Timely Real Estate News………………………………………….15 November 2010
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Fall Musings
One of things I love about this time of year is the changing color of the leaves. I don’t know about you, but it always amuses me when I hear people say “you don’t have seasons in Southern California”. It seems to be that everywhere I look — I see the changing colors, and they all are quite beautiful.
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Westside real estate continues upward trend….big sales in October
What would you expect? Beverly Hills is, after all, Beverly Hills — truly one of the unique communities on the Planet, and in October there were 13 sales over $2 million — not a record, but in these times, heads turn. There were six over $5 million — $10,280,000, $9,300,000, $6,650,000, $7,500,000 and one for $5,800,000….with another at $4,000,000. But if you want impressive performance, just drive over to Beverly Hills Post Office and see the home that sold for $19,500,000. Who says there are no buyers? They are still a good number of all cash transactions taking place. BHPO also had another for $2,500,000. Brentwood, while sales have been somewhat depressed in recent months, had three homes over $2 million — one for $2,750,000, another for $2,900,000 and $2,350,000. Bel-Air did not have any homes selling for over $2 million although they did have a positive month, and I know there are some transactions that are in escrow, and those sales will listed in the next month or so.
*Overall performance shows strength as we near end of 2010….
We continue to have strong increases in median sales prices in three of the four communities I report on — Beverly Hills’s median sales prices for single family homes year-to-date is up 2% to $3,212,000; Beverly Hills Post Office, with some whopping sales this year, is up 4% to $1,825,000, and Bel-Air has rebounded in the second half of 2010 with median sales price of $1,552,000 through October 31, 2010. These are the key indicators for price stability and we are seeing our home prices finally surpassing year-to-date #s for 2009. It’s been a long-time coming, but I am pleased to see that at least three of my communities I report on are ahead of last year. Brentwood, which has lagged behind the other three communities all year, is still down — 13% — from last year, but that’s nearly 33% better than it was several months ago when it was down by nearly 20% in median sales price.
Comparing October 2009 to October 2010, we find that Beverly Hills was up substantially — nearly 23% over last year’s numbers, with median sales average of $3,840,000. Beverly Hills Post Office was down 26% over a year ago, with an average of $1,620,000; Bel-Air was up 3% to $1,277,000 over October 2009; and Brentwood, again, was down 16% to $1,752,000 for 2010 over its average of $2,095,000 for October 2009. Influencing these numbers, of course, are the large estates that come on the market and are factored into the median average. For example, when a home sells for $19,500,000, and the median is near $1,620,000 for the month, it demonstrates that just one sale can have a dramatic impact on median sales prices.
What you must keep in mind are the year-to-date #s because these averages take into consideration the longer trend lines in your community. There is also the impact of the “shadow” inventory of the properties that the banks control, vis a vis foreclosures. There are some foreclosures in every community, and they do — and will continue to — impact the absorption rate as they come on the market.
In my office at our sales meetings, we have many conversations about motivating buyers to “make the plunge”. What are they waiting for? we ask ourselves. Generally, the answer is ‘having the right price for a property’. Today’s buyers are not convinced that prices are not going to continue to drop, and are prepared to “wait it out. Thus, the secret to get your home sold is to price it right from the “get go”, because if you want to generate the energy and excitement necessary to sell, you must price it right.
Many sellers say, “just bring me an offer and we will work with it”. Unfortunately that is not the mentality of today’s buyers, they want to work with a seller that shows they are sellers.
Please understand every neighborhood in every community is different. Not everyone has a $20 million home on its street, and when one sells for this #, it skews the entire area. What to do about evaluating your home’s value in these market conditions? Call an experienced Realtor (me, of course) to get an accurate appraisal that takes into consideration all of the factors in today’s economy. Again and again, having the right price is the key to selling your home.
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It’s the economy,stupid……mid-terms cause angst, anxiety, and hope?
With the economy recovering (according to economists — the great recession was over in June 2009), you would think the economy would not have been the issue in the mid-terms. It was. With California’s unemployment rate near 13% and over 17% in real terms, the recovery we are reading about doesn’t seem to resonate with our reality in the Golden State. So what are we doing about it? John Ciolino — Coldwell Banker’s in-house mortgage consultant, has a few choice observations that I want to pass onto you:
“The Federal Reserve Board made their much anticipated announcement regarding another round of “Quantitative Easing” or QE2, where the Fed will participate in purchasing Treasury Securities in a bid to keep the economic recovery on track. Last week, the Fed announced that they intend to purchase $600 billion in Treasuries, starting now and continuing through mid-2011, which equates to about $75 Billion in purchases per month. So how will this impact home loan rates ahead?
“We need to be mindful that the Fed initiated QE2 for three reasons. One, to help lower interest rates in order to spur consumer and business spending..Two, to help lower the unemployment rate via an economic boost. And three, to help push Stock prices higher. And all three of these factors will cause headwinds for Bonds and home loan rates down the road.
“As the Fed gets to work on putting their latest plan into effect – we can be sure that inflation readings in various economic reports will likely be more highly scrutinized by the markets. Upcoming reports will reveal whether the Fed will be successful in their quest to fight deflation, and create a level of Goldilocks inflation that is not too hot, not too cool… but just right. Ultimately, if inflation expectations creep higher, interest rates for long-term Bonds – like Mortgage Bonds – will rise as well.
This information is courtesy of John Ciolino on favorite “loan guy”, of First Capital Mortgage a division of Coldwell Banker.
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My nephew, Connor, faces life….sort of
Oh, to be young again. After graduating from high school last June in Vancouver, BC, , my nephew, Connor, and a friend decided that they would take up their parents’ gracious offer to take their “ gap year” and see the world — well, at least a good part of it. Starting out in September, Connor and (friends) set their sights on Europe — hitting all of the bright spots — Spain, Portugal, France, Italy, Switzerland, Dalmatian Coast, Amsterdam, Prague, London (just to name a few of his stops during the past five months)….well, they didn’t stop there. Connor/friend found their way to Turkey and then back over to Morocco where they rode camels from one end of the country to the other across the desert, celebrating his 19th birthday in Fez, Morocco. When my sister, Kim, heard that story she told Connor to burn his clothes (“…you’ll smell like a camel!”) and buy new ones, including his luggage. He did. Connor is now home to work and then get ready for his first year in college next fall. He came home last Saturday night and when I asked him what his favorite spot was, it was without a doubt Morocco! Meanwhile, his sister, Morgan, is finishing her senior year at USC (can you believe how time goes by so fast?)….and is really enjoying her last year. She expects to attend dental school probably in Vancouver, but is applying here as well. She has really gotten into the swing of college life and her sorority, and we are having a lot of fun with the competition of the UCLA/SC thing. What a joy it has been to have her here in Southern California. I’ll miss her.
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Energy Audit in Home Inspection Report
Another one of the new laws going into effect on 1 January 2011
As you probably know, one of the contingencies in a transaction is the buyer’s ability to obtain a physical inspection of the property they are purchasing. This process hiring a physical inspector, mold inspector, fireplace inspector, sewer line inspector and depending on the location of the property a geological inspector as well. Beginning January 1, 2011, a home inspection and inspection report may, upon a client’s request, include an audit of the energy efficiency of a home, according to the standards of the Home Energy Rating Systems. In addition it is generally the Seller’s responsibility to provide the Buyers with a retro fit inspection and notice of compliance for low flow toilets, gas shut off valves, smoke detectors, and now effective CO2 detectors as well.
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Are microfiber cloths green?
Microfiber cloths and the environment
It’s hard to escape the buzz surrounding microfiber cloths over the last couple of years.
What is a microfiber cloth? As the name suggests, the cloths are made from incredibly small and lightweight fibers; with a single filament 9,000 meters weighing a gram or 0.035 ounces per 5.6 miles.
The tiny spaces between the filaments are part of what gives them their cleaning power. Whereas a normal rag tends to push materials along, causing smearing, microfiber cloths pick small particles up and draw liquids away from a surface through a wicking action. Their tendency to become electro statically charged also helps with attracting dust.
A microfiber cloth can hold up to seven times its weight in liquid.
What are microfiber cloths made from? Most microfiber cloths are made of polyester, polyamide or other polymers such as nylon. These compounds are derived mainly from crude oil or coal. Aside from the environmental issues associated with creating these plastics, burning of materials such as nylon can produce toxic smoke. Additionally, these materials aren’t readily degradable and will be with us for some time to come.
As for recycling, while polyester and nylon can be “recycled” or more accurately, down cycled, a mix of different fibers in a microfiber cloth would see it being unsuitable for recycling..
So what’s the advantage environmentally speaking? As paper towel is popular in the kitchen for mopping up spills, the idea is a microfiber cloth can be used as a replacement. A well cared for microfiber cloth should last for years, which could be equivalent to hundreds of rolls of paper towels.
The superior cleaning action of a microfiber cloth can also translate to less in the way of cleaning fluids needing to be used.
Microfiber cloth care Microfiber cloths used specifically for dry applications such as dusting should be shaken out after use. When used primarily for wet applications, they can be rinsed in warm water with a little laundry detergent. If thrown in with general washing, it’s important not to use a fabric conditioner in the load as it will coat the fibers and make them less effective. You probably shouldn’t risk chucking an older microfiber cloth in with your general wash in case it chooses that moment to start falling apart and you wind up with fibers all over your clothes. The cloths should be kept dry when not in use.
The verdict Microfiber cloths may not be as great as some would make them out to be, but the tradeoff between their origins and what they can offset in terms of paper towel and cleaning fluid consumption makes them a useful part of your green cleaning kit
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Just a reminder, I have some wonderful properties available for sale and for lease in Bel Air Crest and in Mountaingate for your consideration. They are all easy to see. Please contact me if you or someone you know would like to see any of them.
