Why West Los Angeles Home Prices Are Peaking
In some Southern California zip codes, West Los Angeles home prices have passed their peak. According to a recent article in the Los Angeles Times, “In some corners of the Southland, it’s as if the housing crash never happened. West Los Angeles Home prices in a dozen ZIP Codes have passed their peaks during the housing bubble, according to research firm DataQuick. Most are either in the San Gabriel Valley, a magnet for buyers from Asia, or on the Westside, where the technology industry is booming.”
However, this does not run true across all California regions as most home prices remain well below their former highs. According to the article though this could predict, “a spillover effect. As buyers get priced out of prime areas, they may look to adjacent neighborhoods — juicing demand there and pushing up prices.”
Other regional markets are not seeing this trend. With higher listing prices and mortgage rates, an increased demand and a shortage of properties, many potential buyers have been discouraged from starting the process.
But this isn’t the case in these 12 California zip codes. The article continues to say, “Of the 12 ZIP Codes where the non-inflation-adjusted median price has passed its bubble-era peak, six are in the San Gabriel Valley and one is in affluent Irvine. All are hubs for buyers from China looking to move to the U.S. or invest here. Another is ritzy Los Feliz, where homes near Griffith Observatory command top dollar. Four other areas are on Los Angeles’ Westside, in Venice, Palms, Mar Vista and Culver City. Buyers from the area’s burgeoning technology industry — known as Silicon Beach — have fueled price increases, along with broader gentrification.”
Why have West Los Angeles home prices increased so dramatically? Here are a few possible reasons:
[list_item]”The neighborhoods are near job centers, the urban core and, often, good public schools.[/list_item]
[list_item]The areas have also recovered faster because prices there simply didn’t fall as steeply as in other areas during the crash. [/list_item]
[list_item]And each has unique factors driving the current price growth.”[/list_item]
One such factor can be seen in the San Gabriel Valley. “In the San Gabriel Valley, an influx of Chinese buyers has shifted the market into overdrive, real estate agents say. Many Chinese see U.S. real estate as a solid investment, cheaper and more stable than in China. Others buy homes with their children in mind, seeking cleaner air and solid schools. An epicenter for previous waves of Asian immigration, the valley is a natural landing place.”
Whereas on the Westside, “the arrival of hip cafes and other amenities catering to tech industry workers has, in turn, attracted others to these areas.”
With market prices changing every day, it’s important to consult the expertise of a local and experienced real estate agent that can help guide you through the process and ensure you’re making educated and informed decisions.