Palos Verdes Source

It is Cherry Blossom Time again at South Coast Botanic Garden on the Palos Verdes Peninsula. This is the closest location for us to see the beauty and color of these trees. And when the petals fall in the breeze, it is like a silent rain. I often forget what a special place the Garden is. One can roam around for hours enjoying beauty and nature. It is a gift to our soul.

South Coast Botanic Gardens has a full calendar of events (accessible by clicking here) ranging from a Cactus & Succulent Show, to a Mother’s Day Concert to a Ferrari Car Show. The first Sunday and third Wednesday of every month at 8:00 a.m. they have Bird Walks in the Garden pointing out different and unusual species.

The Spring Plant Sale will be held Saturday, April 18, at 9:00 a.m. It’s best to get there early as the interesting plants go fast.

Can you qualify for the home buyer tax credit? Maybe. Here is what we know. With the recently passed legislation, “first time” buyers who purchase a home between January 1, 2009 and December 1, 2009 may qualify for a $8000 tax credit. What surprised me was reading that a first time home buyer is someone who has never owned a home before or hasn’t owned one during the three years preceding the 2009 closing date.

That surprise, according to Kenneth R. Harney (in the LA Times) means that “Carefully planning the timing of your closing could be worth thousands of dollars to you. Say you owned a house earlier in the decade, but sold in on March 25, 2006. If you close on a house in 2009 before March 25, you do not qualify for the $8,000 credit. Push settlement back to March 26 or later — any time before Dec 1, when the new credit program’s eligibility period expired — and you’re $8,000 to the better.”

There is also an eligibility requirement. Annual adjusted gross income may not be $75,000 or greater for an individual and $150,000 or greater for couples filing jointly.

The Montemalaga neighborhood is located in Palos Verdes Estates. The best thing about this neighborhood is the fabulous ocean and Queen’s Necklace views (photo above) that many homes enjoy as this area is the highest elevation (up to 1380 feet) in Palos Verdes Estates.

The Montemalaga neighborhood is roughly 1 square mile in area and has no ocean borders. It is located on the hill above Lunada Bay, Malaga Cove and Bluff Cove and is bordered by Rancho Palos Verdes to the east. Montemalaga has many of the largest homes on the Peninsula and the lots are among the largest in Palos Verdes Estates. The largest home in this neighborhood is approximately 39,000 square feet. Montemalaga Elementary School is located in this area.

This is strictly a residential area without any commercial or even multi-family housing. There are currently 21 single family homes for sale ranging in price from $1,265,000 (1,805 square feet) to $12,999,000 (18,227 square feet).

Yesterday, there were only 13 homes on the Palos Verdes real estateBroker’s Tour. It must be because of all the rain we have been having. We currently have 261 active single family homes for sale in Palos Verdes ranging in price from $799,000 in Rancho Palos Verdes to $18,900,000 in Rolling Hills (the low in Eastview is $585,000). There are 49 townhomes/condos for sale priced between $229,500 and $829,900. My favorites were:

Les Fishman’s 1020 Palos Verdes Drive, Palos Verdes Estates (above left), is a 5 bedroom 3 bath, 3,038 square foot home for $1,950,000. This contemporary Malaga Cove home includes a 2 bedroom guest house, ocean /Santa Monica/coastline views from most rooms and an open gourmet kitchen. Karen Montandon’s 2112 Via Alamitos, Palos Verdes Estates (above right) is a 3 bedroom, 3 bath, 2,758 square foot home for $1,495,000. This lovely Monte Malaga home has a family room, temperature controlled wine cellar and a workout room.

Rick and Kitty Edler’s 241 Rocky Point Road, Palos Verdes Estates (above) is a 5 bedroom, 7 bath, 5,088 square foot home for $5,900,000. This gated Lunada Bay Bluff property has a large private pool, expansive grassy lawns, viewing patios and you are right at the waters edge!

Photos courtesy of MRMLS

There were a couple of positive changes for the Palos Verdes real estate market that will be enacted with the approval of the Stimulus Package. The conforming loan limit will be increased to $729,750 for 2009 for our local market. That means you can borrow up to $729,750 at the conforming jumbo rate. Lenders have told me for amounts higher than $729,750, clients have been obtaining a second mortgage so they can still take advantage of that low 30-year fixed rate (4.75%).

This American Recovery and Reinvestment Act of 2009 (when signed by Obama) also increases the first-time home buyer credit from $7,500 to $8,000 and removes the requirement that the credit be paid back. What kind of credit was that anyway if you have to pay it back? First-time home buyers must have purchased a home after January 1, 2009 and before December 1, 2009 to be eligible for the $8,000 credit.

The loan rates above are nearly the same as last month. The good news is that rates have not increased from these historic lows.

Statistics for single family homes for the month of January for Palos Verdes Real Estate are now available. January 2009 compared to January 2008 has the same number of sold/closed escrows, 1 additional pending escrow, and 46 more active listings/home for sale. Average price per square foot for homes that sold January 2009 is $494 compared to $545 last January.

For the month of January, there were 15 closed escrows (23 in December) and 12 pending sales (14 in December). Active single family homes for sale have risen to 247 (from 222 in December). Average price for homes that closed in January decreased to $1,194,000 from $1,248,000 in December. Average days on market in January decreased to 70 (from 87 in December). Months of inventory (how many months it would take to sell existing inventory at the current rate of sale) increased to 16.5 months (from 9.7 in December). Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 262 single family homes for sale on the Palos Verdes Peninsula. Additionally, 23 homes have pending sales, 23 homes are in escrow accepting backup offers and 5 homes have sold/closed escrow in the first 13 days of January.

Everyone wants to know how the Palos Verdes real estate market is doing. I am an optimist by nature so I have to check for facts before I give my opinion. Currently we have 32 properties that have sold/closed escrow since the first of the year compared to 23 properties this same time period in 2008. Additionally, there are currently 42 properties in escrow. So the Palos Verdes real estate market is moving forward. Prices are definitely down though compared to 2008.

How will our market fare in 2009? Leslie Appleton Young, Chief Economist for California Association of Realtors, gave her forecast last week (can be accessed by clicking here). Bottom line is that she thinks number of sales will go up and prices will go down. In high end markets (like Palos Verdes), she is forecasting a double digit decline based on the economy, financial markets and decrease in trickle-up buyers from low-end properties (with high foreclosure rates) to mid-range properties to high-end properties.

For Sellers, this means pricing is key to getting your home sold. Accurately pricing a home continues to be the number one factor to conclude a successful sale. 67% of all buyers in 2008 stated that “price decreases motivated us” to purchase a home according to the above referenced Market Forecast. If the forecast is correct, now is a good time to sell before further price decreases.

For Buyers, this means that your time is now. When you sell your existing home and receive less, it will be more than offset by the savings on your up-leg property when you buy. Interests rates are at historic lows – less than 5% for conforming loans and 6.25% for jumbo loans. If you purchase before the Spring, you will experience less competition from other buyers when negotiating price on your new home. Part of the Stimulus Plan if passed by Congress includes a tax credit for buyers (stay tuned for those results).

A very special place to visit in Palos Verdes Estates is the Labyrinth at Neighborhood Church. There is a memorial plaque which reads, “For the Journey of Life to Help You find Your Way.” It is “Dedicated to the Memory of Miriam Levonian”. As you walk the path to the center (which is marked as a shell), you are to ponder your life. I am usually struck with thoughts of all that I have to be grateful for.

And look at that view! You can see all around the coastline from Redondo Beach to Malibu. Observing beauty puts me in a very grateful place.

The Neighborhood Church is located on Paseo Del Mar in Malaga Cove. This beautiful church was originally built in 1927 as the Haggarty mansion. The Neighborhood Church is affiliated with United Church of Christ. For more history and information, click on this link.

Yesterday, there were 31 homes on the Palos Verdes real estate Broker’s Tour. We currently have 249 active single family homes for sale in Palos Verdes ranging in price from $775,000 in Rancho Palos Verdes to $18,900,000 in Rolling Hills (the low in Eastview is $585,000). There are 50 townhomes condos for sale priced between $339,000 and $885,000. My favorites were:

Van Barbieri’s 6580 Sea Cove, Rancho Palos Verdes (above left), is a 5 bedroom, 5 bath, 7,407 square foot home for $4,500,000. This fabulous gated private Bluff property has spectacular ocean views, huge master suite, 2 offices, playroom, music room, pool, etc. Tuba Ghannadi’s 30856 Via La Cresta, Rancho Palos Verdes (above right) is a 5 bedroom, 4 bath, 3,260 square foot home for $2,050,000. This beautiful Country Club home a gourmet kitchen, pool and panoramic ocean views from every room.

Chad Fahlbusch’s 1808 Via Olivera, Palos Verdes Estates (above left), is a 4 bedroom, 3 bath, 2,873 square foot home for $1,399,900. This upper Lunada Bay home features a bright sunny family room, large park-like back yard and is within walking distance to PV Intermediate and PV High Schools. Dorothea Liebich and Janet Hausrath’s 28725 Crestridge Road, Rancho Palos Verdes (above right), is a 4 bedroom 2 bath, 2,175 square foot home for $990,000. This Ridgecrest home has a moon gate entrance, a pool and is on a half acre lot.

Photos courtesy of MRMLS

How to get buyers off the fence and into their new homes in Palos Verdes is the question of the hour. This morning, the Los Angeles Times had two interesting articles on that very subject.

“A reverse offer gets attention” by Lew Sichelman explores a unique concept – What can the Seller do to coax the Buyer to the table? Sichelman suggests that the Seller may want to make the Buyer an offer. That is really taking the bull by the horns. Before taking this approach, it is recommended that the Buyer has shown some interest in said property and has communicated that feedback to his agent. The Buyer’s agent must be on board with the idea of an offer from the Seller and the Buyer must be preapproved for a mortgage. The offer from the Seller must address some of the Buyer’s concerns about the property and be at a price that is reduced from the listed price.

“Builders try to coax buyers off the fence” by Kenneth R. Harney describes the incentives that builders are giving to Buyers. A study conducted early in January indicated “the mortgage rate that consumers said would be most effective in persuading them to buy now: a 30-year loan with a fixed 3% interest rate.” Some builders are now offering a 3.99% interest rate. Conventional rates are now 4.875 percent with 1 loan point. Paying higher loan points reduces that interest rate. Builders are offering “combination packages of special financing, price concessions, lower down payments and perhaps application guarantees.”