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by President Jamie Duran, Orange County, San Diego, and Desert Companies
We want to Thank President Jamie Duran of Coldwell Banker Residential Brokerage for this Presidents Message! And we were honored to have been the ones that handled the Sells of these hallmark properties that were features in numerous books and received several architectural awards for its “timeless architecture.” As quoted by us :These are stunning estates with rich history, remarkable design, and incredible vistas. The transactions fell into place beautifully and we were fortunate to be involved with the sales”
346 Tamarisk Rd – Zanuck Estate – Sold /$4.9M
64725 Acanto Drive – Pond Estate – Sold /$7.5M
2212 Southridge Dr – Boat House – Sold /$1.75M
We Cat Moe & John Nelson of Nelson-Moe Properties Coldwell Banker Presidents Premier Properties would also be HONOREDif given the chance to SELL your “Timeless Architecture” Estate as well! Contact us TODAY!
We were very HONORED to have been the ones that listed this Iconic architectural property in the desert of Palm Springs!
Earlier this year after four years of working with Lloyds Bank of London, we announced the listings of the iconic architectural properties at Southridge. Today as an update we are proud to announce the successful closing of escrow of the famous Lautner/James Bond House. This sale marks a historic bench mark as the highest sale in Palm Springs history – a sign of a healthy direction in our Real Estate market as Palm Springs continues to attract the next generation of successful investors from outside the area. We are honored to have another very happy client and appreciate the opportunity given to us. Known as the Elrod House this monumental, world famous residential sculpture was designed by 1968. Organic shapes, monumental construction and world class design create an extraordinary experience of space that Lautner himself described as “timeless” architecture. The 60′ wide circular living room has a conical dome that fans out in nine petals between nine clerestories angled up to bring in light. Retractable curved glass walls open the entire living room and pool terrace to panoramic views of Mt San Jacinto, Mt San Gorgonio and the full sweep of the valley below and mountain ranges beyond. The very rock of the ridge is incorporated into the design throughout the home. A very rare opportunity to acquire an inspiring example of architectural perfection. SOLD!!!
But surprisingly, it’s located in the desert of Palm Springs
Text by Jennifer Tzeses Posted July 8, 2016
The “ship” is situated next to a road and surrounded by palm trees.Photo: Courtesy of Hawaii Life Real Estate Brokers
Part irony, part wishful thinking, this Palm Springs, California, home, aptly named Boat House for its shiplike exterior, happens to be located in the heart of the desert. Built in 1992 by architect Michael P. Johnson for race-car driver Jim Jeffords, the property is located on the side of a hill in the gated community of Southridge. Inside the towering glass walls, the interiors feature 14-foot ceilings. Vistas of the arid landscape and valley take center stage in the living room at the bow of the “ship.” There’s also an open-plan kitchen with sliding privacy screens, a dining area, and three en suite bedrooms, including the master suite, which features a skylight and fireplace and overlooks the living room. Outside, there’s an infinity pool and large sun deck, both with beautiful views. Listed for $2 million, this 3,905-square-foot home has 3 bedrooms and 3 baths. Contact: Coldwell Banker, 760-325-4500; coldwellbankerhomes.com
Walls of glass and wood beams surround the living room.
Photo: Courtesy of Hawaii Life Real Estate Brokers
A skylight crowns the master suite.
Photo: Courtesy of Hawaii Life Real Estate Brokers
The pool area offers amazing views.
Photo: Courtesy of Hawaii Life Real Estate Brokers
Thank you Jennifer Tzeses with Architectural digest for including our “Boat House” listing as one of your recent articles you can also see it here: http://www.architecturaldigest.com/story/ship-home-palm-springs
Famous for appearing in Diamonds are Forever, the concrete masterpiece returns to the market
by Patrick Sisson
A famous modernist home in Palm Springs designed by John Lautner, known by many for its brief appearance in a Bond film, has recently been re-listed, quickly drawing attention and offers. The one-of-a-kind dwelling, which hasn’t been open to the public for years, returns to the market after a lengthy legal battle and is asking $8M, according to The Desert Sun.
Real estate investor Michael Kilroy purchased the Elrod Home, as well as two other properties (the Steve McQueen House and Boat House), for $11 million. Years later, Kilroy fell on hard times and in 2012, UK-based lender Lloyds Bank sued Kilroy, claiming he had stopped payment and owed $1.8 million. In addition, the nearby Southbridge Property Owners Association also sued, claiming Kilroy owed $150,000 in fees.
Last April, Kilroy filed a petition for bankruptcy, and the creditors agreed he had until the end of 2016 to sell. Last week, local broker Nelson Moe Properties listed the home.
Designed for a noted interior designer and considered a key example of Lautner’s exemplary means of blending architecture and nature, the Elrod House is one of the most famous Modernist homes in Palm Springs. Highlights of the home’s layout include a circular concrete canopy framed by glass windows and a projecting pool deck that seems to float above the landscape.
This isn’t the only John Lautner-designed home to be in the news this year. In February, it was announced that his famous, dramatically slanted Sheats-Goldstein Residence, which made a cameo in The Big Lewbowski, was donated to the Los Angeles County Museum of Art (LACMA).
2175 Southridge Drive, Palm Springs, California [Nelson Moe Properties]
Thank you Patirck Sisson with L.A. Curbed http://www.curbed.com/authors/patrick-sisson for including our iconic famous high end real estate home as one of your articles!
Article by Diana Olick
Rampant volatility in the U.S. stock market is showing up in the high-end housing market. But as with all things real estate, the impact depends entirely on location.
2016 started with a severe stock swoon, and that had an outsized impact on homebuyers with a higher net worth. Historically, high-end housing suffers most in a market downturn.
“As you go up the income quintile, into the top 10 percent, 5 percent, 1 percent by income, their stock exposure increases,” said Sam Khater, chief economist at CoreLogic. “For the typical family, the bulk of their equity is tied up in home equity not stock equity. It’s the reverse for high income.”
Source: Sam Khater/CoreLogic
Khater compared the share of million-dollar home sales to the S&P 500 and found a distinct correlation. While the share of $1 million or more homes is very small, just 1.2 percent of all home sales historically, it can move dramatically depending on stock market gains or losses. From the worst of the financial crisis in 2008 to the peak of the equity markets in May 2015, the share of million dollar and more home sales nearly doubled, according to Khater.
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“Since its peak in May 2015, the S&P index declined 10 percent as of mid-February. This decline in the S&P index was matched by a 30 basis point or 15 percent decline in the $1 million or more share,” Khater said.
The correlation, however, is far more acute in certain locations.
In New York City and San Francisco, where the local economies are tied most to financial markets, sales of high-end homes have weakened, and supply is rising. That jump in inventory will likely affect prices down the road, as supply outstrips demand. Nationally there was a 9.3-month supply of homes listed at $1 million or above in December 2014, but that increased to 13 months by December 2015, according to CoreLogic.
“With more than a year’s supply of inventory, prices, for the most part, won’t be increasing,” Khater said.
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In Washington, D.C., however, the stock effect is far more muted. Government, and the high-priced lawyers and lobbyists that surround it, are a steady denominator.
“Demand is higher, even though the stock market has gotten in the way and the snowstorm has gotten in the way, but demand is there, people are feeling very good about the economy,” said Nancy Taylor Bubes, a 30-year veteran of high-end D.C. real estate and currently an agent with Washington Fine Properties.
She was standing in a $5.75 million listing that received a solid offer in just 10 days. Taylor Bubes, who specializes in the area’s high-end neighborhoods, says she has sold six million-dollar-plus listings year to date, three times what she did last year. Her buyers, mostly domestic and local, are not swayed by Wall Street.
“I actually think the stock market is good for my business. I think people are going to really think about divesting a little bit and putting it into something they would really enjoy,” Taylor Bubes said.
In southwest Florida, however, where real estate is primarily driven by wealthy retirees from the Northeast and Midwest, the story is very different. Sales have slowed dramatically.
“The stock market volatility has definitely impacted the luxury homebuyer in Florida, particularly in Naples and Sarasota,” said Kristine Smale, a senior consultant with John Burns Real Estate Consulting who is based in Florida. “Seasonal traffic is still strong, but would-be buyers are slow to commit this year due to the significant hits to their portfolios. Builders are disappointed, and some are increasing incentives to generate sales,”
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The direction of the luxury real estate market now depends entirely on both the trajectory of the stock market and on inventory levels. Supply of less-expensive homes is extremely tight, and homebuilders are leery of building to that market, as it is harder to meet margins at lower price points. Early last year, before the stock market began its fall, the CEO of Pulte Group, Richard Dugas, said the company would focus more on high-end product, because that is where the demand is.
If the stock market settles, the spring housing market could see a resurgence on the high end. If not, supply will surely increase, and prices will chill.
Article by Real Estate News
Rising home prices? C’est la vie, say a majority of today’s high-net-worth (HNW) individuals. According to new research Coldwell Banker Previews International®/NRT commissioned from Ipsos MediaCT, 54% of HNW individuals say they plan to make a real estate investment this year, up from 48% in 2014. The report surveyed the wealthiest 1.5% of the U.S. population with an average net worth of $8.5 million, and their outlook on real estate was generally positive.
An overwhelming majority — 94% — expect their property to grow, on average, 16% in value over the next five years. However, appreciation is not their primary motivator for wanting to buy. Those considering a purchase are twice as likely to be looking for a residence for personal use, as opposed to purely for investment/rental purposes. Still, 40% of respondents cited investment attractiveness as a reason to be in the real estate market.
“Property has been a mainstay of high-net-worth investor portfolios for decades, but what is notable now is that so many those investors continue to be bullish about real estate, even in the face of rising real estate prices in many U.S. cities,” says Ginette Wright, vice president of marketing for Previews®/NRT. “Financial market uncertainty and other recent global economic factors, such as a potential slowdown in China, all seem to have contributed to their view of real estate as a safe haven.”
Young, Free and Willing to Pay a Premium
Even younger affluent generations are taking an interest in real estate. The survey found that 69% of HNW millennials (those under age 35) say they plan to purchase a new property in the coming year — running contrary to the myth that millennials are reluctant to enter the housing market. Compare that to 50% of Gen Xers (ages 35-49) and 17% of baby boomers (50 and older), who expect to purchase new property in the coming year. Millennials are also leading the movement toward embracing a “live anywhere” lifestyle, a trend spotted in last year’s survey.
In addition to being more inclined to invest in real estate, younger wealthy consumers are also purchasing homes at substantially higher prices than baby boomers. Gen Xers paid an average of $5.24 million for their last home, and millennials spent $4.96 million. Baby boomers, who tend to be in downsizing mode, reported an average closing price of $1.55 million on their last home purchase.
Most Wanted: Tech and Green Features
What features and amenities do HNW individuals most desire? A home that’s move-in ready was at the top of their list, followed by modern appliances and technology, as well as the latest in “green” features. A growing share of HNW individuals say that a fully automated and wired home environment and a LEED-certified green home are becoming more important.
It’s a late-summer nail-biter: The U.S. Federal Reserve will announce its current policy for short-term rates on Thursday, ending weeks of suspense. If you’ve been worrying that the Fed will raise rates and thus ruin your dream of homeownership, well, you’re not alone.
But higher rates won’t hurt the housing market overall, which should console homeowners watching their equity as well as home buyers concerned about their investment.
The Fed’s target for short-term rates has been zero since December 2008. Since then, the 30-year fixed mortgage rate has averaged between 3.31% and 5.59% on a weekly basis. So when the Fed officially moves away from a zero interest rate policy for short-term rates, whether it happens tomorrow or in a few months, it will mark the beginning of the end of an era: seven years of incredibly low mortgage rates and high affordability.
But interest rates matter less to housing demand than consistently high levels of job creation and household formation. That is, when people are able to get jobs, move out on their own, and create families, they’re likely to want to buy a home. So higher rates—though they may price out some buyers—won’t cause a decline in sales, or a decline in prices.
But that may not help you feel better if you’ve yet to buy and lock in a monthly payment at these historically low rates. If that’s you, have you completely missed out on the party?
No. You will still be able to do well by historical standards.
The affordability index reported by the National Association of Realtors® stood at 151.2 in July. That number basically means that a family earning the median household income could afford to buy 151% of the median-priced homes in the U.S. Yes, the index is down 16% from January when mortgage rates were at their lows for this year. But the index has averaged 125 over the past 44 years. That means you can still get more home for your money than most people have for more than 40 years.
Over that same 44-year period, the average monthly 30-year fixed mortgage rate was over 8%. It was 4.06% on Tuesday.
Does that mean dealing with higher rates will be easy? No, we will have to adjust to the impact. A 50 basis-point increase in rates causes a 6% increase in monthly mortgage payments. (A basis point is 1/100th of a percentage point.) And higher payments cause higher debt-to-income ratios, which typically max out for various mortgage products between 36% and 43%.
How can you still qualify even with higher rates?
Consider a higher down payment. Can you swing it? This could qualify you for a lower rate, but even if it doesn’t, you’d have a lower loan balance, resulting in a lower monthly payment.
Pay a discount point. This would also reduce the applicable rate, and could make economic sense if you intend to stay in the home long enough to recover the cost of that discount point.
Consider hybrid mortgages. These offer lower rates that are fixed for a specified period such as five, seven, or 10 years. Since rates have been so low, most mortgages have been fixed for the duration of the mortgage term. But in periods of higher rates, we usually see more hybrid term mortgages because of the flexibility the lower rates provide.
Consider different mortgage types such as an FHA loan. This offers more flexibility on key ratios for qualified buyers.
Finally, consumers may need to rethink their target prices based on what they can afford with higher rates. That may mean rethinking location, size, or key features. An expert local Realtor® can help you think through trade-offs and home in on what matters most.
Bottom line: This era of low rates was a unique period of economic weakness and poor housing fundamentals. That era is ending, as conditions are much, much better now. Yes, that does mean that affordability will be lower, but we are still in good territory by historical standards, and today looks pretty good compared to the future for locking in prices and rates.
California pending home sales continued to gain steam in June, registering seven months of continued annual increases and the fifth consecutive month of double-digit increases, according to the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
In a separate report, California REALTORS responding to C.A.R’s June Market Pulse Survey saw a reduction in floor calls, listing appointments, and open house traffic, compared with May. The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS, Which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.
Pending Home Sales data:
• California pending home sales were up 12.5% on an annual basis from the revised 107 index recorded in June 2014, marking the seventh straight month of year-to-year gains and the fifth straight month of double-digit advances.
• Statewide pending home sales fell in June on a month-to-month basis, with the Pending Home Sales index (PHSI) decreasing 2.6% from revised 123.6 in May to 120.4, based on signed contracts. The month-to-month decrease was slightly below the average May-June loss of 1.9% observed in the last seven years.
• A shortage of available homes in the San Francisco Bay Area stified pending sales in June, pushing the PHSI to 127.9, down 5.3% from 135.1 in May down 0.9% from 129.1 index recorded in June 2014.
• Pending home sales in Southern California continued last month’s increase by rising 4% in June to reach an index of 109.6 up 14.2% from June 2014 index of 96.
• Central Valley pending sales fell in June dropping 8.2% from May to reach an index of 99.5 in June but up 14.2% from 87.2 index of June 2014.
Equity and distressed housing market data:
• The share of equity sales – or non-distressed property sales – declined slightly in June to make up 92.4% of all home sales, remaining near the highest level since late 2007. Equity sales make up 92.6% of all home sales in May and 89.9% in June 2014. The share of equity sales has been at or near 90% since mid-2014.
• Conversely, the combined share of all distressed property sales (REOs and short sales) rose slightly in June, up to 7.6% from 7.4% in May. Distressed sales made up 10.1% of total sales a year ago. Ten of the 43 counties that C.A.R. reported showed month-to-month decreases in their distressed sales shares, with Alameda and Santa Clara having the smallest share of distressed sales shares at 1%, followed by San Mateo (2%), Contra Costa (3%), and San Francisco (3%). Glenn had the highest share of distressed sales at 27% followed by Merced and Siskiyou (both at 23%) For more information, visit http://www.car.org, CALIFORNIA ASSOCIATION OF REALTORS®
Posted on May 11 2015 – 3:56pm by Suzanne De Vita
With housing on a steady path to recovery, home prices have risen approximately 20 percent in the last three years, according to the Federal Housing Finance Agency (FHFA) and Standard & Poor’s (S&P) Case-Shiller house price indices – and both consumers and industry professionals expect that upward trajectory to continue this year.
The anticipated increase is the result of intersecting economic indicators – macro-level factors painting the big picture that is today’s housing market.
So what’s impacting prices these days?
Wages and Inflation – As much as the economy’s improved, a recent RealtyTrac analysis illustrates disconnect between house price growth and wage growth. Between 2012 and 2014, home prices increased by 17 percent; wages, in contrast, increased 1.3 percent – a 13 to 1 disparity. Furthermore, home prices continue to outpace inflation rates, growing twice as fast in 2014, according to S&P.
But inflation rates as they stand likely affect home prices indirectly, argues renowned economist and Nobel Laureate Robert Shiller. Because pay increases often boost perceptions of buying power, inflation may have a greater impact on consumer confidence, which, in turn, could ignite housing activity.
Interest Rates and Inventory – Inflation rates, however, do tend to influence interest rates. While it’s reasonable to assume rising mortgage interest rates equal falling house prices, in truth, there’s little evidence of a causal relationship between the two. In fact, higher mortgage rates have a tendency to predicate a decrease in purchases, rather than a dip in prices, concludes Mark Palim, Fannie Mae Vice President, Economic & Strategic Research Group.
That said, interest rates do play a role in overall affordability. In many markets, today’s rates have significantly propelled demand.
“The biggest factor in price gains has been the current low interest rates spurring demand,” says Gabe Sanders of BlueWater Real Estate in Stuart, Fla. “And our low inventory, which makes buyers willing to spend more, since they can’t find enough available lower-priced properties.”
In Sanders’ market, prices on the lower end have risen much more than those of mid-range homes, with the largest gains seen under $400,000 in Martin County and under $200,000 to $250,000 in St. Lucie County. This demonstrates what many nationwide are experiencing – escalating prices, due to a shortage of affordable listings, have adversely tipped the scale, especially for first-time homebuyers.
To counter the lack of inventory and rise in prices, new construction gains are essential, says Lawrence Yun, chief economist for the National Association of REALTORS®. Post-crash, single-family construction has been slow to pick up steam, primarily because of construction costs that fail to meet buyer expectations.
Demographics – In addition, generational shifts have historically affected demand and moved prices in the housing market. Currently making waves are baby boomers and millennials, though many of the latter have been priced out due to statistically lower incomes and sluggish wage growth. And like toppling dominos, too few first-timers bodes ill for move-up buyers or those seeking to relocate.
International interest can also drive home prices, particularly in luxury markets. In Beverly Hills, Calif., global demand, coupled with the area’s high-end status and pleasant climate, impacts prices considerably, says Endre Barath, Jr. of Berkshire Hathaway HomeServices California Properties.
“Prices in the 90210 zip code are trending upward and are getting close to an all-time high,” Barath says. “Looking at the current rate of sales versus the current inventory, we are still in a seller’s market, but getting close to a balanced market.”
Oil Prices – Another distinct market trend could also affect home prices in the near future. Following the decline in oil prices, markets with oil economies, such as Texas, Louisiana and Oklahoma, may see home prices drop at the end of this year and into 2016, Trulia reports. Conversely, non-oil-producing markets, particularly in the Northeast and Midwest, may see a boost in prices. These findings mirror oil and home price fluctuations since the 1980s.
While there are many more variables factoring into the equation, house prices remain subject to these predominant large-scale influencers. I put it to our readers – where do you think prices are headed?
We thought this article was a good one and would like your thoughts in where do you think prices are headed? And if you would like our thoughts contact us we would be happy to discuss this with you.
By Brian Honea
On April 8, 2015 @ 7:59 am In Daily Dose,Featured,Market Studies,News
An early look at the realtor.com national monthly housing data, which is based on the first three weeks of March, showed that housing demand is surging and median list prices are rising faster.
The median age of inventory declined by 13 percent month-over-month in March despite a 2 percent increase in inventory for that same period, according to realtor.com. Meanwhile, the median list price for a home rose nationally by 3 percent month-over-month and 11 percent year-over-year up to $220,000 for March.
“It’s still a seller’s market,” said Jonathan Smoke, realtor.com chief economist. “Realtor.com data shows that supply is not keeping pace with surging demand. We expect rising prices to persuade those who may be on the fence about listing their homes to do so in the coming months, leading to closer parity between supply and demand.”
The realtor.com data concurred with Fannie Mae’s March 2015 Housing Survey  , which also showed signs of a seller’s market. The percentage of respondents in Fannie Mae’s survey who said they believe now is a good time to sell reached an all-time survey high of 46 percent while the percentage of people surveyed who said now is a good time to buy declined slightly to 20 percent, possibly indicating a move toward a more balanced housing market.
Smoke determined the 20 hottest housing markets in the nation based on the number of listing views relative to the number of listings when looking at March data and website traffic. Realtor.com said these markets should see plenty of activity in the next few months as homebuying season gets underway. The top 20 markets were: 1. Waco, Texas; 2. New Orleans-Metairie, Louisiana; 3. Ann Arbor, Michigan; 4. Denver-Aurora-Lakewood, Colorado; 5. Santa Rosa, California; 6. Fort Wayne, Indiana; 7. Vallejo-Fairfield, California; 8. San Diego-Carlsbad, California; 9. Columbus, Ohio; 10. Detroit-Warren-Dearborn, Michigan; 11. Manchester-Nashua, New Hampshire; 12. Boston-Cambridge-Newton, Massachusetts-New Hampshire; 13. Austin-Round Rock, Texas; 14. Boulder, Colorado; 15. Springfield, Illinois; 16. Charleston, West Virginia; 17. Pittsburgh, Pennsylvania; 18. Tampa-St. Petersburg-Clearwater, Florida; 19. College Station-Bryan, Texas; and 20. Lansing-East Lansing, Michigan.