Single-family home price increases in Los Angeles have shown no sign of slowing as we enter the third month of 2016. The main cause: our very constrained and limited supply. In general it is considered healthy for a real estate market to have a 6-month supply of inventory (houses for sale) on hand. At the moment in L.A., that level has dropped to a 4.8-month supply, which definitely puts an upward-pressure on home prices. People are willing to bid and pay top dollar, especially if your home has been remodeled and preferably staged to show well. Green and smart home features such as low-water-consuming landscaping, Nest thermostats, Launchpad or other smart devices to control your alarm system, your lights, your temperature, your sprinklers, your washer & dryer and more, are also growing more and more popular.
In the westside home sales market, houses that have even a modicum of good taste in design, sell quickly. Frankly, I am seeing total tear-downs (such as the one in the photo above) selling for over-asking price by land-starved developers looking for projects in high-demand neighborhoods. This little house on Harrison Avenue is listed at $1,180,000 for a 1/1 in Venice at only 647 SF; which averages to a cost of $1769.00 per square foot…
Many of our local aging baby boomer homeowners don’t want to sell their current homes. They are working longer, staying more physically and mentally active, retiring later, and loving living here in L.A. due to the depth and breadth of opportunities, communal and social experiences. As younger people come into the housing market, they are competing for very little inventory. The California economy and its real estate are still considered highly appealing to foreign investors, too, including money from mainland China, the Middle East and Europeans. Chinese investors in particular are desperately looking for ways to move cash out of China into U.S. dollars, before the Chinese debt crisis hits catastrophic proportions.
If you are interested in determining your home value, feel free to contact me for a courtesy home evaluation.