Prices Surpass Housing Bubble Peak in some Los Angeles ZIP Codes
Posted by admin at March 17th, 2014
Certain Los Angeles Zip Codes are experiencing housing prices that are exceeding the current housing bubble landscape. These areas are now more expensive than ever, even more so than the highs experienced just before the recession. The low supply of lower-priced housing is contributing to these record highs.
This high-price trend will no bode well for Los Angeles, as buyers looking in certain areas will get “priced out” of where they would like to settle. This will lead these buyers to look elsewhere, often adjacent neighborhoods, which could increase demand and prices significantly in those areas.
The San Gabriel Valley is experiencing record highs influenced by an influx of overseas buyers that can supply all-cash offers. These families and investors are typically from China and are either looking to settle in Southern California long-term or purchase investment real estate. Irvine is another continually emerging affluent area that is asking top dollar for homes. The Westside is the other main culprit with properties in the region asking for millions. Westside properties are attractive to both Asian immigrants and those in the tech industry with the emergence of boutique niche stores, trendy cafes, and gourmet fast-fresh dining options. These areas benefit from strong public schools and proximity to desirable job centers in Los Angeles and Southern California at large. Venice, for example, witnessed a median home price for the fourth quarter at $1.34 million – a figure that is 3 percent higher than the bubble and 84.4 percent higher than the bottom during the financial crisis.