Remember when I said this last year? It was a bold claim, and just about everyone rolled their eyes...
We will see our first legitimate million dollar listing in El Sereno this year in 2016.
Well, here's what happened:
The highest listing in the El Sereno neighborhood for 2016 clocked in at $989,000. New construction, and sold very quickly actually. I was only off by $11,000. Not bad!
The second highest listing was a remodel in the coveted Hillside Village for $800,000. Sold in two weeks.
Average sales prices have increased by 18.4% last year compared to the year before.Keep an eye on this neighborhood, because they're just getting warmed up. More impressive, the average sales price for a single family home for 2016 came in at $502,000 (just as I predicted). It was $425,000 the year before.
This time last year, I thought we would see a lot more home sales in Boyle Heights by now, with home buyers looking for affordable homes. But, that hasn't happened yet. The operative word here is "yet". El Sereno's neighbor has been in the news a lot lately with protests, kicking out art galleries, burning books, and so on. This hits the pause button for real estate in Boyle Heights, and turns El Sereno into what I've been calling "Hipster Guadalcanal".
In case you were wondering: During WWII, Guadalcanal was a crucial staging area for the U.S. in Pacific Theater against the Empire of Japan. In 2017, I see more home sales in El Sereno that would have otherwise been in Boyle Heights. This will keep home values appreciating at a higher rate for longer.
It wouldn't surprise me to see the average price get close to $550,000 this year. If you are a buyer this year, that means starting to build some serious wealth--fast. Also, get ready to see more new construction. There are at least two big townhome projects in the works right now. One on Eastern and one off Huntington. The neighborhood North of Huntington is going to be the hot area this year. Great wide streets, tall palm trees, lots of opportunity. Lastly, get ready for a new restaurant or two.
As of right now, there's really no place to have dinner in El Sereno. Won't be that way for long. Once that happens, the neighborhood will hit their "Second Wind" with home value appreciation