With home sales having slowed down a bit in spring and summer, and with prices appearing to level off a little, there's been some speculation that we're witnessing the top of a real estate bubble in Los Angeles.
But a new report from real estate listings and sales firm Redfin seems to show that this market still has plenty of upward mobility. According to Redfin's data, the new median home price in the city is the highest we've yet seen: $615,000. That figure is up about 8 percent from August 2015 to August 2016. The boost continues “a run of annual price increases that’s lasted more than four years,” the report said.
The real sticker shock leader in Los Angeles real estate these days is Glassell Park, where prices for that time frame are up 17 percent. The median home price there is $750,000. That's “the highest it's been since we began tracking the data in 2010 — back when you could buy a home in the neighborhood for around $300,000,” said Redfin spokesman Jeffery Marino.
Additionally, nearby “Highland Park, Echo Park, Silver Lake and Mount Washington show consistent price growth and high competition,” the report stated.
But it's in some of the lower-priced neighborhoods that you'll find the hottest action. “The fastest market we tracked was Pacoima, where the typical home was off the market in just 16 days,” Marino said. A median-priced home in this old-school Latino neighborhood where Ritchie Valens grew up will still only set you back $385,000.
At the same time, inventory is growing. That means if you're buying, you'll have a wide range of choices. That doesn't mean that the market's getting clogged with unwanted homes. Marino explained that the inventory glut was “mostly due to a bunch of new listings added to the market in August – the most new listings added to L.A. since July 2013.”
And, still, you'll find eye-opening prices all around the city. The median price in “central L.A.” is $871,000, according to Redfin. In Echo Park and Elysian Park, once rough, up-and-coming communities, you'll need $795,000 to purchase median-priced digs, the firm found. Mid-City? $899,000! Silver Lake is almost a million-dollar 'hood, though we all know you can find places for even more than that, there. The median is pegged at $984,750. The gentrifying South L.A. community of West Adams still sounds like a bargain at $625,500.
“More inventory has provided some relief for L.A. home buyers,” said Redfin agent Anthony Altieri. “We’re not out of the woods by any means, however, and some neighborhoods are still highly competitive. But one lesson to learn here is that shopping later in the season can really benefit you if you’re not in a rush to move in before school starts in the fall. They say location is everything with real estate, but timing has a lot to do with it, too.”
Hope your credit's good.