If you haven’t heard of Cypress Park yet, it’s your lucky day. Prices are low, they’re appreciating healthily, and there are homes for sale right now…
(Spoiler: At the end of the article, I talk about first-time home buyer benefits for this neighborhood.)
You should know, that this is not "new hipster territory", which may be a good thing. There are several condo developments along the L.A. River with completed phases, and more still in the works. In fact, the city council has been working to SLOW the progress down in this area because of how robust it was.
The great thing about Cypress Park is that it is riding on the coat tails of Mount Washington and Glassell Park, not to mention the fact that it’s on the L.A. River. And if you haven't heard… There is a BILLION dollar L.A. River revitalization project that is happening. It’s going to be incredible.
For starters, home values have been increasing at an average of 15% since 2011... that's AMAZING.
Supply & Demand: There are close to 900 single family homes in the neighborhood, and the turnover for the area is barely 2% which makes this a very exclusive neighborhood. Historically, there are around 20-30 sales each year. In 2014 and 2015, there were close to 40, and in 2016, it dropped to only 21.
There was a HUGE drop in new listings in 2016 that contributed to the low number of sales. In turn, this affected the “list-price-to-sales-price ratio”, days on market dropped to the lowest in history… and the average sales price broke $500,000 for the first time ever.
For 2017: We might see some serious fireworks. June through October are typically the busy months, accounting for the majority of listings for the year. If Sellers see these record sales prices and throw their hat in the ring, there will be plenty more opportunities for homebuyers. This neighborhood is changing. For both, new and existing, homeowners, everyone stands to acquire some serious wealth in the next few years.
If you want to see the Cypress Park's future, look at its sister neighborhood across the L.A. River to the south, “Frogtown”. It's a year or two ahead of Cypress Park, price-wise, but they are both appreciating at almost 15% each year over the last 5 years.
Average sales price in Frogtown DOUBLED from $295,000 in 2011 to $612,000 in 2016
Right behind them, Cypress Park doubled from $251,000 in 2010 to $503,000 in 2016.
**Calculated on sales prices based on the year the home was listed.
Just so you know... we're talking about home values DOUBLING! Where else in the country is that happening in just a few years?
For first-time home buyers, this is the perfect neighborhood to take advantage of low down payment mortgage programs because of the sales prices. I would LOVE to tell you more about it. But you have to reach out to me.
Imagine... buying a house with very little money down, while watching your value go up by $50,000 each year.
For Some Perspective… $50,000/year was the median household income for Los Angeles in 2015. But today, you can buy a house to do that on its own... and all you have to do is pay your mortgage. Amazing.
I think it’s time to buy a house, don’t you?