Timely Real Estate News…………………… 15 February 2011
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The Oscars are coming…the Oscars are coming
On Sunday, February 27, we get a chance to view fashions and the glamorous stars that wear them on the Red Carpet and finally getting to see who actually wins an Oscar. We don’t have Marlon Brando refusing to accept an Oscar (as he did for “Last Tango in Paris”). .Just a little bit of Oscar history; the first Academy Awards Ceremony was held on May 16, 1929, at the Hotel Roosevelt. It was hosted by Douglas Fairbanks, and the after-party was held at the Mayfair Hotel. Oscar stands 13.5 inches high and weighs 8.5 lbs and depicts a knight rendered in Art Deco style, holding a crusader’s sword standing on a reel of film with five spokes. The five spokes represent the original branches of the Academy — actors, writers, directors, producers and technicians.
This will probably be the first year that I wonât be watching as I will be in Las Vegas celebrating my birthday, so I will miss the Oscar parties where everyone ballots and bets on who makes the most correct choices for the winners. Good luck if you are attending one of those fun parties!
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Luxury home sales jump — so says LA Times. But you heard it here first…..
It’s nice to know that we sometimes get things right in The SchifferLine. As the Los Angeles Times reported last week, luxury home sales jumped 21% in California — which is not news to SchifferLine readers — we told you that last month in our January 15 edition. We had a good 2010 relative to the past three years — combined homes sales were up nearly 20% in the four communities I cover — Beverly Hills, Beverly Hills Post Office, Bel-Air, and Brentwood….and each of three areas averaged a 7% median sales price increase, except for Brentwood, which struggled for most of 2010.
According to Los Angeles economist Christopher Thornberg….”we’re pretty sure we’re at the bottom for home prices. Even if prices fall further, if you are borrowing — buying today makes a lot of sense because interest rates are (still) incredibly low.”
Two other reasons for the rebound is the return of the jumbo mortgage market and a comeback in the stock market he said. Cash purchases were also up, the highest year since 1994. But even cash purchases can be motivated by low interest rates — “a lot of cash offers are done on the basis of the person trying to get a leg up and then they turn around and re-finance.”, Thornberg said.
It is no surprise to yours truly — I have had one of the most active years in my real estate career — perhaps it was the Real Estate God, good Karma, but I suspect it is just hard work and sticking to my game plan that has proven successful in these very trying and challenging times — giving my clients the best possible service 24/7, effective and efficient communication on every level, knowing how to deal with difficult transactions when creativity is demanded, and yes, even The SchifferLine plays a key role. One of my new clients remarked she was debating between working with me and another agent who really did not market themselves that effectively, and she felt that “….if you can’t market yourself, than you can’t market my property.” And that’s true. I’m not here to blow my own horn — but the facts are that it is difficult to keep up with market trends. That’s why it is extremely important to choose a Realtor you can trust — who knows your neighborhood – inside/out – and who has a proven track record. I cannot tell you of the number of unique circumstances that cropped up these past three years because of the recession, lender fallout and incompetence, and buyers and sellers who are constantly being whipped back/forth over what to do. Patience, in this industry, is, indeed, a virtue. I never have enough of it — but I try.
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January 2011 continues strong trends from last year….
The first month of every year is always a sneak preview of what lies ahead….and January 2011 was no exception. We are continuing our trends from 2010 with median sales prices; however, volume is down 11.6% in the four communities I report on — Beverly Hills, BHPO, Bel-Air, and Brentwood. That’s not too alarming, though — when you look at the sales in the same communities for 2010 in January, there were three large estate sales that really affected the comparison between January 2011 and January 2010. Bel-Air had a $14.8 million sale in 1/10; Brentwood also had one for $14.2 million; Beverly Hills Post Office had one for 23.5 and Beverly Hills had one for $23 million — all the rest of the sales were between $990,000 and $5-6 million. So, volumes went from $96 million down to $86 million for January 2011 year-to-date.
The big winners for median sales price performance for January 2011 were Beverly Hills, which had a 46% increase and Bel-Air had a 24% increase over January 2010. BHPO was down 25% (although up for all of 2010)….and Brentwood was down .5% in comparing January to January. Brentwood’s performance, hopefully, portends a positive trend for the balance of the year since its median sales price was languishing under 20% all last year.
When you compare month-to-month stats — you’ll find that Beverly Hills was up 7% over December 2010; BHPO was down 26%; Bel-Air was up 12%; and Brentwood was up a strong 17%, which is good news. I’m counting on Brentwood to have a great year.
I can’t know what else you’re receiving in terms of real estate news as it pertains to your community, but I try every month to give you insight and the best statistics available. The Multiple Listing Service (MLS) is not always the most efficient in tracking these numbers — mainly because they allow the stats from a property that was listed with two different agents to be counted twice, rather than just once. Every time I come across this situation, I figure it into the stats and percentages I give you. Since I have been analyzing these #s every month for over five years, I believe that this is the best information you can get on a month-to-month basis. If you would like any other information, please e-mail me — I get questions all the time, and am only too happy to oblige your request.
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 So, has the market bottomed out? Advice from experts — don’t wait to jump in
Reading any of the dailies — online or offline — you’ll read that now is not the time to sit on the fence. If you wait too long, you’ll miss out on the bottom and only regret it later. According to Michael Corbett, author of “Before You Buy: The Homebuyer’s Handbook for Today’s Market”….if you’re into bottom-fishing, now is the time to start trolling for real estate.” His advice — don’t wait too long or you’ll miss not only the bottom — but the low interest rates as well.
There are a number of other indicators that the market/economy is picking upâŚ
There are a few lenders who are back in the equity lending business. That is GREAT news, totally showing a growing confidence in our economy.
Also on a personal note which I think is also an indicator of the perspective of the market/economy, a few weeks ago I attended the second annual Art Los Angeles Contemporary at the Barker Hanger in Santa Monica. This is a different show from the Los Angeles Art Show which is held at the Convention Center downtown and deals with all medium and vintages of art. The show I attended is only for Modern or Contemporary Art. It was very well attended and there were a number of very expensive pieces of art that were sold while I was there. The art market is proving to be a strong indicator of the market, worldwide.
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 When throwing something away, know where away is
I donât know about you, but I remember the âfix-it shopâ where we took our broken appliances to be fixed rather than throwing them out as we do today. Our toys lasted and were passed down because they were sturdy and fun. I still save bags, boxes and wrapping paper to use again. As we âprogressedâ and became more affluent and small appliances and other items became less expensive, it was cheaper and more convenient to buy new and throw away our old stuff.
You may have noticed at Whole Foods they have separate trash bins labeled compostable, mixed recyclables and landfill. I am sure we have all seen the recent articles in the paper about what happens with our trash. If you have not seen it before, you might enjoy (or perhaps not) watching âThe Story of Stuffâ a video by Annie Leonard www.storyofstuff.org. It is about 20 minutes long and presents another way of looking at our culture of consumption and disposal.
This information comes courtesy of Debra Spector, Committee Chair of the Environmental/Conservation Committee at Brentwood Country Club.
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I am very busy, I have a new lot listing in Bel Air Crest, it is the last of the Mohicans, a flat 15,131 sq foot lot on one of the best streets in the community, I also have a new listing of a Canyon home in Bel Air Crest; it is a 3.2,5, den at 11816 Henley Lane, approx 2760 sq. feet and is listed for $1.4. I have a few more listings in both Bel Air Crest and Mountaingate coming on line in the next few weeks, and please do not forget my beautiful listing on PCH in Malibu.
In the meantime Thank you again for your business and support, I very much appreciate it.
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