We saw a nice improvement in the number of homes sold here in the Hollywood Riviera (27% more) in this last, 4th quarter of the year vs. the same quarter of 2007!  Lower interest rates may have gotten many media-scared buyers to finally realize what a great buying opportunity it really is!  Although for the year overall we saw 30% fewer homes sold (91 in 2007 and 64 in 2008), our average selling price was only down about 6% (attributed to more lower end sales and fewer higher end sales).  The average days on market nearly doubled (66 days this year vs. 39 last year).  The biggest part of the slow-down for number of homes sold occurred in the $1.2 million + price range.  There were 30 homes sold in this range in 2007 and only 21 homes sold in the higher end of the market this year.  A big factor for this was the lack of loan programs available in the jumbo market.  However, the good news there is that the average sales price of homes over $1.2 million in 2008 was $1,467,421, nearly 5% HIGHER than the $1,398,800 figure for 2007!

Most of us have heard the news from December 16th that the Fed is targeting the Fed Funds rate in the range of “0% - .25%.”  What this means is they dropped their rate .75% to .25% but left the flexibility to cut another .25% and take the rate to 0%.

That’s all well and good but the real news for us lied in the commentary:  “the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets “.   The buying of these securities is what directly impacts mortgage rates-investors buy securities, the prices go up and yields (and mortgage rates) go down.

This commitment is huge as it will also prompt other investors to jump in and we should see rates dipping into the mid 4% range!  This is historic as we are now at levels below the previous all-time lows seen back in June of 2003.

In reviewing the 4th quarter Hollywood Riviera sales data, it’s hard to believe but the numbers make for a rosey picture.  14 homes have SOLD this quarter already - October 1st, 2008 - thru today, December 8th.  That is a 100% increase over the number of homes sold this same period of time in 2007.  2007 saw only 7 home sold during that time!  Hard to believe and even more hard to believe is the fact that the data reflects an increase in the average price of the 4th quarter homes sold in 2008.  The average is $1,055,000 (of the 14 homes sold in 20 vs. $968,000 for the 7 Hollywood Riviera homes that sold in 2007’s 4th quarter (partial - Oct 1 - Dec 8th, ‘07)

With this in mind, I would still report to you that we’ve seen a drop in average price overall in the Hollywood Riviera.  We will analyze the entire year 2008 vs. 2007 to come up with that data - it would be my impression that there has been about a 10% drop - we’ll see when I run the numbers.  Intuition is different than data, but my intuition is “educated intution.” 

There are still homes that are selling very quickly and with multiple offers here in the Riviera AND there are homes that just don’t seem to sell.  Typically, it’s all about price - the consensus in the real estate world is that price is the number one reason a house does or does not sell.  And we all know about location, location, location - that just means a better location garners a better price!  Condition of the home is important - as evidenced by the many “staged” homes these days - but in the end, price is the ultimate consideration making up the minds of buyers!  Most want a deal in this buyer’s market.  Interest rates are at some of theier all time lows right now - so many buyers are out there looking to scoop up a deal this holiday season! 

Investigating the Hollywood Riviera real estate market?  Here’s an update for you.

As of September 1, 2008, there have been 21 homes sold.  That is much higher than this time last year when 15 homes sold during that same period.  That’s a nice little 28% increase in the number of homes sold!  Good news at last!  Homes that are priced well are seeming to go into escrow quickly still.  For example one on Via Monte D’Oro recently went on the market for $1,199,000 (under $1.2K seems to get a lot more attention these days) and sold in 9 days for $1,150,000.  That was super quick - I heard they actually had multiple offers - 3 of them.  The average price of the solds last year was $1,051,547 and the average this year is $990,183 - a near 6% drop in the average price.  So seems we have more homes selling but at a reduced rate this time over last year.

As far as what is currently for sale - there are 26 homes available for purchase as of today.  They range in price from $625,000 (a short sale) to $2,395,000 for brand new construction w/ nice views.  We have seen a few Short Sales and Bank Owned properties selling here recently - not a lot however.  The average price of the homes currently for sale is $1,199,800.  Some of the homes for sale have been on the market for a long time - there is a direct correlation between price and how long a property stays on the market.  Buyers want to get a deal in today’s market - if they sense it is overpriced there are not even offers being submitted. 

Bottomline, people still need to buy and sell and this is typically a great time of year for buyers to score on a good deal.  The Hollywood Riviera is the kind of place people love to call home.  The schools are great, the beaches are gorgeous and so close, shopping abounds, the weather is very close to perfect most of the time, and the people are super nice here.

The City of Torrance has a wonderful recycling program - and it gets better - if you like to recycle you most likely know that the current 64-gallon grey recycle cans are usually too small.    Now you can get a new 96-gallon recycling bin for FREE from the city of Torrance.  You can either exchange it or add it to your current inventory of trash bins.  It’s an easy step - just go to this link and order yours today!  Here’s more recycling information from the City of  Torrance.

The following items can be recycled in this program:

Newspaper, Cardboard and Mixed Paper
Catalogues, magazines with staples, glossy paper, junk mail, computer paper, juice boxes, pizza and bakery boxes, corrugated cardboard as well as thinner cardboard like cereal and cracker boxes are included. Do not include paper cups or plates, napkins, tissue paper, fast food wrapping or shredded paper.

Aluminum, Tin and Metal Cans
Cans from drinks, soup, pet food and vegetables as well as empty aerosol cans are included. Clean aluminum foil and trays and wire hangers can also be recycled. Do not include scrap metals from plumbing or construction materials.

Plastic Containers
Only plastic bottles, bags or containers with a number 1 through 7 on the bottom can be recycled. Examples include soda bottles, milk jugs, shampoo bottles and butter tubs. Large styrofoam pieces can be included too. Do not include small styrofoam pieces (called popcorn or peanuts), or any bottle, bag or container without a number.

Glass Bottles and Jars
Glass bottles and jars of any color can be recycled. Do not include glass dishes, light bulbs or window glass.

Other curbside recycling tips:

We encourage residents to recycle whenever possible.  Additional recycling bins are available free of charge for residents who have extra recycling that does not fit into one recycling bin.  If you have the small, 64-gallon recycling bin and wish to replace it with the larger, 96-gallon recycling bin, click here for the request form.

Here we are and it is October 11, 2008 - there are only 21 single family homes and 2 townhouses for sale here in our lovely Hollywood Riviera neighborhood.  That is very low inventory, especially when you consider that this is the “last push” of the year (best time to sell before the holidays hit.)

Of those 21 homes, 13 (including the two townhouses on lower Calle Miramar) are on the Redondo Beach side of the Hollywood Riviera - with an average sales price of $1,561,754.  Lowest price being just under $1 million and highest over $2.5 million (for new construction.)  As you can see the Redondo Beach side of the Hollywood Riviera is quite pricey right now.

The Torrance side of the Hollywood Riviera has 10 homes for sale and their average sales price is $1,015,000 with the most expensive asking a list price of $1,399,000 (it has some of the most gorgeous panoramic queen’s necklace views with no utility wires to distract) and the lowest priced home is currently $625,000 on the PCH service street.

Interesting however that the Redondo Beach side has a much greater Days on Market number - 76 vs 37 on the Torrance side.  Part of the reason for this is that the Torrance side with its lower sales prices is moving homes into sold much quicker. 

The pace of home sales here priced under $1 million is much brisker than the pace of homes sales here over $1.2 million.   Jumbo Mortgages are much harder to attain and cost quite a bit more than their Conforming Mortgage friends.  Currently, the Conforming Jumbo Mortgage, thanks to the Economic Stimulus Plan of 2008, is at $729,750.  That makes it still pretty hard to buy a million dollar home w/ only 20% down…as you can see you would actually need closer to 30% down to make this work.  Also, part of the problem….people need to come in with a lot of cash to buy the more expensive homes here.  Starting January 1, 2009, the “Conforming Jumbo Mortgage” will go down to $625,000 - which in my opinion will not serve our area well.  Hopefully, mortgage underwriting guidelines will loosen up a bit when that conforming jumbo number comes down to $625,000 - as it will really be much harder to obtain financing for the more expensive home at that point - and it will cost more.  Currently, the difference in cost between a “conforming” loan and a “conventional” loan is about 2 to 2 1/2 points…this is a big difference in your monthly payments every month.

  Important Facts About the Two Bond Measures on the November 4th, 2008 Ballots1. Measure Y - $265 million to be used for specific classroom and core academic facility renovations. The tax rate for this bond would be $35 per $100,000 of ASSESSED property value (not market value.)2. Measure Z - $90 million to be used for special school facility projects that will protect and enhance student safety and wellness, and provide specialized programs.  The tax rate for this bond would be $13 per $100,000 of ASSESSED property value (not market value.)3. What is incredibly important to note here is that Voters estimated tax rates are based on the
ASSESSED VALUE of taxable property on the County’s official tax rolls, not on the property’s market value. Property owners should consult their own property tax bills and tax advisors to determine their property’s assessed value.

4. For instance - if your home’s ASSESSED Value (which is based on the amount you bought the home for as well as some other factors) is  $100,000 than your annual cost for voting YES on Measures Y & Z would be $48.

5.   Measures Y & Z require an “Independent Citizens’ Oversight Committee” and mandatory indepent annual audits to ensure funds are spent properly.

6.  It is so important to our children & current property values to keep our schools in good condition.  
Please Vote YES on Measures Y & Z on November 4th!

Saturday, September 20th from 9am to noon is Coastal Clean Up Day hosted by American Honda.  Volunteers to meet at Miramar Park, 201 Paseo de la Playa (intersection of Calle Miramar.)  What a great way to join in and make our great Torrance Beach cleaner and prettier as well as help our environment!  Grab your kids, neighbors, friends and let’s all go down to the beach and clean up!

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! 

Welcome Back Road Runners!!

Riviera Elementary - as well as all the Torrance Unified Schools - begin school again on Thursday, September 4th, 2008!  Riviera Elementary was honored as a California Distinguished School in 2008!  What a wonderful designation for a great school!  Riviera Elementary will welcome 690 students for its 2008-2009 school year.  114 of them are incoming Kindergartners.  There are also going to be several staff additions to this wonderful place for children to grow and learn.

Class lists will be posted  in front of the school office on Wednesday, September 3rd around 5pm.  School starts at 8:46 am for 4th & 5th grades and 8:55 am for K-3rd grades.  There will be a PTA New Parent Tea the first day of school in the cafeteria starting at 10am.  A reminder that Wednesdays are the early dismissal days - school lets out at 2:23 for 1-5th graders and regular time for Kinders (1:55pm.) 

Happy School Year!!  Hard to believe summer is almost over!

For more information visit the school website at http://www.riviera.tusd.org  or call (310) 533-4460