Timely Real Estate News…………………………………………. 15 November 2009
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There is some good news….Westside real estate sales are climbing.
Let me make it very clear : We are making progress in the four communities I report to you about — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood. Please remember, I work all over the city, but just give you the information on these four areas. Sales, while still down from 2008, are gradually inching upward towards matching its previous year’s total sales volume. The four community’s total real estate sales were $1,160 billion, down only 13% from October 2008. That’s nearly a 50% leap in sales improvement, when the four areas were down just over 22% when you compared September 2008 to September 2009. Increased sales activity clearly demonstrates in the market’s growing strength as we move into 2010. Yes, there is some foreclosure activity that is impacting the sales numbers, but on the whole, activity is up!
On the good side….median sales prices from September 2009 to October 2009 show improvement as well — Brentwood led the way with a 49% increase in medium sales price over last month; Bel-Air showed a 1% increase. Beverly Hills was down 9% and Beverly Hills Post Office was off 13% for the same month-to-month period. When you compare October 2008 to October 2009, the medium sales price in Beverly Hills really performed well, showing a 57% increase over last year’s monthly figure (there are a few large sales in there that naturally spike the figures); but Beverly Hills Post Office was down 36%, Bel-Air down 42%, and Brentwood showed a decrease of 6%.
What is disturbing, however, is that median sales prices through October 2009 continue to show sluggishness — Brentwood was down only 5% for the year-to-date period; Bel-Air was down 19%, Beverly Hills Post Office was down 13%, and Beverly Hills was off by 12%. What does this tell us?
The steady increase in sales volume (nearly a 50% improvement over last month) goes beyond additional foreclosed homes (a suspected lower-than-normal sales price) that get thrown into the mix: There are more and more buyers in the market, and depending on where they find the best opportunity, the area is going to reflect the current pricing tendencies of sellers.
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Likewise, the bright spots continue to be the number of homes generating multiple offers. For example, one of my clients found a delightful property in Beverly Hills — it was love at first sight when we saw it. We knew that the home was probably worth more than the asking price — $1,195,000, and we made an offer that was substantially over that — and more importantly, my client was a very, very savvy and strong buyer — all cash, short contingency period, and a short escrow. The sellers ended up with 17 offers, but we prevailed because not only were my clients the perfect buyer for the house (they loved what was there rather than wanting to tear the house down), and they have a strong agent representing them, who has an excellent relationship with the listing agent, and he wanted to do business with me. . In the end, we won this battle because we made a very informed offer that took into consideration all of the competing issues and offers that might come to the table. I was able to point out to my clients the “needs of the seller” as well as the existing market conditions, particularly when multiple offers are involved. In the end, it is the quality of the offer, not the quantity. Also working with an agent, such as me that has a good reputation in the agent community goes a very long way in getting what works for my client (You!).
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Another issue that is working for us is the continued low interest rates. While credit continues to be tight, qualified buyers are taking advantage of rates under 5% and stepping into a market that is ripe for expansion — so why sit on the fence? As I have said (and many other national real estate gurus have also observed)….if you sit on the fence for prices to come down, and then decide to jump in — it’s probably going to be too late. Have we hit the bottom? Well, the economic landscape remains somewhat confusing — yes, we’re officially out of a recession but there is a huge “but” — unemployment remains high in California and that worries economists, especially those at UCLA’s Anderson School (Forecast).
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Mortgage applications fall to lowest level in nine years
The volume of mortgage loans to buy property fell to its lowest point in almost nine years last week, according to the Mortgage Bankers Association. The MBA’s market composite index, a measure of loan application volume increased 3.2 percent compared to the prior week, due to an 11.3 percent increase in the volume of applications to refinance. The purchase index fell by 11.7 percent. Applications to refinance made up 71.5 percent of all loan application volume during the week, even as the average contract interest rate for a 30-year, fixed-rate mortgage dropped to 4.90 percent from 4.97 percent a week earlier. There are a great deal of all cash buyers out there, in fact, a good number of my transactions are in that category.
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Realogy — Coldwell Banker’s parent — shows a major profit for last fiscal year.
Perhaps many of you don’t know, but Coldwell Banker’s parent company, Realogy Inc., has been making headlines lately with its third quarter earnings report. According to Richard A. Smith, CEO, Realogy had net revenues of $1.2 billion, and earnings before interest, taxes, depreciation and amortization (EBITDA) of $253 million, with a net income of $58 million, surpassing its September 24 estimates. What this means to me and my clients is that I am backed by a very solid and successful company who has the ability to support its agent base with cutting-edge technology and marketing depth. In an era of insecurity, my clients can count on a company that provides the best support in the marketplace….and this is a very enviable position to be in.
********************************************************************************************************************************************* 11 fast ways to help you sell your home.
I’m a big fan of Barbara Corcoran, who is a consultant to the Today Show on NBC. As the CEO of one of the most dynamic real estate agencies in New York, Barbara shared with Today audiences these handy tips, which I am passing on to you: 1) Make sure your front yard — grass, trees, flower beds and landscaping — are spruced up (framed); 2) Paint or replace your mailbox; 3) Replace the hardware on your front door and paint it and all the trim; 4) Clean up and organize all of your closets — if prospects see a dirty closet, trust me, they will think there is something wrong with the rest of the house; 6) Keep all wall colors neutral — it is easier for buyers to “picture themselves in the house,” with simple color schemes; 7) Install a backsplash in your kitchen if you don’t already have one; 8) Chandeliers should be simple, elegant and new — replace it if you have to;. If you plan on taking them with you, take them down before the house goes on the market, I promise you that your potential buyer will want it too, and if they don’t see it, they won’t want it; 9) Change the switch plate covers throughout the house; 10) Install and or replace base boards and crown molding; and 11) replace all toilet seats (You have to have low flow toilets in the City of Los Angeles and Beverly Hills when you sell your home). .
These are relatively simple, no-brainer things you can do that don’t cost an arm and a leg, and you have heard of this stuff from me before. Sellers beware. Buyers are very hip and sensitive to all of these top-of-mind issues I have pointed out.
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Community Meeting for 405-Sepulveda Pass Widening Project. Must attend!
This is a “must attend” meeting for all residents in the Sepulveda pass area who want to have a say in what is happening in the area. This meeting will be this coming Thursday, November 19, from 6:00 p.m. to 8:00 p.m. at the Skirball Cultural Center. It is critical that we have a good turnout — the agenda includes these items: Construction schedule, milestones, and upcoming activities; resolving issues (Ombudsman); emergency evacuation planning. For more information, call the Community Relations office — 213-922-3665.
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Is there a turkey in your future? Thanksgiving and the Holidays always bring joy…..
For many, Thanksgiving is the seasons’ best holiday. My family celebrates two Thanksgivings.. The Canadian Thanksgiving in October, and the American Thanksgiving in November, so we have double the blessings and fun! One of my favorite things is the fragrance of a turkey roasting in the over. I hope you have a wonderful holiday with your family as I will with mine.
So for those of you I won’t see before the holiday, Happy Thanksgiving!
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Green Tips (some of this is amazing! – Enjoy)
Interesting News you can use about Vanilla!
Vanilla can be used in some instances instead of chemicals and products that are harsh on the environment, so if you have a bottle of vanilla extract or essence kicking around that is past its best before date, don’t throw it out :).
First, a little bit about vanilla.
Vanilla is a flavoring derived from the pods of orchids that have their origins in Mexico and surrounding regions. These days, it’s used mostly for flavoring foods, but it used medicinally as an aphrodisiac and to treat fevers. The compound vanillin is the major component responsible for the flavor and smell of vanilla. Vanilla has been shown to increase adrenaline levels and I was surprised to
learn that it’s considered by some as truly addictive. It’s difficult to say how credible the claim is as I wasn’t able to find much further information. Vanilla is also still widely used today in aromatherapy.
Natural vanilla
Natural vanilla is usually purchased as either whole bean, oil, powder or an extract in a solution containing alcohol. In aromatherapy, vanilla essential oil is used.
Synthetic vanilla
With demand of vanilla exceeding supply, much of what we buy today is synthetic vanilla or a combination of pure vanilla extract and imitation vanilla extract. Artificial vanillin is made from either guaiacol (from clove oil, nutmeg, cinnamon, and bay leaf) or from lignin-containing “brown liquor”, a by-product of a process for making wood pulp. Most imitation vanillas only contain vanillin, which is just one of many identified aromatic components of the real vanilla beans. Expect to pay far more for the real deal and you can also buy organic vanilla extract these days which is again more expensive.
Making your own vanilla extract
If you want to be sure about what you’re getting, make your own vanilla extract! Add 4 vanilla pods to a jar containing a cup of vodka. Seal with an airtight lid and then place in a cool dark spot and allow to sit for two months, shaking the jar occasionally. From what I’ve read on the topic, that’s all there is to it and as the pods are so potent, you can keep adding vodka as you use it.
Alternative vanilla uses
If you have old vanilla essence lying around you don’t want to use for cooking, here’s a few ideas. As always, do spot tests before going all out with any of these suggested uses.
– Vanilla can be used as an insect repellent. Add 1 teaspoon of vanilla extract to a cup of water. Put in a spray bottle and spray on your skin, then rub it in.
– Remove odors from microwaves, fridges and coolers by wiping down the insides with vanilla extract
– For odors in other areas, soak a cotton ball in vanilla extract overnight, then place on a jar lid in the affected area. This should not only help neutralize the smell but also act as a green air freshener.
– Use vanilla extract to freshen up potpourri (but vanilla oil is better for this)
– Use it (sparingly) in place of perfume. I wouldn’t mind smelling of vanilla, but it would make me hungry all the time!
– As vanilla extract usually has high alcohol content, it can be used for removing sticker residue
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Know someone who would love to spend the holidays in their new home or dreaming of their moving day after the first of the year???? Let’s talk!
