Carl Clark – Page 6 – www.BeachChatter.com

Spinach & Strawberry Salad

The traditional dinner salad is most often an unexciting food. Ditch that classic iceberg lettuce studded with cherry tomatoes in favor of this taste treat. These flavors will burst in your mouth from the first bite to the last. Whether you serve it in the heat of summer, or as a year-round starter, this dish is a treat for the eyes and the taste buds.

Serves 6

Ingredients

2 (6-oz.) bags baby spinach
1 (16-oz.) container strawberries, quartered
1 (4-oz.) package crumbled blue cheese, feta cheese, or goat cheese
1/4 medium red onion, thinly sliced
1/2 cup sliced toasted almonds or halved candied pecans
Balsamic vinaigrette (recipe follows or use bottled vinaigrette)*

Directions

Toss all the salad ingredients together and drizzle with dressing.

*Easy Balsamic Vinaigrette

1/4 cup balsamic vinegar
1 tsp prepared mustard
1/2 tsp salt
1/2 tsp freshly ground black pepper
3/4 cup olive oil

Directions

Place the vinegar and seasonings in a bowl and whisk to combine. Slowly add the olive oil and whisk until the dressing is emulsified.

Some surprises in South Bay Real Estate, 2019 vs 2020

It’s October 1, so it’s time to look at the changes in the local real estate market, both for the month and for the third quarter.

2020 has been a year for making and breaking records. Most of them have been records we truly didn’t want to even consider, like the number of pandemic deaths, and the number of unemployed. Until now, we had little reason to believe the real estate market might bring better news.

Through the first half of the year, the number of homes available on the market just kept climbing. At the same time, the number of homes selling remained stubbornly flat. Despite interest rates hovering just above zero, it seemed buyers had other things on their mind. Then in July the number of closed sales jumped 41%, while available inventory came up a tiny 7%.

Sales continued to climb in August and September, though nothing as dramatic as July. Overall, for the third quarter, unit sales were nearly double those of both, the first quarter of the year (+79%) and the second quarter (+76%).

For the first time this year, the inventory has dropped appreciably.

Comparing to last year, that huge spike in sales brought September in at 47% more sales than in September of 2019. On a quarter over quarter basis, Sales are up 23% over 2019. The red bars in the “Sold vs Available” chart above shows the climbing number of sales, with the blue bars showing the sudden drop of available inventory in September.

Not only were the number of sales climbing, but prices have continued to escalate year over year. September of 2020 showed median prices had increased 23% over September of 2019. Median prices rose 15% for the third quarter of 2020 versus the same time period in 2019.

Combined, the impact of the increased sales and increased prices brought the total dollar value of sales for September 2020 up 89% over that of September 2019. Quarter to quarter, the annual increase was 40%.

“South Bay residential sales for the third quarter of 2020 exceeded two billion dollars.”

How do we explain record sales and prices during a pandemic, with sky-high unemployment, and the threat of a recession coming from behind? It’ll be weeks before the pundits have sorted it all out. In the meantime, here are a couple of possible explanations.

Third quarter sales range from $285K to $10.5, so we know some of these have been entry level homes. Folks who have been priced out of the area, and because of the lower interest rate could suddenly qualify to purchase here, have jumped at it. Sales under $1M comprise 42% of the total.

At the opposite end, sales over $3M made up 9%. Once again, the interest rate makes it possible to leverage a mansion at a relatively affordable monthly payment. A lot has been said about the future worth of property compared to today’s dollar. Investing at a reduced interest rate usually contributes to a sizable profit at some future sale date.

In between, from $1M to $3M, we have 49% of the third quarter sales. That’s roughly the number of people we would expect to sell for one or another of the typical reasons people move. In fact it corresponds nicely with the rate of market activity for the first half of the year.

In summary, if the thought of making a move in the near future has crossed your mind, this may be the best moment to do so. Call and we’ll put together some numbers specific to your property and your situation. No problem–no obligation!

Photo by Richard Horne at unsplash.com.

August 2020 Sales Analysis

It’s September already! That means it’s time to look at a summary of real estate activity for LA’s South Bay neighborhoods over the past month. Our data is ultra-local which means you get to see the market conditions almost immediately after the month ends.

This summer we’ve been enjoying a relatively busy real estate market with a big jump in sales and mixed results in prices. August 2020 weighed in with the median price nearly 6.8% higher than August of 2019. However, it wasn’t enough to beat the median for this July. August median prices were down by 1.8% from last month. In the first eight months of the year, we’ve seen two months where the median increased, versus six months when it decreased.

Median Prices	August	July
2020	$1.10M	$1.12M
2019	$1.03M	—

We saw 450 homes sold in August, up by 10% from July of this year. Compared to August of 2019, sales this year were up 13%. July and August were exceptional sales months compared to January through June. Both months had sales in excess of 400 units, while the first six months of the year were less than 300. March of 2020 made it all the way to 291 sales despite pandemic activity kicking into high gear that month.

Closed Sales	August	July
2020	450	408
2019	398	—

July & August sales were up nearly double the sales numbers from the first half of the year. Why the jump in summer? Anecdotally, we’re hearing interest rates being at or below 3% brought those buyers not financially impacted by Covid-19 to the table. That huge savings in interest helped drive prices, as well. To buy now and take advantage of the interest rates, many buyers have been willing to offer slightly above asking price, to lock the deal in.

August brought a significant increase in the number of homes available for sale. At the end of August total available counts stood at 3.68 months of inventory, compared to 2.17 months at the end of July. In raw numbers, that’s an 18% increase in homes available for sale. More sellers put their homes on the market, and there weren’t enough buyers to absorb the increase. As Covid-19 moves to a back burner, we expect the inventory to return to higher numbers comparable to the beginning of the year.

A rising inventory indicates downward pressure on prices.

With subsidies and protective government programs closing, we anticipate fewer buyers will be able to purchase. At the same time, we expect the continuing stress will create more defaults and short sales. Forced sales, also known as ‘distress sales’ tend to push prices down.

Combined, a growing inventory and economic stress are precursors of a shift to a buyers’ market. Several noted commentators are predicting a recessionary market lasting through 2021 and possibly into 2022. Like so many things in today’s world, no one is sure of where we’ll end up. But it’s pretty much guaranteed to be different than we had planned.

Photo by Gustavo Zambelli on Unsplash

Tuna Salad

This is more than a tuna salad. This is a meal in a tortilla, a salad on greens to linger over with wine, hors d’oeuvre on chips, or an ultra tasty wrap in a swirl of your favorite cheese!

Albacore as everyone likes it. My general sizing recommendations are: use one if it’s on the large end of the size spectrum, use two if it’s on the small end, etc.

12 to 15 ounces (approximately) of cooked, flaked tuna
2-3 stalks of celery, in a fine dice
1-2 carrots, shredded
1-2 pickled cucumbers (dill pickles are my favorite)
red pepper flakes (optional)
1 large dollop of Dijon mustard
3-4 large dollops of mayonnaise
1 teaspoon rubbed sage
1 teaspoon dried dill
salt and pepper to taste.

Process

Let’s start by saying that I really don’t measure anything. If it looks like enough, it’s enough. If it doesn’t, add more. By the same token, if there’s something in the refrigerator that looks like it belongs, put it in! This is one of those “family” recipes where the cook adds and subtracts “to taste.”

First step is to get out a large mixing bowl, a cutting board and your favorite knife.

Flake the tuna into the bowl. I generally use canned albacore tuna, solid, white, in water. Albacore is mild and suits most taste buds. Actually, any tuna will do. Fluffed up, it should be in the neighborhood of 1.5 to 2 cups of tuna.

Wash the celery and carrots. I never bother to peel, but feel free to do so, if you like. Cut both lengthwise, into long, thin slivers. Then turn sideways and cut into a fine dice, approximately ¼ inch square, or less. Add to the bowl. There is a tool, photo here, that will do a very creditable job of creating long, skinny slivers without using a knife. Personally, I love my chef’s knife! I even use it for things it wasn’t designed to do.

Moving on, rinse the pickled cucumber. Using the same process, cut it into a small dice, and add to the bowl. If you’re pressed for time, or prefer the taste, there are commercially available pickle relishes, or spreads, that can serve the same purpose. I think Trader Joe still carries one called “sweet pickle relish” that serves nicely and saves a lot of time.

Sprinkle the sage, dill, salt and pepper over the top. At first, it’ll look like too much, but once mixed, it’ll be fine.

Now, add a dollop (I use a tablespoon, heaped to the point of dripping off) of mustard and most of the mayonnaise. Mix thoroughly. The mixture should hold together nicely, without being crumbly, or drippy. If I plan to use it on bread, I like it a bit more moist. If it’s added to lettuce, more dry. Add more mayonnaise as required to reach a suitable consistency.

For a tasty tuna sandwich, try preparing it open face, covered with a thick layer of tuna salad. Top with a generous amount of shredded or sliced cheddar, and toast until cheese is melted. If your taste buds lean to the spicy side, try a liberal sprinkle of red chile flakes before the toaster.

Be expressive with this dish! Use it as an appetizer, with a dollop of tuna on a tortilla chip and a dusting of chopped cilantro. Or top a plate of mixed greens with three good sized scoops of tuna salad and add the fruit of your choice.

Though tradition calls for an earthy white wine, I’ve often paired a spicy tuna mix with a strong red and had a wonderful repast. Enjoy your meal!

55+ Options in South Bay

This is not intended to be an exhaustive list of 55+ housing choices, but a reference point for the more commonly known, age-restricted accommodations available in the Los Angeles South Bay. We welcome your input, but cannot guarantee inclusion.

Condominiums

Breakwater Village, 2750 Artesia Blvd, Redondo Beach, CA 90278
Courtyard Villas Estates, 3970 Sepulveda Blvd, Torrance, CA 90505
Gables, 3550 Torrance Blvd, Torrance, CA 90503
Meridian, 2742 Cabrillo Ave, Torrance, CA 90501
Montecito, 2001 Artesia Blvd, Redondo Beach, CA 90278
New Horizons, 22603-23047 Maple Ave and 22601-23071 Nadine Circle, Torrance, CA 90505
Pacific Village, 3120 Pacific Blvd, Torrance, CA 90505
Parkview Court, 2367 Jefferson St, Torrance, CA 90501
Rolling Hills Villas, 901 Deep Valley Dr, Rolling Hills Estates, CA 90274
Sol y Mar, 5601 Crestridge Road, Rancho Palos Verdes, CA 90275
Sunset Gardens, 24410 Crenshaw Blvd, Torrance, CA 90505
Tradewinds, 2605 Sepulveda Blvd, Torrance, CA 90505
Village Court, 21345 Hawthorne Blvd, Torrance, CA 90503

Independent/Assisted Living/Memory Care Facilities

Belmont Village, 5701 Crestridge Road, Rancho Palos Verdes, CA 90275; 310-377-9977
Brookdale Senior Living, 5481 W Torrance Blvd, Torrance, CA 90503; 310-543-1174
Canterbury, 5801 West Crestridge Road, Rancho Palos Verdes, CA 90275; (877) 727-3213
Clearwater at South Bay, 3210 Sepulveda Blvd,Torrance, CA 90505; 424-250-8492; (previously Wellbrook)
Kensington, 320 Knob Hill Ave, Redondo Beach, 90277; (424) 210-8041
Manhattan Village Senior Villas, 1300 Parkview Ave, Manhattan Beach, CA 90266; (310) 546-4062
Silverado Senior Living, 514 N. Prospect Avenue, Redondo Beach, CA 90277; (310) 896-3100
Sunrise of Hermosa Beach, 1837 Pacific Coast Hwy Hermosa Beach CA 90254; 310-937-0959
Sunrise of Palos Verdes, 25535 Hawthorne Blvd, Torrance, CA 90505; 408-215-9608

Independent Living Only

Casa De Los Amigos, 123 S Catalina Ave, Redondo Beach, CA 90277; 310 376 3457
Heritage Pointe Senior Apartments, 1801 Aviation Way, Redondo Beach, CA 90278; (844) 220-4169
Seasons at Redondo Beach, 109 S Francisca Ave, Redondo Beach, CA 90277; (310) 374-6664

Mobile Home Parks

Skyline, 2550 Pacific Coast Hwy, Torrance
South Bay Estates, 18801 Hawthorne Blvd, Torrance
South Shores, 2275 25th St, San Pedro

Recent South Redondo Sales

We monitor local South Bay real estate activity daily. The data is charted to show the direction of the market in terms of tendency to favor Sellers versus Buyers. Ideal market conditions are in the the center band where both have roughly equal market strength. As you can see, South Bay activity was right down the middle for July. The daily market trend has been more or less level since the beginning of the year, with only a slight upward movement each month.

Cumulatively, since the beginning of the year, the market has shifted from almost being a Buyers’ Market to being almost dead center on the chart. What that means in terms of value can be seen by looking at the most recent three months sales. The list below represents only houses, and only those sold in two neighborhoods. If you’re interested in real time information about homes like yours, or near yours, call and ask about our Neighborhood Notice service.

Image of list of South Redondo Sales from May through June of 2020. — These sales are for a select period and a select area. If you have interest in similar data for your neighborhood, we can provide you with our instant Neighborhood Notice. Call us for details.

2020 — The First Six Months in South Bay

Faced with the Covid-19 pandemic, a particularly contentious national election, and weeks of nation-wide civil rights protests, It looked like there was no way 2020 could ever be called a normal year. Then we learned about a growing recession. So halfway through the year, what do we see?

Prices – Up and Down

The South Bay is a nice place to live. Here, the real estate market is frequently shielded from the vagaries of the nation at large. And it’s no different this year. In this chart we compare the average sales prices during the first six months of 2019 versus 2020, by zip code. In nearly all cases the average property price is still going up. Torrance was very nearly flat and 90274 actually dropped slightly. (If your zip code or city is not included here, and you would like statistics, give us a call.)

Volume – Mostly down

With prices are still climbing, albeit slower than they were, what about sales volume. Here we see some negative impact. Hermosa Beach is the only local city not experiencing a drop off in sales. In Manhattan Beach, for example, sales are off by 38% for the first six months of this year. South Redondo is off by 35%. Torrance and the peninsula cities are all down by roughly 5-10% from the number of homes sold in the same period of 2019.

My Crystal Ball

Our Market Trend chart is designed to show whether market conditions generally favorable for sellers or buyers. The year started as a buyers’ market and moved even further toward buyers in February. Since then we have been seeing a slow, but steady movement toward a sellers’ market. Things could change dramatically before the year is out, but right now the red trend line indicates the probability the South Bay will be in a sellers’ market before the end of 2020.

$ Money Matters $

The Federal Reserve Bank (the Fed) moved to lower the federal funds rate by a half-point to a range of 1% to 1.25% March 3 in response to the “evolving risks” of the COVID-19 corona virus outbreak. The Fed doesn’t directly impact housing loans, but they generally move in tandem.

Mortgage rates in the U.S. roughly track the yield on the 10-year Treasury note which has been dropping as the corona virus epidemic expanded. As the yield on the 10-year note drops, there is typically a drop in mortgage interest rates.

Yesterday, purchasers and refinance borrowers were looking at rates of about 3.7%. Today that’s about 3.5%. Some lenders are forecasting that rates could drop as low as 3% before COVID-19 is controlled.

Some analysts report that the stock market anticipates a least a quarter-point rate cut at the Fed’s meeting in April.

Around the world some other central banks have dropped rates as well. Since consumer spending is a large measure of our economys, there is reason to press for more cuts.

In the words of the President, @realDonaldTrump, “The Federal Reserve is cutting but … more easing and cutting!”

Photo by Vladimir Solomyani on Unsplash

Salad as the Main Course

My favorite meal is a fresh salad, transformed to a main course with the addition of a grilled, or roasted, or sauteed piece of meat or seafood. This recipe is a more sophisticated version, with colorful and tasty endive taking the place of standard greens.

Salmon is a great go-to for this dish. If you’re not fond of the taste, or it isn’t readily available, there are several delicious options. Mahi-mahi or rockfish work well, as will chicken breast, or even scallops. The goal is the freshness of the salad combined with the hearty flavor of your meat, poultry or seafood.

Ingredients

3 heads red Belgian endive
3 heads Belgian endive
2 crisp and juicy apples
Juice of 1/2 Meyer lemon
2 cups (2-3 oz.) of frisée and/or arugula greens, torn to bite-size
1/2 cup walnut halves or pieces, toasted
6 tbsp. white vinaigrette dressing (recipe below)
1 tsp. finely cut chives
4 fillets of a firm fish, e.g., salmon, mahi mahi, or rockfish

White vinaigrette dressing
1/4 cup white balsamic vinegar or fresh lemon juice
1 tbsp Dijon mustard
1/4 shallot, peeled and minced
2 tsp. honey (optional)
1 pinch finely chopped garlic
3/4 cup extra virgin olive oil
Salt and pepper, to taste

Instructions

Salad
Wash and dry endive and apples. Cut endives lengthwise into julienne strips. Slice apples and cut into julienne strips. (If made in advance, you can preserve the color of the apple with a spritz of lemon juice.) Tear the frisée and/or arugula greens into bite-size pieces. Set aside.

White balsamic vinaigrette dressing
In a bowl or large measuring cup, whisk together all the vinaigrette ingredients and set aside.

Salmon: Heat olive oil in a sauté pan over medium-high heat. Score skin and season fish with salt and pepper. Place skin-side down in hot oil. Cook until skin is crispy, shaking pan to prevent fish from sticking. Turn fish over and continue cooking until medium rare. Remove and keep warm. (Alternatively, salmon may be grilled or baked.)

In a large bowl, combine endives, apples, greens, walnuts and vinaigrette, tossing gently. Season to taste and center on plate. Top the salad serving with one fillet each and sprinkle with chopped chives.

Photo by Jason Briscoe on Unsplash

Pundit Quotes on the 2020 Real Estate Market

Usually this time of year I stick my neck out and make some forecasts about the local market in the coming year. What I’ve discovered is my quotes are boring by comparison to those made by the pundits. So, this year I decided to publish some of the more exciting projections by people who claim to know what’s going on.

Let’s set the stage by noting that the real estate market has been notoriously stable for the past few years. Stable, and on a very slight decline. The charts have shown volume and prices all within the normal range, with tiny losses increasing as time goes on. Several pundits have pointed to these stats and projected a recession on the horizon.

At the same time, as I point out in another article, this is a presidential election year. Can anyone remember an election year when the economy failed? It doesn’t happen very often. Let’s look at some quotes.

“Were we to have a recession, I’d argue housing would provide a cushion because the shortage of supply at the entry-level suggests builders could actually continue to build.”
Doug Duncan, Fannie Mae’s chief economist

Well now, I know quite a few builders and developers. But, I don’t know any who will start a project when prices start dropping. As a theory it sounds great, but I think it needs further study.

“While the housing crisis is still fresh on the minds of many, and was the catalyst of the Great Recession, the U.S. housing market has weathered all other recessions since 1980.”
Odeta Kushi, deputy chief economist at First American

Kushi says, “…since 1980.” So he had to look back 40 years to find good news?!?!

“Housing people are the most optimistic people, but it takes a lot of optimism to buy a house and tie up your income for 30 years.”
Nela Richardson, investment strategist at Edward Jones.

He’s right, at least as far as purchasers would go. Most tenants wouldn’t be very optimistic after renting for 30 years.

“The vast majority of housing economists project that mortgage rates will remain below 4% in 2020.”
Jacob Passy, personal-finance reporter for MarketWatch

Ha! Like we’re going to see the Fed argue with President Trump! He tweeted and they gave. It’s an election year!

“In the Los Angeles metropolitan area (which includes Orange County), the share of homes that sold for more than the listed price dropped from nearly 35 percent in 2018 to 28 percent in 2019.”
Elijah Chiland, reporter for Curbed, Los Angeles

There is a large difference between our little corner of the world here in 90277 and Los Angeles County in general, and it extends to the LA Metro and to California and to the nation as a whole. In 2019 only 17% of homes sold in 90277 sold for over asking. It is different here. Many brokers/agents have found that the statistics generated by state and national pundits are simply not applicable in the Beach Cities.

Here’s CAR betting on a positive market for the year! It’s an election year, and I can see this happening!

2019 vs 2020 in 90277

Last year saw property prices in 90277 drift down a little. Looking at a five year picture of shifting prices we see that from 2014 to 2018 there was a clear upward trajectory. By the end of 2019 the average price had dropped and the median price followed.

The final numbers for 2019 show the decline continuing and even growing. The median was only down .4%, but the average was down 7.1%, an even larger drop than projected for the fourth quarter of the year.

On a more positive note, 2019 showed a 16% increase in sales volume for 90277.

The downward shift in prices and upward trend in volume of sales are consistent with the overall greater South Bay area. The upper end of the local market is showing signs of having reached an apex in prices, which has stimulated more listings and more sales.

At the same time, the moderate and lower priced neighborhoods have maintained price increases. Prices of lower priced homes are still climbing, but at a slower rate. Sales on the other hand, declined from 2018, or were unchanged.

So what’s the outlook for 2020? To get an early look, we compared January 2019 to January 2020. The statistics show both prices and sales climbing. Sales for the month were 22% greater than January last year. Average prices increased by 14.7%, while median prices were up 5.9%.

All right, so things are looking pretty good, at least in the Beach Cities/South Bay area. But, let’s face it. This is an election year. The status of everything is subject to change in mere seconds, based on the latest poll/post/tweet hitting the internet. There’s not much we can do about the politics, but if you’re looking for a quick update on the real estate market, give us a call. Better yet, take out a free subscription to BeachChatter and we’ll send you a note to keep you abreast of the latest news. There should be a subscription form in the side column. And, we don’t sell your data!

Upgrade Your Home for Senior Living Convenience

As if there has ever been a doubt, surveys clearly demonstrate that those of us in the Baby Boomer generation want to maintain our independence and remain in our family homes as long as possible. The older we get, the more adamantly we pursue that goal. Along with us getting older, our homes are also aging. Things we loved about the house when we were younger are not so lovable now that we’re less agile and adaptable than we were those many years ago.

That upstairs kitchen, with the tremendous views–getting up those stairs becomes a dreaded task when joints become creaky and complaining. Likewise, getting down on hands and knees to reach into the back of a corner cabinet can make one curse the arthritis creeping in on us.

Photo by AndriyKo Podilnyk on Unsplash

In some cases the solution is medical. Doctors can literally rebuild a body today, replacing old, failing parts with new technological wonders. On a more practical level, rebuilding our homes to meet our changing needs can be easier and less expensive. Depending on the structure and your needs, you may be able to adapt the family home to your new lifestyle demands more readily than you can change residences.

In our experience, inability to climb stairs is the most expensive and challenging difficulty to remedy. In multi-story homes, options include installing an elevator or adding a chair lift, while in single story homes, it may be as simple as adding a ramp at the exterior entrances.

Elevators may add up to tens of thousands of dollars, but don’t let that deter you from investigating. Sometimes the architect has designed in a space that’s just waiting to be used. Besides, it’s probably less expensive than moving the kitchen downstairs. Though not as aesthetically appealing, a chair lift can be a relatively inexpensive solution, costing only a few thousand dollars.

In terms of cost and difficulty, bathrooms and kitchens come right behind stairs. The key problems are usually related to getting in and out of bathtubs, and manipulating faucet knobs. Whether the result of declining strength, arthritis, or another aspect of aging, these are literally pains we can avoid.

Walk-in bathtubs are available, but very expensive, and most of us haven’t been in a tub since we were children. The most common solution is a “curbless” shower which eliminates the pain and the trip hazard. Adding a seat to your shower is a minor effort for the contractor and a major plus for you. Any update of your faucets will probably solve the knob issue, since nearly all manufacturers have shifted from knobs to levers to meet the needs of the disabled.

Many of the complaints we have as aging boomers have been addressed by manufacturers of “add-on” or “after market” products. Roll out drawers, pull out shelves, lazy susan corner units and similar tools can be wonderful. For the most part these fixes are inexpensive and easy to install. None of them will make us any younger, but with them we can all feel better about growing older.

Main Photo by Jason Pofahl on Unsplash

Growing Old at Home

You knew someone would conduct a survey asking senior citizens where they would prefer to live as they grow older. I’m sure you also knew the answer before the survey was done. There’s no place like home!

A study by the American Association of Retired Persons (AARP) shows an overwhelming 76% of seniors aged 50+ want to stay in their current home and 77% want to remain in their community as long as possible. Sadly, only 46% expect they’ll be able to stay in their home. Another 13% believe they’ll be able to move to a different residence in the same community.

How strongly do those surveyed feel about staying in their home? Over half wanted it to the extent they were willing to share their home (32%), build an accessory dwelling unit (31%) or join a “village” that provides services to enable aging in place (56%). (We plan to explore “senior villages” in a future article.

“half of the survey respondents indicated they would be
willing to share their home simply for companionship”

In an interesting sidelight, half of the survey respondents indicated they would be willing to share their home simply for companionship. The strength of this psychological need is supported by anecdotal tales we’ve all heard about retirees who move in together for companionship, but remain single for financial reasons. Even more telling is the response of 30% who reported lacking companionship, feeling left out or feeling isolated.

About one third of those surveyed expect their existing home to require major modifications. Most of that group, roughly 25% of the respondents, are not willing or able to make those changes. As a result, they plan on relocating completely to a new area. Moving to a new area can offer a tremendous incentive in that the average price of housing varies dramatically from state to state across the nation.

“less than 25% of seniors are attracted to senior developments”

Some active adult communities, designed for the 55+ cohort, offer pools, gyms, coffee bars, workshops, golf courses and cooking classes. Despite all the amenities, less than 25% of seniors are attracted to senior developments.

In many cases, the problem lies with the lack of social interaction. The AARP concluded “creating a social environment that appeals to everyone is a key part of forming strong, livable communities.” The group cited results showing over 80% of seniors felt it important to socialize with friends and neighbors; engage with both young and old residents; volunteer in the community; and continue formal education.

While we’re looking at the things seniors desire, it’s equally interesting to see what it is they don’t want. On the list of “least important community features” we find that over 75% of the respondents don’t want “Activities specifically geared towards adults with dementia.” Nor are they interested in “Local schools that involve older adults in events and activities,” or “Activities geared specifically towards older adults.” This further reinforces the idea that seniors want to interact with both young and old people.

There are those who say “Children will keep you young.” This survey would suggest a whole lot of us believe that maxim.

Photo by Vidar Nordli-Mathisen on Unsplash

What is the California Department of Aging?

The California Department of Aging (CDA) is practically unheard of. I recently discovered it and knew immediately we would have to publish the information for our Beach Cities seniors. The Department administers programs that serve older adults, adults with disabilities, family caregivers, and residents in long-term care facilities throughout the State. These programs are funded through the federal Older Americans Act, the Older Californians Act, and through the Medi-Cal program.

To get things done, the CDA contracts with the network of Area Agencies on Aging (AAA), which are organized roughly along county lines. The local AAA directly manages services that provide meals; support for family members, and to generally promote healthy aging and community involvement. In this article we’ll focus on meals and family help, both of which are elements of “Aging At Home.”

“Meals On Wheels”

Here in Los Angeles County, seniors are eligible for home delivered meal service if they meet the following basic requirements. (For detail, see http://wdacs.lacounty.gov/ or call them at (213-738-4004.)

Persons 60 years of age or older who are homebound because of illness, incapacity, disability, or are otherwise isolated regardless of income level
Spouses and caregivers of eligible participants if it is beneficial to the participant
Persons with a disability who live at home with a participant

The Home-Delivered Meals Program also provides nutrition education, nutrition risk screening and nutrition counseling.

Being a senior citizen can be very challenging in our society. Even with family care givers, there can be a lot of questions, and a good deal of confusion. High on the priority list is finding ways so family members can help as much as possible.

Many times close relatives would be happy to stay home and help, but a formal job leaves no time to do so. The In-Home Supportive Services (IHSS) program is designed to provide training and income for a person who provides services to family members under the program.

Getting paid to take care of a family member

Are you caring for a senior member of the family? Or, are you a senior caring for a grandchild? Either way, you are performing a valuable service, and one you can be paid for! The California Department of Social Services (CDSS) can help you with qualifying for a paycheck in 90 days or less. The best part–it can be tax free income! The requirements:

Adult family members or other informal caregivers age 18 or older providing care to individuals age 60 or older
Adult family members or other informal caregivers age 18 or older providing care to individuals of any age with Alzheimer’s disease or related disorder with neurologic and organic brain dysfunction
Relatives, not parents, age 55 or older providing care to children under the age of 18
Relatives, including parents, age 55 or older providing care to individuals of any age with a disability

CDA also contracts with agencies that certify approximately 242 Adult Day Health Care Centers participating in the Medi-Cal Community Based Adult Services (CBAS) Program.

So every Californian has the opportunity to enjoy wellness, longevity and quality of life in strong healthy communities, CDA actively works to ensure:
– transportation,
– housing and accessibility
– wellness and nutrition,
– falls and injury prevention,
– dementia care.
For additional information, contact the CDA at https://www.aging.ca.gov/Programs_and_Services/ or you can locate the AAA in your area by selecting your county on the Find Services in My County page of this website.

Photo by CDC on Unsplash

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Planning to Grow Old in the Family Home?

In the course of a week I talk to a lot of people who are over 55 years of age. Most of them live in the home where they raised their family many years ago. And as any real estate agent or broker can tell you, most plan to live out their life right there.

And why not? They’re intimately familiar with the house, and probably with most of the neighbors. In many cases, the house is already paid for, so a mortgage won’t drag down their retirement income. The house may be a little bigger than needed, but that just means it holds more memories–right?

Senior Housing Challenges

Maybe, and maybe not. As we grow older, aging adds new challenges for our bodies. We’re not able to move around as easily, can’t climb stairs like we used to, and we don’t keep up with chores like we used to.

Typically, one of the first things I notice when visiting a 55+ client is the condition of the paint under the eaves of the house. As seniors we’re constantly being admonished to “stay off ladders” or “don’t risk falling and breaking bones.” Needless to say, very few of us get those eaves painted. Often those same physical limitations extend to the gardening tasks we used to love, and to cleaning the gutters of fall leaves.

Aging in place, rather than moving to a less challenging home, will work out well for some seniors, and prove impossible for others. Some people may be able to modify their homes to allow themselves to remain. (See Remodels for Aging in Place in the summer 2019 issue and at https://www.beachchatter.com/2019/09/11/remodels-for-aging-in-place/.)

These changes could include adding: ramps, railings or grab bars; stair lifts; plus additional safety and security features. Making our homes safer as we age is important. It isn’t the whole story, though. We still have to find someone to do the painting, clean the gutters, and make the little fixes we used to do ourselves.

Depending on the need, modifications can be cost prohibitive, and even when they are made, some seniors may still need the assistance of a caregiver. In the end, dollars and cents will weigh heavily on the decision. It may make more sense to downsize, move closer to family members who can help — perhaps into a family member’s casita — or relocate to an active adult community.

Designed for Active Adults

Recent years have seen considerable growth in residences designed and built exclusively for residents who are 55+ years old. Some seniors are still physically capable, but have decided retirement should free them from the mundane chores of adult life. The “active adult” lifestyle afforded by 55+ communities often is the perfect solution.

Imagine suddenly deciding on a romantic weekend out of town and being able to leave immediately. You’re in a secure environment–no need to make special arrangements. Maintenance tasks are all handled for you. You and the neighbors watch out for each other all the time, so just pack and go! That’s the real appeal to 55+ homes–they give you freedom.

In addition to the freedom, planned communities offer opportunities to spend time golfing, woodworking, sculpting etc., with peers who love the same things you do. It could be time in the gym, or lying by the pool. Whatever your favorite things are, there’s a 55+ complex out there to help you enjoy them.

There are trade-offs. Typically a down-sizing senior goes from three or more bedrooms, in 2500+ square feet, to a two bedroom unit with less than 1200 square feet. That means a lot of furnishings, knick-knacks and memorabilia get sorted and distributed. It’s work, but handled appropriately can be a valuable experience in turning the familial reins over to the upcoming generation. Writing these words, I have a mental picture of the happiness when my wife gifts her grandmother’s jewelry to our granddaughter. It certainly outshines putting family heirlooms in a will to be routinely read out with no hugs and tears of joy.

Senior Renters Face a Shortage

Seniors who own their homes have the option of modifying their homes or selling and downsizing. But senior renters, living on a fixed income, are much more vulnerable to the rent increases that are occurring more frequently across California.

In a growing trend across the nation, investors have been buying up rentals in bulk and raising the rent and/or sending eviction notices to senior tenants. (See article in the Los Angeles Times.) Tenants who try to fight the increases face lengthy and costly legal battles that don’t always turn out in their favor. The result?

In Los Angeles, 26% of no-fault evictions happen to residents who are 62 years or older. In contrast, roughly 13% of the city’s units are occupied by seniors. Thus, the eviction rate for seniors in Los Angeles is almost twice as large as it is for other age groups.

No-fault evictions usually occur when a renter is living with a month-to-month lease. Some seniors are unaware they have this type of lease, as when their annual lease ends the landlord may choose to continue the lease on a month-to-month basis. Then, when the landlord decides to re-list the unit at a higher rate, they may simply evict the long-term tenant with very little notice.

The number of homeless seniors is rising at an alarming rate. In Los Angeles, the number of homeless seniors rose 22% in 2018, leaving 4,800 seniors on the streets. Experts predict the number could rise to 30,000 by 2030.

Decisions, Decisions, Decisions

In summary, the three overarching choices for seniors considering a change in housing are: remain in the family home, sell and move to an active adult community, or try to secure stable rental housing. There are lots of variations on each theme. For example, one could rent out the family home to provide an income to cover the cost of a senior rental property.

Regardless of the route you take, the California Department of Aging offers a good deal of assistance for seniors facing housing changes. That department provides more detail about the types of senior housing and assistance here.

For those of you who are considering making a change in where you live, we would be happy to sit with you and find answers for any questions you may have.

Bœuf a la Bourguignon

First, how does one pronounce that impossible looking name? “Bœuf,” French for “beef,” sounds like a cross between “bif” and “buff.” Say it quickly and you’ll be close enough. “Bourguignon” is bu̇r-gēn-ˈyȯn. Just remember that the letters “g-n” are pronounced in French as though they were “n-y.”

But, you don’t need to pronounce it to love it. This is the dish Julia Child described as”…certainly one of the most delicious beef dishes concocted by man.” This version is considerably simpler than that in Julia’s landmark book, “Mastering the Art of French Cooking.”

Remember to use a good wine—a bad wine doesn’t improve with cooking.

This recipe can be adapted for a slow-cooker. Before loading up the pot, be sure to brown the ingredients as noted here. All ingredients can be added at the beginning except the mushrooms, which should be added at the end.

Ingredients

3 tablespoons olive oil
3 pounds boneless beef rump roast, cut into 1-inch pieces
12 ounces button mushrooms (trimmed), halved or quartered if large
Coarse salt and ground pepper
5 strips bacon, cut into 1/2-inch pieces
1 white onion, coarsely chopped
1 tablespoon tomato paste
2 tablespoons all-purpose flour
3 cups dry red wine
2 cups beef stock
2 bay leaves
4 garlic cloves, smashed and peeled
4 carrots, peeled and cut into 1-inch pieces
10 ounces pearl onions, peeled
1 tablespoon butter, cut into pieces
2 tablespoons fresh parsley, chopped (optional)

Process

Preheat oven to 350 degrees.
In a large Dutch oven or oven-safe pot with a tight fitting lid, heat 2 tablespoons oil over medium-high. Add mushrooms and pearl onions. Cook until browned, about 10 minutes, then set aside.
Season beef generously with salt and pepper and add to pot. In batches, brown beef on all sides, 2 to 3 minutes per batch (adding up to 1 tablespoon oil per batch, if needed); transfer to plate.
Pour off all but 1 tablespoon fat from pot. Add bacon and chopped onion. Cook over medium heat until brown, about 5 minutes.
Add tomato paste; cook, stirring, for about 30 seconds.
Add flour and cook, stirring, 30 seconds.
Return beef to pot; add wine, broth, bay leaf, and garlic. Bring to a boil, cover, and transfer pot to oven; cook 1 1/2 hours.
Add carrots and cook until meat is very tender, 1 to 1 1/2 hours more, adding mushrooms 15 minutes before end of cooking.
Stir butter into stew and serve topped with parsley.

Serve spooned over noodles, rice or mashed potatoes, or even a baguette.

Adapted from Martha Stewart’ version of Julia Child’s quintessential recipe. Wine photo by Lefteris kallergis on Unsplash. Food photo by unknown.

ADUs and Rent Control

We had a call recently asking how California’s new statewide rent cap laws impact homeowners who are supplementing their income by renting out an Accessory Dwelling Unit (ADU). The primary concern was, “Is the owner forced to keep a tenant or pay relocation if they decide to quit renting?”

The question stems from what is called the “just cause requirements” of the new rent control law. Our client was concerned about a decision to evict the current tenant and allow a grandchild to occupy the ADU while attending school locally. If “just cause” applied, it would require they provide relocation assistance to their current tenant.

Renting a part of your home, whether a single room or an entire “guest cottage” may be excluded from the law.

To answer the question, we reviewed the rent cap legislation with an eye to what terms would control should a homeowner need to evict tenants from an ADU.

Applicability of “just cause” relocation assistance, and the rent cap of 5% plus the local Consumer Price Index (CPI) both rely on the same tests.

The first of those tests is the type of property. Multi-family dwellings, i.e., everything from apartment buildings down to duplexes are included in the scope of the law. SFRs though, are excluded, and most importantly, an SFR with an ADU qualifies as an SFR and may be excluded if the second test is also met.

The second test relates to the owner of the property. The following owner types are always included within the scope of the law:
— A real estate investment trust, as defined in Section 856 of the Internal Revenue Code.
— A corporation.
— A limited liability company in which at least one member is a corporation.

The bottom line is that “mom and pop” operations do not fall under the rent cap or the just cause eviction sections of the new laws. There is a caveat! You must notify your tenants!

At the time the lease is signed, tenants should be provided written notice that the residential real property is exempt from this section using the following statement: “This property is not subject to the rent limits imposed by Section 1947.12 of the Civil Code and is not subject to the just cause requirements of Section 1946.2 of the Civil Code. This property meets the requirements of Sections 1947.12 (c)(5) and 1946.2 (e)(7) of the Civil Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the Internal Revenue Code; (2) a corporation; or (3) a limited liability company in which at least one member is a corporation.”

Here is a link to the legislation in question:
https://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill_id=201920200AB1482

Prices Soften in South Bay

Here we wrap up 2019 and prepare for 2020, with a tumultuous election at hand and threats of an economic slowdown rearing in the local news. Our first thought is to look for a baseline from which to measure all the changes. So we did some research and assembled actual sales data from the last few years here in LA’s South Bay. Let’s walk, quickly, past some history.

Through 2015 nearly all real estate only became more expensive. Regardless of where you were in the country, or what kind of property you were considering, prices were only going one direction–up. Then, in 2016 the real estate world started changing. Our little corner of the the west coast is no exception. While some areas stand out as successes, others are showing signs of stress.

Torrance prices in the selected zip codes were varied, ranging from a low of 0% in 90505 for 2018 up to a high of 10.2% in 90503 for 2017. You read that correctly–Torrance prices have not gone negative yet! North Redondo Beach has also run positive every year, though 2019 looks like it will end with a mere .7% increase for the current year.

**Hermosa Beach** dropped a bit of value last year and is projected to lose again this year.

Manhattan Beach is a star performer, with average sales prices consistently above $2,000,000. Surprisingly, the city with the largest average increases is Hermosa Beach, with a price increase of 27.6% in 2015 and another huge price jump 0f 14% in 2017. Both cities declined in 2018 and 2019. Manhattan Beach was down by -1.7% and -2.6%, respectively. Hermosa Beach dropped by -1.6% and -1.0%, respectively.

**Manhattan Beach** showed exceptionally strong sales only in 2017, with 7 sales on The Strand. In 2018, prices declined slightly, and are projected to decline slightly in 2019.

While Manhattan and Hermosa were making one or two big jumps, south Redondo plugged away with annual increases between 8% and 10% until 2019. Unless something big happens in the final quarter of the year, 90277 will drop by about -6% this year.

After 4 years of increases, **south Redondo Beach** is slated to lose ~6% this year.

San Pedro has turned in a solidly positive set of numbers, too. The 90731 zip code is poised to show a 2.0% increase for 2019, down from a high of 7.5% in 2015. The 90732 zip code has slipped into negative territory with a forecast drop of -1.5% this year. Prior years have been over 8% increases, demonstrating the desirability of those harbor and ocean views.

**San Pedro**‘s 90731 has remained in positive increases to date.

The Palos Verdes Peninsula has proven to be quite a “mixed bag” of ups and downs in average sales prices. Rancho Palos Verdes followed a predictable path of gradual increases up to 6.2% in 2018, with a projected decrease of -2.0% this year. The 90274 zip code was all over the map though. It started with an 8.4% increase in 2015, dropped into negative territory the following year with a -4.7%, then dropped another -.8% in 2017, only to jump up by 8.7% in 2018. We’re currently forecasting a 1.5% increase in those prices for 2019.

If you live in the 90274 zip, and are interested in values, give us a call. We are working on a more detailed analysis of where and why distinct PV neighborhoods are seeing values shift on a differing pace. It’s very possible the age of homes in parts of the 90274 zip has pushed them into a “sweet spot” for upgrade or redevelopment. Alternatively, there could pockets not impacted by the economics of the greater community.

Check your city on the chart above. Are your property values still climbing? Or have they already hit the top and started back down?