Timely Real Estate News………………………………………………….1 September 2013
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Olvera Street’s 2 million visitors haven’t a clue……
For most of the 2 million tourists and Angelinos visiting our famed Olvera Street in downtown Los Angeles, it is just a 
fun-filled afternoon of strolling through the crowded passage-way lined with kiosk vendors plying their Mexican-motif dolls, clothing, and leather goods. Charming, Mexican-themed restaurants and taco vendors offer delicious treats and a cool margarita if you’re in the mood accompanied by the Mariachis.
As you wander down the Olvera Street, the smell of leather bags and accessories has always been a reminder of my childhood when I would go to visit my Dad’s chemical manufacturing factory (soaps & detergents) which was right behind Union Station. We would eat at La Luz del Dia which is still there. It hasn’t changed a bit since those childhood years, and I always thought this is what Mexico was really like.
Olvera Street has been at the ‘heart’ of Los Angeles since its earliest days (approximately 1818), but what most visitors don’t know is that Olvera Street is really not a street — it’s an alley off the main attraction — El Pueblo de Los Angeles Historic Monument, or the “Plaza area” which features three historic homes — Avila Adobe, the Pelanconi House, and the Sepulveda House. Founded by a group of settlers from nearby Mission San Gabriel Archangel, the initial siting of Los Angeles was along the banks of the Porciuncula River at the Indian village of Yang-na. But as the town grew and more settlers came in, the area’s historic buildings were in danger of being condemned. If wasn’t for Christine Sterling’s efforts in the 1920s to preserve our historic buildings and heritage, there would be no Olvera Street today.
Perhaps what is so fascinating about the ‘saving’ of our historic buildings and Plaza was the measures that were employed to save the area from condemnation….and it was Sterling’s passion and zeal that caught the eye of Los Angeles Times Publisher Harry Chandler who raised the money to save the Plaza area. Building materials were contributed by area businesses, but it was the donation of “volunteer” labor from the Los Angeles jails that provided the bulk of the work force….and as Sterling recalled later, her sense of desperation for financial support during construction: “One of the prisoners is a good carpenter, another an electrician. Each night I pray they will arrest a bricklayer and a plumber.” And it eventually all came together.
Of particular note is that Monday, September 16, Olvera Street and the surrounding Plaza and historic area will be celebrating Mexico’s Independence Day, known as Grito de Dolores or El Grito de la Independencia. But I can assure you, Mexicans everywhere will begin celebrating El Grito that weekend. (Cinco de Mayo is not a holiday celebrating Mexico Independence Day as many believe — it commemorates the victory over the French in 1862.)
Come down and enjoy the fun. It’s a bit crazy, but “crazy fun”.
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Credit Scores — they have your number
Even though the recession is behind us, it isn’t getting any easier to get a loan. In fact, in most cases, it’s getting more difficult as banks have tightened up their loan processing/approval requirements. The banks and lenders have the money, but they’re more cautious than ever. Why? One of the reasons is that they want to protect themselves by focusing on credit scores. While most of you know your credit score (or at least you may think you do)….lenders are using many different credit-scoring models to determine if you are creditworthy. Different models can produce different scores; however, most lenders use some scoring models more than others.
The FICO score is one such popular scoring method, and many — in these tough economic times — become obsessed with keeping and maintaining high FICO scores. Here is how our American public’s credit scores break out: 499 and
below (2%); 500-549 (5%); 550-599 (8%); 600-649 (12%); 650-699 (15%); 700-749 (18%); 750-799 (27%); and 800 and above (13%).
All three major credit bureaus use their own version of FICO scoring (Equifax, Experian and Trans Union). We all have learned that the higher the FICO score the easier it is to get a loan and get lower interest rates. So your FICO number becomes the lynchpin in getting a mortgage, buying a new car, or even applying for a job. Fo example, a person with a FICO score of 520 vs. a person with a 720 score would pay more than $110,325 extra over the 30-year loan. The monthly difference would be $307.
Credit scoring is very important. It is imperative to have you pre-approved for a loan before we start the home shopping process. That has become a ‘must-have’ in today’s competitive home-buying market. Your pre approval letter from your lender must accompany your offer, particularly in today’s’ sellers market, a seller probably won’t consider your offer without that important bit of information. That’s the name of the game today.
Protect your credit — stay on top of it. I always work with my clients to help them get loans and qualify — it’s a big part of my job. Even if you think you have great credit — don’t believe it until you get your most recent credit score. As a part of this, also think about your long standing credit obligations, i.e. car loans, credit card debt, college loans…. Many times a lender will require you to pay those obligations down or off before they will consider giving you a loan to purchase a home.
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We’re up, we’re down….you’re confused? Don’t let them wear you down
It’s common these days to see stories in your daily paper about the real estate market — it’s up, it’s down, and then on TV hear that the numbers are down and up and yes, I see and hear the same stories you do. There have been stories in the last couple of days that make front-page news that home prices have posted double-digit gains….home buyers have signed “slightly fewer” contracts during the last month and that pending sales index actually fell. It’s enough to make your head spin….. we all need to just deal with reality and that is why I share the stats with you on a monthly basis.. that is what is real in our world, not the national stats because many times what is going on here in West Los Angeles, isn’t really what is happening in Kansas City…
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Are we looking through the wrong end of the telescope?
One of the issues I mentioned in the above post is that what is happening here on the Westside is not necessarily happening elsewhere – but the way the media plays these national stories can make you suspicious of recent local stories where the 
news might actually be good. We are naturally prone and ‘trained’ to scan the headlines and jump to the next story, with the headlines still implanted – sales, prices up (or down). We sometimes need to turn the telescope around and look at our individual community to really assess what is the reality in our neighbor….the big picture usually never applies to us.
Each month, I present to you the neighborhood details on sales volume and median sales prices in each of the communities I report on — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood. Our sales for 2013 are ahead of 2012 by 10% (as of July 2013), and we’ll see what August brings us. The good news is that I am seeing is strong activity in the dog-days of summer which portends continued strength in our local housing market. One of the agents in my office had an open house in Westwood last weekend which had more than 100 groups through ….another nearby open house had a few less, but very robust….and another house had three offers, one was accepted although it fell out on Monday…..so there you have it. We continue to hold our own as we move into the last quarter of 2013 (my, how time flies).
Home prices rose…..according to Standard & Poor’s/Case-Shiller Index for the nation’s largest 20 cities, home prices rose 2.2% from May and 12.1% over June 2012 for the same periods in 2013. Western cities saw the biggest increases, with Las Vegas up 24.9%; San Francisco, 24.5%; Los Angeles, 19.9%; Phoenix, 19.8%; and San Diego, 19.3%. The big gains in the Los Angeles metro area, with its long history of booms and busts, should raise concerns, said Robert J. Shiller, a Yale economist and co-creator of the index. “That is one of the cities I would be more concerned about because it has a history of speculative volatility,” Shiller said. What he is referring to is that the intensity in the marketplace may be fueled by speculators who are pouncing on what appears to be lower-priced homes
that buyers are betting on rising substantially in the near future — not long-term holders of fine residential property. According to Shiller, this could create another “bubble” in Los Angeles because housing “is driven by psychology, culture and the stories we tell one another about real estate.
My advice: Stayed tuned to The SchifferLine. It’s your best source for real data on your neighborhood and community. Please call me at any time to discuss what you’re reading and what you’re experiencing.
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Home buyers signed fewer contracts in California…..
Yes, it’s true: In another story that might be of some concern — California home buyers signed slightly fewer contracts last month (July), as would-be purchasers face rising interest rates that are making homes more expensive, according to a new report.
The California Assn. of Realtors said Thursday that its pending sales index fell 1.5% in July from a year earlier. Over the month, the index inched down 0.2%.The swift housing rebound — especially in the state’s coastal regions — has shut the 
door on many, particularly first-time home buyers who often must compete with cash investors in more affordable neighborhoods.
Pending sales represent contracts signed but not closed, and provides a look into future sales activity. The pending contracts tend to close one or two months later. Last July, for example, sales of existing, single-family houses rose 7% from June and 1.5% from a year earlier. Again, these are statewide statistics and cannot always relate to the four communities I report on.
During the second quarter of last year, 51% of Californians could afford a median-priced home, according to the trade group. A year later, only 36% could do so. Also on Thursday, the Realtor association said distressed sales continued to decline in July, accounting for 17.1% of all existing, single-family sales. That’s down from 20.1% a month earlier. The
supply of homes was basically unchanged from June 2013, the association said.
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Luxury homes on a grand scale are the “stars of the show”
The world’s rich do love their luxuries, and homes on a grand scale top their list. According to a Coldwell Banker spokesperson, new homes in West Hollywood, Beverly Hills, Bel-Air or Holmby Hills are selling for more than $2,000 a square foot. Developers who are acquiring land at a fast pace are building spec homes in the 10,000 to 20,000 sq. ft. range, 
because that’s where the market is for luxury home buyers.
Trophy homes are still a tiny share of the market according the National Association of Home Builders. “We’re more worried about the fact that first-time buyers can’t qualify for a mortgage. That’s one of the reasons the markets are recovering so slowly,” stated Stephen Melman, an economist for the NAHB.
Buyers from all over the world, especially from China, Korea and Russia, are seeking homes in the “luxury category” and because inventory is down in the high-end, we are having to create “new inventory” — building the spec homes which are usually spoken for and sold before they ever hit the MLS.
Cash remains king….In the US, all-cash sales accounted for 31 percent of transactions in June 2013, up from 29 percent a year earlier, as median prices climbed 13.5 percent from a year earlier to $214,200, according to the National Association of Realtors. The U.S. homeownership rate maintained an 18-year low of 65 percent for the quarter ending June 30, according to Census Bureau data. Sales of U.S. homes for more than $1 million jumped 25 percent from a
year earlier while sales for less than $100,000 fell 19.6 percent, the real estate trade group reported.
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Ants are interesting critters.
They perform an important role in the environment – cleaning up dead insects and animals, transporting seeds and aerating the soil. They aren’t so interesting when they infest our houses though! Usually we reach for insecticide when ants become a problem; but there are more environmentally friendly ways of deterring ants that don’t necessarily have to involve killing.
Ant deterrent tips
Here are some things you may want to try before reaching for that can of insecticide, depending on the application: Pouring lemon juice around areas ants frequent; Sprinkle cinnamon or place in cheesecloth bags in affected areas. Baking soda can deter ants – pour a solid line in areas of activity and they won’t cross it; A ring of coffee grounds around sensitive plants can 
iscourage ants; A puree blend of orange peel and water can be applied to an area to discourage ants from crossing; Ants hate vinegar; so spray it around doorways and other areas they frequent to repel them. A small container of vinegar mixed with honey placed in affected areas appears to do the trick too; Pouring boiling water over their tracks (destroys the scent trail).;; Sprinkling a circle of ground cloves around pet food bowls.; Planting mint around vegetable patches, flower beds and around the house; Citrus oil is a good deterrent; it can soaked into a piece of string and place around scent trails.; Use a piece of chalk to draw a line over trails – again, the ants won’t cross it. Chalk also has the advantage of being able to be used on vertical surfaces
Ants invade for a reason – usually for food or water, so be sure to keep food items well secured and clean up after you prepare food. Also check plumbing for leaks, particularly under sinks. Dead insects can attract large numbers of ants, so check window sills and other areas where they may accumulate.
I know some of these tips sound strange, but they appear to be “tried & true”. Please let me know how they work if you try any of them.
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Temporary Life Changes
As some of you know I am very fortunate to have a 91 year old Mother who is for the most part more like someone in their 60’s! It is truly a gift! She is having some work done to her house where she lives by herself (painting, some general fix up, etc), so I invited her to stay with me while the work was being done. It has been great except for the tumble she took down some of the stairs in my house a week or so ago (Thank God for carpet with GREAT padding). Fortunately she did not hurt herself. But I must say it is a little different, fun but different having her with me.. I will miss her when she returns to her home next week.
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Happy New Year
For those of you celebrating the Jewish New Year, I wish you all a healthy, happy and prosperous one and please dip your apple in some honey for me
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