Archive for March, 2008
March 28, 2008
A couple of eastside properties have popped up recently in our Socal most-clicked rankings, so I thought I’d highlight them for those that have missed out so far. First off is the very glamourous Cecil B. DeMille estate for $26 million and change. It has 6 bedrooms, 10 baths and 2.1 acres in the very refined Laughlin Park area. And of course, there is a to-die-for pool. Check out the photos, and don’t miss the Google satellite map just to get a sense of exactly how huge this place is. CurbedLA reports that a couple currently owns it, but that it is often rented out for parties. It looks like the last sale was in 1990 for $2.4 million, and PropertyShark puts the square footage at 7,472.
At the other end of the spectrum, this very modest 2/1 bank-owned foreclosure on the outskirts of Silver Lake seems to be catching a lot of attention. Maybe it’s the $275,000 price tag—really low for any part of this trendy neighborhood. And it looks like the bank really wants to move it—it last sold in 9/2006 for $480,000. For those not familiar with Riverside, it runs parallel to the 5 freeway and is somewhat industrial. But here’s a nearby recent 3/2 that sold for $360,000, for comparison.
Readers are also interested in this 1922 Craftsman on Maltman in Silver Lake. It’s really 3 units on one parcel, all rented out. The main house is a 1,400 square foot 3/2, then there is an “artist’s studio” and a one bedroom. Total rents on the units are $5,300 according to the listing, and the asking price is $999,000. I drove by it, and the photos impressed me more than the actual place, which is by an apartment building and on a smaller-sized lot (7,500—big, but again, three places on it). Also not the greatest part of Silver Lake…
March 27, 2008
If you can afford a million-dollar plus home, the Mondrian by Lee Homes in Playa Vista are now selling. There’s going to be just 16 of these single-family homes. (That’s a bit of a rarity in this neighborhood.) There are six different floor plans, ranging from three bedrooms to four bedrooms.
All of the floor plans will have three-story configurations, so plan on walking up a lot of stairs. But vertical mobility aside, there are some nice features about the Mondrian homes. There are open floorplans, Energy Star appliances, and a host of other energy-efficient perks. Let’s just say you should be saving some dollars on your energy bill. (It’ll cut the dent in your pocketbook just a teensie bit from the purchase price in the long-term.)
If energy efficiency doesn’t do it for you, there are plenty more luxe products that you’ll be paying for. There are slab marble or travertine countertops in the master suites, granite countertops in the kitchen, and eight-foot high entry doors. (The tallest man in the world almost wouldn’t have to stoop.)
Here’s another bit of trivia for you. Piet Mondrian, in case you’re wondering, is the name of a Dutch painter, whose works included the use of primary colors and perpendicular intersecting lines against a white background. So if you want to know where the inspiration of the bright pops of yellow and red amidst some strong vertical lines are coming from, look to Mondrian’s work.
March 27, 2008
The New York Times published a story on its Web site on the inherent reluctance of owners to lower their selling prices. The story notes that no other segment of the economy is so resistant to the laws of supply and demand.
When demand for airline tickets drops, the airlines cut their prices until they have sold their seats. When stocks become less appealing, share prices fall, sometimes sharply….Real estate, though, is different. For both economic and psychological reasons, there is no asset more conducive to hopeful overvaluation. That means real estate slumps tend to grind on for years, until sellers submit to reality and reduce their prices.
Of course, one reason folks aren’t lowering prices in this market is that they can’t. They owe more than their house is worth, so lowering the price means they’ll have to write a check to escrow, which hardly anyone has the money to do. So they hold on, hoping for a miracle. Meanwhile, monthly payments and expenses pile up, until pretty soon you have a short sale or a default.
Robert Glinert, a real estate agent in the Los Angeles area, said he has recently been saying no to almost half the sellers who have asked him to represent them. Their initial asking price is just too unrealistic. “People say, ‘I don’t care about the market — my home is still worth what I paid for it in 2006,’ ” Mr. Glinert told me. “And I say, ‘To you. Only to you.’”
The Times story highlights a couple who tried to buy a home in Marin County, California, for $1.575 million, but the owners, who had purchased the house a year earlier for $1,475,000, were unwilling to lower their $1,875,000 asking price:
Back in 2005, after Mr. Harrison and his wife couldn’t find a house they considered fairly valued, they opted to rent instead. They pay $3,250 a month for a four-bedroom home, which is a bargain relative to what their mortgage payments would have been. And that six-bedroom house listed for $1.875 million? The last Mr. Harrison checked, it still hadn’t sold.
The Harrisons’ story encapsulates what’s wrong with the market. First, they were willing to shell out $1.6 million for a home, even though buying would cost them far more than renting. That doesn’t make sense. Second, the sellers were unwilling to part with their house, even though it was drastically overpriced. Can you say “stalemate”?
Whatever happened to “buy low; sell high”? Until mortgage payments become competitive with rent payments, buying simply isn’t sensible. The people who “bought high” have to accept reality before the market can begin to return to normal.
March 26, 2008
Like its neighbor to the east, Van Nuys, and Northridge directly to the north, real estate in Reseda has been beaten up badly in the downturn. The February numbers from DataQuick published in the L.A. Times show single-family home prices down 26% from February 2007; condos down 21% (but just eight condos were sold last month, probably not enough to base solid statistics on).
While the median asking price of SFR’s in the area is nearly $450,000, actual sales prices are less than $400,000. The gap 
between condominium list prices and sales prices is much narrower: both hover right at $300,000.
Two listings, one recently sold, the other nearing four months on the board, illustrate the stress Reseda’s market is under.
17918 Saticoy St.
Reseda, CA 91335
Sold March 14: $241,500
This 3-bed, one-bath 1,080 sq. ft. single-family home near Saticoy and White Oak was sold in April 2007 for $464,000. Its sale two weeks ago for $241,500 is a 48% cut from that price ($224 a sq. ft). Astoundingly, it sold for even more, $535,000 in January 2006, so the latest sale is 55% off that high-water mark.
18345 Schoolcraft St.
Reseda, CA 91335
List Price: $364,950
This is a 1,780 sq. ft. 3+2 ranch house with a number of updates, including kitchen and baths. It’s a lender approved short sale property, and has been on the market 113 days as of this date according to Redfin. The price has been reduced eight times since it was originally listed last December for just under $500,000. The current asking is a 27% discount - so far. And at that price, it’s a remarkable $205 per sq. ft.
March 26, 2008
The monthly Standard and Poors/Case-Shiller housing-price index came out today, and the news is particularly bad for Southern California. From the L.A. Times:
Las Vegas and Miami prices fell most sharply, posting a 19% yearly decline. But not far behind — with annual declines near 17% — were the Los Angeles area, which includes Orange County, and San Diego. The Case-Shiller Los Angeles index is now 18% below its 2006 peak.
That news came on the heels of this report from the California Association of Realtors:
The California Assn. of Realtors reported a February sales increase of nearly 10% statewide from January. But the February sales total was down a record 29% compared to February 2007. The median price of an existing California home fell 26% in February from a year earlier.
The sales uptick in February may look like a hopeful sign, but January historically is a slow month, and a jump from January to February isn’t unusual. It’s shaping up to be another difficult housing year.
The Case-Shiller data suggest that the national housing market remains in decline, said David M. Blitzer of Standard & Poor’s. “Unfortunately, it does not look like early 2008 is marking any turnaround.”
A Bloomberg News story on the same subject included more predictions:
Lehman Brothers Holdings Inc. forecasts home prices as measured by Case-Shiller will decline another 10 percent by the end of 2009. It predicts new-home sales will bottom in the middle of this year and existing-home sales and housing starts will reach a trough in the third quarter.
And more economists are acknowledging the R word:
Increasing numbers of economists are predicting that the economy has entered, or will soon enter, its first recession since 2001. Martin Feldstein, the Harvard economist who heads the research institute that determines when recessions begin, on March 14 said he thought the downturn began and would be the worst since World War II.
Recent Redfin posts:
Condo Sales Flat in Beverly Hills Flats
A House is Not Just a House
March 25, 2008
Huge props to my sharp-eyed husband for spotting this one. He was watching T.V. the other night when this National Association of Realtors T.V. ad came on. We always pay attention to those ads, because we marvel at how the N.A.R. manages to put its “it’s always a good time to buy” spin on everything, no matter what’s going on in the real world. For example, one commercial puts lipstick on the unprecedented inventory of unsold homes by asserting that “buying opportunities have never been better.”
Anyway, this ad — part of the N.A.R.’s “public awareness campaign” — focuses on what a smart investment homes are. Here’s a portion of the voiceover:
“If you’ve purchased one of the millions of homes that will be sold this year, the National Association of Realtors wants you to know that you’re making a good decision — for your family and for preserving long-term wealth. In fact, 60% of the average homeowner’s wealth is from their home’s equity.”
The first time I saw that commercial, I wondered where that home-equity statistic came from. People who are losing their homes or owe more than their homes are worth don’t have any home equity. Many buyers this decade treated their homes like ATM machines, spending their gains faster than you could say “Home Equity Line of Credit.” And just a few weeks ago, the Fed announced that Americans’ home equity was at an all-time low.
Anyway, my husband noticed that the commercial included the source of that home-equity statistic, in tiny print at the bottom of the screen. Here’s what it says:
“Homeownership and Its Benefits,” Urban Policy Brief #2, 1995.
That’s right: The National Association of Realtors is basing its message about wealth-building via real estate on a 13-year-old report.
Times are lean for Realtors right now, and I’m sure it’s alarming to the N.A.R. But trying to get people to buy homes by putting a 13-year-old statistic out there is misleading and disingenuous.
If the N.A.R. wants to gain credibility, it needs to stop feeding us self-serving messages under the guise of a “public awareness campaign.” The truth is, it is not always a good time to buy. The mantra it has relentlessly pounded into us for years — that we should all have the goal of buying a home — has been effective. But homebuying at any cost has been the source of ruin for many families this decade.
Realtors are salespeople whose goal is to sell as many homes as possible. In that regard, these ads may be doing their job. But the public would be better served with a true public-awareness campaign — for instance, “Responsible Home-Buying 101.”
Recent Redfin posts:
Looking Up at Rossmoyne
Spring Fever Dreams
The Ideal Redfin Homeseller or Homebuyer
Franklin Hills aka Skunk Hill
March 25, 2008
Here’s proof that a well-located, well-priced home can sell in any market. This four-bedroom, 3.5-bath Spanish Colonial Revival at 2015 N. Curson Ave. in the Hollywood Hills was on the market just eight days before it went into escrow. And it’s not hard to see why.
As with most CLAW MLS listings, this one doesn’t show square footage or lot size. But a visit to our good friends at Property Shark shows that the house has 3,250 square feet on a 9,805-square-foot lot.
The listing description says it’s the first time this house has ever been on the market and that it has undergone an “impeccable and authentic restoration.” There are only four pictures with the listing, but they are lovely — and the kitchen is particularly stunning.
The house was listed for $1,999,999, so, if it commanded full asking price, that’s $615 per foot. That’s a lot of house for the money for this area, particularly when you compare it to 2+1’s for $1.2 million. Looks like whoever snatched it up agreed.
Oh, and there’s a little Hollywood history attached to this house. It was built by Oscar-winning art director Carl Jules Weyl, best known for his work in “Casablanca.”
March 24, 2008
I recently saw a news clip about two different types of homebuyers. One was a couple using Redfin who felt comfortable with doing a lot of the legwork on their own. Another was a gentleman who felt better going the traditional route - searching for homes with a realtor. In the clip, it says that Redfin isn’t for everyone.
I agree. Now that I’m selling my home with Redfin, I have my own version of the ideal Redfin homeseller or buyer.
The ideal Redfin homeseller/buyer is…
Web savvy - Cause let’s face it folks - unless you know how to surf the Web and navigate through Redfin’s search features, you’re going to have a hard time.
Research-oriented - You really have to have a love of digging up information - everything from comp prices to current market trends in the neighborhood will weigh in on your decision-making process and strategy.
Diligent - By this, I mean that you need to be your own taskmaster. No one (except maybe your spouse or partner) is going to motivate you to get out and check out that next open house or track sales in the area.
Open-minded - Redfin is still relatively new to the market and the idea of doing all your own research isn’t the traditional route. So for anyone who isn’t open to new ideas, Redfin won’t be a good fit.
People-savvy - The better you are at reading a prospective buyer’s (or seller’s) motivations, the better off you will be in making a decision. My favorite thing is deciphering what people really mean when they’re asking you questions.
Question: Where are you moving to?
What they mean: Just how much of a hurry are you in to move so I know if I can get a deal?
Question: Why are you moving?
What they mean: Is there something wrong with this place that I should know about?
Question: How long has it been on the market?
What they mean: Are you desperate enough to drop the price yet?
March 24, 2008
A couple of weeks ago, I wrote about how Beverly Hills 90210 had thus far managed to escape the housing slump. Today, I took a look at the other two Beverly Hills ZIP codes: 90211, which I’ll call east Beverly Hills Flats, and 90212, west BHF.
The Flats has a high concentration of rentals, so overall there isn’t that much for sale here. That said, although single-family homes in both ZIPs are selling well, condos have gone a bit soft.
90211: East Beverly Hills Flats
Single-Family Homes
For sale: 14
Average listing price: $2,035,000
Average days on market: 79
Sold in last 3 months: 15
Average sales price: N/A. For whatever reason, many Sold listings do not include the sold price, so I can’t get a true average. Same is true for average square footage and price per square foot. This is a common problem among CLAW MLS listings and one that CLAW appears to be addressing.
Condos
For sale: 23
Average listing price: $1,278,000
Average days on market: 80
Sold in last 3 months: 4
Average sales price: N/A (see above)
90212: West Beverly Hills Flats
Single-Family Homes
For sale: 4
Average listing price: $2,785,000
Average days on market: 129
Sold in last 3 months: 22
Average sales price: N/A (see above)
Condos
For sale: 21
Average listing price: $1,450,000
Average days on market: 111
Sold in last 3 months: 8
Average sales price: N/A (see above)
March 24, 2008
This week’s LA Times real estate section highlighted the eastside neighborhood of Franklin Hills—which just happens to be the little knoll I call home. The article has locals describing the area (which is between Los Feliz proper and Silver Lake) as “kind of a secret,” and “quiet.” I’d agree with both, but it’s also a pretty trendy area, just up the hill from Prospect Studios, where Grey’s Anatomy is filmed. That means we get our fair, or unfair, share of Hollywood types. In the past few years, it’s turned from a neighborhood of late-model sedans of overseas origin to streets peppered with BMW’s and even a few dreaded Hummers. Take it back to the westside, I say.
Anyway, ranting aside, Franklin Hills is a secret gem, and has been somewhat immune to the recent price drops. It’s a neighborhood that dates back to the days when the original Disney studios where just down the slope, and the area was called Skunk Hill. Lots of those critters still roam the streets, along with a coyote or two.
It’s also walking distance (OK, there are hills to contend with) to Hillhurst and Vermont, where you can find great restaurants like Puran’s and Little Dom’s (a new addition). And there are kids—lots of families in fact. Maybe, as the article says, there were more once upon a Disney-day, but the past few years have seen tons of tykes taking over the streets, BOB strollers and all. It’s also a really social area—so social my neighbor actually borrowed an egg tonight to bread her pork chops. And don’t get me started on the Poop Deck—another neighbor’s backyard bar. Here are some listings from the area:
2429 Lyric Ave. List price: $1.375 million. Days on Market: 192
This is a beautiful new construction, and huge—though it fits on the lot well and doesn’t seem crowded. It’s on the back side of the hill, so the view is east towards the foothills, though it looks like you can also see Griffith Park Observatory.
1838 Deloz. List price: $919,000. Days on Market: 32
This sixties-era 3/2 is cozy at 1,374 square-feet, which may be why it’s already had one price drop (from $939,000) after just over a month on the market. It had a few open houses, but now it’s by appointment only. Last sale is in 2005 for $875,000, so no huge profits going on here.
3977 Clayton. List price: $949,000. Days on Market: 158
Here’s one of those instances where the listing photos don’t tell the whole story. This is a really charming, just redone farm house at the edge of Franklin Hills. Sounds great, but someone recently built a monolithic McMansion right in the back yard—literally within feet of the back wall of this house. If that isn’t a bother to you, this is a cute one.
1940 Hollyvista. List price: $1.525 Days on Market: 2
This really charming Spanish isn’t even in Redfin listings yet. It was last purchased two years ago, and the new owners just put in landscaping. It’s also on a double lot and has enough flat space for a pool—a rarity in the hills. It’s 1953 square feet and last sold for $1.247 in 5/2006.
And here are a few recent sales:
3993 Clayton. Sold for $955,500. Sale date: 1/2008
This 3/2 was built in 1956 and is 1,481 square feet.
3916 Melbourne. Sold for $744,769. Sale date: 1/2008
This 1,800-square-foot Spanish-esque is a 3/4 that was a short sale. I wrote about it earlier.
