2010 West Hollywood Market: Single Family Market Off 29% From 2007 High; Median Condo Price Unchanged from 2009 to 2010. Establishing the Foundation for a New Market Bottom?

West Hollywood  - Single Family Market
In 2010, the single family home market in West Hollywood took another step down in price to a median of $779,000.  Since the market peaked in 2006 - 2008, the median sale price has declined 29% and now stands at 2003 - 2004 levels.  In our opinion, the market that has spiralled downward for the past two years is establishing the base for a new market bottom. But for now, the only apparent trend is a steady decrease in median price.

In the long run, West Hollywood real estate has been an excellent investment.  Since 1996, the median sale price of a single family home in West Hollywood has increased 214% in value, from $248,000 to $779,000.  Consider that the S & P 500 has increased only 86% during the same time. Also, consider that with a $50,000 downpayment in 1996 (and a 30-year fixed loan), a buyer of a median-priced home in West Hollywood by 2010 could have created $625,000 of equity, an outstanding return by any measure.

Timing is everything, and the short term story differs greatly from the 14-year "buy and hold" strategy portrayed above.  The value of a home purchased in West Hollywood after mid-2003 is likely below the original sale price.  The market appears to be in the process of bottoming out, and these homeowners in the future have the potential to recoup their losses, but for now they're "underwater" with regard to their purchase price.

What led to the huge run-up in prices in 2005 - 2008?  Easy jumbo loan financing, which allowed buyers to obtain loans greater than $729,750 with stated income (affectionately called 'liar loans'), fueled the buying boom during these peak years.  During this heyday, a buyer could obtain a loan to purchase a million dollar home with no verification of income or assets.  Is there any surprise there was a real estate bubble?

Now, jumbo loans are nearly impossible to obtain, and financing a million dollar home entails putting down $270,000 and obtaining the maximum $729,750 "jumbo conforming" loan.  Since a 25%+ downpayment is required to make this purchase, the buyer pool has dwindled vs. the days when little or no downpayment was required. 

The 29% drop in prices since the boom reflects: (1) borrowers' weakened financing following the economic crisis; (2) greater downpayment requirements for some loans; and, (3) tightened loan underwriting guidelines, which has eliminated many aspiring buyers from the purchasing pool because they can't qualify for a loan.

West Hollywood  - Condo Market

The condo market in West Hollywood, like the single family market, experienced its peak in 2006 - 2008 and has seen declining prices since that time.  In 2007, the median price of a West Hollywood condo was $620,000; in 2010, it stood at $499,000, a decline of 20% in median value.

Because of their lower price point, sales of West Hollywood condos were much less impacted by the unavailability of jumbo loan financing than single family homes.

One important point to note is that the median price of a West Hollywood condo was virtually unchanged from 2009 to 2010 (a decline of a mere $1,000).  We see this as an indication that the West Hollywood condo market has now stabilized.  Barring huge increases in interest rates, will believe there will be no further price declines in 2011.   The pervasive, negative buyer sentiment is perhaps out of line with a market that is recovering.

We hate to mix metaphors ... but we'll do it anyway.  Our assessment of the West Hollywood condo market: we are far from "out of he woods" but buyers should now finally be able "to see the forest for the trees."

Penthouses on Sale at Harper West Hollywood - Loft-Style Living, Impeccable Interiors, and Views for Miles and Miles

Harper West Hollywood, the 32-unit new condo project at 1250 N Harper Avenue in West Hollywood, has just lowered the price on two of the penthouse units.

Penthouse Unit #307 is located in the rear building that contains 8 units, including 3 penthouses.   Unit #307 is the middle penthouse, with 2 bedrooms, 2 baths, 1,465 sq ft of living area and amazing picture windows with views to the west -- and one of the best roof decks around.  The price has been reduced to $699,000 from a former $834,000 asking price.



Penthouse #423 is in the front building that contains 6 penthouse units.  This unit is a spacious 1,932 sq ft, with 2 bedrooms, 2 baths and 200 sq ft of private deck.  What makes this unit so special is the loft-living with a fantastic upper level that can be a bedroom or guest bedroom, workspace or entertaining area.  Did we also mention that Penthouse #423 has a fantastic walk-in closet?  This unit was formerly priced at $944,000, and is now offered at $799,000.



We'd also like to show you a video walk-through of Unit #410, which is a 1 bedroom, 1.5 bath, 2 story unit priced at $529,000.  It has 1,326 sq ft of living area, and includes great features such as  access via a private stairway, walk-in closet, and great, open living-dining area.



Check out the main Harper West Hollywood website for more information about floorplans and pricing:

www.harperwesthollywood.com

**************************************************************************************If If you have questions about Harper West Hollywood, please call us at (310) 845-6810 or email us by clicking on this link.

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Harper West Hollywood Cuts Prices, Nets Buyers Best Quality, Best Location at Best Value

Harper West Hollywood, a 32-unit new condo complex in one of the best residential neighborhoods in West Hollywood, has cut its prices by a total of 12%, making this the best quality, best value around.  One bedrooms are priced under $500,000 and 2 bedrooms start in the mid-$600,000s.  Buyers take notice.

Look at these units that are for sale:

• Unit 403 - 1 br/1.5 bath- 1,382 sq ft with 481 sq ft terrace - 1st Floor unit - $554,000 ... now $499,000
  
• Unit 411 - 1 br/1.5 bath - 1,326 sq ft with 29 sq ft terrace - 2nd Floor, 2 level unit - $589,000 ... now $519,000
• Unit 413 - 2 br/1.5 bath - 1,367 sq ft with 101 sq ft terrace - 3rd Floor unit - $794,000 ... now $674,000
• Unit 303 - 2 br/2 bath - 1,521 sq ft with 148 sq ft terrace - 2nd Floor, 2 level unit - $719,000 ... now $624,000
• Unit 308 - 2 br/2 bath - 1,451 sq ft with 311 sq ft terrace - Penthouse Loft - $849,000 ... now $764,000

Adner Realty Group is honored to be doing the online and social media marketing for this project and will be updating you with more photos and media on these units.  You can check out the official project Blog by clicking on this link.

Check out a video walk-through of Unit 308 -- Now note the reduced price of $764,000, from $849,000:

And take a look-see at Penthouse Unit 419, which has been reduced to $899,000, from $954,000:



Finally, take a gander at Unit 401, which has been reduced to $514,000, from $589,000:



We may be biased, but we love this project and the value that it offers.

Harper West Hollywood
1250 N Harper Avenue
West Hollywood, CA 90046

Legendary Place West Hollywood Debuts 23 Units with 3- and 2-Bedroom Layouts that Impress

Legendary Place, a new 23-unit condo buildings has just opened its doors at 1411 N Detroit Avenue in the West Hollywood area.  In a city chock-a-block full of condo buildings of all stripes, Legendary Place stands out for its straightforward apartment type floorplans (with a few townhouse-style units thrown in for good measure) with large square footage and high bedroom and bath count.

Prices range from $645,000 - $939,000 (approx. $435 - $535/sq ft).  The four-story buildings, has eleven 3 bedroom, 2.5 bath units and twelve 2 bedroom, 2.5 (or 2.0) bath units.

There is an open courtyard style plan, that eliminates long corridors and walkways.  Get off the elevator and walk into these spacious floorplans that range in size from 1,380 sq ft - 2,085 sq ft.

Kitchens are high-end, with a design neutral enough to appeal to a broad audience.

There are plenty of balconies, and the floorplans are flexible enough to be suitable for a wide segment of the population.  Units are easy to share with family members, roommates and pets.

Baths are clean with all the fittings buyers have come to expect.  Many buyers will find that Legendary Place is exactly what they need: a large, centrally-located building that's not too big and not too small.

Legendary Place
1411 N Detroit Street
Los Angeles, CA  90046

Sold by Sotheby's International Realty

Adner Realty Group presents the Harper West Hollywood Blog - Stay Updated on this Not-to-Miss 32-Unit Condo Project in West Hollywood

We are pleased to announce that Adner Realty Group will be doing the online marketing for the excellent Harper West Hollywood condo project that just launched at 1250 N Harper Avenue in West Hollywood.

Updated August 27, 2010: Prices have been reduced an average of 12% -- check out the new, incredible values by clicking on this link.

We have been long time fans of this innovative project, and we eager to tell you more about it. Please check out the Harper West Hollywood Blog that for updates on the project and compelling stories such as:

• "How Green is West Hollywood? Visionary City Implements Earth-Friendly Standards"
• "Harper West Hollywood: Modern Edge Meets Vintage Cool"
• "The Gardens of Allah (Circa 1921): Russian Starlet Builds 'Sinful' Haven Off Sunset"
  
  You can also check out (and "Like") the Harper West Hollywood Facebook Page.
  
  We've previously sung the praises of this project. Here are seven reasons why we love it so much:
  
  
  
  1. A great architectural plan. Two new buildings (24 units and 8 units) that are blended with a historic preservation project of two Spanish fourplexes.
  2. A great mix of units. 1, 2 and 3 bedroom units, floorplans that include ground floor "flats", two-level duplexes, and penthouses.
  3. Room enough to spread out. Units range from 1,260 sq ft - 1,932 sq ft.
  4. Indoors meets outdoors. With plenty of balconies and open space, this project which has been conceived with a courtyard-style architectural plan that integrates indoor and outdoor space.
  5. A neighborhood that delights. This location can't be beat: all the conveniences and excitement of West Hollywood and Los Angeles at your doorstep.
     
  6. Keeping it green. The building incorporates renewable materials, energy-efficient heating, cooling, plumbing fixtures and appliances, and a design that promotes natural light and cross-ventilation.
  7. Keeping it real. Prices range from $554,000 - $954,000.
  
  Harper West Hollywood
  1250 N Harper Avenue
  West Hollywood, CA 90046
  
  www.harperwesthollywood.com

West Hollywood 2010 (First half): New Construction Sells for $440 - 500/sq ft; Despite Some Sales, Market Still in Doldrums

What they sold for. West Hollywood new construction is selling in the $440 - 500/sq ft range and a number of buildings with few sales finally had units close.

The Vue at 921 San Vicente Boulevard, with five units, had a second sale at $491/sq ft. (List price $999,000 -- closing price $840,000).

8265 Fountain Avenue, with 7 units, had its first closed escrow at $501/sq ft (asking $537/sq ft).

Habitat 15 at 1322 N Detroit Street has had 5 sales (of 15 units) in 2010, with closings at $438/sq ft (asking $470/sq ft).

But one, all 16 units at 841 Westmount are now sold. Five units closed in 2010 at $501/sq ft (asking $533/sq ft). By way of comparison, units sold for $542/sq ft in 2009 (asking $582/sq ft).
Units at the Luminaire at 928 Croft Street are selling at $453/sq ft (asking $480/sq ft) in 2010. 7 of 12 units have closed this year.


One of the five units at 950 N Orange Grove Avenue sold for $400/sq ft ($413/sq ft), the lowest level in the West Hollywood area. (The 2,000+ sq ft area of these units skews the data, and we have excluded it from our "$440 - $500/sq ft" quote). Resale units in West Hollywood are averaging $444/sq ft in 2010, not much different from the higher-quality, undepreciated new buildings.

Many buyers are benefiting from the low prices of new construction as the business-minded sellers (developers, receiver, banks, and the like) are often more willing to make a deal than individual owners.

Prices are flat, plenty of inventory remains, and the market is still skewed in favor of buyers. Those who are qualified and can get into the still-expensive West Hollywood area have a smorgasbord of excellent options.

Harper West Hollywood Unveiled - 32 Stellar Condos Almost Ready to Make Their Mark in West Hollywood

Construction fencing is down at Harper West Hollywood @ 1250 N Harper Avenue, a big, bold new complex in the heart of West Hollywood.

Updated July 8, 2010:  Adner Realty Group is pleased to announce that we will be doing the social media and online marketing for Harper West Hollywood.  Please check out the Harper West Hollywood Blog and the main Harper West Hollywood website.  Even better, come check out the project and see it for yourself!  Units start at $499,000.

Updated August 26, 2010: Prices have been reduced an average of 12% -- 1 bedrooms starting at $499,000, 2 bedrooms starting in the low $600,000s.  With interest rates at historic lows, and many, many excellent floorplans to choose from, opportunity knocks!  Check out the new pricing by clicking here.

We've had a chance to tour the units, and the end-product exceeds the high expectations that we had last August when we wrote about the complex. This is a maverick new construction and historical preservation project with 40 residential units:

• 24 condos -- new construction (left, in photo above)
  
• 8 condo units -- new construction, preserving facade of previous building (center, in photo above)
  
• 8 rental units -- renovation of 2 existing Spanish fourplexes (in photo below)
  

Where this project gets really interesting is the unit mix, and buyers will have lots of unique floorplans to choose from. The left tower has 5 stories and 24 units:

• 6 penthouse units of 1,788 - 1,932 sq ft -- floors 4 and 5. All are 2 br, 2 bath (except one 3 br, 2 bath).
  
• 8 "crossover" duplex units of 1,286 - 1,326 sq ft -- floors 2 and 3 -- two-floor units with entrances on the 2nd floor. 4 units have entrance on the north side, 4 units have entry on south side. All 1 br, 1.5 bath.
  
• 10 "flats" on a single level of 1,260 - 1,518 sq ft -- on floors 1, 2 and 3. Some are 1 br, 1.5 bath, others are 2 br, 1.5 bath.
  

The rear building with the Spanish facade has 4 stories and 8 units:

• 3 penthouse duplex units of 1,451 - 1,484 sq ft -- on floors 3 and 4. All are 1 br, 2 bath.
  
• 3 two-level duplex units of 1,455 - 1,527 sq ft -- on floors 2 and 3. All are 1 br, 2 bath.
  
• 2 garden-level "flats" of 1,679 - 1,799 sq ft -- on floor 1. Both are 2 br, 2 bath.
  

Balconies and incredible views abound (as do boatloads of high-end finishes.) And did we mention the 81 parking spaces?

Harper West Hollywood
1250 N Harper Avenue
West Hollywood, CA  90046
email: sales@harperwesthollywood.com
tel: 323-848-8211

Hacienda Lofts @ 1137 Hacienda Place, West Hollywood: 8 Units by Barney's Beanery and Palihouse (and IHOP for Breakfast)

The Hacienda Lofts at 1137 Hacienda Place in West Hollywood offers 8 units designed in a contemporary, minimalist style that will appeal to many buyers. There are two smaller units (1,304 sq ft) priced at $595,000 and six larger units (1,530 - 1,665 sq ft.) priced $749,000 - $795,000. This amounts to $450 - $520/sq ft.

Units come with two tandem parking spaces and HOA are about $320 (on the low end for the area). The building has unique, multi-level floorplans that surround a courtyard.

The kitchen area is merged with the living area. Range/oven and refrigerator are Kitchenaid. Flooring is wide-plank, light-colored wood and concrete.

The building has views north to the Hills and south the the Flats. Rooms are light and bright.

Bathrooms have Duravit fixtures, wooden cabinetry, and finishes on par with comparable projects in the area.

Master baths come with tubs.

There are many micro-neighborhoods in West Hollywood, and residents at the Hacienda Lofts will appreciate the proximity to some of the local businesses, eateries, watering holes, and hotels.

Just down the street, the legendary (and notorious) Barney's Beanery, the final stop on famous Route 66, has been serving beer and chow for generations. Steps away, Palihouse, an intimate hotel-long-term residence-restaurant-bar-social scene, recently opened its doors. And the Mondrian (Sky Bar) is just up and Sunset. And did we mention there's an IHOP right near you, too?!?

Hacienda Lofts
1137 Hacienda Place
West Hollywood, CA 90069

Sold by deasy / penner& partners

Median Sale up 18% in Los Angeles Neighborhoods Since January 2009 - Sales Velocity Increasing - Market in Strong Recovery

We periodically like to take a snapshot of the home market and to see how sales are trending in the Beverly Center - Miracle Mile, Hancock Park - Wilshire, Hollywood Hills East, Los Feliz, Silver Lake - Echo Park, Sunset Strip - Hollywood Hills West and West Hollywood neighborhoods.

The charts above and below focus on the percentage of houses in contract, which in our mind is a barometer for sales velocity -- the degree to which available properties are being purchased.

In the over-$1 million sector (above), we can see a defined low in approximately January 2009, during the worst throes of the financial crisis. Since then, the percentage of homes in contract has increased consistently, experiencing a defined bump in March 2010 when more than 12% of homes were in contract. Overall, the over-$1 million market has been on the slow upswing for over a year.

The under-$1 million market shows a similar trend. Sales reached a low point during the winter of 2008 - 2009 and have been increasing steadily since that time. These sales velocity charts tell a story that parallels that of the economy in general: month by month, since the financial maelstrom took its toll, the local housing market has been in recovery.

Pricing trends mirror those of sales velocity. The median sale price in these areas reached a low of around $880,000 during January 2009. Since then, the median sales price has been increasing steadily, attaining $1,040,000 in March 2010. This amounts to an 18% increase in median price in just over a year.

The data for this segment of Los Angeles fail to support the voices of doom about housing. The median sale price in a big chunk of LA is over $1 million and rising, sales velocity is increasing, and the oft-repeated comment that LA is a very expensive place to live is becoming more and more true each day.

751 N Fairfax Avenue - Lofts at Cherokee Studios Brings Sophisticated Pugh + Scarpa Design and "Green" LEED Platinum to West Hollywood

There's a lot to fall in love with at the Lofts @ Cherokee Studios, an eco-friendly project at 751 N Farifax Avenue in the West Hollywood area.

Twelve unique floorplans have been carved out from this site, ranging in size from a 1,197 sq ft 2 br - 1 ba lower floor unit to a 2,275 sq ft 3 bd - 2.5 ba two-level penthouse unit.

Updated September 2, 2010: Adner Realty Group is pleased to announce that we are representing the first buyer in escrow for this esteemed project!   There are still 11 great floorplans to choose from.  Prices have been lowered across the board, and range from $549,000 - $999,000.

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Adner Realty Group has its finger on the pulse of the Los Angeles condo market. If you have questions about Cherokee Lofts or other buildings, please call us at (310) 845-6810 or email us by clicking on this link.

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All units surround a central courtyard, which has a network of intersecting walkways.

What is not visible at a first glance is the astounding list of green features, which includes:

• High-efficiency air filtration, double walls with two layers of sound insulation, 20kW solar electric array by Kyocera, electric car charging capabilities for every unit, high efficiency tankless water heaters, high efficiency Variable Refrigerant Flow Heating and Cooling System by Mitsubishi ... (the list goes on!)
  

One of the two penthouses (#6) shows off the Forest Stewardship Council (FSC) certified oak flooring and kitchen tiles made from recycled skateboards (very cool, never seen anything like it).

Kitchens and bathrooms feature Erin Adams Design and Walker Zanger tiles giving each unit and each room a signature look. Ranges are from Bertazzoni and all other appliances are high-end stainless steel. (Unit #7 shown here).

A second penthouse unit (#8) showcases the great design of Pugh + Scarpa Architects, who thought about how to maximize light and create open, well-ventilated spaces.

The lower floor of Unit #8 showcases additional living area, which is considered the third bedroom.

Bathrooms are high-end and are separated from the bedrooms by a sliding glass panel.

Although the front of the building faces busy Fairfax Avenue, units facing the rear look westwards, offering some great views of the hills.

The capstone to the project is the "living" green roof with drought-resistant landscaping.

Lofts @ Cherokee Studios is an incredible work of contemporary design and environmentally-friendly living. The only trade-off is that it's located on a major thoroughfare. For those undeterred by living on this axis, this project is certain to rank as a long-lasting standard of quality living in the West Hollywood area.

Lofts @ Cherokee Studios
751 N Fairfax Avenue
Los Angeles, California 90046

Sold by deasy/penner and partners

855 Croft Avenue: Impeccably-Styled City Flats in the Heart of West Hollywood

855 Croft Avenue, a new 33-unit complex in the West Hollywood area, offers buyers a winning combination of practical floorplans, top finishes, abundant storage, and a central location between Santa Monica Boulevard and Melrose Avenue that can't be beat.

All units include 2 bedrooms and 2.5 baths on a single level, with balcony. The 29 units on the lower three floors of this four-story complex range from $695,000 - $845,000 for units ranging from 1,385 sq ft - 1,469 sq ft. Four penthouses with extra-large terraces are priced at $1,295,000 - $1,495,000. HOA are $367 - $428/month. Units come with 2 tandem parking spots.

Unlike other buildings, where developers have tried to carve up the typical cubic structure of a building mass into multi-level, unique floorplans, these developers have opted to make the layouts of all non-penthouse units uniform and single level. The kitchen, near the entryway, comes with attractive zebra-striped cabinets, glass-tile backsplash, and lots of high-end fixtures.

The kitchen includes a Bertazzoni Range, Bosch refrigerator and dishwasher, and a Sharp microwave. Counters are Caesarstone.

Flooring options include a chocolate dark brown or a light oaky color. The kitchen-living area is open, with plenty of space to hang out.

Off the living area and one bedroom is a terrace (110 sq ft on the second and third floors).

The two baths are decked out with quality finishes that include Lacava sinks and Villeroy & Boch toilets. One bath includes a shower only.

The master bath includes tub, shower and dual sinks.

The first floor units each have an extra-large outdoor area that ranges from 638 - 978 sq ft.



The penthouses offer terraces that range in size from 800 - 1556 sq ft. Enjoy a walk-through of Penthouse #4.

West Hollywood currently offers a wide array of new construction units. 855 Croft Avenue is a great addition to this mix, distinguishing itself by keeping it elegant and simple, and offering buyers exactly what they want: a big, comfortable place to call home.

855 Croft Avenue
Los Angeles, CA 90069

Sold by Deasy/Penner & Partners.

SoHo House West Hollywood to Open Doors March 8 - Sophisticated Digs Brings Old Hollywood and English Gentleman's Club Just in Time for Oscar Season

At long last, the wait is nearly over. At 9200 Sunset Boulevard, at the border of Beverly Hills and West Hollywood, the Los Angeles outpost of SoHo House is finally emerging from a cloak of cranes and construction and will open its doors March 8, just in time for Oscar.

The Waldo Fernandez-designed 20,000 sq ft penthouse at Luckman Plaza will include 360 degree views, a bar, a rooftop garden lined with olive trees, and beautiful scenery in and out.
In case you want to keep tabs on the activity at SoHo House you might consider some very fine real estate in the Doheny Estates - Bird Streets neighborhoods, such as 1260 St Ives Place, pictured above. This 5 bedroom, 8 bath, 8,644 sq ft Mediterranean-style home is located at the end of a cul-de-sac and offers privacy, comfort and lots of sky.

The views are panoramic from Downtown to the ocean. SoHo House and the Sierra Towers are right at your feet. The house was just listed this week at $7,895,000.
Just down the road, you'll also find 9066 St Ives Drive, a jazzy contemporary home with 3 bedrooms, 5.5 baths, and lots of living area on multiple levels. The house has been on the market since last June and its price has been drastically lowered to $6,595,000.

Another prime home is close enough to SoHo House so you can invite a few friends over for a swim after hours. 1424 Tanager Way was listed last month at $8,695,000. With 3 bedrooms, 4 baths, an 80' infinity pool and a 1,000 sq ft master suite, you'll find plenty of comfort and luxury to wile away the hours.

SoHo House West Hollywood -- opening March 8, 2010