Calling all Parrot Heads! Celebrate the music and vibes of – you guessed it! – Jimmy Buffett. Experience a truly authentic Buffett sound with 12 of California’s best musicians.
The Grand Annex will transform into a tropical beach party as Jimmy’s Buffet honors their captain’s timeless legacy. Complete with congas and steel drums, the band will serve up a full catalog of hits, as well as a few surprises. Look forward to a Trop-Rock sensation!
Rudy Rios (guitar/vocals), Bella Gomez (lead vocals), Isaac Sharp (bass), Jack Ghekiere (guitar).
Sudden Strangers, an indie rock band from San Pedro, California, comprises Bella and Rudy on vocals, Jack on drums, and Isaac on bass. United by years of friendship and shared roots in their local community, their music reflects their deep connection and mutual passion. From local shows to larger stages such as the Whisky A Go Go, they have created a fun and youthful environment. Thanks to the best and most supportive community, Sudden Strangers is ready to rock the stage with you all on June 14th.
Teresa James and the Rhythm Tramps coming up this Tuesday! Gonna be a rocking time! This band is grammy nominated and have been touring all over the world and we are lucky to have ’em at the All Pro Songwriters Night, Tuesday, May 21, 2024 from 7-9pm. Playing drums for them will be multi-award winning drummer/producer Tony Braunagel…get there early to get a seat…for more information on Teresa and the Tramps go to https://teresajames.com/home
Could it be that after several years of insanely steep ups and downs in the real estate market, we’re finally starting to see normal sales levels and prices? One could draw that conclusion after looking at the year to date statistics for the first four months of 2024 compared to last year. Instead of crazy double digit increases and decreases the rate of change has slowed to single digits almost everywhere.
The Beach cities have been the exception with a 19% growth in the number of homes sold through April compared to 2023. That compares to an average across the South Bay of 4% growth. That’s a good sign, but sales are still off by about 20% compared to the same period in 2019, the last year of “normal business” prior to the economic turmoil of the pandemic.
Median pricing continues to escalate also, though at a much reduced pace. For the first four months of 2024, year to date median prices increased in the 5%-9% range. This is a considerable drop from price jumps of as much as 29% seen just a few months ago.
Looking back at the historical data shows that when the pandemic first hit median prices were operating on a relatively normal upward path. Monthly gains were modest fractions of a percent. Then the Federal Reserve slashed the interest rates to keep the economy moving, and the median price shot through the ceiling with monthly increases frequently topping 30%.
August of 2022 saw a price peak and median prices have been falling since. There’s a lot of resistance on the part of sellers, of course. But the sales volume remains low by historical standards, and buyers are demanding price cuts to compensate for the higher mortgage interest rates, if nothing else.
Expect to see mixed results over the coming months as prices and interest rates ebb and flow around a fluctuating political scene, both nationally and internationally.
Beach:
Monthly sales volume took an insane 55% leap at the Beach in April, after having fallen 1% in March. Seeing the median price plummet by 13% for the same period helps to explain the shift. It’s an isolated example of the push and pull of prices and interest rates. Buyers will remain constrained in their ability to purchase, either by rates, or by artificially inflated prices, until sellers reach a “need to move” point where they are willing to reduce asking prices.
Year over year sales show a similar response in the comparison to last April—a 31% growth in number of homes sold against a 1% decline in the median price.
Trends are better demonstrated in the year to date statistics. Looking at the first four months of 2024 and comparing to the same period in 2023 shows the sales volume increased by 19% while the median price increased 5%
Making the same comparison between 2019 and 2024 shows a 32% decline in the number of homes sold this year. Median price is sharply higher by 43%.
Harbor:
The Harbor area appears to be stabilizing ahead of the other South Bay areas. April sales volume declined at the Harbor by 4% versus sales in March, while median prices increased 1%. Smaller monthly movement, especially in price, is essential to reduce inflation and put the real estate economy back on a solid footing. It’s hard to argue that inflation is near 2% annually, while real estate prices are escalating at several times that goal.
Clearly there’s still a ways to go considering the April 2024 volume had zero growth compared to last April, and is still 24% below April of 2019. The median price has a similar issue being up 7% over April 2023, while holding at 44% above April of 2019.
Year to date, 2024 versus 2023, the number of home sales is off by 1% and the median price is up 8%. The elephant in the room is the constantly increasing median price, which is pushing up hard against the Fed’s inflation battle. The price keeps going up because the inventory is exceptionally limited. There were 18% fewer homes sold year to date in 2024 than in 2019. The limited selection compared to the pent up demand pushed the median up some more.
Anecdotally, many pundits point to the extremely low interest rates of the pandemic years as a big driver for the low inventory and bidding wars. Home owners who refinanced to rates well below 5% are reluctant to sell those properties and take up new loans at often double the interest rate. Consequently, homes that would have gone on the market are now artificially being held off the market.
Hill:
As usual, home sales on the Palos Verdes peninsula have been all over the map in recent months. The number of homes sold in April climbed 28% compared to March, when it jumped 39% versus February, when sales dropped 14%. The median price started with 0% change in January and has yo-yoed it’s way through the first four months, ending down 3% in April from March.
While monthly sales statistics are often sporadic on the Hill, comparing April this year to the same month last year, shows a 28% increase in the number of sales and a corresponding 3% increase in the median price.
Year to date numbers for Palos Verdes were more mundane, with the number of sales for the first four months up 5%. In the same time frame, median prices were up by 9%.
Compared to year to date 2019, PV sales volume was down 9% while prices were up 42%.
Inland:
Business in the Inland cities looks very much like business on the Peninsula right now. Month over month sales volume is growing at 8%—that’s positive because the market needs more inventory! At the same time monthly median prices are dropping by 5%—also positive because interest rates are not going back down to the record-breaking levels of the pandemic! Many of the transactions in the Inland area are entry level buyers embarking on their first home purchase. High prices and steep interest rates work against success for both sellers and buyers in that market.
Year over year sales volume increased at 34%, the kind of activity needed to stabilize the local market. Even with that increase in business, the median price pushed upward by 4%, double the Fed target.
Year to date sales volume is up 9% and median price is up 6%.
Wrapping it Up
It’s going to take some juggling to get more sellers onto the marketplace. And it’s going to require coordination with having able buyers there at the same time. Pundits are betting the Fed will engage in “brake-tapping” until after the Federal election. In the months just before the election interest rates will drop enough to encourage sellers to trade up, and allow buyers to qualify for financing. Those steps would enhance the increasing inventory being seen now. Then in the new year the brakes will be applied again to prevent inflation in the spring buying season. Of course, the outcome of the election promises to influence the market under any circumstance.
Beach=Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo Harbor=Carson, Long Beach, San Pedro, Wilmington, Harbor City PV Hill=Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates Inland=Torrance, Lomita, Gardena
When a buyer and an agent enter into an agreement for the agent to represent the buyer in the purchase of a home, that agreement is called a buyer agency agreement. If the agent is not performing per the agreement, the buyer may cancel the agreement by providing written notice to the agent. It is important for the buyer to make sure the right conditions are outlined in the agreement. A buyer agency agreement usually spells out the duties the agent has towards the buyer in finding and closing on a home. The buyer can participate in negotiating the terms of the agreement.
Buyer agency agreements have typical term lengths of 90 days but can be negotiated for any length. A buyer can specify the kind of property being sought so the agent keeps on track during their search. The terms of the agent responsibilities should also include negotiating on behalf of the buyer and making sure the sales transaction successfully closes.
As summer is about to start, you might be thinking about summer vacation. Or, you may be lamenting that you can’t go anywhere this summer. Fortunately, you don’t have to. Transforming your own backyard into a getaway paradise is easier than you think. Not only will it bring the vacation to you, but it could also actually increase the value of your home if you’re looking to sell.
Typically, vacations are all about relaxing and getting away from your everyday reality. If you have a private yard, you can achieve this simply by adding outdoor seating and some plants. This will give it the feel of a private vacation. Of course, choose plants that are easy to take care of, otherwise it won’t feel like a vacation.
If you prefer for your summers to be filled with friends and fun, there are multiple ways to achieve that. Better yet, they’re often upgrades that you can take advantage of at any time, as well as investments in your home’s value in the future. If you like outdoor cooking and dining, consider an outdoor wood oven, paired with low-maintenance seating and hardscaping. If you like games, think about mini bowling or golfing, or maybe a pool table. For those who just like to sit, talk, and relax, a fire pit and ambient lighting could be perfect.
Most buyers never consider purchasing a property that isn’t in a livable condition. And in many cases, there wouldn’t be much benefit to it, since they are planning to live there. But if you think of the purchase as an investment in your future, there could be advantages — that’s why most people who do purchase fixer-uppers are investors.
It should come as no surprise that fixer-uppers tend to cost less than move-in ready homes of a similar size, lot area, and location. But this isn’t the correct way to look at the investment. What it also means is that you can find properties in need of fixing with a larger lot or better location than a move-in ready home for the same price. Furthermore, the property continues to yield a return on investment as you upgrade, repair, and remodel. You end up with a property that has equal or potentially higher value than similar properties, while paying a fraction of the cost and building equity the entire time. It also might drive up the area’s desirability, further increasing property values overall, including your own.
Financial benefits aren’t the only reason to buy a fixer-upper. Though you won’t get as much freedom as with buying an empty plot of land, fixer-uppers still have a lot of flexibility in what sort of changes you can make. Even major additions and remodels can be done without needing to worry about building an entirely new foundation. If you have the means and the imagination, it’s not too far off from being a newly designed and built home with a much lower initial investment cost. Even if you don’t make too many or too significant of changes, it can be a learning experience if it’s not something you’ve done before — particularly if you choose to do some DIY repairs.
When people think of financing a home, what immediately comes to mind is getting a mortgage loan. For some people, this isn’t an option, or would be difficult to achieve. Fortunately, there are options that don’t involve loans or might make a loan easier to get, some of which you may not be aware of.
One option is a rent-to-own agreement, which can come in two basic forms. It can be a lease option agreement or a lease-purchase agreement. Both allow a prospective buyer to lease a home for a period of time before purchasing it, with a portion of the rent going towards the purchase price, in exchange for a small upfront fee. But there are differences. With a lease option agreement, the tenant has an exclusive right to purchase the home at the end of the lease term, but may also decide not to, forfeiting that right. A lease-purchase agreement creates a legal obligation for the tenant to purchase the home at the end of the lease term. This may sound like it’s strictly a negative, however, a lease-purchase agreement also locks the home price at the time the parties enter the agreement. Given that home prices tend to appreciate over time barring unexpected economic situations, this could mean your purchase price will be lower than market value. In most cases, you will still need a loan at the end of the lease term, but you will be accruing equity in the meantime and likely improving your credit score.
Another option that might allow you to bypass the need for a loan entirely is a shared equity arrangement. A shared equity arrangement is relatively simple, but might require connections. It involves seeking out others, typically investors, to share both financial responsibility as well as equity for a home. This is an excellent option for those who cannot get a loan, but can be a significant disadvantage when it comes to sell the property, since you won’t be getting nearly as much equity from your home’s value appreciating over time.
It’s not uncommon to think of gated community homes as mere status statements. They’re more expensive and more exclusive, both of which sound like they’re tailored toward rich people who want to flaunt their wealth. But there are actually valid reasons that gated communities tend to be more expensive. You don’t have to want to flaunt it to want to live there.
Obviously, you do need to have the money. But if you do, their high price also makes them sound investments in the future. Moreover, the extra money you spend isn’t wasted if you don’t end up selling. Gated communities automatically come with enhanced security measures, amenities, and routine maintenance. Security and amenities are high-value features that you’d need to pay extra for anyway to get elsewhere, while routine maintenance can both save money on repairs and ensure that property values don’t decline due to deferred maintenance. Another thing gated communities offer that doesn’t necessarily have a price tag, but tends to be something people value, is a sense of community while simultaneously retaining privacy.
