More on the Rising Cost of Gas & its Impact on Real Estate

In my June 20 post, I shared my thoughts about a Los Angeles Times article regarding rising fuel costs. The Times article showed how ridership throughout LA’s public transportation system has increased recently. This mostly likely has to do with the high cost of gas.

I believe that rising fuel costs are going to increase demand in LA’s most desirable neighborhoods, where people can work, eat, and play without hopping in the car.

The rules of the road are changing quickly. Until very recently, parking and traffic were what made car travel such a pain. You’d have to brave our city’s congested freeways only to find yourself paying for parking once you arrived. Now, the cost of fuel is so high that parking your car seems like a bargain in comparison to the price you pay at the pump.

Global warming, green consciousness, and high gas prices will change the way people buy and sell homes. We’re going to see more people seeking to work closer to home. Not only because the commute is so expensive, but because of growing awareness of the impact of cars and their greenhouse emissions.

What does this mean for places throughout LA's Westside--neighborhoods like Santa Monica, West LA, Beverly Hills, and Brentwood? Demand for housing will increase. But I’ll also add that mega mansions may not be the sought after places to live. They are not only expensive to maintain, but people are growing concerned about their environmental impact.

When words like sustainability, carbon footprint, and arctic snowcaps are entering our everyday conversations, it’s clear that we, as real estate professionals, must adjust to how climate change will affect our industry.

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Kit Kat Bars by Michel Richard, Kir Royale, and Books Written for You

On Wednesday evening I held my second book signing at Boulevard 3 off of the Sunset Strip. The bar and lounge is located in the historic Hollywood Athletic club and is the venue of choice for LA's hottest movie premiers, parties, and performances. Peter Famulari, formerly of The Mondrian Hotel's SkyBar is the mastermind behind Boulevard 3.

Over 300 guests attended the event, and I appreciate all the support I received from friends and family. Braving mid-week traffic is never fun, and I’m thankful that so many made the effort to attend.

Guests were treated to a fabulous evening. They entered underneath Boulevard 3’s arch, and they were greeted with an enlarged photo of my book. As they made their way inside they walked through the courtyard where they saw other guests chatting below canopies in private lounge spaces.

Once they entered the club, they saw an animated version of my book projected above Boulevard 3’s fireplace. Howard, my son and sought-after visual effects specialist, created the digital presentation. He also designed the cover. I always receive lots of compliments for the dust jacket. Think “Bewitched” meets Sweet Lady Janes—the popular cake shop located off of Melrose.

My guests included fellow real estate powerbrokers, high profile business professionals, friends, and family. (You’ll see pictures of Saeed, my husband, along with my children and their significant others.)

All of us were treated to cocktails and VOSS water (some took the sleek bottles home). And one of the highlights of the event were the delicacies created by James Beard Award-winning chef Michel Richard.

Citrus at Social, the restaurant whose menu Michel Richard developed is located next to Boulevard 3. Since it’s opening, it has received rave reviews.

We enjoyed his signature creations such as his version of the Kit Kat bar—white or milk chocolate rectangles of mousse mounted atop delicate wafers, spring rolls filled with mushroom, delicately seasoned raw tuna resting at the bottom of a Chinese style spoon that was really a cracker, and corn chowder poured into an eggshell complete with a straw for relaxed sipping.

I was so excited to see friends and colleagues, and I'd get caught up in conversation. My assistant would remind me to continue signing books. And sign books I did. We sold boxes of them, and I wrote a personal message in every single one. I am thrilled to be able to help others reach their goals by reading my book.

In the end, I couldn’t have wished for a more successful event. It's gatherings like these that remind me of the countless connections I’ve made in LA throughout my 20 years in the real estate business. Serving my community for two decades means that I’m proud to call so many people my friends.

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Rising Fuel Prices Increase Demand for L.A.’s Hot Properties

The LA Times ran an article today regarding rising gas prices and increasing use of public transportation.

With gas reaching $5 a gallon, it’s no surprise that commuters are exploring ways to avoid the pump. One alternative is LA’s Metolink and MTA systems.

In the article one rider revealed that he was spending $460 per month on gas. Now he buys a $230 monthly commuter pass instead.

This leads me to the following observations:

It used to be that homebuyers would look outside of L.A’s neighborhoods and opt to live in the Valley or other outlying areas. Prices were lower there, and they’d get more home for less money.

But with the surge in gas prices—and with no promises of relief—I predict that buyers will add the price they’re paying at the pump into their overall home buying budget.

For example, if it costs someone $460 per month to get to work because he lives far from the office, it would make sense that he would consider paying $460 more in his mortgage to live closer to home. The house may be more expensive than in an outlying neighborhood, but he’d save in gasoline and time. Time is money after all.

If high gas prices are the norm—and that ‘s what the news indicates most—then we can expect to see demand in neighborhoods in Los Angeles’s desirable neighborhoods continue to increase.

By desirable I mean communties like Westwood, West LA, and Los Feliz. Places where families live close to work and within walking (or stroller) distance eat good food, shop in chic stores, and attend fabulous performances.

It seems like being tied to the car is becoming less desirable as fuel prices surge. And there's little relief in sight. The result will benefit L.A.’s hottest areas.

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Spring 2008 Sales Update

When the market gets tough, it’s a true test of your personal resolve. I know that news about real estate doom and gloom appears all over the place—and Beverly Hills is no exception. But to survive in this business, you’ll have to expect slumps.

I’ve learned a tremendous amount throughout my 20 years in the real estate biz. I’ve realized that lean times make you work harder, get more creative, and test your mental and physical toughness.

I say mental because you’ve got to negotiate hard on your client’s behalf. I say physical because you’ve got to attend showings, drive back and forth across town, and always be available to your clients.

What is the result of knowing how to work during difficult times? As of this year, my sales figures are higher than they were in 2007. “How can this be?” people ask me. After all, no one is talking about hot markets. And if they were, it doesn’t make headline news. Click on the following link. It’ll take you to a the Forbes.com website. You’ll read facts that indicate there is no real estate slump.

For instance, I just sold an $8.95 million listing in L.A.’s prestigious Hancock Park. It’s one of the highest selling listings in the area for 2008. The location is prime, the home is fabulous, and it sold in 90-days.

The pace of business these days is intense. Meanwhile, agents who jumped on the real estate wave at its crest are dropping out of the business just as fast. I look forward to continue sharing the secrets behind my success.

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Boulevard 3 Fundraiser Last Night

Last night, I attended a fundraising event for Aleinu Family Resource Center. A community outreach organization that provides mental health and social services for the Los Angeles Orthodox community.

In Hebrew Aleinu means “it is upon us.” One of the organization’s most services is their support of children who are victims of sexual abuse. Aleinu provides many other services including counseling for children, teens, and adults and community education programs.

Saeed, my husband, Peter (his business partner), and I provided our space at Boulevard 3 in the Hollywood Athletic Club for the event.

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My Appearance on NBC News

Last night, I appeared on KNBC Los Angeles News, Channel 4, to discusss the latest information about Ed McMahon's home that may possibly go into foreclosure.

Click on this link to see the video on KNBC News's website.

http://video.knbc.com/player/?id=259544

In the following link, the same video appears embedded within a printed article. The video is in the middle of the page at the end of the story.

http://www.knbc.com/entertainment/16490185/detail.html

Once there, I tell viewers how rare it is that homes in LA's Westside will go into foreclosure. I'm glad that I had an opportunity to share the message I've been presenting throughout the sub-prime crisis: There is no slump in Beverly Hills.

His real estate agent said that the home has been difficult to sell. I believe that this is because Mr. McMahon's home is described as being in Beverly Hills, but it's actually in Los Angeles.

This distinction is important. When you buy in Beverly Hills, you're also buying into one of the most well run cities in the country: Good public schools, beautiful public spaces, well organized fire and police departments, world class shopping and dining, and a tight-knit community. Not only are the homes amazing, but so is the city and its amenities. Which explains why inventory has been so low and demand high.

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