Save Iconic Architecture co-founders Jaime Rummerfield and Ron Woodson. Image Courtesy SIA

“We want to be stewards of carrying the California spirit forward into the 21st-century.”

As California grapples with its most devastating fire season yet, the tolls are adding up: to date, more than 16,000 structures have been destroyed, 28 lives have been lost, and countless architectural treasures are hanging in the balance. Among the destroyed structures are Will Rogers’ historic ranch and the beloved Theatre Palisades. Amid this destruction, one organization is seeking to chronicle what’s been lost in an effort to build a new.

Save Iconic Architecture (SIA), co-founded by interior designers Jaime Rummerfield and Ron Woodson, has taken on the role of tracking the status of the region’s architectural gems. It’s evolved from a grassroots effort into a full-fledged 501(c)(3) non-profit organization. With advisory and board members like Peter Gurski, an Emmy Award-winning set decorator, and interior designer Jake Arnold, SIA has assembled a team of industry leaders committed to architectural preservation.

Before founding SIA in 2017, Rummerfield and Woodson spent two decades running a residential design firm, working with Hollywood elite whose homes embodied California glamour. It was during these years that they witnessed the systematic destruction of historically-significant properties.

“When you’re looking at a Paul [Revere] Williams building and [you hear that its owners are saying] ‘We’re just gonna tear it down because it’s too small’ — that careless disregard many times over—I was like ‘God, we got to do something,’” Rummerfield tells us.

The organization, born from the duo’s successful battle to preserve Richard Neutra’s Chuey House, has been fighting  to protect Los Angeles’ architectural heritage from the relentless march of development. As Rummerfield tells us, “I don’t think people realize how crazy this is, just how rapid the demolition is in Los Angeles. And then you have city officials and a government that doesn’t support preservation very well at all.”

The city’s architectural heritage includes heavy hitters of design—Wallace Neff, John Elgin Wolf, Robert Farquhar, and Williams—the first Black member of the American Institute of Architects—to name a few. Yet even homes designed by these legends aren’t automatically protected. “You would think Paul Williams would be protected just automatically, but his buildings are not,” Rummerfield says. “Unless the owner of someone from the community submits it for a landmark status, it most likely does not have it.”

They’ve turned to a simple but powerful method to amplify their message: Instagram. With more than 28,000 followers, SIA’s feed is a real-time record of California’s architectural heritage as it faces risks. The posts celebrate narrow escapes—like the Eames House’s survival of the Palisades fire—and mourn losses, such as Eric Own Moss’s pioneering deconstructivist building,  708 House.

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SIA are crucial watchdogs in L.A.’s preservation community. Its network of whistleblowers alerts them to potential threats, allowing them to intervene before demolition permits are issued. Recently, they witnessed a developer illegally tearing the facade off a significant Williams house—formerly home to Frank Sinatra and David Niven—to disqualify it from protection.

Now, they face an even more formidable adversary: nature itself. The recent California fires have pushed their mission into new territory. “I’ve been in a lot of meetings from City Council to architectural groups and neighborhood groups between the Palisades and Altadena, and the hardest thing is just the reality of rebuilding,” Rummerfield says.

Ash and debris cover the ground of a landscape in California. Image courtesy: Bloomberg Creative//Getty Images

The scale of devastation and daunting reality of moving toxic building materials and groundwork has prompted SIA to launch an initiative called the New California Classics, which aims to rebuild while honoring the architectural legacy of affected areas. “We want to be stewards of carrying the California spirit forward into the 21st century,” Rummerfield says.

SIA’s vision includes partnerships with innovative architects and builders who specialize in prefab homes and fireproofing techniques while maintaining high design standards. “It’s almost like the Wild West right now,” Rummerfield tells us, “but there’s also an opportunity for completely new building strategies, materials, efforts, and sustainability.”

The challenge ahead is immense, but so is the opportunity to redefine what California architecture can be.

VIA ELLE DECOR

Architectural photographer Tim Street-Porter has made a career of capturing Los Angeles’ wildly varied built environment in its best light and form.  A British ex-pat, he’s made Los Angeles his home since 1978 where he continues to write, photograph and collaborate with his wife, design writer and decorator, Annie Kelly. He’s the author and photographer of six books on L.A. architecture and landscape, including 1995’s highly praised, Los Angeles House.

His latest finely crafted book, Palm Springs: A Modernist Paradise, is currently a best seller on Amazon.com. Featuring original new photography, Street-Porter captures the romance, style and allure of this very popular modernist enclave. Restored showplaces and vintage residential favorites (Sunnylands and the Kaufmann House to name two) are shown in their eye-catching splendor. He’s also recognized for his commercial photography and decades of perceptive contributions to publications like Architectural Digest, The New York Times and Town & Country.

I’m pleased to share a brief question-and-answer interview with Street-Porter; I thank him for generously participating. His work inspires me to pause and appreciate the details of the world around me.

You’ve adopted Los Angeles as your home base and you’ve done several books on Los Angeles architecture.  What is it about Los Angeles that attracts you? 

Los Angeles attracted me from the time I first visited in the early 1970s. It was a photographer’s dream, with the desert landscapes, beautiful light, palm trees and cool ‘60s architecture–just as David Hockney, another early L.A. addict, portrayed it in his early paintings. This was exotic and irresistible to me, as it was to Hockney–coming as we both did from the grayness and drizzle of England.

I was also attracted to L.A.’s wonderful variety of old and new architecture, which led me journalistically to produce this ongoing series of books. Unlike other photographers, I enjoy writing about architecture as well as just taking pictures. It opens up another creative dimension for me. Also, it’s fun creating my own books.

You are quoted as saying that you and your wife Annie have spent time in Palm Springs over the years. Why did you decide to author Palm Springs: A Modernists Paradise now?

 The timing for a book about Palm Springs turned out to be perfect. No one had done a substantial one for over 10 years, and I was noticing a new wave of excitement about Palm Springs and its mid- century architecture. So I decided to jump in before anyone else did! Annie and I have been making the 110-mile trip to Palm Springs since the end of the ‘70s and always loved this Morocco-like haven in the desert.

How do you select the buildings and homes featured in the books?

I discovered houses as I went along, helped by realtors and friends. Luckily I unearthed several previously under the radar places that had just come onto the market after 30 or more years, and newly renovated by stylish new owners. This is how I work on all my books, plus research and projects I am already aware of; taking the journalistic approach in other words.

You have shot all over the world for the top design and architectural publications.  What is your process while shooting that results in the exquisite photographs you are known for?  It there a plan going in or is it something that organically evolves as you are working? 

I work instinctively, following the light as it moves around the building and its interiors to get the best effects. I guess otherwise, it’s just experience learned from all my years doing this!

Which photographers or architects have inspired you the most?

I don’t have any particular influences, but notice how great the work of everyone is now.

Is there a building you’d love to photograph but haven’t had access to?

Yes, [Punjab’s capital city] Chandigarh, in India, by [Swiss-French modernist architect] Le Corbusier. I’d love to do a book on that. I’d also like to photograph Paul Bangay’s garden in Australia.

For more information on Tim Street-Porter, go to timstreetporter.com.

In the City of Los Angeles, a flood of inventory of $5 million + homes is a real possibility if Measure ULA passes November 8th. Measure ULA proposes to add a special tax when high-end properties sell to raise funds to build and acquire properties for the homeless population, as well as provide funds for homeless prevention measures.

Currently, when a property sells, 0.45% is charged the seller as a transfer tax and the money raised goes into the city’s General Fund. Measure ULA will significantly increase the cost to sell. Sellers of $5 million up to $10 million properties will be charged an additional 4% of the sales price. Sellers of $10 million and above properties will be charged an additional 5.5%. The additional money raised will be earmarked for several approaches intended to deal with the homeless crisis facing the city. Supporters of the measure estimate that $923 million annually will be raised and that it will impact approximately 4% of annual transactions. Of course, if you are one to those owners and you are thinking about selling, I encourage you to learn more about this ballot measure. Some of these sellers may follow other Californians leaving the Golden State.

Sellers leaving expensive coastal markets have hit their highest levels since 2019. In 2022, 34,832 Angelinos moved elsewhere, the second largest outflow behind San Francisco. San Diego and Las Vegas were the top destinations for our former neighbors, according to Redfin. An influx of houses hitting the market and forcing prices down just hasn’t happened. Nationally, August saw 7% fewer listings compared to 2020 and 43% fewer compared to 2019. Another way to look at it, this year buyers have five houses to choose from, but had only four last year. Compared to last year, the number of active listings in August was flat in Beverly Hills, up 1.4% in Santa Monica and up 10.4% in Los Angeles. And the low inventory level persists while the escrow cancellation rate remains at historic highs. Per Redfin, 64,000 or 15.2% of escrows cancelled in August nationally, slightly down from July’s high of 15.5%, but well above August 2021’s 12.1% rate. New listings also dropped in August, which is not news.

What is news? The Real Deal reported that the declines in new listings hit its 10th consecutive week to 13% annually across the nation. The drop in new listings cannot be explained by just vacations and school starts. Beverly Hills, Santa Monica and Los Angeles experienced 23.3%, 25.7% and 14.7%, respectively in declines this August compared to the previous year. Not surprisingly, sales are down. California year-to-date sales were down 14.9% in August and existing homes sales were down 24.4% from August last year according to the California Association of Realtors. Southern California dipped 28.8% versus last year. Local markets suffered similar if not higher declines. Beverly Hills was down 40% year-over-year, Santa Monica 23% and Los Angeles 28%. Pending sales are also down according to the National Association of Relators.

In the U.S. pending sales dropped 24% in August compared to a year ago and dropped 31.3% in the West. Despite the continued low inventory levels, the median number of days it took to sell a California single-family home was 19 days in August 2022 and nine days in August 2021. Locally, the stats are very different. In Beverly Hills, the days on market was down 8% vs. August 2021. Los Angeles is down 3%, but in Santa Monica, the average market time increased 20%. Sales prices, however, continue to climb. Using the average sold price per square foot, local sellers have continued to see gains this year when compared to August 2021. In Beverly Hills, sellers saw an increased price average of 13%, while Santa Monica and Los Angeles sellers saw increases of 10.2% and 3% respectively. According to The Real Deal, the week of September 15th saw an annual increase in the median list price of 11.7% – the 39th consecutive week of a double-digit increase. However, in August 19.4% of sellers reduced their asking prices, according to Realtor.com. This is up from 11% earlier in the year. Overall, sales are down, prices are up and inventory supply is still below demand, although improving slowly. As Realtor.com’s Chief Economist Danielle Hale wrote, “The big shift in inventory that helped shift the market in a buyer-friendly direction has lost some momentum.”

Mortgage rates will certainly have some impact as the Fed continues to raise rates. Now buyers are finding mortgage rates as high as, if not more than 6%. Still, historically low rates but to buyers planning on 4%, it’s a shock. In fact, mortgage applications are down 28.6% vs. a year ago for the week ending September 9th, according to the Mortgage Bankers Association (MBA). Nevertheless, the actual rate is less important to buyers than their ability to service the debt. For the week of September 9th, the MBA reported that Adjustable-Rate Mortgage applications rose 9% year-over-year. To recap, mixed economic signals continue and I’m always available to help you decipher what they mean for your current selling or buying prospects.

I have a few ideas such as why you need a new approach in setting an asking price or how the Residential Purchase Agreement can help lessen the buyer’s mortgage costs. Please don’t hesitate to reach out to discuss how today’s overall residential real estate market impacts your specific property or plans for future purchases.

Here’s the current scenario for today’s residential real estate market: Buyers are talking about waiting for the big price drop to come. Some even say there will be a 15-20% decline. Sellers, on the other hand, bring up their property’s Zestimate on Zillow and the multiple offers the house across the street got last month.  It’s become something of an impasse with no clear winner in sight.

Both perspectives are right and both are wrong.

Economists at Redfin recently released a report that looked at the national market from June 5th to July 3rd, the time that the market changed due to the upswing in mortgage rates and the declines in the stock market.

In that period, 52% of homes sold above list price, which is down 1% from the same period a year ago. The average house sold 1.9% above list price and it took the same amount of time to sell this year as last.  Across all sectors, the residential real estate market is still setting price records.  The national median existing home sales price hit $416,000, up 13.4% versus a year ago. In Southern California home prices rose 8.4% year-over-year.

However, 7% of homes for sale each week during this time period reduced their asking price and 14.9% (60,000 escrows) canceled in June.  That is the largest percentage of cancellations recorded, excluding the first two months of the pandemic, since Redfin began tracking cancellations in 2017.

The impact on sales is just beginning. According to the National Association of Realtors (NAR), existing home sales dropped 5.4% in June from May and 14.3% from June last year.  In the West, the NAR says sales declined 11.1% from May and 21.3% from June 2021.  The California Association of Realtors (CAR) is projecting residential sales to be down 14.4% this year as compared to 2021.  CAR also noted that the Southern California region has had the biggest year-over-year drop in unit sales: a 27.1% decline year-over-year.

The national inventory increased 9.6% from May and 2.4% versus June last year, according to NAR. CAR finds that active listings are up 64.4% in the state versus last June and up 28.8% from May.

If price reductions and inventory levels are increasing, why are sales prices also increasing?  And why did Mark Zandi, Moody’s Analytics Chief Economist, predict on CNBC last Wednesday that real estate is going into a freeze with prices remaining flat for the next two to three years?

Supply and demand is the big picture answer. Supply is still going to remain low compared to buyer demand.  When interest rates were at historic lows, many people either bought or refinanced.  They have no motivation to sell a home financed with cheap money for a new property financed at a higher rate.  Before Covid, the average homeowner stayed in their property five to seven years.  The new market is going to see that timeframe expand.

Shouldn’t higher mortgage rates dampen buyer demand?  Yes and no.  Buyers care more about the monthly payment than the interest rate.  And, the mortgage industry has responded…the Adjustable Rate Mortgage (ARM) has made a comeback.  I’ve seen rate sheets with ARMs in the 4% range and 30-year fixed rates in the 5% range.

Another thing to consider is the comparable or “comp” price (what recent sales indicate a property should sell for).  This data is always behind the action because the sales price is agreed to as much as 45 days prior to closing.

If inventory continues to remain low and buyers can find affordable, monthly mortgage payments, then we still have a seller’s market.  It may not be as strong as it was last year or even three months ago, but that is good news.

“Homes listed competitively are still selling very quickly,” according to the Redfin economist and that’s the key variable in all of this:  LISTED COMPETITIVELY.  If the market, through lack of offers or showings, tells a seller that they have missed the competitive price point, they need to react quickly and make the necessary adjustment.  I am observing this in both the current sales data and in conversations with colleagues.  Homes priced just below a price justified by comparable sales are still receiving multiple offers.  The days of 10 plus offers are over, but five offers aren’t unheard of now.  And, with only a few offers, the sellers can optimize the selling price.  Properties listed at “comp” prices seem to be sitting, taking price reductions and selling lower than expected.

To recap, there’s mixed economic signals out there and I’m always available to help you decipher what they mean for your current selling or buying prospects. Please don’t hesitate to reach out to discuss how today’s overall residential real estate market impacts your specific property or plans for future purchases.