Timely Real Estate News………………………………………………….15 September 2014

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Heavy Baggage Follows

Median sales prices hold steady through 2014…
We continue to see median sales prices holding increases over the previous year through the first eight months of the year, although prices have modulated somewhat. Beverly Hills continues to be the leader in median sales prices, with a mean average of $4.812 million through August 31, 2014 for a 5% increase over the previous 2013 period. Beverly Hills Post Office is 14% ahead of last year’s median sales price at $2.415 million, and Bel-Air is 19% ahead of 2013 median sales prices at $2.250 million. In Westwood/Century City, prices have escalated 26% over 2013 median sales prices at $1.400 million, and Brentwood is 13% ahead of 2013 with $2.690 million median sales prices.

The major sales leader in these five communities was Brentwood, with 20 sales closing escrow in August 2014, with 8 properties over $3 million and large sales of $9 million, $17 million and $24 million. Beverly Hills also had three sales over $10 million — $11 million, $15 million, and $16 million. Westwood/Century City had 17 homes sold in August with 2 over $3 million. And Bel-Air had three homes of $3 million plus out of 10 homes sold. Please remember these numbers reflect the sales from the multiple listing service only and no private sales if there were any are not included.

Summer ends on a positive note….home prices and sales activity remain solid
The spring and summer selling seasons have produced a solid year so far in the five communities that I report on in the SchifferLine — Beverly Hills, Beverly Hills Post Office, Bel-Air, Westwood/Century City, and Brentwood. Total sales activity through the end of August shows that we are 10.5% ahead of 2013 through the same period as last year. Total sales activity through August 31, 2014, is $2.133 billion vs. $1.930 billion the year before.

In 2013 — through the first eight months — we were 14% ahead of 2012 totals, but remember, the real estate market then was coming out of the doldrums — so to speak, and the trend line moving upward was at a steeper incline. We have somewhat leveled out during this past year — as the market is turning back to “normal”.

We have been talking about “normal” for the past several months, and Coldwell Banker executives keep pointing to the positive signs that a normal market brings to the residential housing market. For one thing, we are beginning to see these past few months a slow-down in the steep price increases which were driven largely by the lack of inventory — the old “supply and demand” rule.

As our inventory increases, the competitive factor kicks in and buyers are getting more choices and therefore, can be a bit more selective. We are seeing more buyers at open houses, and even though a lot of those really “old, good deals” have largely disappeared; sellers are willing to negotiate to move their homes into the sales column.  A good example of that is that when you look at the “Sales Price” vs. “Original Listing Price” as provided by the MLS, we are seeing prices dropping to the low 90% range (or lower). Beverly Hills’s median sales price was at 89.16% of the original listing price, BHPO was at 91.1%, Bel-Air was at 94.1%, Westwood/CC was at 96.69%, and Brentwood was at 93.49% of the original listing price. If a house is priced correctly, it will sell quickly, this holds true in any market. Recent media reports about sellers reducing prices, can be valid, but we must always remember, some of this information is regional with the West Los Angeles market showing more strength than the San Fernando Valley or Orange County markets for example, and once again the over riding factor is that if a property comes on the market too high and does not sell, then the price needs to be reduced. Recently in my office, one of my associates listed a lovely home in Cheviot Hills and while they had very strong open house activity, after two weeks, no offers were generated. Late last week, the price was reduced by $75,000 and they now have an offer!

While the economy sputters here and there, we are still seeing strong demand for homes in all price ranges and we have continued to hold steady through the first eight months of 2014. The UCLA Forecast (see below) indicates that California’s economy is going to be basically treading water through to 2016. Job growth is lacking and this is causing a moderate slow down….but on our side of the economy equation, we are still seeing a strong residential market on the Westside.

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Bel Air Crest’s Emergency Preparedness work gets well-deserved attention
It was a nice surprise to pick up the Los Angeles Times last week (9/6) and read about your neighborhood in a very positive light. In the LAT article — “In Bel Air, the luxury of disaster readiness”, Bel Air Crest’s Emergency Preparedness program was highlighted as an example of how one community prepares for practically every major disaster — from earthquakes to fire that could befall any neighborhood.

At Bel Air Crest’s Emergency Preparedness committee envision, the primary focus is dealing with a major earthquake. Over the past three years, the homeowners association has spent approximately $50,000 on emergency supplies and equipment — including the purchase of a 2,000-gallon water truck, emergency supplies that include a 13,000-watt tri-fuel generator, satellite phone, and a neatly organized boxes of medical supplies.

The Committee, headed by Board members Carole Schiffer and Harris Sperling, came into being after a fire charred a nearby hillside three years ago. With the leadership of Bel Air Crest Operations Manager, Rick Cole, the emergency preparations got underway — including the allocation of special Command Center at the community center.

According to LA Fire Department officials, they are not aware of any area that has poured more resources into disaster preparedness than Bel Air Crest. “We have nothing left to purchase,” according to Sperling. Under his direction, he created a 42-page disaster plan and the HOA already has an emergency broadcast system and a residential data base.

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If you got it, tap it — what homeowners are doing with equity
If you’ve got it, tap it. That appears to be the strategy for growing numbers of homeowners across the country that have begun taking out home equity credit lines at a rapidly accelerating pace.

New data collected by one of America’s largest credit-rating bureaus, Experian, suggest that a rebound boom in equity-tapping is underway. Owners have pulled out $120 billion in new home equity credit lines in the last 12 months, a 27% increase in volume over the year earlier.

A recent SchifferLine story pointed out, though, that many equity line borrowers were not aware of the coming due dates on their HELOC (Home Equity Line Of Credit) loans and were in for a big surprise. But if you’re not one on the edge or not in this HELOC situation, this could be interesting news.

In California alone, nearly $6 billion in new equity credit lines were originated in the last 12 months, according to researchers. In some states, new home equity line borrowing is exploding — up 169% in Wyoming, 85% in Oklahoma, 79% in Arizona, 53% in Florida and 52% in Ohio. Dollar volumes of new lines are highest in areas with the most expensive housing, especially along the West Coast and the Northeast.

In many cases these are not small lines, either. For owners with high credit scores, the average amount that can be drawn down on new lines is just under $120,000. And for those with good but not perfect credit, dollar limits average in the $40,000 to $60,000 range. HELOCs are particularly attractive because of their low interest rates and repayment flexibility. Rates for owners with good credit run from the mid-3% range to 4%. Repayment terms typically are interest-only for an initial period of years, after which payments “reset” to include principal plus interest.

Most HELOCs are made by banks. As long as the total mortgage debt secured by a house — the combination of the first mortgage plus the maximum HELOC amount — does not exceed 80%, banks believe that they have a margin of safety should home values decline. But some banks and credit unions recently have begun pushing the combined debt limit to 90%, provided applicants’ credit scores and documented incomes are high.

The rapid increase in new credit lines is the direct result of the significant gains in home prices in most parts of the country during the last year, researchers say. According to Federal Reserve estimates, owners’ equity holdings jumped by $2.15 trillion between the first quarter of 2013 and the first quarter of this year.

But here’s a key question: Despite the big jumps in home prices and equity holdings, is the boom in HELOCs beginning to look like a bubble? Is it a good thing — or an omen — when new HELOC volumes soar in a year by 79% in Arizona and 52% in Florida? Both states were early leaders in the mortgage credit crazes that preceded the bust. Are we heading for a
repeat? My suggestion: Be careful. Using your home as an ATM machine is never a great idea. Get lots of informed advice from your CPA, bank or financial investment advisor

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UCLA Forecast — slow, steady, and unexceptional growth
Sound stimulating, doesn’t it? OK — so that’s the forecast for California for the next two years according to UCLA Anderson Forecast for September. The third-quarter report, released last week, predicts that the state unemployment rate will sink to 5.7% by the end of 2016 from 7.4% now That would continue to top the national rate which economists expect will fall to 5.3% from its current 6.1%.

Basically, California’s economy is like ‘treading water’ — it’s not sinking, but it’s not moving fast toward some exceptional growth period. “Unexceptional growth” was the term of Jerry Nickelsburg, a senior UCLA economist with the Forecast. Our recovery continues to trail the state and nation because the city and county economies plunged more deeply into the recession. And our payroll still lags behind our pre-recession numbers.

Competition for jobs remains high — and both ends of the job-searching spectrum suffer. Older, more qualified workers are looking to book into a lower-paying job to survive and get hired…whereas; younger people who need their entry-level job are being challenged by the older job seekers.

And let’s not forget the world economy — it’s stagnant, too. The unrest in other parts of the world continues to put a drag on economic growth, and California continues to lose jobs to out of state offers (Toyota, Tesla for example).

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Local happenings

What is happening on my “local level”? I am currently working with buyers looking at properties in Santa Monica, Hancock Park, and Venice. We are seeing much of the thing as has been reported in the media. The good houses that are well presented and well-priced are selling quickly, generally with multiple offers.

There are some homes in Venice, and Santa Monica that we saw about two months ago that are still lingering waiting for the seller to understand that they need to adjust their prices and perspective before finding that buyer they are looking for.

Situations continue to change. For the past two Sundays, I have either held an open house or attending them with one of my clients, and despite the heat, buyers were streaming in and offers were being looked at mid-week. Please check out Facebook
page and as always, let me know how I might assist you with ANY of your real estate needs.

Stay tuned….Carole.

 

 

 

 

 

 

 

 

 

 

Timely Real Estate News………………………………………………….1 September 2014

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Back to school and the ‘drivin’ should be easier……
Labor Day has now passed and here we are — entering Fall and that means it’s “Back to School” for thousands of families on the Westside. And it also means thousands of automobiles scrambling through our neighborhoods, leaving off/and picking up children at both public and private schools. So it’s “Watch Out For The Kids” Time!!

Actually most of the work on the 405/Sepulveda construction project is nearly done (we have some closures continuing at night). For the most part, we have found new life on the 405 and the on/off ramps, where some landscaping and final touch-ups remain. After four years, we are now driving on California’s newest state-of-the-art freeway sections that feature some really beautiful structures, especially the on/off ramps for the 405 at Wilshire. Was it worth the trouble, wait? Yes, I think so. After all, time heals all wounds. Even with CalTrans.

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There are signs and there are signs….home sales rise more than expected.
A sign of growing strength in the housing recovery continues according to the National Association of Realtors (NAR). Sales climbed 2.4% from June to a seasonally adjusted annual rate of 5.15 million, the NRA reported in their monthly activity report. The July sales level, the highest of the year, beat analysts’ projected rate of 5 million. A steadily improving job market, coupled with more options for buyers, drove sales higher last month, said Lawrence Yun, the trade group’s chief economist.

“The number of houses for sale is higher than a year ago and tamer price increases are giving prospective buyers less hesitation about entering the market,” he said.

This is a very positive report —- it’s just the latest sign that the housing market may be turning a corner after starting to slow last summer amid higher mortgage rates and prices. A few days earlier the Commerce Department said builders in July broke ground on new homes at a 15.7% higher pace than in June. And although existing home sales remain below year-ago levels, they are steadily improving. July marked the fourth straight month that sales, adjusted for seasonal swings, climbed from the previous month.

Industry leaders are now viewing the news that housing finally appears to be gaining solid footing. Helping drive that improvement are mortgage rates that have fallen from last year’s highs, economists say. The average interest rate on a 30-year fixed-rate loan is at the lowest level of the year, Freddie Mac said in its weekly survey of lenders.

“We are, indeed, seeing positive signs on the Westside as prices are not climbing as fast as they have in the past,” according to Carole Schiffer. “We’re still seeing median sales prices increase marginally each month in all five communities I report on, which is a good sign. And most importantly, we are seeing an increase in inventory — and that’s the best sign yet!” The SchifferLine will be reviewing specific sales performance and data in the mid-September issue.

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Case-Shiller: Home-price gains slowed in June in all 20 major cities
As I have said sooo many times, although it’s nice to know that housing values throughout the country are up or down, the figures often have little meaning when it comes to what’s happening on your block or in your neighborhood. We continue to see stories abound about how home prices are up/down and sales activity is doing the same. Endless chatter it seems.

 
The reality is this: Home prices are slowing, not falling. And that is a healthy thing according to the experts.

Home price slowdown
All 20 cities in the Case-Shiller Index show slower price growth for first time in six-plus years. Home prices continued to cool off in June, according to new figures out last Tuesday.

The Case-Shiller Index reported that home prices grew just 6.2% in June compared with a year earlier. All 20 cities that the index tracks saw price gains slowdown in the month, the first time that’s happened since February 2008. In Los Angeles, prices grew 10.5% year over year, Case-Shiller said. That’s a relatively strong gain, but far slower than the pace seen a year ago. From May to June, prices in Los Angeles climbed 0.6%, barely half as fast as they did from April to May. Nationally, prices grew 0.9% in June compared with May.
This trend of slowing but not falling prices, taken with other measures of the market, is probably a healthy thing, analysts say.

“Home price gains continue to ease as they have since last fall,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. “Other housing indicators — starts, existing home sales and builders’ sentiment — are positive. Taken together, all of these point to a more normal housing sector.”

The sharp home price rise of 2013 was in many ways welcome, as it helped millions of Americans get out from being underwater on their mortgages and put prices more in line with long-term fundamentals like incomes and price relative to rents. But if the prices were to keep rising at that pace, we might rapidly find ourselves back in a situation in which home prices would be out of whack with incomes and rents. There are signs that key coastal markets like San Francisco and Los Angeles are already inching close to or even past that point.

Home prices can’t rise faster than incomes forever. So if the trend of the last few months continues, and the rate of price increases continues to come down to earth, it will be a sign that maybe, just maybe, we’ve put this long, horrible boom-bust cycle behind us.

We continue to see strong buyer interest as inventory is freeing up on the Westside according to Carole Schiffer. “And quite frankly, the market is becoming more competitive as sellers are seeing more competition. This is, of course, a sign of a very healthy market. And, I for one, am gratified to see this taking hold.”

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Wonder how you can qualify for a home loan — here’s what insiders think
The first step I always take with prospective buyers is: Have you been pre-approved for your loan? That is a critical first step in seeking to buy a new home. Unless you are not planning getting a loan, you have to go through this process before you even start looking for property. However, for many home buyers, qualifying for a mortgage not only is a tough challenge but one that can end unhappily – no loan approval.. I always have my clients work with my guy Simon from First Capital Mortgage.. he always seems to be able to” pull that preverbal rabbit out of the hat” and comes through, even though at times I really don’t see how he does.

The reasons for the turndowns typically involve multiple factors, including below-par credit scores, inadequately documented income to support the monthly payments, and little savings in the bank. However, a new survey by credit-score giant FICO offers buyers a rare peek inside the heads of credit-risk managers or underwriters at financial institutions across the country.

Researchers asked a representative sample of the underwriters what is the single most factor in an application makes them most hesitant to approve a loan request — in other words, what’s most likely to prompt them to say no. The results provide practical insights to anyone who is thinking about applying for a mortgage. Top on the list? Surprise, it’s not your credit scores. It’s not how much you have for a down payment or what’s in the bank. It’s your “DTIs” — your debt-to-income ratios. Nearly 60% of under writers in the FICO study rated excessive DTIs as their No. 1 concern factor — five times the percentage who picked the next biggest negative. Nearly 60% of risk managers in the FICO study rate excessive DTIs their No. 1 concern factor. I cannot tell you the gyrations prospective buyers have gone through including turning in a leased car to get their DTI’s down.

Many buyers have only a rough idea in advance of an application — even for a pre-approval letter — about their own DTIs, how lenders view them, and what sort of limits they’re likely to encounter. The new FICO survey found that the second leading cause of concern for loan officers is “multiple recent credit applications.” Lenders spot these on your credit reports and take them as signals that you are seeking to add on even more debt, which could affect your ability to repay the mortgage money you’re asking them to give you. If you are considering purchasing a home, you cannot also be making any other major purchases, a car, appliances, furniture, any item that would require someone to run a credit report on you…. Also taken to the
next step…ONCE YOU HAVE GOTTEN LOAN APPROVAL FOR THAT LOAN FOR YOUR NEW HOME… DO NOT BUY ANYTHING UNTIL ESCROW CLOSES. Lenders in fact run your credit score again before the close of escrow, and if they see that you have made a new big purchase that will impact your DTI they can and have pulled their loan approval.
In third place as an instant negative: your credit scores. Most lenders want to see FICO scores well above 700 — Fannie and Freddie averages were in the 755 range in May; FHA average approved scores were a more generous 684.

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Your FICO score gets a “re-do” that helps some….perhaps

We don’t always get “good news” when it comes to financial institutions who control the flow of mortgage funds to help buyers get into their new home. Now comes some good news from Fair Issac Corp., developer of the FICO credit score, who just announced the debut of a new score version that no longer would penalize consumers who have medical debt-collection issues in their credit files.

The announcement hit the front pages of newspapers and was highlighted on national TV network news. Steve Brown, president of the National Assn. of Realtors (NAR), was so enthusiastic about the new score’s potential that he predicted it would “make a real difference in the lives of millions of Americans who have been shut out of the housing market or forced to pay higher mortgage interest rates because of flawed credit scores.”

That does not mean the good news is likely to get into place any time soon. That is because the two dominant financing sources in the mortgage market — Fannie Mae and Freddie Mac — are not planning to use the new score in evaluating loan applicants for the foreseeable future. Major banks and mortgage companies aren’t jumping to adopt it either. None of this detracts from the merit or potential value to consumers of FICO’s new score. The company says that by separating out medical debt-collection issues — which are commonplace negatives in millions of consumers’ credit files — from other types of collection actions, the FICO 9 model will more fairly rank the actual risks posed by some applicants compared with others. For borrowers whose sole major negative credit file account is an unresolved medical debt, Fair Isaac estimates that the new model will increase scores by a median 25 points.

In the credit scorecard business, this is a “big deal” according to watchers of mortgage lenders and how this new concept will fly with major lenders. So far, the new FICO 9 model has generated a lot of positive reviews, but one of the reasons that the major lenders, such as Wells Fargo, JPMorgan Chase, Fannie and Freddie — are dragging their feet on this proposal is the cost to retool a very complex automated underwriting systems.

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The Commerce Department has it’s own point of view….
On another front in the housing recovery story, the US Commerce Department reported that sales of new single-family homes fell for a second straight month in July, but a surge in the stock of properties on the market and a moderation in price increases should help to stimulate demand in the months ahead.

So, what does this have to do with you? Simply put, the housing industry includes the sales of both new and existing homes, and the combination of these two housing sectors affect interest rates and mortgage availability. It must be noted, however, that while this piece of news might put a damper on the news above (increase in existing home sales), the new housing market is notoriously fickle and volatile.

The weak new home sales pace is at odds with other data that have suggested the housing market recovery is back on track. New house sales data, however, is volatile month-to-month because of a small sample. Data showed a jump in new home construction in July and sales of existing homes also rose to a 10-month high in July. So, we’re getting — again — mixed signals, but it’s all part of the housing recovery story.

An example of California’s recovery, the I-5 corridor of housing chaos since the Great Recession began in 2007 stretched from Stockton/Modesto south to Riverside is finally making a strong comeback. Prices of existing homes are now getting near their 2007 price levels and new home tracts are actually under construction in Lodi, which was the heart of the equity loss experienced by thousands of homeowners who lost as much as 75% of their equity during the past seven years.

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What are my personal observations and experiences about the state of the local real estate market today? I am currently working with some clients for luxury condos in Brentwood and that is a very active market. Twice in one week we lost lovely properties that were sold in multiple offers over asking. That price range $1.500,000. The same thing is happening in the single family residence market in Santa Monica, Venice, Mar Vista, Rancho Park area. It is the same price range. The well priced/well done homes are selling in days, and the others are lingering. In both cases, the properties are “done”, staged and crisp and clean. I am listing a lovely Canyon home in Bel Air Crest and will be holding it open on Sunday the 7th of September from 2 – 5. Please stop by and say hello!

 

 

 

 

 

Timely Real Estate News………………………………………………….15 August 2014

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Online shopping grows, but hands-on Realtors are key to buying a house
Digital marketing and shopping have been flooding every sector of America’s retail and real estate industries. There was a dire prediction in 2000 that 90% of retail sales would be done on the Internet by 2010. It hasn’t happened, but e-commerce today accounts for 16.9% of the total $4.5 trillion retail sales in 2013. But retailers have not disappeared from our landscape. In fact, studies are showing that shoppers in increasing numbers are “looking on line”, but are still going into “brick and mortar” stores to make their purchases because they want to touch/feel a product before they actually make their purchase.

In real estate, the growth of online real estate web sites and search engines underscore the move to digital marketing for real estate agents as well as home buyers and sellers as well. For example, the National Association of Realtors reported that 90% of home buyers searched online during their home-buying process. Real estate related searches on Google.com have grown nearly 300% in the last six years. And 36% of new home shoppers utilize a mobile device while watching television (really!).

As for my online presence, I have dramatically seen an increase in the reading of The SchifferLine (the e-version), and I have grown my web site visits by over 250% during the past year. My Facebook page (facebook.com/carole.schiffer.realtor) continues to grow as well as I post original content three days each week. In other words, any successful realtor on the planet has to be in the digital game. And I am there!

So, how are buyers taking to all this digital marketing? We have discussed this in great detail at our weekly Coldwell Banker sales meetings in Brentwood, and what we are finding is that buyers who rely totally on online real estate services to search for a home discover — much to their chagrin — that homes that appear to be “on the market” are actually sold by the time they get to see their prospective home.

Working with knowledgeable and educated buyers is key for any real estate agent “worth their salt”. That being said, it is so much more effective and productive if — after doing their homework on line — buyers work with an experienced real estate agent such as myself to take the information and knowledge that the buyers has garnered on line, then show their clients the property, negotiate the purchase and nurse the transaction through to a successful close. Where your real estate agent really earns their commission is handling the negotiations and the close of escrow.

Another key point in online shopping is that photographs can be — and many times — are deceptive. The interesting photographic angles and omissions are amazing sometimes! Working with an experienced agent who knows the market and the inventory, will know which properties will really work for their clients and thus save a good deal of time in looking at properties that “just will not work”!

At Coldwell Banker, we have the most sophisticated, most up-to-date online services for searches and support for our buyers, sellers, and agents. Basically, my advice is: Don’t leave home without a qualified, experienced real estate agent on your team. Search online, of course, but when it comes to putting a deal together, you need have a realtor at your side.

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Westside sales activity still strong, but takes a drop in July….
The spring and summer selling season continue the Westside’s strong sales activity performance, although sales for the past month have slowed a bit. Sales activity for the five communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-
Air, Westwood/Century City and Brentwood — was $1.841 billion in total sales for the first seven months of 2014, a 12.5% increase over the same period last year. Sales for 2013 through seven months were $1.636 billion.
Sales activity for July 2014 vs. July 2013, however, was down 22%, from $310 million for these five communities.

Median sales prices, however, continue their growth
We are still not back to our previous highs of the 2007 period when real estate prices reached their zenith on the Westside; however, we are enjoying a gradual increase in median sales prices for the five communities. Beverly Hills median sales prices were up 20% through July 31, 2014 to $4.150 million….Beverly Hills Post Office was up 15%to $2.100 million….Bel-Air was up 24% to $1.875 million….Westwood/Century City was up 24% also for $1.400 million, and Brentwood was up 15% to $2.375 million.

These are very strong numbers as we have experienced past months where either Brentwood or Bel-Air suffered declines, but this past spring and summer we have seen strong activity in the number of homes sold across the board. Beverly Hills had six homes over $3 million in July — with the largest selling for $13.7 million. Bel-Air had four homes over $3 million and the largest sold for $8.25 million. Westwood/Century City had five sales over $3 million — one of its best performances for the year – the highest price was $6.6 million. Brentwood had five homes over $3 million with the highest selling for $12.5 million.

To give you an example, comparing June 2014 to July 2014, we saw that Westwood/Century median sales prices had a 46% jump while Bel-Air dropped 10%. Brentwood was up 2% over the previous month, and both Beverly Hills and Beverly Hills Post Office were up 9% and 8% respectively. In my office, an agent had a home in Brentwood that was on the market last year, that just sat and sat, and after six months was finally taken off of the market by the sellers. A few weeks ago, it was put back on the market for a more appropriate price ($100,000 less), and was sold with multiple offers in days and will be closing in about a week!

While the recent sales activity was down a bit, we anticipate that the balance of the year will remain a good selling season. We have the buyers — no doubt about that. And “days on market” continue to drop, meaning that homes properly priced are not staying on the market long. The big variable is as always properly pricing the property. Because buyers are “shopping on line”, they know the value so as we are seeing time and time again, when a property is not properly priced for its condition, and/or location — it just sits, and sits. At the end of the day, these properties languish and end up selling for less than it would have sold if it had been properly priced to begin with!

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Life can be humbling…especially in a room of 3,300 agents
I want to be very frank with you: Being a successful real estate agent on the Westside of Los Angeles surely makes you feel that you’ve climbed some very challenging mountains and so there is a sense of assuredness when mingling with other agents from around the world. Last week, I was humbled to be in a room full of 3,300 agents who are clients or potential clients of internationally known real estate coach Tom Ferry who brings us all together for our “annual checkup” each August. I heard such amazing stories about agents who are making big impacts in small markets where the average sale might be $250,000 – how they dominate a market with smart marketing, online and offline….how they can average over 100 transactions or more a year…and who utilize every marketing tactic available to them. In other words, there are some very remarkable real estate agents in our country, and frankly, I am very proud to be part of this industry. Creativity, hard work, and professionalism are the hallmarks of these agents. Bottom-line: One never stops learning and these conclaves have become a “must do” for me every year. Here’s to “never stop learning”. I love it!

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Housing prices are growing slowly, which is a good thing
If you’re scanning the Los Angeles Times or online newspapers, you’re seeing that home prices are still rising across the
United States, just not at the rate we have seen in recent months. An online reporting firm stated that home prices were still growing and of the nation’s 100 largest metro areas, 97 recorded year-over-year price gains in July, which is not usual for this time of year (summer), and that we are now five years away from when the Great Recession ended in June 2009. Home prices were growing at an annual rate faster than 15%, and only the Inland Empire remained in the top 10 fastest growing markets for price.

The Inland Empire and many of its Highway 5 cousins from Modesto/Stockton south were the hardest hit in loss of home
equity during the early parts of the recession. Equity losses were as much as 75% in the northern part of California, and those areas heavily “under water” felt the effects of abandoned homes and shopping centers where boarded-up homes and weed-filled front yards were the norm. It was ugly.

Fortunately for the Inland Empire, increased prices are returning some of their lost equity. Prices in Los Angeles County
were up 9.3% (year over year) but just 1.6% over the last three months. As reported here in the SchifferLine, sales activity has slowed down when comparing July 2013 vs. July 2014 — a drop of 22% for the five communities I report on. But median sales prices remain strong, as I have said so many times, the Westside is unique unto itself. And that’s a blessing.

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Helpful hints to get your home ready to sell!
A top designer recently shared his tips for getting your home ready to sell….1) “Curb appeal. Enhance the exterior color and landscaping”. 2) “The front door is the first impression. Statistically, you have just eight seconds at the front door to get a favorable emotional response from the buyer”. 3) “Don’t create psychological barriers. Make sure placement of furniture encourages ease of walking into the room”. 4) “No clutter. Too many objects and the wrong scale furniture can easily distract the buyer from the room size”. 5) “Mirrors are a very important tool for opening up small spaces and bringing in the light, energy and views”.

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Remodeling my own home
As I have now lived in my home for the past 20 plus years, I have from time to time updated my house (kitchen, living room windows & doors, changing my skylight and of course interior and exterior painting). Many times when I am visiting someone’s home, I see things that I like and want to include in my own home. This past time I did some work in my Master bathroom, changing the floor, fixtures, cabinets, shower doors, and hardware. It has been an exciting and somewhat rewarding process; however I think made a mistake.. I really do not like the new cabinets… product and color… so while I will give myself a rest for a bit, I find myself once again looking at cabinets, styles and possibly even the floor! Bit of advice… please make sure the changes you are making are what you really want to spare yourself the hassle of doing it again.

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Invitation!
Please do join me on my Facebook page (facebook.com/carole.schiffer.realtor) and let me know how I might assist you with any of your real estate needs, (currently I am working with some buyers on finding homes for themselves in the Venice/Santa Monica area as well as some condos in the Brentwood/Westwood/Santa Monica areas). Looking forward to hearing from you.