LA Digs - Northeast LA Real Estate Blog

What we're seeing in the Eagle Rock, Highland Park and Mt. Washington housing market is happening all  around the state.

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.

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The bottom line is we have been facing a big affordability issue here in our little corner of the Los Angeles real estate market. And it has gone viral state-wide. The average change in California’s year-over-year number of sales has decreased 5.5%. And the average sales price has increased 5.5%. Statewide!

Many of you readers might be muttering “I don’t really care about state-wide, I want to know about here, in good old NELA!" (That’s zip codes 90041, 90042, 90065.)

So here you go, Dear Reader: These are year-over-year, September to September 2017 to 2018 percentages for NELA and they are startling. Number of active listings is a whopping 56.7% more in 2018, while the number of sold is down 13.6% and the number pending is down 5%. Here is the interesting news—the average asking price is 10.2% higher in 2018 and the average sales price is 18.5% higher. So fewer homes are selling, but they sell for more.

What does this mean to you? It seems like this is an affordability issue, but with a special twist. Especially with the uptick in mortgage interest rates on top of still rising prices, who can afford to pay an average sales price of $972,000? And in Eagle Rock alone (90041 zip code) the average sales price was $1,133,000 in September 2018! Average! So what’s the twist? The prices are continuing to rise, that’s what. Ordinarily, too-high prices start coming down when the inventory increases and number of sales drop.

It seems like many Buyers (or think they wanna be buyers) want to just have a crash take us back to 2009 bottom of the Great Recession prices and stay there long enough for them to close escrow on their dream home at a bargain price 40-to-60% below today’s prices. And then spring back to today’s crazy high prices so they can feel like they got the deal they missed back in 2009-2012. But their dream homes wouldn't come on the market in such a case because their owners aren't going to lose all the equity they’ve gained in the last few years. Why not? Because they are not in distress! Homeowners will just sit tight and wait it out because they don’t have crazy loans that are going to adjust to an impossible payment like they did in 2008. And those homes that sold in 2009 were not your dream homes either. People who own dream homes don’t generally have to put them on the market at the bottom of a sales cycle. No one does that unless they have no other alternative.

So what about the increasing inventory? A lot of homeowners are still trying to cash in on the high prices and they are comparing their homes with cream of the crop “done” homes or super well-located homes with a lot of potential. But times have changed, folks—you can’t put a cluttered, dirty home on the market with a few bad cell phone photographs and expect to sell for a top price. You should expect to put in a lot of effort and possibly money to present your home in its best light, hire the best experienced Realtor you can find and do what they say. This thought that all Realtors are alike and do the same thing so you just need to hire the cheapest one and he will sell your house for a lot of money is as mistaken as thinking the diamond earrings you buy at the big box discount store are just like the ones you could buy at Tiffany’s for five times as much. Anyway, those sellers are the ones driving up the inventory numbers and when they expire, the numbers will go back down and only a few buyers will have the money to buy the good homes that are left. We just put two properties into escrow for over $200,000 above their list prices because they are special, well-prepared and well-marketed homes.

It’s not a logical situation, potential buyers aren’t squeezed out of this market because interest rates have ticked up, they are squeezed out by not being able buy the home of their choice at the price they can or want to pay and they can’t or won’t find an acceptable alternative. The only houses that sell quickly in a changing market like this one are super great prepared homes or super well-priced ones, just like always.

The community of Eagle Rock is a special one. Let's do all we can to keep it that way!

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.

Whether for homebuyers or investors, getting a great deal on a home in Eagle Rock is all about good timing.

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!

Redfin, a popular home search engine, recently surveyed which neighborhoods or cities will be the most up-and-coming in 2013. To come up with the top neighborhoods in each market, they evaluated how each market was trending at the end of 2012 in four categories: on-market listings, sales volume, median price per square foot, and list price to sales price ratio. The areas with the most consistent trends in each category were labeled the “hottest in 2013.”

Well, what do you know? Highland Park, CA and Eagle Rock, CA are in the top 5 hottest neighborhoods, with Glassell Park, CA not too far behind! Of course WE know these are fantastic neighborhoods, but it’s always great to see recognition on a wider level. With great schools, or schools rapidly improving, lots of new businesses moving in and re-energizing the area, and convenient commutes, our neighborhoods are providing great communities for new buyers to settle down in.

Why did three of Northeast LA’s great ‘hoods get picked? According to Redfin, “The hottest neighborhoods are all seeing shrinking selection, increasing sales, and increasing prices—often at rates far above the metro areas that contain them.

Year-over-year trend in listings, sales, and median price per square foot as of December 2012

In our own experience, we are seeing multiple offers on most of our listings, often within a few days of bringing a home on the market. Most recently, our listing at 217 Newland Street in Highland Park received 13 offers within 6 days of being on the Multiple Listing Service, going into escrow with a sales price much higher than the list price of $299,000.

What’s causing this flurry of activity? Incredibly low inventory (Highland Park has been averaging 38 single family homes for sale, compared with 85 at the beginning of 2012), interest rates continuing to be at record lows, and an incredible amount of well-qualified buyers in the marketplace.

If you have been thinking of making a move, this is the best time in the Northeast Los Angeles real estate market last five years. We have seen sellers be pleasantly surprised at what their homes are selling for.

Ever wanted to own your very own restaurant in Eagle Rock? Well, now's your chance!

Vegetarian restaurant Fatty's is up for sale for $2.4 million, which includes the business (with beer and wine license), the 3,000 sq. ft. restaurant space plus a 2,000 sq. ft. art studio. The building is located on a 6,229 sq. ft. lot in a prime Eagle Rock location, and has two dedicated parking places and plenty of street parking. There is also a patio and garden area in the back.



Interested? Give us a call at 323.243.1234.

		Center for the Arts Eagle Rock presents Ponce De Leon + A Balloon Drop & Pop Happening with Miggie Wong Saturday, March 3, 2012 2:00-4:00pm (doors open at 1:30pm) This is a FREE all ages event! Center for the Arts Eagle Rock 2225 Colorado Blvd. Los Angeles, CA 90041 Ponce De Leon: Made Up Songs From a Fake America High concept electro-punk band Ponce de Leon brings its baroque and bizarre music performance to Center for the Arts Eagle Rock with "Made Up Songs From A Fake America"- a selection of songs from a decade of taking strident liberties with the history of America. Balloon Drop & Pop Happening with Miggie Wong A created situation experiencing a collective silence during the drop and the collective explosion during the popping balloons. This project is supported by a grant from the James Irvine Foundation. MORE INFO

Today we went to see a charming brick apartment building located at 5119 Eagle Rock Boulevard and spied some fantastic views from the roof.  The 1923-built apartment building is for sale for $995,000, and has six studio apartments upstairs and five commercial units on street level.  The building has been refurbished by the current owner, and even has a back yard for tenants to use.  Want to see this great opportunity?  Call us at 323.243.1234 to schedule an appointment.

 

This is great news for the community!  Eagle Rock High School is the first school in LAUSD to be authorized as an International Baccalaureate World School.

From Denise Campos, Director of Community Affairs for LAUSD Board Member Tamar Galatzan:

Los Angeles-Eagle Rock High School, the only traditional campus in the Los Angeles Unified School District (LAUSD) with a grades 7-12 configuration, is now the first school ever in the District to be authorized as an International Baccalaureate (IB) World School. As such, the school will implement a fully recognized IB Middle Years Programme for students in 7th, 8th, 9th and 10th grades beginning this fall.

"Your hard work, dedication, and an ongoing mission of excellence have gained Eagle Rock High School this merit," LAUSD Superintendent John Deasy said. "You are truly a role model for this district."

"This is an incredibly historic moment for the students, families and greater community of Los Angeles," added Judy Elliott, Chief Academic Officer for the LAUSD. "After three years of hard work and dedication, Eagle Rock, under the leadership of Principal Salvador Velasco, has been awarded this international  recognition of excellence. This has truly been a school-wide and community effort."

An IB education occurs at three levels-the primary, middle years and diploma (high school) programs. Each offers a rigorous curriculum that provides an education with a global perspective.

IB students are encouraged to develop specific character and learning traits-to be thinkers, inquirers and communicators who are principled, open-minded, reflective, balanced, knowledgeable, and caring risk-takers. The IB designation provides a framework of academic challenge that encourages students to embrace and understand the connections between traditional subjects and the real world.

In April, a team of evaluators from IB visited Eagle Rock High School and shortly thereafter, the IB America headquarters notified Principal Velasco that the school had exceeded the requirement and would be authorized as an IB school. It was the culmination of more than three years of Eagle Rock High School's faculty, staff, administration, students and families preparing to provide the IB Middle Years Programme.

"Our school community made a determination that Eagle Rock High School would build an environment of success where every student has the opportunity, motivation and tools to achieve," Velasco said. "The International Baccalaureate Middle Years Programme is the foundation we chose to build on to further grow and develop our educational culture of excellence. We are very proud of the teachers, families, faculty, administrators, and especially our students, who embraced IB and worked so hard to achieve our authorization."

Eagle Rock High School is located in northeast Los Angeles, between the cities of Pasadena and Glendale. As the only traditional LAUSD school with a 7-12 grades configuration, it houses both a comprehensive junior and senior high school, as well as a magnet program serving gifted, high-ability and highly-gifted students in grades 7-10. In addition, Eagle Rock High School will offer the fully authorized IB Middle Years Programme to all students in grades 7-10 in the 2011-12 school year.

To transform Eagle Rock High School into an IB school prepared and qualified to undertake the Middle Years Programme, teachers and administrators underwent more than two years of specialized training, most of it funded by the school itself. In addition, the school adjusted its bell schedule to allow for longer instructional periods and re-emphasized areas of the curriculum, such as foreign language and the arts, to align the course work with the expectations of the IB. This was achieved while maintaining strong English, math, science and social studies programs. Students and families were included throughout the process.

The program consists of eight subject groups integrated through five areas of interaction that provide a framework for learning across subjects. IB students are required to study their first language, a second language, humanities, sciences, mathematics, arts, physical education and technology. In the final year of the Middle Years Programme, students engage in a personal project that allows them to demonstrate the knowledge and skills they have developed throughout the program.

"Eagle Rock faculty, staff and administration have been working toward certification for the past three years, undergoing rigorous training, and aligning the school's curriculum, schedule and mission to meet the IB's exacting standards," said Laurie Bollman-Little, the IB coordinator for Eagle Rock High School. "Our school got behind the Middle Years Programme because it will provide the foundation and methodology for our students to succeed in middle school, in high school, in college and beyond."

Looking ahead, Principal Velasco said the school's next goal is to be authorized to offer the IB Diploma Programme (high school). "At Eagle Rock, we see the IB as a blueprint we can follow so that all our students achieve at their highest levels."

For more information on Eagle Rock High School, visit the school's website.

Here are the single family home that closed escrow in Eagle Rock 90041 this November.  We have two exciting home sales to report: 1205 Eagle Vista (a beautifully remodeled midcentury which sold for $1,155,000 and is now the highest home sale in Eagle Rock since 2007!), and 1260 Hill Drive (another great midcentury which sold for $725,000 and has a price per square foot of $489.20 - we're working on getting Eagle Rock property values back up!).

Check out what sold last month in Highland Park and Glassell Park/Mount Washington.

You can see what sold in Eagle Rock in October here.

This Saturday, December 3, 1-5pm the Solheim Lutheran Home is hosting their Second Annual "Spirit of Giving" Christmas Boutique!

• Holiday shopping at our vendor tables


• Christmas caroling


• Christmas sweets and treats


• Hot chocolate, cider and coffee


• Silent auction


• Plus, Santa Claus will be coming to Soheim 2-4pm for pictures!

Get in the holiday spirit by attending the "Spirit of Giving" Christmas Boutique while benefiting a great cause, the Solheim Lutheran Home.  Solheim is a non-profit continuing care retirement community that helps provide an abundant life for older adults.

You can also sign up as a vendor to sell your own merchandise  - go to www.SolheimLutheran.org and click on the link to download the vendor information and application.

For more information call Tina Antypas at 323.257.7518

The Festival of Trees, presented by the Women's Twentieth Century Club of Eagle Rock, is this Saturday, December 3, 2011 at 7:00 p.m.  Enjoy hors d’oeuvres and a no-host bar while viewing and bidding on more than 20 Holiday trees, each beautifully decorated by a community business or organization (including one decorated by us!).  There will also be a Santa’s Workshop Drawing for a bonanza of gifts valued at more then $2,000 (tickets are $5 each).  This event is always a lot of fun, and we hope to see you there!

Event will be at the Women's 20th Century Club house (5105 Hermosa Avenue, Eagle Rock)
Cocktail Attire • No-Host Bar
$30.00 Advance Ticket Sales Only

For ticket information please contact: Holly Nieto 323-259-2598 or This email address is being protected from spambots. You need JavaScript enabled to view it.

WTCC, ER is a 501(c)3 non-profit organization. Donations are tax deductible as allowed.

This Wednesday, November 30, from 4-8 pm, support the Eagle Rock High School Booster Club by eating at Panda Express, (located at 4947 Eagle Rock Blvd.).   Present a flyer when ordering and your ERHS Booster Club will get 20% of the purchase.  Click here to download a flyer, or you can get one at the ERHS Parent Center.

Facebook- Now you can get the latest news and updates on the Boosters via Facebook.  "Like" your ERHS Booster Club and get all the information directly to your Facebook feed.

Ways you can help:

Donate Equipment for Concessions - The booster club is still looking for donated items to equip their concession stand.  In dire need of a small portable electric cooking stove, ice chest, large coffee maker, pots and pans, igloos, etc. Concessions are a great amenity for our visitors and fans so we welcome all donations.<

Get Involved - The new ERHS Booster Club needs you.  They have business outreach, concessions, membership drives, special events, and many more activities in need of volunteers.  The booster club is raising money to support our teams and our school, so call or email Patricia Perez (626.390.6444 or This email address is being protected from spambots. You need JavaScript enabled to view it.) today to discuss your availability.

Join Us – If you are not already a member, consider joining today.  Patricia can email you an application form or you can pick one up at the ERHS Parent Center next time you’re on campus.  It costs only $10 per person to join this growing community of parents, alumni, administrators, teachers, and community members dedicated to supporting our school.

 

Just sold! 5126 Ellenwood Drive just closed escrow - proof that short sales are indeed do-able!  We brought this classic Craftsman bungalow on the market on March 28 of this year, accepted on offer on April 18, and closed escrow on August 29. Just four months to get short sale approval from Bank of America, navigate through buyers' inspections, and close escrow.

 

Here are the details:

Listed on March 28, 2011
Closed on August 29, 2011 - for a final sales price of $584,000!
3 bedrooms, 2 full baths
1,612 sq. ft. house
9,150 sq. ft. lot, with pool

 

 

 

 

 

Here’s my take on this report:

Median price means half the properties sold for more than this number and half sold for less than this number. Is it meaningful? Figure this out (all concerning the month of July only):

3 of the sales this year were for more than the highest sale last year

But what is truly noteworthy about this year over last year is:

The number of active listings is over 40% fewer
The number of properties pending sale is 150% more
The percent of properties under contract compared to what is on the market is over 330% more!

The market is much more active right now. Why? We can say it’s low interest rates and that there is a perception that we are truly at the bottom, but we had the same factors going last year. The economic news isn’t much better, in fact, a number of homeowners have decided to sell because the future holds no promise that the picture will improve in the next couple of years. I think the true meaning is that buyers are buying homes to live in because everyone has to live somewhere and many people do not want to rent, and sellers can sell in this market if their homes are priced right.

Here is a table that illustrates the number of sales and percentage of distress sales over the last 3 years in Eagle Rock 90041. The question is, what does it mean? There’s a flipflop from a greater number of foreclosures in 2009 to more shortsales in 2011. Distress sales as a whole dropped in 2010 and have increased again so far in 2011.

My guess, and it’s educated but still a guess, is that the lenders were very resistant to doing shortsales early on and have finally bowed to the inevitable. As more distressed homeowners are able to sell short, there are fewer foreclosures. The more positive numbers in 2010 I attribute to the peak of the “double dip.” Or you might look at the whole thing as our thudding along the bottom.

There is a lot of talk about “Shadow Inventory,” which is distressed properties that might come on the market. This includes properties that have notices of default filed (the homeowner has stopped making mortgage payments), have notices of trustee sale filed (they haven’t brought the loan payments current and are scheduled to go to foreclosure sale), REO or bank-owned or 3rd party owned (sold at trustee sale). It also includes properties that are “upside-down” which means the property is worth less than what is owed. This can be a huge number and there is no way to track what it is. The fear of “Shadow Inventory” is what if a lot of these distress sales come on the market at once? What will that do to the rest of the market

Personally, I think that is a big “if.” If it hasn’t happened yet, why would it happen now? One reason could be if we had a major economic setback. But believe it or not, we have actually been out of the recession and experiencing a slow (excruciatingly slow) recovery for the last 2 years, according to the National Bureau of Economic Research. Another reason could be a drastic change in mortgage lending in terms of either interest rates or underwriting guidelines.

Whew, this sale has been a long time coming - and finally it's here! 5312 Sierra Villa Drive closed escrow yesterday, June 16, for $462,500.

Built in 1922, this 2 bedroom, 1.5 bath Craftsman cottage has lots of windows, re-finished hardwood floors, spacious rooms, and updated kitchen and bath.  Further upgrades include copper plumbing and fresh paint inside and out.  The finished attic is full-length with built-in dresser drawers, providing lots of additional storage.  Separate one bedroom guest house has been completely renovated from floor up - the seller stripped the structure down and has replaced the insulation, put in new floors, new windows, new doors, new pipes, new wiring, new everything!  He has also changed the layout to have a more open living and kitchen space and add closet space to the .  Landscaping includes several fruit trees - lemon, lime, persimmon, pomegranate, fig and avocado.