Palos Verdes Source

Recently, there have been Blue Whale sightings only two miles off the Palos Verdes Peninsula coast near Point Vicente. The Peninsula News reported that the whales are here to eat the abundant krill that are attracted to the nutrients near the continental shelf off our coast. The blue whale is the largest mammal on earth (as long as 3 school buses) and can weigh up to 336,000 pounds. They are an endangered species with approximately 2,000 living in the Pacific Ocean (the largest grouping) and hundreds more in the Antartic and Atlantic Ocean.

Dudley Wigdahl, Curator of Mammals at the Aquarium of the Pacific said the blue whales will be swimming up and down the coast for the next 3 to 6 months before they migrate south for the winter. To see the blue whales, Captain Dan Salas of Harbor Breeze Cruises has special blue whale excursions (562-432-4900) . Tom Underhill, photographer for Peninsula News has posted more photos of the blue whale which can be accessed by clicking here.

Above photo courtesy of Tom Underhill, Peninsula News

It’s finally happened! The news media is discussing the turn in the real estate market. Although they do not specifically mention Palos Verdes Real Estate, statistics are given for the Los Angeles area. Recently, Barron’s Jonathan R. Laing had a lengthly and well- documented article which is worth the read (click here for link to article).

National statistics in the April S&P Case-Shiller Index showed that prices actually rose in 8 out of the 20 markets covered (versus only 2 in 20 markets for March). “Jim Paulsen, chief investment strategist of Wells Fargo’s primary investment unit, expects home prices to steady by year end…” Mr. Laing finishes his article by saying, “…long-term buyers in the top 20 U.S. metro markets have seen their properties appreciate by 70% since 2000. Home prices often take five to 10 years to recover fully from severe declines such as this. But at least the available data suggest the scary dive in home prices soon will be over.” As you can see from the Barron’s chart below, Los Angeles actually experienced 107% appreciation since 2000.

Statistics for real estate on the Palos Verdes Peninsula for the past 15 months are available by clicking here or on the “Statistics” tab above.

Today’s Tour Tip for Palos Verdes Real Estate Broker’s Tour is my own listing at 838 Rivera Place, Palos Verdes Estates, which has spectacular panoramic ocean and Catalina views – and is a 4 bedroom, 3 bath, 3,025 square foot home on a 14,600 square foot lot for $2,499,000.

This is a lavishly remodeled home with a private courtyard entry and ocean views from nearly every room. This exquisite home was designed with meticulous attention to quality and detail. The custom cabinetry throughout resembles fine furniture. It’s perfect for entertaining with a ground level kitchen, dining room, living room open floor plan with dramatic ocean views. The downstairs family room has a full bar (with 100-bottle wine refrigerator, humidor, draft beverage dispenser, dishwasher, refrigerator and ice-making machine) and leads to a covered patio and gardens, all with incredible ocean views.

Please come join me today, August 12, between 11:00 and 1:00 to view this beautiful home. There will also be a public open house on Sunday, August 17, from 1:00 to 4:00. View property website at www.838Rivera.com

Friday’s mortgage rates are up between 1/4 percent (jumbo 5/1 Year ARM) and 3/4 percent (jumbo 30 year fixed) compared to my last Mortgage Update on June 8, 2008. As you can see from the chart above, today’s borrower of a 30 year fixed loan will pay 6.5% conforming and 7.75% jumbo. Attention buyers: The time is right to get off the fence and purchase your new home now. Rates are not forcasted to return to last year’s record lows and may even be going in the opposite direction. There are FHA loans available with as little as 3% down on loan amounts up to $729,750 (this higher loan amount is only approved through the end of this year unless Congress extends it).

Above mortgage rates for Palos Verdes homes are provided by Jim Kurata, Peninsula Mortgage/Chase.

Yesterday, there were 32 homes on the Palos Verdes Real Estate Broker’s Tour. Several were well priced and are expected to sell quickly. We currently have 269 active single family homes for sale in Palos Verdes ranging in price from $799,000 in Rancho Palos Verdes ($599,000 in Eastview) to $23,000,000 in Rolling Hills. My favorites today are:

Susie Engstrom’s 35 Empty Saddle Lane, Rolling Hills Estates, (above left) is a 5 bedroom, 4 bath, 3,031 square foot home for $1,399,000. This secluded equestrian property is on a 17,700 square foot lot and has a separate entrance for a one bed/one bath suite. Tuba Ghannadi’s 30071 Cartier Drive, Rancho Palos Verdes, (sunset view above right) is 4 bedroom, 3 1/2 bath 3,516 square foot home for $1,598,800. This Monaco home has a spectacular ocean view, remodeled kitchen and swimming pool.

Katie Muck and Vicki Longley’s 4401 Via Azalea, Palos Verdes Estates, (above left) is a 3 bedroom, 1 3/4 bath, 2,234 square foot home for $1,399,000. This Valmonte home has a fabulous city light view from every room in the house, a park-like backyard and a separate family room. Pamela Lieb’s 2132 Via Olivera, Palos Verdes Estates, (above right) is a 4 bedroom, 2 1/2 bath, 2,331 square foot home for $1,200,000. This Lunada Bay home has a newly remodeled kitchen, an ocean view and a 12,860 square foot lot.

Photos courtesy of MRMLS

Statistics for the month of June for Palos Verdes real estate are available and the results are mixed – holding as far as price is concerned and down for number of transactions. The average price for single family homes sold in the month of June was $1,786,000 up from $1,677,000 in May ($1,699,000 average for the last 12 months).

The statistics are different for number of pending and sold transactions which are both down. June ‘08 had 35 pending and 37 sold compared to May with 41 pending and 43 sold. Inventory of homes for sale is up – 270 in June vs. 258 in May. Months of Inventory (how many months it would take to sell existing inventory at the current rate of sale) was also up to 7.3 months in June vs. 6 months in May. Average Days on Market for properties that closed escrow in June was 69. There are 5 graphs available by clicking here or on the “Statistics” tab at the top of the page.

Currently, there are 265 single family homes for sale on the Palos Verdes Peninsula. Additionally, 51 homes have pending sales; 21 homes are in escrow accepting backup offers; and 17 homes have sold/closed escrow since July 1st. Overall, 21% of single family homes for sale are in escrow!

“How is my credit score determined?” ask buyers of Palos Verdes real estate. The chart above details the scoring system used by Fair Isaac, the creator of the FICO score, one of the most widey used credit scoring methods employed by most banks and lenders in the United States.

What surprised me is that Payment History (35%) is twice as important as Length of Credit History (15%) . Making even a small payment on time is important to your overall credit score. Amounts Owed (30%) is a little more complex as it includes the total balances on each one of your lines of credit in proportion to the amount of total credit available. For example, if you have only two lines of credit open, each with a $5,000 credit limit, and both lines of credit have a $4,000 balance, you will be left with only 20% of your total credit available. This can seriously drag down your credit because you are viewed as possibly overextended, and you have little credit left over to leverage your high debts.

For this reason, closing credit cards or other credit lines will lower your total available credit, and will likely drop your FICO score. It may be wise to periodically raise the credit lines on your credit cards as a means to increase your total available credit, without having to open new credit cards unnecessarily. Having too many lines of credit open can have a negative impact on your credit score.

Speaking with a good lender or morgage broker before making your real estate purchase is the best way to learn how you can improve your credit score.

Above chart courtesy of Progressive Title

The Malaga Cove neighborhood is located in Palos Verdes Estates. The best thing about this neighborhood is the the ocean view and many properties also have the “Queen’s Necklace” view which is a view of the coastline from Redondo Beach all the way around the coast to Malibu. It is spectacular and one of my favorite views (above).

The Malaga Cove area is .66 square miles and has approximately 1500 residents. Lower Malaga Cove (west of Palos Verdes Drive West) is within walking distance from the bluffs and trails down to the water and is home to Malaga Cove School (presently not operating as a school), Palos Verdes Beach & Athletic Club (310-375-8777), Neighborhood Church (photo below), St. Francis Episcopal. Malaga Cove Shopping Center, the Malaga Cove Library and Palos Verdes Estates City Offices are located in the heart of Malaga Cove on Palos Verdes Drive West. Upper Malaga Cove (above Palos Verdes Drive West) has many homes with even grander views and is the location of LaVenta Inn (events only), Palos Verdes Golf Club and PV Tennis Club.

Most homes are custom built (many with red tile roofs). There are currently 13 single family homes for sale ranging in price from $1,665,000 (1670 sq ft) to $5,500,000 (6600 sq ft). There are currently 5 townhomes for sale ranging in price from $739,500 (1250 sq ft) to $2,500,00 (3050 sq ft).

Free summer fun in Palos Verdes Peninsula is not just for owners of Palos Verdes real estate, but is open to all. Here are some of the events to choose from this summer:

The Lunada Bay Homeowners Association will be hosting “Summer Concerts in the Park” at Lunada Bay Park from 6:00 pm to 8:00 pm on July 10 (featuring One World) and July 24 (featuring The Mark Fitchett Band) . It is recommended that you bring low beach chairs or blankets and a picnic dinner and enjoy the music.

Shakespeare By The Sea – A Midsummer Night’s Dream will be performed at Hess Park in Rancho Palos Verdes Estates at 7:00 p.m. on Sunday, July 6. This will be held outdoors; bring your own low beach chairs or blankets. If you miss that performance, Shakespeare Festival LA will be performing The Taming of the Shrew July 23-27 at the Southcoast Botanic Gardens (this not a free event – tickets are $25).

The Malaga Cove Business & Professional Association in cooperation with the Palos Verdes Police Officer’s Association presents “Summer Concerts in the Park” at Farnham Martin’s Park in Palos Verdes Estates (next to the Malaga Cove Library) on Wednesdays at 7:00 p.m. in July and August. (Tip – you may bring your blankets at 3:00 p.m to save a spot.) The concert schedule is below:

• July 9 – Yussi (Latin/Jazz/Fusion)
• July 16- Boomer McLennan & the Rhythm Rangers
• July 23- Sam & Brenda Lynne (An Evening of Vocal Standards)
• July 30- Natalie & Brice (Flute & Piano)
• Aug. 6 – Phil Marshall (All Star Classic Blues)
• Aug. 13- Bad Haggis (Celtic Rock & Roll)
• Aug. 20- Benise w/Dr. James Sitterly
• Aug. 27- Cody Bryant Band (Real Cowboys)

Photo courtesy of LBHA

Yesterday, there were 28 homes on the Palos Verdes Real EstateBroker’s Tour which is surprising for a holiday week (usually there are less). And nearly half of the homes were new listings. Today, there are 267 active single family homes for sale on the Palos Verdes Peninsula compared to 210 active listings this time last year. Interest rates for a 30-year fixed rate mortgage are 6.375% conforming and 7.375% jumbo. My favorites today were:

Chris Fitzpatrick’s 4703 Ferncreek Drive, Rolling Hills Estates, (above left) is a 4 bedroom, 3 bath, 3012 square foot home for $2,200,000. This Masongate area recently remodeled home has a pool, sports court and a 26,000 square foot flat lot situated at the end of a cul-de-sac. Steve Smith’s 2809 Via Pacheco, Palos Verdes Estates, (above right) is a 4 bedroom, 3 bath, 2775 square foot home for $1,724,900. This lower Lunada Bay area home has ocean views, a family room and lovely rose garden.

Chris Russell’s 6462 Chartres Drive, Rancho Palos Verdes, (above left) is a 4 bedroom, 3.5 bath, 2724 square foot home for $1,615,888. This Monaco area home has an ocean view, koi pond and a 3 car garage. Patricia Hedstrom and Carolyn Nelson’s 4305 Via Valmonte, Palos Verdes Estates, (above right) is a 4 bedroom, 3 bath, 2350 square foot home for $1,299,000. This Valmonte area remodeled home has an open, sunny kitchen with center island and large new redwood deck leading to the yard.

Photos courtesy of MRMLS