LA Digs - Northeast LA Real Estate Blog

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.

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.

This home in Eagle Rock is located at 5333 Waldo Place.

Sold for $949,000
2 bedrooms, 2 baths
1,786 sq. ft. on a 7,510 sq. ft. lot
Built in 1960

If you are thinking of making a move, give us a call to discuss a strategy to achieve your goals in today's real estate market.

5224 La Roda is a classic Eagle Rock home - Craftsman style, located north of Colorado Boulevard on a beautiful tree-lined street, with a spacious flat back yard to enjoy. It has great original detail, such as hardwood floors, built-in buffet and desk, un-painted wood trim. It also was updated in the late 1970s, which has its positives and negatives. Some people couldn't see past the popcorn ceilings, or style of the kitchen and baths. However, some buyers saw this house for it truly is - an amazing location, a lot of space, character, a great forever home. Not many homes come up for sale north of Colorado Boulevard to take advantage of!

We brought this home on the market in December with an asking price of $699,000 and held several open houses. After a couple of weeks we received one offer, then a couple of days later another offer, and another. Another case of buyers waiting, waiting, waiting and then jumping in all at once! The demand in the Eagle Rock real estate market is almost unavoidable these days. With multiple offers, we negotiated the final sales price to $725,000.

Property Details:
Listed for $699,000
Sold for $725,000
3 bedrooms, 2 baths
2,025 sq. ft. on an 8,171 sq. ft. lot
Built in 1923

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.

That is what Sellers assume, but today’s California Association of Realtors Residential Purchase Agreement (RPA) is a little more complex. If the Buyer and Seller have initialed the Liquidated Damages clause, the Buyer has removed the Inspection Contingency, and the Buyer cancels for no reason, then yes, the Seller may keep up to the amount of the Earnest Money Deposit (EMD). However, it is extremely rare that a Buyer would actually forfeit their deposit with all the loopholes available today.

Bottom line, in a real estate transaction today, there are no guarantees that the buyer will close the escrow until you receive the call that the recording is confirmed. As Bette Davis said in All About Eve, “Fasten your seat belts, it’s going to be a bumpy night.”

Now this is an interesting story to tell. We brought 5136 La Roda on the market back in July with an asking price of $699,900. We received one offer, which didn't come together. After a little while we reduced the price to $679,900. Still nothing. Then, in the beginning of September, we finally received an offer (under the new asking price). We began the negotiation process with this offer. After a few days of going back and forth we received another offer. And then two more offers. Suddenly we had a multiple offer situation to negotiate - after being on the market for over a month! We closed escrow last week with a final sales price of $715,000 - over the original listing price AND all cash with a 5 day escrow. Needless to say, this is a very interesting real estate market we have going in Eagle Rock right now!

Remember our little fixer listing on Hartwick Street that we sold last year?

We listed it for $299,000 and got a lot of interest (and offers) for this cute cottage on a street north of Colorado Blvd. We sold it to an investor who has done an incredible job of fixing it up and adding on to it:

When we sold it, 5220 Hartwick was a three bedroom, one bath cottage with an odd floor plan. Now the home is a practically brand-new bungalow with three bedrooms, two baths, plus a den/family room. The floor plan has been opened up and flows much better than before. And of course, every detail has been updated to look modern:

Quite the transformation, eh? All systems are new, including roof, central heating and air, plumbing, electrical, waste lines, gutters and water heater. The foundation has been retrofitted. The size of the home has gone from 1,200sq. ft. to 1,615 sq. ft. The home is currently listed for $699,000.

If you would like to see the home, contact us at 323.243.1234. We'd be happy to help you make it your own!

Listing Provided Courtesy of: Dana Frank, Rodeo Realty

The first quarter issue of our newsletter is available online now!  Click here to get the latest news on Northeast LA real estate, including:

• The Big Seller Question: Why won't they just make an offer?


• Current state of the market


• Northeast LA real estate by the numbers


• Is cash always king?


• Shadow inventory: What the heck is it? Will it even affect our local market?

Click here to download a PDF copy.  If you would like to receive a hard copy via snail mail, email us your address - it's free!

Alright, Eagle Rock homeowners, we have proof that our real estate market is getting better. This is truly an amazing sale - and sets the new highest price per square foot for a three bedroom, two bath home in Eagle Rock since 2007! 2035 Ridgeview Avenue, located near Occidental College, features three bedrooms, two baths, completely upgraded and remodeled with style throughout:

We came on the market at $649,000 and received several offers. After a week we raised the price (causing many eyebrows in the community to do the same) to $724,900. Soon after that we opened escrow, with the requirement that there be no appraisal contingency because there were no comparable home sales like this home. No one thought it would appraise at the new asking price - little did they know what we were actually in escrow for!

This week we closed escrow and can finally reveal our sales price - $760,000! That is $562 per square foot (the average price per square foot for a three bedroom, 2 bath home in 2011 was $329). Not only that, but it did appraise for that amount. This shows what a great house with high quality finishes in a great Eagle Rock neighborhood can do.

The whole neighborhood will miss our sellers, but we are also gaining a fantastic new member of the community! And of course they may decide that Eagle Rock is the place to be (as we all know it is...) and work their magic on another home here.

We just closed escrow on this Spanish-style home at 5326 Loleta Avenue - and just in the nick of time! This home sale has been on the verge of going short sale and with the help of all involved we got it closed as a regular sale. 5326 Loleta features an open floor plan, hardwood floors, Mayan-style fireplace, updated kitchen, private master suite, and a great Eagle Rock location north of Colorado Blvd. Congratulations to our sellers, and we welcome the new buyers to the neighborhood!

Property details:
Listed (originally) for $649,000
Sold for $638,500
3 bedrooms, 2 baths
1,880 sq. ft. on a 6,000 sq. ft. lot
Built in 1925

We just closed escrow on this spacious mid-century traditional today! Originally listed for $599,000, we received multiple offers and reached a final sales price of $625,500. 5458 Mount Helena Avenue is located in a great Eagle Rock neighborhood north of Hill Drive. Features include a large formal living room, dining room/family room, ample closet space, two fireplaces, and a pool. Congratulations to the new owners!

Listed for $599,000
Sold for $625,500
3 bedrooms, 2 baths
2,030 sq. ft. on a 9,070 sq. ft. lot
Built in 1951

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.

Here are the closed sales during the month of October in Eagle Rock*:



Here's what you need to know about these numbers:

• October of 2010 there were 10 sales (compared with 15 October sales this year, an increase of 50%)


• The average sales price in October 2010 was $491,556 (compared with 386,537, a decrease of 21%)


• In October 2010, two of the sales were short sales, and one was an REO.  This year there were five distressed sales (1 short sale and 4 REOs).   That's actually roughly the same percentage - 30-33% of closed sales are distressed properties.

*Single-family home sales in the 90041 zip code only.