Palos Verdes Source

Here is another great spot which was submitted by Mary McPherson. This is the Ocean Estates Trail in Rancho Palos Verdes. This is an easy walk along the bluff of our beautiful Palos Verdes coast looking out at the ocean and several coves. It is quiet and peaceful. There are benches to sit and take it all in.

The Trail is located on the ocean side of Oceanfront Estates. At the end of Hawthorne Boulevard, cross Palos Verdes Drive West and the street turns into Via Vicente. Bear right onto Calle Entradero. There are parking areas on the street. You can also stop at Golden Cove Center (just across Hawthorne Boulevard) and pick up lunch or a snack for your walk.

This is the first in a series of special places on the Palos Verdes Peninsula which many owners of Palos Verdes real estate are not aware of. You might say these are “secret” places. The Gazebo at Roessler Pointis located in Palos Verdes Estates. The entrance is at the northwest end of the parking lot for Malaga Cove School (Paseo Del Mar and Via Arroyo).

The Gazebo ia a great spot for contemplation and the view is spectacular. It is very quiet and you are usually the only one there. You can see the coastline Queen’s Necklace view all the way around to Malibu. The sunsets are also fabulous. If you want to walk down on the beach, the path is just to the right.

The Lunada Bay neighborhood is located in Palos Verdes Estates. My favorite things about this neighborhood are the ocean views and the coastline bluff trails for walking. My son would say it was when the last Pirates of the Caribbean movie was being filmed (photo above) two summers ago and the cliffs were lined with people (including us) with binoculars watching.

The Lunada Bay area is .7 square miles and has approximately 2,778 residents. This area is also home to 3 schools (Lunada Bay Elementary, Palos Verdes Intermediate and Palos Verdes High School) and is a favorite area for families. Lunada Bay has its own fountain (photo below) and shopping area (Palos Verdes Drive West and Yarmouth) with a market, restaurants, gas station, banks and other shops. Some Lower Lunada Bay homes (on the ocean side of Palos Drive West) have ocean views; this area is fairly flat which is perfect for biking and walking. As Upper Lunada Bay homes are located higher on our hill, many have panoramic ocean views.

Nearly eighty seven percent of the housing in Lunada Bay is single family homes. There are also apartments and townhomes. There are currently 26 single family homes ranging in price from $1,079,000 (1572 sq ft) to $3,295,000 (3859 sq ft). Currenty, there are no active townhomes for sale. There are 2 townhomes in escrow with a list price of $599,000 (1142 sq ft) and $629,000 (1184 sq ft).

Yesterday, there were 25 homes on the Palos Verdes Real Estate Broker’s Tour. I have selected both high and low priced homes. We currently have 281 active single family homes for sale in Palos Verdes ranging in price from $849,000 in Rancho Palos Verdes ($579,000 in Eastview) to $23,000,000 in Rolling Hills. There are 50 townhomes for sale priced between $305,000 and $2,288,000.

Cheryle Ushkow’s 57 Paseo Del La Luz, Rancho Palos Verdes, (above left) is a 4 bedroom, 6 bath, 7,012 square foot home for $5,395,000. This luxurious Oceanfront home has unobstructed ocean views, an office/library and the largest home pool I have ever seen. Steve Watt’s 2635 Via Carrillo, Palos Verdes Estates (above right) is a 3 bedroom, 2 bath, 1,993 square foot home for $1,250,000. This remodeled Lunada Bay home has large bedrooms, ocean views and a formal dining room.

Shawn Nejad’s 28035 Braidwood Drive, Rancho Palos Drive, (above left) is a 4 bedroom, 3 bath, 2,262 square foot home for $1,299,000. This well-priced home includes ocean views from nearly every room, a remodeled kitchen and pool with spa. Kelly Evans and Laura Medina’s 30221 Kingsridge Drive, Rancho Palos Verdes, (above right) is a 3 bedroom 2 bath, 1,750 square foot home for $875,000. This home near the Miraleste Hiking Trails has city/ocean/harbor views, a remodeled kitchen and an attractive open floor plan.

Photos courtesy of MRMLS

Chris Ayres loves his house. In his refreshing and thoughtful opinion piece in the LA Times, he challenges us to remember why we should love ours too. He actually purchased his home one year ago and instead of bemoaning the fact that his home may be worth less today, he tells us why he is lucky.

First, the price – Ayres concludes a $1,200,000 purchase price, a loan of $1,000,000 at a fixed rate of 6%, and $200,000 of your own money for the down payment. Next he factors a hefty devaluation of the property to $800,000 (and that is a big hit). He moves on to inflation – “At its current unbowdlerized rate of 5%, inflation alone will devalue your million dollar loan over the next decade to the “real money” equivalent of about $600,000, while at the same time causing your home to appreciate to $1.3 million..” Ayres then factors in mortgage deduction and property tax deduction; in the 33% bracket over the decade, you would save $230,000. He adds another $200,000 for the theoretical savings over the same period if you had waited to buy and paid a higher 8% fixed rate; “and the $700,000 of equity you’ll potentially end up with after inflation’s gone to work on both your loan and the value of your home.” End result is a $1.1 million gain.

Palos Verdes real estate owners have been fortunate. Our property values have reamained fairly steady this last year. As perception can become a self-fulfilling prophecy, this article reminds us that we are really okay.

Statistics for the month of July for Palos Verdes Real Estate are available and the results were mixed again for July – more closed escrows and less pending sales. There were 38 closed escrows and 45 pending sales in June vs. 48 closed escrows and 21 pending sales in July. The days on market for sold properties in July was only 52 days compared to 67 days in June.

Average price for homes that closed escrow in July was down at$1,489,000 which could be an anomoly (please see entire chart by clicking here or on the “Statistics” tab above) as was the $700,000 spike upward for December 2007. Average prices for some individual neighborhoods like Lunada Bay actually posted an increase of 30%. Large swings can be caused by the specific homes that closed that particular month. Months of Inventory (how many months it would take to sell existing inventory at the current rate of sale) fell from 7.1 months in June to 5.8 months in July (a good sign).

Currently, there are 278 single family homes for sale on the Palos Verdes Peninsula. Additionally, 27 homes have pending sales; 22 homes are in escrow accepting backup offers; and 22 homes have sold/closed escrow since August 1st. Overall, 15% of single family homes for sale are in escrow!

Walker Williams, Superintendent of Palos Verdes Unified School District, spoke this morning at our Remax meeting. Our schools are one of the reasons that Palos Verdes real estate is so desirable. Here are some interesting facts from his presentation:

• There are approximately 12,000 students in our district (30 less than last year)
• 80% of our funding comes from the State which is why the State budget situation will impact us. The school district budget is balanced for the next school year.
• Early indications are that our students performed well in recent state testing and “a little better than last year”
• 99% of our high school graduates go on to college – 80% to a 4-year college and 19% to a 2-year college
• U.S. News & World Report named both Palos Verdes High School and Peninsula High School in the “Top 100 High Schools in the Nation”
• A new language program (Chinese or Spanish) will be introduced at the K-5 levels this Fall which is paid for by the Education Foundation
• Palos Verdes High School will get a new pool, track and field and currently has 1800-1900 students on the block system
• Peninsula High School will get a new Practice Gymnasium and currently has 2400 students
• Malaga Cove School (photo above) will get a $8.5 million construction/modernization and will eventually house the District Offices
• Valmonte School (with no district offices) will probably be reopened as a K-5 elementary school or a Preschool through Kindergarten facility
• Currently Valmonte and Miraleste Elementary Schools house a paid Preschool program which brings income to the district
• Kindergarten programs district wide will be full day programs with 20 to 1 student/teacher ratio

Mortgage rates have changed again this week. The market seems to swing according to the media focus. With the start of the Olympics, we may be in for a bit of a reprieve. However, according to a CNN article by Les Christie, borrowers may benefit by locking in their interest rate (pre closing). Several experts cited in the article expect interest rates to go up in the next six weeks and forecast at least 7% interest rates by the end of the year.

“For every half point interest rate increase, the monthly payment on a typical mortgage of $200,000 jumps nearly $70. That adds up to ore than $800 a year, and $8,000 in the first 10 years of a 30-year mortgage” For Palos Verdes real estate, the numbers are much higher but one can use this information as a base to compute what it will mean to their new mortgage. Locking in an interest rate today (if you are in contract or have a binder on a home) is good for 60 days and may cost as much as an extra 1/8 of a point. It’s worth a call to your lender to inquire.

Above mortgage rates are provided by Jim Kurata, Peninsula Mortgage/Chase.

Yesterday, there were 30 homes on the Palos Verdes Real Estate Broker’s Tour. Below is a sampling which includes 3 single family homes (one available for lease/option) and 1 townhome. We currently have 285 active single family homes for sale in Palos Verdes ranging in price from $849,000 in Rancho Palos Verdes ($539,000 in Eastview) to $23,000,000 in Rolling Hills. There are 50 townhomes for sale priced between $305,000 and $2,500,000.

Steven Cohen’s 30725 Cartier Drive, Rancho Palos Verdes, (above left) is a 5 bedroom, 6 bath, 5,475 square foot home for $3,875,000. This completely remodeled Monaco home has a tennis court, swimming pool and ocean/whitewater views. Joyce Yang’s 1 Via Granada, Rolling Hills Estates, (above right) is a 3 bedroom, 3 bath, 2,006 square foot townhome for $789,900. This Casas Verdes end-unit townhome has a secluded rear patio, clubhouse and gated pool area.

Chris Fitzpatrick’s 27449 Halescorner Road, Rancho Palos Verdes, (above left) is a 4 bedroom, 2 bath, 2,230 square foot home for $1,295,000. This Grandpoint home has been extensively remodeled, and has a pool and backyard playhouse. Harold Maltz’ 29520 Driftwoood Lane, Rancho Palos Verdes, (above right) is a 4 bedroom, 3 bath, 3,092 square foot home for $1,299,000 or for lease/lease-option for $5,500/month. This home near Hesse Park has some ocean/canyon view, is on a cul-de-sac and has a 3-car garage.

Photos courtesy of MRMLS

That is the question of the hour from buyers of Palos Verdes real estate (and probably nationwide). Should buyers believe the doomsayers or the optimists? Today the LA Times has a very balanced answer to their question.

Reasons not to buy are mostly from economic forecasts, statistics and ratios. Reasons to buy look at the benefits of home ownership (you can’t be evicted, you can control the environment that you live in and looking ahead – you potentially can own your home free and clear/no monthly payments). Another important factor is the mortgage interest deduction and property tax deduction which saves big money at tax time. And if you are renting, you could spend less bottom line after income tax deductions. Gary Smith, a Pomona College economist is quoted as saying “Buying a house is risky, but waiting is risky too.”

Words of wisdom from the pros are: “Don’t count on price appreciation. Don’t expect a house to make you financially stable. Don’t buy if you think you may be moving soon.” Richard Green, director of USC’s Lusk Center for Real Estate, says “A house can be like a car, something you use and enjoy and have for a while. Whether it goes up or down in value may not be so important.”