Partners Trust Q1 Market Stats from Lisa Kirshner

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PARTNERS TRUST QUARTERLY LOS ANGELES RESIDENTIAL MARKET REPORT 2016 | Q1

Q1 2016 MARKET STATS

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LOS ANGELES & WESTSIDE

4

COASTAL COMMUNITIES

5 THE HILLS

8 WESTSIDE The first quarter of 2016 has been a tale of a market that continues to shift and expand. While what is called buying season traditionally begins in spring across the country, it always starts a little early in Southern California where we don’t have to worry about the weather. This year, however, the season kicked off earlier than usual, leading us to have our busiest January ever. While we have seen some slowing at the high end of the market, most of the real estate market in Los Angeles is highly active and highly competitive. An L.A. Times article about the housing scramble referenced writing deals on the hoods of cars, and sometimes that is a reality as we move swiftly to secure homes for our clients. Recently Freddie Mac predicted that 2016 could be the best year for the real estate market during this decade. Sales, housing starts, and housing prices are all expected to rise, reaching their highest point since 2006. Mortgage rates are expected to remain low throughout the year and continued job growth may ease the afford ability crunch. The Fed has indicated that there will likely be two modest hikes in the interest rate in 2016 as inflation rises and the economic fundamentals remain solid.

supply is the historical average). Partners Trust Associates continue to see strong competition for entry-level and move-up homes with multiple offers common. There is some slowing at the high-end of the market as homes over $10 million linger on the market. In the Bel Air/Holmby Hills area for example, sales were down -46.67% and prices fell -22.21%. Neighborhoods where prices have continued to increase dramatically include Los Feliz, where the average sold price is now $2,019,572, up 34.54%; Santa Monica where the average sold price is now $3,291,342 up 26.69%, year over year; the Beverly Hills Post Office area where the average sold price clocked in at $3,453,303, up 40.49%. On the Eastside, including Pasadena and surrounding areas, prices have mostly stabilized but days on market have continued to fall, down to an average of 48.7 days. The market in these areas is highly competitive as low inventory continues to curtail sales.

Employment is increasing. The unemployment rate for February was 4.9% nationwide and in Los Angeles county it was down to 5.6%, the lowest it has been in more than eight years. Local employers remain bullish on hiring. A Los Angeles CFO survey by recruiting firm Robert Half reported that 22% of local chief financial officers anticipate their company will create new jobs and 62% plan to hire for open roles. The latest report from the LA Economic Development Corporation showed that Los Angeles County should continue to add jobs at a 1.7% annual rate this year and personal income is expected to grow by 4.4%. The biggest challenge that the real estate industry continues to face is low inventory. According to the California Association of Realtors®, the statewide inventory level hovers under the five-month mark (six months

This report includes a special feature on the Chinese investor. While there has been increased difficulty in getting money out of China, we still see a pool of active investors who are looking for real estate in Los Angeles and surrounding areas. Our team in Shanghai networks weekly with buyers who are looking at all types of properties in the United States and is hosting buyer tours in the US. The real estate market varies neighborhood by neighborhood and even street by street. Each home is individual. For an up-to-date assessment of your home’s value, you can request a consultation at any time.

SAN GABRIEL VALLEY

9

HOLLYWOOD HILLS & MID-CITY

24

12

PASADENA

WESTSIDE/SOUTH

25

13

LA CAÑADA FLINTRIDGE

METRO LOS ANGELES

28

NORTHEAST LOS ANGELES

SAN FERNANDO VALLEY

29

EAST SAN GABRIEL VALLEY

18 SAN FERNANDO VALLEY WEST OF 405

SOUTH BAY

34

SAN FERNANDO VALLEY

MANHATTAN BEACH & ADJACENT COMMUNITIES

19

SPECIAL SECTIONS

SAN FERNANDO VALLEY EAST OF 405

35

MALIBU GRAND OPENING

Sincerely yours,

37

Lisa Kirshner Partner Partners Trust Real Estate Brokerage & Acquisitions

NEIGHBORHOODS TO WATCH

39

CHINA: A GLOBAL BRIEFING

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LOS ANGELES & WESTSIDE

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Coastal Communities Santa Monica & Adjacent Communities

Number of Sales

Malibu

Malibu Beach

Marina Del Rey

Pacific Palisades

Palms - Mar Vista

Santa Monica

Topanga

Venice

Westchester

First quarter Santa Monica prices rose 14.29%

Average Sold Price

Days on Market

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

39

39

0.00%

$2,531,490

$2,533,697

0.09%

151

104

-31.13%

CONDO

9

11

22.22%

$960,444

$777,511

-19.05%

86

127

47.67%

SFR

7

12

71.43%

$5,191,071

$8,659,333

66.81%

206

172

-16.50%

CONDO

0

2

N/A

$0

$1,415,000

N/A

0

63

N/A

SFR

15

13

-13.33%

$2,053,377

$1,271,462

-38.08%

63

65

3.17%

CONDO

62

52

-16.13%

$1,001,383

$961,512

-3.98%

68

87

27.94%

SFR

57

57

0.00%

$3,427,109

$3,330,364

-2.82%

66

65

-1.52%

CONDO

12

18

50.00%

$909,083

$940,267

3.43%

72

62

-13.89%

SFR

62

69

11.29%

$1,232,700

$1,362,717

10.55%

58

50

-13.79%

CONDO

21

19

-9.52%

$566,070

$586,523

3.61%

54

45

-16.67%

SFR

42

48

14.29%

$2,597,971

$3,291,342

26.69%

52

53

1.92%

CONDO

108

87

-19.44%

$1,093,777

$1,188,927

8.70%

65

50

-23.08%

SFR

15

20

33.33%

$1,138,920

$1,067,346

-6.28%

123

113

-8.13%

CONDO

0

1

N/A

$0

$439,000

N/A

0

8

N/A

SFR

38

45

18.42%

$1,812,526

$1,922,944

6.09%

70

60

-14.29%

CONDO

12

7

-41.67%

$1,210,667

$1,660,000

37.11%

51

79

54.90%

SFR

52

57

9.62%

$1,002,090

$1,096,037

9.38%

64

48

-25.00%

CONDO

4

11

175.00%

$498,475

$501,364

0.58%

38

44

15.79%

for single-family residences while prices rose 26.69% to over $3.29 million. In nearby Venice, prices were up 18.42% and the average sold price for single-family residences rose over 6% to $1.92 million.

Although the data ​used in this report ha​s​been produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.

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The Hills Beverly Hills & Adjacent Communities

Number of Sales

Beverly Hills

Beverly Hills P.O.

Bel Air - Holmby Hills

Average Sold Price

Days on Market

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

33

40

21.21%

$5,962,548

$5,502,956

-7.71%

105

81

-22.86%

CONDO

32

32

0.00%

$1,418,860

$1,269,645

-10.52%

94

69

-26.60%

SFR

28

25

-10.71%

$2,458,071

$3,453,303

40.49%

101

85

-15.84%

CONDO

0

0

N/A

$0

$0

N/A

0

0

N/A

SFR

45

24

-46.67%

$4,735,044

$3,683,458

-22.21%

107

101

-5.61%

CONDO

4

0

N/A

$786,875

$0

N/A

140

0

N/A

Single-family residence sales in Beverly Hills rose 21.21% in the first quarter and days on market fell over 20%. For both condos and single-family residences, prices fell slightly.

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The Westside Beverlywood & Adjacent Communities

Number of Sales

Beverlywood

Brentwood.

Cheviot HillsRancho Park

WestwoodCentury City

Average Sold Price

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

45

46

2.22%

$993,067

$1,280,467

28.94%

57

56

-1.75%

CONDO

14

10

-28.57%

$685,143

$685,240

0.01%

58

47

-18.97%

SFR

33

41

24.24%

$3,312,292

$2,775,155

-16.22%

71

85

19.72%

CONDO

45

60

33.33%

$749,863

$1,026,071

36.83%

75

68

-9.33%

SFR

19

19

0.00%

$1,547,079

$2,088,443

34.99%

80

86

7.50%

CONDO

0

0

N/A

$0

$0

N/A

0

0

N/A

SFR

26

42

61.54%

$2,178,288

$2,237,474

2.72%

68

40

-41.18%

CONDO

114

115

0.88%

$998,914

$1,126,396

12.76%

78

76

-2.56%

Single-family residences in Westwood continue to sell quickly. Days on market dropped over 40% to 40 days as sales rose 61.54%. In Brentwood, sales are still booming with single-family residence sales up 24.24% and condo sales up 33.33%.

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Days on Market

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Hollywood Hills & Mid-City Hollywood Hills & Adjacent Communities

Number of Sales

Beverly Center - Miracle Mile

Hancock Park - Wilshire

Hollywood Hills East

Sunset Strip - Hollywood Hills West

West Hollywood

Average Sold Price

Days on Market

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

39

41

5.13%

$1,540,769

$1,716,695

11.42%

57

49

-14.04%

CONDO

24

19

-20.83%

$699,954

$679,053

-2.99%

75

58

-22.67%

SFR

62

53

-14.52%

$1,616,004

$1,988,394

23.04%

63

68

7.94%

CONDO

38

36

-5.26%

$551,362

$499,047

-9.49%

63

65

3.17%

SFR

26

29

11.54%

$1,242,455

$1,379,399

11.02%

90

63

-30.00%

CONDO

11

8

-27.27%

$431,000

$466,025

8.13%

49

65

32.65%

SFR

93

108

16.13%

$2,500,750

$2,791,329

11.62%

80

82

2.50%

CONDO

22

21

-4.55%

$1,288,051

$582,667

-54.76%

67

51

-23.88%

SFR

35

31

-11.43%

$1,846,239

$1,630,423

-11.69%

62

56

-9.68%

CONDO

102

84

-17.65%

$696,755

$736,272

5.67%

72

57

-20.83%

The Beverly Center-Miracle Mile area maintains a steady growth with sales up 5.13% and the average sold price up 11.42% to $1,716,695. In the Sunset Strip-Hollywood Hills West area, single-family residence sales rose by 16.13% with an average sold price of $2.791 million, up 11.62%.

Although the data ​used in this report ha​s​been produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.

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The Westside | South Culver City & Adjacent Communities

Number of Sales

Culver City

Inglewood

Ladera Heights

Park Hills Heights

Average Sold Price

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

42

39

-7.14%

$1,010,604

$1,043,756

3.28%

55

57

3.64%

CONDO

62

40

-35.48%

$476,644

$539,013

13.09%

52

48

-7.69%

SFR

47

43

-8.51%

$396,856

$428,147

7.88%

61

45

-26.23%

CONDO

29

29

0.00%

$206,701

$253,576

22.68%

64

29

-54.69%

SFR

7

13

85.71%

$818,143

$983,427

20.20%

52

90

73.08%

CONDO

0

1

N/A

$0

$398,670

N/A

0

95

N/A

SFR

98

103

5.10%

$476,104

$577,533

21.30%

59

47

-20.34%

CONDO

20

15

-25.00%

$306,499

$313,400

2.25%

62

38

-38.71%

Culver City prices have stabilized with the average sold price rising just 3% to $1,043,756. In Inglewood, increased interest caused by the announcement of a new stadium may have contributed to the rise in the average sold price of single-family residences, up 7.88% to $428,147, while days on market fell over 26%.

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Days on Market

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Metro Los Angeles Downtown Los Angeles & Adjacent Communities

Number of Sales

Downtown L.A.

Hollywood

Los Feliz

Silver Lake - Echo Park

Average Sold Price

Days on Market

Celeb-friendly Los Feliz saw another price jump with the average sold price for single-family residences coming in at $2.019 million while sales rose 12.5%.

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

28

23

-17.86%

$342,491

$325,817

-4.87%

85

96

12.94%

In Silver Lake-Echo Park, the average sold price

CONDO

107

62

-42.06%

$657,988

$777,506

18.16%

72

84

16.67%

crested the $1 million mark, up 20.55% to over $1.022

SFR

20

25

25.00%

$1,245,583

$1,064,220

-14.56%

70

59

-15.71%

million as sales rose 9.21%.

CONDO

22

25

13.64%

$777,784

$629,341

-19.09%

75

65

-13.33%

SFR

48

54

12.50%

$1,501,052

$2,019,572

34.54%

70

73

4.29%

CONDO

12

7

-41.67%

$502,833

$586,057

16.55%

50

64

28.00%

SFR

76

83

9.21%

$847,839

$1,022,107

20.55%

54

58

7.41%

CONDO

7

6

-14.29%

$549,000

$650,650

18.52%

50

94

88.00%

Although the data ​used in this report ha​s​been produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.

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SAN FERNANDO VALLEY

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San Fernando Valley West of the 405 Agoura & Adjacent Communities

Number of Sales

Agoura

Calabasas

Chatsworth

Encino

Hidden Hills

Northridge

Tarzana

Westlake Village

Woodland Hills

Average Sold Price

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

70

65

-7.14%

$886,151

$915,370

3.30%

87

91

4.60%

CONDO

36

32

-11.11%

$401,396

$411,622

2.55%

75

57

-24.00%

SFR

43

57

32.56%

$1,530,715

$1,961,956

28.17%

118

114

-3.39%

CONDO

24

15

-37.50%

$433,013

$430,650

-0.55%

89

79

-11.24%

SFR

58

58

0.00%

$602,685

$766,535

27.19%

86

75

-12.79%

CONDO

29

30

3.45%

$348,929

$354,774

1.68%

77

47

-38.96%

SFR

88

103

17.05%

$1,357,907

$1,387,158

2.15%

69

72

4.35%

CONDO

48

47

-2.08%

$368,501

$375,340

1.86%

61

50

-18.03%

SFR

8

6

-25.00%

$2,252,500

$3,895,833

72.96%

69

76

10.14%

CONDO

0

0

N/A

$0

$0

N/A

0

0

N/A

SFR

143

140

-2.10%

$632,581

$648,462

2.51%

70

61

-12.86%

CONDO

38

26

-31.58%

$368,129

$392,535

6.63%

65

44

-32.31%

SFR

70

64

-8.57%

$1,055,936

$1,096,872

3.88%

84

69

-17.86%

CONDO

43

40

-6.98%

$307,105

$336,332

9.52%

58

77

32.76%

SFR

63

62

-1.59%

$1,822,798

$1,297,420

-28.82%

70

87

24.29%

CONDO

45

38

-15.56%

$572,562

$543,436

-5.09%

72

84

16.67%

SFR

154

125

-18.83%

$734,876

$825,169

12.29%

80

71

-11.25%

CONDO

42

57

35.71%

$369,462

$392,931

6.35%

64

58

-9.38%

Blame it on the Kardashians? Sales in Calabasas continue to climb, up 32.56% in the first quarter as the average sold price for a single-family residence elevated over 28% to $1,961,956.

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Days on Market

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San Fernando Valley East of the 405 Sherman Oaks & Adjacent Communities

Number of Sales

Burbank

Sherman Oaks

Studio City

Toluca Lake

Average Sold Price

Days on Market

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

110

106

-3.64%

$721,471

$777,026

7.70%

54

53

-1.85%

CONDO

62

38

-38.71%

$484,800

$499,775

3.09%

67

58

-13.43%

SFR

118

124

5.08%

$1,116,604

$1,294,749

15.95%

68

61

-10.29%

CONDO

82

49

-40.24%

$467,532

$492,492

5.34%

54

59

9.26%

SFR

56

58

3.57%

$1,231,888

$1,629,813

32.30%

66

68

3.03%

CONDO

43

46

6.98%

$497,255

$575,620

15.76%

65

72

10.77%

SFR

20

14

-30.00%

$1,561,366

$1,788,214

14.53%

77

72

-6.49%

CONDO

17

13

-23.53%

$484,412

$586,100

20.99%

85

105

23.53%

Studio City sales saw another price spike in the first quarter of the year as the average sold price came in over $1.62 million, up 32.3%. Sherman Oaks is also showing signs of market heat with sales rising 5.08% for single-family residences while the average sold price was up 15.95% to over $1.294 million. Although the data ​used in this report ha​s​been produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.

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SAN GABRIEL VALLEY

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Pasadena Pasadena & Adjacent Communities

Number of Sales

Alhambra

Altadena

Pasadena

San Gabriel

San Marino

South Pasadena

Average Sold Price

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

49

33

-32.65%

$613,942

$603,433

-1.71%

57

61

7.02%

CONDO

14

18

28.57%

$399,824

$455,028

13.81%

67

55

-17.91%

SFR

84

69

-17.86%

$720,659

$832,696

15.55%

64

61

-4.69%

CONDO

1

0

N/A

$289,000

$0

N/A

34

0

N/A

SFR

193

177

-8.29%

$1,032,107

$961,605

-6.83%

64

55

-14.06%

CONDO

84

94

11.90%

$640,482

$606,579

-5.29%

69

59

-14.49%

SFR

48

41

-14.58%

$757,379

$836,288

10.42%

48

62

29.17%

CONDO

1

12

1100.00%

$342,000

$441,707

29.15%

24

59

145.83%

SFR

22

32

45.45%

$2,952,404

$2,771,924

-6.11%

41

83

102.44%

CONDO

0

0

N/A

$0

$0

N/A

0

0

N/A

SFR

22

21

-4.55%

$1,132,095

$1,081,459

-4.47%

42

57

35.71%

CONDO

8

6

-25.00%

$579,250

$582,648

0.59%

35

35

0.00%

Properties in Pasadena continue to move briskly with days on market down over 14% for both condos and single-family residences. In Pasadena, condo sales rose 11.9% while single-family home sales were down -8.29% amidst price stabilization.

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Days on Market

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La Cañada Flintridge La Cañada Flintdridge & Adjacent Communities

Number of Sales

Atwater

Glendale

La Canada Flintridge

La Crescenta/Glendale/ Montrose/Sparr Heights

Sunland/Tujunga

Average Sold Price

Days on Market

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

10

14

40.00%

$681,340

$777,493

14.11%

69

48

-30.43%

CONDO

0

0

N/A

$0

$0

N/A

0

0

N/A

SFR

116

50

-56.90%

$793,316

$799,043

0.72%

53

55

3.77%

CONDO

56

83

48.21%

$391,309

$450,961

15.24%

71

58

-18.31%

SFR

34

52

52.94%

$1,920,497

$1,748,032

-8.98%

57

53

-7.02%

CONDO

1

0

N/A

$485,000

$0

N/A

56

0

N/A

SFR

68

59

-13.24%

$740,521

$762,942

3.03%

54

48

-11.11%

CONDO

7

19

171.43%

$399,093

$382,947

-4.05%

52

45

-13.46%

SFR

85

71

-16.47%

$476,457

$532,742

11.81%

52

56

7.69%

CONDO

5

3

-40.00%

$287,700

$332,967

15.73%

91

47

-48.35%

A hot market shows no signs of abating. Sales leaped up nearly 53% for single-family homes while the average sold price came in at $1.748 million. In nearby Glendale, the condo market provides an excellent entry point into the market with sales up 48.21% and an average sold price of $450,961, up 15.24% year over year.

Although the data ​used in this report ha​s​been produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.

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Northeast Los Angeles Eagle Rock & Adjacent Communities

Number of Sales

Eagle Rock

Glassell Park

Highland Park

Montecito Heights

Monterey Hills

Mount Washington

Average Sold Price

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

35

52

48.57%

$700,120

$804,858

14.96%

36

49

36.11%

CONDO

1

0

N/A

$186,500

$0

N/A

207

0

N/A

SFR

28

28

0.00%

$584,076

$741,059

26.88%

49

51

4.08%

CONDO

1

3

200.00%

$668,847

$638,333

-4.56%

2

50

2400.00%

SFR

59

52

-11.86%

$603,483

$593,565

-1.64%

56

60

7.14%

CONDO

4

2

-50.00%

$279,500

$341,250

22.09%

20

21

5.00%

SFR

9

7

-22.22%

$615,000

$604,143

-1.77%

36

46

27.78%

CONDO

0

0

N/A

$0

$0

N/A

0

0

N/A

SFR

11

4

-63.64%

$382,000

$632,750

65.64%

83

73

-12.05%

CONDO

20

18

-10.00%

$333,550

$371,086

11.25%

68

43

-36.76%

SFR

31

25

-19.35%

$695,280

$764,300

9.93%

79

61

-22.78%

CONDO

0

0

N/A

$0

$0

N/A

0

0

N/A

In Northeast Los Angeles, prices are still on the increase, up 26.88% to an average of $741,059 in Glassell Park, up 14.96% in Eagle Rock to $804,858, and up 9.93% to $764,300 in Mount Washington.

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Days on Market

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East San Gabriel Valley Arcadia & Adjacent Communities

Number of Sales

Arcadia

Azusa

Bradbury

Monrovia

Monterey Park

Sierra Madre

Average Sold Price

Days on Market

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

82

85

3.66%

$1,606,261

$1,522,902

-5.19%

69

77

11.59%

CONDO

22

23

4.55%

$578,654

$612,774

5.90%

63

75

19.05%

SFR

53

53

0.00%

$415,057

$472,444

13.83%

75

67

-10.67%

CONDO

29

18

-37.93%

$283,240

$303,178

7.04%

50

44

-12.00%

SFR

7

4

-42.86%

$1,513,697

$1,088,825

-28.07%

46

131

184.78%

CONDO

0

0

N/A

$0

$0

N/A

0

0

N/A

SFR

54

56

3.70%

$633,252

$700,317

10.59%

55

53

-3.64%

CONDO

15

13

-13.33%

$402,333

$421,238

4.70%

60

70

16.67%

SFR

43

46

6.98%

$642,342

$619,932

-3.49%

70

65

-7.14%

CONDO

20

22

10.00%

$403,983

$468,298

15.92%

56

52

-7.14%

SFR

24

18

-25.00%

$972,196

$1,130,722

16.31%

40

47

17.50%

CONDO

3

1

-66.67%

$532,500

$450,000

-15.49%

60

108

80.00%

Arcadia’s rapid growth has slowed with sales rising 3.66% in the first quarter and the average sold price down -5.19% to $1,522,902 for single-family residences. Keep an eye on Monrovia where prices for single-family residences and condos both rose in the first quarter. Although the data ​used in this report ha​s​been produced and processed from sources believed to be reliable, no warranty, expressed or implied, is made regarding accuracy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of the information. The information is provided on an “as is” basis.

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SOUTH BAY Q1 2016 MARKET STATS

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South Bay Manhattan Beach & Adjacent Communities

Number of Sales

El Segundo

Hermosa Beach

Hawthorne

Manhattan Beach

Palos Verdes Estates

Playa Del Rey

Playa Vista

Rancho Palos Verdes

Redondo Beach

Rolling Hills Estates

People can’t get enough of the Manhattan Beach lifestyle. Sales rose another 20.4% and the average

Torrance

Average Sold Price

TYPE

2015

2016

% CHANGE

2015

2016

% CHANGE

2015

2016

% CHANGE

SFR

18

15

-16.67%

$973,522

$1,420,906

45.96%

52

58

11.54%

CONDO

7

1

-85.71%

$466,643

$569,990

22.15%

101

7

-93.07%

SFR

27

21

-22.22%

$2,444,020

$2,039,750

-16.54%

62

54

-12.90%

CONDO

4

8

100.00%

$826,500

$744,875

-9.88%

56

87

55.36%

SFR

45

62

37.78%

$487,850

$505,732

3.67%

46

55

19.57%

CONDO

6

10

66.67%

$552,192

$476,350

-13.73%

22

38

72.73%

SFR

49

59

20.41%

$2,288,900

$2,601,720

13.67%

44

74

68.18%

CONDO

1

0

N/A

$1,150,000

$0

N/A

143

0

N/A

SFR

34

38

11.76%

$2,370,803

$2,000,083

-15.64%

102

80

-21.57%

CONDO

3

2

-33.33%

$654,000

$675,000

3.21%

91

58

-36.26%

SFR

14

8

-42.86%

$1,718,571

$1,704,656

-0.81%

78

37

-52.56%

CONDO

23

24

4.35%

$500,391

$563,313

12.57%

46

44

-4.35%

SFR

5

0

N/A

$1,765,980

$0

N/A

29

0

N/A

CONDO

30

26

-13.33%

$875,241

$1,016,972

16.19%

57

45

-21.05%

SFR

73

75

2.74%

$1,196,950

$1,481,765

23.80%

67

77

14.93%

CONDO

10

16

60.00%

$506,750

$562,188

10.94%

57

90

57.89%

SFR

69

68

-1.45%

$1,140,998

$1,140,373

-0.05%

57

47

-17.54%

CONDO

23

30

30.43%

$527,109

$821,647

55.88%

64

61

-4.69%

SFR

11

13

18.18%

$1,579,818

$1,701,577

7.71%

95

88

-7.37%

CONDO

1

4

300.00%

$280,000

$340,750

21.70%

26

40

53.85%

SFR

148

171

15.54%

$682,784

$704,318

3.15%

50

52

4.00%

CONDO

47

37

-21.28%

$359,415

$383,959

6.83%

56

49

-12.50%

sold price climbed 13.67% to $2,601,720.

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Days on Market

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One of the things that makes Malibu so important to us is the community. Our Malibu Founding Partners and Associates aren’t just selling real estate in the area, they live here, they play here, they know the ins and outs of each neighborhood and delight in sharing that expertise, not just with their clients, but with anyone who wants to know more about the area.

Partners Trust Celebrates Malibu Grand Opening In Style As we expand our Partners Trust presence in Malibu, our physical footprint in the area needs to grow as well.

At the start of the year we moved into our new office and we recently put up our first Malibu billboard in Point Dume. The new billboard reinforces our commitment to the people we are proud to serve in Malibu and beyond. We celebrated both at an event that was full of the joy and collaboration that Partners Trust is known for. How many companies have a Marketing Manager who is also an expert DJ? We do, in our Marketing Manager Greg Lopez. Monrose Catering also provided sliders, lobster tacos, and our favorite Malibu cocktail, the P/t-tini. Our entire team showed up from offices as far away as Pasadena and La Cañada to celebrate. We were also honored to have members of the local press such as The Malibu Times, clients, and community members show up to take part in our celebration. The event was covered by The Malibu Times, which featured Founding Partners' Sarah Kosasky and Madison Hildebrand discussing the office's design and why it was important that it offer both the latest in technology and a welcoming, inviting space to work or visit. Special thanks to Malibu Chamber of Commerce Chair-Elect Kristine Bocchino and CEO Mark Persson for attending. It was wonderful to see members of the Malibu real estate community in attendance as well, including Malibu Association of Realtors® Past President, Meril May and Association Executive, Susan Manners. “I am truly delighted to share our new office with the community,” added Partners Trust Malibu Manager Sarah Kosasky. “The Malibu Country Mart location is in the perfect spot to meet with clients and welcome people new to the area. Friends, beautiful weather, and fun, this is what Malibu is and why people fall in love with living here.” Partners Trust Malibu is located at 23410 Civic Center Way, C1 Malibu, California 90265

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Neighborhoods To Watch SHERMAN OAKS

EAGLE ROCK

HAWTHORNE

WESTWOODCENTURY CITY

More and more people are discovering the charm of Sherman Oaks. New restaurants and retail space have brought new energy to this Valley community. Sales in the first quarter of 2016 were up 5.08% and the average price rose 15.95% to $1,294,749 while days on market fell to an average of 61 days.

Known as one of the hottest neighborhoods on the Eastside, Eagle Rock continues to be highly sought after. Sales rose dramatically over the first quarter of last year, up 48.57% with 52 single-family residences selling. The average sold price rose 14.96% to $804,858.

Manhattan Beach continues to notch up sales and escalating prices, as the average sold price for a single-family residence rose 13.67% to $2,601,720. But pay attention to nearby Hawthorne, a neighborhood on the rise. Sales rose 38% in the first quarter, while sales ticked up just a modest 3.7% to an average sold price of $505,732.

Condos are perennially popular in this convenient area but single-family residence sales rose 61.5% last quarter, with a relatively steady average sold price of $2,237,474 (up 2.72%) and days on market fell over 41% to just 40 days.

With average sold prices than many surrounding areas, Palms-Mar Vista is still attracting major buzz. Prices rose over 10% to an average sold price of $1,362,717 and sales were up 11.29%. Average days on market fell over 13% to 50 days.

The poke craze continues as Sweetfin Poke expands to Westwood. The latest restaurant from mega-restaurateur Alan Nathan offers signature bowls including mango albacore and spicy yuzu salmon. Westwood standard Napa Valley Grille recently reopened after a $2 million renovation that includes a private dining room and new lounge area.

Mar Vista is known for its excellent farmers’ market. New restaurants include Rustic Kitchen Market & Café, a charming spot on Centinela that offers comfort food as well as locally made gourmet items. A coming wine bar will host winemaker events. While you are in the area check out Mar Vista Art Department, a shop that also holds movie nights and crafting tutorials.

Local new restaurants include The Sherman, which has taken over the former Tipple & Brine spot and serves hearty fare including wild boar jambalaya, peri-peri chicken, and espresso-braised short ribs. Hollywood tequila bar Te’kila will soon be opening on Ventura Blvd.

The restaurant and bar scene continues to evolve in Eagle Rock and Highland Park. Craft Beer Cellar recently opened an Eagle Rock location and stocks a variety of craft beer in bottles from around the world. There is also beer on tap and a rotating schedule of food trucks. Sevan Abdessian’s much anticipated Recess recently opened in nearby Highland Park and may become the area’s hottest brunch spot.

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Fans of Culver City’s legendary Zam Zam Market rejoiced at the end of 2015 when the home of delicious biryani and kebabs made its new home in Hawthorne. Another reason to keep an eye on Hawthorne is the plan to turn the Hawthorne Plaza into an outdoor mall with residences and restaurants similar to Americana at Brand. Plans haven’t been finalized yet but this could help bring new life to the downtown area.

PALMSMAR VISTA

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MONROVIA

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As people head east looking for affordable real estate, more and more eyes are turning to the town of Monrovia. Sales were up just 3.7% in 2016 but the average sold price rose 10.59% to $700,317. Monrovia’s long history means there is a wide variety of housing stock in the area, including many older historic homes. Monrovia is known for the great local shops in old town. The city is set to get its own wine bar, The Saltner, which will offer wine flights by the glass and bottle as well as a retail sales. The Saltner will also offer Cicchetti, small plates of food designed to complement the wines being served.

/ 38


GENERAL ECONOMIC FEELING IN CHINA

China: A Global Briefing

"Volatility" and "Uncertainty" are the two best words to describe the general sentiment in China about its economy and the near future. On one hand, in January, the Chinese currency (called "RMB" within China and "CNY" or Chinese Yuan when traded offshore/ outside China) experienced a short-term rapid devaluation, — and while China’s revised forecast for 2016 sets the lowest economic growth target (at between 6.5% to 7%) in the past 26 years, the hard landing that many economists had predicted has still not happened. Policies are changing very fast. has reached never-before-seen levels

the sudden and quick response by

turn the RMB into a freely tradable

Changes were announced and are being

over the past six months. In fact,

private companies and even individuals

international currency. Managing these

implemented regarding:

some of the changes in policies were

to follow suit. So much money has

two seemingly contradictory policies

• Foreign currency control – in past three

a direct result of these unprecedented

flowed out of China in a short amount

is China’s true balancing act, which

months, a complete tightening on foreign

and unexpected levels of ODI.

of time, that the government in

ultimately has far-reaching implications

January further tightened regulations

on US real estate. Ultimately, the long-

restricting individuals’ capability and

term goal of internationalizing the RMB

ease of moving funds out of China,—

will lead to loosening of the policies

thereby directly affecting the real

and restrictions on currency exchange.

estate market in the US and California.

In fact, the lowering of the economic

exchange, especially for individuals. • Government spending – reduction in domestic

CHINA OUTWARD DIRECT INVESTMENT (ODI) 2016 FORECAST

spending, drastic lowering of foreign reserves

Fueled by uncertainty about China’s

to protect the value of the RMB, an increase in

domestic market, a devaluing RMB

overseas spending for state-owned enterprises

and the draw of more stable US and

under the One Belt One Road strategy.

overseas markets, in this first quarter

• Monetary policy and the internationalization

alone, China’s ODI is exceeding $54

of the RMB – while in the short-term, tightening

billion, following a historic high of

the amount that individuals can take out of

$118 billion in all of 2015. Who is

The restrictions on foreign currency

the country — a seemingly contradictory longer

doing this buying? The majority are

exchange further restrict the annual

term objective to make the RMB freely tradable

still state own enterprises, but private

limit of US $ 50,000 that each individual

internationally.

conglomerates are joining the action.

has to exchange funds. The practice

• Domestic real estate property tax law

While ChemChina (state-owned) is

of being able to collect larger amounts

amendments – reductions in property taxes

buying Swiss’ Syngenta for $43 billion,

by mobilizing relatives and friends

and the way they are collected and making

Haier, for example, has bid $5.4 billion for

and use their quotas has for the

real estate purchases in China’s bubble areas

GE’s appliances unit. For corporations

time being all but been eliminated.

(second – and third – tier cities) more enticing in

such as these it is evident that foreign

So has the capability to withdraw

the short-term.

currency control is not stopping their

cash overseas on ATMs by Chinese

• Sweeping changes in personal income tax —

shopping spree. Many of these firms

citizens, which was a loophole in the

All this within the context of lower economic

are trying to either buy before the RMB

system. However, these restrictions

growth targets and China’s overall change from

may further devalue or for similar

are expected to be short-lived. While

traditional reliance on manufacturing to higher

reasons, companies with high levels of

in the short-term, Chinese leaders

value service industries. It is no wonder that

foreign debt have been racing to pay

are trying to provide stability by

Individual and institutional investors alike are

off their debts in the last 6 months. A

reassuring investors and industries

trying to make sense of what all these

large portion of this overseas spending

whose financial performance are

changes mean.

was anticipated, and even planned

tied to a stable relationship between

The general sense is that it remains wise wherever

by central government, resulting in

the RMB and the USD, by managing

and whenever possible to hedge bets and invest in

many of the state-owned enterprise

the outflow of RMB, at the same

overseas markets. Outward Direct Investment (ODI)

deals. What was not expected was

time China remains on its path to

growth target is a positive sign that

NEW LAWS AND POLICIES AFFECTING INVESTMENT AND LIQUIDITY

Q1 2016 MARKET STATS

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central government planners can accept more modest, and therefore, more sustainable growth targets that in the past decade were too dependent on large-scale state-owned enterprises and not dependend enough on consumer spending. The internationalization of the RMB has already been set in motion. In addition to offshore CNY trading in Hong Kong, China has recently signed trade deals with the Middle East, Russia and other markets to gradually make the RMB freely tradable. The establishment of the Asian Infrastructure investment Bank (AIIB) in January 2016 is China’s direct response to the IMF, World Bank and Asian Development Bank as part of a strategy to increase the global influence of the CNY. The momentum towards a freely traded RMB/CNY is virtually unstoppable and more a matter of timing. When that happens, a potential floodgate of ODI by

/ 40


individuals becomes highly probable. The US and in particular the West Coast, remain the historical frontrunners as one of the first destination or such Investors. SUMMARY I.

In the short term, estimated next 6 to 12 months,

China’s domestic policy changes in real estate property tax structure and personal income tax, combined with the foreign currency limitations for individuals, are designed to motivate Chinese investors to look first at domestic second - and third - tier city markets and invest in the surplus of real estate there. II.

China’s investors, whether institutional or individual

have a continuing desire to invest overseas but are held back in short term by foreign currency limitations. III.

However, China’s currency, RMB/CNY inevitably

will become freely tradable. It is only a matter of time. How much time depends a lot on the complex factors of China’s own economy as well as macro-economic forces worldwide, the US interest rates, any possible instability following the US Presidential race etc, yet its estimated time frame is between one to three years. IV.

When China’s currency becomes freely tradable,

expect the floodgates to open. V.

US real estate companies best prepare for what

is anticipated to become a massive opportunity. Especially in California, which remains a top destination for Chinese investors.

Partners Trust China­ is located at 5/F Somekh Building, RockBund 149 Yuan Ming Yuan Road Shanghai, P.R. China 200002

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