Hollywood Riviera & South Bay Real Estate Blog

Wow, here is a photo of a bathroom that is literally covered in personal products.  What a shame, it even looks like an upgraded, granite counter top.  However, you can’t even see it because of all the clutter.  As a realtor who knows the importance of photos in selling the home before the buyer even gets there, this is an example of an agent not doing his or her job.  I would never take this photo!!! I would have asked the homeowner to clear off the counter, or just done it myself!  People out there, if your agent takes this kind of photo and loads it onto the MLS, get rid of them, they are not doing their job!

Summer 2009 is here and along with the sand, surf and sunshine this year comes some real values in real estate!  Our current market conditions have left a lot of people talking about real estate – seems like people never really stop talking about real estate.  It is cyclical and that is to be remembered – we’re either talking it heading down or revelling as it heads up.  Today’s chatter is usually about how much lower the prices are now then they were a few years ago and thus we have some real values in today’s market.  A few years ago it was all about the gain – which brought along with it the lowest affordability index ever.  It’s been over a decade since California has seen an affordability index so favorable – it was only 3 years ago that it was in the 26% range (meaning 26% of first time home buyers could afford the average priced  home in CA.– now it’s up to 69%.)  Federal aid to first time homebuyers has increased to $8000 from $7500 from 2008 to 2009 – so the Feds are obviously trying to ramp things up.  The State of California has its own 2009 Tax Credit of $10,000 to a single family home buyer of a home that has never been occupied and that is intended as a principal residence…click here for complete info.   They have allocated $100 million dollars to this and at this time of writing they have already closed the application process as they have allocated all the money so far!

Inventories are down and pending sales are up…and Dataquick is reporting the number of California home sales in May are up for the 11th straight month.  Here in the Hollywood Riviera there are currently 25 homes in escrow/pending sale compared to only 10 in escrow/pending on May 21, 2009.  That’s a big jump in 6 weeks time.  The average prices are off a bit, but a great time for buyers and obviously they are thinking so too right now!

May 2nd, 2009 – there are 45 homes for sale here in the Hollywood Riviera along with 2 condos and 6 townhouses.  Prices for the single family homes range from $625,000 – $2,799,000.  As you can see the range is huge.  Click here to the single family homes available for sale currently. 

The condo/townhouses range in price from $489,000 – $799,000.  Click here to see the condos/townhouses currently for sale.

April brought us a few pending sales (6 in total) - a good thing.   Prior to that the sales pace has been slow going.  This should help bring us a bit more on track for the solds year-to-date.  As of now there have been 14 homes to close escrow since January 1st, 2009.  This time last year for comparison purposes 20 homes had closed escrow.  That represents a 30% decrease in the number of sales this year over last year.   Click here to see the Hollywood Riviera homes that have sold so far in 2009.

Open House is such a great marketing tool for real estate agents, sellers and buyers alike.  This past Sunday, August 31st, 2008 (Labor Day Weekend no less) was amazingly busy for open houses.  I held an open house in the Hollywood Riviera at a listing that I’ve had listed for a while now and sat open houses plenty of times now.  I had it open for 2 hours and honestly there were so many people there that I couldn’t count how many people came.   (and I thought I’d be reading my book the whole time due to the holiday – boy was I wrong.)  Laura also sat an open house the same day also in the Hollywood Riviera and also reported the same findings.  Now these houses have been on the market for a while, so it wasn’t just the neighbors “nosing” around.  This was lots of people looking at what the neighborhood had for sale and seemingly really wanting to buy a house.  We have another listing over in Rancho Palos Verdes and a colleague of ours held that one open as well…she said it was incredibly busy as well and that she ended up staying late to accommodate the traffic. 

I see a tiny boost in consumer confidence right now and that is a good thing.  Usually this time of year is super slow (even in our past “busy” seller’s markets.)  People are typically on their last-hoorah-summer-vacations and getting ready for school.  Or going to the beach no matter what before the summer ends….not attending open houses just for fun.  This is what makes me feel like things are at least on the horizon of turning around.  We shall see what the next couple of months hold prior to the holidays and elections.  I’m super curious!

Open House is a great tool for sellers – it allows for maximum exposure.  So many agents today are sending their clients to open houses – that way no one feels “obligated” to make a special appointment.   People know when the open houses are and drive around looking for them.  They don’t feel pressure that way.  We have had several sales from buyers that first saw the house at open house and not because their agent showed them the house.

Open House is a great tool for buyers – it allows buyers to get a better feel of what is available in a neighborhood and start to understand the values in a neighborhood.  It also allows buyers to meet real estate agents and get to know them.  A lot of buyers are secretly interviewing agents as they tour around.   They are listening to the agents talk to other people, etc.  Checking to see what type of marketing materials are available etc.

Open House is a great tool for real estate agents – it allows an agent to expose themselves to different neighborhoods – although it is best to host an open house in a neighborhood that you really know if you are at all trying to impress any buyers and/or sell the house.  It is a great way to start to meet the neighbors – they may have a lot of info about the neighborhood and/or the house you are selling that may be useful! 

In reading a few great articles this week regarding “loving your house again,” I find myself smiling.  Let me share:

 Chris Ayres of the LA Times wrote this greatopinion piece about “forgetting the doom and gloom about the tanking market.  You made a smart investment.”   He makes so many great points for the many of us that bought houses in the last few years during the “real estate boom.”  We find ourselves stuck reading so much doom and gloom lately, but here’s someone who has taken the time to break things down and make it all not seem so bad.  I’m always looking for some good news in the media…(check my blog from August 6th)  He makes great points about what a great investment time period it was – the interest rates most people got during those times are amazing!  A good interest rate on a loan can offset many losses in depreciation.  Uncle Sam makes owning a home here in the United States a huge financial bonus – giving us the glorious home mortgage interest tax deduction!

Secondly, we do a lot of staging of seller’s properties and funny enough, we hear the same thing over and over…”Boy, maybe we want to stay now that the house looks so good.”  In an article dated in Feb 2008, Beth Teitell from the Boston Globe, writes about “loving your house again” as well.  She gets right to the point I just mentioned….love your house.  Act like you “like your house” and clear it out, make it someplace you want to live, decorate it!  I’m amazed at how some people live in their homes.  It’s similar with peoples cars too though.  They will drive it around dirty and with tons of dings and dents, bad tires, stained carpets, and soiled interiors.  But if those people went to sell their car, they most likely would get that car detailed (and may realize at that point that they may want to keep the car since it looks so good now!)

The third great article bringing us to “Love our house again” - is about the increasingly popular “Staycation.” Debra Alban of CNN brings us “Staycations: An Alternative to Pricey, Stressful Travel.”  More and more people are choosing to stay home for vacation instead of paying to stay somewhere else…especially if they have a nice place to call home!  If you’ve spent any money at all on “landscaping” the back yard you might as well get some use out of it!  In most cases it’s nicer than where you will go (and pay to go.)  You can certainly relax more at home and not feel like you have to “go, go, go just to get your money’s worth.   Boy, if you live here in the South Bay – Hollywood Riviera, Palos Verdes, Redondo Beach, any of the Beach Cities – it doesn’t get much better than here to have a “staycation!”  So enjoy the last few weeks of summer and Love Your House Again!

I guess great minds think alike, here is an article written by a colleague, Elaine Carlson, also of Re/Max Palos Verdes about the same LA Times article – http://palosverdessource.com/2008/08/18/do-you-love-your-house/

Article One – http://www.latimes.com/news/opinion/sunday/commentary/la-oe-ayres17-2008aug17,0,1698378.story

Article Two – http://www.boston.com/lifestyle/house/articles/2008/02/14/love_the_one_youre_with/

Article Three – http://www.cnn.com/2008/LIVING/worklife/06/12/balance.staycation/

Sure seems like there is a lot of bad news in the press – constantly!  It sure would be nice if there were some good news about the real estate/mortgage industry lately.  People are sick of hearing bad news on all fronts.  So what is some of the good news.

“Of the 120 million homes in the US, over 33% of them are completely paid for – no mortgage (that would be nice.)  40 million of the remaining 80 million homes were bought before the year 2000 meaning that even in a ”fire sale” they have at least 30% equity in them.  94% of the mortgages today are not in arears at all.  Of the 120 million homes in the entire U.S. today, only 4 million are €œat risk€ with less than 2% of all homes actually in foreclosure. I think Congress is about to spend $300 billion (yes, that€™s billion, with a capital €œB€) of your tax dollars to bail out those 2% of home buyers who made bad decisions. Yet the talking heads would have us believe that, like Chicken Little, the sky is falling and we all have to run for cover or risk getting smacked by falling houses.”  (courtesy of RisMedia Commentary by Phil Cantrell)

People still need to buy and sell homes and this too shall pass as they say.  The mortgage companies will need to get it all figured out – and they will – and things will start to go back to “normal” again.  And I mean normal – not the frenetic market we had from 2002-2006.  That was not a normal market…mortgage companies gave away money then to anyone with a pulse.  Their underwriting today has gone 180 degrees the other direction which is what’s hurting us all right now…but eventually it will swing back.  It’s cyclical – always has been.  Let’s all just hold tight and know we live in a beautiful neighborhood that has held it’s value relatively well.  At least we don’t have foreclosure signs dotted up and down the streets like some neighborhoods.  We are lucky!

I found a couple websites that feature good news if you are sick of the bad all the time!

http://www.happynews.com/

http://www.goodnewsnetwork.org/

Hollywood Riviera Open Houses

5319 Calle de Arboles -$1,089,000 - 3 Bed/2 Bath – Beautiful Home – Sunday 1-3
4910 Calle de Arboles -$1,649,000 - 4 Bed/4.5 Bath – Just Completed 2007 & Gorgeous – Sunday 2-5
140 Vista Del Parque -$999,000 - 3 Bed/2 Bath – Updated – Sunday 1-4
308 Via El Chico -$1,125,000 - 3 Bed/2 Bath – Panoramic Queen’s Necklace Views – Sunday 2-4
625 Calle Miramar -$1,899,000 - 3 Bed/3.5 Bath – Just Completed 2005 – Beautiful Craftsmanship – Sunday 2-4
405 Via La Selva -$1790,000 - 4 Bed/3 Bath – Panoramic Queen’s Necklace Views & Remodeled – Sunday 2-4
356 Paseo de Arena – $1,249,000 - 4 Bed/3 Bath – Over 3000 Sq Ft – Sunday 3-5
4520 Newton -$819,000 - 3 Bed/2 Bath – Remodeled - Sunday 1-4
216 Calle de Madrid – $859,000 - 4 Bed/2 Bath – Sunday 1-4
3874 Newton – $1,399,000 – 4 Bed/3 Bath – New Construction – Sunday 1-4
239 & 241 Calle Miramar $1,479,000 – New Townhomes – Sunday 2-5
136 Via La Circula – $949,000 – 2 Bed/1 Bath – Charming – Sunday2-5
139 Via La Circula – $1,199,999 – 4 Bed/3 Bath – Pool & Spa – Sunday 1-4

South Redondo Beach Open Houses

754 Ave A – $819,000 – 2 Bed/1 Bath – Sunday 12-4
631 S Gertruda Ave – $2,549,000 – 6 Bed/5 Bath – Brand New Home – Sunday 1-4
622 Vincent Park – $1,575,000 – 6 Bed/4 Bath – Sunday 1-4
615 S Gertruda Ave – $2,99,900 – 4 Bed/5 Bath – Brand New Home – Sunday 1-4
1724 Esplanade – 5 Just Completed Oceanfront Townhomes – Sunday1-4
425 S. Catalina – $757,000 – 2 Bed/3 Bath – Sunday 3-5
212 N Irena – $889,000 – 3 Bed/2.5 Bath – Many Upgrades – Sunday 1-4
523 Lucia Ave – $1,299,000 – 4 Bed/5.5 Bath – Custom Built – Sunday 1-4
312 N. Catalina Ave – $1,099,000 – 4 Bed/2.5 Bath – Impeccable Back Unit – Sunday 2-4
218 N. Lucia Ave – $859,000 – 4 Bed/2.5 Bath – Great Value – Sunday 1-4

       There are 38 homes for sale as of this morning, July 5th, 2008.  That’s the highest number of homes we’ve had for sale in a while.  22 of those homes have reduced their list price at least once so far as well, giving buyers have a lot ot chose from right now.  There are 15 single family homes under the $1 million mark which makes for some great opportunities to get into this idyllic Hollywood Riviera neighborhood. 
     As yesterday was the 4th of July, one drives around the Hollywood Riviera to find themselves getting stuck in many places because so many streets were closed to thru traffic due to all the “4th of July Neighborhood Block Parties.”  It’s truly a wonderful neighborhood…BBQ’s, jumpers and waterslides for the kids (and some adults too), sno-cones and cotton candy machines, kids bike parades….now this is why people want to buy a home here.  This is a wonderful lifestyle. 
     The other 23 homes range in price from $1 million up to $2,499,000 – which gets you new construction with a roof top deck, a basement, a view, and gorgeous home on a nice tree-lined street in the upper Riviera.  If you are looking for the Riviera, sure looks like now is a good time to find your dream home.
    

First of all, here in the South Bay you have to ask yourself, “Who doesn’t want to live here?”   There are many other reasons to buy a home – here are 6 good ones!

Pride of Ownership – One of the main reasons people buy and always have bought homes is pride of ownership.  Part of the “American dream is owning your own home.”  Making it yours – decorating it your way, landscaping w/ your favorite plants,  painting it your favorite colors, etc.  Most of us grew up with our families in our “family home.” 

Good Investment – Although home prices are cyclical, sometimes up, sometimes down, overall they appreciate or go up.   For example, if you use the Office of Federal Housing Enterprise Oversight’s “house price calculator,” a home purchased in California in the 1st quarter of 1975 for $75,000 is worth approximately $1,017,400 in the 1st quarter of 2008.  That’s not a bad savings plan since you had to live somewhere!

Tax Benefits – owning a home in the United States is looked upon favorably by our Federal government.  With that said the government offers quite nice tax benefits to those who also own a mortgage.  The mortgage interest you pay each month is deductible and typically the interest is the largest part of your mortgage payment – especially in the early years….when you need the most help.

Capital Gains Exclusions – (another tax benefit) – As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the “over-55″ rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit–subject to limitation–free from taxation.

 Equity Building – As you pay your mortgage, an amortizing mortgage, slowly you pay more and more of the principle off.  The beginning years of an amortizing mortgage are mostly interest, as noted above, but the last part of the term is mostly principle.  You are basically paying into your own bank account as every time you pay your mortgage the principle gets reduced….you can’t do that with rent.  (You are helping pay down someone else’s mortgage then.)

Equity Loans – Consumers can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical or starting a new business.

The ultimate question “What is my home worth in today’s real estate market?”  I hear it all the time and the short answer that is always true is that “Your home is worth the dollar amount equal to what someone is willing to pay for it and what you are willing to sell it for.”  That number is very hard to arrive at sometimes.

Here in the South Bay we have seen a softening of the real estate market…properties taking longer to sell, prices needing to be reduced, homes needing to be staged and then kept in “showing” condition for the duration of the “marketing period.”  This is no easy task. 

The hardest part of this softening market is finding a price that will attract a buyer.  Sellers that are looking back at what homes sold for a few months ago are looking the wrong direction.  Sellers need to look forward to what will make someone pull the trigger and write that offer.  We need to start seeing what Just Sold or Just went into escrow and then adjust accordingly and not equal to or above those prices…but slightly under those prices.  Properties not aggressively priced are not even getting showings – so those perfectly “staged” houses are not even making a dent.  This is why pricing is the number one key to getting people in your home.  Of course, after they are there it must show better than the house they just saw around the corner.  Buyers are looking at everything right now – they are looking for a deal. They hear words like “foreclosure, bank-owned, short sale” and think they want one of these deals.   They want to be able to tell their co-workers and friends what a great deal they got.

So, you still don’t know what your home is worth – we hope we will all find out soon!