Timely Real Estate News……………………………………… 2 September 2008
*************************************************************************************************************************************
Looking for the silver lining….where art thou?
Amongst the dark clouds hovering over the nation’s real estate market, one must always maintain an honest, but positive point of view of what lies ahead….by looking in the rear-view mirror. Our monthly Multiple Listing Service statistics, issued the first of each month, reflect a snapshot of what has been going on in the four communities I specialize in — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood. I look at several factors which indicate ‘strength of the market’ — median sales prices, sales volumes, and days on market (DOM).
Over the course of the past several years, Beverly Hills has consistently performed well in all categories. For example, median sales prices for January thru August, 2008 (YTD), Beverly Hills is 7% higher than in same period in 2007. Bel-Air is up by 6% for same period. Beverly Hills Post Office is down 15% and Brentwood is down a modest 6%. But these communities often fluctuate — some are positive, some are down each month.
When we look at sales price, this past month (August 2008) was not a good month (vs. August 2007) — Beverly Hills’ median sales price was down 41%, Beverly Hills Post Office was down 28%, Bel-Air was down 31%, but Brentwood was up 9%. And here is another twist on the MLS #s — Beverly Hills Post Office was up 11% over July 2008 #s, while the other three communities were all down compared to July 2008. In doing a little research, there was one sale in August ’07 in Bel Air of $16,000,000 – so that obviously skews the percentage some… So, go figure.
Another key indicator is the sales volume for these communities — comparing 2008 YTD total sales vs. 2007 — these four areas are off by 32% — which is a bit of an improvement since total sales for this year were down as much as 51% over 2007. Between the price of $1,000,000 – $40,000,000 in August there were 14 sales in Beverly Hills vs. 10 in ’08, 12 in Beverly Hills Post Office vs. 4, 19 in Bel Air vs. 4, and 13 in Brentwood vs. 4.
Days on Market — an average that tracks how long sold homes have stayed on the market before closing escrow — were average for Beverly Hills and Bel-Air — in the 60-70 day range, but Beverly Hills Post Office jumped from an average of 143 days in 2007 for August 2007 to 224 DOM for same period in August 2008. Bel-Air went from 56 DOM in 2007 to 142 in August 2008.
So, where is the silver lining? Two out of four areas are up over last year for median sales price YTD (Beverly Hills and Bel Air)….Brentwood is up for August 2008 (vs. August 2007), and Beverly Hills Post Office is up over the previous month….so there is a silver lining on each area’s cloud — and so perk up, folks, we’re still doing amazingly well in spite of a soft market. Could we do better? Absolutely, and I’m doing every thing I can to improve our market and move property for my clients.
*************************************************************************************************************************************
Taking a step back — putting the numbers in perspective
When you combine all four communities total real estate sales are off by a large margin (32% over 2007 for the year) no matter how you slice the statistical pie. First Republic Bank issues their quarterly Prestige Home Index which is based on a portfolio representing a cross-section of homes valued at $1 million or more (based on a baseline in 1995). For each home in the portfolio, values of properties were traced back to 1985 using a regression analysis and then calculated for each year as well as for the two quarters of 2008. For each home, a market evaluation was performed for each time period taking into account repeat sales, comparable sales, and characteristics such as size of house. The Index for the 2nd quarter of 2008 show that Prestige Home Index was $2,375,119, off 3.8% from its highest point of just one year prior — June 2007 — of $2,468,357. Common features of the ‘luxury home’ include 3,000 to 6,000 square feet, three to six bedrooms, and three to six bathrooms. One the more interesting observations they made, which I noticed first hand is that the over $10,000,000 market is very strong. We had at least 5-6 well qualified buyers a week looking at my recent listing of $12,000,000.
In comparing the sales volume from July ’07 to July 08 in my Coldwell Banker Brentwood Court office — volumes are down by just 12% .
*************************************************************************************************************************************
Getting the most for your home
My observation is that if a home seller wants the asking price….the home must be in perfect condition, otherwise buyers are likely to either submit low-ball offers or walk away. Maximizing your home potential’s value in today’s market requires a skilled agent wise in today’s market conditions. Knowing how to properly position a home for sale in a challenging market is something I’ve been doing for the past two-plus years. And I continue to thrive in this market….so if you need a no-obligation review of your home’s potential, please give me a call.
Getting out of my geographical box
Over the 20-plus years that I have in the real estate industry, I have had the privilege of serving clients throughout California This is a very broad collection of wonderful neighborhoods, from the glitz and glamour of Beverly Hills to the relaxed, out-of-the-way Malibu seaside community. From the quaint areas of Mar Vista and Culver City to the waterways of Marina del Rey and the canals of Venice. From Orange County to San Diego.
I have served the Santa Monica and the Pacific Palisades communities for as many years as I have been selling real estate as well. So, if you are in need of real estate advice anywhere in the West Los Angeles region — or beyond — from someone who has spent ‘decades’ here — then I am here to serve your needs.
**************************************************************************************************************************************
Saving Energy when cooking
We do use a heck of a lot of energy when cooking – think about how long it takes to bring a pot of water to boil on the stove – turned up full blast, it’s chewing around 2400 watts per hour. While there may not be noxious fumes pouring out of your kitchen, they are produced elsewhere; for example, where your electricity is generated. Coal fired electricity generation is a major contributor to carbon dioxide emissions; the main culprit causing climate change. There are some ways to work around the inefficient appliances in our kitchens; here’s a few tips
1. Cover up
Where possible, cover up your pots and pans. This will help your food to cook more quickly and generates a higher temperature allowing you to turn down the stove.
2. Taking the heat off
Instead of turning off the stove when the food is done, experiment a little with switching it off just before the food is cooked. An electric fry pan can be switched off a minute or two earlier, and oven up to 10 – 20 minutes depending on how well it’s insulated and sealed. It may not sound like a huge saving, but particularly with electric stoves, the dollars will add up.
3. In the raw
Experiment a little more with raw foods. You’ll not only save electricity and gas, but nutrients which cooking destroys.
4. Be prepared
Always ensure your ingredients are prepared as much as possible for turning on the heat.
