Water Water Everywhere…

Yesterday, Doc on the ‘ROQ reported the news that the average home price in the state of California is now $475,000 (up 25% in the last month). In Los Angeles, he continued, it’s now $400,000. Hmm..that’s not so bad. But here’s my question: WHERE?! We’ve been looking for a house for a little while, and the only place we’ve seen with houses in that range is Highland Park. I already know if you want to move to Diamond Bar or Covina you can probably find something liveable for under $400K. But what I want to know is, for those of us that need to stay central, what are the hidden gems? West Adams? Beverlywood? Where can buyers still find an (relatively) affordable house that’s not in the ghetto?

P.S.: I searched like mad for the source of the numbers that Doc reported, but couldn’t find anything. If you know, hit me up.

17 Replies to “Water Water Everywhere…”

  1. I posted this yesterday which has the info:

    “The bloom will be off the rose in about a year,” Norris said. He is writing a report titled “The California Countdown” that will predict a 1,000 percent increase in foreclosures in Southern California between 2005 and 2010, duplicating the spike in foreclosures during the real-estate recessions of the early ’80s and ’90s.
    “Anyone who pays full price (for a house) in the next 12 months probably will have no equity sometime in the next six years,” Norr”
    “Home affordability has declined sharply. The California Association of Realtors reports that as of April, the latest month for which there is data, only 20 percent of California households could afford the state’s median-priced existing home at $453,590.”

    But not in a positive way. I was looking awhile back and the cheapest place I could find in the area was 500,000 for a fixer upper that said point blank in the ad that the plumbing was not up to code.

    Scared me right out of the market.

    Direct link here:

    http://www.builderonline.com/industry-news.asp?channelID=NaN&sectionID=26&articleID=61590

  2. I’m a real estate reporter here in SoCal, and the market is in fact starting to soften. There’s more resale product on the market, but it’s still at high prices. However, people aren’t necessarily biting at those prices, so sellers are having to reduce. Give it three months and you’ll start to see some significant changes.

    But as far as hidden gems in LA county, you’re out of luck. There aren’t any. Today’s sellers are too crafty, and know what they have. If you want something less than 400k you’re looking at Santa Clarita and the rest of the Antelope Valley.

    Sorry.

  3. I’m shopping for a house in OC right now, where the median home price is $540,000. At my budget of $300,000, that leaves me with condos in poor neighborhoods…and I’m not really a poor guy. This is a bad market for home buying.

  4. I don’t know, yeah prices are ridiculously high (and we’re all disgusted) but if you just look at the projected population growth rate for Los Angeles simple supply and demand rules state costs are gonna go up. Even if by far the majority of the new pop can’t afford houses it still means more people per square mile and land values increasing.

  5. >Try the “ghetto”; it might be GOOD for You!!!

    How do you know I don’t live “there” now, or didn’t live “there” before. Be careful before you start making assumptions.

  6. >But as far as hidden gems in LA county, you’re out of luck.

    I can buy that, but there’s still got to be someplace that’s a better deal than others, doesn’t there?

  7. Well, according to the reports around these average LA home prices, the annual income needed to purchase such a home would be $105,000. That is so far and away above the average income in California. Possibly it is time to recognize that there are many other areas in the US that are forming into interesting communities that are far more affordable. As well, these $450,000 homes we speak of would be worth $150,000 if lifted up and transported elsewhere.

  8. I would NEVER buy a home in LA. I’ve been all around this country and there are places you can buy half a county for $400k. Even if I did buy a house in SoCal it would have a goddamn ocean view! I DO live in the ghetto now and it sucks balls and I need the ocean to cleanse these few years living with the shit in my town. At least the bars are close and I can get good *ahem* meds if I need em.

  9. >$450,000 could buy you 300 acres in the Northeast Kingdom
    >of Vermont, which is beautiful country.

    I’m sure it is, but it’s also in Vermont. Some of us need or want to live in LA, though. I, for one, don’t want to keep paying off somebody else’s mortgage for them just because it’s cheaper for me to buy in another state.

  10. Two words: Eagle Rock. Stay below (south of) Colorado, be patient, keep your eyes open and you should be able to find a decent older house in the low $400s.

    Even better, wait a little longer until the market softens. ER is typically undervalued and overlooked.

  11. Four words: Casa Bianca Pizza Pie! Located in Eagle Rock on Colorado Blvd. has the BEST pizza in the entire Greater Los Angeles Area. Now, having said that, if you are on a low carb and/or low fat diet, this could be reason to avoid purchasing a home in Eagle Rock.

  12. What is wrong with covina I lived there for 30 yrs. It is very Centrally located between LA and Las Vegas.

  13. Hey what about Tujunga or thereabouts? The cost of rent up there is cheaper anyway, don’t know about buying property… but it sure is pretty.

  14. Feh. Just live in the “ghetto”. Honestly, there are decent areas all over LA that get called “ghetto”.

    However, at this time, I think a lot of buyers are just using the bank as a landlord, and they will default on their loans.

  15. Some people have to live in LA – its silly to even think about buying in Vermont if you work in, for example, television. My husband and I would like to buy in the next year, but are trying to figure out if we should buy sooner rather than later with the way prices keep skyrocketing. Seems as many people are saying prices will drop as are saying they will keep rising. The price is a reach for us, and we have high salaries. I just don’t know how this can keep climbing without a significant jump in income levels to go along with it.

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