Rodeo Realty

 

By Victoria Talbot

 

Beverly Hills recorded the highest-priced sale in its history Thursday at $70 million for an 8-bedroom, 15-bath home in Trousdale Estates. Congratulations go to Branden Williams and his wife-and-partner Rayni at Hilton & Hyland. The buyer was represented by Sally Forster Jones, president of Aaroe International Luxury Properties and Katia De Los Reyes of John Aaroe Group.

Purchased by Markus “Notch” Persson, creator of the Minecraft game, interested parties included Beyoncé and Jay-Z, but the Swedish billionaire won the bidding war. Escrow closed in six days.

The just-completed, wrap-around, steel-and-glass, home represents every modern amenity including the exceptional hi-tech appointments that make a home. For Persson, who programmed his father’s home computer at the age of seven and created his first game at eight, this property must be a dream.

John Aaroe said, “I have been in this market for over 30 years and have never seen the level of growth that the luxury market has experienced in the past year, with no end in sight.”

“This was a great product and it’s in the best City in the world, Beverly Hills,” said Branden Williams. “Cool architecture with a 360-degree view of all of downtown and the ocean . . . “

Williams said the product was so good it practically sold itself.

“People come to Beverly Hills and they would like to see something magnificent,” he said. This house is magnificent. According to his standards, Williams says that the indoor-outdoor feel, the stainless steel-frame, glass and hi-tech appointments are what his overseas clients imagine in Beverly Hills. They are looking for the high-end top-of-the food chain architecture personified by this Trousdale home.

This home was unique. In addition to all the architectural features, the 90210-zip code and the Trousdale location, this one has the 360-degree view, which cannot be beat.

“This house was 23,000 square feet with beautiful views, bedrooms and amenities. There is not a lot of inventory like that,” said Williams.

Just completed, the residence’s architect was Bruce Makowsky, he of the famed handbag line sold on QVC.

Located at 1181 Hillcrest Drive, the house is certainly in a good neighborhood. Area residents include Jennifer Anniston, Ringo Star and when he was alive, Elvis, said Williams.

Among the legendary features toilets (15) at $5,600 each; an 18-seat screening room with lizard-skin walls, a wall of onyx, iPad controlled fountains and a 54-foot curved-glass wall that slides open to an infinity pool that drops off into the L.A. Basin. Williams calls the mirrored subterranean garage a “garage-majal.” One room features a wall made of every kind of candy in dispensers floor-to-ceiling, a sweet way to charm one’s guests.

“Its the perfect 23,000 square foot bachelor pad,” said Sally Forster Jones.

Peerson has a twit-pic making the internet rounds of someone’s feet, presumably his, resting on the divan in what appears to be the house.

“He’s a really sweet guy,” said Forster. She confirmed that all the furniture is one-of-a-kind, custom-built for the house, including the “Bentley chairs” for the living room.

“The house just has a lot of ‘wow’ factors.”

Makowsky took a risk, and it paid off. The property was bought just prior to the real estate spike, at $12.8 million and developed on spec. It is now worth between $3-4,000 a square foot.

What a gamble. “That’s the highest price per square foot, not only in California, but in the entire country,” said Williams.

The $70 million sale was listed by Ben Bacal of Rodeo Realty. Bacal sold the property to Bruce Makowsky during the market downturn for $12.8 million, but was convinced, he said, that the property was worth more. He represented both the buyer and the seller at the time.

“Now the lot alone would be worth $37 million,” said Bacal. I predicted that it was going to be worth a lot more.”

“Makowsky has a vision to create the ultimate turn-key mega mansions for the 4,000 or so billionaires in the world who want the best contemporary view properties in Los Angeles.” Bacal says that these properties are undervalued compared to comparable  properties elsewhere in the world, a view shared by many.

“This is the last promontory view property to buy in Trousdale,” he pointed out. That is what made it so valuable. “There aren’t that many. There’s not a lot of great land left anywhere in the Golden Triangle. It is significantly undervalued to live in the most incredible place in the world.” He sees values rising to $4-5-6,000 per square foot among those lots.

Makowsky has big plans, said Ben. Currently he is developing three more properties, including two in Beverly Hills at 80,000 and 70,000 square feet each. The third is in Bel Air and is 40,000 square feet. “These will top $150 million,” he said.

“He personally finances all of his developments,” said Bacal, who expects to list these properties with Ben Bacal.

When the home was purchased, the Minecraft creator also purchased all of the furniture for $6 million.

 

Buying a new home was such a wonderful experience with Gitty. We met Gitty while looking for homes in the valley. She wasn’t a referral nor did we know her at all prior to doing business! But when we met her, she got our contact information and quickly followed up with us. We immediately felt comfortable with her and got a sense that she would take care of us. Gitty is not your typical realtor, meaning she won’t sell you a house just to get a commission. She really asked us about our current needs and future goals. She showed us houses that are well below our minimum range, but had good potential because she knows that my husband us a DIY guy and cautioned us when we were looking at houses that were well above our price range. She looked out for our best interest and made sure we were buying a home that was right for us. And we did buy the home that was right for us. We love our new home! It’s in the perfect location and perfect for my growing family.

Gitty is not your typical realtor. She is more of a consultant who really looks after your best interest. She’s very professional and genuinely caring. You would want her on your side when buying or selling your home.

– Bernice Brennan

This year marked a great year for real estate as far as price increases, the ability for sellers to sell, and for realtors to get homes sold.

The big problem that seems to have evaded a lot of chatter is the number of homes sold. Home sales each month this year have averaged about 14% below levels for the same monthly average since DataQuick began tracking sales in 1988. If you think about how many more homes there are every year, and how much larger the population is, it defies logic to gave fewer sales than 25 years ago!

This has nothing to do with buyer demand, or their ability to qualify for a mortgage, or even jobs. That’s evident with almost three quarters of our home sales in which there are multiple offers. It’s also displayed in the home inventory levels. A 6 to 7 month supply is considered a normal market. We are at a 3 1/2 month supply. We were trending up in August but that trend has reversed dramatically in the last 90 days.

The million dollar questions are: “Why are so few sellers putting their homes up for sale? And “When will this trend reverse”? No expert has any explication.

We do know that first time landlords are at an all time high level. This began when prices were low and people were buying a new home while renting out their current home, waiting for prices to rebound. Now prices have rebounded and they are still keeping them rented. Low interest rates have also contributed. Many people are able to pull money out of their current home and rent it rather than sell. A one million dollar mortgage today can carry a $2,600 a month payment on a 3 or 5 year fixed. That enables people to borrow more. We know this is one of these issues, but that alone can not explain how we could be near at 25 year low in the number of sales as DataQuick reported in November.

The next issue is the loss of stated income loans. Many homeowners that would sell and buy another are self employed and write off too much to qualify for a home and need to stay in their old home that they bought and financed before 2007. Although a few lenders do have stated, they are hard to get and much more expensive. Mortgage reform pretty much put an end to these loans as verifying income was required on owner occupied loans.

Lastly, many people think they won’t qualify for a loan when they would. In a recent study two thirds of people that thought they would not qualify really would. Perhaps many homeowners that would move up are not because they feel they can’t qualify for a new home if they sold their current home.

This trend may reverse a little in 2015 as people that rented homes sell to take profit because they feel the market may be topping out. We could see some more stated loan options as lenders push for more ways to loan out money, as this trend of fewer sales has hurt them as well. Some that had no equity for a down payment in recent years that now do, combined with lower down payment options from lenders, will also help. I’d expect to see more sales in 2015 than 2014, but unfortunately below average levels. This will also place more upward pressure on prices. Expect to see prices rise another 7 to 10%. Anytime you have more buyers than sellers you are going to see prices rising!

By: Syd Leibovitch

By: Tim Logan

After a furious run-up in home prices in 2013, the Southern California housing market flattened out this year — setting the stage for slow but steady growth next year.

The 2015 housing market could be downright normal by the roller-coaster standards of local real estate, industry watchers said. Experts expect a better balance between buyers and sellers, and more sales.
That would be a change from the sluggish summer and fall seasons, when would-be buyers and sellers both opted out of the market, leaving prices basically flat since May. Sales are on pace to fall 10% this year over last year.

The economy is doing better and [mortgage interest] rates are still really low, but it looks like housing affordability is keeping a damper on things.- Leslie Appleton-Young, chief economist for the California Assn. of Realtors

That trend continued in November, according to figures out Monday from CoreLogic DataQuick. The median home price in the six-county region was $412,000, up 7% from the same month last year but basically unchanged from October. The number of homes sold was near a 25-year-low for the month.

Many experts had predicted 2014 would be the year when so-called regular buyers finally jumped back into the market — picking up from bargain-hunting investors that swarmed Southern California after the housing crash.
It didn’t work out that way, despite an improving economy, record-low interest rates and a push from Washington to ease lending standards. Prices remained too high for many buyers.

“We kind of got the signals wrong. A lot of people did,” said Leslie Appleton-Young, chief economist for the California Assn. of Realtors. “The economy is doing better and [mortgage interest] rates are still really low, but it looks like housing affordability is keeping a damper on things.”

That’s especially true in Southern California, where home price growth has sprinted ahead of income growth over the last couple of years. If the Southland’s housing market is ever going to pick up speed, said Andrew LePage, a data analyst with CoreLogic DataQuick, more people need to be earning more money.
“Job growth and wage growth is going to matter a lot,” LePage said. “And not just getting a job, but feeling good about it and getting a raise.”

A stronger job market could certainly help boost demand, economists say. But even then, income growth is unlikely to keep pace with home prices. The California Assn. of Realtors is predicting prices will grow 5.2% statewide next year, the slowest pace since 2011.
Although the market may normalize, it will continue to evolve. Here are a few other developments to watch for in 2015:

The number of homes for sale has run well below historical norms in recent years, pushing prices up, sparking bidding wars and giving would-be buyers relatively little from which to choose.
“This has been a drastic problem,” said Syd Leibovich, chief executive of Rodeo Realty, one of the region’s largest brokerages. “I think it’s the biggest issue facing the market right now.”

That may change, however. Owners have regained equity in their homes, and prices have rebounded to the point that selling may make sense for more people.
A survey by real estate website Trulia found 36% of people expect 2015 to be a better year to sell than 2014 was, while only 16% expect it to be worse. If more of those people test the waters, the market could start running smoothly once more, said Trulia’s chief economist, Jed Kolko.

 

The half of L.A. residents who rent may get a little relief.
Apartment construction in Los Angeles and Orange counties has surged recently, with more multifamily building permits issued so far in 2014 than in any year since 2006. Builders are chasing rents that have climbed sharply in the last few years, and a bulge of twentysomethings who are finally moving out of their parents’ houses and into their first apartments.

The pace of building is still far below the boom days of the mid-80s, and USC’s Lusk Center for Real Estate is still forecasting annual rent growth of about 4% over the next couple of years. But all those new units coming on the market will at least give tenants more options.
“A big question for 2015 is whether that new rental supply will be enough to keep rents in check,” Kolko said. “Right now, it’s a race between strong demand from millennials and more supply from the apartment construction boom.”

Inland Empire strikes back
The dynamics that pushed home buyers to the Inland Empire in droves last decade are developing once more.
The median home price in Riverside County last month was $305,000 — one-third lower than the $455,000 in Los Angeles County and barely half the $585,000 found in Orange County. That bodes well for points east, said John Husing, an economist who studies the Inland Empire.

“A huge portion of the coastal counties market is priced out of the ability to buy a home,” Husing said. “Those are the facts that have always driven the market inland before.”
So far this cycle, that hasn’t happened much. Builders have been slow to develop new subdivisions in the bust-scarred Inland Empire. Tougher post-crash lending restrictions have crimped buyers there.
Now, though, building permits are ticking upward. A few big projects are getting underway, especially along I-15 in western Riverside County.

Husing is optimistic that lower down-payment requirements being rolled out by Fannie Mae and Freddie Mac will help more buyers. As prices keep climbing on the coast, he predicts, more and more people will swallow the commute. It just might take them some time.
“2015 will be better than ’14, which was better than ’13,” Husing said. “By 2016 or 2017, I think we’re more likely to see a market that we think of as normal

Dear Joni-

Thank you so much for your service in selling out Parents home in Encino.

As you know, I am managing 20 apartment buildings which is a full time job and more. The way you jumped in to handle the inspections, repairman, appraiser and staging was way beyond the call of duty and saved me countless hours of having to coordinate all that myself

 

 

 

.

 

 

With all the buying and selling of property that I do for a living, I am quite shocked you were not only able to get the coordination of the lender and buyer, but were actually able to close on time with both parties not ready to shoot each other.

My parents would be most pleased that you were able to find such a wonderful family to take over our family home.

 

Should you need to reach me, please contact me at any time on my cell phone listed above.
Thank you,
Gary Gillman & Nancy Manning

November 2014 Month End Economic Update

 

Another record breaking month for US stocks  – The US stock markets posted their sixth straight week of gains with new highs. Dropping oil prices were the source of big news this week, and month. Lower energy prices are causing low inflation. Many experts predict that inflation will remain extremely tame for a long period of time partly as a result of OPEC’s decision to keep oil production at its current high level. The Dow Jones Industrial Average closed the week at 17,828.24 above last weeks close of 17,810.06 , and  up from the October 31 close of 17,390.52. The S&P 500 closed Friday at 2057.56 below last Friday’s close of 2063.50, and up from October 31’s close of 2018.05. The NASDAQ closed at 4791.63 above last weeks close of 4712.97, and above last month’s close of 4630.74.

 

Consumer Price Index- The Bureau of Labor Statics reported that prices remained flat in October. The year over year CPI increase showed the inflation rate at 1.7%, well below the Federal Reserve’s target rate for a healthy economy. The Fed released its minutes on November 19 from its October meeting. In the minutes it cautioned of “evidence of a possible downward shift in long term inflation expectations.”

 

Treasury Bond Rates – The 10 year Treasury bond closed the week at 2.18% below last week’s 2.31%. It began the month at 2.36%. The 30 year treasury yield was 2.89% Friday, down from last week’s 3.02% and well below 3.07% at the start of November.

 

Low Inflation – The US Consumer Price Index showed the year over year inflation rate at just 1.7%, well below the Federal Reserve’s target rate. Europe and Asia are also experiencing very low inflation. This is causing worldwide rates to drop. Our rates are well below comparable time period securities of other countries, holding rates low and causing treasuries with longer terms to drop in rate. These directly affect mortgage rates. Much of this low inflation is due to dropping energy costs as oil prices have plummeted.

 

Oil prices- In the past few months the price of a barrel of oil has dropped from over $100 per barrel to under $70 per barrel. The cost at the pump has dropped on average 88 cents a gallon since July to a US average of $2.82. California prices are a little higher. This brings gas prices to the lowest levels since 2009.

 

Mortgage Rates – The Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average for the week was 3.97%. The 15 year fixed was 3.17%.

 

US jobs – In October employers added 214,000 jobs and the unemployment rate was 5.8%. The November figures will be released at the end of next week.

 

California jobs – California gained 41,500 non-farm jobs in October. The California unemployment rate remained unchanged at 7.3%. November figures will be released in the 3^rd week of December.

 

California Association of Realtors –   The LA region had a median price of $477,000, down 1.6% below September’s $486,030 and up 6.8% from the $447,130 one year ago. There was a 3.3 month supply in October 2013. It must be noted that CAR figures do not include sales that were not reported to a MLS system. CAR figures for November will be out around the 3^rd week of December.

 

Pending home sales were up in October – CAR reported their Pending Home Sale Index last week. Pending home sales in October were up 2% from September. This was the second straight month of rising pending sales which is an indicator that the November sales figures will show an increase as these transactions close.  

 

Consumer Confidence – Consumer confidence rose to a 7 year high according to the Thomson Reuters/University of Michigan index. This was fueled by dropping gas prices, increases in employment, and rising stock prices. It also led to increases in projections in the holiday retail sales expectations.

 

New home sales rise- The Commerce Department reported that US new home sales in October rose 0.7% from September.

 

I have seen a good pickup in activity. It seems that the real estate market has picked up at a time of year that it usually slows down. Inventory levels have dropped after increasing throughout the year. This is causing more multiple offers. We are also seeing homes that sat for a while beginning to sell. Some with multiple offers after not seeing an offer for several weeks! I would not be surprised to see prices surge in the near future! I am sure that lower interest rates are having an impact. It now looks like rates may remain low for longer than expected. Every expert had expected them to rise. Now that gas prices have plummeted and inflation has been so tame the expectations are for rates to remain low!

 

I hope you are having a Happy Thanksgiving Weekend!

 

Syd

 

 

The first annual Thanksgiving food drive was done by RODEO REALTY’s finest, Brandon Kramer, Jim Wagner and Ryan Trefry. These altruistic agents gathered in their home communities of Lake Balboa and Sherman Oaks to collect non perishable dry foods, cereal, pasta and canned treats for the upcoming holiday season. These areas have over 1,500 homes and belong to the greater Los Angeles area. Over 90 plus households and families helped aid in each community and contributed over 800 pounds of food!

 

They received positive feedback from all the neighbors regarding RODEO REALTY and their ability to reach out to those less fortunate this coming holiday season. They partnered with the Regional Los Angeles Food Bank in Downtown, Los Angeles on Saturday, November 15^th. Gelson’s Super Market donated brown grocery bags which were used to collect all food along with coupons and discounts for turkeys for this upcoming Thanksgiving. These were handed out to several of the families who participated in the food drive and contributed in this charitable endeavor. The community members who participated were very impressed with the organization of the event, work of RODEO REALTY’s agents and giving back to the community.

 

They hope to continue the act of giving this holiday season and in the future. They will be providing several boxes to RODEO REALTY offices to keep in the reception area.  Please feel free to contact Ryan Trefry for more information on how to give back- (818) 425-3234. The Regional Los Angeles Food Bank in Downtown, Los Angeles also encourages help for the hungry with a virtual drive registry, monthly giving and donations of cars, boats or RV’s this holiday season. Their mission is to “mobilize resources to fight hunger in our community.”  Over 97% of all contributions go directly to families that struggle this holiday season. Other great giving back activities in Los Angeles include; Midnight Mission,Union Station Homeless Services, One Voice, SOVA Community Food and Resource Program and Hope of the Valley Rescue Mission. RODEO REALTY commends Ryan Trefy, Jim Wagner and Brandon Kramer for assisting the community this holiday season and benefiting the homes of many.