California Real Estate Updates and Changes for 2017

2017 Real Estate Changes and Updates for California

I attended the Palos Verdes Board of Realtors March Breakfast meeting yesterday. Although breakfast was delicious, my primary reasoning for being there was to hear Gov Hutchison, California Association of Realtors’ attorney, speak regarding trends and changes reflected in California laws and real estate forms. Here are the latest updates:

1.  There’s a new bedbug form. Yes, those little critters have arrived in our Golden State.  The new disclosure form states landlords must disclose if the property was inspected for bedbugs, and if so, the results of said inspection.  Tenants must tell landlord if the rental property becomes infected; landlord must address issue and eviction of the tenant is not allowed.
2.  Carbon Monoxide/Plumbing form is now mandatory. Low-flow plumbing fixtures are required; it is seller’s responsibility to disclose whether such upgrades are in place. If the plumbing upgrades are not in place, expect it to become a point of negotiations during the sale.
3.  Effective January 2018 real estate license numbers are required to appear on signs, websites, and all marketing.

Other timely tidbits of useful information:

Income units are moving toward individual water meters; they are required in new construction. There is a new Water Meter form for use in the sale of income property.

Landlords cannot discriminate due to applicant’s criminal record (within reason), nor refuse because tenant does not speak English.  The landlord should request the tenant have a translator of tenant’s choice.

A new rental rule is a smoke detector is required in every bedroom–one in the hallway will not suffice.  Many local city ordinances have required this for some time.

The housing shortage in California is generating some relaxation in the zoning for two-on-a-lot requirements.  Granny Flats and Tiny Houses are growing in popularity. State guidelines override some city restrictions.

I’m glad I spent the morning receiving an update on new laws and changes in my industry. It’s one of the many ways I bring value and expertise to my client’s transactions. Norma Toering broker/owner of Charlemagne Int’l Properties independent real estate firm.  310.493.8333 or Norma@CharlemagneProperties.com

About the Author: Norma Toering

Norma Toering is the broker-owner of Charlemagne Intl Properties a boutique real estate company in Los Angeles. She has been a local South Bay real estate agent since 1992. Norma is the most well known & award winning real estate blogger in Palos Verdes. Forbes magazine consulted Norma on Palos Verdes property values when compiling their Forbes 400 list. Cell: 310.493.8333

Builders and Investors Move In - Redondo Beach Heats Up

"Is Redondo Beach next?" This question has been popping up from our income unit investors and builder clients for the last couple years. The answer, based on the competition we are running into when making offers on property, is a resounding "Yes."

Historical and forward looking Beach Cities average property values
(2009-2014 actual, 2015 projections - Zillow)

 

The Manhattan Beach Money Spills Over

In the last 15 years, Manhattan Beach went from a sleepy beach cottage town to a booming, hip city of multi-million dollar ocean view properties. Fueled originally by the run up in values through 2007, it continued the price climb as new families moved in and brought the public schools from average to stellar quality. Next, the "Silicon Beach" tech money rolled in sending ocean frontage Strand homes into the $10,000,000+ range followed promptly by a wave of high income buyers who wanted that relaxed, laid-back lifestyle they had heard so much about.

As the Manhattan Beach prices spiraled upward the builders, flippers and investors all fought over every tear-down home, fixer, vacant lot and even income units. Buyers looking to hold income properties for revenue stream just couldn't compete with the offers from builders who saw millions to be made by putting in new townhomes or luxury ocean view estates on the Strand. It sent many buyers into the next town south, Hermosa Beach. The same wave hit Hermosa and sent those property values racing up. It was only a matter of time before that money started moving south again. The next stop was Redondo Beach.

  

Redondo - Snuggled between the Manhattan Beach and Palos Verdes

Redondo is the largest of the Beach Cities, with South Redondo along the coast and North Redondo tucked just behind Manhattan/Hermosa. It is bordered by the popular Hollywood Riviera section of Torrance and the posh peninsula of Palos Verdes beyond. The ocean frontage section of South Redondo is where we are seeing the most activity, but the North Redondo neighborhoods are also seeing bulldozers moving in to replace older 1950's homes/duplexes with new townhome build outs.

Still Time to Buy in Redondo Beach?

The price escalations have certainly started, but there is still room for profit compared to Manhattan Beach or even Hermosa Beach. The signs of the coming changes are all there:

• Multiple offers - In 2013 we ran into twenty offers on a fourplex in Redondo, but 5-10 offers with half of those being "all cash" was very common.
• Duplexes going to builders instead of income property investors. A strong sign of the market shift to new construction.
• The construction fences. We often drive by homes that sold in the last couple months to see the construction fencing wrapping the property and a demolition crew moving in. The architects, builders, landscapers and crews all cover the fence with their business signs knowing more money is moving in.

Would you like more information on the opportunities available in Redondo, just give us a call.

- Norma Toering Broker/Owner of Charlemagne Int'l Properties (310) 493-8333
- Josh Toering  REALTOR (310) 525-9440

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