Brokers in Manhattan who work the very high-end say they’ve had strong business right through December and could sell more if there were a greater inventory of apartments. According to brokers and lawyers interviewed by The Wall Street Journal for an article published December 23, 2011, wealthy Russian buyers, who once sought second homes in London, are especially active in Manhattan at the moment, which is seen as safe, in contrast to the increasing political uncertainty in Russian. The Weil sale at $88 million equates to $13,048 a square foot, far in excess of the previous high in the same building at $9,940.

For the year ending 2011, seven sales were recorded for $30 million or more, according to city property records.  The highest closed sale was a $48 million purchase at the Plaza Hotel, bought by another Russian, a composer and music promoter.

In comparison, the highest published sale in the Los Angeles area closed for $85 million in July, 2011.  Originally listed at $150 million, the property, known at The Manor, was built by entertainment magnate Aaron Spelling and wife Candy.  With 14 bedrooms and 27 baths in more than 56,000 square feet, the Bel Air property allegedly was sold to a wealthy British man whose daughter will live in it.  For the whole of 2011, there was only one other sale in excess of $30,000:  A Hal Leavitt re-designed masterpiece purchased for $35 million, from a list price of $42 million, located at 1004 Hillcrest Road, north of Sunset in Beverly Hills.  (See photos of both Los Angeles area properties.) What brokers experienced for the past 12 months is sluggish sales of properties over $10 million with the exception of the Beverly Hills’ Leavitt house which closed within just 47 days last May.

It’s undeniable that a number of factors greatly impacted the housing industry during 2011:  government, the mortgage industry and the forces of Nature (floods, freezes, fires, etc.).  

Initial unemployment claims in the United States fell to a three year low in November, the lowest level since June, 2008.  This is terrific news.  But, don’t rejoice yet.   It wasn’t until the third week of December that claims again rose, possibly in response to holiday temporary workers needing to re-enter the job market.

Experts tend to agree that the housing industry’s positive and negative factors are equally weighty at present.  Others cite the challenges of grappling with the onset of more foreclosures in 2012 as well as reduced home values after a four- year downward spiral in median home prices.

Some buyers hate to become involved in a bidding war.  This occurred with 1214 Pacific as the seller chose to make a counteroffer to nine of the ten buyers.  Moreover, the minimum overbid price for the court event was $956,000. Luckily for the buyer whose offer was accepted, who persevered in escrow to remove all contingencies, no other buyers showed up in court.  The probate judge confirmed the sale at $910,000 to the buyer whose offer had been accepted from among the original pool of ten offers.           

Reasons for the desirability of this property were several. Listed at $799,000, buyers perceived its value.  Secondly, it was located in one of the best locations—and attractive blocks—on an oversized lot for the neighborhood.  Most buyers would prefer to take advantage of the lower price and make their own improvements rather than pay the higher amount for a house that has already been remodeled.  Sold for $910,000.

In 13 of the 15 markets, a greater degree of walkability was directly tied to high home values.  Those areas are;  Arlington, VA; Austin, TX; Charlotte, N.C.; Chicago; Dallas; San Francisco, Sacramento, Fresno and Stockton, CA; Jacksonville, FL; Phoenix and Tucson, AZ and Seattle.

Here in Los Angeles’ Westside territory, areas with high walkability sell well.  Venice, CA, for example, has posted 99 sales of homes since June 1^st, which sold for 97% of asking.  In the Pacific Palisades, houses located within walking distance to the village sold for 98% of asking; 23 have sold since June 1^st. 

In Santa Monica north of Montana, which is a microcosm of Main Street Santa Monica or Rodeo Drive in Beverly Hills, 39 houses sold since June 1^st for 96.7% of their list price.  InSunsetPark southSanta Monica, an area largely flat even if some residential pockets are several blocks from shops, 71 homes have sold year to date for 97.5% of the offer price.

Now that it’s nearly winter and we’re approaching the holidays, lighting takes on a new importance.  Lighting affects mood as well as complimenting and illuminating space.  As a transplant to Southern California (from the Northeast), I could never go back to a residence with little natural light.  Moreover, for 4 out of 5 buyers, I discovered that good light within the home is a major factor.  I have never encountered a buyer who asked for a “dark” house.   So here are practical tips to bathe your home in light:

1. Use halogen lighting in the kitchen and dining areas. The natural white light makes food look more appetizing and appealing.

2. Consider fluorescent bulbs for hard to reach light fixtures. They are more energy efficient and they last much longer than incandescent bulbs.  In a city like Santa Monica energy efficient light bulbs are widely in use.  As demand for them has increased, the cost of these energy saving bulbs has also become more affordable.

3. Installing dimmer switches for your overhead lighting will give you enormous flexibility to alter the mood and appearance of a room.

4. Illuminating outdoor paths and porches in not only great for safety, but makes these areas very attractive.  Use solar powered lights to save energy and eliminate the need for complicated wiring. 

5. Invest in recessed lighting, especially where you have high pitched ceilings.  It creates even lighting within the magnified space and compliments the feel of more expansive space.

Don’t be left in the dark!  For advice on current market trends, present market conditions, including new lender requirements and interest rates, give me a call at 310-442-1646.

Here are five ways to boost your score:

1. Make payments on time.  Set up automatic payments to your creditors.

2. Pay down debt and don’t move it around.  Moving balances to new credit lines can hurt your score.

3. If you have a short credit history, don’t open new accounts too rapidly.   Lenders like to see a long history of responsible payments.  A large number of new accounts can lower your number

4. Don’t close unused accounts.   The longer you’ve had a line of credit open, the better it is for your score

5. Check your credit report.  Order your free annual reports from all three major credit bureaus at www.annualcreditreport.com  and correct any errors that could damage your credit score.

Another plus is to show a history of managing various types of loans from credit cards to retail accounts, mortgages, installment loans, etc.  It can help your score.

As applied to a mortgage, your FICO score will directly affect the interest rate you receive for a 30-year fixed mortgage.   For example, on a $300,000 loan amount, a borrower with a credit score of 760 or higher qualifies for 4.361% interest (APR) which results in a monthly payment of $1,495.   A borrower whose score is between 680 and 699 would obtain a rate of 4.760% resulting in a monthly payment of $1,567, a difference of $72 a month and $864 a year.  * Interest rates as of August 9, 2011.

Recently, Kenneth Rosen, housing specialist at UC Berkeley, described the housing picture as experiencing a sustained but choppy, possibly moderate, pick up.  This comment was prompted by the decline in the number of foreclosures in California.  A day or two ago, Case Schiller reported that the national median sale price of homes was up a whopping six percent.

The New York Times cited an analysis from the real estate site Zillow last Saturday, July 23^rd.   It showed that sellers who bought their homes recently—-in 2008 or later—-tend to overprice their homes most sharply.   Another interesting finding was that homeowners who purchased prior to 2002 are asking for approximately 12% over market value as compared to those who bought in 2009.  Those who bought two years ago are overpricing by about 20 percent, according to the survey.

My realtor experience reveals that not only is pricing key to a successful home sale, but also the competition from other listings will impact the marketing result.   Every agent on the Westside of Los Angeles has seen listings not priced for the current market languish, and some have been withdrawn with sellers realizing it was wise to remain in their home rather than take a hit unless they were compelled to sell.   In other cases, listings priced under market value have garnered as many as 10 offers.  In the Sunset Park neighborhood of Santa Monica, one move-in condition listing with potential for easy expansion on a large flat lot, sold for nearly $200,000 over asking. The sale closed for $1,060,000 on July 26, 2011.

June 2011 was mostly brisk for single family residential sales in Santa Monica, CA.  In Sunset Park, a pocket of roughly 2500 homes which are located in the southern part of the city, four properties sold for an average price of $1,148,750.  The sales took place within 53 days at an amount 97.85 % of the initial offer price.

Farther north in Santa Monica, 90403, which boasts the highly accredited Franklin Elementary School , a mere two houses changed ownership in a residential pocket of  fewer than 1000 houses.  The average sale price was $1,377,500, 96% of the list price.

In the estates area in north Santa Monica, which in this survey includes Santa Monica Canyon, seven sales took place, averaging $3,739,000.  Listings sold within 60 days and closed at 93.53 % of asking.  The average sale price was boosted by features such as oversized lots.  in one case, an architectural property on three quarters of an acre located on Kingman Avenue sold for $8.943,000, after two price reductions. 

In another case involving a rare listing set deep in the canyon on Latimer Road, the property consisted of more than half an acre.  Three out of five listings sold for in excess of the asking price at the time the accepted offer was formalized.  

For more information about Santa Monica, its cottages, castles and lifestyle, please contact us at 310-442-1646.

1)      They are young.  Most are under 45.  Half said they had annual household incomes of $75,000 or less.  Two-thirds are married.  On the Westside, couples need to have a combined income of close to about $100,000 in order to qualify for the purchase of a home in the range of $500,000.

2)      They are frugal.  They consistently told surveyors they were eager to live a simple lifestyle. In Los Angeles’ Westside, with  recent buyers, a couple, each one had been saving and they put down nearly 30% on an $800,000 purchase. Another married couple, both working, were happy to find a house that was reminiscent of “’Grandma’s’” with an old fashioned kitchen and just one bathroom.

3)      They are concerned about their financial future.  About 70 percent in the national survey said the economy is “not so good” with 27 percent saying it could get worse and 27 percent saying there were signs of it getting better.  Two thirds said the economy would improve in the future.  Some 55 percent said they were concerned about their jobs.  In California, that was a strong concern for those working for government or in education.

4)      They see themselves as energy efficient but not necessarily “green.”  About 32 percent said they’d pay extra for energy-efficient features but only 16 percent said they’d pay extra for recycled or renewable construction materials.

5)      Neighborhood is important.  95 percent said they thought the community was as important as the home itself.  79 percent wanted the most square footage they could afford, but 69 percent said they’d consider a smaller home in the right neighborhood.  For example, buyers recently relocated from Paris, held out for a property in Santa Monica, paying more for it and accepting less square footage as well as plugging up a swimming pool.  They’d previously considered Cheviot Hills but felt the bundle of benefits from owning in Santa Monica was worth their paying the extra price.

They are tech savvy. They search and find homes on line on a daily basis. A good real estate agent not only has to stay a step ahead, but should treat their being proactive as a plus, offering extra information and expertise from first hand market knowledge.

Gray has become the hot new neutral, and a popular choice in kitchens for backsplashes, countertops, flooring and cabinetry, according to a recent article in Newsday by Kristin Taveira.  Of course, white kitchens never go out of style, but some designers are encouraging the use of gray as the new white.  “Gray gives you dimension and depth. It can help tie in natural colors like slate and marble on countertops, fireplace backings.”

In the article, designers promoting gray point out that it can:

• Be easily adaptable and coupled with any shade like yellow for more drama, or it can be used to soften another hue;
• Enhance the look of granite, marble and stainless steel as well as slate
• Create a sense of permanence, grounding a long space for more intimacy

Among other neutral choices are warm whites, tawny tans and certain shades of green, according to the Paint Quality Institute’s 2011 Color Trends report.  The neutrals and pastels create warm, inviting living spaces.  

So what are your favorite finds in paint colors for spicing up a home’s interior?  Please contact us with your comments at 310-442-1646.