by hurricane-related setbacks. All regions showed an increase in sales from last month, and all regions except the Midwest also show growth when compared to a year ago.

Governor Brown has been pushing for legislation to streamline the approval process for new housing — on all fronts. Frankly, it just isn’t moving fast enough to deal with tremendous housing crunch and affordability issues facing thousands of Californians.

Pending home sales down…
One definitely needs “a program” to keep track of all the real estate statistics thrown at us every month, but it’s important to know and understand the #s because they affect all of us. The construction industry, especially housing, is the lifeblood of our economy, and with the housing shortages we’re facing in Southern California, particularly in Los Angeles County, we must meet the challenges every day, every month.

According to the California Association of Realtors, California pending home sales dwindled for the third consecutive month, suggesting that the housing market will slow as the end of the year winds down. Based on signed contracts, year-over-year statewide pending home sales dropped in September on a seasonally adjusted basis, with the Pending Home Sales Index (PHSI)* declining 6.0% from 127.7 in September 2016 to 120.0 in September 2017. California pending home sales increased on a monthly basis, rising 2.5% from the August index of 117.0.

What this means is simply this: The precursor of future real estate actual sales will be less, and when you consider that pending home sales has declined for eight of the past nine months, puts a cramp on the affordability issue indicating that the pace of growth is slowing down, which de-incentivizes home builders.

We have been seeing slower open house traffic in Brentwood and the office recently has been quiet compared to earlier in the year. We remain optimistic as the economy remains strong, healthy, and job growth is fueling a resurgence, especially in Silicon Beach.

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Mortgage rates highest since July
Mortgage rates reached their highest averages since July this week (10/30). Ten-year Treasury yield surged this week, jumping 12 basis points says Freddie Mac’s chief economist, Sean Becketti. The 30-year mortgage rate followed suit, increasing 6 basis points to 3.94%, the highest rate in three months.

15-year fixed mortgage rates average 3.25% with an average 0.5 point. A year ago, it was 2.78%. These rates are still attractive, and I recommend that if you’re looking to move, buy or sell, it’s a good time.

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Good news on the high end…
Affordability is a “relative term” in the real estate industry. If you’re traveling in the $5 million-and-up circle, then the news on the Westside of Los Angeles is rosy for sure. In our September report, we found that there have been 461 sales of $5 million-plus homes so far this year, versus 415 homes at this time a year ago, a 11% increase. There have been 147 sales of $10 million-plus homes this year, versus 120 last year, and in sales of $20 million-plus homes, there have been43 homes versus 25 in 2016. Of these 43 homes, 20 were over $30 million, versus 33 of $20 million plus all of 2016.

That’s a big jump across the board. Significantly, Americans are outpacing all other nationalities — of the 43 $20 million-plus buyers, 32 were Americans, 3 Chinese, 2 English, 1 Indonesian, 1 Scottish, 1 Canadian.
The areas of the sales include: 11 in Malibu, 9 in Beverly Hills, 6 in Bel-Air, 6 in Beverly Hills Post Office, 3 in Sunset Strip, 3 in Holmby Hills, 2 in Santa Monica, and 1 each in Los Feliz, Westwood and Palisades. Eighteen of these properties were not officially listed.

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Metro’s Purple Line Info & Other Street Stuff
It’s going to be a long slough. At the Westwood Hills Community Home Owners Association meeting last week, Eric Geier, the Community Relations Representative for the Purple Line Extension outlined the projected timetable for the construction of the Purple Line which will run under Wilshire Boulevard. His presentation dealt with the relocation of the utility lines portion of the project, and was quite detailed and lengthy. I strongly suggest you contacting them at 213 922-6934, or puplelineext@metro.net for specific and up to date information. Ultimately, the Purple line will have seven destinations such as the Miracle Mile, Beverly Hills, Century City, and Westwood, covering nine miles.

Based on current construction estimates, the work to relocate the utility lines will begin on January 2. They will be using Lot 36, at the corner of Wilshire & Veteran for their staging area. Work will be done “a block at time” (or thereabouts) and will be done at night and on weekends. In those periods, Wilshire Blvd. will be reduced from eight lanes to two lanes.

Most of you have also been impacted by the work being done on Sepulveda also in stages. They are replacing very old gas lines, which unfortunately they did not address when they were working on the 405 project. They too are doing this block to block which makes it annoying. The reason they are working in this manner is that they are using a robotic camera which is running the entire length of the area they want to work on, they then study the pictures, and decide which area is the worse, get bids on that portion of the street, complete that work, and then start the process again. I hope we all have a ton of patience and good music in our cars as we sloth through this process. It is going to take a while!

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Would you let Amazon into your home?
Amazon is launching a service next month called Amazon Key that would allow delivery people to walk into your home and drop off a box when you’re not there. Those who want to use the service would need to be an Amazon Prime member and would have to buy a camera and a Wi-Fi-connected lock from the Seattle-based company that starts at $250. Shoppers will then be able to select in-home delivery on the Amazon app.

When the delivery person shows up, he or she will knock first and scan the package, then Amazon will make sure the delivery person is at the right home and unlock the door. No codes are needed and the indoor camera will record the in-home delivery.

The company said its in-home delivery service is covered by the Amazon Key Happiness Guarantee, which covers delivery issues, property damage or theft. Amazon said the deliveries are carried out by drivers who are vetted with background checks and driving record reviews. I don’t know about you, but it sounds somewhat risky to me!

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Sliding into the Holiday Season
We saw some pretty interesting costumes for Halloween yesterday. Now that is behind us, the catalogues have been filling my mail box and the holiday gift season is upon us. Historically some people feel it is the time to slow down in their buying and selling of real estate. Those stories are” old tapes”. I have found that the real buyers are out there, and with sellers decorating their homes for the holiday, love the warm, friendly, family feelings these homes evoke. Even though the market has slowed down somewhat, the buyers are definitely still there. My sales manager is retiring this month, and has put her wonderful home in Brentwood on the market, as she and her husband are going to be traveling the world for a bit. In 4 days they had 8 offers on the house. I do not know how much over asking it will go, but believe it will be substantial. The house is on a GREAT lot, but needs updating with an old, but charming kitchen and bathrooms, and every buyer was an owner/user.

We reduced the price of my listings. 12357, The Ridge in Mountaingate is now $2,130,000 and has been done to the 9’s!!!. My sellers have purchased their new home and want to sell this one, please do come and see it http://www.12357ridge.com.

Also my listing at 11737 Ipswich Court in Bel Air Crest has also been reduced to $2,225,000 and again has been updated as well.
http://www.11738ipswich.com

Both homes are available to see by appointment and are open on Sundays.

Please do not hesitate to allow me to assist you with all of your real estate needs. Remember the majority of my business is based on referrals and repeat clients’

 

 

 

Timely Real Estate News……………………………………I5 October 2017
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Sales volume up, of course, but sales up, too!
It’s all relative, of course, but we’re making headway on one important front — the number of homes sold compared to a year ago. This time last year, we had a total of 610 homes sold in the five communities I report on (Beverly Hills, Beverly Hills Post Office, Bel-Air/Holmby Hills, Westwood/Century City, and Brentwood). According to the MLS records, as of September 30, we had 650 homes sold. That’s a modest 6.5% increase, but inventories have been flat and this has frustrated buyers, all of whom have been fiercely competing for premium listings. We are still in that hot competitive mode, and we have a long way to go to get back to decent inventory levels. Still, it’s a good sign to see home sales increase.

Sales volume is up everywhere — more than 21% over 2016 for the first nine months of the year. For the five communities I report on, we have sold a total of $2.859 billion vs. $2.356 billion through same period a year ago. That’s not surprising although sales volume has picked up over last month when it came in at a 17% increase over the previous year.

Median sales prices get a boost
With pressure on inventories, home prices continue to steadily climb. Significantly, when looking at median sales prices a year ago, Beverly Hills is up 7% at $5.237 million; Beverly Hills Post Office is up 24% at $3.050 million; Bel-Air/Holmby Hills is down 3% to $2.211 million; Westwood/Century City is up 7% at $2.039 million, and Brentwood is up 16% at $3.100 million. Bel-Air is one of the areas where median sales prices constantly fluctuate and I don’t regard this as a trend. As always, we need to keep in mind that there are always large sales that skew the numbers as well as private sales that are not included in the MLS numbers.

Venice is one of my most ‘favored’ communities….and its median sales prices were up 20% to $2.000 million on sales volume through September 30 of $439 million, a 25% increase over last year. Venice, along with Playa del Rey and Playa Vista, continue to be hot markets as Silicon Beach expands and millennials/tech families move in. In just the past year, Venice’s median sales prices through the first nine months were up 29% versus a year ago.

Mid-priced homes popular in September
In looking at the home prices last month, the homes priced between $2 million to $5million were a big hit in our market. Beverly Hills had 9 homes over $3 million with one home at $25 million. Beverly Hills Post Office had 8 over $3 million, Bel-Air-Holmby Hills had 10 over $3 million with one selling for $17 million, Brentwood had 7 with a sales price of $17.2million. Westwood had 6 over $3 million with the highest priced at $4.4 million.

We’re now through three quarters of 2017, and prices and sales are strong but inventory could improve. While we have reached the 2007-pre- recession levels in median home prices, we’re still behind value-wise because these #s don’t take into consideration the 11% inflation factor. But we’re getting there. And what is also significant is that we are not seeing sales prices matching original listing prices (SP/OLP), with some communities in the 80% range and the others in the low 90% range — which means only one thing: Sellers are getting price-aggressive but eventually settle back down to more realistic prices.

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Best year ever (thus far) in high-end sales
We’re hitting our stride, the Los Angeles real estate market is having its best year ever in high-end sales with 434 closed sales of $5 million-plus thus far this year, versus 361 as of last year. That’s a 20% increase. Of these sales, 134 were $10 million-plus vs. 106 last year, a 26% increase. But the biggest difference is in the $20 million-plus category. There have been 40 closed sales of $20 million-plus vs. 19 at this time last year…a 111% increase. Nineteen of these sales were $30 million-plus vs. 8 last year.
Of the 40 closed sales of $20 million-plus, most of the buyers were American….32 American, 3 Chinese, 2 English, 1 Indonesian, 1 Canadian and 1 Scottish.

The areas of the 40 closed sales were 10 in Malibu, 8 in Beverly Hills, 6 in Beverly Hills Post Office, 6 in Bel-Air, 3 in Holmby Hills, 2 in Sunset Strip, 2 in Santa Monica and 1 each in Los Feliz and Westwood. One other point of interest, of the 40 $20 million-plus sales, 15 of them were private sales!

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Unemployment hits lowest mark in 44 years
If one of your measurements is tracking unemployment #s, then you have encouraging news — the Department of Labor reported last week that the total number of laid-off workers receiving unemployment benefits fell to 1.89 million by the end of September — the lowest such mark in 44 years! And according to the agency, new claims for unemployment benefits dropped 15,000 to 243,000 in the first full week of October as the job market bounces back from hurricane damage even faster than forecasters expected.

Low new jobless claims are a good sign. They indicate that layoffs are rare, and accordingly that job creation is strong. According to the report, the labor force is moving back into Texas and Florida quickly after the disastrous hurricanes busted up their states. Yes, this is a great news.

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Fed hike in December…probable
According to members of the influential Federal Open Market Committee they are anticipating that factors slowing down inflation will pass, and that will lead to the economy hitting the 2% inflation mark that the central bank believes is consistent with healthy growth. If this holds true, the FOMC indicated that a third increase in 2017 of its benchmark funds rate is warranted. Traders now broadly expect the Fed to hike interest rates in December. Past hikes in the past year have not dampened the real estate market or mortgage rates. According to most experts, another hike most likely will have the same effect. There are other factors that may impact a change in mortgage rates, such as the international situation, but we will have to wait and see what happens there as well.

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More baby boomers retire with mortgage debt
According to Fannie Mae, retiring baby boomers are less likely to be mortgage-free compared to people their age in previous generations, this could potentially hurt boomers’ financial security and exacerbate the housing affordability crisis.

Slightly less than 50% of the oldest baby boomer homeowners in 2015 were mortgage-free, 10 % points lower than the number of Silent Generation homeowners who were in the same age group in 2000 and mortgage-free, according to Fannie Mae. Between 2010 and 2015, when the housing market was recovering from the crash, baby boomers were paying off their mortgages at an accelerated pace. But even if that trend continues, researchers predict, the rate of boomers who own their homes free and clear in retirement is unlikely to keep pace with previous generations.

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Fire-ravaged home owners have another fight: Insurers & Contractors                                                                                     For the hundreds who lost their homes in the fires sweeping across Northern and Southern California, they now face another burden or two — dealing with insurers and contractors. Some are almost certain to experience a rude awakening.
Roughly 60% of American homes are underinsured by an average of about 20%, according to CoreLogic, a company based in Irvine that provides data to home insurers. That means someone whose house was valued at $500,000 (not including land), for example, would be short $100,000 on the cost of rebuilding after a disaster.

The problem is that homeowners are sometimes misguided by formulas for insurance coverage that doesn’t capture all of the rebuilding costs. In other cases, homeowners fail to update their policies after making improvements.
As with any home (or structure) you own, it is imperative that your insurance policies are kept up to date. Adding improvements — such as a new deck or updating your kitchens, bathrooms, or adding a room — will impact the value of your home and therefore, it will necessitate you increasing your insurance coverage. Our prayers and condolences to those many families who have lost their homes or loved ones and suffered severe losses.
As for contractors, there are some recommendations that one needs to follow, and these are good guidelines for all of us to follow any time we employ a contractor to work on our properties:
1: Check to see if they have a contractor’s license and get the number 2: go on line to https://www2.cslb.ca.gov/onlineservices/checklicenseII/checklicense.aspx (I know it is a long address)3: Check the status of their license including checking to see any violations or negative reports. 4: Do not give them any money until you read the contract first 5: Never give them all the money up front.
A California contractor’s license number doesn’t contain any alphabetic characters. Each contractor’s plastic pocket license will show their respective license number. Begin the entry of the license number at the left portion and it should not exceed 8 digits in the number.

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The other side of the coin!
Given the amount of destruction our friends and neighbors are experiencing with the loss or damage to their homes, we are sure to see enormous growth in rebuilding those homes, and a possible increase in jobs, even though there is a shortage of craftsman to fill some of those roles.

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Emergency Preparedness — Get it done!
I cannot over emphasize or understate the need for all to get your emergency preparedness supplies together for you and your family. Please take the fire disasters in Napa Valley and Anaheim Hills as stern warnings to all of us, especially those of us who live in the hills of Southern California. It’s happened before, and we have to remain vigilant.

Please check out the emergency preparedness steps you need to take now. Go to: www.readyla.gov — Prepare or purchase kits for your home, office, and auto. Make a plan. Keep all family members connected.

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Rents zoom…Surprised? No.
Was there any doubt about this? Don’t think so. With housing shortages and affordable housing options dwindling, it became obvious that demand for rental housing is skyrocketing…and so are rental amounts.

Southern California apartment rents are expected to get even pricier over the next two years, as demand increases along with job growth, stated a report released last week. In Los Angeles County, average rents in 2018 are forecast to hit $2,304, up 3% from the previous year. In 2019, rents are expected to climb another 3%, to $2,373, according to the annual USC Casden Real Estate Economics Forecast.

Many residents already are struggling to get by, a fact that’s pushing some tenant groups to lobby cities for new or more robust rent-control ordinances. Economists generally agree that the root cause of California’s affordability crisis is that for decades too few homes have been built relative to population and job growth.

In 2015, 31% of renters in Los Angeles and Orange counties spent more than half of their income on housing costs, according to the latest study from Harvard University’s Joint Center for Housing Studies.

The large millennial generation was singled out in the USC report as one key reason rents will rise over the next two years. We are also going to see the need for rental properties by those who have been displaced by the recent fires in our area.

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Homeowners want large, high-tech bathrooms
In the Houzz 2017 Bathroom Trends Report, homeowners are looking for large, high-tech bathrooms with sleek color palettes and finishes.
“This year’s Bathroom Trends Study sheds light on two key trends in master bathrooms, showers as a focal point and the growing role of high-tech features in bathroom products,” said Houzz Principal Economist Nino Sitchinava. “Additionally, today’s master bathroom renovations are marked by timeless and durable elements, from natural stone finishes to curbless shower entries, a benefit of having older generations in the driver’s seat.”
Who’s splurging on bathrooms? On average, homeowners spent $21,000 to remodel bathrooms exceeding 100 square feet. That cost drops to about $12,300 for homeowners with smaller bathrooms that are less than 100 square feet.

When it comes to age demographics, baby boomers (aged 55+) spent the most on remodeling their bathroom ($13,900-$22,800), since many them (58%) reported that they don’t plan to sell their home anytime soon.

Meanwhile, millennials, who see their home as a short- to medium-term residence, are choosing to invest less in bathroom renovations. Out of the 4 % of millennials who renovated their bathrooms this year, most spent $9,200 to $12,500.

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My real estate world!
I invite you to visit my lovely listings, with their new prices and ready & willing sellers! My customized and remodeled home at 12357 Ridge Circle in Mountaingate is a treat to see and experience. It is a 3 bedroom/4 bath home with a golf course view and quality and luxury throughout. Priced at $2,190,000, my clients have purchased another home http://www.12357ridge.com/

My other lovely and again luxurious listing is at 11737 Ipswich in Bel Air Crest, and is a very special home with 3 bedrooms/3.5 baths waiting for its new residents. Newly priced at $2,250,000. http://www.11738ipswich.com/.

I also have some homes that are available for lease but are not yet on the market as well as one or two homes that will be coming on the market for sale in the next few months. , so please let me know how I can assist you with all your real estate needs.

One Last Thing

Once again, I am collecting coats and jackets as part of the One Warm Coat campaign. If you have any coats or jackets you and your family no longer ware or need, please let me know (310) 442-1384 and I will come by and pick them up from you. I take them to the Ocean Park Community Center for their programs in assisting the homeless. Thank you!