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LA Digs - Northeast LA Real Estate Blog

Welcome to LA Digs, the real estate and Northeast Los Angeles community blog written by Realtors Tracy King and Keely Myres.

Here, we share tips, market updates, and local news bits to keep you informed on what's happening in Northeast Los Angeles and the surrounding neighborhoods. Read on to learn about the latest in your neighborhood!

NELA Real Estate: The Numbers - Jan 1-May 31, 2017/2018

NELA Real Estate: The Numbers - Jan 1-May 31,  2017/2018

Just when some said real estate prices can't climb any higher, guess what? They're still climing in Northeast Los Angeles.

The numbers are in and there are no surprises. Homes in Highland Park and Hermon, Eagle Rock, South Pasadena, as well as Mt. Washington and Glassell Park homes are selling well, selling fast and selling for a lot.

Let's look at zip Codes 90041 (Eagle Rock), 90042 (Highland Park-Hermon) 90065 (Glassell Park-Mount Washington), and 91030 (South Pasadena) averages.

Note: All data is taken from , except the last column in 2018 is the percent increase from 2017 to 2018. The first column is first the year, then the average sales price for all single family homes in that zip code, the zip code with just the homes that sold for $1 million or more. AV SF is "average square feet", AV $/SF is "average price per square foot". The DOM is "days on market". LP is the "average list price" when the property went into escrow. The LP/SP is the list price/sales price ratio—a number over 100 is what percent the sales price exceeded the list price. And then #SALES is "number of sales" for that category January 1-May 31. %YOY$ is the percent increase in sales price from 2017 to 2018.


 

2017 AV SF AV $ / SF DOM LP $ SP $ LP/SP # Sales
90041 1630 588 53 882,659 900,602 105 60
90041
$ Million
2508 513 83 1,287,643 1,299,509 102 14
90042 1330 599 41 696,853 724,068 104 110
90042
$ Million
2473 441 22 1,049,200 1,124,380 109 5
90065 1540 549 48 772,614 790,986 102 112
90065
$ Million
2473 501 52 1,131,187 1,166,733 104 15
91030 2338 659 40 1,405,591 1,460,193 105 44
91030
$ Million
2484 662 40 1,498,526 1,556,803 105 38

 

2018 AV SF AV $ / SF DOM LP $ SP $ LP/SP # Sales % YOY $
90041 1781 628 40 1,035,928 1,062,825 105 60 12.72
90041
$ Million
2437 622 54 1,144,392 1,465,333 104 24 12.76
90042 1525 611 41 809,800 845,285 105 128 16.74
90042
$ Million
2072 574 31 1,070,463 1,139,133 107 30 1.30
90065 1548 625 36 852,667 888,339 105 126 12.30
90065
$ Million
2266 587 28 1,183,485 1,247,163 107 33 6.87
91030 2353 746 35 1,627,598 1,687,116 105 43 15.54
91030
$ Million
2461 744 37 1,708,633 1,769,667 105 39 13.69

 

Yes, you’re right—the market has continued to climb in Northeast Los Angeles. And it has climbed even more in South Pasadena. I’m sure this will spark more discussion of “are we in a bubble?” but I have been hearing from financial and real estate insiders that we have at least until 2020 before there are any signs of a major correction. And I have also heard  “it can’t go on like this,” with several compelling reasons why not. There is a lot of gray between “bubble burst”, “flatten out” and “keep going up.”

If you keep saying the same thing about the market, it will eventually be true—because real estate and financial markets are cyclical. The difficulty is exactly “when” markets will change, not “if” they will change. It’s sort of like predicting exactly when someone will die. You can be sure that it will eventually happen, but when exactly is based on so many variables, any prediction is only a guess. Maybe it’s a very educated and well-reasoned guess, but that’s not the same as knowing. Because NELA and South Pasadena have very few developments and most of the single family homes are custom built, it’s especially difficult to make general rules about their value.

This is what I’ve seen: the homes that sell for the most money tend to be those that are in great condition, great style, great locations, and/or have great potential. Location seems to be the most important, but great and stylish updates are a close second. That means that if your house is in great shape but needs updating and it’s not the best location, you aren’t going to get top dollar. However, you might be surprised by how much you do sell for in this market. It will almost certainly be more than you ever would have made before now.

Thinking that now might be a good time for you to sell? We know some stuff about how to strategize getting you the most possible now for your home. Call us for a consultation.

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This Real Estate Rule Changed over Twenty Years Ago

This Real Estate Rule Changed over Twenty Years Ago

If the home you sell was your primary residence two of the last 5 years, guess what? There is no tax on your capital gains!

Whether we’re talking homes for sale in Glassell Park, commercial real estate in Eagle Rock or homes in Mt. Washington, nobody can dispute that it has been a seller’s market. Northeast Los Angeles real estate market remains red hot and many property owners have cashed in.

Though surely not everyone …

I can’t tell you how many times over the last 29 years someone has told me, “I don’t want to sell because I don’t want to pay the tax if I don’t buy another property within 2 years.”

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The 2017 Million Dollar Story Exceeds Expectations (Well, Mine Anyway)

The 2017 Million Dollar Story Exceeds Expectations (Well, Mine Anyway)

An investment in homeownership in NELA isn't just a sound investment in the good life. It's a good investment period. The numbers tell the story and they don't lie.

It's official. Owners of single family homes in Highland Park, Eagle Rock, Mt. Washington and even Glassell Park homes are asking - and getting - a million dollars or more. Let's face it: There's never been a better time to be a homeowner in Northeast Los Angeles. The numbers are in!

As of December 29, 2017 (the last day of the year that sales could be recorded by the County), zip code 90041 had 51 single family homes sell for over $1 million each, including the highest sale ever recorded here. And now in January, 2018, an even higher highest sale ever closed escrow! Yes, after 7 years of trying with various agents, the almost 3-acre historic Bekins estate at last sold to a comedian and his heiress wife for $5,250,000!


The following table shows the number of $million homes sold over the last 6 years in Eagle Rock (zipcode 90041), Highland Park (90042), Glassell Park (including Mt. Washington--90065) and for some contrast, South Pasadena (91030).

Million $ Single Family Homes

  Zip Code 90041
Eagle Rock
90042
Highland Park
90065
Glassell Park
Mt. Washington
91030
South Pasadena
 
  2012 0 1 2 30  
  2013 0 1 4 63  
  2014 10 3 5 76  
  2015 20 7 18 95  
  2016 34 10 27 97  
  2017 51 19 50 95  

What is going on? Are we in a bubble? This is the question so many people are asking now. Respected real estate experts (and it seems like everyone else) have been asking this question since 2012. These very same experts have been absolutely certain that these price increases are unsustainable. And yet they continue. Why? Partly because we continue to experience low interest rates and low inventory. Also, Northeast Los Angeles is still cheaper than most communities to the west of us like Los Feliz, Silverlake, even Echo Park. We are considered the closest “decent” neighborhoods to downtown according to many buyers. Others are beginning to look at other neighborhoods like El Sereno and Lincoln Heights who are seeing prices go up accordingly.

Let’s face it, prices go up and some people can no longer afford to buy where they want to. This is not a new story, but it’s painful if it’s your story.

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The new Tax Reform Act: How will it affect your real estate life?

The new Tax Reform Act: How will it affect your real estate life?

The newly passed Tax Reform Act supplies perks based on investments in property, but not everyone benefits and there is a downside.

It's been all over the news. Pundits have been spinning the plusses and minuses of the newly passed Tax Reform Act. Some say homeowners are going to get the shaft. Some say there will be a windfall for homeowners and investors. As a long-time real estate professional, my inbox has been inundated with questions from those who just purchased homes in Highland Park and Eagle Rock this year, as well as those looking to invest in homes for sale in Pasadena, Mt. Washington and other areas of North East Los Angeles.

The long and short of it? I have good news and I have not-so-good news. The good news is, the new tax reform act that was just passed by both houses of Congress isn't as bad as it could have been for those who have some financial interest in real estate. The not-so-good news is, it's not going to be as good for real estate as it has been over the past several years.


  1. We can still write off some state and local taxes up to $10,000. The bad news is that is actually a tax increase for those of us who have more than an $800,000 house and/or still pay some other state or local taxes.

  2.  We still have the mortgage interest deduction, but only up to a mortgage of $750,000, instead of the $1,000,000 it has been.

  3. The $500,000 capital gains exclusion is not affected! If you have lived in your primary residence for 2 of the last 5 years, you and your spouse can each deduct up to $250,000 of your net capital gain when you sell your house.

So there it is. The basic nuts and bolts. The rules haven't changed. When it comes to investing in any sort of real estate, the rule is, take your time, perform your due diligence, be well informed and understand the benefits and potential pitfalls.

It has always been advisable to consult your tax consultant before making any decisions regarding your real estate activity. This is certainly true today.

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Priced Out of Prime NELA Real Estate? There's Still Hope For Something Affordable and Close By

Priced Out of Prime NELA Real Estate? There's Still Hope For Something Affordable and Close By

Let's face it: When buying a home, the word "affordable" is relative, but that doesn't mean we shouldn't look at what the numbers say.

The big question plaguing many wannabe homebuyers today is, where can I afford to buy? They say they can’t afford the high sticker price of homes for sale in Mount Washington, Eagle Rock or Highland Park. For many buyers, even homes for sale in Glassell Park - once up-and-coming and affordable - is out of their reach.

Always being mindful that the median price of affordable places like Detroit, Michigan ($36,000), Harlingen, Texas ($84,000) or even nearby Desert Hot Springs ($188,000) is what more people think of as "affordable", there are some communities in Los Angeles, not too far from Eagle Rock, that are a bit more affordable as you can see in the table below.

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1629 Hits