The L.A. real estate market is hot, properties keep increasing steadily, and there is much more room to grow.
El Sereno prices are beginning to align themselves with the rest of the Northeast L.A. markets by averaging 10% each year, which means the market is maturing.
Annual appreciations have been in the 15% - 20% range for the past three years, and this year should round out to 10% give or take.
This is good news because we want the market to taper off, not fly too close to the sun and blow up in our faces.
Earlier this year, I predicted average sales prices for 2017 finishing around $550,000, and as of today, they are at $547,000, and we still have a few months to go.
Speaking of blowing up, the Boyle Heights market has been red hot for years with annual appreciation over 15% for at least the last five years.
The average price for a home in Boyle Heights in 2012 was $198,000. Today, it's over $435,000.
Wish you could go back in time? I suggest you buy now, so you don't wish you bought today, a few years from now.
In the next five years, if the market stays relatively the same, those same homes will easily be worth over $700,000.
In the future, get ready for South Central to start changing... Like South of the 10 and east of the 110 (90011 zip code).
Investors have been picking up properties for dirt cheap as early as 2010 when average prices dropped to a low of $185,000. Today average prices are pushing over $450,000 at $400/foot and investors are starting to cash in on those purchases.
Get ready to see more properties start to hit the market.
Not sure if you ready my latest article about down payments, but the State of California will give you a 5% down payment as a gift if this is your primary residents.
The maximum purchase price for this program is around $445,000, which is perfect for these neighborhoods. So if you can come up with a few thousand dollars for closing costs, you might be in business!