The news with today’s May 2009 S&P/Case-Shiller update is that some cities, and Los Angeles’ High Tier, have risen slightly. But see Calculated Risk’s comments about seasonality - we know that prices rise most in the second quarter of the year - before calling a turnaround.

Overall Los Angeles (including Orange County) is still down again, 41.9% from its September 2006 peak, back to July 2003 levels.

By month that’s 0.1% from April, 0.9% from March, 1.4% from February, 2.0% from January, 2.8% from December, 2.5% from November, 2.2% from October, 2.6% from September, 2.5% from August, 1.8% from July, 1.6% from June, 1.4% from May, 1.9% from April, 2.2% from March, 3.6% from February, 4.3% from January, 3.7% from December 2007, 3.6% from November, 3.6% from October, 2.1% from September and 1.3% from August. The national (orange line, their original 10-city Composite) index is down 33.3% from its peak in June 2006.

Besides the original city index they have each city broken into Low, Middle, and High tiers (Under $277,621, $277,621 - $433,758, and Over $433,758; updated for May). Los Angeles’ Low Tier rose the most and has fallen back the most so far from its November 2006 peak, now 55.8%.

The High Tier rose the least and plateaued for awhile before falling more steeply, now 30.8% from its June 2006 peak. As noted above, it was up 0.6% from April, a return to its March 2009 level (and January 2004). This is consistent locally with the flurry of sales in Mar Vista but continued frozen market for higher-priced houses.

Hi There,

We’ll we are in an interesting market indeed. We have had a smattering of sales locally homes and condos selling anywhere from 10 to 35 percent from the highest levels in 2008 before the correction which started in the fourth quarter of last year. We have seen five months of a mostly frozen market and increasing inventory, and we are now seeing some signs of life with more buyers returning . Being on the westside and close to the beach has helped our values hold up the best and the longest. There are some good deals on properties out there and some realistic sellers that are getting offers. Loans are taking longer to get approvals but are still getting done. We are looking  forward to continued success this year and helping buyers and sellers fulfill their needs… 

Best

Ty

Interesting Wednesday afternoon, I was presenting my report compilation of sales of Venice /Marina/Playa Del Rey at a meeting of a lot of real estate heavy hitters with former guru real estate company owner Jon Douglas as the key note speaker.

It was clear to see that the very high end properties had slowed down in sales quite a bit.The $10-20m market was down as was everything over $5m.The bright spot has been that due to the weakening dollar there is an influx of foreign buyers looking at the traditional markets in Southern California such as Malibu and Beverly Hills. I find this very encouraging and while checking sales in the U.K. market it seems that things are jogging along very nicely.

Beach properties will always do well and as long as one is not looking for a quick flip buying now will produce great dividends long term.Listening to all the reports from all areas like Santa Monica ,Brentwood  Hollywood ,Hancock Park it was clear that sales are continuing …just at a slower pace.

Here in Venice and Marina Del Rey/Playa Del Rey things are slow but in reviewing last years statistics they are practically identical.

Nice thing about living and working at the beach is that when things are slow I can go for those much needed relaxing beach walks or go work out..

Lets all remember :The way you choose to see the world creates the world you see.

Recently back in Los Angeles after a few days in London and what fabulous weather was had over there this past week!

The questions asked of me time and time again were about the slide in the property market and whether it was a good time to invest in Southern California or should we wait. My answer is that there is never a bad time to buy property only the reasons change and you have to be prepared to hold not flip.We have seen the cycle and with patience you will always come out on top.

In this market you cannot over-leverage ,you must be more choosy and change your buying criteria.

For those overseas Buyers and Investors it may be harder to arrange financing but with the strenght of the pound over the dollar the buying power is very good.Prices in Southern California have droppedsignificantly in very desirable areas  and there are tremendous opportunities to buy a home .

For those Retirees looking to live in the United States there may be excellent news on the horizen.A new status called a Silver Card is being formulated and looks to good to actually happen.Unlike a Green Card those with a Silver Card will allow foreign nationals who are over 55 to own property in the U.S.,to live out their retirement in the country but without health and social services included.They must show proof of income and health insurance.

This may proove to be  a shrewd move by the U.S. govermant if it comes to pass and provide inbound foreign investment.Green Cards can take up to 10 years to obtain so the Silver Card it is hoped would help to bring an influx of retirees to stimulate a sagging property market.The Silver Card has yet to pass legislation but it looks like it may happen.

Nice to be back and ready to help all those retirees and baby boomers from Europe and the U.K.

Peter

Weve been in business for 20 years  selling real estate and  you never stop learning .There are always strange and iteresting things that come up that try to throw you a curve ball.From Buyers who have no intention buying to sellers who have no intention selling.Its all part of the job and our exeprience is to sell the best properties to the best Buyers we possibly can -even in a downturned market.

I like what I do,people are so interesting and its with respect that we handle some of the biggest transactions in their lives -no matter what the price range.

Number one question I get asked is when is the right time to buy, look… its a personal thing.Yes, this can be the market for someone to buy a forclosure or a short pay.

I dont think its the market to buy and sell all in a matter of a few months,that market has dried up!

People are still buying and selling and we are happy to help.How can you beat living in California ,we have the best of everything right here .Coming from London England I know what rain is ,it plays on your psyche and I am telling you this is the best place to be.

I have started this blog and welcome any questions or opinions of others .

Crazy Week this week!

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Best Regards,
The Bergman Team