Table of Contents
- Home Prices Are on Fire—and Look to Continue to Stay Hot Through Balance of 2017 in Greater Los Angeles
- Jamison Development brings a 209-unit apartment building to Koreatown
- Modern Marvel – Asking $6.3 Million
- Pacific Prime – Asking $3.9 Million
- One Million Fewer Homeowners Today Than A Decade Ago – U.S. Household Net Worth At Record High
- Architectural Influence in Manhattan Beach
- Ritz-Carlton Residence at LA Live
- Koenig House #2
- The Mod Squad
Home Prices Are on Fire—and Look to Continue to Stay Hot Through Balance of 2017 in Greater Los Angeles
According to its recently released Home Price Index (HPI), CoreLogic reported that home prices are up both year-over-year and month-over-month. Nationwide, home prices increased year over year by 6.9% in April 2017 compared to April 2016 and increase month over month by 1.6% in April 2017 compared with March 2017. The CoreLogic HPI Forecast indicates that home prices will increase by 5.1% on a year-over-year basis from April 2017 to April 2018.
CoreLogic also reported that U.S. homeowners with mortgages (which is roughly 63% of all homeowners) have seen their equity increase by a total of $766.4 billion dollars since the 1st quarter of 2016 – an increase of 11.2%. Today, nearly 9 million borrowers have regained equity since the height of the housing crisis in 2011.
On the other hand, the total number of residential mortgages with negative equity decreased 3% from the 4th quarter of 2016 – to 3.1 million homes or 6.1% of all mortgaged properties. CoreLogic Chief Economist stated, “One million borrowers achieved positive equity over the last year, which means mortgage risk continues to steadily decline as a result of increasing home prices.”
And there’s more news on mortgages out today – Freddie Mac just released its Primary Mortgage Market Survey, showing the 30-year fixed mortgage dropping for the 4th consecutive week and hitting its lowest level in nearly seven months. 30-year fixed mortgages averaged 3.89% with an average of .5-point for the week ending June 8, 2017, down from last week when it averaged 3.94%. For reference, a year ago at this time, the 30-year fixed-rate mortgage averaged 3.6%.
With the market so hot, one has to wonder what’s happening with home flipping – the practice of buying and then reselling the same property within a 12-month period. Well, ATTOM Data Solutions just released its Q1 2017 US Home Flipping Report, which showed that home flipping fell to the lowest level in two years during the 1st quarter of 2017.
Interestingly, at the same time, the share of those flips using mortgage financing rose to a 9-year high. The company reported that there were 43,615 single-family homes and condos flipped during the 3-month period, down 8% from the previous quarter and 6% from a year ago. Flipping accounted for 6.7% of all single-family home and condo sales during the quarter, an increase from 5.8% in the fourth quarter, but unchanged from a year earlier.
So, what about millennial home buyers?
The National Association of Realtors (NAR) just released its 2017 Home Buyer and Seller Generational Trends study, which found that millennials were the largest group of home buyers (34%) for the fourth consecutive year. By comparison, baby boomers were 30% of buyers.
“Millennials have been fairly slow to get into the market, but we are seeing an uptick in millennial buyers this year – which is a good sign because as home values rise, we want a wider number of people to participate in this housing recovery,” said Lawrence Yun, chief economist at NAR.
“There’s a pent-up demand and as the economy continues to improve, we expect to see more people in their early thirties, adults who are still living with their parents – clearly not their idea of the American dream – to begin to look for their own housing units.”
In other housing news, economists at Freddie Mac see the U.S. housing market “on track to eclipse last year as the best in over a decade.” The company’s May Outlook gives credits to the housing market’s strong start to 2017 in part to the surprising downward movement of interest rates since March. After rising to 4.3% in March, mortgage rates have dipped back down near the 4.0% range and have been holding pretty steady. The general sentiment is that the Fed will increase rates a few times before the end of 2017. All told, Freddie Mac thinks 2017 is shaping up to be the best year for housing in over a decade.
Finally, Fannie Mae has declared it’s a sellers market.
Based on Fannie Mae’s monthly National Housing Survey, the net share of Americans who said that now is a good time to buy a home reached a record low of 27%, (a decrease of 8%,) while the net share who stated that it is a good time to sell a home reached a record high of 32%, a gain of 6% in May 2017.
Fannie Mae said it was only the 2nd time in the survey’s history that the net share of those saying it’s a good time sell surpassed the net share of those saying it’s a good time to buy. In fact, the “sell” component is 19 points higher than the same time in 2016. All of this makes perfect sense since the market has been on fire and continues to stay hot.
Jamison Development brings a 209-unit apartment building to Koreatown
Designed with an edge and fit for the urban enthusiast, a new seven-story, 209-unit apartment building offers spacious and contemporary residences stylishly conceptualized with a European flair. With high-end cabinetry, quartz countertops, luxury vinyl flooring, and designer-quality fixtures, 3640 Wilshire affords residents a sophisticated take on modern living.
Located on the corner of Wilshire and South Harvard Boulevard, the 218,000-square-foot development offers a combination of au courant apartments and 3,100 square feet of commercial space on the ground floor. Features include a lavish Zen garden, state-of-the-art fitness center, and rooftop terrace. Scheduled for completion fall 2017. For more information.
Contact Jamison Properties: info@jamisonproperties.la
Photography Courtesy of Killefer Flammang Architects
Modern Marvel – Asking $6.3 Million
This contemporary Beverly Hills abode owned by composer Don Caverhill has quite the list of credits, having served as the scene of numerous TV commercials—for Samsung, Intel, Microsoft, Range Rover, Mercedes, and Sony Music—as well as the setting of The Weeknd‘s “Star Boy” video.
“This home is a timeless piece of art spanning generations—appreciated by champions of the industry from Microsoft to Mercedes Benz, to young pop culture icons like The Weeknd,” says Aaron Kirman, who is listing the three-level property with Verna Helbling and Tim Perry (all of John Aaroe Group) for $6.3 million.
Found at 2500 Briarcrest—on a ridge overlooking the Beverly Hills Canyons—highlights of the Zoltan Pali-designed property include complete automation; living areas that seem to float above stunning views of the city and beyond; an upper-level master wing sporting dual baths and closets; and an entertainer’s backyard with a patio, fire pit, and infinity spa.
Perhaps the most outstanding feature is the exterior’s wall of fins that control light and shade to create a striking, ever-changing work of art.
Pacific Prime – Asking $3.9 Million
Hollywood director and producer Joe Carnahan‘s Pacific Palisades home is now on the market for $3.895 million. Situated on Temecula Street, in the highly sought-after El Medio Bluffs neighborhood, the residence was built in 1947 and has since been remodeled to include 3,654 square feet of elegant living space highlighted by soaring ceilings in the kitchen and living room and French doors that open to a massive, grassy backyard. In addition, the upstairs features an office and a spacious master suite with a luxurious spa-like bath, walk-in closet, and mountain views. Adding to the property’s special appeal is a private, gated courtyard with a stone fireplace.
“The outdoor living area provides an intimate area for entertaining,” says Ryan Jancula, who is listing the home with Amy Alcini and Trevor Montano, all of the brokerage, Compass.
“This home is ideal for the modern family, only a few minutes from ocean-bluff views and the shops and restaurants of Palisades Village.”
One Million Fewer Homeowners Today Than A Decade Ago – U.S. Household Net Worth At Record High
Highlights from the National Association of Realtors Sustainable Homeownership conference held recently at the University of California, Berkeley, show that despite the addition of roughly 11.8 million households between 2006 and 2016, there are approximately 1 million fewer homeowners today than a decade ago.
“The decline and stagnation in the homeownership rate is a trend that’s pointing in the wrong direction, and must be reversed given the many benefits of homeownership to individuals, communities, and the nation’s economy,” stated William E. Brown, president of NAR.
According to CoreLogic’s recently released Loan Performance Insights Report, mortgage delinquencies dropped to a 10-year low in March 2017. Nationally, 4.4% of mortgages were in some stage of delinquency, (30 days or more past due including those in foreclosure,) in March 2017 – a 0.8% point decline in the overall delinquency rate compared with March 2016 when it was 5.2%.
CoreLogic also reported that U.S. homeowners with mortgages (which is roughly 63% of all homeowners) have seen their equity increase by a total of $766.4 billion dollars since the 1st quarter of 2016 – an increase of 11.2%. Today, nearly 9 million borrowers have regained equity since the height of the housing crisis in 2011. CoreLogic Chief Economist stated, “One million borrowers achieved positive equity over the last year, which means mortgage risk continues to steadily decline as a result of increasing home prices.”
In other housing news, the National Association of Realtors (NAR) just released its 2017 Home Buyer and Seller Generational Trends study, which found that millennials were the largest group of home buyers (34%) for the fourth consecutive year. By comparison, baby boomers were 30% of buyers.
“Millennials have been fairly slow to get into the market, but we are seeing an uptick in millennial buyers this year – which is a good sign because as home values rise, we want a wider number of people to participate in this housing recovery,” said Lawrence Yun, chief economist at NAR. “There’s pent-up demand, and as the economy continues to improve, we expect to see more people in their early thirties, adults who are still living with their parents – clearly not their idea of the American dream – to begin to look for their own housing units.”
Finally, the Federal Reserve just reported that Americans’ net worth climbed to $94.8 trillion in the first three months of 2017, an increase of 2.5% from the fourth quarter of 2016. For perspective, that’s up nearly $39 trillion from where wealth sat during the depths of the Great Recession in 2008. Collectively, Americans’ net worth in Q1 2017 is up more than 68% from that low, as consumers’ stock portfolio values gained $1.3 trillion, and real estate values climbed $499 billion in the first three months of this year alone.
Architectural Influence in Manhattan Beach
Once home to television producer Stephen Downing, this exquisite Spanish-style property offers an elaborate and timeless architectural embrace. Situated on the only private street in Manhattan Beach, the designer-curated compound feels like a European getaway.
“This home has stunning, authentic Spanish details and lines that make you feel like you’re at a boutique hotel in Spain,” says Justin Alexander, director of sales for Halton Pardee + Partners and listing agent for the property.
“My favorite element of the home has to be the backyard, with its lush green hedges surrounding the swimming pool—super private and an uncommon setting in Manhattan Beach.”
Presented by Justin Alexander, Halton Pardee + Partners
Ritz-Carlton Residence at LA Live
The residence of former Entertainment Tonight host Mary Hart and her husband, producer Burt Sugarman, is on the market for $7.9 million. Situated at The Ritz-Carlton Residences at LA Live—amid the city’s world-class museums, entertainment venues, and restaurants—the three-bedroom condo (Unit 48G) offers 4,000-plus square feet of elegant living space ideally suited for art aficionados, complete with soaring ceilings and custom-designed, multidirectional lighting. Another exceptional hallmark of the property is its jaw-dropping views.
“You’ve never seen 280-degree views like these before,” says listing agent Alexandre LiMandri of DTLA Life. “The Hollywood Sign, San Gabriel Mountains, and the Pacific Ocean are your backyard, and the shimmering downtown L.A. high-rises are your nighttime beacons.”
Koenig House #2
The personal residence of the late architect Pierre Koenig has hit the market for $3.795 million. Found at 12221 Dorothy St. in Brentwood, this modern, steel-and-glass home was completed by the legendary mid-century architect in 1985 and has been historically archived as “Koenig House #2” by the L.A. Conservancy.
“This is an incredibly unique property,” says Matt Altman, who is listing the property with brother Josh Altman, both of Douglas Elliman Real Estate.
“As one of the most photographed and published homes in the country, it has been meticulously restored exactly and painstakingly by Pierre Koenig’s stepchildren, Barry and Thomas Kaufman, over the past two-and-a-half years as a tribute to the famed architect’s original vision.”
Coming in at 3,000 square feet, the striking mid-century abode is highlighted by a 30-foot, three-story vertical atrium crossed by landings and staircases, and illuminated by floor-to-ceiling clerestory windows. A media/family room also opens to reveal a courtyard replete with a fountain, music room, and decks.
The Mod Squad
Home tours and book signings with today’s top designers are among the highlights of the Dwell on Design fair coming to L.A. this summer. New rug designs inspired by distant galaxies, lunar phenomena, and rare natural beauty; an on-stage conversation with the designer to the stars, Martyn Lawrence Bullard; and an inside look at some of L.A.’s top-designed homes are just some of the many experiences attendees can look forward to enjoying at Dwell on Design 2017—the largest modern design fair on the West Coast—set for June 23-25 at the L.A. Convention Center.
“The primary mission of Dwell on Design is to integrate an exhibition, conference, home tours, professional continuing education, and special events into a celebration of modern design,” says Dana Teague, vice president of Informa Global Exhibitions, which collaborates with the Dwell editorial team to develop the annual event.
“It celebrates the people, products, and ideas that drive modern design and architecture forward.”
Guests can expect three days of programming curated for design and architecture professionals and enthusiasts. Included in the lineup are new and returning exhibitors; continuing education classes; onstage presentations covering topics ranging from small space design to color trends; 50-plus speakers and panelists, including world-renowned architect Sir David Adjaye, best known for his work on the recently opened Smithsonian National Museum of African American History and Culture; and book signings featuring notable designers such as Adjaye and Bullard, along with Frank Escher, Ravi GuneWardena, David C. Martin, Claire Weisz, Mark Rios, Christiane Lemieux and Nancy Silverton.
Among the most anticipated events are the self-guided tours of high-end, modern-designed homes throughout L.A., taking place June 24 and 25. This year’s tours include the minimalist Drexel home, smartly remodeled Kuehl House, and mnmMOD-constructed Sherbourne Residence.
“Coupled with the city’s flourishing cultural scene, Dwell on Design celebrates the best of design not only at the fair through its product displays, installations, and educational sessions, but outside—in the city—through its weekend program of self-guided home tours,” says Dana Teague. “The tours are preceded by Meet the Architects Night at Pacific Design Center June 21, where the homes’ architects preview the dwellings on tour, providing attendees a glimpse into their design process.”
As for this year’s must-attend activities, according to Dana Teague? Attendees won’t want to miss a retrospective installation curated by Knoll and the editors of Dwell celebrating the 100th birthday of architect and furniture designer Florence Knoll; a collection of Finnish companies and design in honor of the 100th anniversary of the country of Finland; and AutoCamp, a re-creation on the show floor of a modern camping experience at California’s Russian River and Santa Barbara, with a chance to win a stay at one of these glamorous sites.
And there’s more—a fabulous tiny home designed and built by Kim Lewis, former designer for ABC’s Extreme Makeover: Home Edition and FYI’s Tiny House Nation; and, new this year, an Architecture & Design Film Festival featuring design-forward short and feature films in the Dwell Outdoor Pavilion, along with the Hennessey + Ingalls Reading Room, which offers the chance to browse and purchase a curated inventory of titles.
For tickets, visit DwellOnDesign.com