Timely Real Estate News………………………………………………….15 March 2014
*****************************************************************************************
2014 continues strong start — sales volumes, median prices up substantially on Westside
I know I said this last month, and the month before that and many months before — one month does not a year make.
But it is remarkable to see the sales volume substantially increase for the second straight month compared to a year ago. For the communities I normally report on, year-to-date sales through end of February was $387 million vs. $279 million for the combined areas of Beverly Hills, Beverly Hills Post Office, Bel-Air, Westwood/Century City and Brentwood. For
the past two months, we have seen a 38.7% increase in total sales volume, compared to a 22% sales volume increase in January when measured against the previous year, in the same two month period.
The majority of the increase came from Beverly Hills — nearly $90 million in total sales increase over the last year for the two-month period. Beverly Hills had one sale for $31 million and seven over $3 million (three over $10 million) in February and Bel-Air had a $22 million sale, and these two accounted for $53 million of that $90 million increase. The sales volume was not inconsistent with previous years where BH has always demonstrated that its larger estates attract some of the world’s wealthiest who are able to acquire these $20+ million properties. But there is a spill-over effect as well. Median sales prices continue to rise in most of these areas year-to-date.
****************************************************************************************************************
Median sales prices continue upward….
The lack of inventory is having a positive effect on prices — as median sales prices continue to rise. Beverly Hills showed a 106% increase in median sales price for February 2014 compared to February 2013 ( remember those big sales); Beverly 
Hills Post Office had a 27%; Westwood/CC had an 85% increase (more big sales) and Brentwood was 82% over the previous year. Bel-Air was down (9%) compared to February 2013.
Year-to-date, all five communities were in the positive for median sales prices — BH — up 36%, BHPO up 26%; Bel-Air up 21%; Westwood/CC up 45%; and Brentwood was up 12%.
Are these #s making any sense? Well, if you’re a homeowner or buyer you can surmise that each of the five areas are doing extremely well in seeing prices increase. But they’re not alone.
***********************************************************************************************
For some cities on the Westside, it’s as if the housing crash never happened….
Or at least as pertains to home values…….While we am seeing a continued march toward 2007 price levels on the Westside in the five communities I covered above, there are three areas that seem to have been passed by the housing bubble — these lesser-attention-getting communities just seem to have missed the “crash” after all. Venice, Palms/Mar Vista and Culver City — each having its own, vibrant identity but always living in the shadow of other Westside communities such as Beverly Hills and Bel-Air, continue their upward rise, matching their previous 2007 price levels — even exceeding them.
According to Data Quick in a recent Los Angeles Times article — of the 12 ZIP Codes where the non-inflation-adjusted 
median price has passed its bubble-era peak, six are in the San Gabriel Valley and one is in affluent Irvine. All of those areas are hubs for buyers from China looking to move to the U.S. or invest here. Another is” ritzy” Los Feliz, where homes near Griffith Observatory command top dollar.
DataQuick listed four other areas which are on Los Angeles’ Westside — Venice, Palms, Mar Vista and Culver City. Buyers from the area’s burgeoning technology industry — known as Silicon Beach — have fueled price increases, along with broader gentrification. I am beginning to see a lot more activity from Wilshire Boulevard south all across the Westside because as DataQuick points out, as prices increase in the more well-known, higher-priced neighborhoods, buyers move to adjacent areas where prices aren’t out of sight. Silicon Beach, which is the growing high-tech region stretching from Santa Monica south to Playa Vista, is generating a tremendous amount of demand from the tech industry. There was also an interesting recent article about real estate activity in the San Francisco area, where the “city” itself is becoming a bedroom community for Silicon Valley, and this is driving prices up within San Francisco itself.
Venice, Mar Vista/Palms, Culver City — tracking growth
I don’t want you to get cross-eyed seeing all these numbers — but they are the only indicator we have to measure our progress over the recession we are now coming out of — so, let me briefly cover these four areas for you:
Sales volume for these four areas (Mar Vista and Palms are clustered together by the MLS), sales volume for the first two months of 2014 was up 7% over 2013 — $85 million vs. $79 million. Median sales prices year-to-date show that Venice was up 6% with a median sales price of $1.325 million; Mar Vista/Palms was up 33% at MSP $1.100 million, and Culver City was up 2% for the two-month period at $740.0.
But median sales prices have climbed significantly for the two months when comparing February 2014 to February 2013 — 
Venice was up 31%; Mar Vista/Palms was up 28%, and Culver City was up 9% — all indicated strong, upward movement. Because these communities are showing strength in prices, the new move-ins are also attracting tonier stores, restaurants and cafes into their neighborhoods, which in turn, attract more buyers….it’s an evolution, for sure, in each of these areas. I have always recommended these neighborhoods because they have good residential areas, close to shopping and other community amenities, and they are affordable. “Affordability” is the key word today in these areas — and the activity we are seeing reflects their popular appeal. I began my real estate career selling property in these communities and have continued to love selling homes here.
**************************************************************************************************************
An interview with Carole Schiffer — Spring is here….time to get moving
This is the time of the year when most sellers come out of hiding, finishing their “spring cleaning” and getting their homes ready to sell. Buyers are anxious and if they have already entered the market, they know how difficult it is to find exactly what they want. Compromises may be order in today’s tight market. 
Here are some Handy Hints that might help you survive this Selling Season!
When is it a good time to put your team together?
If you’re thinking about buying or selling — you will need a “team” of experienced professionals who know specifics of your needs and limitations — and they can advise you every step of the way. Do not minimize getting solid advice “BEFORE” you enter the market — either as a buyer or a seller. I’ve been through this process a great number of times, and the best and smoothest transactions usually involve a well-coordinated team effort. So I recommend you pull your team together as soon as possible.
* The team should be headed by an experienced Realtor (me) and supported by your banker, your lender, your accountant and/or your business manager. Your Realtor will be responsible for managing the buying and selling process — each different and demanding, therefore, you need someone who has experienced both sides of a transaction — usually someone in the business for years such as myself, with a top-notch broker firm, such as Coldwell Banker. Get your thoughts and desires together as to what you need to resolve before you make a decision to buy or sell. For example, if you’re a buyer, you need to know what your financial parameters are. How much can you afford? Can you get pre-approved — a must these days — unless you’re paying cash? If you are paying cash, is it accessible? What are the interest rates? How is your credit score (do you have to clean it up?)?
* If you’re a seller, you need to do an inventory of what you need to get your home in “good-selling” condition. In today’s market, buyers are looking for homes that are in ideal condition. If you’re selling it “as is” (which every house is, but without you making any prior repairs, which I advise against as you really leave money on the table), consult me, your Realtor as to what you have to do to maximize the property’s value?
What are buyers looking for today?
* New construction. Buyers always love new construction — whether it’s a spec home or one that has been completely gutted and rebuilt from scratch. While it is not always possible to afford something brand new, it is always among the top favorites. Buyers are looking for something “bright, sunny, and shiny”. On the Westside, we don’t have new home tracts, per se, but there are builders who are buying tear-downs and rebuilding contemporary, ultra-luxury homes on lots in established neighborhoods. In many cases, these homes are sold before they’re finished….so check with me regarding their position in the marketplace.
* Buyers are always looking for a home that is in good condition, a home they can live in easily. Many times they refer to it as “ a clean house”. One of the buyer signs I noticed right off was when I first came into the business: When a buyer starts placing their furniture in the house to see how this home will work for them in their lives…..that’s when you know you have a buyer. Buyers are unique — everyone is different, and you can’t put them in boxes. I have had many buyers who know exactly what they want, but they can’t always verbalize specifics — “I’ll know when I see it!”– type of thing.
* Of course, have a “list” and profile of your specific needs, desires. But in this tight inventory, you may not find exactly what your want — so be prepared to compromise. Getting 8 out of the 10 “must haves” on your list, may be the best decision.
What do you see happening in real estate for the balance of 2014?
* I think the market is going to get stronger. We’ve already seen it on the Westside, especially in lower-priced communities. But it’s going to take time. Prices will continue to rise but not at the rates we’ve seen in pre-2007 or even last year. Inventory will go up some but there’s going to be a pressure on the market to produce more inventory –. Much of it has to do with reluctant sellers who are waiting for the pre-2007 price levels, but we’re already seeing that in Venice, Mar Vista and Culver City, and the upper end of the market (homes over $3 million) are still getting the buyers, many with all cash. Interest rates are going to be steady according to our partner at First Capital Mortgage…we are experiencing what we call a “normal” market.
How would describe the buyers you’re seeing today?
* They are frantic because they see how many other buyers are seeking the same property — the lower inventory has caused this “rush” — meaning that there is more demand than there is supply. So, this is why it’s important to pull your team together from the start of the process. It’s critical to be able to know your exact condition and qualifications BEFORE you enter the market — either as a buyer or seller. This is the first priority I focus on when I am working with new clients.
What kind of advice do you give to buyers?
* They are disappointed in what they see on the market — and they don’t know what to do. I give them total support, and I do understand their feelings. In today’s market, I take a lot of time to qualify my clients and give them the “state
of the market”. I especially focus on their financial and emotional preparedness….we have a game plan. It’s almost more important to be emotionally qualified — more than anything else! I have to always manage people’s expectations.
*Lack of inventory is everywhere — not just in Los Angeles. All the major cities and urban areas are dealing with lack of homes on the market. Yes, you have to be patient, but you have to be nimble, flexible, and be well prepared.
That’s the key — preparation. You have to be able to make quick decisions, especially in this market where there are multiple offers on many properties.
***********************************************************************************************
So, what now?
One of the major challenges I have in the market today is that “false expectations” will not overcome reality. Being well prepared — on all fronts from both a buyer and sellers point of view — is the key. Call me if you want to chat about this. There are some great opportunities out there, and as you can see by the sales volume and rising prices, sitting on the sidelines may not be your best choice.
***********************************************************************************************
What’s so good about Coldwell Banker?
Somebody said to me that we were the IBM of real estate. What did that mean? The fellow told me that picking Coldwell Banker as your Broker and me as their realtor was always the “best bet” — best reputation, best agents, best support and best outcome. Well, that impressed me. I have always thought of Coldwell Banker being the “standard of excellence” — and when Fred Sands (for whom I worked for 13 years) was acquired by Coldwell Banker in 2000, I was — at first — 
apprehensive. The normal thoughts flowed wildly through my brain — too big, too ‘corporate’, too what? I count Fred as a mentor and personal friend. But all of my thoughts and reservations were quickly dispelled, I must say, by the professionalism and friendliness of the Coldwell Banker management and team. They knew the “right stuff” and they were eager to help support me become more successful. That’s all I wanted. This continued growth has helped put me at the top of the ladder both within Coldwell Banker and my office… In 2013 I was number 4 in an office of 100 agents!!! Thank you for your help in making that happen!
Over the past 14 years, I have seen many changes (and several offices and consolidation), but we continue to be the market leader in all categories, and from the inside, I know why.
As one of two mentors for Coldwell Banker in our Brentwood Office, I see every new agent that comes aboard. We train them diligently — because we want to add to our family of having and being the best agents we all can be. We have both a legal and fiduciary responsibility to our clients and to our company. This is serious stuff.
Coldwell Banker is the largest residential broker in the United States, and worldwide, we have nearly 85,000 agents in 3,115 offices, in 49 countries and territories. We concluded 724,510 transactions sides last year and our total US sales volume exceeded $208 billion. We had over 20,000 transactions of $1 million or more — and many of those were right here on the Westside.
We have the most advanced online presence and sales support programs of any Realtor — and our reputation is backed by a skilled set of agents, managers, and support team of financial, legal, and marketing experts.
Please let me know how I might assist you with any and all of your real estate needs. Please remember I work all over the Southern California area, and that we have a worldwide referral source. For calendar listings, please check out my Facebook page…. www.facebook@caroleschifferrealtor.com
You must be logged in to post a comment.