Palos Verdes Real Estate Trends

March Pending Home Sales Rise

Market Recovering WASHINGTON (April 26, 2012) –
Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February and is 12.8 percent above March 2011 when it was 89.9. The data reflects contracts but not closings.

The index is now at the highest level since April 2010 when it reached 111.3. Lawrence Yun, NAR chief economist, said 2012 is expected to be a year of recovery for housing. “First quarter sales closings were the highest first quarter sales in five years. The latest contract signing activity suggests the second quarter will be equally good,” he said. “The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses,” Yun said.

The PHSI in the Northeast slipped 0.8 percent to 78.2 in March but is 21.1 percent above March 2011. In the Midwest the index declined 0.9 percent to 93.3 but is 16.9 percent higher than a year ago. Pending home sales in the South rose 5.9 percent to an index of 114.1 in March and are 10.6 percent above March 2011. In the West the index increased 8.7 percent in March to 108.0 and is 9.0 percent above a year ago. The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Watch the video and continue below to see what’s happening with sale volume in the South Bay and Palos Verdes areas of California

 

So what is happening locally in the Palos Verdes areas? To get all of my proprietary trend charts, go here Palos Verdes Real Estate Trends, South Bay Real Estate Trends

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For more information on homes for sale in Palos Verdes, Palos Verdes real estate, palos verdes homes for sale, palos verdes foreclosures, palos verdes real estate market information as well as quality information on homes for sale in Rancho Palos Verdes, Palos Verdes Estates homes for sale, Manhattan Beach real estate, Hermosa Beach real estate, Redondo Beach real estate, Torrance real estate, Palos Verdes real estate trends, and real estate trends throughout the Beach Cities, Palos Verdes Estates and the South Bay, visit www.homeispalosverdes.com 

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Palos Verdes Homes | Staging your home for maximum sale price

Palos Verdes Homes | Staging Tips to Maximize your Sale Price

Meanwhile, to take advantage of other free real estate tools, please visit http://www.homeispalosverdes.com

 
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How to lose a Palos Verdes Home Buyer in 10 easy steps

 

GREAT ARTICLE!

10 Ways to Turn Off a Homebuyer

By Jay MacDonald | Bankrate.com –

What a difference a couple of years makes. Back in 2007, homebuyers would beg to purchase your house. They would even bid more than the asking price for the privilege to do so. Today … well, not so much. Once the real estate bubble burst and foreclosures poisoned the housing pool, buyers suddenly regained the upper hand. But instead of buying, they’re waiting, convinced that housing prices will continue to drop.

What’s a smart seller to do in this environment? We assembled a coast-to-coast SWAT team to address the crisis: Chad Goldwasser of Goldwasser Real Estate in Austin, Texas; Terry Cannon, a buyer’s agent and broker with Oregon Exclusive Buyers Realty in Salem, Ore.; and Julie Dana, the New York-based “home stylist” and co-author of “The Complete Idiot’s Guide to Staging Your Home to Sell.” They suggest 10 buyer turnoffs that sellers should avoid at all costs. “If you do all the staging correctly and have a good agent, the house will hopefully only be on the market a few weeks,” Dana says. “Then you can go back to living your life.”

1. Dirt Hands down, our panel agrees: Nothing turns off a buyer quicker than a dirty house. “The No. 1 biggest mistake is not getting the home in the best possible condition. That’s huge,” says Goldwasser. “I won’t even represent sellers at this point unless they are fully aware of how important it is to get their home in the absolute best condition that they’ve ever had it in.” Goldwasser recommends that sellers go the extra mile, from steam-cleaning tile and grout to replacing carpets. “If the carpets are old and smelly, you should put in new,” he says. “If they’re relatively new, you should at least have them shampooed.” Cannon agrees that grime can derail any showing. “The home should be neat and clean and free of all debris,” Cannon says. “If it reeks of cats or the kitchen sinks and counters are so filthy that it almost looks like the food is moving, I won’t even want to come in.”

2. Odors Buyers, it’s said, buy with their noses. Make sure your home smells fresh and inviting. “Odors are a big one, especially kitchen odors,” says Dana. “I advise my clients not to cook fried food, fish or greasy food while the house is on the market.” Some pet owners mistakenly believe pet smells to which they’ve become accustomed help make their abode homey. Nothing could be further from the truth. “If you’re a dog person, you tend to think everyone else is a dog person,” says Goldwasser. “But the truth is, 50 percent of the population hates dogs and doesn’t want to be near them. “Pets in the home? You have to deal with that.” Dana advises her clients to eliminate all traces of pets, not just pet odors. It’s important to get rid of pet paraphernalia and have a “pet plan” to make sure the animals are not around when the house is shown. “A lot of times, people will leave pet items out — dog dishes, cat litter boxes, etc.,” Dana says. “That immediately turns off a buyer because they wonder, ‘What has that animal done in the house?’ Also, some people really don’t like dogs. The minute they walk in and see this big, old dog bowl, they immediately won’t like the house.” The same rules hold true for smokers: Remove all ashtrays, clean all curtains and upholstery, and consider smoking outdoors while your home is on the market. “Interestingly, next to the kitchen, the smelliest room in the house is actually the living room,” Dana says. “That’s typically the room that has the most fabric, so that is where odors get absorbed.”

3. Old fixtures Want buyers to roll their eyes? Leave old fixtures on your doors and cabinets. “You need to change out old fixtures in your house,” Goldwasser says. “New cabinet hardware and doorknobs will probably cost all of $400 or $500, but it makes a huge difference.” The same holds true for dated ceiling fans, light fixtures and kitchen appliances. “Homes that have old fans, lights, ovens, microwaves, ranges and dishwashers can really turn a buyer off,” says Goldwasser. “Sellers will say, ‘Oh, the buyers can take care of that.’ Well, yes they can, but it’s going to impede you from getting the highest price possible for your home.”

4. Wallpaper Your grandmother may have had it in every bedroom. Your mom may have loved it as a room accent. But today’s buyer wants no part of wallpaper. “Wallpaper is a definite no-no,” Dana says. Wallpaper is a pain to remove and simply adds another chore to a buyer’s to-do list, Dana says. “Wallpaper is extremely personalized. You’ve spent hours looking over books to pick out the wallpaper you want,” she says. “What are the odds that the person walking in the door will also like that wallpaper that you picked out?”

5. Popcorn acoustic ceilings Times change, and with them home decor styles. Acoustic popcorn ceilings, once the must-have for fashionable homes in the ’60s and ’70s, now badly date your space. If you can’t stomach the cost or the mess to remove the overhead popcorn, be prepared to credit a buyer in certain markets in order to close a sale. “The popcorn acoustic ceiling is a major, major turnoff to buyers these days,” says Goldwasser.

6. Too many personal items Psychologically, when buyers tour a home, they’re trying it on to see how it fits, just as they would a skirt or a pair of pants. If your house is cluttered with too many personal items, it’s like the buyer is trying on those clothes with you still in them. A fit is unlikely. “Anything that makes your house scream ‘you’ is what you don’t want,” Dana says. “I tell all my clients that how we decorate to live and how we decorate to sell are different, and right now, we’re decorating to sell.” Sellers should try to eliminate personal items, including family photos, personal effects and even unique colors, she says. “As soon as you have family photos, buyers get very distracted. ‘Oh, did I go to school with him? What do their children look like?'” she says. “Suddenly, you’re selling your family, and you’re not selling the home.” If you really want to hook a buyer, Dana offers a tip: “I try to place a mirror strategically so that people can actually see themselves in the home, so they can actually picture themselves living there.”

7. Snoopy sellers Realtors and buyers alike generally bristle when the seller greets them at the door for a showing. “It’s so annoying,” Goldwasser says. “They will want to walk around with the potential buyer and put in their two cents’ worth. It’s not good. Normally, there are one out of 10 sellers where it’s OK to have them there, and that’s because they know what is up with the property and how everything works.” Goldwasser makes a point to shoo his sellers away from showings when he’s the listing agent. “They like to think they know what they’re doing, and that’s fine,” he says. “But when you’ve sold thousands of homes and you have a system, you know how to get people the maximum value for their home. That’s why they hire you, right?”

8. Misrepresenting your home Misrepresenting your house online in the multiple listing service is a sure way to really upset buyers and their Realtors. One of Cannon’s buyers loved a home she saw online. When he drove by to take a look, he was surprised to find acres of ramshackle mobile homes across the street. [Related: Worst Home Fixes for the Money] “Sellers are going to paint the best picture they can,” he says. “Some listings I’ve looked at and wondered how in the world they got that gorgeous photo without showing all the junk that’s around it. When you get there, you wonder why didn’t they just be upfront?”

9. Poor curb appeal Much is made of curb appeal, and for good reason: It’s your home’s handshake, the critical first impression that lasts with most buyers. “You have to totally trim and edge your yard to get it into the most immaculate condition you can,” Goldwasser says. “It’s a big mistake to not freshly mulch the beds and trim the trees. Every little detail counts. “To not power-wash the exterior or leave mud dauber and wasp and bird’s nests in your eaves and above your doors? You’ve got to be a fool to do that.”

10. Clutter Whether inside or out, less is more when it comes to clutter. “I usually start in the closets,” Dana says. “Your closets should be half-full with nothing on the floor. Why? Because most people looking for a house have outgrown their previous house. Showing them that you’ve still got room to grow gives them a reason to buy.” Kitchens and built-in bookshelves should showcase spaciousness by following the rule of three. For kitchens, there should be no more than three countertop appliances. Meanwhile, bookshelves should be divided into thirds: one-third books, one-third vases and pictures, and one-third empty. The home office should be very generic so any type of professional can imagine living there, Dana says. “Otherwise, it can be a distraction: ‘What does he do for a living? How much money does he make?'” she says. Dana’s tip for toddler parents is to pack away extraneous “kiddie litter” and keep a laundry basket handy. “When you get that phone call one hour before a showing, toss everything in that basket and take it to the car with you and your kids, and you’re all set,” she says.

 

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Palos Verdes Real Estate Latest Trends

Is the Palos Verdes Homes Market & South Bay Real Estate Market Finally Turning Around?

First and foremost, I’ve learned long ago NOT to be in the “crystal ball” business.  So let me just report some facts

  1. Today, 4/8/2012, marks the 12th week in a row in which the ratio of pending sale volume (demand) to new listing volume (supply) was more than 50%*. 
  2. Charting this “absorption rate” shows us that there have been higher lows and higher highs for some time now

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* to put this number in perspective, at the peak of our market in the 4th quarter of 2006, the ratio was over 100%

This is just a small excerpt from one of the critical charts I keep that help me guide Palos Verdes home sellers to better price their homes so that they sell faster and for a higher net price.

  • How does the excerpt above compare to previous markets going back to the early ‘90s?
  • Would you like to learn more?
  • Would you like to have access to these charts?
  • Would you like to benefit from greater knowledge of the Palos Verdes real estate market and South Bay homes market in order to become a more powerful home owner, seller or buyer? … follow the link in the button below

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George Fotion
Call Realty Company
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gfotion@emailtreo.com

Palos Verdes Estates Homes – Rent or Buy

As Rents Climb Higher, Owning a Palos Verdes Home Gains Appeal

I was reading an interesting article in the Wall Street Journal today about how home ownership is once again regaining popularity.  You can read the full article by clicking on this picture below

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But it got me to thinking, “…Ok, so that’s what is happening on the national scale, what about here in town, is that translating to Palos Verdes homes?…”

Look what I discovered: To view a full size image, just click the image below.  I guess it’s time to buy a home in Palos Verdes Estates …

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George Fotion
Call Realty Company
(310) 346-6467
gfotion@emailtreo.com

Palos Verdes Estates Homes in Lunada Bay

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What is Lunada Bay?

  • Is it only an area filled with ocean views?

  • Is it an area that is super kid friendly?

  • Is it the only area on the Palos Verdes Peninsula where all three schools (elementary, intermediate and high school) are close together for the convenience of Moms and Dads?

It’s all this and more … let me share with you a brief video of Palos Verdes Estates, the city in which Lunada Bay is located and then, feel welcome to explore homes for sale in the area.  You will come to the same conclusion I did, if Norman Rockwell knew of this place, he would have painted dozens of pictures!

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Are you sold on the area yet?  Search here to find homes for sale in the Lower Lunada Bay area

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If you’re unaware of the difference between lower and upper Lunada Bay (these are terms used to describe homes for sale in Palos Verdes Estates that either west or east of Palos Verdes Drive West), then this chart might help.  You can find a downloadable pdf file by clicking the chart.

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Perhaps you would like expand your search to ALL homes in Palos Verdes Estates?

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Here are two great examples of Lunada Bay Homes for sale now (click the images)

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George Fotion
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gfotion@emailtreo.com

Do folks correctly deduct for property taxes on Palos Verdes homes

Will the California Tax Man Come Looking for YOU?!

Overlooked Property Tax Law as a source of Revenue

During 2011, the California Franchise Tax Board (FTB) proposed a change to Schedule CA to require the information necessary to enforce an overlooked area of the real estate tax deduction.

The real estate tax deduction applies to ad valorem taxes, the real estate tax amount based on the assessed value of a property. Taxes based on a direct levy or special assessment, such as Mello-Roos or various services provided to specific properties are generally not deductible.image

However, many taxpayers are not aware of this distinction and in practice most individuals or their tax preparers include the total property tax on Schedule CA. Until recently the FTB didn’t have the capability to determine whether the reported number included non-deductible taxes, but a computer system planned for 2012 will give the FTB that capability.

The FTB had planned to enforce compliance stating this year by adding three lines to the 2011 state tax returns that would require property owners to show their parcel number, total property tax bill and the deductible amount. On November 1, 2011 the FTB announced the decision to delay the change to Schedule CA for a year and use 2012 to educate taxpayers and preparers on the rules. The board encourages voluntary compliance for 2011 tax returns and plans to enforce the rules on the 2012 Schedule CA.

As part of the education effort, the FTB created a page on their website called Understanding the Real Estate Tax Deduction that explains the rules and provides an example tax bill with the ad valorem taxes and direct levies or special assessments broken down.

For the 2011 tax year, some preparers are requiring their clients to bring in the county property tax statement before they will include the deduction in the Schedule CA.

The FTB estimates that the change will bring in an additional $200 million of revenue per year and that voluntary compliance could bring in $20 million this year.

 
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Palos Verdes Real Estate Trends vs Western US and the “cost” of rising sales

Existing Homes Sales Rise, but at a cost

Existing-home sales rose in January, marking three gains in the past four months, while inventories continued to improve, according to the National Association of Realtors®.image

Total existing-home sales1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent to a seasonally adjusted annual rate of 4.57 million in January from a downwardly revised 4.38 million-unit pace in December and are 0.7 percent above a spike to 4.54 million in January 2011.

Lawrence Yun, NAR chief economist, said strong gains in contract activity in recent months show buyers are responding to very favorable market conditions. “The uptrend in home sales is in line with all of the underlying fundamentals – pent-up household formation, record-low mortgage interest rates, bargain home prices, sustained job creation and rising rents.”

To read the full story, go here: http://www.realtor.org/press_room/news_releases/2012/02/ehs_jan

What the story underplays however is that there was a cost to the rise in home sales and before you conclude I’m just a “Negative Nancy”, there may just be a silver lining to all of this.  The cost is clear as evidenced by these charts.  Home sales rose because prices have been dropping and as a result of lower prices, demand increased.  Economists call this “elasticity of demand” and it appears that the real estate market is highly elastic as small changes in prices caused huge changes in demand.  The National Association of Realtors reported that while prices are down in the “West” about 1.8%, home sales rose 8.8%

You’ve heard me often say that real estate is all local and you would be right to say “so what” to what’s happening on a national or even regional basis.  Keep reading below to see the charts on price and home sale volume for the South Bay.  

Meanwhile, thank you for reading your latest newsletter and when you come across someone looking to buy or sell real estate here in Palos Verdes or around the South Bay, take out your cell phone and text or call me!

At Your Service,

George Fotion
www.homeispalosverdes.com
310.36.6467
george.fotion@homeispalosverdes.com

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Palos Verdes Homes Absorption Trends

As always, no one can claim any clarity with a “crystal ball”.  That being said, I found this article interesting and may give some clue as to what is happening nationally with real estate.

Of course one of the oldest real estate sayings other than “Location, location, location” is that “All real estate is local” … meaning, it really doesn’t matter too much what is happening nationally, it’s all about what is happening on the local level.  For example, real estate in the last 3 or 4 years has behaved much differently for Palos Verdes homes than it has for Riverside homes.

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“The 2012 outlook is improving modestly from a disappointing 2011. Economic growth picked up in the fourth quarter of 2011 to 2.8 percent and is expected to come in at 2.3 percent for 2012, up from 1.6 percent growth for all of last year, according to Fannie Mae’s (FNMA/OTC) Economic & Strategic Research Group…” To read more, go here http://www.fanniemae.com/portal/about-us/media/financial-news/2012/5650.html

For more information on Palos Verdes homes and Palos Verdes real estate, you’re welcome to visit my website at http://www.homeispalosverdes.com

 
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Palos Verdes Estates homes with over 1/2 acre of flat useable land

 
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2809 Paseo Del Mar
Palos Verdes Estates, CA
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Lower Lunada Bay Pool & Sport Court Home

$ Click for current price
5 BEDROOMS
4 BATHROOMS (4 full)
4800 Square Feet

Crème de la crème of Palos Verdes Estates, “Lower Lunada Bay” offers the best of all worlds – outstanding location kissed by Pacific Ocean breezes, wonderful, friendly and warm nurturing neighborhoods, close proximity to all schools, panoramic ocean front views just steps away. 2809 Paseo del Mar then takes these elements and elevates them into higher orbit.

This gorgeous, remodeled and spacious home nestled by over 1/2 acre (exceedingly rare lot size with full land utility) and nearly 4,800sqft of living area will envelope your family in easy understated elegance for a life time. The sqft is distributed between 4652sqft of living area + another approx 250sqft workout room.

This home is the ultimate entertainers dream with flowing floor plan and indoor/outdoor feel with easy access to the lit sport court, pool and flat yard expanses. Take a look at the pictures then call me for your private appointment to view this home today. As a bonus, there is even a Panoramic Ocean View from planned mezzanine for this home (plans may be included in sale of property)! Property address also known as 2800 Via Segovia. Sport court may be expanded to residential tennis court size. Owner may consider carrying financing.

To get more information on Palos Verdes Estates real estate and other Palos Verdes Estates homes for sale, visit my website where you can learn how to become a better informed on how to buy or sell and own Palos Verdes homes

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