Timely Real Estate News……………………………………………… 15 August 2008
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Summer Olympics Drown Summer Doldrums
I can tell you that watching the 2008 Olympics in Beijing reminds me of my wonderful trip there last year when I spent three weeks traveling throughout the country. Such a fascinating country — the people are so warm and hospitable…the landscape so spectacular and different from here….but it is the pageantry of the Olympics, athleticism, and beauty that draw me to the Olympic telecasts. What continues to impress me are the stories of the individual athletes — from all over the world – who have overcome adversity and challenges to reach for the golden rings of the Olympics.
The amazing “side” story, of course, is that much of China is also on display. We see many people from all over the world coming here to buy property on our Westside, but I wanted to see how the Chinese real estate market is doing. What I discovered was another spectacle of out-of-this-world market of Olympic proportions. According to Realty Times (April 2008)…”it is estimated that China’s residential building boom accounts for more than 100 billion square feet per year. The boom began happening some time ago, as evidenced by an article having appeared in a 2007 Wall Street Journal edition that claimed that China’s 20-somethings are finding it possible to purchase their own homes. It is estimated that homeownership rates are as high as 80 percent in the cities, topping U.S. numbers.” Those are, indeed, amazing statistics. When I was there, we saw a number of developments of housing tracts similar to that which we have here, which in fact are being designed and built by Americans, from Orange County in fact. These homes are in many ways replicas of what we have here, large rooms, and all of the modern conveniences… We saw this in the outskirts of both Beijing and Shanghai. They are selling very well and quickly.
In Time magazine’s online edition (8/16/2008), Time’s Shanghai reporter told of the challenges of finding decent rental housing are Herculean — prices are never static — they even go up after you have a signed lease. Landlords and owners are aggressive and not bashful in telling you that what they quoted is no longer valid. China’s economy and real estate market are on steroids, something that wouldn’t be allowed in the Olympics.
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Foreclosures come and go….Westside still relatively calm
Foreclosures nationwide are up 55% (LA Times, 8/15/08) but again, the Westside is swimming up a different stream. Yes, the Westside is not immune to foreclosures, but data for January-June ‘08 show that foreclosures are actually down 22%, from 2007 and there were not that many. In 2008 (through June 30), there were 18 foreclosures (single family residences and condos) in the four markets I specialize in — Brentwood, Beverly Hills, Beverly Hills Post Office and Bel-Air. Last year at this time, there were 22 foreclosures. A total of 133 owners received default notices this year, but 108 of these were “cured” either re-financed, sold, or payments caught up to date. The number for 2007 was 130 default notices. Once again, we’re in our own little world — a micro-climate that continues to buck national trends.
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It’s Fire Prevention Awareness Time….
On the morning of November 6, 1961, fire swept across our hillsides….from Stone Canyon to Mandeville Canyon….consuming nearly 6,094 acres, destroying 484 homes. The Bel-Air/Brentwood fire was one of the worst in Los Angeles’s history according to the LA Fire Department. Since this landmark disaster, the City of Los Angeles and residents have taken steps to insure this never happens again. Through new fire regulations, improved hillside fire trails, fire-resistant construction and design, and constant monitoring by the LAFD, we have been fortunate in not seeing this level of fire rage across our communities.
We are just entering the most dangerous period of the year for fires.
The LAFD is vigilant in protecting our homes and mountains — but they are encouraging all homeowners to take some very simple, life- and home-saving steps so that you can avoid any disaster by fire. As reported in the Los Angeles Times, these are new standards that were imposed for new construction by State of California in 2008. While we certainly cannot rebuild our homes, we might take some suggestions as to how we might better protect ourselves.
1) Eaves must be enclosed and materials must be ignition resistant;
2) Install dual-pane windows — one must be tempered glass;
3) Deck supports must be enclosed to within six inches of the ground; must be of ignition-resistant material;
4) Roof fascia and sheeting must be fire resistant; and
5) Defensible space must be free of brush or debris and must extend 100 feet or to the property line;
6) Purchase some of the gels that are available to be sprayed on your home if there is a fire in the area, and there is approximately one hour before it would reach your property. There are a few products on the market that do this as well as an insurance company that offers this service, I personally have Barricade Gel which can be purchased through their website…. Barricadegel.com
For your information, here at Bel-Air Crest our clearance of the slopes is 200’ rather than the required 100 feet just to give ourselves that extra protection. We have also discovered that the majority of the fires that happen around here are caused by cars that roll off the freeway, onto the brush… so with Cal Trans’ permission, we have installed a concrete shoulder as a barrier as an extra means of protection. I encourage all of you to beware of the fire dangers in our area and to protect your home.
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Green Tips – Home Composting Made Easy
Although today’s generation has been equipped with the education and the ability to reduce landfill, we are still producing more landfill than necessary. Such landfill sites become danger zones, and not only for the generations ahead they also emit 10% of the poisonous gases that contribute to the greenhouse effect. They cause land instability, soil and groundwater contamination, odors, and fire hazards. In order to reduce the amount of waste that is left for landfills, more re-use and recycling of waste products is imperative.
An easy way to reduce household waste by 30% is a kitchen composter. The Max Air kitchen composter bin is a biodegradable bag that prevents the growth of fruit flies. All scraps can be thrown in this bin liner, and when full it can be added to your garden compost bin, where it will then begin to break down. An easy and simple way to start making a difference, and even your children can actively help. Fresh, clean fertilizer for your garden; less waste for landfill; clearer conscience: all for under fifteen dollars..
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Thank you as always for all of your wonderful comments and thoughts about the Schiffer Line.. A great deal of thought goes into it, and the feedback is greatly appreciated. Please don’t forget, if you have any real estate needs that I can help you with please don’t forget to COUNT ON CAROLE
By the way, I have a few properties that are not listed for sale both in Bel Air Crest and Mountaingate. Their prices range from $1,900,000 – $6,500,000. If you have any interest, please let me know.
Remember to: COUNT ON CAROLE FOR ALL OF YOUR REAL ESTATE NEEDS!!!
Carole
