Timely Real Estate News………………………………………………….1 March 2014
***************************************************************************************************************TheThe The lions did arrive!….March brings rain, finally
March came in like a lion, and it marched right into Southern California, bringing much-needed rain when and where we needed it most. But it’s still not going to make up for the drought-like conditions we’ve been experiencing for months and months. So pray for more.
**************************************************************************************************************
Spring’s coming out party? Fill the cupboards, please
Spring arrives March 21, precisely at 9:57 a.m. in Los Angeles. There is no telling how the Westside real estate market is going to fare, but indications are that there is a pent-up demand to buy and sell. Inventories have been notoriously down the past year — across the nation, not just in West Los Angeles. Frankly, the cupboards are bare and it is a subject we can’t ignore. But the word on the streets of Beverly Hills, Brentwood, and Bel-Air is that homeowners are sprucing up their 
properties to put them on the market in the spring.
As we have seen and heard, the market continued to be active even during the perceived down months of December and January. We have plenty of buyers, but because sellers have been reluctant to enter a market when the prices may be lower, they are now poised for the “traditional” spring and summer selling seasons.
What we’ve experienced in the past six months is an up/down market — one month we’re up, the next we are down (just like the Frank Sinatra song). If you look at total sales volume for 2013, we were up nearly 5% over the previous year, a not-so-bad place to be. Sales volume for January (compared with January 2013) was up a whopping 25%. And median sales prices continue to move upward, too, especially in Beverly Hills and Brentwood.
**************************************************************************************************************
All the “news that’s fit to print”—well maybe
If you follow the media and their reporting of real estate activity, you will have noticed last week that national home prices in the major markets were slowing, although Los Angeles and Orange counties (they’re combined in the Case-Shiller Index) showed an increase of just over 20% in median sales prices for the past year (December 2012 to December 2013). Several days later, you will read that “pending home sales across California rose 22.9% from December, the first increase since October”—according to the California Association of Realtors.
While these two stories are really quite similar in their findings, the actual #’s reflect a difference in how various state and national real estate reporting organizations gather and disseminate the information. For example, Case-Shiller takes a more “satellite view” of our real estate market, particularly by including Orange Country with Los Angeles County, which are for the most part two dissimilar markets. The California Association of Realtors is more focused, but again while the numbers are more accurate on a more precise basis, they also are still lumping the Westside with the rest of Los Angeles County.
There is some optimism from the California Association President:”We are starting to see a turning point in the market as 
we approach the spring home buying season”, Kevin Brown said in a recent statement. “Home sellers realize that home prices are holding steady and are gearing up for the upcoming season by listing their homes for sale.”
These types of across-the-board indexes are perhaps a harbinger for national real estate trends — but as I have stated many times, we on the Westside live in a unique market that features some of the world’s most desirable neighborhoods and communities. We have made it a practice — it seems – to and for the most part to counter national trends but not always. We are still short of quality inventory — as is the rest of the country’s premier residential areas, and we suffer the same fate with respect to rising mortgage rates and tight credit. But our sales prices remained strong for the first month of this year, and in the next Schiffer Line, we’ll report again on how we are doing in those specific areas.
Please remember: Keep your eye on your community, your neighborhood and the Westside in general. This is really where the action is — and yes, it’s a good time to buy and great time to sell.
***************************************************************************************************************
High-end market continues to be robust….connecting the dots
According to a recent meeting of Previews Directors at Coldwell Banker, (those agents who like myself, specialize in selling high end properties) the high-end market is very, very strong, and very active. On the Westside, “high-end” in CB terms is a home over $2 million. And because CB is the Number One-leading realtor in the US in the high-end market, we are getting a higher percentage of the upper-end clients (high net-worth individuals).
But agents continue to share their frustrations — lack of inventory on the Westside inhibits total transactions, although sales volumes have increased because the homes that are selling are priced higher and sell close or above their original listing price.
Connecting the dots
So, how are the dots getting connected? What needs to happen is an increased awareness that the “market is OK” — we’re not facing a fiscal crisis…. California’s unemployment rate is dropping….and the Fed’s stimulus is slowly being reduced because the economic recovery is moving forward, giving them the confidence that the stimulus package we’ve lived on isn’t as necessary as it once was (this is called “tapering”).
However, over-arching all of this is California’s drought and the effect it could have on our economic recovery, especially in the critical farm belt counties of San Joaquin Valley. Yes, we’re all connected.
********************************************************************************************************T******* Trends to focus on……buyers and sellers
Let’s face it: Interest rates are inching upward. Prices are moving upward. With the Fed slowly removing itself from the stimulus business, the economy is moving back to normal — we’re not where we were in 2007 or early 2008, but we are much better off than we have been. The trends all indicate that the Westside real estate market will remain solid through the end of 2014. Home prices will increase but we should not expect the 20-30% leaps in prices as we had several years ago. Those days are behind us.
The mortgage industry — while stabilizing — is still going to be tight on credit approvals, which can be a major headache for all. At Coldwell Banker, we work with First Capital Mortgage who works with a variety of lenders who can suit your mortgage needs and make it look easier than it really is.
****************************************************************************************************************
News from the mortgage front lines
No, we are not at war, but sometimes you might feel like we are in the middle of a never ending battle to get our economy 
rolling again. From the front lines or mortgage lending, we are seeing again how mortgage rates have an “inverse relationship” with mortgage backed securities (MBS). MBS pricing typically strengthens when we experience negative economic data or outlooks. According to mortgage lending experts, this will cause mortgage rates to drop. Conversely, MBS pricing will rise with positive economic data or outlooks. When this happens, mortgage rates will rise. As the economy continues to strengthen, we should expect rates to climb as it appears what is currently the case.
There are still some warning signs on the horizon if inventory continues to remain low and prices continue to rise—which means the economy is not recovering as quickly as many had hoped it would.
**************************************************************************************************************
Please so not forget that Daylight Saving Time begins on Sunday 9 March 2014 and it is a great time to also check your smoke detectors as well as your carbon monoxide detectors
***************************************************************************************************************
Please let me know how I might assist you or someone you know with any of your real estate needs, BIG or SMALL.
For more information on fun places to go and things to do, please go to my Facebook page, caroleschifferrealtor@facebook.com 
You must be logged in to post a comment.