Palos Verdes Source

As I did last year, I thought it would be fun to go through 2009’s Top Tuesday Tour Tips for Palos Verdes homes and pick my favorites, tell you why and give you an update on those properties.

My favorite listing is Chris Adlam’s (Remax Palos Verdes Realty) 2775 Via Oleadas, Palos Verdes Estates, 90274, (above left) is a 4 bedroom, 4 bath, 3,568 square foot home that was originally listed for $4,999,000 and sold in August for $5,000,000.  This Lunada Bay ocean front estate has breathtaking ocean/bay views upon entry through the front door and from nearly every room in the house; it also had a tennis court right next to the ocean bluff and a pool!    Morena Cohen’s (Shorewood Realtors) 1633 Via Arriba, Palos Verdes Estates, 90274, (above right) is a 4 bedroom, 5 bath, 4600 square foot home that was originally listed for $3,995,000 and sold in August for $3,199,900.  This fabulous custom-built single-level Malaga Cove home is one of my favorites because it has panoramic ocean and queen’s necklace views, a wine cellar, 4 car garage and is on an exceptional double lot (20,717 sq ft).

Pamela Lieb’s (Remax Palos Verdes Realty) 32 Strawberry Lane, Rolling Hills Estates, 90274, (above left) is a 3 bedroom, 3 bath, 3,246 square foot home that was originally listed for $1,899,000 and sold in December for $1,875,000.  This Equestrian Estate is located on a magnificently level 50.090 square foot level lot and features a solar heated pool and a rare 20×50 meter Dressage Riding Arena (photo above left); there are only 2 such dressage arenas on the entire Palos Verdes Peninsula.  Sue Murphy and Marie Hoffman’s (Keller Williams Beach Cities) 30581 Rue Langlois, Rancho Palos Verdes, 90275, (above right) is a 4 bedroom, 2 bath, 1,670 square foot home that was originally listed for $1,050,000 and sold in June for $975,000.  This comfortable West Palos Verdes home has fabulous ocean views, remodeled bathrooms and was freshly painted inside and out.  This is one of my favorite areas in Palos Verdes as it has unobstructed panoramic views for under a million dollars.

Photos courtesy of MRMLS

Buyers of Palos Verdes homes often ask what a loan point is.  My clients who are refinancing also have the same question.  Here is a very concise explanation provided by a Bank of America loan officer:

What exactly are “points”?  What tax benefits accrue from “points”?  What is the “APR” and in what ways is it important?  And what are the benefits to home sellers who may consider paying a buyer’s “points”?  We look at the basics here, urging you to take your specific questions to your tax advisor, while hoping to help you better formulate those questions.

Traditionally, a “percent” is often expressed as one or more “points.”  Thus, if you pay two percent of the loan amount to originate a loan, you are paying two “points.”  It realy isn’t any more exotic than that.

If the loan is a mortgage, the total origination fee will be a combination of points and fees for services, like the appraisal fee, the escrow fee, the recording fee, and other costs.  If the mortgage is for the purpose of buying a home, known as a “purchase money loan,” then the points are deductible on your tax return for the year in which the home was purchased.  The other fees are not deductible.

Further, points paid on a refinanced mortgage are not fully deductible in the year of the transaction.  Instead, the deduction is spread (or amortized) equally over the full life of the loan.

This raises an important question.  What happens when you refinance a mortgage that has already been refinanced; that is, what happens when you refinance a second or third time?  The points paid for the prior refinanced loan become deductible in the year of the newly refinanced loan.

Points are considered prepaid interest.  They are one part of the overall interest you pay on your loan.  That is why we can deduct them against our ordinary income on our personal tax returns (remembering that the deduction schedule is different, depending on whether the loan is a new purchase money mortgage or a refinanced loan).

Understanding what points actually are and the basics of how they work can open up a world of possiblities.  Consider this: if the stated interest rate on a mortgage is surprisingly low, the lower interest rate may often be counter balanced by higher points.  Thus, one loan may bear an interest rate of 5.5% and another 5.625%.  The first loan obviously looks better than the second – until you look closely at the origination points.  Often the first loan requires slightly higher points, and the difference in the life-of-loan interest costs for each loan could be minimal as a result.

In order to make certain that consumers are aware of the expense that higher points can add to a loan, the government long ago required lenders to provide an “APR” calculation on loan settlement papers.  The Annual Percentage Rate (APR) blends the interest cost of the points and other fees into the potential life-of-loan interest payment, and then provides a new, “adjusted” interest rate that takes into consideration the loan points and associated fees.  This sounds confusing because, frankly, it is.  At best, it provides a way of comparing two loans and seeing which will cost more in the long run.

What makes far more sense is the fact that you can often pay higher points in order to pay down your loan’s interest rate, and make your monthly payment smaller.  You will want to discuss such possibilities with your Mortgage Loan Officer, tax advisor and financial advisor.  You may also want to look at the life-of-loan savings you can create with an accelerated pay-down of your mortgage, adding to each month’s principal payment and thus, if it is a fixed-rate loan, decreasing both the number of years in which you make loan payments or, if it is an adjustable rate mortgage, potentially lowering the monthly payment when the loan adjusts.  In either case, you an lower the life-of-loan interest that you pay.  (Keep in mind that an amortization schedule simply adjusts each payment so that is pays all of the interest owed on the loan balance if paid in monthly payments.  Lower the loan balance by making larger payments to the principal balance of the loan, and you will owe, and pay less interest towards the principal.)

Also worthy of discussion, when you are selling your home, is the possibility of helping the buyer by paying the points on his or her purchase money loan.  Not only is the seller allowed to do this, but the tax deduction for those points can be taken by the homebuyer, which provides a large value incentive for them.  The home not only meets the home buyer’s needs, it also costs less to purchase and decreases the buyer’s tax liability.  Again, be sure to discuss these options with your tax and financial advisors.

I appreciate your friendship, your business, and the opportunity to serve you.  Wishing you every happiness this Holiday Season and throughout the coming year.

Hiking in Palos Verdes takes you through varied terrain usually with spectacular ocean views. There are 4 different trails which can be accessed from Del Cerro Park.  All four trails are part of the Canyons Ecological Reserve and vary in length from 2 to 4 miles.

Rim Trail is 3.9 miles round trip, Ailor Cliff Trail is 3.2 miles round trip, Peacock Flat Trail is 2.1 miles round trip, and Del Cerro To Ladera Linda Trail is 2.9 miles one way.  All trails begin on the dirt Crenshaw.  Hikers are advised to bring water.  Some trails in the Portuguese Bend Reserve are closed following the August fire.  Please click here for a map of the open trails.

The Palos Verdes neighborhood of Lunada Bay is located on the west side of Palos Verdes Estates.  Lunada Bay is .7 square miles and has approximately 2,800 residents.  This area is also home to 3 schools – Lunada Bay Elementary, Palos Verdes Intermediate, and Palos Verdes High School.  You can see why this is a favorite area for families as their children will probably be able to walk to at least one of those schools during their school career.  My favorite things about Lunada Bay are the ocean views and the coastline bluff trails for walking.

Lunada Bay in Palos Verdes has its own shopping area (Palos Verdes Drive West and Yarmouth) with a market, restaurants, gas station, banks and other shops.  Lunada Bay also has its landmark fountain (photo above).  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.  Upper Lunada Bay homes are located higher on the hill and many have panoramic ocean views.

Most of Lunada Bay is single family homes (87%) but there are also apartments and townhomes.  Currently, there are 27 single family homes for sale in Lunada Bay Palos Verdes ranging in price from $1,080,000 (3 br, 2 ba, 1943 sq ft) to $4,495,000 (5 br, 5 ba, 5490 sq ft).  There are 8 homes in escrow.  41 homes have sold in Lunada Bay since the first of the year ranging in price from $875,000 (4 br, 3 ba, 1614 sq ft) to $5,000,000 for a stunning bluff home (4 br, 4 ba, 3568 sq ft).  Currently, there are 2 condos for sale in Lunada Bay – one for $399,900 (1 br, 1 ba, 671 sq ft) and one for $725,000 (3 br, 2 ba, 1609 sq ft).

Statistics for the month of November 2009 for Palos Verdes real estate are now available and again we show strong sales numbers for single family homes when compared to this time last year.   Palos Verdes homes for sale decreased again to 219 (from 243 in October).  This is good as the a decrease in supply coupled with a consistent demand keeps prices stable.  42 Palos Verdes homes Sold/closed escrow in November and 47 homes have Pending Sales.  As you can see from the chart above, this is twice the activity we saw in November of 2008.

The average price for single family Palos Verdes homes that sold in November was $1,130,000 which is down from October at $1,260,000.  There have been more sales in the low end of the Palos Verdes real estate market in 2009  Average price per square foot for Palos Verdes homes in November was $480 which is  the average for the prior six months.  Average Days on Market in November fell to 76 from 112 in October.  Months of Inventory (months it would take to sell existing inventory at the current rate of sale) for November was 5.2 which was a one month rise from October.  Entire charts can be accessed by clicking here or on the “Statistics” tab above.

Currently, there are 202 Palos Verdes homes for sale.  Additionally 47 homes have pending sales, 40 homes are in escrow accepting backup offers and 18 homes have sold/closed escrow in the first 14 days of December and one home sold for $6,400,000!

There were 14 homes on the December 9, 2009, Palos Verdes homes Broker’s Tour.  We currently have 215 active single family homes for sale in Palos Verdes ranging in price from $750,000 in Rancho Palos Verdes to $14,900.000 in Rolling Hills (the low in Eastview is $625,000).  There are 47 townhomes/condos for sale priced between $210,000 and $899,000.  My favorites are all in Rancho Palos Verdes and are:

Heidi Brown and Young OK Lee’s (Keller Williams Associates) 53 Paseo Del La Luz, Rancho Palos Verdes 90275 (above left) is a 5 bedroom, 6 bath, 8,000 square foot home for $4,800,000.  This Oceanfront  estate features panoramic ocean views, a gourmet kitchen w/butler’s pantry, large art studio and salt water pool/spa.  Rachale and Kathy Tyndall’s (Remax Palos Verdes Realty) 6716 Birchman Drive, Rancho Palos Verdes 90275 (above right), is a 3 bedroom, 2 bath, 1,920 square foot home for $968,000.  This well-priced Los Verdes home has been recently remodeled, has ocean views and a peaceful lush garden with a pond.

Al D’Amico’s (Keller Williams Palos Verdes Realty) 16 Nuvola Court, Rancho Palos Verdes 90275 (above left) is a 3 bedroom, 4 bath, 3,956 square foot home for $1,950,000.  This Peninsula Point home has unobstructed ocean/coastline views and custom balustrades on the staircases leading to a magnificent landscaped backyard.  Pearl Kaperl’s (Remax Palos Verdes Realty) 32 Via Capri, Rancho Palos Verdes 90275( above right) is a 3 bedroom, 3 bath, 2,282 square foot townhome for $899,000.  This Villa Capri townhome has a beautiful upgraded kitchen, soaring cathedral ceilings and ocean views.

Photos courtesy of MRMLS

The Palos Verdes neighborhood of Malaga Cove  has spectacular”Queen’s Necklace Views”.  You can see white water, the beaches of Redondo, Hermosa and Manhattan Beach, the coastline all the way around to Malibu, city lights at night and the ocean during the day.  It is 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 the former MalagaCove School which is currently being renovated to house the school district’s offices, Palos Verdes Beach & Athletic Club (310-375-8777), The Neighborhood Church and St. Francis Episcopal Church.  Malaga Cove also has a commercial center (photo below) with banks, real estate offices, restuarants, a market, post office and other stores and offices.  Palos Verdes Estates City Offices and the Library are also located in Malage Cove.  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 Palos Verdes Tennis Club.

 Currently, there are 11 single family homes for sale in the Malaga Cove area of Palos Verdes Estates ranging in price from $1,275,000 (3 br, 2 ba, 1878 sq ft) to $3,950,000 (3 br, 3 ba, 2228 sq ft).  There are 4 homes in escrow.  15 homes have sold in Malaga Cove since the first of the year ranging in price from $1,200,000 (4 br, 3 ba, 1946 sq ft) to $4,700,000 (6 br, 7 ba, 9884 sq ft).  Malaga Cove also has townhomes/condos and apartments.  Currently there is one 2 bedroom, 3 bath condo for sale in Malaga Cove for $661,000.

Malaga Cove homes are custom built and most have red-tile roofs.  Originally, all homes in this area that could be seen from the water had to have red tile roofs as the original developers wanted it to look like the French/Italian Riviera.

This is an understatement for the real estate market and Palos Verdes real estate specifically.  2008 was not too bad for Palos Verdes homes with the average price for single family residences of $1,624,913 (which was a 7% decline from 2007).  Number of Palos Verdes homes that sold in 2008 was 380 (versus 563 sales in 2007).

Preliminary sales numbers for 2009 indicate 422 single family homes sales in Palos Verdes to date for 2009 which is higher than last year; the average sales price to date is $1,281,868 which is reflective of the increased number of sales in the lower end of the Palos Verdes real estate market that sold (165 sales were under $1,000,000).  Sales of Palos Verdes homes over $2,000,000 decreased to 10% of sales at 42 sales.  Typically, in Palos Verdes the upper range sales are 20% of our market.

In 2009 to date, the highest priced Palos Verdes homes sold for $6,400,000 (in Monte Malaga) and the lowest priced Palos Verdes homes sold for $500,000 (in Eastview).

The Valmonte neighborhood is in Palos Verdes Estates and is located at the northwest corner of the Palos Verdes Peninsula and borders the Hollywood Riviera section of Torrance.  Valmonte is approximately 1/2 mile.  This neighbhorhood is known for its eucalyptus groves and its “family neighborhood” feel.   The topography is relatively flat which is greatfor walking, riding bikes, playing ball, etc.  It is a very friendly area with lots of people taking walks and stopping to chat.

The Palos Verdes Estates “gatehouse” or tower is located in this area as well as the Palos Verdes Estates Stables.  The first house was built in Valmonte over 70 years ago.  Houses were custom built in many different styles such as Ranch, Spanish, Contemporary, Tuscan, Craftsman, etc.  Today the area is a blend of older homes and larger newer homes that have replaced some of the older ones.

Currently, there are 14 homes for sale in the Valmonte area of Palos Verdes Estates ranging in price from $840,000 (3 br, 2 ba, 1553 sq ft) to $2,075,000 (4 br, 4 ba, 3750 sq ft).  There are 4 homes in escrow.  23 homes have sold in Valmonte since the first of the year ranging in price from $820,000 (2 br, 1 ba, 1008 sq ft) to $2,100,000 (4 br, 3 ba, 3671 sq ft).

This is a very popular area as the weather is temperate; its been described as a “banana belt” with not too much fog, wind or heat.  Valmonte is on the north side of the Palos Verdes Peninsula and is closer to beaches, freeways and shopping.  As with all neighborhoods in Palos Verdes Estates, Valmonte does not have any sidewalks, street lights or traffic signals.