To be sure that you receive this e-mail in your inbox (not in a bulk folder), please add the following

to your address book:

winnie@winnielicht.com

Content Real Estate Newsletter - 6. 2

1. Market Update
2. Featured Listing
3. New & Current Listings
4. Article 1: HUD Chief Is Optimistic on Housing Accord, WSJ – 6/26/08
5. Article 2: Home slump harder to reverse than usual: Harvard, Yahoo Finance – 6/23/08
6. Article 3: Exodus of S.F.'s middle class, SD Chronicle – 6/22/08
Market Update
I was in a seminar last week and the speaker brought up a very intriguing question - Is real estate a prod
commodity?

A product is a good or service that is created, priced by the maker then, marketed to sell at a pre-determ
price. The demand for the product is created by the supplier and is strongly affected by the marketing c
An example of a product would be a luxury item, where the price is set by the maker, who determines th
branding, marketing, and the eventual sales price.

On the other hand, a commodity is anything for which there is a demand and is traded on an open mark
we think of commodity, we typically think of basic resources and agricultural products such as gold, silve
oil, wheat, coffee beans…etc. These well-established raw materials are traded in the commodities mark
price of each is determined as a function of its market as a whole, and is constantly adjusting depending
available supply of the commodity. The demand for a commodity is affected by price more so than exte
forces, such as marketing.

Demand for housing is invariable, but can be affected by demographic changes. "More people alive,” re
greater demand for housing. Everybody needs a home and "buys housing everyday" with the payment o
mortgages, or lives free and clear based on prior payments. A "Got Housing?" campaign would be silly s
everyone already understands they need housing. The ‘Buyer Pool’ is everyone, rather than a select few
enough money and a desire to move. When prices are respectable, more people have a tendency to bu

Based on the definition above, real estate functions more like a commodity than a product. However, si
isn’t an open and efficient market where real estate can be freely traded, it is critical to also market a pr
a product and afford it the highest visibility and accessibility. There are also other factors and conditions
contribute to the ability of a buyer to purchase a home, such as wages, unemployment, interest rates, a
inflation. Such is the contradiction of the real estate market.

I would be happy to speak with you in greater detail, should you like more information on the topics disc
above, properties listed below, or more information about the marketplace.

Have a great weekend!

The Playa Vista Specialist,

Winnie Licht
Broker, Realtor ®
Coldwell Banker - Playa Vista
Diamond Society Distinction – Top 8% internationally
5450 Lincoln Blvd.,
Playa Vista, CA 90094
Direct 310-745-7468
eFax 323-375-0193
winnie@winnielicht.com

www.PlayaVistaHomeSales.com
Featured Listings
Villa Savona #407 2 bd + 2 ba +
work room

A True Urban Oasis! This light & bright, top-floor, single-

level, corner unit is located in Villa Savona, a highly
desirable 39 unit building. This one shows like a model
home & features: extra high ceilings; living room balcony
w/ endless city views; tastefully upgraded kitchen w/
Ceasarstone countertops & designer tile backsplash;
raised-panel beech wood cabinets; stainless steel
appliances; gas fireplace; lots of closet space; extra large
laundry/work room & all the Playa Vista amenities.
For details, please go to http://www.VillaSavona407.com

Shown by Appointment only

OFFERED $625,000*
Metro #207 2 bd +
storage

Relax & enjoy life in this ultimate serene 1,67

urban retreat. It features hand distressed wal
hardwood floors throughout; gourmet kitchen
in stainless steel appliances, granite counter
designer backsplash; fireplace in dining room
large master suite with office area; luxurious
bath with separate marble clad shower, soaki
marble counter tops and a 75 square foot wal
closet; two balconies plus extra 45 square foo
closet inside unit.
For details, please go to http://www.Metro207

OPEN HOUSE: Sat + Sun, 6/28 + 6/29, 2pm t

OFFERED $599,000
New & Current Playa Vista Listings * denotes brand new listings ** indicates listings with recent pri
reduction
BUILDING PRICE BD/ BA SQ. FT. HIGHLIGHTS
Bridgeway Mills #4 $895,000 1Bd/3.5Ba 2,450sf End unit townhouse with attached 3-car
Tapestry II - #6* $849,990 3Bd/2.5Ba 2,140sf True townhouse with attached garage
Bridgeway Mills #4 $795,000 2Bd+loft/2.5Ba 2,050sf 4-story townhouse w/ private 3 car gara
Carabela #110 $768,000 3Bd/2.5Ba 1,989sf 2-story unit with office as possible 3rd be
Paraiso #108* $709,000 2Bd/2.5Ba 1,703sf 2-story unit in the highly sought after fr
2Bd+den/2.5B
Metro #333 $678,000 1,675sf 2-story top floor condo with Crescent Pa
a
Metro #412 * $659,000 2Bd/2Ba 1,620sf Top floor single level open unit. Faces Je
Esplanade #322 $589,000 2Bd/2.5Ba 1,237sf 2-story top floor unit with courtyard view
Metro #209 $574,900 2Bd/2Ba 1,230sf South facing unit single level unit w/ vw
Metro #125 $559,000 2Bd/2.5Ba 1,230sf Highly upgraded condo w/ custom built-
Concerto Lofts $290,000 1Bd/1Ba 595sf Modern & brand new lofts – Controlled P
Articles
HUD Chief Is Optimistic on Housing Accord
The Wall Street Journal - June 26, 2008

New office complex rising in Playa Vista

Tech firm Belkin International will be a major tenant in the $1.2-billion development, which is being built on a 64-acre site where Howard Hughes once ran his
LA Times - June 27, 2008

Work has begun on the first phase of a $1.2-billion office complex in the Playa Vista development south of Marina del Rey as the popular Westside o
remains strong in the face of the nation's faltering economy.

A major tenant for the complex, Belkin International Inc., was announced Thursday by the developers, Tishman Speyer and Walton Street Capital. W
at the end of next year, the new buildings will be headquarters for technology company Belkin.

Belkin will occupy 150,000 square feet, almost half of the space in the four-building first phase of the office campus, after it consolidates other Los A
offices.

The price of the lease was not disclosed, but a real estate expert who knows about the deal but asked not to be identified because negotiations were
valued it at more than $100 million.

The new development is rising on a 64-acre site that includes two enormous hangars and offices where mogul Howard Hughes built his famous Spru
airplane in the 1940s and ran his aviation empire, which included an airfield, for decades. Those buildings have been designated as landmarks and m
preserved.

Tishman Speyer plans to renovate the former Hughes buildings when it finds tenants for them, said John Miller, senior managing director of the New
developer and landlord. In the meantime, the company leases the Spruce Goose hangars to movie and television productions. "Transformers" and it
sequel were both filmed there, Miller said.

The developers hope to attract more high-tech and entertainment-industry tenants to the site where -- long after Hughes' company left the scene -- t
DreamWorks SKG once planned to build a studio before the deal collapsed in the 1990s.
The office complex designed by Gensler is expected to have more than 1.6 million square feet of new environmentally friendly office space plus an a
500,000 square feet of renovated space in the former Hughes buildings. To woo its target tenants, the developers plan landscaped gardens, athletic
fields, a skateboarding park, a band shell and water features.

copyright © 2008 Winnie Licht