A friendlier market for buyers arrives in most Westside/South Bay markets
A report from Trulia shows homes being listed with the highest number of price reductions since 2011. The Los Angeles market is seeing 12.1% increase in price reductions year over year in the month of August. Price reductions are a key indicator that the market is shifting.
We have been in a seller friendly market for over eight years. Housing affordability in Los Angeles is at a 10 year low and combined with rising interest rates (mortgage rates up over 20% over the past year), the market is shifting. Though still low from a historical perspective, housing inventory is increasing and providing buyers more options and less of a frenzied atmosphere to purchase a house.
Keep in mind two very important factors- 1- Entry level price points in each micro market are still in the seller’s favor, especially when the price point is between $900K-$1.3M. 2- In the long run (10+ years), Westside/South Bay real estate has proven to be an “A” level investment and still relatively cheap compared to other large international cities.
Here is a link to a recent LA Times article: Is winter coming for Southern California’s housing market?
By John SkinnerDownsizing homes can save Californians big bucks
Empty-nesters take notice, a PropertyShark study published last month shows how much homeowners in 20 major California markets can save by buying a smaller home.
For example, the study shows in Los Angeles downsizing from a five-bedroom to a three-bedroom home can save up to $750,000. For an overview of how this strategy may apply click here.
In the late 1980’s, California passed two propositions (60 and 90) that give homeowners, older than 55, a property tax break when they sell their primary residence. It requires them to buy another residence that costs the same or less. The intent was to help empty nesters downsize without getting nailed by the higher property taxes on their new home.
Prop. 60 allows homeowners who are older than 55 or permanently disabled to sell their primary residence and use the established assessed value for their replacement home of equal or lesser value restricted to within the same county. Prop 90 expands that to allow the acceptance of transfers to different counties, provided the county allows transfers. For more information, click here
New Listing- Heart of Brentwood Village – 11687 Montana Ave.# 209 – 3+3, 1,848 Sq. Ft. $1.049M – Open Sunday 2-5 / Tuesday 11-2 | Back on Market- 12615 Westminster $1.599M Open Sunday 2-5
Rare opportunity to purchase an updated and incredibly spacious 1,848 square foot, 3 Bed+3 Bath unit in the heart of Brentwood Village. This stunning condo is flooded with natural light and features hardwood floors in the entry, kitchen and expansive living room which includes a fireplace, recessed lighting and sun room. The remodeled kitchen has all new cabinetry, quartz countertops and new stainless steel appliances while opening to the living and dining areas, which is ideal for entertaining. The oversized master suite with a fireplace, private balcony, enormous walk-in closet and remodeled bathroom with soaking tub, shower and dual sink vanity creates the perfect retreat. Excellent closet/storage space throughout. Secured access building with side by side parking, pool and spa. All while being a short distance from great restaurants, shops, Whole Foods, and easy access to the Westside and UCLA. HOA dues include Earthquake insurance. Community laundry access within ten feet of front door. Property Web-Site–
—
Back on Market (was in escrow over asking)- Mar Vista- 12615 Westminster Avenue- 3+2/Apprx-1,243 sq. ft./6,750 Lot- List Price $1.599M | Open Sunday 2-5
Situated on a quiet tree-lined street in a highly sought after Mar Vista location, this charming traditional home with great curb appeal sits on an expansive 6,731 sq. ft. lot. The home has been in the same family for over 40+ years and is an entertainer’s paradise with a chef’s kitchen featuring Viking range w/ grill that opens into the living room which flows directly into the indoor/outdoor living concept and expansive backyard with mature landscaping. The large master bedroom with fireplace and custom designed closet captures an abundance of natural light and opens to the backyard via double French doors. A great opportunity to own in an extremely popular neighborhood where you can add-on to the current home or develop a wonderful two-story home with potential view opportunity from the second floor (buyer to verify). Property Web-Site
Mortgage Rates reach seven year highs – 20% increase over last year
After weeks of climbing, mortgage rates have now risen to their highest level in seven years According to the Primary Mortgage Market survey, the 30-year fixed-rate mortgage averaged 4.9% for the week ending Oct. 11, 2018, increasing from 4.71% last week, and significantly higher than last year’s rate of 3.91%.
An initial mortgage payment on a $1M loan at last year’s rate of 3.91% was 4,721.41. The same initial payment at 4.9% is 5,307.21, an increase of over 20% at $600.00 per month or $7,200.00 over the course of a year.
The 15-year FRM averaged 4.29% this week, moving forward from last week’s 4.15%. This time last year, the 15-year FRM was 3.21%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage moved to 4.07% this week, moderately increasing from 4.01% last week. This is substantially higher than this time last year when it averaged 3.16%.
Sources- Housing Wire
Los Angeles Residents- Get to the polls- Vote NO on Proposition 10
What homeowners and investors need to know about Prop 10-
Prop 10: Repeals Costa Hawkins Rental Housing Act, which limits municipal rent-control ordinances. California suffers from a significant shortage of housing. In studies conducted by UC Berkeley, rental control has been shown to provide disincentives for new housing developments and also causes more units to become owner occupied which, in turn, reduces the number of units available for renters.
Prop 10 would make each city in California go through the process of passing new legislation before the repeal would have any effect.
California’s affordability crisis is a direct result of undersupply of housing. Addressing the underlying reasons for the high cost of housing would better serve Californians.
For a very thorough economic analysis on why this could possibly be the worst approach to California’s housing crisis, CLICK HERE.
Purple Line to extend to UCLA by 2028 – Long-term positive for real estate
The Purple Line which currently only reaches Koreatown from Union Station, is being extended along Wilshire Blvd. The extension will bring the rail line 9 miles further west to the border of Westwood and Brentwood (see map below). The construction currently underway includes plans for stations at LA Brea Ave., Fairfax Ave., La Cienega Blvd. and Rodeo Dr. before shifting south towards Constellation Blvd. and Avenue of the Stars in Century City. It will then move north for the final two stops at UCLA and the Veterans Affairs Hospital.
The project, which began in 2014, is expected to be partially open to riders by 2023. With final sections opened before the Olympics in 2028. When complete the ride form the VA Hospital to Union Station will take 28 minutes.
Source- LACURBED- full article–
Also, here is a link to an article about Beverly Hills High students protesting since the subway will travel underneath the school.
