partners trust quarterly market stats -- q1 2016

Q1 2016 MARKET STATS / PARTNERS TRUST / 1

PARTNERS TRUST QUARTERLY

LOS ANGELES RESIDENTIAL MARKET REPORT2 0 1 6 | Q 1

Q1 2016 MARKET STATS / PARTNERS TRUST / A

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.

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 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 58.7 days. The market in these areas is highly competitive as low inventory continues to curtail sales.

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.

Sincerely yours,

Nick SegalCEO, Founding PartnerPartners Trust Real Estate Brokerage & Acquisitions

Q1 2016 MARKET STATS / PARTNERS TRUST / B

LOS ANGELES& WESTSIDE

4

COASTAL COMMUNITIES

5 THE HILLS

8WESTSIDE

9

HOLLYWOOD HILLS & MID-CITY

12WESTSIDE/SOUTH

13

METRO LOS ANGELES

SAN FERNANDO VALLEY

18

SAN FERNANDO VALLEY WEST OF 405

SAN FERNANDO

VALLEY

19

SAN FERNANDO VALLEY EAST OF 405

SAN GABRIELVALLEY

24PASADENA

25 LA CAÑADA FLINTRIDGE

28NORTHEAST LOS ANGELES

29EAST SANGABRIEL VALLEY

SOUTH BAY

34 MANHATTAN BEACH & ADJACENT COMMUNITIES

SPECIAL SECTIONS

35 MALIBU GRAND OPENING

37NEIGHBORHOODSTO WATCH

39CHINA:A GLOBAL BRIEFING

LOS ANGELES & WESTSIDE


First quarter, the number of Santa Monica sales rose

14.29% for single-family residences while average

sold price rose 26.69% to over $3.29 million. In nearby

Venice, sales were up 18.42% and the average sold

price for single-family residences rose over 6% to

$1.92 million.


Coastal CommunitiesSanta Monica & Adjacent Communities

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.

Number of Sales Average Sold Price Days on Market

TYPE 2015 2016 % CHANGE 2015 2016 % CHANGE 2015 2016 % CHANGE

Malibu 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%

Malibu Beach 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

Marina Del Rey 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%

Pacific Palisades 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%

Palms - Mar Vista 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%

Santa Monica 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%

Topanga 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

Venice 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%

Westchester 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%


The HillsBeverly Hills & Adjacent Communities



Beverly Hills 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%

Beverly Hills P.O. 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

Bel Air - Holmby Hills 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.


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%.


The WestsideBeverlywood & Adjacent Communities



Beverlywood 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%

Brentwood. 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%

Cheviot Hills- Rancho Park 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

Westwood- Century City 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%




Hollywood Hills & Mid-CityHollywood Hills & Adjacent Communities



Beverly Center - Miracle Mile 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%

Hancock Park - Wilshire 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%

Hollywood Hills East 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%

Sunset Strip - Hollywood Hills West 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%

West Hollywood 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%.


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%.


The Westside | SouthCulver City & Adjacent Communities



Culver City 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%

Inglewood 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%

Ladera Heights 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

Park Hills Heights 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%




Metro Los AngelesDowntown Los Angeles & Adjacent Communities



Downtown L.A. SFR 28 23 -17.86% $342,491 $325,817 -4.87% 85 96 12.94%

CONDO 107 62 -42.06% $657,988 $777,506 18.16% 72 84 16.67%

Hollywood SFR 20 25 25.00% $1,245,583 $1,064,220 -14.56% 70 59 -15.71%

CONDO 22 25 13.64% $777,784 $629,341 -19.09% 75 65 -13.33%

Los Feliz 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%

Silver Lake - Echo Park 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%


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%.

In Silver Lake-Echo Park, the average sold price

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

million as sales rose 9.21%.

SAN FERNANDO VALLEY


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.


San Fernando Valley West of the 405Agoura & Adjacent Communities



Agoura 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%

Calabasas 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%

Chatsworth 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%

Encino 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%

Hidden Hills 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

Northridge 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%

Tarzana 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%

Westlake Village 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%

Woodland Hills 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%




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



Burbank 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%

Sherman Oaks 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%

Studio City 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%

Toluca Lake 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.

SAN GABRIEL VALLEY


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.


PasadenaPasadena & Adjacent Communities



Alhambra 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%

Altadena 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

Pasadena 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%

San Gabriel 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%

San Marino 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

South Pasadena 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%




La Cañada FlintridgeLa Cañada Flintdridge & Adjacent Communities



Atwater 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

Glendale 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%

La Canada Flintridge 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

La Crescenta/Glendale/Montrose/Sparr Heights 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%

Sunland/Tujunga 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.


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.


Northeast Los AngelesEagle Rock & Adjacent Communities



Eagle Rock 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

Glassell Park 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%

Highland Park 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%

Montecito Heights 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

Monterey Hills 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%

Mount Washington 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




East San Gabriel ValleyArcadia & Adjacent Communities



Arcadia 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%

Azusa 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%

Bradbury 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

Monrovia 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%

Monterey Park 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%

Sierra Madre 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.

SOUTH BAY


People can’t get enough of the Manhattan Beach

lifestyle. Sales rose another 20.4% and the average

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


South BayManhattan Beach & Adjacent Communities



El Segundo 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%

Hermosa Beach 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%

Hawthorne 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%

Manhattan Beach 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

Palos Verdes Estates 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%

Playa Del Rey 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%

Playa Vista 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%

Rancho Palos Verdes 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%

Redondo Beach 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%

Rolling Hills Estates 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%

Torrance 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%


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.

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.

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, C1Malibu, California 90265


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.

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.

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.

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.

NeighborhoodsTo Watch

HAWTHORNEEAGLEROCK

SHERMANOAKS

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.

The restaurant and bar scene con-tinues 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.


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.

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

WESTWOOD- CENTURY CITY

PALMS-MAR VISTA

MONROVIA

With lower than 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.

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.

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.

China:A GlobalBriefing

GENERAL ECONOMIC FEELING IN CHINA

"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.

Changes were announced and are being

implemented regarding:

• Foreign currency control – in past three

months, a complete tightening on foreign

exchange, especially for individuals.

• Government spending – reduction in domestic

spending, drastic lowering of foreign reserves

to protect the value of the RMB, an increase in

overseas spending for state-owned enterprises

under the One Belt One Road strategy.

• Monetary policy and the internationalization

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

the amount that individuals can take out of

the country — a seemingly contradictory longer

term objective to make the RMB freely tradable

internationally.

• Domestic real estate property tax law

amendments – reductions in property taxes

and the way they are collected and making

real estate purchases in China’s bubble areas

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

the short-term.

• Sweeping changes in personal income tax —

All this within the context of lower economic

growth targets and China’s overall change from

traditional reliance on manufacturing to higher

value service industries. It is no wonder that

Individual and institutional investors alike are

trying to make sense of what all these

changes mean. The general sense is that it remains wise wherever

and whenever possible to hedge bets and invest in

overseas markets. Outward Direct Investment (ODI)


has reached never-before-seen levels

over the past six months. In fact,

some of the changes in policies were

a direct result of these unprecedented

and unexpected levels of ODI.

CHINA OUTWARD DIRECT INVESTMENT (ODI) 2016 FORECAST

Fueled by uncertainty about China’s

domestic market, a devaluing RMB

and the draw of more stable US and

overseas markets, in this first quarter

alone, China’s ODI is exceeding $54

billion, following a historic high of

$118 billion in all of 2015. Who is

doing this buying? The majority are

still state own enterprises, but private

conglomerates are joining the action.

While ChemChina (state-owned) is

buying Swiss’ Syngenta for $43 billion,

Haier, for example, has bid $5.4 billion for

GE’s appliances unit. For corporations

such as these it is evident that foreign

currency control is not stopping their

shopping spree. Many of these firms

are trying to either buy before the RMB

may further devalue or for similar

reasons, companies with high levels of

foreign debt have been racing to pay

off their debts in the last 6 months. A

large portion of this overseas spending

was anticipated, and even planned

by central government, resulting in

many of the state-owned enterprise

deals. What was not expected was

the sudden and quick response by

private companies and even individuals

to follow suit. So much money has

flowed out of China in a short amount

of time, that the government in

January further tightened regulations

restricting individuals’ capability and

ease of moving funds out of China,—

thereby directly affecting the real

estate market in the US and California.

NEW LAWS AND POLICIES AFFECTING INVESTMENT AND LIQUIDITY

The restrictions on foreign currency

exchange further restrict the annual

limit of US $ 50,000 that each individual

has to exchange funds. The practice

of being able to collect larger amounts

by mobilizing relatives and friends

and use their quotas has for the

time being all but been eliminated.

So has the capability to withdraw

cash overseas on ATMs by Chinese

citizens, which was a loophole in the

system. However, these restrictions

are expected to be short-lived. While

in the short-term, Chinese leaders

are trying to provide stability by

reassuring investors and industries

whose financial performance are

tied to a stable relationship between

the RMB and the USD, by managing

the outflow of RMB, at the same

time China remains on its path to

turn the RMB into a freely tradable

international currency. Managing these

two seemingly contradictory policies

is China’s true balancing act, which

ultimately has far-reaching implications

on US real estate. Ultimately, the long-

term goal of internationalizing the RMB

will lead to loosening of the policies

and restrictions on currency exchange.

In fact, the lowering of the economic

growth target is a positive sign that

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


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

Peerless real estate service based on a foundation of trust.

REAL ESTATE BROKERAGE & ACQUISITIONS | THEPARTNERSTRUST.COM

REAL ESTATE BROKERAGE & ACQUISITIONS | THEPARTNERSTRUST.COM

partners trust quarterly market stats -- q1 2016

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