Timely Real Estate News………………………………………………….. 15 July 2009
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And the Wheels Go ‘Round and Round!
The more things change, the more they stay the same, maybe
I’ve never been accused of being a negative person, and I’m always looking for that silver lining. Each month — as you know — I review the Multiple Listing Services statistics….any good news? Are there any pearls of wisdom I can glean from these numbers? Ah, ha! There is some good news from the June MLS numbers: Sales activity (volume) is actually on the upswing — seasonally adjusted — over 2008. Year-to-date sales volume for Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood — through June 30, 2009 — showed sales volume had increased 25% over YTD volume through the first six months of 2008. And that the actual sales price to original sales price comparisons for the same period was 102%, meaning that we are seeing prices are holding steady compared to the original asking price. That is great news.
The sales volume increase is really good news, because it means that buyers are coming back into the market — with more confidence, especially when you see that the days-on-market number is dropping as well. Yes, we continue to see the ups and downs in each area I cover as we have since I have been publishing the SchifferLine. It’s a fact of real estate life — no area is going to sustain either highs or lows in median sale price month after month. I am seeing more people at Open Houses and there are many more multiple offers than I’ve seen in the last year or so. So this is very good news.
In looking at the Median Sales Price for June 2009, Bel-Air and Brentwood were both up 6% over 2008, while Beverly Hills was down 5% and Beverly Hills Post Office was 13% down. In the Year-to-Date median sales price, Bel-Air was up 18%, while Beverly Hills was down 7%, BHPO down 14%, and Brentwood at 15% negative from 2008. Since the recession hit, we are continuing to see the median sales price bounce all over the place in each community. And the reason for this is that each community is composed of many different levels of housing — from smaller-sized homes that may average $1-$3 million to large estates of $10 to $30 million. Anomalies occur every month, and so the year-to-date figures tend to reflect a better view of how our home pricing is holding up. But compared to the rest of America, the Westside continues to outperform most every other area in the US. See? There are silver linings.
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Another rescue from the Los Angeles Fire Department, thank you.
We made the news at 11, as well as the news in the morning, noon, and early afternoon and prime time, plus the front page of USA Today and Los Angeles Times. This time it was a relatively small fire that started north of the Getty, which resulted in the evacuation of all guests and employees on Wednesday, July 8. Quick action by the Los Angeles Fire Department contained the fire in less than 24 hours, and resulted in no property damage. Sepulveda Boulevard was closed for some time. A total of 80 acres burned. Again, thank you, LAFD!!!!
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Scam artists have a new one….Treasury Notes
It’s not nice to fool Mother Nature…or the US Government. In these financially challenging times, it’s not surprising to see a new twist on scams foisted onto desperate homeowners. According to the Los Angeles Times last week, the latest scheme involves the use of fraudulent Treasury-related promissory notes and bonds as down payment. In most cases, the article stated, scam artists try to buy homes using worthless Treasury notes. One clue to the scam is that “private promissory notes” and/or “private offset bonds” usually have the signature of former Treasury Secretary Henry M. Paulson — private bonds and notes are neither backed nor guaranteed by the federal government, so the Treasury Secretary’s name would never appear on them in the first place. Crooks are getting routing numbers to create false checking accounts, and they use their social security number as the checking account number. The Treasury department never uses checking accounts for fund dispersal. So, sellers beware, and as always it is best to work with an experienced agent such as myself to assist you in guiding you to make sure this doesn’t happen. Desperate times make for desperate measures!
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The Appraisal Problem
Low appraisals are creeping into the market, bringing down home values
Complaints are rising from home owners, realty companies, and home builders over the growing trend for appraisers to “go low”. Banks who have traditionally used local appraisers for evaluating home values for new loans are now switching to appraisers who may not have local knowledge and/or are using a variety of comparables not normally seen in the past. What we are seeing is the inclusion of short sale, distressed transactions, and foreclosures which are on the rise in all areas, in the appraisal process. And what this does is greatly lessen the true value of a home that is in a good location and in good condition. These are anomalies in a rather strong, solid real estate market as we have on the Westside. Some of these low appraisals can knock off as much as $100,000 to $250,000 on the value of your home. Just beware of this issue — it can affect your equity, whether you are buying, selling or refinancing. Congress is dealing with this issue now, so we shall see. Call me if you have a question about appraisals in your neighborhood. I will be glad to get an appraisal for you at no charge.
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Interesting Concept for a Green Tip!
Low Carbon Diet – Locavores, eat your hearts of romaine out. Two home-grown farms agri- farms have taken root in Hancock Park, where property owners are swapping lawns and flowerbeds, for rows of heirloom tomatoes, chard, green beans and more. Heart Beet Gardening installs organic gardens throughout the Los Angeles area. In Hancock Park, instead of nurturing just the host family, the micro farms feed up to 10 families per home. Members receive a weekly basket of veggies left at their front door. The buy is $25.00 a week, and there is no carbon emission spent in traveling to our local farmers markets. Looking to convert? It is not cheap; the cost is anywhere from $1,000 – $4,000, but here is the kicker: If you host the garden, Heart Beet’s maintenance fees are discounted and those leafy greens are free… For more info. Please contact. Heatbeetgardening.com. (courtesy of Angelino Magazine) Anyone interested?
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Keep your eyes peeled and watch your mail boxes for the next fun contest in which the prize will either be another $100 gift certificate to the Hotel Bel Air, or to Universal Studios – your choice.. It will be coming in the next week or so.. In the meantime, enjoy the summer and please let me know if you or someone you know wants to see any of my wonderful listings or has any real estate needs or questions.
