Mar Vista had 25 single family sales in the month of September which is way down from the 43 that sold in September last year, according to the MLS (this does not include off-market activity). The lack of inventory in the area is one of the main reasons for the drop off in sales and increase in sale prices. The average median sale price was $972,500 and the average days on market was 40 with the sale price coming in at 104% of the list price.
The Palisades had 27 single family sales in the month of September which beat out last year’s sales for the month by one according to MLS statistics (this does not include off-market activity). Of the 27 sales, 37% (10) sold for above the original asking price. The median sale price was $2.590M and the average days on market was 59 with the sale price coming in at 99.68% of the list price. Let’s take a quick look at a few sales:
Craziest Sale of the Month- 646 Las Lomas- Tear-down on a 8,698 sq. ft. lot: Listed at $1,375M and sold for $375K over asking at $1.750M. The minute this extra-large lot hit the market it created quite a stir with builders and principles looking to build a dream home. An out of area realtor represented the seller and the original list price is evidence of that. The property had over 20 offers with the listing agent ending up representing both sides and angering quite a few local agents and principles. The accepted offer is rumored to have no contingencies and it closed within three weeks. The buyer was probably a builder/contractor with institutional money behind them. The Palisades has been a hotbed of builder activity the past 18 months.
Highlands isn’t just hot from a temperature standpoint- 16617 Calle Brittany, a 5 bed/5 bath, 4,583 sq. ft.on a 7,678 sq. ft. lot had a list price of $1.875M and sold for $1.950M in multiple offers. The house went into escrow in late June and had what appears to be a three month escrow on top of of a leaseback thru October 31st. The Mediterranean style home features a cook’s kitchen, 4 car garage, ocean/mountain vistas and a lush backyard.
17211 Avenida De La Herradura- This 4 bed/3 bath, 3,083 sq. ft. home on a 7,921 sq. ft. lot situated at the end of a cul de sac created quite a buzz when it hit the market with a $1.585M list price. The sophisticated and upgraded family home made its debut on a Tuesday broker caravan and immediately drew over a half a dozen offers over the list price and it didn’t even make it to the first Sunday public open house. The final sale price was $1.775M, almost $200K over the original asking price. The house was bought in 2010 for $1.450M and the seller put in another 100K+ of additional upgrades. We represented the buyer.
The odyssey of 1239 Las Pulgas – At first glance you would think people would want to live here for a long time. Completely remodeled down to the studs in 2007, this 4 bed/3.5 bath, 3,600 sq. ft. contemporary home with panoramic views goes through homeowners like most celebrities go through marriages. From a realtor’s perspective it provides the perfect example that sale prices in the area have surpassed those in 2007. The house was sold in 2008 for $3.2M and then sold in 2012 for $2.650M. Eight months later it was back on the market and sold in February of this year for $3.1M before being sold again this September for $3.315M, $165K over the asking price. Despite the rapid turnover the home is still attracting buyers at higher prices so the inspections are checking out well.
We just closed a deal in the Palisades in which the buyer put only 10% down for an interest only loan. The deal closed in thirty days with a very competitive interest rate and the process was very smooth. The deal is offered through a wealth management bank but the buyer is not required to place assets with them. They offer 10% down with all of their products if you are not an interest only fan. You must have a FICO score of 760 to qualify. If you are interested in learning more about this feel free to contact me at firstname.lastname@example.org.
Without the major drop in interest rates where would the real estate market be today? We definitely would not have seen the amazing housing comeback of the past two years. What will happen when rates eventually get back to 6 or 7%…will we see another drop in prices or will the economy be strong enough to handle it? One major concern is that while housing values are rising post-great recession, most people in the workforce are not seeing increases in pay and/or working frantic hours to make what they need. Also, the super wealthy are now the strongest they have ever been while the masses struggle. Some of these issues will not impact the westside nearly as much as other areas but I do think we may reach a point in the next few years where housing values may dip a little and stay flat for a very long time.
On the other hand, I cautiously say that as inventory numbers will continue to stay tight on the Westside thanks to Proposition 13 and many homeowners being locked in at historically low interest rates it will make it difficult to find an upleg property that is affordable.
Many Westside retirees have either paid off their home or owe very little and have no incentive to move out of the area since prop 13 protects their tax basis. They do have an exemption over the age of 55 to move and keep the tax basis, but it is tough to leave Westside living.
The Westside is land locked and with tight inventory you would think prices will constantly rise. However, with higher interest rates looming and the overall economy being held together by a string it may not work out that way…ahhh, if only I had a crystal ball.
Despite only having 84 producing agents located in four Southern California offices (Brentwood, Santa Monica (2) and Pasadena), Partners Trust ranked 5th in total market share in Southern California through the first half of 2013.
Partners Trust is on track to close over $2.1 billion in sales this year and was named by the Los Angeles Business Journal as one of the top ten places to work in Los Angeles…for the fourth year in a row! The company currently ranks second in average days on market and average price sold.
It is very exciting to be a partner at such a thriving and empowering company. My team is having one of our most productive year’s ever and appreciate having such a wonderful group of clients and referral sources.
*Click on image to enlarge
Mortgage interest rates have leveled off at their lowest levels since June, with 30-year fixed-rate loans averaging 4.23%.
The average rate for solid borrowers with a 15-year fixed mortgage is 3.31%.Freddie Mac pegged the 30-year average at 3.35% in early May. It shot up to 4.58% in August on widespread belief the Federal Reserve would taper off its efforts to keep interest rates low, then fell again when the Fed decided in September that the economy wasn’t strong enough for it to do so.
Borrowers would have paid lenders an average of 0.7% of the loan amount in fees and discount points to obtain the rate, according to the latest report, issued Thursday morning. Appraisal costs and other third-party charges that borrowers often pay are not figured into the survey.
(Source: LA Times)
LA Times: Southern California housing market slows after torrid rebound
For the third straight month, the median home price across the Southland stayed essentially flat, at $382,000. The September data confirmed expert predictions that waning demand would throw a wet blanket over the white-hot market.
Link to article: Southern California housing market slows
LA Times: Realtors group expects more homes to go on the market, moderating prices
California home sales will increase next year and price gains will moderate as an inventory crunch loosens with more homes on the market, according to an industry forecast.
The California Assn. of Realtors forecasts sales to climb 3.2% in 2014, after falling 2.1% this year amid tight inventory that has helped drive prices rapidly higher.
Link to Article: Realtors group expects more homes to go on market
LA Times: Wealthy Californians have recovered from the recession
About two-thirds of Californians with assets of $1 million or more actually feel better off now than before the 2008 financial crisis, a report from BMO Private Bank said. And roughly the same portion, say they expect the economy to continue its recovery in the next year.
Link to Article: Wealthy Californians have recovered from the recession
Sales of newly built homes climbed 7.9% from July to a seasonally adjusted annual rate of 421,000, the Commerce Department said Wednesday. That rate is a 12.6% increase from August 2012.
Amid the housing recovery, developers this year have increased construction of new homes, but the pace has yet to return to historically normal levels. Builders cite the lack of suitable building lots and tough access to credit among their concerns.