We just closed out the first quarter of 2017. How much are people paying for homes? As a home buyer in Los Angeles, what can you expect for yourself?
Before We Get Started...
These places are changing. Like physically going through serious changes that are a lot more complicated than supply and demand. There is real wealth to be made over the long-term.
OK, let’s take a look:
This neighborhood just had a huge quarter. Prices are pushing higher than ever, and faster than anticipated. The typical home in Eagle Rock is 1,500 sqft, 3 beds, selling for $850,000, and fast. There are very few homes for sale, so they get picked up quickly.
Know This: If you are looking in “NoCo” (North of Colorado), good luck finding anything under a million dollars. In fact, the average list price as of this very moment (April 4th, 2017) is just under $1.4 million.
I want everyone reading to let that soak in.. Do you think homeowners expected that when they first bought? I doubt it. Ask yourself: Where ELSE in Northeast L.A. are homeowners buying today and NOT expecting that to happen??
The typical home is selling for around $495,000 and taking about 30 days to sell, which is a little longer from last year (21 days). Sales prices in the first quarter took a little dip from the second half of last year. Every time we hit new highs (averaging over $500,000 for a sale the first time ever), we see a little dip. In case you're wondering, I call this the "celebration dip", and don't expect that to hang around for long.
Last thing: The typical home is selling for $495,000 but that will depend which pocket neighborhood you're in. For example, if you’re looking in Hillside Village, you might pay $495,000 for a 2-bedroom. You’re going to hear this a lot today.
The typical home is selling for around $710,000, and taking barely 3 weeks. Consider the fact that most of these homes open escrow around the holidays, and you can appreciate how fast of a market this is. Sales prices are about $20,000 more expensive than homes late last year, which is a huge jump for just the first quarter. Hold on to your butts this year!
Also... That price of $710,000 is most likely a fixed up 2-bedroom or a 3-bedroom that needs some updating.
Sales prices are up significantly from the second half of last year. The typical home is selling for 875,000, 3 beds, 1,700 sqft, and taking less than 3 weeks to sell. In fact, the market is extremely similar to Eagle Rock. There are lots of amazingly restored and renovated million dollar listings, and the other half being more reasonably priced.
What blows My Mind: There are bidding wars on homes at the very top of the market. Usually that type of action is reserved for the bottom and middle of the market. Not anymore. Today, everyone fights for everything in these prized locations.
The typical Glassell Park home is selling for around $775,000, 3 beds, 1,600 sqft, and taking about 30 days. For what you get, this is one of the best bargains in Northeast Los Angeles. The competition is not as hot, and prices are appreciating just as well as other neighborhoods. Similar in landscape to Mount Washington, these neighborhoods don't offer a "walkable" neighborhood with shops and restaurants, but their proximity to Eagle Rock and Highland Park is what makes them valuable.
Home values are pushing close to $900,000 in Atwater Village for a 1,500 sqft, 3-bedroom home. Really nice 2-bedrooms are going for around $800,000. The market has slowed down a little, and on average, it's taking 45 days to find a buyer. Compared to neighborhoods like Eagle Rock or Mount Washington that have some monster sales, most of the homes in Atwater are similar in size and price. So, if sellers want to push values higher, they'll have to sell bigger homes (i.e. - renovations with extra square footage added).
2016 was the year that Silver Lake’s average sales price broke a million dollars. That's a huge paradigm shift. This year, we're seeing home values push higher, and the market has responded well. Days on market has stayed at 3 weeks, and the number of price reductions hasn't increased. Today, the typical home is selling for around $1.1 million, 3 bedrooms, and 1,800 sqft. However, if you go north of Sunset, you can expect to pay around $1.5 million.
Your typical Echo Park home is a 3-bedroom home, selling in about 3 weeks for 104% of asking price for $825,000. However, if you’re in the hills north of Sunset and Scott Ave, it is most likely a 2-bedroom home, but prices are anywhere from $500,000 to a million. It’s a very diverse market up there. Probably the most diverse in all of Northeast L.A. For that reason, anybody and everybody is looking for a home in the neighborhood, so buyer competition is rigorous.
Just for fun... Boyle Heights & City Terrace
The typical home is still around $450,000 for 3 bedrooms, and the majority of these homes need work (you can still find 2-bedrooms under $400,000). You can find renovated homes for sale, but they usually sell for much higher than the rest of homes for sale and they go very quickly.
Until the overall quality of listings improves, this will be a going trend. Median prices increased over 25% when prices went from $300,000 in 2015 to $380,000 in 2016. There's no reason to suspect that trend will slow down this year.