Palos Verdes Real Estate Blog

Rancho Palos Verdes was the last city on the Peninsula to incorporate in 1973. The city has 7.5 miles of coastline and 12.3 square miles of land. Rancho Palos Verdes is the largest city on the Peninsula. According to the U.S. Census Bureau, the estimated population in the year 2003 was 42,265.

Current real estate prices for single family residences are between $619,000 (for a 2 bedroom, 1 bath, 853 square foot home) and $6,890,000 (for a 5 bedroom, 8 bath, 7,220 square foot home) with 127 active listings. The least expensive townhome of the 35 active listings is $299,900 (for a studio, 1 bath, 431 square foot townhome). Rancho Palos Verdes has properties that are zoned equestrian.

Rancho Palos Verdes has several landmarks and points of interest such as the Wayfarers Chapel (also known as the Glass Church), Point Vicente Lighthouse - top photo -(operated by the Coast Guard with tours the 2nd Saturday of each month, 310-541-0334), Palos Verdes Art Center, Marymount College (private 2-year college), Trump National Golf Course, the new Terranea Resort which is currently under construction scheduled to open Summer 2009 (see my At Last! We Have Our Very Own post dated 3-9-08), Los Verdes Golf Course (a public course), Whale Watching (December thru April) and “Whale of A Day” at Point Vicente Interpretive Center, Abalone Cove Beach and Shoreline Park (with extensive hiking trails), – photo above – and the Palos Verdes Nature Preserve (1200 acres purchased by the Palos Verdes Peninsula Land Conservancy). One of the most renowned landslides in the country can be found in the Portuguese Bend and Abalone Cove area (click here for current evaluation from the city).

Rancho Palos Verdes has shopping/commerce centers at Golden Cove, Crest/Hawthorne, Miraleste Plaza and along Western Avenue in the Eastview area. Every Fourth of July an all-day celebration is held at the Point Vicente Park/Civic Center. Shakespeare by the Sea is performed at Hesse Park (click here for 2008 Summer schedule for entire South Bay).

Palos Verdes Estates was the first city on the Peninsula to incorporate in 1939. The city has 4.5 miles of coastline. Twenty-eight percent of city land is permanently deeded as parkland and maintained as dedicated open space. According to Palos Verdes Estates Resident Handbook, the population in the year 2000 was approximately 13,572.

Most homes are custom built and one can only find multiple housing in the Malaga Cove and Lunada Bay areas. Palos Verdes Estates has a Homeowner’s Association (known as the Art Jury) which approves the architectural and design aspects of each home even the color of paint (see my Palos Verdes Art Jury Disclosure post dated 1-6-08). There are no street lights (better for stargazing), traffic lights (stop signs only) and minimal amount of sidewalks.

Current real estate prices for single family residences are between $1,099,000 (for a 3 bedroom, 2 bath, 1,962 square foot home) and $12,990,000 (for a 7 bedroom, 8.5 bath, 18,227 square foot home) with 56 active listings. The least expensive townhome of the 4 active listings is $599,000 (for a 2 bedroom, 2.5 bath, 1,258 square foot townhome).

Palos Verdes Estates has 2 shopping/commerce areas each with a market, restaurants and shops – one in Malaga Cove (photo above) and one in Lunada Bay. The Library, Palos Verdes Police Department, Fire Department and City Offices are located in Malaga Cove. Palos Verdes Golf Club (top photo), Palos Verdes Beach & Athletic Club (310-375-8777), Palos Verdes Stables (310-375-9322), Palos Verdes Tennis Club, and La Venta Inn (events only) are located within the 4.75 square miles that makes up Palos Verdes Estates.

Every Fourth of July an all-day celebration is held at the former Malaga Cove Intermediate School. Concerts in the Park are held every Wednesday in July and August in the park next to Malaga Cove Library.

Palos Verdes Peninsula is actually composed of 4 different cities – Palos Verdes Estates, Rancho Palos Verdes Estates, Rolling Hills and Rolling Hills Estates (and 2 Los Angeles County areas known as Westfield and Academy Hills). They are all part of the Palos Verdes Peninsula Unified School District.

This is the first of 5 posts which will describe the unique qualities of each of the cities from weather to real estate to shopping. The main road that surrounds the Peninsula (in a loose circle) is called Palos Verdes Drive North, South, East and West. Pretty original, huh?

First some history – Several years ago, I was certified as a Palos Verdes Specialist and during the classes I learned that the Peninsula was pushed up out of the sea (much like an island) and the ocean waves eroded the land forming terraces. I am told that from the air, one can still see some of those terraces.

In 1913, the entire Peninsula was purchased for development for $1,500,000 by a group headed by Frank Vanderlip, Sr. After the stock market crash in 1929, portions of the property were sold off. 1,000 acres were set aside and offered for free for a California University but Westwood was chosen instead (UCLA). Can you imagine how different Palos Verdes Peninsula would be if the university was built here?

With the first day of Spring our thoughts go to nature and real estate. The flowers are blooming and there is life in Palos Verdes real estate too.

Today, there are 223 active single family residences for sale compared to 216 last month. March 1st to date, there are 74 Pending transactions for March compared to 32 last month. March 1st to date, there are 18 sold or closed transactions compared with 23 for the month of February. We are two thirds of the way through March and are comparing favorably to last month especially with the larger number of Pending transactions.

New statistics with data through February are now posted at my sites “Statistics” page.

Real Estate is like baking cookies because:

1. Research is key.

2. You must gather all information (ingredients) before you begin.

3. Care (measuring) must be taken during all steps.

4. You must be patient and attentive during the escrow (baking) process.

5. You get to enjoy the fruits of your labor for many years (days).

photo courtesy of John Juarez

The answer seems to change daily. I checked with a lender today and a 30-year fixed conforming loan (now $729,750 for Palos Verdes Peninsula/South Bay real estate) is 5 3/8% with one loan point while a jumbo loan is 6 1/2% with one loan point. On a jumbo loan, lenders are requiring a minimum of 25% down payment (this is new).

A HUGE caveat on the conforming loans is that if the loan exceeds the original conforming loan limit of $417,000, the borrower would pay an additional 2 loan points on a purchase and an additional 3 loan points on a refinance. It might be cheaper overall to get a jumbo loan of 6 1/2% plus one loan point vs. 5 3/8% and 3 or 4 loan points for loans above $417,000. A borrower can also pay 0 loan points at a higher interest rate.

The news on units is even more ambiguous. Following are old/new conforming amounts for continental United States:

Old Amount New Amount
$417,000 1 unit $729,750
$533,850 2 unit $934,200
$645,300 3 unit $1,125,250
$801,950 4 unit $1,403,400

However, there are currently no guidelines or funding for the new conforming limits and all loans over the old limits will fall under jumbo loan rates/ guidelines.

Rates are extremely volatile (1/2 percent change from Friday to today). As the financial markets continue to settle out, it is more important than ever to speak to a lender (prior to writing an offer on a property) to get the latest rates and requirements as it may impact how you structure your purchase.

View additional charts from HSH Associates Financial Publishers.

The Cherry Blossoms are blooming at South Coast Botanic Garden. It is so magical to see the blossoms “rain” down onto the ground. This is the perfect time for a visit as the cherry, plum and peach trees are in full bloom.

South Coast Botanic Garden is one of Palos Verdes’ best-kept secrets. It is never crowded. One is free to amble for hours through 87 acres of beautiful settings. There is plenty of parking in their large paved lot.

And here’s a tip – Get the family membership for $50 a year. Not only can you visit this Garden but also nine other gardens in Southern California.

Summer of 2009, Palos Verdes Peninsula will have its first hotel and a luxury hotel no less. Terranea Resort will have 400 rooms, a spa/fitness center (25,000 square feet), three restauants, three swimming pools, a 9-hole golf course, meeting rooms (63,000 square feet), a wedding venue, an ampitheater, a sand beach, and a bluff-top trail connecting to miles of on and off resort trails. Terranea is being built on 102 acres on the Pacific Ocean where Marineland once stood.

This is big news for the Peninsula where our visitors are currently asked to stay in nearby Torrance or Redondo Beach. Plus – new restaurants are always something we look forward to. There are also 82 Villas/Casitas for sale (32 remaining) on the property.

I am looking forward to walking along the new bluff trails, dining at new restuarants, attending functions at the new resort and perhaps a weekend getaway stay. I am hoping Terranea will offer afternoon high tea for those of us who enjoy that tradition.

Palos Verdes Peninsula won’t be a secret anymore. With its Mediterranean beauty and feel, some travelers may decide to experience our area rather than going all the way to Europe.

After a public vote – winning with 50% of the vote – the new name for The Avenue (of the Peninsula), our shopping center, is Promenade (on the Peninsula).

Why was the name changed? At a recent meeting, Elizabeth Griggs, General Manager of Stoltz Management Company, the new owners of the shopping center, explained the prior owner had branded “The Avenues” at all their national locations. Part of the Stoltz agreement to purchase the center required a name change within two years.

Ms. Griggs also laid out their plans for the Promenade.

• The flow from the parking lot will be enhanced to make it easier to reach all levels of the center.
• There will be new greenery/screening to soften the “edges” of the structure.
• The corners at Crossfield and Drybanks will be reworked with possible store access from the streets and maybe a new cafe.
• Stroller/wheelchair access will be increased to upper levels.
• A permanent stage area may be built on the east side of the fountains.
• More comfortable seating areas will be added.
• A community room on the second floor near Borders may be used for community meetings.
• The third floor will have professional services like doctors, dentists, etc.
• Stoltz is proposing residential units to be built above the strip of stores near the parking lot.

Stoltz Management is hoping to attract more business to the center with these changes. Let’s assure its success by shopping, dining, ice skating, going to the movies etc. at our own center, the Promenade.