It is that time of year again for 2010 Kindergarten Registration for owners of Palos Verdes homes(and/or tenants) who have children entering Kindergarten in the Fall.  This year Kindergarten Orientation will be held on Monday, February 1, 1010, at Vista Grande Elementary School and Tuesday, February 2, 2010, at Dapplegray Elementary School.  Both meetings will begin at 7:00 p.m.

This is an important event if you have Kindgergarten age children because some Palos Verdes elementary schools are impacted. If you want to be assured that your child will go to their neighborhood school, then Kindergarten is the best time to do so. If you move into Palos Verdes after this point, the Palos Verdes Unified Schoold District officials try to place your child in their neighborhood elementary school but as some schools are impacted, new students are redirected to elementary schools where there is room for additional students.

New Kindergarten students for the 2010/2011 school year must be 5 years of age on or before December 2, 2010. Proof of residency is also required. Registration packets will be available at each elementary school on February 17th and should be returned to that school by March 5th. Each of the ten elementary schools will also be holding individual parent meetings and the schedule can be accessed by clicking here.

Photo courtesy of PVUSD

There were 18 homes on the January 26, 2010, Palos Verdes real estate Broker's Tour.  Even with the threat of rain, 18 homeowners correctly gambled that the storm would hold.  It actually started raining 10 minutes before the tour ended.  It was perfect.  We currently have 198 active single family Palos Verdes homes for sale ranging in price from $745,000 in Rancho Palos Verdes to $14,900,000 in Rolling Hills (the low in Eastview is $549,000).  There are 43 townhomes/condos for sale priced between $230,000 and $899,000.  My favorites were:

Young Gill's (Remax Palos Verdes Realty) 30691 Calle De Suenos, Rancho Palos Verdes 90275 (above left) is a 5 bedroom, 7 bath, 6,500 square foot home for $3,299,000.  This Country Club home located in the private Panorama Estates section has panoramic ocean/Catalina views from all major rooms, and a park-like back yard (lot is 32,670 sq ft).   Gayle Probst's (Coldwell Banker P.V./South Bay) 3017 W. Palos Verdes Drive, Palos Verdes Estates 90274 (above right), is a 4 bedroom, 3 bath, 1,983 square foot home for $1,225,000.  This Lunda Bay home has an upgraded kitchen, bathrooms, windows, etc. and is within walking distance to schools and the bluffs.

Cindy Chew's (Coldweel Banker P.V./Beach Cities) 8 Sunnyfield Drive, Rolling Hills Estates 90274 (above left), is a 3 bedroom, 3 bath, 2,057 square foot home for $1,250,000.  This Palos Verdes Drive North home is located on 1/2 acre flat lot, can accommodate horses, and has an updated kitchen.  Chuck Chambers' (P.V. Realty) 28048 Santona Drive, Rancho Palos Verdes 90275 (above right), is a 3 bedroom, 2 bath, 1,600 square foot home for $849,000.  This Los Verdes homes has been remodeled including bathrooms, has a family kitchen and a nice rear yard with brick patio.

Photos courtesy of MRMLS

December 2009 statistics for Palos Verdes real estate indicate a very strong month for single family residences compared to December 2008 with both sales and pendings doubled.  45 Palos Verdes homes sold/closed escrow in December 2009 compared to 25 in December 2008.  38 Palos Verdes homes had pending sales in December 2009 compared to 16 in December 2008.  Additionally, in December 2009 there were 190 Palos Verdes homes for sale compared to 275 in December 2008 .  This is good as a decrease in supply coupled with a consistent demand keeps prices stable.

The average price for single family Palos Verdes homes that sold in December was $1,555,000 which is up from November at $1,122,000.  (7 homes sold over $2,000,000 - including one at $6,400,000 and one at $5,920,000).  Average price per square foot for Palos Verdes homes was also up in December 2009 at $517.  Average Days on Market in December increased to 84 days from 76 days in November.  Months of Inventory (months it would take to sell existing inventory at the current rate of sale for December was 4.2 which was a month decline from November. 

Currently, there are 196 Palos Verdes homes for sale.  Additionally 43 homes have pending sales, 41 homes are in escrow accepting backup offers and 30 homes have sold/closed escrow in the first 29 days of January

In 2009, Palos Verdes homes sales increased 19% with 462 single family home sales compared to 388 in 2008.  Palos Verdes homes experienced a 16% decline in 2009 average sales prices compared to 2008.  It did not feel like double digits so I researched further. 

The sales mix changed significantly which is reflected in the lower average sales price.  In 2009, 38% of Palos Verdes homes sold were under $1,000,000 compared to only 28% in 2008.  In addition, in 2009 the high end, over $2,000,000, fell to 10% from 16% in 2008.  The very high end, over $5,000,000, was only 1% of Palos Verdes home sales compared to 2.5% in 2008.  In other words, we had more low end homes sell in 2009 and less high end sales which contributed to the overall decline in average sales price.

Did the entire Palos Verdes Peninsula which is comprised of 4 different cities (Palos Verdes Estates 90274, Rancho Palos Verdes 90275, Rolling Hills and Rolling Hills Estates) experience a 16% decline in price?  Absolutely not.  As a matter of fact, 2 neighborhoods actually showed an increase in average sales price - Monte Malaga in Palos Verdes Estates with an average sales price of $2,247,246 ($2,067,647 in 2008) and the city of Rolling Hills with an average sales price of $2,600,412 ($2,515,752 in 2008).  Pricing is really determined by the neighborhood, location and condition of the home.

Owners of Palos Verdes real estate who  purchased a home after July 1, 2003, may have seen a decline in value in which case they may apply to the Los Angeles County Tax Assessor for a reduction in property taxes. Below is a new posting from the Assessor's website:

"Effective January 1, 2010 there are two significant changes in the filing process for decline-in-value reviews.

1. The new filing period will be from June 1 through November 30, 2010.
2. The property owner or authorized agent will be able to submit a request for a decline-in-value review online."

Property owners may check the LA Tax Assessor's website after March 1, 2010 to see if their home was one of the hundreds of thousands of homes included in the proactive  review by the Assessor.   The results of that review will be posted by June 30th.  If your home was not listed and you feel you have experienced a decline in value, you may apply after June 1, 2010 (and before November 30).   And applications may be done on-line which will be easier.

Last year, the property owner's application had to show 3 comparable properties that sold between January 1 and March 30 which was tough for some homeowners as there generally are not as many closed sales in the first quarter  compared to the second or third quarter .   It will be interesting to see if the Assessor has the same requirements for 2010.  Click here to read entire article from Los Angeles County Tax Assessor's website.

What home improvements and remodeling projects give the greatest return on their investment?  For owners of Palos Verdes homes (and the rest of  Los Angeles County who choose upscale remodeling), the answer for 2009-2010 is siding replacement, window replacement and a grand entrance according to an article in the latest National Association of Realtor's magazine which came from a survey by Remodeling magazine.

"The majority of the 10 remodeling projects with the best return on investment nationally are a testament to pragmatism.  Six of the 10 projects - siding and window replacement using a variety of materials - involve home maintenance that costs less than $14,000...Additional data prove the value of restraint.  Upgrading kitchens and baths is still a smart bet.  However, home owners will recoup the greatest share of their costs by foregoing super-deluxe projects in favor of mid-range kitchen and bath remodels.  A mid-range kitchen remodel brings an average 72.1 percent return on investment (93.7 in L.A. County), while an upscale kitchen re-do returns only an average of 63.2 percent of the money invested" (78.7 in L.A. County).  That's a 15 point spread.

Owners of Palos Verdes homes remodel for different reasons, like the need for more space, to improve the functionality of specif rroms and to update them.  Kitchen and bathrooms are usually the most expensive remodel as plumbing and/or appiances need replacing.  Remodeling just for resale rarely nets you a dollar for dollar return.  Most remodels are done for the enjoyment of the homeowner (who still wants to maximize their return when they do sell).  My experience is that most buyers are looking for newer kitchens, bathrooms, master suites and nice yards.  Curb appeal is important because it is the buyer's first impression of

Buyers of Palos Verdes homes often ask what a loan point is.  My clients who are refinancing also have the same question.  Here is a very concise explanation provided by a Bank of America loan officer:

What exactly are "points"?  What tax benefits accrue from "points"?  What is the "APR" and in what ways is it important?  And what are the benefits to home sellers who may consider paying a buyer's "points"?  We look at the basics here, urging you to take your specific questions to your tax advisor, while hoping to help you better formulate those questions.

Traditionally, a "percent" is often expressed as one or more "points."  Thus, if you pay two percent of the loan amount to originate a loan, you are paying two "points."  It realy isn't any more exotic than that.

If the loan is a mortgage, the total origination fee will be a combination of points and fees for services, like the appraisal fee, the escrow fee, the recording fee, and other costs.  If the mortgage is for the purpose of buying a home, known as a "purchase money loan," then the points are deductible on your tax return for the year in which the home was purchased.  The other fees are not deductible.

Further, points paid on a refinanced mortgage are not fully deductible in the year of the transaction.  Instead, the deduction is spread (or amortized) equally over the full life of the loan.

This raises an important question.  What happens when you refinance a mortgage that has already been refinanced; that is, what happens when you refinance a second or third time?  The points paid for the prior refinanced loan become deductible in the year of the newly refinanced loan.

Points are considered prepaid interest.  They are one part of the overall interest you pay on your loan.  That is why we can deduct them against our ordinary income on our personal tax returns (remembering that the deduction schedule is different, depending on whether the loan is a new purchase money mortgage or a refinanced loan).

Understanding what points actually are and the basics of how they work can open up a world of possiblities.  Consider this: if the stated interest rate on a mortgage is surprisingly low, the lower interest rate may often be counter balanced by higher points.  Thus, one loan may bear an interest rate of 5.5% and another 5.625%.  The first loan obviously looks better than the second - until you look closely at the origination points.  Often the first loan requires slightly higher points, and the difference in the life-of-loan interest costs for each loan could be minimal as a result.

In order to make certain that consumers are aware of the expense that higher points can add to a loan, the government long ago required lenders to provide an "APR" calculation on loan settlement papers.  The Annual Percentage Rate (APR) blends the interest cost of the points and other fees into the potential life-of-loan interest payment, and then provides a new, "adjusted" interest rate that takes into consideration the loan points and associated fees.  This sounds confusing because, frankly, it is.  At best, it provides a way of comparing two loans and seeing which will cost more in the long run.

What makes far more sense is the fact that you can often pay higher points in order to pay down your loan's interest rate, and make your monthly payment smaller.  You will want to discuss such possibilities with your Mortgage Loan Officer, tax advisor and financial advisor.  You may also want to look at the life-of-loan savings you can create with an accelerated pay-down of your mortgage, adding to each month's principal payment and thus, if it is a fixed-rate loan, decreasing both the number of years in which you make loan payments or, if it is an adjustable rate mortgage, potentially lowering the monthly payment when the loan adjusts.  In either case, you an lower the life-of-loan interest that you pay.  (Keep in mind that an amortization schedule simply adjusts each payment so that is pays all of the interest owed on the loan balance if paid in monthly payments.  Lower the loan balance by making larger payments to the principal balance of the loan, and you will owe, and pay less interest towards the principal.)

Also worthy of discussion, when you are selling your home, is the possibility of helping the buyer by paying the points on his or her purchase money loan.  Not only is the seller allowed to do this, but the tax deduction for those points can be taken by the homebuyer, which provides a large value incentive for them.  The home not only meets the home buyer's needs, it also costs less to purchase and decreases the buyer's tax liability.  Again, be sure to discuss these options with your tax and financial advisors.

There were 15 homes on the January 5, 2010, Palos Verdes real estate Broker's Tour which was our first for 2010 .  We currently have 181 active single family Palos Verdes homesfor sale ranging in price from $775,000 in Rancho Palos Verdes to $14,900,000 in Rolling Hills (the low in Eastview is $499,000).  There are 44 townhomes/condos for sale priced between $230,000 and $899,000.  May favorites were:

Mardi Tobias and Steven Watts (Remax Palos Verdes Realty) 2104 Via Acalones, Palos Verdes Estates 90274 (above left), is a 5 bedroom, 5 bath, 5,002 square foot home for $3,250,000.  This spectacular Monte Malaga Mid-Century Modern estate features dramatic glass walls, slate floors, breathtaking entertaining areas on 3/4 of an acre.  Les Fishman's (Coldwell Banker) 4409 Lucera Circle, Palos Verdes Estates 90274 (above right), is a 3 bedroom, 2 bath, 1,903 square foot home for $985,000.  This well-priced Valmonte home is ready personalization, has city and mountain views and a park-like backyard.

Pearl Kaperl's (Remax Palos Verdes Realty) 4150 Roessler Court, Palos Verdes Peninsula 90274 (above left) is a 3 bedroom, 2 bath, 2,063 square foot home for $1,049,000.  This Academy Hill home on a cul-de-sac has a separate family room and a pool.  Steven Watts' (Remax Palos Verdes Realty) 3704 Via Palomino, Palos Verdes Estates 90274 (above right), is a 4 bedroom 3 bath,2,576 square foot home for $1,795,000.  This charming Valmonte cottage features an open floor plan, an upgraded kitchen and a lush English garden

Photos courtesy of MRMLS

Hiking in Palos Verdes takes you through varied terrain usually with spectacular ocean views. There are 4 different trails which can be accessed from Del Cerro Park.  All four trails are part of the Canyons Ecological Reserve and vary in length from 2 to 4 miles.

Rim Trail is 3.9 miles round trip, Ailor Cliff Trail is 3.2 miles round trip, Peacock Flat Trail is 2.1 miles round trip, and Del Cerro To Ladera Linda Trail is 2.9 miles one way.  All trails begin on the dirt Crenshaw.  Hikers are advised to bring water.  Some trails in the Portuguese Bend Reserve are closed following the August fire.  Please click here for a map of the open trails.

As I did last year, I thought it would be fun to go through 2009's Top Tuesday Tour Tips for Palos Verdes homes and pick my favorites, tell you why and give you an update on those properties.

My favorite listing is Chris Adlam's (Remax Palos Verdes Realty) 2775 Via Oleadas, Palos Verdes Estates, 90274, (above left) is a 4 bedroom, 4 bath, 3,568 square foot home that was originally listed for $4,999,000 and sold in August for $5,000,000.  This Lunada Bay ocean front estate has breathtaking ocean/bay views upon entry through the front door and from nearly every room in the house; it also had a tennis court right next to the ocean bluff and a pool!    Morena Cohen's (Shorewood Realtors) 1633 Via Arriba, Palos Verdes Estates, 90274, (above right) is a 4 bedroom, 5 bath, 4600 square foot home that was originally listed for $3,995,000 and sold in August for $3,199,900.  This fabulous custom-built single-level Malaga Cove home is one of my favorites because it has panoramic ocean and queen's necklace views, a wine cellar, 4 car garage and is on an exceptional double lot (20,717 sq ft).

Pamela Lieb's (Remax Palos Verdes Realty) 32 Strawberry Lane, Rolling Hills Estates, 90274, (above left) is a 3 bedroom, 3 bath, 3,246 square foot home that was originally listed for $1,899,000 and sold in December for $1,875,000.  This Equestrian Estate is located on a magnificently level 50.090 square foot level lot and features a solar heated pool and a rare 20×50 meter Dressage Riding Arena (photo above left); there are only 2 such dressage arenas on the entire Palos Verdes Peninsula.  Sue Murphy and Marie Hoffman's (Keller Williams Beach Cities) 30581 Rue Langlois,, Rancho Palos Verdes, 90275, (above right) is a 4 bedroom, 2 bath, 1,670 square foot home that was originally listed for $1,050,000 and sold in June for $975,000.  This comfortable West Palos Verdes home has fabulous ocean views, remodeled bathrooms and was freshly painted inside and out.  This is one of my favorite areas in Palos Verdes as it has unobstructed panoramic views for under a million dollars.

Photos courtesy of MRMLS