The SchifferLine

Timely real estate news from Carole Schiffer                                 17 December 2007 _____________________________________________________________________________________________________________________

Happy Holidays.....brrrrrrr!  Baby, it's cold outside
Yes, it certainly feels like the Holidays.  Winter surely arrived early --- but you know what?....it's fun to bundle up in your warm overcoat, put on some of those gloves and toss that wool scarf you never seem to wear around your neck and head out to do your holiday shopping.  I love the holiday season -- the parties, the decorations, seeing friends and lights every where.  Puts a big smile on my face...so I do hope that all of you have a wonderful Holiday season.  We, indeed, have much to be thankful for as we end our Year 2007.

So, what gives with the market these days?
The housing market, in general, has been experiencing challenging times as you know.  And one of the sure signs that we are seeing a slowing down in home sales (as reported in my last Schiffer Line on December 4), inventories are up, sales are down, but prices remain steady for our communities of Beverly Hills, Brentwood, Bel-Air, and Beverly Hills Post Office.  That is the good news.

The bad news?  If you're in the market to buy a home, it is going to be tougher to get the loans on terms that we have enjoyed for so many years.  There are two big issues facing us:

1)  The  loan-to-value ratio is going to be changing with major banks early next year--  on a general basis, buyers are going to have to put more money down  -- 30% or more according to John Ciolino of First Capital Mortgage, 

2)  Also credit scores are being looked at more closely -- someone with a credit scores in the high  600s, who would normally not have to pay a point at the most for their loans, will now be paying two points.  Loan applicants with credit scores in the 700s, will be paying one point -- where before, they paid none.  
And with mortgage rates climbing this week according to Freddie Mac, we have been enjoying a relatively low-interest environment for the past two years.  Higher rates, increased credit scrutiny and higher down-payment requirements all add up to stiffer challenges for both buyers and sellers.

As I have been pointing out over the past several years, when the market began tightening up, buyers and sellers have to be more considerate of existing market conditions -- the feeding frenzy of multiple offers and zooming real estate prices are for the most part a thing of the past, though we are still seeing multiple offers. As we all know, the real estate industry -- like everything else -- is cyclical.  But for now, be patient....watch your credit scores...and be prepared to put more down on your next purchase than you have had to in the past.

Route 405 Sepulveda Pass Project 
There is a lot going on right now regarding this very important project – The reverse lane project on Sepulveda is slated to being in March of 2008, but in checking it appears that most likely will be delayed as well, I am not sure for how long.  As for the proposed changes on the 405 for the car pool lane, the final EIR/EIS report is going to be ready for approval in late January 2008.  In the meantime, a host of community organizations, homeowner groups, including Bel-Air Crest Association and individuals (including yours truly), are meeting within the Los Angeles Department of Transportation (LADOT) over the next several weeks to discuss specific projects within the overall program.  
There are a myriad of planning details that are being worked on by hundreds of dedicated and interested citizens.  it appears that the LADOT is listening -- and I'll keep you up to date on all of this.

Going Green with Green Tips

For the new year with the SchifferLine, I am going to be passing on to you "Green Tips" -- a selection of recommendations from various sources on living “Green”.  If you have a suggestion you'd like to include in our Green Tips...please forward them to me and we'll pass it along to all of our neighbors, too.

For a start, I am sure we all have seen the term "sustainable ” in the markets, restaurants, etc.   That pertains to flooring as well.. so the Green Tip of the day is to consider some materials other than the normal, carpeting or wood… one of the solutions to replace wood is bamboo as it is sustainable (replaces itself faster) than a tree obviously would.  Another more obvious solution would also be stone floors.  The chemicals in the carpet and padding are not considered green products.

Again, if you have any suggestions, please do pass them along.

Have a Happy Holiday and enjoy your family. 

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The SchifferLine

Timely real estate news from Carole Schiffer                                        5 December 2007 _____________________________________________________________________________________________________________________

The Westside continues to hold its own....isn't that good news?

Of course, it's good news. But when I read the Los Angeles Times and other media every week, I look in the mirror and ask myself: Am I going crazy? Is this some reality show that is going to have a bad ending?

In many ways, the micro-climates that help produce the vintage Moraga wines represent the best 'side' of our communities of Beverly Hills, Bel Air, and Brentwood, which have become their own micro-climates in a world of real estate -- these neighborhoods continue to weather the storms raging around them -- falling real estate prices, obscene inventories, and mounting foreclosures. It's been a relief to get a reality check when I review the end-of-the-month stats issued by the Multiple Listing Service (MLS). I focus on four neighborhoods -- Beverly Hills, Beverly Hills Post Office, Brentwood and Bel-Air. Every first day of the month, the new numbers come out -- some neighborhood median sales prices are up, some down. It has been like this for decades. Sales statistics have always been skewed over the years since many of the larger -priced homes were withheld from monthly numbers when they were reported as hidden sales prices. Keeping a $25 million sale out of the area's MLS data does make a difference when you compute the median sales prices. Many agents were also withholding the public posting of the sale -- at the request of the seller -- by not releasing the final sale information to the MLS. When we look at the stats for the market, there are a number of factors that come into play, yes, the prices are holding their own, but where we are seeing the big difference is in the number of sales themselves…. They are down.....Everyone in real estate on the Westside knows that while we have kept our price levels (while surrounding areas and other parts of California and the US have fallen sharply), inventories are up and the number of sales are down. In the four communities in which I work, we have seen a 13.1% drop in number of homes sold year to date between 2006 and 2007 -- from a total of 697 homes in 2006 to 605 in 2007. Number of homes sold for the past month (November 2007), we have seen a 50% drop (from 44 in November 2006 to 30 in November 2007).

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So, what gives? Groundhog Day comes to mind.

November figures were released over the weekend -- and after you distill all of the numbers from these four communities, you realize that there is a Groundhog Day message here -- some areas are up, some down like every other month. Beverly Hills continues to show strength in the median sales price with a 124% increase for November 2007 over November 2006. Beverly Hills's year-to-date numbers for median sales price are also up 17% over 2006, averaging more than $3.650,000 per sale.

Brentwood was up in its November 2007 numbers as well -- 23% over November 2006....but was down a mere 1% for year-to-date for 2007 vs. 2006 YTD.

Beverly Hills Post Office was down 24% for median sales prices for November 2007 vs. same month 2006, but up 19.3% for YTD. And then there is Bel-Air, which has been lagging lately -- down again for November 2007 by 36% for median sale price, but it is up 2% over YTD numbers for 2007 vs. 2006.

See? There is a little bit of good news everywhere. It is the nature of our Westside Micro-Climate. The winds of real estate don't always blow evenly from community to community, and that's why I always take extra special effort to analyze each property, each neighborhood, and each area on an individual basis. One of the key statistics to look at is “Days On Market” (DOM), and compared to 2006, we are down from the high 70s and 90s -- Beverly Hills's DOM for November was 75; Beverly Hills Post Office -- 52; Brentwood -- 50; and Bel-Air, 69 days. Yes, inventories remain higher than they were three years ago -- but this is not three years ago. We're here now -- and the advice I have been passing along to each seller is to be careful about pricing your home properly -- it is not the time to get greedy. The longer a home sits on the market, the faster its value declines. it's the nature of the real estate beast.

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Timely real estate news from Carole Schiffer                                15 November 2007 _____________________________________________________________________________________________________________________

Our micro-climate is doing just fine...as in fine wines....

If you were a farmer looking for the perfect micro climate to plant grapes that would produce the finest reds or whites, the last place you'd think of is Los Angeles's Westside. Tom and Ruth Jones, proprietors of the renowned Moraga Vineyards (moragavineyards.com) in Sepulveda Pass, would tell you that they have found the perfect micro climate to raise these quality grapes on their 16-acre estate they purchased 40 years ago. They produce two premium wines -- Moraga Red and Moraga Red which sell for approximately $125 per bottle to a select list of clientele. And they sell out every year. Robert Parker, the famous wine critic, claimed that "...Moraga could easily be mistaken for a top-flight Bordeaux." This is a little-known treasure in our very own Moraga Canyon.

In many ways, the micro-climates that help produce the vintage Moraga wines represent the best 'side' of our communities of Beverly Hills, Bel Air, and Brentwood, which have become their own micro-climates in a world of real estate -- these neighborhoods continue to weather the storms raging around them -- falling real estate prices, obscene inventories, and mounting foreclosures.

Certainly, we get our share of misery some times, but overall these communities, including the Beverly Hills Post Office neighborhood have performed better than most places in the United States and in Los Angeles in particular.

For example, median sale prices on the Westside took a big leap upward in November with Beverly Hills Post Office area posting a 187% increase vs. 2006 MSP according to the Multiple Listing Services for our area. Beverly Hills had a 137% increase over last year, and Brentwood had a 42% rise in the median sales price. Bel Air had a modest 8% drop in MSP, but this appears to be an anomaly.

The median sales price for 2007 year-to-date for all four areas are slightly ahead of 2006 prices, meaning that we are holding our own in the face of declining markets elsewhere in California and around the US. Yes, I would say that we, indeed, have a beautiful micro-climate for home investment -- and fine wines, too.

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Foreclosures...

at this point, appear to be minimized as well on the Westside. From all indications, there still is some mortgage garbage to clean up, and perhaps more to come. However, currently, there are a total of eight condos and 11 homes that are in the foreclosure 'track' in the four areas I primarily focus on (Beverly Hills, Brentwood, Bel Air, and Beverly Hills, and Beverly Hills Post Office) -- meaning they are in one of three stages of the foreclosure process --1) notice of default, 2) trustee sale, and 3) actual sale. -- and we'll check in December to see what actually ended up being sold. Many foreclosures go through the first two stages in the foreclosure process, and get corrected (paid up and thus cleared) before they reach the actual foreclosure sale.

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My trip to China was beyond all expectations.....

I just returned from 19 days in China, a trip planned -- it seemed -- for a lifetime. It is one of those mystical, far-off places one dreams about visiting and for lots of dumb reasons, never goes. But this summer, I made my reservations to visit Beijing, Shanghai, Chung Quing ,Xian, Guilin, Hong Kong, and spend four, luxurious days on the Yangtze River. I took over 500 photos with my new digital camera, and I could have taken another 400 -- the country is so magnificent.....the people so friendly and hospitable. The accommodations were five-star all the way...the food was too delicious....and the sites (Terra Cotta Soldiers, The Great Wall, and so many others) exceeded my expectations. The Pandas are too cute for words.

What most impressed me was that China is a very exciting country -- and especially to witness what they have accomplished during the last 20 years since Mao Tse Tung died. China is very clean, orderly, and the people are very friendly, and boy are they 'ready' to host the 2008 Olympics. I now have a vocabulary of approximately 20 Mandarin words. (It was fun to learn even the simplest terms and phrases, and the Chinese really enjoy you trying the language.. except when they are trying to sell you something at one of the “hello” markets.)

I wasn't the only American there -- that's for sure. Thousands of Americans are streaming into China to experience this exciting and beautiful country. And I was fortunate to see the Beijing Opera, a Kung Fu show, and the world-famous acrobats. What treasures.

Now, back to reality....to fine wines....and to a great real estate market! (Ding, ding how --- translated… very, very good) !!!)

Have a great Thanksgiving.

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The SchifferLine

Timely real estate news from Carole Schiffer                                         1 November 2007 _____________________________________________________________________________________________________________________

Goodness Grief....Where was Charlie Brown when we needed him?

My sincerest sympathies to any of you who either directly experienced a loss of property or who has friends/relatives who lost their homes or businesses. Perhaps Charlie Brown could have come to our rescue, but he, too, would have been challenged this time around.

Goodness Grief....Where was Charlie Brown when we needed him?

My sincerest sympathies to any of you who either directly experienced a loss of property or who has friends/relatives who lost their homes or businesses. Perhaps Charlie Brown could have come to our rescue, but he, too, would have been challenged this time around.

The fires that devastated much of Southern California last week never come at a good time. We've grown to expect them --, if it's October, it must be fire season. We never get use to it, and the fires have taken their toll again across our normally beautiful landscape. In addition to watching the horror of these fires, it is possible that the question may arise in most people's minds -- how will these fires affect us here, even if you were not directly in the line of fire?

What can we expect from the results of these fires? In a practical sense, we can probably count on insurance costs going up -- the costs will be spread across the board (meaning all of us). Insurance companies are traditionally risk adverse, and the closer we are to a situation such as we have experienced, the higher their rates are initially, but then they tend to decrease again. Mortgage rates should not be directly affected -- they don't 'redline' in determining rates, although what state you live in can affect your base rate according to Jim Greenwald from First Capital. The lenders, as we all know deal with the loan to value ratios among other things. Jim did mention that if a property is currently in escrow, particularly if it is near a “fire area’ the lender will definitely do a second and perhaps even a third appraisal to assure that the property is in the same condition it was in at the time they did their first appraisal

If history is a benchmark, then we can expect temporary downturns in real estate values where the fires occurred -- Malibu, Orange County-affected areas, Lake Arrowhead, and much of San Diego County, already suffering from the real estate doldrums. But here in Beverly Hills, Beverly Hills Post Office, Bel Air and Brentwood, there will be little after effect because of these fires. After the Northridge earthquake in 1994, property prices sank a bit, but resumed their steady climb a year later.

Why? The answer is quite simple -- people love living here, the weather, and incredible choices of amenities Southern California offers -- fires, floods, and earthquakes and all. People tend to rebuild their homes in the exact same spot as the one they lost. Case in point, my attorney lives in Las Flores Canyon in Malibu and he and his wife have rebuilt their home twice! They just love living there. Given the fact that people do rebuild or fix their homes, there is a strong possibility that the building industry, and all of the facets of same may see a resurgence of business and may actually aid the economy (according to the Los Angeles Times) of Southern California. .

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Sepulveda Reversible Lane is "On"

In case you missed last week's Los Angeles City Council meeting or the mention in the news media, the Reversible Lane Project has been officially approved. Starting sometime in early 2008, probably March, the City will begin installing the equipment to electronically control the flow of traffic on Sepulveda Blvd. -- three lanes south in the morning; and three lanes north in the evening. Right-hand lanes have to also be installed. The project is expected to take one year, completing in spring 2009.

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Worried about higher mortgage rates? Look at the past -- you'll feel much better

We need to count our blessings when it comes to real estate mortgage rates. Yes, I know -- when we get a 1/4 or 1/2 point rise in loan rates, we all moan/groan. But seriously, Coldwell Banker distributed a chart showing the past 25-year history of mortgage rates for conforming loans -- and what do we discover? 1983 -- rates for a conforming 30-year fixed rate mortgage was 13.95%....in 1987, it was down to 11.36%....1992 -- 9%...1997 -- 8.27%, and just in 2002, it was 7.18%. Today, average 30-year fixed rate mortgage is 6.78%! The amount of a conforming loan in 1983 was $103,000, and today it is $417,000.

And on top of that, foreclosures across the United States are less than one percent (.065%) of all mortgage loans….meaning that 99.35% of all loans are solid!

So what does this tell us… yes, the market is slower than it has been in the past, and yes properties in general are staying on the market longer than they did in the past, but our local real estate market is certainly not in the “tank” as has been described in the media. The articles in the newspapers only speak about what is going in general with their headlines, etc., and get to the information about West Los Angeles at the bottom of the article if they get there at all. The facts speak for themselves.

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On a personal note.....

As I mentioned in my last Schiffer Line, a reader pointed out that I was missing a hyphen in Bel Air. The person wrote again that I am spelling name Bel Air incorrectly. To wit -- I researched it far and wide. The results? Google does not use a hyphen. The Bel Air gate on Sunset has one place with a hyphen, but prominently atop the gate there is no hyphen in the name. Given the fact that there doesn’t appear to be a consistent way of spelling it, I think I will stick with Bel Air without the hyphen rule. But again, thank you for reading my newsletter and caring.. I really appreciate it.

China is calling -- and when you read this, I will be riding a sampan in Shanghai. My two and one half week trip takes me to all the major cities and attractions -- I am very excited about seeing all of China’s historical places, including the Great Wall, the Terra Cotta Soldiers in Xian, the magical mountains of Guilin, the hustle and bustle of Hong Kong, and to hopefully visit a few of China’s premier glass artists in Beijing and Shanghai. This is a life-long dream....and I'll fill you all in on my return.

Please be assured that my office will be open and available to you in my absence. Not only will my assistant Jacqueline be here for you, but I will also have another agent covering for me as well. While I am gone, I do want to wish you a Happy Halloween, and hope that if you do go to a masquerade party that you have fun time playing with your costume.

I will speak with you soon.

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The SchifferLine

Timely real estate news from Carole Schiffer                                         15 October 2007 _____________________________________________________________________________________________________________________

Trying to make sense out of MLS requires patience and more data........

As a Realtor, it is always difficult to understand just where a property stands relative to the competition for a number of reasons. One of the reasons is because real estate professionals rely on the comparable sales from the MLS (Multiple Listing Service) to establish the selling price. Up to May, 2007, any seller or buyer could ask that the sales price not be published for purposes of privacy. This policy changed in May whereby the MLS would no longer accept ‘zero’ sales prices. The MLS is now taking them out of the public records, which may take as long as three months after the close of escrow to be made public, thus adding to the comps on a delayed basis.

What about private sales? I generally have not figured any private sales in the SchifferLine monthly statistical analyses, although they are always listed in my quarterly update. I get a monthly report from the title company which gives me all of the sales activity in the areas that I report (Beverly Hills, Bel Air, and Brentwood). Speaking of reports, because I sell a fair amount of property in Beverly Hills Post Office, which is the area just above Beverly Hills, and immediately adjacent to Bel Air along the ridge line off of Mulholland, effective with this issue of the SchifferLine, I will also be giving you those stats along with the initial three areas in the future SchifferLines’.

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So, what is happening in your neighborhood?

In the end, we're going to see greater consistency in our reporting. And that will help us all deal with the setting the right price for your home. As I have learned from the many years I have had in real estate, setting the right price is probably the most challenging, most difficult decision we (me and the seller) have to make. So….after all is said and done, one of the reasons to select Carole Schiffer as your Realtor is that she truly understands the market conditions in your neighborhood. ******************************************************************************

Great Tastes Celebrates 20 years!

I just wanted to pass on a personal note -- Great Tastes In Brentwood celebrated its 20th Annual event on Sunday, October 7, on San Vicente Boulevard. We have had more than 500,000 attend this street faire over the past 20 years of great tastes and great smells-- with the proceeds benefiting the local public schools. As the creator, producer, director and chairman of the event since we first started in 1987, I want to thank all of you who have made this possible. Our guests, sponsors, restaurants, and donors. And, I want to congratulate Franklin Farinas, a Brentwood resident, for winning the weeklong trip for two to Tuscany with the Tuscan Women Cook program. Franklin promises to invite all of us who did not win over for a wonderful Italian meal…. Can’t wait!.

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Sepulveda Reversible Lane

It looks like this project is moving forward, even though there are still some undetermined components that need to be finalized. It has passed the necessary committees in the Los Angeles City Council, and should it be passed by the entire City Council, construction should begin some in the first quarter of next year.

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Thank you to all of you who let me know that you are reading the SchifferLine and care. It is always such fun to meet you and have various lines from past SchifferLines’ quoted back to me or to be asked how my niece is enjoying USC – she has settled in now…though I am still trying to get out of the “clothes-washing thing”. I also want to thank who ever it was that wrote and made some suggestions and corrections about the hyphenation of the Bel Air. It is wonderful to know you care. Thank you.

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The SchifferLine

Timely real estate news from Carole Schiffer                                 17 September 2007 _____________________________________________________________________________________________________________________

We’re all in the same boat.......

When I drive through our neighborhoods, I am amazed at how incredibly beautiful our communities are...the envy of the world. So it distresses me when I read about the economic news, the downturn in the real estate market, and perhaps (perhaps being the operative word here) that a recession is possible in 2008. It was somewhat comforting to read the latest UCLA Anderson School of Business report that while we could possibly experience a downturn next year, the prediction was that 2009 was going to be a good year for Southern California. We’re skidding across thin economic ice now...but I remain positive. We have just have to hang in there and get through this mess.

With the slowdown of the real estate market, increased inventories, and the mortgage industry debacle, I constantly remind myself of what I have been saying for the past 12 months: We are fortunate to live in a beautiful 'micro-climate' of communities that seem to endure, year after year, many of the travails other areas in California and the nation experience.

As a resident of Bel Air Crest, I share many frustrations many of you have with the real estate market...the looming construction on Sepulveda Boulevard...and the uncertainties of the economy. But overall, I have found new resolve, a new sense of positiveness about the future. The bright side of our real estate market is that we continue to show strength in our home values. If you’re thinking of moving, it is not a bad time to move — you just have to be careful about pricing your home properly. And if you are in the buying mode, there are some wonderful opportunities in our communities. But the bottom line is that quality homes will always retain their value as we have seen in Beverly Hills, Bel Air and Brentwood.

In the end...in good or bad times...we’re all in the same boat. But what a lovely, lovely boat we’re in!

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Thinking of moving down to something smaller?....remember Prop 60/90

I have many clients who decide that their present home no longer makes sense — it’s too large, the kids are gone, they want to scale down and charge their lifestyle, etc. If you’re 55 or older, Prop 60 allows you to transfer the assessed valuation from your old home to a new property (under Prop 13) if you move to a new home of equal or lesser value. This is allowed only once in your lifetime, however, and a spouse who has done it before negates the ability to use it a second time.

Prop 90 allows counties other than Los Angeles to accept the Prop 13 values if you are 55 and older. As of June 1, 2005, these counties allow for this transfer: Alameda, Los Angeles, Orange, San Diego, San Mateo, Santa Clara, and Ventura. [Contra Costa, Inyo, Kern, Riverside, Modoc, Monterey, and Marin have dropped out of the Prop 90 program).

Prop 60 and 90 apply if you ‘trade down’...if you buy or build a new home, you must go down in price. If you sell the old home first, then buy the new home, you may go up five percent in the purchase price of new home in first 365 days after the sale of old home. If you buy a new home more than one year from the sale of old home, but less than two years, you may go up 10%. For more specific and definite advice, please consult with your tax advisor.

I’ve done several of these transactions over the past few years, but it is important you understand the ramifications of both propositions....and you must apply to the tax assessor’s office to qualify for this benefit. It is not granted automatically. Call me if you have any questions about this please consult with your tax advisor.

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Great Tastes in Brentwood

Coming up in a few weeks is the 20th annual Great Tastes in Brentwood, which I have been proud to produce and direct for the last 19 years. The date is Sunday October 7 and it is held on San Vicente in Brentwood from 12 – 5. Over the years we have raised over $500,000 for the local public schools that service Brentwood and Pacific Palisades, and look forward to furthering our contributions to the schools this year. We will be featuring tastings from 24 restaurants throughout the city, have a live auction, wonderful entertainment for adults and kids, wine, margaritas, and fun for all.. Admission is $2.00 or a can of food for the Westside Food Bank (kids under 6 are free). Greattastesinbrentwood.com

Please join us for a fun and rewarding day.

If you have any questions, please give me a call (310) 442-1384 or ceschiffer@aol.com

Hope to see you soon.

Carole

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The SchifferLine

Timely real estate news from Carole Schiffer                                         1 September 2007 _____________________________________________________________________________________________________________________

It’s all about looking at your home through the right end of the telescope..........

My home is more than an address at the title company or a square on a plot map at the City of Los Angeles. This home is my 'castle'....it is where I have built so many memories and experienced both good and bad times. My life is wrapped up within these four walls so to speak. Here, I celebrated my parents’ 50th wedding anniversary, the memorial service receptions for both my Grandmother and Dad, holidays and too-many-to-count family dinners. Even the memory of a dear friend who survived a heart attack resonate within these walls. No, my home is not a legal description. I add up all the values of what this home means to me...and I realize how difficult it is for many clients of mine who are faced with one day sitting down and sticking a 'price' on their home. How do we separate the reality of the “bricks and mortar” from the “home” factor…. That is the real battle.

This situation reminds me of the Antique Road Show....you see sons and daughters, moms and dads....appearing with an heirloom from their grandmother's attic..."been in the family for generations." An antique expert tells them all about where this 'antique' came from, and then how much it is worth...and if they're pleasantly surprised, a broad grin crosses their face. "Well, of course, we wouldn't part with it." In many ways, your home becomes a part of the family....

My home is sorta like that....I read that this home might fetch a couple of million, but I really am not interested in selling or moving from my lovely neighborhood.

Some times, I feel we get mixed up about all this real estate news -- doom and gloom. My clients always have good, solid reasons to move or buy a new home. That's not the challenge we face -- it's more about agonizing over falling or rising home prices, and we place ourselves in situations where, in fact, we're not really having to deal with -- we're not selling, or we're not buying. But if you are in either situation, living here in our communities of Bel Air, Brentwood and Beverly Hills -- it ain't so bad.

For every sale, there is a buyer. We focus too much, it seems, on the 'median sales price'...and frankly, I'm guilty of that, because every month, I'm touting the price appreciation in our communities. But looking through the other end of the real estate telescope, the confidence shown in our communities is really exhibited by the buyers -- who purchase these homes….and they are out there. They have FAITH in our communities...they put their money where their dreams are.

For example, buyers have plunked down more than $1.321 billion on homes (from January to August 2007) for the privilege of living in the neighborhoods of Beverly Hills, Bel Air, and Brentwood, just $68,000 short of what buyers did in 2006 for the same period. In these three markets, median sales prices have remained almost constant in this ‘down’ market for this year, where we have seen an increase in inventory and days-on-market for homes not priced correctly.

The overall median sales price for Bel Air, Brentwood and Beverly Hills is only down $3,000 (total) for this August compared to a year ago, and this includes a wild swing in Beverly Hills which saw sales volume decrease by nearly $60 million in August 2007 (compared to August 2006). Bottom line: Compared to the doom-and-gloom reports about the residential real estate market in the Southland and around the Nation, we’re holding our values — a solid indicator of what home buyers think of our ‘castles’.

So, next time you walk into your home, take a deep breath and realize that you’re really in a very, very special place. It’s, indeed, a privilege to live here.

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Sepulveda Reversible Lane is "On"

The public hearing for the expansion of the 405 was held at the Skirball Cultural Center on the evening of August 22nd. The three revised proposals for the work that would be done were presented along with any public comments. Basically there are three different alternatives for the proposed work to be done, one of which is to have nothing done, and then the other two have a basic theme and then there are variations on those themes. Rather than my taking the time to explain them in detail, I suggest you to go to the website… www.dot.ca.gove/dist07/travel/projecta/move405. This will enable you to see in great detail exactly what is being proposed. I also recommend that you send in any written comments you may have regarding this project. The deadline for the receipt of your comments is 1 October 2007, and they should be sent to… Mr. .Ron Kosinski, Deputy District Director, Division of Environmental Planning (405 HOV) DOT, 100 S. Main Street, Los Angeles, Ca. 90012 

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Here we come....Best Buy, Bed Bath & Beyond, and Target...Morgan starts USC

Like so many other kids, my niece Morgan, started college last week. The thousands you pay to a University, however, doesn’t cover bedding, computers, digital HDTV, school supplies, meal plans, eating and cooking stuff, hangars, trash can, chairs, plants (her first orchid, whom she named Esmeralda), shoe bags, storage containers, and bedside tables. Well, my sister, mother and I met the challenge along with all of the other relatives of college students doing the same thing. We had sooo much fun spending my sister’s money on all the stuff Morgan needed to outfit her new dorm. Now is the time for the home sickness to set in and the reality of understanding her “new life” to begin. Stay tuned.

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The SchifferLine

Timely real estate news from Carole Schiffer                                         17 August 2007 _____________________________________________________________________________________________________________________

Don't panic....the only thing we have to fear is.....

FDR said it best...."the only thing we have to fear is fear itself." Certainly, he wasn’t referring to the real estate market, but after reading/hearing all of the doom and gloom media since I last wrote to you two weeks ago, you would think the sky has fallen. It hasn’t.

The media focus, for the most part, has been on the demise of mortgage lenders who are (or were) carrying significant and various kinds of sub-prime loan paper. This market has deteriorated quickly in the past six months as you have all seen and heard. Additionally, investment firms with large portfolios backed up with sub-prime loan paper have also seen their assets diminish.

Let me share with you some background about our venerable Westside: According to an article in the Los Angeles Times last week, in the past two years only eight out of 519 loans in Santa Monica’s 90403 zip code were sub-prime loans. We can contrast that with the San Fernando zip code of 91340 where 186 out of 690 loans were sub-prime.

In addition, though there have been over 17,000 foreclosures in California since the beginning of the year (eclipsing the record set in 1996). When we add up the Westside zip codes of 90049, 90272, 90402, 90403, 90210, 90077, 90025, 90024, and 90265 we see a grand total of only 25 foreclosures all year (since January 2007).. (Thank you Los Angeles Times for this information).

I have been extolling the strength of our Beverly Hills-Bel Air-Brentwood market — we live in a microclimate of a strong, enduring economy here in the Westside that continues to hold its home values (up 4% overall since January ‘07). And when you factor in the enormous wealth and sustainability of our communities, we can weather almost anything — certainly better than most.

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What about the future?

Just today, the Fed reduced its prime lending rate by 1/2 point, which sent the Dow up 233.30. Points In a relative nano second, the market changes....investors are ‘happy’ with the Fed and a little more optimistic about the future....but we’ll wait and see what happens Monday. Every day it is something new. The point is: It’s too early to tell how the real estate market will actually perform, but so far for 2007, we should be pleased, even though homes not properly priced on sitting on the market longer. Our open houses are still getting a good amount of traffic of buyers, not “looky loos” or nosey neighbors. We just have to remember and understand that some buyers are being more cautious and taking longer to make their decision.

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So what should I do if I am in fact looking to sell your home or buy a new one?

First of all, you need to work with an experienced realtor, who knows how to navigate through and around the issues we are dealing with today. If you are a seller, through your real estate agent you need to know several key things about the buyer: 1) What/how much is the buyer borrowing; 2) how credit worthy are they? and 3) be prepared to be patient with the process, short loan contingency periods cannot work today, and 4) you should also require the buyer to “lock” in their interest rate and to sign the loan documents as quickly as possible. This will prevent the lender from changing the terms of the loan or pulling their approval after they have in fact approved the loan (unfortunately that is one of the things that is happening today as the terms of the loan itself are changed mid-stream). It’s tougher to get loans these days — as you have read, so just allow some time. If you are buying, you need to get your credit in top shape...get your loan commitment locked in and in writing, sign the loan docs right away. Another thing....the loan conditions are going to be very important (these are the items that the lender calls out as additional requirements after they have issued loan approval, but not FORMAL loan approval.. formal loan approval is actually granted at the very last minute after the loan documents are signed, sometimes the day before the escrow is scheduled to close),(only after the conditions have been approved or removed).. These conditions are the items the lender is hanging its hat on to pull their final approval — Another thing.... check the loan conditions very carefully.

Lenders are now loathe to accepted stipulations that they would normally have accepted in the past. Not now. Be careful only work with a lender, preferably a mortgage broker that you know and trust who will hold your hand through the process and do what they said they would do.

If you live in Brentwood, Beverly Hills or Bel Air, the future looks solid — prices are continuing to hold and if you do sell — and you don’t want your home on the market too long — price it right from the beginning! Getting a sophisticated, seasoned Realtor is key. Call me!

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405 Widening Public Hearing — Skirball Center, August 22, 6:30 p.m.

Be there! If you want the facts on this very important project that will affect all of us on the Westside, I urge you to put this meeting on your calendar and to attend.

Labor Day is around the corner....I have only one question: Where did the summer go?

Thanks, Carole Schiffer

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The SchifferLine

Timely real estate news from Carole Schiffer                                         1 August 2007 _____________________________________________________________________________________________________________________

Hello all of you Muggles!!!

It isn’t all bad news....so don’t take it personally, OK?

There’s a lot of news these days this week about the housing slump, mortgage lenders with no cash to lend, looming recession, and perhaps even a repeat of the Internet collapse of 2001. Well, don’t believe everything you read, especially when it comes to ‘your castle’.

Of course, we are not insulated from the nation’s housing situation that is seeing builders and mortgage lenders predicting dire futures at least to the end of next year. Oversupply, higher mortgage rates and a clamp-down on sub-prime loans are, indeed, affecting the national housing picture. And housing, as we all know, affects more than builders and lenders — it runs through the entire economy, and that’s why many are worried about the nation’s economic health.

As reported in the NY Times on Wednesday (August 1, 2007), it works like this: Less home building means less paint sold to homebuilders; less home sales also means builders buy less trucks; less trucks mean less paint to sell to automakers. This adds up to a big loss to DuPont who sells a key pigment that goes into paint for homes AND trucks. This explains why DuPont was the market’s biggest loser last Tuesday even though they don’t build homes.

As most of you know, there are only a few ‘large’ tracks of homes or lots being built in Bel Air, Brentwood and Beverly Hills these days so that many of these negative national home-building trends by-pass our neighborhoods — but can affect us

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Let’s look at our micro-climate market....how are we doing?

In the face of these negative economic stories, I think it’s important to share with you the state of our real estate market, which I have viewed as a ‘micro-climate’ within the larger geographical picture. Every month, I review the Combined Los Angeles Multiple Listing Service records of sales for the previous month, comparing last month’s median sales prices vs. the previous year. I primarily focus on three areas (Beverly Hills, Bel Air, and Brentwood) -- and, as always, some areas are up one month, down the next, but the overall median sales prices for these three communities are up over 2006 by an average of 4.1%, which runs counter to national trends.

Specifically, for July 2007 Brentwood’s median sales price was up 22.1% over the same period in 2006; Beverly Hills was up 27% over last year; and Bel Air was down 12.1% compared to 2006.

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Compounding the challenges of getting a reality check on our market, however, is the manner in which the privacy issue of publishing sales prices is being handled today. Here is what is happening, after a property is in escrow, the property is being withdrawn from the MLS, thus avoiding the necessity of having to publish the sales price. This is being done generally with the higher priced homes. In the process of doing the research for this newsletter, I looked up 6 homes between the prices of $5,000,000 - $15,000,000 that had been withdrawn from the market last month and three of them had in fact closed escrow! This is a short term solution as generally within a month of the close of escrow the public records which are generated by the county recorder office, can and does publish the sales prices and that information is available to anyone who cares to do the research. In my opinion, what this practice does is unfortunately skew the overall median s ales prices and the state of the market for that period.

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Property values continue to rise...the advent of the ‘Platinum Triangle’

A good example of these hidden sales was reported in the Los Angeles Times last week — in the first four months of 2007, there were 23 estates selling for at least $10 million according to records kept by local agents (not the MLS). By contrast, Dataquick — the La Jolla-based real estate tracking firm — reported home sales in Los Angeles County fell by 19.1%. Property values in the Platinum Triangle communities of Bel Air, Beverly Hills and Holmby Hills climbed 9% between January 1 and May 30, compared to 3.9% for the rest of LA County.

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What does all this tell us? We live in a great area that continues to enjoy high demand for its fine homes, schools, and shopping area. Not to mention the weather.

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Sepulveda Project — next public meeting, August 22, Skirball Center

The revised EIR has been finished and will be presented to the public at the next public meeting for the Sepulveda Project will be August 22, at the Skirball Center beginning at 6:30 p.m. .Nearly 400 attended the last meeting to hear about the plans for Sepulveda Boulevard widening and the 405 expansion. I encourage all of you to attend this very important meeting.  

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The SchifferLine

Timely real estate news from Carole Schiffer                                         16 July 2007 _____________________________________________________________________________________________________________________

Westside’s Micro-Climate Continues To Show Strength

While May was the slowest month for Southern California home sales in 12 years -- mainly because of sharp declines in lower-cost markets (Inland Empire) -- the Southland's median sales price was unchanged, according to La Jolla-based Data quick. But significantly, home prices are up and remaining strong in all three of my neighborhoods. According to the Beverly Hills/Los Angeles Multiple Listing Services (MLS), Beverly Hills was up 33% in June over 2006’s same period....Brentwood home prices were up 6%, and Bel Air was down just a smidge (1.7%) from June 2006.

With all of the national angst about dropping home sales and falling prices, month-to-month sale prices on the Westside have continue to prove the point that we have highly desirable, unique residential communities that despite recent economic housing downturns, we seem to be immune to real estate storms affecting other parts of the country

.Betty Graham, President Coldwell Banker Greater Los Angeles, in quoting one of the speakers at the recent Anderson Business Forecast at UCLA noted earlier this month that our real estate market has experienced a “...soft landing on a lubricated runway!” How true. Yes, inventory is up in every Westside area, but the median sales price strengths demonstrate homes that are priced right stay on the market less than homes that are overpriced...it’s that simple. Price drives the selling timeline

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Foreclosures Are Up Nationally....But Appear Not To Be A Factor On The Westside

According to Matt Grainger of Equity Title and RETRAN foreclosures for the January thru May period there were only three for single family residences in Brentwood and only one in Bel Air. While this information is deemed reliable, Matt said it is not guaranteed because of non-reporting on some properties. Significantly, the foreclosure process occurs in three stages — Stage #1 — Notice of Default (NOD), #2 — Notice of Trustee Sale; and #3 — final foreclosure by the lender (Real Estate Owned or REO). As an example, there were 17 NOD issued in Brentwood in this five-month period, but only three ended up being taken over by the lender, which means that 14 homeowners were able to avoid foreclosure. Bel Air had 19 NODs but only one ended back with the lender. The conclusion is homeowners who enter the foreclosure process either clear up the balances through paying off their liens, selling their property, re-financing or bringing the loan current.

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Stan Lefcourt Dies....Known as Mister Brentwood

Memorial services were held for Stan Lefcourt July 15 at the Luxe Sunset Hotel to honor one of the area’s most loved community leaders. Known as Mr. Brentwood for his more than 50 years of service to a broad variety of activities, he served as president of the Brentwood Homeowners Association, ran the Brentwood Chamber of Commerce, and organized Memorial Day parades, and the “Concert on the Green” series. He also spearheaded local crime-watch programs, and Stan wrote a popular column in the Brentwood News -- “This Is Your Brentwood.” A former Citizen of the Year, Stan was just well loved for his generosity and commitment to building Brentwood into the fine community it is today.

“I know Stan will be missed by all who knew him,” according to Wendy Sue Rosen, chairwoman of the Brentwood Community Council. Stan was an accomplished poet....and is best known for his “Color Me Equal” poem written in 1992. Stan was named Poet Laureate for this poem and was included in his published book of poems...While all of us who knew and loved Stan will and do miss him, we will especially miss his old, and corny jokes, sunny smile, and positive can do attitude for everything.

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My Niece, Morgan, Begins Her USC Journey It’s strange, but I’m filled with such pride that my wonderful niece, Morgan, begins her college life at the University of Southern California this week when she attends her new student orientation. As a double graduate of USC’s cross-town rival, UCLA, it doesn’t matter a twit now that she is here, close to my home (she was raised in Vancouver, BC). I’m so excited for her...as many of you have also experienced when a son or daughter are sent off to school far away. Auntie Carole will be around....for those special needs (like a washer and dryer and a well-stocked refrigerator). We’ll probably have some differences of opinion on December 1 when the Bruins meet the Trojans at the Coliseum. But, who’s counting!

I hope you are enjoying the summer,

Carole

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The SchifferLine

Timely real estate news from Carole Schiffer                                         15 June 2007 _____________________________________________________________________________________________________________________

The Joys of Following The Media....

Waking up to the Los Angeles Times and watching TV or the listening to the radio is some times like waking up in another country. I hear where ”..Homes sales are down 34% in region”..... “Confusion reigns for borrowers in latest study”. Never a dull moment.......real estate is the tragedy du jour, the convenient whipping boy for slow news days.

So, if you’re confused, let me try to bring some clarity to the headlines floating around the Southland, especially about the Westside. Yes, home sales are down an average of 34% in Southern California’s six counties, but if you look at home prices in the $1.1 million-plus range, sales are only down 1.2% and just 13% for homes of $746,000 to $1.100,000 (and that’s for all six counties). The median sales price for homes in my primary communities of Beverly Hills, Bel Air, and Brentwood is $3.07 million (based on median sales price for May 2007). And the biggest ‘hits’ in falling home prices are taking place in Riverside and San Bernardino counties....no surprise if you have witnessed how these two areas have been suffering the past six months..

Waking up to the Los Angeles Times and watching TV or the listening to the radio is some times like waking up in another country. I hear where ”..Homes sales are down 34% in region”..... “Confusion reigns for borrowers in latest study”. Never a dull moment.......real estate is the tragedy du jour, the convenient whipping boy for slow news days.

Here on the Westside, there is some good news about home prices. For example, Brentwood enjoyed a 16% increase in the median sales price for May 2007 over same period last year (Days on market was 103) according to the Beverly Hills-Los Angeles Multiple Listing Service (MLS)....Bel Air was up 27% for the same statistical period (DOM was 69)...and Beverly Hills was down 27% (DOM — 86) over last year, which last showed a significant increase in sale prices in March. The point is...that we live in a micro-climate of real estate where median sales prices do fluctuate from month to month, but overall, we are living in a very attractive, strong market that continues to demonstrate its price resiliency over the long haul.

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Home Borrowers Baffled by Loan Docs......

Here’s another interesting tidbit from the Los Angeles Times…about a study of home borrowers conducted by the Federal Trade Commission with respect to loan disclosures: *Half of borrowers couldn’t identify the loan amount....*9 out of 10 couldn’t figure out the total upfront cost of a loan....*2/3’s didn’t realize they had to pay a penalty if they paid off the loan within 2 years...*3/4’s didn’t know if substantial insurance costs were included in the loan...and * 20% didn’t have a clue about the annual percentage rent they were paying for the loan or even if the payment included taxes and insurance. What??? If this is true, perhaps you should take a moment and think about exactly “what do you know about your own loan.”

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Sepulveda Pass Meeting Draws Nearly 400.....

There were moderate fireworks at last Monday’s meeting held at Skirball on the Sepulveda Pass’s future plans for a variety of road work projects. Brentwood Glen residents were out in force with placards and loud, but reasoned, voices to protest the potential tearing down of homes in their neighborhood to make room for the increased lanes on the 405 with the addition of the car pool lanes….confusion reigned because the EIR (environment impact reports) were in-correct and left out a great deal of information. …the final cutoff date for public comments (scheduled for July 17) is now moved back to some time in August or September but only after the mandatory re-issuance of the revised EIR is completed. When will it be finally done? -- “...we’ll get back to you.” There was a lot of discussion by the panel, composed of representatives from LA City, Caltrans, and LA County, about widening the 405 to include a carpool lane...but nothing was said at all about the reversible lane on Sepulveda, which is the first project to be done. . In other words, many walked away feeling short-changed. The EIR and other studies require major overhaul to bring them up to speed....and when that will be done? We’ll get back to you!

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On a personal note....I am off to my niece’s high school graduation next week in the beautiful city of Vancouver, British Columbia… perhaps I will include some photos in my next SchifferLine.

Talk to you soon.

Carole

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The SchifferLine

Timely real estate news from Carole Schiffer                                        1 June 2007 _____________________________________________________________________________________________________________________

Important Notice -- Final Public Hearings on Sepulveda Project

The City (DOT) and the State ( Cal trans) are in the process of planning major changes for one of America’s most popular Sigalert areas — the Sepulveda Pass. The project is designed to ease traffic through this bottleneck, utilizing an old program from the 50’s — a reversible lane — plus the ‘same-o’ solutions — widening roads, knocking down houses and business, fixing problem on/off ramps, and a new idea -- a traffic lane for wildlife — yup, you heard it here: Foxes, hounds, deer and mountain lions now get their own lane....it’s about time! Here are the details: The Sepulveda Project is a two-pronged project -- 1) widening Sepulveda from the Mulholland Tunnel to the intersection of the 405 and the Santa Monica Freeway for a reversible lane (DOT); and 2) widening of the 405 for the addition of a carpool lane (Cal Trans). These are major construction projects that will last between four to five years, and needless to say, they will cause some disruption in our lives. The plan is to have the DOT project begin first and then the Cal Trans project will kick in. There are a few plans from which they will be selecting for the project and the public hearings regarding these plans will be held on June 11 from 6:30 - 8:00 p.m. at Skirball They will have the maps up with all of the proposed changes and plans starting at 5:00 pm.

Here are the details:

• Widening the Skirball overpass which will include (hold on...) a special lane for wildlife. You read that correctly. The concept is that the animals will have their own lane to traverse across the 405 and will keep them off the roadway, and it will be clearly marked for their benefit.

• Partially relocating the Skirball on-ramp (southbound) from the 405 so it will be closer to Mountaingate Drive.

• Reconfiguring the Bel Air Crest entrance.

• Eliminating the Montana off ramp.

• Potential removal of some housing north of Mulholland Tunnel and at the intersection Sepulveda and Church Lane possible removal of office buildings...plus houses could be slated for removal in Brentwood Glen as well.

This project is fraught with its ups/downs....the community faced these similar recommendations three years ago, and under fierce opposition the projects were essentially scrapped....until now, after new funding, which is really old funding, has now made these changes probable.

One important question I am already hearing is: Will this impact real estate values? Possibly yes in the short term. No, in the long term. Is this good for our area? It will help us manage growth better. And for sure, if the animals can read the signs, they’ll be happier with their new traffic lane across the 406....beats the alternative.

I want to encourage you to attend....make your voices heard. These changes impact all of us and it is important that the government officials know what we are thinking and want! This will be the only public hearing although you may review all of the issues regarding this project and submit written comments to the appropriate officials via their web site which is: www.lacity.gov/sepulvedaproject.com If you have any questions about this project, don’t hesitate to give me a call.

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The Trojan Horse Is Coming.....Egads for UCLA Auntie!

Her name is Morgan. She is 5 ft., 4 inches tall. She has a great smile, lights up a room when she walks in. My niece is an Honor Student or “AP” -- meaning Advanced Placement. She gets straight As, editor of her high school newspaper, among other honor.... but here is where I have trouble....she picked the University of Southern California or rather they picked her and she picked them back!!!!. While she was accepted at many other fine schools, in the end, it was USC’s biological sciences curriculum and its honors program that tipped the scale. Morgan is pre-med and wants to pursue a medical career, so perhaps four years from now, she’ll maybe matriculate to UCLA Medical School...an auntie can hope. The good news, of course, is that I get to see my darling niece on more often— at least when she needs laundry done. My mother, of course, said “oh, Carole, she wouldn’t do that!” “Oh, get real, Mom. Of course she’ll bring her laundry over, including those grubby USC t-shirts.”

Watch the next Schifferline for more real estate news!

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The SchifferLine

Timely real estate news from Carole Schiffer                                         15 May 2007 _____________________________________________________________________________________________________________________

The financial markets remain strong....boding well for the rest of 2007

John Ciolino of First Capital Mortgage pointed out in his recent online newsletter there is potentially good news on the horizon....with bonds and home loan rates ending up slightly improved for this past week overall, it bodes well for the second half of 2007.

“First, the Fed's favorite gauge of consumer inflation, Core Personal Consumption Expenditure Index (PCE), showed a year over year reading of 2.1%, which is very close to the Fed's target zone of 1 - 2%,” John stated. “Secondly, with inflation moderating, the Fed might start thinking about making a cut to the Fed Funds Rate in the 2nd half of 2007. This tame read on inflation was very good news for Bonds, as the value on their fixed returns get eroded by the impact of inflation.”

In this sophisticated Westside community one doesn’t need to dwell on economic statistics since most of my clients and friends are active investors...but being in the world of selling/buying real estate and working with clients who do need to obtain loans (not everyone pays cash, you know)....how economic conditions affect key real estate financial indicators are extremely important. I feel it’s my job to help you understand how these economic conditions affect your home investment. Your recent credit history can greatly impact the interest rate of the loan you obtain. This is very important for everyone young and old to understand, with the current sub-prime market conditions we are in, lenders are looking a lot harder at a potential borrowers credit history, particularly the most recent before they commit to making a loan.

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The market remains strong....the microclimate at work

I continue to be pleasantly surprised at the dynamics of the Westside real estate market. While I work through the Westside communities, my focus has been in Beverly Hills, Bel Air and Brentwood, and as you have seen in past Schiffer Lines I have noted the monthly fluctuations of the median sales prices of homes in these three areas compared with the previous year. In some months, you’ll find ups and downs from one market to the next like we had in March 2007.

This past April, the MLS stats showed the following....Beverly Hills experienced a 14% drop in the median sales price for homes sold in April 2007 vs. April 2006 (March 2007 showed a large increase over the previous year)....Brentwood suffered a 10% drop from April 2007 over last year, but Bel Air experienced a 27% increase in median sales price over April 2006. What this tells you is that when you compared year-to-year overall statistics, the MLS shows that overall, these three Westside communities are up, whereas other areas in Southern California, such as Newport Beach, are seeing sale price declines of as much as 40%. Not here. Some of these stats are impacted by a large number of sales prices that are not being reported, which has impacted the average… To that point, effective May 10 2007, the local MLS will no longer allow the non publishing of sales prices, so we shall soon see a “truer” percentage rate for prices.

Market slowing down?

In checking the actual sales of homes in April 2007 vs. a year ago (April 2006) in the three primary markets — Beverly Hills, Brentwood and Beverly Hills — Beverly Hills show a small increase —from 55 homes sold this April vs. 53 last April. Decline in # of homes sold in April 2007 vs. April 2006 occurred in both Brentwood and Bel Air — Brentwood had 86 homes sold last year but only had 78 sold this April....and Bel Air experienced a similar decline from 49 homes sold last April vs. only 37 this past month. As you can see by these fluctuating stats generated by the MLS every month, we continue to see some areas experience increases in sales or prices one month, down the next. Overall, these three communities continue to show strength overall, especially when you consider the downward trends in other areas of Southern California and across the nation.

Have a safe and happy Memorial Day and I will talk to you soon.

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The SchifferLine

Timely real estate news from Carole Schiffer                                         30 April 2007 _____________________________________________________________________________________________________________________

Hey, big spenders....take a look at this

If you're in the market to spend your next $25 million; you won’t have to go very far to find the castle of your dreams....it can be right here on the Westside. For example, Jeff Bezos, the founder of amazon.com, just purchased a home in Beverly Hills for a tidy sum in the mid-$20 millions (final price is confidential)....Johnny Carson’s beautiful estate in Malibu just sold for a measly $38 million, and a country-sized home in Brentwood Country Estates went for just $29 million. A home in Beverly Hills was just listed for $125 million!!!!

Who would have thought 20 or 30 years ago that such properties existed right in our backyard. But the reality is that homes over $7 million are booming on the Westside. For example, in the last four months, there have been 56 homes of $7 million plus that have closed escrow. In January, there were seven homes over $7 million, with the highest price home going for $21 million; February there were 12 homes, the highest -- $23 million; March saw a big climb in this price range with some 16 homes selling for over $7 million; and in April, we had 25 homes over the $7 million mark, the highest was $38 million (Carson’s estate).

We’re in the ‘hot property’ zone for sure....from Malibu to Beverly Hills, but what about your property? Where does it sit in today’s market? Buyers are looking at properties on both ends of the spectrum…. Either homes that are new or ‘like new’ and that means more than just “fluffing up” your home, we are talking about new electrical and plumbing systems, or homes that they would consider tear downs.. and that is what they are doing… tearing them down and starting over… a home that has not been updated or have kept their ‘status quo’ since you bought it…. and is not priced properly to reflect their condition, are the ones that are lingering on the market today.

Hot is hot...and it’s not always on the high end...

On the Westside, there are still two hot markets, with variations or submarkets within those markets as well — homes selling under $2 million and homes over $4 million. The ‘slow range’ -- if there is one — is in the $2 - $4 million price range. Demand is high for the low and high-end priced homes — multiple offers are common in all categories, providing the homes are priced competitively. If your home is over priced, it doesn’t matter where it sits within the hottest market — homebuyers are extra cautious and smarter these days.

A CB Factoid of interest.... Coldwell Banker dominated the upper end market on the Westside in 2006....CB sold more than 75% of the homes priced above $5 million last year...and 37% of the homes under $5 million were CB represented...an impressive achievement.

Regardless of what you read in the news, the Westside continues to run counter to what you see nationally or even in California. Slowly, the media seems to be catching on… In April’s Los Angeles Magazine and in the April 29th edition of the LA Times...they finally acknowledged what I have been saying for months: The real estate market on the Westside is different from other parts of the county. Our market continues to be strong. That’s the good news!

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Oh, the throes and woes of finding the right college....a personal note

My niece, Morgan, who resides in West Vancouver, BC, is such a delightful young lady...an honor student, editor of her school newspaper, vivacious, and just what every Mom and Dad want for their child. As many of you have learned, surviving the transition of a bright young offspring from high school to college can be the most unique journey. Morgan was accepted at USC, UC Santa Barbara, Reed College, Scripps, University of British Columbia, McGill and the University of Washington. Where is she going to go? She is a pre-med and journalism major. She loves Southern California, and I suspect she’ll end up somewhere here....I just don’t know yet, but we’ll keep you posted. (I suppose, as a true UCLA alum, I could deal with a USC student in my home on weekends....). In any event, it’s a wonderful journey of youth and spirit, and I’m just happy to be a part of it.

Regardless of what you read in the news, the Westside continues to run counter to what you see nationally or even in California. Slowly, the media seems to be catching on… In April’s Los Angeles Magazine and in the April 29th edition of the LA Times...they finally acknowledged what I have been saying for months: The real estate market on the Westside is different from other parts of the county. Our market continues to be strong. That’s the good news!

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Great Tastes in Brentwood — Mark your calendar for October 7, 2007. We have a terrific raffle of a week for two with “Tuscan Women Cook” — a weeklong cooking adventure in Tuscany...cooking classes, visiting local wineries, cheese farms, restaurants, local markets....150 tickets will be sold at $100/piece....value is $7,500...this is a trip of a lifetime, for sure. All funds go to the local public schools in Brentwood and Pacific Palisades.

Thanks, Carole....

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The SchifferLine

Timely real estate news from Carole Schiffer                                         17 April 2007 _____________________________________________________________________________________________________________________

It all depends on your point of view....

Look at what the Los Angeles Times said last Friday....”Congress is talking about bailing out homeowners facing foreclosure. Lenders are filing for bankruptcy. The National Assn. of Realtors is predicting a drop in U.S. home values this year for the first time since it began keeping records 40 years ago. Doom, any number of forecasters and bloggers will eagerly tell you, is at hand for housing. Yet the median sales price in Southern California went up again in March, crossing the half-a-million-dollar mark, a real estate data service reported Thursday.”

So, there you have it....doom and gloom across the board on the housing market, but right here in Southern California, the market is strong. I have always made the case that West Los Angeles is a unique market — outside the box of traditional Southern California and national statistical tracking. Let’s take a look at March MLS sale price statistics — Bel Air was up more than 71% for March 2007 over the previous March 2006. Brentwood was up a modest 2% over the same year-to-year period, and Beverly Hills, experiencing a rare drop in median price over the past year of 13% -- March 2006 was an especially robust sales period in Beverly Hills with several large sales that skewed the average median sales. Days on Market (DOM) are down 10% for Beverly Hills compared to a year ago, and DOM for Bel Air and Brentwood are almost identical to a year ago.

What this is telling us that we do live in a micro-climate. Even more illustrative of this trend is that in Brentwood, between the price range of $1,100,000 – $9,500,000 there were 256 sales of which 17 were in Mountaingate for the March 2006-March 2007 period. This compares to 225 sales in the previous year (March 2005-2006) with 17 sales in Mountaingate. Similarly, in Bel Air in the price range of $1,400,000 - $9,500,000 there were 82 sales during the same March 2006-2007 period, with 24 sales in Bel Air Crest. The previous period — March 2005-2006, there were 137 sales in Bel Air and 14 in Bel Air Crest. Bottom-line — sales remain strong in all of the key Westside communities for this past year.

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.So what about the ‘lender’ crash? How does this affect me?

There is no question that the fall of sub-prime lenders has affected the home loan market. “Sub-prime lenders difficulties have resulted in a tightening in the home loan market up the food chain,” according to Jim Greenwald of First Capital, a major mortgage-lending firm in Los Angeles. “This factor has worked up to mid-prime lenders, and as a result, all lenders are now tightening loan requirements, especially for first-time buyers. So, yes, the loan market is a bit tougher today, but we still are not feeling it much since our market is not affecting upper-income buyers who want a home loan.” That’s good news. There is no bad news....I’ve been busier than ever. So, it’s all a matter of where you live, isn’t it? Count your blessings for living in one of the world’s best real estate markets.

Carole

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The SchifferLine

Timely real estate news from Carole Schiffer                                       2 April 2007 _____________________________________________________________________________________________________________________

A short story....

Once upon a time, there were many happy people living in a magic land called Southern California. It was a paradise…a land filled with verdant valleys and canyons that stretched from the mountains to the blue waters and white sandy beaches of the Pacific Ocean. The weather was always superlative — it seldom rained and it was never really cold, and even in the worst of times, the people would stand out in the rain just to feel the rare rain drops on their face. The community bonded through its many educational, cultural and industrial enterprises, each world class in every way. It was the idyllic place to live.

Homeowners were even happier when they saw their ‘castles’ appreciate beyond their wildest expectations. For years, eager buyers would be on their doorstop, offering what seemed like outrageous sums to live in this paradise. Sellers were only too happy to accept the money.

Because there were so many who wanted to live here, buyers soon learned that offering just what the owner wanted was not enough. Multiple offers above the asking price became a common practice. It was a feeding frenzy not seen before in this land and many thought it would go on forever.

But times changed. The economy slowed down. There were still many more homeowners who wanted to reap these rewards, but soon supply outpaced demand. Homes that were over priced and not presented well languished. Unhappy homeowners were looking out their windows for buyers who never came. Weeks turned into months, and smiles turned into frowns.

What have I done wrong? “Your home is overpriced,” the wise Realtor would say. “But, look! The home down the street sold for so much more than I am asking.” “Yes, it did. But let’s look at the facts; the house was properly priced, in great condition, and in a slightly better location than your home.” “All of those factors have to be taken into consideration” .After months of seeing buyers drive pass their home, the unhappy owner decided to take his home off the market. He/they needed help and called the Realtor who sold the house down the street. Obviously, the owner thought, she would have the answers. And she did. They cleaned up his home so it was presented properly….lowered the price to a more realistic level…and it sold in a short time. It was a happy ending.

It is a story told many times over the past year. And while many longed for the 'good ol'days' in paradise, the wise Realtor reminds us daily that these are normal times so it is not a time to panic. Be patient, but be wise, too.

This is not a fairy tale — it happens every day, right here on the Westside.

I believe we still live in a Land of Fairy Tales — where dreams do come true. Our great cultural, educational, and industrial institutions enable each of us to live out our dreams. And once in awhile, if we are lucky, we can walk outside and feel the raindrops.

And as a Realtor, who, incidentally, is really enjoying this market, I like to remember the good old days, too. But these days are good, too...so long as we live in the present and respond to the market in a realistic way.

Have a wonderful Easter!

Carole

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The SchifferLine

Timely real estate news from Carole Schiffer                                        12 March 2007 _____________________________________________________________________________________________________________________

Gated Communities — To be or Not To Be

What lies behind those gates? Isn’t this the question you always ask yourself as you drive by and see those impressive looking iron gates? If you’re a resident of the twelve gated communities in the Beverly Hills, Brentwood and Bel Air areas, the gates offer a real sense of security in these insecure times, and provides, more importantly, the privacy many of us seek in a very cluttered world. What a Realtor will tell you, however, is that gated communities can add between five to seven percent value to a comparable home outside the gates. And that never goes away.

In some areas, like the Malibu Colony, the appreciated value can be higher simply because of the lack of outside-the-gates home — there is only one beachfront, one access, so exclusivity adds as much as 10-15% to the value.

The oldest gated community in Los Angeles is Larchmont which installed gates in 1908. And gated communities have become the standard in ‘new areas’ like Newport Coast, the desert, and in other outlying areas where privacy and security are the two of the most important factors in selecting a place to live.

The twelve gated communities in the Westside are: Bel Air Crest, Mountaingate, Moraga Place, Brentwood Circle, Bel Air Park, Brentwood Country Estates, Beverly Ridge Estates (Beverly Hills Post Office), Mulholland Estates (Beverly Hills Post Office), Beverly Park (Beverly Hills Post Office), Stoneridge Estates (Bel Air), and The Summit (Beverly Hills Post Office). There are other gated communities in Pacific Palisades.

Each of these communities place a premium on their gates, and as a recent article in the Los Angeles pointed out, “residents cherish the privacy and security. But it isn’t cheap to operate the gated system — outside firms provide the staff, and sometimes, there is turnover with companies who provide these services, because well, homeowners can sometimes be sensitive to customer service and efficiencies. The added cost to operate a gated community, however, is offset by a minimum of five percent added value, and on a $5 million home, you can add $250,000 to $400,000 to the price”.

In the end, the peace and serenity gated communities provide are wonderful to have — if you can afford it and if you can find your dream home there. It’s not for everyone, as the Times reported, but for most, gated communities are highly desirable.

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In the end, the peace and serenity gated communities provide are wonderful to have — if you can afford it and if you can find your dream home there. It’s not for everyone, as the Times reported, but for most, gated communities are highly desirable.

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Westside is a collection of micro-real estate climates

Confusion it seems reigns in the media every day. The stock market is up, the stock market is down, and the economy is up, the economy is down… all I know is real estate…. And here is what’s happening… There was good news -- existing home sales were up more than expected in January (warm weather)...bad news — Freddie Mac is tightening home loan requirements and new homes sales were down by 16.6% over December, the biggest one month drop since 1994. So what gives?

What gives is that what you have been reading about since our market has returned to ‘normal’ -- not too hot, not too cold — prices and market conditions vary greatly around the country.

However, in our little ‘neck of the woods’, the Westside is enjoying strong home appreciation. In comparing February 2006 to February 2007 median sales prices, here is what we find: Beverly Hills had a 23% increase over last year....Brentwood had a 12% increase over February 2006, and wow, Bel Air jumped nearly 55% over a year ago. If you’ve been reading The SchifferLine, you’ve seen fluctuations in all of these markets, but the recent upswing in real estate on the Westside (my business is up over 200% over last year at this time)....is that we are blessed with a wonderful ‘micro-climate’ where the changes of weather and market conditions do not seem to apply to the Westside. Real estate is heating up in other Westside communities, too -- Mar Vista and Westwood are two examples of areas that show prices really escalating as well.

Yes, we’re blessed with great weather (where is the rain, damnit?)...and a wonderful real estate climate to boot! What could be finer?

Take care and enjoy.

Carole

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The SchifferLine

Timely real estate news from Carole Schiffer                                        20 February 2007 _____________________________________________________________________________________________________________________

House with 23 offers generated 21.3% over listed price

Before we start, I wanted you to know I made a mistake, a “big mistake” in my last SchifferLine (8 Feb 07) -- I erred in my 'story' about the house that generated multiple offers that was reported to have been listed for $2.875 million. Actually it was listed for $1.875 million. The point of the story was that the house, located on a good street in a good neighborhood in Brentwood, had 23 offers ..a high number in these times it seems. After a one-week escrow, the home's final sale price was $2.275 million, a 21.3% increase over its listed price. The person who bought the home lives on the same street and purchased the house so he could live there while he remodeled his house. Late breaking news… another house in Westwood, south of Wilshire came on the market last week for $1,195,000 and was sold last night for over $1.5 after garnering 58 offers!!!! The house is decent, but will need some updating and the owners are renting it back from the buyers for 30 days, rent free!!!... Amazing!!!

What does this tell you? People who know their neighborhood, truly understand the value of not only the location, but the value of properties that appear to be under or at least well priced.

What does this tell us?

Within Brentwood — between the listing price perimeters of $2 million and $3 million -- there are currently fifteen homes on the market, nine of which that have been on the market since 2006, one being listed since July. What is revealing is that these nine homes have been on the market for a total of 1205 days, or an average of 134 days (more than four months), which we refer to as DOM — Days On Market. In Bel Air, there are 11 houses that have been on the market for an average of 134 days also since 2006. In Beverly Hills, there are six houses that have been on the market since last year for an average of 130 days on market. In all three communities, houses whose prices are not “on the money” are sitting in excess of four months. This situation is certainly not limited to these three areas, but is only being used as examples of what is happening in the market today.

What this tells us that the homeowner and Realtors who priced the homes in Brentwood and Westwood that had multiple offers priced the house to sell to generate multiple offers and sell quickly. Is this a good strategy? Based on the current market conditions — with homes sitting on the market for over four months — the owner’s strategy could be described as risky IF they didn’t get a higher price, however, the final selling price of $2.275 million for the house in Brentwood is what the house should have sold for within that neighborhood. What was realized, as a result of low-priced strategy, was a ‘feeding frenzy’ that moved the house quickly and successfully achieved the ‘right’ selling price.

Is this normal or what?

Everyone is calling this a ‘normal market’ -- meaning that homes are sitting for average of three to four months, even it they are priced right. Houses that are listed and perceived as ‘deals’, like the one mentioned above, are selling very quickly with multiple offers. The point is this: There are two markets — 1) the perceived ‘deal’ or value, which sells very quickly; and 2) those that are priced right but sit for a normal period. Bottom line: How anxious are you to sell your home? Establishing the right selling strategy is what I do...that is where my expertise comes into play for my clients. I do not have a blanket endorsement for purposely under pricing a home to move it quickly. My strategy has always been to price the home correctly in the first place...and if you do, it will sell quicker than homes that are not.

Every house and every transaction is different. It takes someone who knows your neighborhood and who understands your needs to make the right decision.

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By the way, persistence pays off.....

I am very proud to report that I was selected as one of the Coldwell Banker’s top 1,000 agents for the last quarter of 2006 — out of 64,000 agents nationwide. In a letter from Bruce Zipf, President and CEO of NRT, Inc., the parent company of Coldwell Banker, “....’you had one of the outstanding performances in the nation, and we are proud and honored to work with professionals such as yourself.” Up until the middle of last year, the real estate industry had slowed down — coming off the highs of the early 2000s. As Betty Graham President of the Greater Los Angeles Company said in early 2006, we are entering a ‘normal’ market, which was another way of saying that the real estate business had slowed down. ‘Slowing down’ to a Realtor usually means less sales, less income, but I am happy to say that I stuck to my guns and kept pushing for new business, and I was fortunate in that you all heard what I had to say. And 2007 already is off to a solid start. So, to all of you, thank you so much for your support and your business.

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The SchifferLine

Timely real estate news from Carole Schiffer                                        14 February 2007 _____________________________________________________________________________________________________________________

And you thought the day for multiple offers were over. Not so. Buyers are hungry.

This week, a four-bedroom Brentwood home with a pool on a big lot South of Sunset, and West of Barrington was listed for $1,875,000 and guess what? Yup....this listing had 24 offers in three days! This home, in good shape, was obviously well priced. Just down the street, another house closed escrow this week, and it, too, sold with multiple offers for $400,000 over asking late last fall. While we don’t know the final sales price (not until escrow closes), we can safely assume this week’s transaction fetched more than the listing price....my CB office in Brentwood was abuzz for the day. We haven’t seen that many offers on a Westside home since the frenzy-feeding days of last spring.

What does this tell us?

1) There are a lot of buyers out there who understand value. Value means location, price, quality, functionality, future, and 2) confidence in market and economy. The market continues to reach new heights, and there is continued, strong confidence in the economy.

The most important fact that events like these tell us is that the perceived value will always drive the demand -- if they feel the price is too high, houses will sit. But if they are appropriately priced, they will generate buyers at your doorstep.

If a property comes on the market, higher than the buyers think it should be, the first question I get is: How much flexibility is there in the price....meaning we have a very educated consumer in the market these days. Buyers are better informed and more diligent in their research...a fact you may not know: Buyers who their research online before they contact a Realtor see only 6.5 homes before making a purchase...those who shop the traditional way, visit 14 homes before they make a decision.What this tells us is that generally buyers are smarter and know what they want before they enter the marketplace.

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Mortgage rates rose .125% last week, but held steady this week after strong economic news. What does this tell us? Regardless of minor increases in mortgage rates (that are still low compared to history), buyers are going to find a way to purchase the home of their dreams.

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Notices of Default (the first step in the road to foreclosures) and foreclosures are up What does this tell us? Negative amortization and interest-only loans haven’t panned out in areas where there is little or no appreciation in property values....hence, no equity. There have been few foreclosures on the Westside, and there may be some more, but with interest rates as low as they are, most homeowners facing foreclosure can re-finance and save their home. So what that tells us is that the owner is probably unrealistic in their asking price if they are trying to sell the house, the bank doesn’t want to work with them, and may be unrealistic as well. Contrary to public perception, foreclosures are not always the bargain they seem to be. You will really need to know what you are doing, and have an agent who is experienced in buying foreclosures. I know I have bought and sold a few in my day, including some for myself!

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What are the latest MLS numbers telling us for Brentwood, Bel Air and Beverly Hills? In summary, there is good news for Bel Air compared to January 2006 —median sales prices went up 6% for last month....Beverly Hills was down 9% and Brentwood down 2.%% compared to the same time period. Overall, price appreciation is holding steady in all three of these areas — Brentwood and Beverly Hills were up last year over 2005 at this time (around 5%) while Bel Air was down 17%....so overall, the market is back to normal, and price appreciation remains strong.

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The Glass Finally Arrives....

The anticipation was killing me for the past week — the glass sculpture I purchased from one of Europe’s foremost artists, Ales Vasicek, was due to arrive on Friday. This magnificent glass work, which measures 45 inches wide by 18 inches high, immediately caught my eye when I entered his studio in Prague last October. I had to have it and decided to buy it on the spot. Only after agreeing to the purchase it did I hear the artist’s name for this smoky, grey-colored sculpture -- “Smog”. Given where this beautiful sculpture was going to have its final resting place -- here in the heart of Los Angeles -- I thought the name was most appropriate. We all had a chuckle, and frankly, now that it sits here on its pedestal in my dining room, I only think of how beautiful Prague is and what wonderful memories I have from my trip last fall. Happy glass hunting....off to plan my next adventure!

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The SchifferLine

Timely real estate news from Carole Schiffer                                        18 January 2007 _____________________________________________________________________________________________________________________

Real Estate's Slippery Slope

There is some really good news and some really bad news already in 2007. The bubble is still here if you own property in San Diego, Las Vegas, or Miami — where homes have been languishing on the market for six months or longer. No one has to tell you about the ups & downs of the real estate, yet if you’re reading a daily newspaper over the breakfast table in Bel Air, Brentwood, or Beverly Hills, you are counting your blessings: There’s lot’s of talk in the media about many areas in the US that are seeing sustained price devaluations but there also are some very healthy markets -- in Boston, New York, San Francisco, Los Angeles, and Seattle: Each are enjoying an annual appreciation that outpaces the national average by at least 30% according to Business 2.0 magazine.

As you know, I was in Cabo over the holidays, amazed to see prices zooming through the tile roofs along Baja’s incredible real estate market. And that’s not all. My long-time marketing consultant travels to some of the hottest real estate markets on the Planet and reports back that home prices are soaring also in exotic locales like Antalya, Turkey and Marrakech, Morocco. “Second homes are selling for 800,000 Euros on lush golf courses in Marrakech,” Bob Liljenwall says. “Spain is going over the $1 million level everywhere, so the Brits and Europeans are moving south and into booming beachfront locales.”

But what about here...in our neighborhood? Prices continue to hold their appreciation over the past year. Inventory has increased, and the price increases were lower than in years past, but up none the less. of 3.7% over the previous year, one has to count their lucky stars here at home.

Location, location, location has always been the primary measurement for retaining home values...but as we have seen since we have returned to a ‘normal real estate market’ (thank goodness), price has continued to be the key indicator for how long homes last on the market. And price has more to do with economic conditions in the real estate market — over supply of new homes (like in Vegas, San Diego, and Miami), but there are also key points to look at, too. Here are just a couple of indicators I follow that might help you in terms of measuring future residential real estate investments:

Income and job growth — these two are linked, of course, especially when you consider that prices will maintain their appreciation upward trends if there is competition for higher-end homes. When there is a strong job market, there is economic growth, and families want to (and do) move up to bigger and pricier homes. Likewise, where there are new companies moving into the market, they trigger home building and demand for homes in the ‘best/better’ neighborhoods, which provides the continuing price appreciation, as we have found on the Westside.

But what we enjoy here on the Westside, of course, are our inh