Hermosa Beach Schools Going Bankrupt

Home buyers who are considering buying a home in Hermosa Beach should seriously reconsider.  I have kids, and I therefore know lots of people with kids.  Many of the people I know have moved to Hermosa Beach for the great schools.  What many people probably don't know is that the Hermosa Beach School District is going to merge with Los Angeles Unified School District (LAUSD) if some serious funding doesn't appear soon.

According to this article on CNN's site ( http://money.cnn.com/2005/03/22/real_estate/homeguide_schools/ ), homes in cities with good schools may be worth 12% to 25% more than comparable homes with worse schools.  LAUSD is as bad as it gets on Earth and a handover would result in lower standardized test scores.  It is safe to say that if the Hermosa Beach School District is handed over to LAUSD, property values in Hermosa Beach should rapidly fall 10% or 20% or more.  That is an immediate and permanent $100,000 to $250,000 decrease in price on a $1 million home.


Here are a couple quotes from the article:

Education is so important, say agents, that buyers without children should sit up and pay more attention to school."By going in areas where the schools are not as strong, you're essentially cutting out a potential group of buyers," , said RealEstate.com general manager Jeff Lyons.In his hometown, Charlotte, N.C., houses in school zones with higher test scores sold for an average of 12 percent more than similar houses in areas with lower test scores, based on research by UCLA and Dartmouth for sales between 1994 and 2001. That discrepancy is likely to be even greater today.In the suburbs of Columbus, Ohio, buyers might pay as much as 25 percent more for a house in a desirable school zone, according to Jill Rudler, a real estate agent with HER Real Living. "I've always looked for property in areas where the schools are improving," she said. "I'm willing to pay a little more in taxes to ensure that my investment is solid.".....
"I was just working with a family looking for property in the $5 million range," said Meris Blumstein, a real estate agent with the Corcoran Group. "They insisted on being in a particular school district. That was their first criterion."

I will be dwelling on this topic until this issue is settled. 


Hermosa Beach City Council
Peter Tucker Mayor peter@electpetertucker.com
Howard Fishman Mayor Pro Tempore kkfish@earthlink.net
Jeff Duclos Councilmember jeff@jeffduclos.com
Patrick "Kit" Bobko Councilmember kit.bobko@gmail.com
Michael DiVirgilio Councilmember mdivir@gmail.com
Councilmembers' phone number (310) 318-0216
Councilmembers' fax number (310) 372-6186


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