Michael Greenwald's Real Estate News: July/August 1997

July and August typically create the lowest inventory of the year for the Westside real estate market. Buyers, if they have families, have usually made their moves already, dependent on school beginning again in September. Likewise, sellers have listed homes previous to the summer months because of the school schedule as well. For sellers, this pattern tends to create a bit higher market value because of the low inventory and prime months for relocation.

The Westside area will usually see more inventory after Labor Day, with more buyers in the market as well. While most areas in the country have a 25-30% neighborhood turnover rate per year, the Westside has only a 15% turnover rate. Therefore, the flux is characteristically coming in from out-of-area buyers.

Interest rates are still remaining very low, with percentages in the 7's and 8's, making a purchase very affordable now. Insurance, which was once a problem in the L.A. area, is now readily available. Earthquake insurance, for example, is becoming less and less expensive and will soon be back to pre-earthquake rates. Overall, the economy in L.A. is the best it has been in a decade, with house values appreciating.

The Westside Market July/August Overview

Brentwood: The talk of the neighborhood is the upcoming completion of the J. Paul Getty Museum, which is scheduled to open this December. Visible from all over Brentwood, Bel Air and many parts of Westwood, it will be one of the largest and most prestigious museums in the world.

Westwood: In its prime, Westwood Village (attached to UCLA) had more theaters per square foot than any place on the planet. Work is currently underway to turn Westwood Village into a walking promenade and return it to its glory days of the 1960's and 70's. This is a project which will certainly affect the Westwood home owner in a positive way.

Bel Air: With properties almost 100% residential, Bel Air is a unique community in the Westside of L.A. It is an incredibly valuable area with prices broadly ranging from the low 500's up to 10 million. We are currently seeing a trend for the more affordable homes here to rise rapidly in market value.

Pacific Palisades: As a beach community, Pacific Palisades blossoms during the summer months. Prices in the Palisades, along with Brentwood, lead the Westside in terms of value. This was a neighborhood less affected by our economic slump than other Westside areas; consequently, it hasn't had to climb its way back up in value as others have.

Santa Monica: With its popular beaches and boardwalks, summer is prime tourist season for Santa Monica. Along with the visitors comes great revenue for its residents. Also, Santa Monica, which is a separate city from L.A., has one of southern California's strongest school systems, which is becoming more nationally recognized all the time. This results in buyer competition to move into Santa Monica during the summer months, prior to the coming school year.

Interesting Sites on the Web

The Single Source for Independent Real Estate on the Web

The International Real Estate Digest (IRED) is full of information of interest to home buyers and home sellers alike. With an impressive array of original content as well as links to the best of the web, this site is an excellent resource for those interested in the real estate industry. The site features financing information, a great classifieds section, in addition to the IRED top ten--a monthly ranking of the top ten sites pertaining to a given question. For June, 1997, the question was "Who has the best/biggest/easiest searchable list of properties for sale?" The answer? Visit the web site to find out.
World Wide Web: http://www.ired.com

UnReal Estate Humor

If you're a person who has ever bought, sold, or worked in real estate, this is the site for you for a little chuckle. UnReal Estate hasn't been updated in quite awhile, but there are a handful of timeless cartoons to check out. The author also has plans to publish UnReal Estate Cartoon calendars and books.
World Wide Web: http://mindlink.net/Rick_Carlsen/unreal.htm

Looking to Rent?

This apartment search site offers a very large database of rentals online. The search forms are easy to understand and navigate. I came up with quite a few nice apartments in a variety of cities I searched in.
World Wide Web: http://www.allapartments.com

Building a house?

If your interested in building a home, then check out this site for all kinds of helpful tips and tidbits! You will find everything from a virtual tour gallery of homes to new product overviews.
World Wide Web: http://www.builderonline.com

Interested in Remodeling?

At this site you can find a local remodeling pro to previewing new design ideas for the rooms in your home. This site has a wonderful guide to building products and a very informative how to section.
World Wide Web:http://www.remodeling.hw.net

Need to Change Your Job?

CareerPath.com is a new online employment service featuring job listings from six of America's premier newspapers. The Boston Globe, Chicago Tribune, Los Angeles Times, The New York Times, San Jose Mercury News, The Washington Post.
World Wide Web: http://www.careerpath.com

RE NEWS UPDATE! - Home sales near record

May was third strongest month in 30 years

from Inman News Features

Sales of existing single-family homes rose to the third highest level on record, despite predictions of a downturn by some experts.

Sales for May rose 4.4 percent above April to a seasonally adjusted annualized rate of 4.24 million units, according to the National Association of Realtors.

Last month's resale rate was only 0.9 percent below the previous record set in May 1996, when sales reached 4.28 million units. That record is the highest since the group began tracking home sales in 1968. The second highest sales rate was 4.26 million units in December 1993.

"Given the robust activity earlier this year, we had expected sales to ease off, but the current volume reflects sustained consumer confidence, strong employment figures and some pent-up demand in the trade-up market," said Russell K. Booth, NAR's president. "Although we are well into a period of very strong housing activity, we expect fairly stable sales for the balance of the year."

The national median existing-home price was $123,200 in May, up 4.8 percent from the May 1996 price of $117,600. The median is the midpoint -- half the homes sell for less, while half sell for more.

The price change shows some demographic shifts in buying patterns, said John A. Tuccillo, NAR consulting economist. "Currently, existing-home price increases are running about three points over the rate of inflation. This shows a lot of activity by trade-up buyers, many of whom have been on the sidelines over the last few years," he said. >From a regional perspective, sales increases in the South and Midwest offset a decline in the Northeast.

The South registered the strongest monthly increase, with resales of 1.58 million units. This was an increase of 8.2 percent from the pace of 1.46 million units recorded the previous month. Sales remained unchanged from May 1996. The median price for an existing home in the South was $108,300, up 5.9 percent from a year ago.

Midwest resales rose 5.9 percent to an annual rate of 1.07 million units in May, compared to 1.01 million units in April. The rate slipped 3.6 percent below that of a year ago. The median price in the Midwest was $105,100, up 5.9 percent from May 1996.

Western sales didn't change, but were 2.1 percent below the level of last year. The median price in the West was $159,400, up 5.1 percent from a year ago.

Northeast sales dropped 1.5 percent to an annual rate of 650,000 units in May, from the April's 660,000 units. The May rate was 3.2 percent above a year ago. The median resale price in the Northeast was $146,600, up 2.9 percent from May 1996.

Past Newsletters Second Half 2001 First Half 2001 Second Half 2000 First Half 2000 November/December, 1999 July/August, 1999 January/February, 1999 October/November, 1998 August/September, 1998 June/July, 1998 April/May, 1998 January/February, 1998 November/December, 1997 September/October, 1997 July/August, 1997