Santa Monica Property Blog

RESIDENTIAL REAL ESTATE TRENDS 4 U

By Jodi Summers

A recent study from the Urban Land Institute and PricewaterhouseCoopers LLP has concluded that homes near cities with thriving economies and mass transit will outperform outer-ring suburbs and “exurban areas,” it the near future.

The study calculated information supplied by more than 600 real estate experts, including investors, developers, lenders and real estate brokers. The report, Emerging Trends in Real Estate 2009, projects that the worst of the national housing downturn may be over, with the bottom of the market being confirmed by the end of this year.

The report included an overview of housing markets and how they may be affected by macroeconomic trends and changing regional conditions.

Some entertaining factoids:

· Changing preferences could increase demand for condos in urban areas, many of which now have a glut of such properties. One respondent said their company had 30,000 unsold units in south Florida — just as they did in 1975 and 1988.

· At some point, those high-end Miami condos overlooking the Atlantic will be good buys,” the report predicts, noting that ocean views “always find a market.”

· 24 hour cities” like New York, Boston, Chicago, San Francisco, and Washington, D.C., should also benefit from mass transit systems that can free residents from car dependence.

But, gains in the attractiveness of 24-hour cities could be “squandered” if cutbacks in police, fire and sanitation result in less safe and appealing environments. Falling property values and the economic slowdown are expected to cut into tax revenues, forcing cities to reduce services.

“Nothing would undermine 24-hour dynamics more quickly than rising crime rates,” the report warned.

· “Fast-growing Sunbelt cities had pooh-poohed mass transit in their rapid expansions, enabled by interstate highway building during the 1960s and 1970s,” the report observed. “Virtually no one contemplated the consequences of car dependence until populations began to overwhelm road capacities.”

· The Sunbelt is also plagued by water issues, as spotlighted by droughts that tested Atlanta’s reservoir system, which the report called “insufficient.”

· Water issues pose a challenge to further growth in areas dependant on the Colorado River and throughout the Southwest, the report said. Continued growth in areas like Las Vegas, Phoenix and Southern California will require increased conservation and new sources of water.

· The suburbs will continue to be desirable to families in search of better school districts and child-friendly environments. But the mortgage crisis, high car-related costs and increasing property taxes mean moving to the suburbs requires greater sacrifices.

· As home prices continue to fall, “McMansion subdivisions in the sticks (will) take a double whammy,” the report predicts. Rising heating and cooling bills could work against sellers already facing resistance to long commutes. “People realize they don’t need 3,000 square feet and four cars anymore,” one respondent noted in the report.

· California’s large suburban satellite markets, Riverside and Orange County, are expected to “tank in mortgage and housing misery.”

http://www.inman.com/news/2008/10/21/housing-healthier-near-thriving-metros

http://www.condobook.com/images/home-right.jpg

http://www.ulisf.org/imgManager/1000000877/Cover%20-%20EmergingTrends2009.jpg

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http://4.bp.blogspot.com/_ERJ3VTs4Tho/STMgbiE4PcI/AAAAAAAADOE/Os15Z_s-TBI/s400/iStock_000002504258XSmall.jpg

http://exitrealestate540.com/files/2008/12/thefutureroadsign.jpg

http://www.alwaysonvacation.com/photos/United-States_California_Squaw-Valley_414901.html?spid=415021

YALE PICKS THE TEN MOST ENVIRONMENTALLY FRIENDLY COUNTRIES

YALE PICKS THE TEN MOST ENVIRONMENTALLY FRIENDLY COUNTRIES

Edited by Jodi Summers

Every year, Yale University releases an Environmental Performance Index (EPI), calculating national environmental factors such as a country’s environmental health, air pollution, water resources and productive natural resources. So let us present to you the most recent top 10 winning countries who can boast the title of the most eco-friendly nations in the world.

1 - Switzerland

Switzerland’s hard-line legislation on pollution makes it one of the world’s most eco-friendly nations. Switzerland’s strategy is to continue to foster cooperation between organizations and individuals. To make sure everyone is acutely aware of how precious the environment can be, Switzerland charges for their water and waste management services as well as establishing severe environmental taxes. Prevention is the third key tenet, shown by the 2006 development of the Federal Office for the Environment (FOEN), to sustain natural resources and develop safety measures for natural hazards.

2 - Norway

Overcast Norway is the home of the world’s largest solar production plant, owned by REC Group. Norway has also taken emissions seriously, and is now planning on becoming carbon neutral by 2030, not 2050 as originally expected. The change in anticipated timing has been reduced because of what Norway has learned by funding green projects abroad and reducing at-home driving and flying.

3 - Sweden

Sweden’s mandate for a country free of fossil fuels by 2020 puts it as the third most eco-friendly country on the planet. Already, a majority of Sweden’s power is either nuclear or hydroelectric. Solutions for automobile and flight transport include ethanol and animal waste conversion. Additionally, Sweden is one of the world leaders working on harnessing the power of waves. At the University of Uppsala, Sweden is developing “wave power” which converts waves into 4x as much energy as solar power in the same amount of time, with no waste and no emissions.

4 - Finland

Finland is experiencing a remarkable recovery from industrialization, using initiatives to clean up water and air quality in industrial areas, and practicing land preservation. Bravo as Finland has managed to reverse deforestation. The country’s forests are now growing at a greater rate than they are being deforested, showing an environmental gain even with the annual timber harvest. Finland can also be attributed with starting the United Nation’s Environmental Program (UNEP) Task Force for Sustainable Building and Construction, which looks not only at the sustainability of the building, but of the resources and process used to construct it.

5 - Costa Rica

With 5% of the world’s biodiversity contained in one country, Costa Rica has always been on the forefront of environmental conservation. Did you know that a full quarter of the nation is devoted to park preservation? That helps the country score high on the EPI list. Couple their conservation efforts with the fact that Costa Rica uses hydroelectric power in 80% of the country, and add on their 5% gas tax which funds environmental programs, and Costa Rica comes in fifth.

6 - Austria

It’s very impressive that Austria’s environmental conservation measures are enforced by all levels of government, from federal to municipal authorities. For example, waste disposal is a highly regulated department encompassing everything from individual waste to corporate chemical, air and agricultural pesticide pollution. Water quality and forest preservation, are extremely high on Austria’s list of priorities, thus the quality level for Austria’s lakes and rivers is among the highest in the world. The development of Austria’s National Protective Forest Plan has also helped in keeping the nation’s natural beauty pristine.

7 - New Zealand

New Zealand‘s relatively small population in relation to land mass has helped preserve this nation’s natural resources. While automotive emissions and industrial pollutants are still problematic, New Zealand is working hard to develop restrictive legislation and alternative energy sources. The nation was host to the 2008 World Environment Day, and has developed the Environmental Risk Management Authority, which regulates the introduction of non-native species and environmental components so as not to threaten New Zealand’s pristine atmosphere.

8 - Latvia

The Baltics weigh in. By monitoring and reducing water pollution, Latvia’s salmon crop and freshwater bodies are all in the range of “good.” Taken steps toward improvement, Lativia has begun dismantling pollutive farms to reduce fertilizer and insecticide chemicals and allow room for the return of natural forests. Since obtaining freedom from the Soviet Union 1990, Lativa has decreased stationary pollution by 46% and wastewater by 44%, devoting a major portion of environmental funds to water treatment and energy conservation techniques.

9 - Colombia

Beating Costa Rica, Colombia is home to 10% of the world’s species, giving the country a wealth of ecological diversity. While Colombia has had problems in the past concerning deforestation, the detrimental effects of the coca trade, and political strife involving their natural oil deposits, these factors have served to motivate Colombia towards energy conservation and new, less politically tumultuous resources. Colombia has also begun programs for the cultivation of natural parks that support the growth of native medicinal plants with preserves such as the Orito Igni-Ande Medicinal Flora Sanctuary, a 10,626 hectare preserve.

10 - France

The French government is very aware of the problem of climate change. Their strict environmental protection measures are incorporated into the national Constitution and reviewed every year with the eventual goal of 54 million tons of saved C02 by 2010. France is one of the few in the Kyoto agreement to cut such a large amount of emissions so quickly. The country’s laws are comprehensive, covering every layer of production from supplier to producer to consumer. This has helped make France the number one producer of renewable energy sources in the EU, 78% of its energy being nuclear powered, which in turn has reduced nitrogen oxide and other hazardous emissions by 70%.

**

Sources:

http://epi.yale.edu/Home

http://epi.yale.edu/CountryScores

http://www.bemoreeco.com/2009/03/top-10-eco-friendly-countries/

http://www.sussex.ac.uk/International/europe/Sweden.jpg

http://greenferret.files.wordpress.com/2008/09/switzerland-mountain-lake.jpg

http://www.boxturtlebulletin.com/tag/norway

http://www.ippnw-students.org/Chapters/Finland/finland.jpg

http://www.unitedplanet.org/volunteer-in-costa-rica-long-term/images/costa-rica-ocean-view.jpg

http://www.nationalgeographic.com/adventure/0510/photos/Jpegs/NewZealand.jpg

http://www.austria-trips.com/images/Austria-Mountains.jpg

http://www.e-architect.co.uk/riga/jpgs/jurmala_latvia_hoskins_m06.jpg

http://img5.travelblog.org/Photos/61720/335583/p/f/1781.jpg

http://i40.tinypic.com/2qncqxi.jpg

http://www.bargesinfrance.com/premier-burgundy-countryside.jpg

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http://www.pbase.com/pj48/image/45644972/original.jpg

SANTA MONICA TRAFFIC COUNTS

SANTA MONICA TRAFFIC COUNTS

Edited by Jodi Summers

According to the L.A. Times, vehicle counts in Santa Monica showed increases in evening rush-hour traffic from 2002 to 2007 as follows:

Olympic and 20th — 93% increase (7,082 cars every 15 minutes)

Olympic and Cloverfield — 14% increase (5,500 cars every 15 minutes)

Pico and Lincoln — 8% increase (4,844 cars every 15 minutes)

Wilshire & 26th — 7% increase (4,841 cars every 15 minutes)

**

http://latimesblogs.latimes.com/photos/uncategorized/2008/05/19/wheres_the_subway.jpg

NEW MARKET TERMS

NEW MARKET TERMS

We get lots of interesting email…this one, from Sanddra ay Costalife Services rollover@costalifeservices.com gives us a chuckle…

BULL MARKET — A random market movement causing an investor to mistake himself for a financial genius.

BEAR MARKET — A 6 to 18 month period when the kids get no allowance and the wife gets no jewelry.

VALUE INVESTING — The art of buying low and selling lower.

BROKER — What my broker has made me.

STANDARD & POOR — Your life in a nutshell.

STOCK ANALYST — Idiot who just downgraded your stock.

INSTITUTIONAL INVESTOR — Past year investor who’s now locked up in a nuthouse.

PROFIT — An archaic word no longer in use.

SANTA MONICA PROPERTY SNAPSHOT – NOVEMBER 2009

SANTA MONICA PROPERTY SNAPSHOT – NOVEMBER 2009

By Jodi Summers

Here is some good news for the housing market. In its third quarter property analysis the UCLA Anderson Forecast, certainly one of the most respected sources for housing analysis in the country, came to the conclusion that, “The worst recession in seven decades likely ended in the current quarter.”

The not so good news is that the impact of our recession will last well into the next decade. In California, the Anderson Forecast commented that, ”The state will join the nation in its economic recovery, but the incipient contraction of state and local government will damper the impact of the national resurgence for at least the near future.”

SINGLE FAMILY RESIDENCES

Locally, in Santa Monica from October 2007-October 2009, the median single family homes have dropped approximately 6%, from $1,463,000 to $1,375,000,according to Clarus Market Metrics.

In our town, supply is down by 10% while demand has stayed the same between Oct 2007 – 2009

CONDOS

Juicy news in the condo market. Santa Monica condo prices are up 12% from October 2007. 30 properties sold in both October 2007 + October 2009.

Supply is down 32% + demand remains unchanged.

UCLA Anderson Forecast Senior Economist Jerry Nickelsburg noted, “The in housing markets, where prices have adjusted to levels that make existing homes more affordable, sales are increasing and conditions are ripe for new residential construction.”

But don’t get too excited. The Anderson report concludes that, “The roots of the recession originated in consumer over-indebtedness and that consumer spending, necessary for a robust recovery, will be tempered both by the unwillingness of financial institutions to lend and for consumers unwillingness to borrow.”

At least the future is looking brighter.

Looking for some specific details? Would you like to be our client – we’ll take good care of you. Contact the SoCal Investment Group through Jodi Summers, Jodi@jodisummers.com.

**

http://www.clarusresource.com/

http://www.uclaforecast.com/contents/archive/2009/media_91609_1.asp

http://www.dqnews.com/Articles/2009/News/California/Southern-CA/RRSCA091013.aspx