Hollywood Riviera & South Bay Real Estate Blog

A few days ago, the local papers were reporting some negative headlines with regard to the national real estate market. A potential buyer came to me with a counter offer and referenced this headline as a way to back up his low offer.   The very same day, as I made my way through the paper, there was a regional real estate article which highlighted the positive increase in median sales and sales volume comparing 2009 to this year.  I guess you can pick and choose the news article that can back up your approach.

The national real estate market is irrelevant in my view.   I prefer to use data from the MLS (multiple listing service) .  I  also reference the article from the  August 25, 2010  Daily Breeze page A 15 that notes that in Redondo Beach (this does not include all the Riviera),  the median home price is up 5.4% from July 2009 to July 2010.

To be more precise,  the MLS data shows that the Hollywood Riviera tracks average sold prices up 2% this year from 2009.  Also in the Hollywood Riviera: there has been a 38% increase in the number of homes sold this year over last year in the first half of the year.
With the large number of homes in escrow in the Riviera right now, we are on track for a dynamite year in homes sales in 2010!

Everyone has a different point of view huh?

Sometimes clients and salespeople think the closing is going to be the easiest part of the deal, but these days, entering into a contract is only the beginning.   According to the National Association of Realtors recent Realtors Confidence Index survey, between 10% and 14% of pending transactions do not close.  Another 20% are delayed but eventually close.

Setting realistic client expectations is essential to do up front at the beginning of the transaction or even while you are listing the clients home or out showing property.  Going through the list of hurdles that often delay or prevent a closing – they fall into three categories:  Loans & Appraisals, Title, and Home Inspections.  It’s no surprise that these are also the categories in the purchase contract that include “contingency periods.”  One has to be realistic up front with their clients as to what these contingency periods mean and how the contingencies are actually removed and what happens when those contingencies are removed. 

Loan and Appraisal Contingency – it is more critical than ever for the borrower to make sure they are financially qualified for the purchase.  It is important for the buyer to be aware that their income and assets will be and need to be verified by the loan broker and by the selling party.  Knowing where the down payment is coming from is crucial and will be highly scrutinized by the underwriter, thus needs to be scrutinized by the selling party/listing agent as well or be prepared for a surprise at the end when you’re supposed to close and can’t.  Hopefully, you’ll just experience a delay and not a cancellation.  Appraisal – be prepared as the listing agent to prequalify your appraiser before they show up.  Make sure they know the area your listing is located in, especially if that area is a micro-area that has its own nuances that only a local would understand.  This can kill a deal immediately if the appraisal does not come in at sales price.  Make sure they buyer is aware of any issues that might come up with an appraisal if you are worried it might not come in. 

Title Issues – When we take a listing we open a title search to check for possible liens that the seller may not be aware of.  Those need to be cleared prior to closing and delay a closing.  A preliminary title search can reveal a whole array of problems from unpaid taxes to land-use restrictions.   Short sales and REO’s (Real Estate Owned – Bank Owned) sales are particularly prone to title problems. 

Home Inspections – It’s not just about getting an inspection and finding out what is wrong with a house (if anything) that causes a problem or delay.  It’s the negotiations that happen after that inspection between the buyer and seller regarding which party will pay for repairs and or who will get estimates that often delays a transaction.  A good way to avoid “surprises” to a seller is to go through the property with the seller prior to the listing and go over what does and doesn’t work.  Careful visual inspection by a listing agent can often reveal what ‘may’ come up during an inspection and keep the seller aware that this is going to come up during the transaction.  Making a seller aware of what happens during the inspection helps them understand the process and being ready for the worst case scenario is better than being surprised by the whole process.  Sellers don’t necessarily have to fix problems, but knowing what they might have to spend might help them price the house.

The bottomline – allowing for more time during the escrow period – 45-60 days vs 30 days – may keep the transaction closing on time in the first place.

Opportunity Knocks if you want a Queen’s Necklace View in the Hollywood Riviera – We have a new listing in the Hollywood Riviera with a nice Queen’s Necklace Ocean View!  It’s got 4 bedrooms and 2 bathrooms + living and family rooms with fireplaces.  View is from the upper/main level. The main level has the dining and living rooms plus the kitchen as well as 3 bedrooms and 1 bathroom.  The living room has a fireplace and door out to the patio where you can enjoy your nice Queen’s Necklace View.  The lower level has a 4th bedroom and full bathroom plus a family rooom with door out to the back where there is a pool.  This property being that it needs a lot of work – pretty much everything – is available for the opportunistic price of $999,000!  There is also a gorgeous front courtyard that has so much potential! 

I know what I would do to this place.  I’d start with opening the kitchen wall to the view while completely remodeling the kitchen of course.  I’d put in french doors off the living room out to a brand new larger patio off the back.   I’d actually fill in the pool most likely and have a backyard, but for someone who wants a pool this could be a good opportunity to re-do the pool and add a spa to it.  There are so many things one could do! 

Come make this wonderful home yours today.  Here is a preview of the view from today.

Hollywood Riviera 1st Quarter 2010 Sales Statistics -

Here we are with our first quarter 2010 over already – it sure has gone by fast if you ask us.  So far market activity has been brisk with the number of sales up 80% over this time last year.  The average price is holding steady with less than a 1% decline.  You can see the numbers overall have come down since 2006 (which is not shown but was used in the % change Y over Y column for 2007) average price of $1,221,927 a total of 16.7%. 

Our market has also been affected by the number of Short Sales and REO’s as well especially in 2010 – the “Pending” sales show that 5 of the 14 homes in escrow are in some sort of distress position.  From what websites like www.ForeclosureRadar.com report we will be seeing a lot more of that activity in coming months.  It’s too bad that the banks who benefitted greatly by our tax dollars can not be more flexible with people who are struggling from job losses and cut backs.  There is a lot of money out there available to people for loan modifications, but sadly that does not mean it’s easy to obtain. 

 Will be curious to see what the 2nd quarter brings.  Only time will tell.

Happy Easter from the Hollywood Riviera – Happy Easter out there to all!  Here in the Hollywood Riviera we have the Hollywood Riviera Sportsman’s Club.  It’s a neat organization started in 1949 by a group of civic-minded Riviera residents.  The club was organized to promote community improvement.  They raise money to support our children and schools and we volunteer our time to support community activities.

One such activity – the annual Easter Egg Hunt is happening this Saturday, April 3rd at El Retiro Park.  It’s a widely popular activity for the youngest members of the Hollywood Riviera community.  It begins at 10am this year. They typically have Easter Egg Hunts set up for different age ranges.  It’s always a sell out and the kids have a great time!!

If you are interested in more information on joining the Hollywood Riviera Sportsman Club click here.

Hollywood Riviera – Is it Redondo Beach and/or South Torrance? – South Torrance doesn’t sound quite as romantic a place as Redondo Beach, but even with a Redondo Beach address, people in the Hollywood Riviera live in South Torrance.  It’s funny that there is a Redondo Beach address for people who really live in South Torrance.  It started back in the 1940’s when the first track of homes was built here.  Most of those homes are in the upper Riviera on the streets – Calle de Arboles, Calle de Madrid, Calle de Andalucia, Via Colusa and Paseo de Granada.  These homes were typically flat roofed and or very small in stature – no more than 1300 square feet – often 2 or 3 bedrooms with one bathroom. 

The city of Torrance where these homes were located is quite large and the closest post office was really far away, so this little area called the Hollywood Riviera requested from the Redondo Beach post office if they could deliver their mail to them.  The rest is history and now a good portion of the Hollywood Riviera (many refer to as the “original Hollywood Riviera” is left with addresses in Redondo Beach. Our ‘real estate map” that delineates the Hollywood Riviera” and its boundaries includes the area with the Redondo Beach address plus the “newer” Torrance-addressed portion (built in the 1950’s.) 

There is a difference in average price between the two areas. When comparing houses in this neighborhood it’s got to be figured whether the house lies in the Redondo Beach 90277 side or the Torrance 90505 side.  For instance, this year alone the average price for the solds on the 90277 side is $1.154K.  10 homes have sold in the Hollywood Riviera on the Redondo Beach side (90277) vs. the 8 homes that have sold on the Torrance side of the Hollywood Riviera (90505) with an average price of $849K.  As you can see there is a dramatic difference here – a 26% difference in price.  For one, the Redondo Beach side tends to have the homes right along the beach and with really good views vs. the Torrance side which includes some of the less desirable locations which brings the values down.  The lowest priced homes are almost always found on the Torrance side and the most expensive homes are almost always found on the Redondo Beach side thus leading the difference in average pricing.

One of the benefits to this interesting address if you live on the Redondo Beach side is that you are a resident of two communities so if you like to participate in community sponsored activities you can pay the “resident” price of both.  A small savings, but a savings none the less!

So as you can see there is a big differential in one neighborhood that a lot of people – a lot of real estate agents – don’t know about. This is why it’s so important if you ask me to work with a real estate agent who is “local.”  They will know the ins and outs of a neighborhood like no one else can.  Sometimes they will even know the specifics like who the neighbors are!

Top 10 things to do if you live in the Hollywood Riviera – oh there are so many it’s hard to think of them all.  Most are so simple.  Life here in the “Riv” is pretty laid back.

1) Walk your dog through the streets of the Riviera – get ready for a work out as there are a lot of hills here.

2) Walk your dog along the ‘hiking trail’ between the Valmonte section of Palos Verdes Estates and the upper Riviera.

3) Walk into the Riviera Village and enjoy some of the local shops & restaurants.  Some of my favorites includes, Redondo Beach Gelatto, Hennesseys, Redondo Beach Brew Co, Yellow Vase, Trader Joes, Starbucks, Casa Puildo, Riviera Mexican Grill, Pedone’s Pizza, La Salsa, Euro Comfort Footwear, the list goes on….

4) Head to Torrance Beach and have lunch at the local snack shack – burgers and cokes.  Walk down to the Dolphin Park just north of there.

5) Climb to the top of the Rocketship at Rocketship Park – enjoy the amazing ocean, downtown LA/city and mountain views from the park.

6) Pick out a book at El Retiro Library.  Or hit some tennis balls at the tennis courts at El Retiro Park or take your kids to enjoy the kids play park at El Retiro.

7) Watch the sunset from the many ‘triangle’ parks in the neighborhood…the views from the upper Riviera are amazing!

Scan Torrance Beach for shells while walking along the water line of the beach. Enjoy the views of Palos Verdes coastline while there.

9) Enjoy the holidays in the Riviera Village during the Halloween Parade and the Holiday Stroll – they block off the streets so you can walk around.  So much fun!

10) Enjoy a BBQ with your other Hollywood Riviera neighbors and feel so lucky to live here.

Open Houses in the Hollywood Riviera – Sunday, March 28th, 2010

Open Houses in the Hollywood Riviera – Sunday, March 28th, 2010 – There are 6 open houses for Sunday, March 28th, 2010.  Here are their addresses as well as the open house times for this afternoon.  Sunday is the typical day for open houses in the Hollywood Riviera.  Sometimes Saturday is also known for open house.  1-4pm is the standard time although in the summer  months sometimes 2-5 as the days are longer and people are out later. 

709 Calle de Arboles – $979,000 – 3 bedroom, 2 1/2 bathroom – pool house in back has the extra 1/2 bath.  Beautiful pool and backyard too.  Open 1-4

548 Calle Mayor – $917,000 – 3 bedroom, 3 bathroom – over 1900 sq ft home with pool.  Open 2-4

217 Vista Del Parque – $985,000 – 4 bedroom, 2 bathroom – very clean home with hardwood floors. 
Open 1-4

236 Via Buena Ventura – $1,125,000 – 3 bedroom, 2 bathroom – original 1938 that’s been beautifully updated.  Very cool house on a great street.  Open 1-4

4091 Bluff St – $999,000 – 4 bedroom, 3 bathroom – built in 2003 – city and mountain views – Open 1-4

236 Vista del Parque – $1,559,000 – 5 bedroom, 4 bathroom – over 3000 sq ft – well decorated home by El Retiro Park – Open 1-4

Enjoy this lovely Sunday driving around the Hollywood Riviera.  Enjoy the gorgeous ocean, city and mountain views today – it’s such a pretty day.  Stop in some open houses and see what the Hollywood Riviera has to offer you.

Hollywood Riviera Real Estate Market Update for March 24th, 2010 - Currently there are 26 homes for sale.  Their average price is $1,184K with the lowest priced home listed for $735,500 (fixer upper that was auctioned off and now is up for court overbid with the minimum bid being $735K) and the highest priced listing at $2,550,000 (brand new construction oceanfront home at Torrance Beach.)

The good news for 2010 is that the market has picked up as far as the number of homes in escrow right now vs this time last year.  Currently there are 17 in escrow (pending sale.)  This time last year there were 6 homes pending sale – that is a 64% increase.  Good news for number of sales.  The average price of the current 17homes in escrow is $1,063K vs. the average price in March 2009 of $1,077K – that is not off by much (just over 1% difference.)  That is good news for prices so far this year.

Let’s look at what has SOLD so far in the Hollywood Riviera so far in 2010.  There have been 14 single family homes sold in the Hollywood Riviera so far.  That is a 43% increase over the 8 homes that sold in the same period of 2009 (1/1/2009-3/24/2009).  Of the 14 homes sold this year (2010) their average price is $1,016K vs. the 2009 average of $982K (that’s actually an increase in average price of 4%…not huge, but better than sliding backwards more!)  As you can see there was a high priced sale this year, 2010, for $1,972K that most likely brought up the average however.  Overall, I’d say we are just off a touch over this time last year…but we’ll see what 2010 really holds as we move along.

    
(Solds Jan 1 – March 24, 2010)      (Solds  Jan 1, 2009 – March 24, 2009)

Hollywood Riviera Pool House for Sale.  Wouldn’t it be fun to move to the wonderful Hollywood Riviera and own a gorgeous pool house just in time for summer?!  Well, this is your chance.  This Hollywood Riviera Pool House for sale is also stylishly remodeled – a huge bonus.  Out of the 26 homes currently for sale in the Hollywood Riviera – which encompassess about 3100 homes in total – this home is priced under $1 million dollars – which is well below the average price of $1.264K.  It has 3 bedrooms & 2 bathrooms in the main house, but they have converted the garage to a neat pool house/bonus room/home office/game room/etc that also has a 1/2 bathroom and an outdoor shower in the back.  The pool house is in the rear of the property right off the beautiful pool so it’s quite convenient for your pool parties to have that extra bathroom – no one likes when your ‘wet’ guests drip their way through your house when they are looking for the bathroom after they have been swimming in your lovely pool. 

This Hollywood Riviera pool house is ready for you to move in today – gorgeous walnut hardwood floors, bright and open kitchen with honed granite counters, stainless appliances and clearstory windows, built in entertainment unit in the living room are all just a few of the amenities.  This house has great style as seen in the sleek wood and frosted glass interior doors.  The master suite has it’s own en-suite bath with large shower and more clearstory windows to bring in the beautiful natural light. 

This Hollywood Riviera Pool House is just over a mile from the beaches, Riviera Village, Rocketship Park and Riviera Elementary.  It’s across the street from the neat walking/hiking trail that runs along the border of Palos Verdes Estates Valmonte neighborhood and the Riviera. 

Come see this gorgeous home this weekend at our open house, Sunday, March 28th from 1-4! 
The address is 709 Calle de Arboles, Redondo Beach, CA 90277 and the price is $979,000