Exceptional Cape Cod in the heart of Brentwood! Built in 2016 and designed by Clark Remington, this 5 bed and 5 ½ bath home features a large and open floor plan, high ceilings, custom carpentry and designer finishes throughout. The first floor includes a formal living, dining room, guest room with en suite, butler’s pantry, and gourmet kitchen
with a large island, breakfast area, and family room. The lushly landscaped backyard is an entertainer’s dream with a built in BBQ and newly added saltwater pool and spa. The second floor Master Suite offers vaulted ceilings, dual large walk-in closets, stunning oversized bathroom with sperate vanities and a freestanding tub. Three additional bedrooms with en suite bathrooms and an outdoor patio complete the second floor. The home is finished with a full security system, Life Source water filtration system, and is smart home ready. Enjoy this gorgeous and meticulously maintained home while being close to all the spoils Brentwood has to offer.
PROPERTY WEB-SITE (includes full virtual tour and floorplan)
We hope you and those close to you are healthy and safe during this unprecedented time! Here is another “real-time” market update based on information from sources across the Los Angeles real estate landscape.
Earlier this week, the county of Los Angeles lifted the moratorium on showing homes in-person, and is now allowing agents to show properties with certain restrictions and guidelines. Sales volume continues be off about 50% (we expect this through May). Though the past ten days have seen an uptick in buyer and seller interest across the board. In fact, Compass management for the So Cal region projected at the outset of SIP (shelter-in-place) that just 92 transactions would close in our offices in May and that has been revised to 175. Our Northern California projections have increased from 150 to 309. However, expected closings for June have been revised downward from 259 to 211 in So Cal and from 431 to 376 in No Cal.
Overall, agents are fielding more calls from clients inquiring about properties currently on the market and asking about what might be hitting the market in the next few months. The volume of sales has stabilized and is not fluctuating to the lower levels we saw about a month ago. The properties going into escrow, some of which were only seen on a virtual basis, are mainly entry-level type homes for the different micro-markets that make up Los Angeles county. With SIP orders beginning to show signs of loosening, we will start to see a steady flow of new listings.
Also, starting May 1st, the National Association of Realtors (NAR) has prohibited “pocket listing/coming soon” marketing. The push is to have all inventory hit the market regardless of whether the seller prefers to sell in a quiet manner. The NAR has been working on this with major brokerage firms for the past nine months. Brokerages/realtors who have “coming soon/pocket listings” they have been advertising, are now required to include that in the local MLS. This will obviously help increase available inventory. That said, quiet listings can still be done, but the marketing will basically be via phone calls and realtor networking groups as any print or digital advertising is not allowed. With listing inventory picking up in May/June and continued SIP progress, we expect late June and July closings to show strong improvement and a sense of normalcy to come back to the market in late July/early August.
We really won’t know about the impact on property values for a few more months but new listings that reflect the 5-10% market correction discussed in the last few updates are generating the interest and demand for showings.
Interest rates continue to decline for home purchases and were seeing some more aggressive plays on the refinance front. Wells Fargo and Bank of America are quoting some buyers around 3% on 30 year jumbo loans if you open an account with at least $250K. 7 and 10-year ARM’s are in the 2.3% to 2.5% range when opening an account. I have heard from multiple clients that other banks are being even more aggressive, especially if you open an account with over $1M. Sub 1.8% rates on 7/10 year ARM’s are being quoted. These types of rates are good news for both buyers and sellers.
Most lenders are now requiring at least a 740 credit score and are doing 80% LTV up to a $2M purchase, 75% LTV up to $2.5M and 70% LTV above $2.5M.
Though many banks are not nearly as aggressive with refinances due to a large backlog, some are seeing it as a great opportunity to create banking relationships. Thus, it continues to be really important to do your homework when investigating refinancing. Sub 2% quotes on 7/10 year ARM refinances are happening when large ($1M++) accounts are opened. As we stated in the last update, be careful when asking for a loan forbearance if you don’t really need one, especially if you may be in the market to purchase a home in the next 12 months or looking to refinance. It could create some headaches for a loan approval.
Title and Escrow
New title orders (i.e.- preliminary title reports are typically ordered when a property goes under contract) have stabilized over the past two weeks and are off anywhere from 40-50% compared to this time last year. It appears the low in terms of new transactions opening was early April.
Escrow companies are reporting a nice surge in business over the past two weeks with the cancellation rate decreasing significantly this past week and seeming to have peaked four weeks ago.
Here are a few links to articles you may find informative-
*Two weeks ago an article appeared in the Wall Street Journal about the Seattle housing market and how it was faring during Covid. – Seattle’s real estate market continues to show up
Please feel free to reach out if you have any questions or need further information on your neighborhood, etc and most of all, have a wonderful and healthy weekend!
Live above it all in Downtown LA and acquire one of the most desirable units with the largest 2BR floorplans available (1,720 sq. ft.) in Tower 1 of the Metropolis. This luxurious residence is situated in the Southwest corner of the top floor and provides a fantastic floor-plan ideal for entertaining or enjoying a quiet evening watching the sunset. The 11-foot ceilings along with the floor-to-ceiling windows provide an expansive feel and the best views you can find in LA. Other features include custom cabinets in the kitchen along with Bosch appliances, automatic shades in the living room and plenty of storage. Tower 1 provides world-class amenities such as fitness center equipped with steam rooms in both ladies and men’s bathrooms, 24-hour lobby attendant, media room, business center and a wide open outdoor space located on the 6th floor that includes a BBQ area, resort-style pool, and dog park. A true gem providing the perfect blend of luxury and A+ location. **The Seller bought the unit for over $2.050M and is ready to move on…E-mail us for more information and to set up a showing.
As little as two years ago, top independent brokerages such as Partners Trust, The Agency, Teles Properties, John Aaroe and Gibson International were big-time players when it came to residential real estate on the Westside. In 2017, the sale of Teles properties to Douglas Elliman and Partners Trust, John Aaroe and Gibson International being acquired by Pacific Union, signaled an end to those days.
In less than one year, the Amazon effect is hitting the residential real estate world. It was officially announced this week that Compass has bought Pacific Union, the third largest brokerage in California. Compass seems to have every intention (thanks in part to a $450M investment from SoftBank) to become one of, if not, the largest national brokerages and take the lead in a war that is developing between full-service/traditional brokers and industry disruptors like Zillow, Purple Bricks and Redfin. In the next few years, it would not be surprising to see the major full-service brokerages creating their own platforms outside of the the Multiple Listing Service. One way or another, CHANGE is coming.
Acquisition part II– It is personally frustrating to have three different company names in a one-year period while sitting in the same office in Brentwood. I saw this same industry consolidation happen around 2008, right before the last real estate downturn. With sales volume currently down about 13-15% for the year on the Westside, the economics are definitely tougher for brokerages right now.
However, it is sad to see the strong independents go away. Most of them were made up of strong and ethical agents that do things the right way and are appreciated by clients. It was nice to walk down the hall and grab the president when you needed something. We held ourselves to a higher standard and I truly hope that Compass can continue that. I hear very good things about them and like many of the agents I already know at the company…we shall see.
Articles on Acquisition-