Always good to take a moment to take a breath, relax and appreciate.

This is a  question that I am asked often.  The answer is ”Just fine, thank you” for several reasons. 

First, if you look at recent statistics such as “California Association of Realtors - LA County Economic Profile January 2008” the median price year to year November 2006 to November 2007 for Palos Verdes Peninsula shows an increase of 20.4%.  Los Angeles Times in Southland Home Prices dated 1/20/08 shows -2.4% for 2007.   Daily Breeze 1/14/08 shows an overall increase of 14.3% for the South Bay.  Even if you average all three different statistics, we are still showing appreciation.

Second, this is a fabulous place to live with beautiful scenery, great schools,  temperate weather, low crime, nearby beaches and close proximity to Los Angeles. 

Third, historically when there is a decline, prices generally return in a five to seven year period.  And what a wonderful location to spend those years.   

Many Multiple Listing Services allow the agent to cancel/withdraw a listing and then relist it (even moments later) to make it appear as a new listing.  I think this is a great marketing ploy but wrong.  It then gives a skewed look at buyers’ reaction to that particular property.  Kelly and Laura of Remax Palos Verdes call this “Churning and Burning”.

 If a property sits on the market for over 30 days, it is overpriced for market conditions.  The agent would better serve the Seller if they reduced the price of the property to reflect market conditions or withdraw it from the market.  That may sound harsh but the purpose of listing a property is to sell it. 

As an agent, we look at sales statistics, current inventory, conditions of home, etc. and give the Seller our estimated sales price.  This is not an exact science as it cannot take into consideration a buyer’s emotional connnection to a particular piece of property which can favorably change the outcome of a sales price. 

This ploy to relist a property as a new listing only “fools” the public.  Most agents will search the History on a property that their client is interested in and will see it as a relist/reduction of an old listing.

There is serious discussion between Congressional leaders and the White House about increasing the loan limits from $417,000 to $625,000 (perhaps as high as $725,000 in high-cost areas) for guaranteed/insured Fannie Mae and Freddie Mac loans.   From LATimes.com - “And in a provision crucial to high-housing-cost states such as California, there would be a significant one-year increase in the size of mortgages that could be backed by the government. That would make it far easier for homeowners to refinance into more affordable mortgages.”

Single family homes sales on the Palos Verdes Peninsula may not directly be affected.    In 2007, the average price (reported monthly) for a single family home that sold on the Peninsula fluctuated between $1,513,000 and $2,355,000.  The actual high for 2007 was $12,900,000 and the low was $807,500.

This change may favorably affect townhomes and condominium sales here on the Palos Verdes Peninsula as the average price (reported monthly) for a condo/townhome in 2007 fluctuated between $516,000 and $688,000.  The actual high for 2007 was $1,050,000 and the low was $235,000.

Indirectly, increasing conforming loan limits will affect the Palos Verdes Peninsula because of the “domino effect”.  In other words, buyer’s from other areas wishing to purchase in Palos Verdes will find buyers for their homes who will be taking advantage of these higher Fannie Mae/Freddie Mac guaranteed loan limits.

This is great news for the housing industry. 

As I was putting out my “Open House” signs one Sunday, I was already being followed by a car waiting to view the home.  By the time I actually arrived at the home, there were already 3 cars waiting for me to open up the house.  The day continued in that fashion.   It was one of the busiest open houses ever.  Families kept touring through for 3 hours.

One family had two small children who disappeared while I was talking to their parents.  I suggested to the parents that we check on them.  It was a two story house with a pond in the backyard.  You guessed it, they children decided to go for a swim and were in the pond.  The parents grabbed their kids, apologized and made for the door.

When we returned upstairs (which was actually the entrance), I noticed there was a beautiful brass and glass bowl missing from the kitchen counter.   Once I started looking around, I found there were even more items missing - an antique lamp, decorative items from the bathrooms including towels and even an area rug. 

The Valmonte neighborhood is located in Palos Verdes Estates.  The best thing about this neighborhood is that it is a family neighborhood.  There are usually groups of children playing outdoors on any given day.    The topography is relatively flat which is great for walking, riding bikes, playing ball, etc.   It is a very friendly area with lots of people taking walks and stopping to chat. 

Houses were built individually by owners who purchased lots - this is not a tract neighborhood.  The first house was built over 70 years ago.  There are  mixed style homes from Ranch, Spanish, Contemporary, Tuscan, Craftsman, etc. all approved by the Palos Verdes Homeowner’s Association.  Housing prices in 2007 ranged from $912,500 to $2,685,000. 

The weather is temperate; it’s been said Valmonte is in a “banana belt” - not too much fog, wind or heat - it’s perfect.  Valmonte is located on the north side of the Palos Verdes Peninsula so it is closer to beaches, freeways and shopping “off the hill”.  There are no sidewalks, street lights or signals.  At night you can see the stars.

Yesterday, rumors were swirling that Bank of America may be buying the troubled Countrywide.  This is good news for the financial markets and ultimately for our local real estate.  This piece of news will add some calm to the aura of uncertainty surrounding Countrywide and other lenders who have been impacted by the subprime mess.

With the calming of the financial sector and the increased confidence it spawns, the perception of “everything is okay now” will encourage buyers to come back into the real estate market.  It is such a matter of perception and the press has been very negative last year which scared many buyers and sidelined them with a “wait and see” attitude.

In addition, Federal Reserve Chairman Bernanke hinted at another rate cut.  Marion Duffy, of ERA Orange County, says “that this announcement will have a very positive effect on our market.”

My neighbor passed away in her home just two weeks shy of her 102nd birthday.   When I think back on the 33 years we “shared a fence”, I cannot  remember her ever being stressed about anything.  The other neighbors have also commented on this phenomenon.  We never saw her angry, upset, tense or worried.   She loved everybody.  We think this is the secret to her longevity.  She was such an inspiration.

At her memorial service, I heard how in response to some “bad” news, she said, “Oh well”.   The gentleman giving the eulogy had her mannerisms down perfectly - the cocking of the head to the side, the shrug of the shoulders, the raising of the eyebrows and the words, “Oh well”.  I remembered how many times I had actually seen her do this.

“Oh well” is my mantra for this new year.  This was put to the test yesterday when an “issue” came up for a client.  Instead of jumping into fix mode complete with my adrenalin soaring, I said “Oh well, let me make some calls”.  The problem was taken care of without any stress on my part and the client was very grateful.  I love it.

In Palos Verdes Estates, we are blessed with the “Art Jury” (Homeowner’s Association) which is to approve any exterior changes to your home.   This is everything from the color of your home to shutters, doors, driveways, rain gutters, fencing — you get the picture.  The good news is that it keeps the neighborhood looking nice and not “too far out”.  The challenge can be when you sell your home.

 A disclosure regarding the “Art Jury” must be given to buyers.   Sellers are smart to request a “Certificate of Completion and Compliance” (and pay $150 fee) prior to listing their property.  The Palos Verdes Homeowner’s Association will come out and physically inspect the property with rolls of past approved plans in hand.  Anything not formally approved by the City -  and in addition to the above, I have seen items such as patios, gates, awnings, sheds, windows, playhouse, skylight, etc. - will appear in your letter as non-conforming items. 

The City takes photos while at the property and if you submit a formal request (and fees) to the City, they will let you know what is approved and not approved.  Most buyers I have dealt with accept these non-conforming items and understand that the City may ask them to come into compliance when the new buyer later goes to the City for future permits/approval.  It’s all about disclosure - buyers and sellers both appreciate all known facts being presented so they can make an informed decision.

Jack and Susan Black purchased a beautiful new home on the Los Verdes Golf Course near the ninth hole.  After moving in to their new home, Jack was relaxing on his back patio and was struck by an errant golf ball hit by a nearby golfer.  

Although Jack’s injuries were minor, he sued his realtor, the seller and the listing agent for not disclosing this potential danger.  The defendants argued that anyone could see golfers playing on the course and the buyer should have known that an errant golf ball was a possibility.  The courts agreed with the buyer, Jack Black.

In order to encourage maximum disclosure, California Association of Realtors responded with a new disclosure to be given to any potential buyer near a golf course to ensure that all potential buyers were aware of potential errant golf balls.