Helping homebuyers and home sellers buy and sell real estate in NELA for as long as I have, I’ve seen it all. Homes for sale in Mt. Washington, for instance, offer large modern homes as well as tiny bungalows. Homes for sale in Pasadena offer ginormous California Craftsman homes as well as very small ones. Many are buying and selling homes to upsize. They need more space. But we also see many trying to downsize. They require less space.
Rather than thinking “upsize” or “downsize”, for many good reasons, we might ought to consider the modern term “rightsizing”.
Interesting things are afoot in the Northeast LA real estate market. Anyone keeping their eye on prices of homes in Glassell Park and Mt. Washington have noticed that prices up from where they were just a year ago. Those watching homes in Highland Park and Eagle Rock are noticing homes staying on the market longer. What does it all mean?
Good question! Here’s the latest news from the top. Leslie Appleton-Young is California Realtors’ Chief Economist and we are lucky to have her help us make sense of a very big subject: the real estate market.
Magical thinking and this crazy real estate market. What am I talking about? I have some examples.
After a long, steady period of seeing homes for sale in Highland Park and Eagle Rock selling fast and high, and homes in Glassell Park and Mt. Washington being snatched up with record multiple offers, there are signs that trend is changing.
Everyone is talking about it—the market seems to be slowing down! I’ve talked to Realtors, potential sellers, buyers, and the man on the street—they all feel the same. So are they right? Well, let’s see. Looking at the Trends analysis for Eagle Rock since May of 2012 we see this:
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.
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.”
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!
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.
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.
While homes for sale in Highland Park, Eagle Rock and Mt. Washington are still greatly in-demand, there are fewer homes on the market in Northeast Los Angeles. This is true of real estate in Altadena, Pasadena and surrounding areas.
In the quest to understand why Northeast Los Angeles is experiencing such low housing sale inventory, I thought it might be helpful to start with some actual numbers.
There is quite a bit of talk about how many more people there are in Northeast Los Angeles than there used to be. For some perspective, I have also included nearby South Pasadena.
They say "timing is everything" about, oh, everything and they're probably right. It's certainly true about buying and selling real estate. This is especially true in the red-hot Northeast Los Angeles real estate market, where homes in Mt. Washington, Highland Park and Eagle Rock are in high demand and real estate in Pasadena, Glendale and Altadena continue to surge.
Many potential sellers believe, for instance, that the holiday season is not an ideal time to put their NELA home on the market. Are they correct? This question is more complicated than it seems, but there is a way to understand it all.
Homebuying is both an art and a science, whether we're talking about buying in the ultra-hot Highland Park real estate market or purchasing homes in Glassell Park, Mt. Washington or, our favorite neighborhood, Eagle Rock. There are tried and trued methods and rules that buyers should understand well in advance of signing on the line that's dotted. Here's one of those vital rules to remember:
When purchasing a home, never assume anything. I can’t count how many times I've heard homebuyers state: “But I assumed that the Seller would leave the refrigerator (or stove, or washer/dryer, or garden tools, etc.).”
Everyone from homeowners, homebuyers, home sellers, Eagle Rock realtors and market analysts have been keeping a close eye on the Eagle Rock real estate for a long while. The long, steady growth of the market has been the talk of the town. Now enough data is in and the information we can glean from the numbers is telling indeed.
There are so many interesting things to note in this table (all data from TheMLS):
The Northeast Los Angeles real estate market continues to be strong, if not for how many homes are on the market, than strong in terms of the average final price of homes sold. Homes in Eagle Rock and real estate in Glassell Park and Highland Park continue to be in-demand. A quick look at the data confirms that even in 2017, it's still a perfect time to sell your home and, if you're seeking to buy, there are still some good deals out there to be had.
Let’s see how some popular zipcodes compare in terms of some of the factors we have to consider when looking for that dream house. This table looks at how competitive a marketplace is in terms of available listings of single family homes to buy and their average sales price, as well how much and what direction the market has changed since end of summer 2015.
It’s no secret that the communities that comprise Northeast Los Angeles – Eagle Rock, Highland Park, Mt. Washington and Garvanza, to name a few – represent a hot real estate market. Homes for sale in Glassell Park can draw several dozens of prospective buyers to an open house. Homes in Pasadena almost always sell quickly and with multiple offers. How does that work exactly?
Selling real estate is a numbers game. The more potential buyers that see your listing, the more inquires we receive. The more inquiries we receive, the more likely we are to have a lot of prospects show up to an open house or request a showing. The more showings, the more offers. The more offers, the chance of achieving an over-the-asking-price offer for your home.
The communities that make up Northeast Los Angeles have generally been seen to be progressive and environmentally conscious. More and more, we see homes in Highland Park and real estate in Mt. Washington and Eagle Rock and Glasell Park coming on the market with what is today known as "sustainable landscaping".
Landscaping that requires little attention and resources is seen by homebuyers as a positive attribute in a home for sale for many good reasons.
For instance, did you know that if you're a homeowner in Los Angeles, you can still get a rebate from the Department of Water and Power (DWP) for removing your water-guzzling lawn and putting in a sustainable landscape?
Believe it or not, I spend more time thinking about my home community of Eagle Rock than I do about Eagle Rock real estate. Homes for sale in Glassell Park occupy my thoughts less than my appreciation of the community itself. Keeping a clean, safe community, after all, is what makes a neighborhood great.
I’ve noticed that in the midst of the chaos of modern day life, it's easy to find one’s self grappling with issues such as what is my purpose? Why am I here? What can I do to make the world better? These questions can be overwhelming, even paralyzing.
Remembering the “broken window” theory made famous by former New York City police chief, Bill Bratton, I decided to stop being overwhelmed and took a single step towards improving my community—I started picking up litter. It isn’t easy to believe that this one small step can actually can make the world a better place, but this is a task that almost anyone can perform and immediately see a positive difference in one’s surroundings.
The Northeast Los Angeles region's real estate market is always in flux. Many potential homebuyers are waiting by the sidelines for the perfect time to buy homes in Eagle Rock or invest in Highland Park real estate. The question for them is, "when is the perfect time?". The answer: Now.
So far this year, the Eagle Rock market has been almost as low in active listing inventory as it was in 2013, when the market caught on fire in the face of withering inventory and rapidly increasing prices. That means that there were usually fewer than 20 homes for sale then and now.
Suddenly, we have 26 homes for sale, and 7 of them are listed for over $1 million! Hold on to your hats—one is even listed for over $2 million!
Who would have thought 20 years ago that the rising values of homes in Highland Park and Eagle Rock - as well as real estate in Mt. Washington and Glassell Park - would be the talk of the town? If you own a home in one of these regions - or are looking to buy - odds are that home values are on your mind.
Regardless of whether you’re looking to buy a home or sell a home, it only makes sense that you will eventually want to gain an understanding of your own home’s value, if you’re selling, or the value of a different home if you’re buying.
But with all the information, articles, blogs and website tools out there offering home evaluations, its become easy to get, well, confused. That’s because as you’re performing your research and due diligence, the first thing you’ll notice is that there is little consistency in the values offered. One evaluation will be wildly different from the one before or after.