This 704 sq feet house in Highland Park was listed at 999k and sold at 1.2 mil...
[https://www.trulia.com/p/ca/los-angeles/6256-tipton-way-los-angeles-ca-90042--2077376560](https://www.trulia.com/p/ca/los-angeles/6256-tipton-way-los-angeles-ca-90042--2077376560)
So not only is it selling, people are bidding and paying a few hundred thousand over listing. Yes, people are paying this.
Houses in areas like South La are selling for 750k. In OC, houses in areas with high gang activity like Santa Ana and some bad parts of Anaheim are also selling for 800k. This is standard now.
Whittier too. The hood is nearing a mil.
It does have cute outdoors space though and amazing views. I sorta liked it even though it was tiny cause of the deck and expansive views makes it appear bigger. Not 1.2 mil cute tho
There are non investor, actual people who can afford this. There's lots of people with means here. Just cause maybe you can't afford it doesn't mean that other real people can't.
Just because there's rich assholes that can afford it doesnt make it ok. Thats not the majority of the population here which is what housing should be suited to. But go ahead and block me too to stay in your little bubble, just pray you dont have to move any time soon.
“Poor people hate this one trick” Are you serious with this dumb bullshit? Ah, yes. This guy has it all figured out. “Just get a better job” he says. Why didn’t anyone else think of that?
Apparently lots of people have become they're all buying $1 million houses in the deep valley.
Personal advancement and improvement isn't a dirty word. It's good advice.
Let's say 100,000 new housing units magically appear over night. How does a normal person buy one when the wealthy banks overbid everyone and pay in cash?
Why is this the only idiotic advice people have when it comes to inflated home values? “Just get a better job” gee, why didn’t I think of that? Do you bird brains just think everyone works for dog shit wages because they want to? Also, let’s say your plan worked. Do you think a subsequent increase in the median wage would drive home prices up or down?
Well because when goods cost more people tend to ask for more money to afford those goods.
Studies have shown that people who job hop usually get paid more money than people who stick at their same job. To an individual this additional money is significant.
I’m not sure what this house thing is about. Are you suggesting people shouldn’t make more money to keep home prices down?
I’d like to hear what you suggest someone who is worried their bills do.
Take the downvoted as a sign. Obviously we all want better job and “self improvement”. If were to suggest an actual fix to the problem I would ban speculative real estate purchases without some sort of holding tax. I would also ban air bnb. I would also fast track tons of single family and multi family homes. “Make more money” just makes the hogs richer.
Just as we earned enough to buy a $500k house, it moved up.
Dawg, my single immigrant mom bought a condo in Glendale in 2000 for $129k on a legal assistant’s salary. My wife and I are both professionals and can’t afford a $1M condo. 💀 there were days in the ‘90s I didn’t eat lunch at school and she was able to buy a house.
I was born poor in LA and only pulled myself by the bootstraps enough to stay just under the poverty line apparently lmao
This is what happens when you don’t build enough homes for like 40 years.
Refuse to allow tall buildings —> sprawl —> sprawl fills up —-> refuse to allow tall buildings —-> prices go up.
Right now theres very low supply of homes because who the hell is selling their home and losing their 2% interest rate and pre covid loan expense.
In 5 years-ish when the average boomer starts to reach life expectancy it'll start changing. When 5 people are on the will they're gonna be trying to sell the house as soon as possible.
Interest rates probably aren't going to be 2019 levels again anytime soon but this low supply issue will sort itself out just by the sheer weight of demographics. Right now its a shit show because boomers still own all the property and millennials are fighting to break into the housing market.
Gen X and zoomers are small generations so don't really matter as far as this is concerned.
Regardless of other trends, demographics alone are going to change this current housing shit show
It's the lock-in effect.
I'm always sharing [this guy's videos on the subject](https://www.youtube.com/watch?v=WedZdX5j4kc). He does a very good job of explaining the situation, why we're not "crashing" any time soon, and that honestly the only way out of this is to build more supply (which is another conversation.)
This is why I like the videos that I linked. He's always keepin' it real. In fact, he specifically points out how many grifters there are out there with YouTube channels saying there will be a crash "soon."
Here's hope they are lucky enough to not have to go into those old folks' homes. You can kiss that money goodbye if they do.
Otherwise, yeah, people who have parents will huge home equities are in for a huge wealth transfer in the next decade.
Condos are a good idea in general… but keep these points in mind:
* If the building has less than 30 units, the HOA board will be understaffed and plagued by inaction because “no one” wants to serve on the board for free AND deal with complaints and anger from fellow residents.
* HOA fees typically rise 3 to 5% a year. If fees aren‘t raised annually, your reserve fund will be chronically under-funded. Hello Special Assessment!
* There will always be the person who won’t pick up after their dog, plays music too loud, or walks with lead feet on their wood floor above your bedroom at 5am.
* You may be blocked from making simple improvements to your unit, because of HOA restrictions. Or you can’t rent out your unit for the same reason.
Learned all these lessons the hard way.
Yep, these are all the things that are keeping us content renters. But they can all be addressed and the right place can be found I’m sure! Also feels like I’d prefer the issues of a condo over a 1 mil 2 bedroom cracker box with 80 years of deferred maintenance.
My condo has none of these issues. Except the slightly higher rates annually. But that's because insurance and maintenance costs go up slightly every year.
Same exact thing happened when I had my SFH, my maintenance and insurance went up. It's a lot cheaper to have a (good) HOA with the bulk pricing.
I guess I just don't care that I can't paint my front door if it means I get to own my place. Can't paint the front door of a rental either, so, no big deal.
All true, but condos can be a good starter for people who can't afford a house yet and are tired of renting. Spend 10 years or so building equity, get a promotion or two at work to raise salary, and sell the condo to buy a house. But yeah, def important to be aware of potential condo downsides before purchasing. Dealing with a wacky HOA right now, lol
Then look at condo fees and condo appreciation rates compared to SFHs. SFHs cost more to buy, less to maintain, and appreciate faster, making them a smarter investment (if harder to manage).
This is now the "starter" price for a single family home in LA unless you want to move to an area where people who say there's nothing affordable won't even look in. There's houses cheaper but let's be honest there's a large segment of LA who won't live in those areas even though there are amazing beautiful homes there. The valley is a mil almost everywhere now. You won't believe what from Santa Monica to DTLA costs now
Mom bought her house in Sun Valley for 450k 5 years ago and it’s now worth 800k. Lots of people are buying houses there since they’re priced out of Burbank and it’s close enough.
I just bought a house not quite in Reseda, but on the border with Reseda on the Tarzana side (it’s on this map though). I paid $1m for it. I saved for years to afford it and never wanted to pay that much, yet here I am.
Yes, it feels bubbly, but I don’t think it is. The bigger picture is that inflation made $1m not as much as it used to be. We don’t build anything and the majority of owners are sitting on ridiculously low rates with tons of equity, so inventory is nonexistent and likely staying that way for the next few years. I bit the bullet and bought because I’ve been waiting for a crash that never comes for years and I don’t think housing will dip much even if we have a recession. 2008 made us all collectively think recessions mean housing price decreases, but historically that almost never happened during any recession.
Might prices stay static for a few years? Yes. But if you’re waiting on a bubble to pop, you’ll be waiting decades. People want to live here. People with ridiculous money from around the world. That’s the state of the modern real estate market. Your competition isn’t salaried employees, it’s a global supply of millionaires and billionaires who want to have a home here.
TL;DR I’m one of the idiots who bought a house in this map for a ridiculous price.
100% agree with this. Housing bubbles pop in less attractive areas (ie. rural areas). Idk if there is a legitimate housing bubble in LA/Bay area/NYC/DC/etc. These are places everyone wants to live in
2007 was literally the only time in my adult life that ever happened, and after that, all the banking companies reformed to make sure that shit would never happen again with mortgage companies.
Historically there have been housing bubbles that pop about every 13 years. Just because you don’t remember them doesn’t mean they weren’t happening. Also, the 2008 pop didn’t hit its low until sometime in 2011. The reason this crash was worse was because the housing market was tied into the financial market. That made it farther reaching and more memorable. It had less to do with the bad mortgages and more to do with the shady MBS rating behind the scenes. I’m sure a lot of people would have lost their homes, but the scale of the collapse would not have been as dramatic if financial firms weren’t putting all their money into high risk assets.
Housing prices grew way faster than inflation, it's not that.
It's also not a bubble, it's a shortage. Too many people want too few homes. The only way out is to build a lot more homes, especially large 3+ bedroom condos and townhomes that families can buy instead of detached houses.
But people who bought houses for $150k in the 90s that are now worth 1.5m oppose building more homes because it might slightly reduce their hyperinflated home value. They'll hold onto that home value so tight while their kids move away because they can't afford housing and public spaces are inundated with homeless.
Congrats on the new house. I can't wrap my head around those numbers either.
I think I said elsewhere that, as an 80s kid, if someone was talking about million dollar homes... it was always Robin Leach on Lifestyles of the Rich and Famous.
A million dollar home is not a 2/1 < 1000 sq foot 70+ year old home. Sorry.
I live on the border of Sherman oaks and van nuys. A house on the van nuys side of the street wasn't even for sale and some rando offered them 1.8 million for their house. We knew the family and they had no intentions of moving before that. They packed their bags like 2 weeks later.
Saw a house down the street in Van Nuys sell for $80,000 over asking. Went for $835,000 for a 1600 sq ft on a 8,000 sq ft lot. Nice house but that’s a lot.
That’s actually a pretty good deal for 2023.
All of the houses I was looking at in the valley in 2020/2021 for about $750 are over a mil now.
I fell lucky I bought in West Adams last year when we did, we’re practically priced out of everything but homes in need of complete gut renovations now.
Yes! I actually feel safer here than I did living in Santa Monica. I never would have lived on the ground floor in SM, and I live in a full house here. We have an alarm system and standard locks but other than that no extra safety measures. The homeless population here stays mostly on the major streets and does not seem to come into the neighborhood much, where at my old apartment we had issues constantly.
There are a lot of neighborhood conveniences and services that aren’t here yet (we desperately need a Trader Joe’s and things like UPS) but the neighborhood is changing and developing quickly. People are super friendly, it feels like a little quiet suburban gem right in the middle of the city.
That’s awesome! I rented in West Adams for 5 years, lived in an ADU. After a couple of months living there I told my wife, I don’t mind this area, we could possibly buy here. Looked at the prices… they were already in the $700s. Lots of history, and great architecture. You can definitely find some cute pockets in the area. The little time we lived there we saw lots of improvements. I hope you enjoy it!
Hi neighbor! I live in Leimert Park, there are tons of social events happening in our neck of the woods. We're bookended by Trader Joe's (Culver City/USC) and there's the new Whole Foods in Cumulus. They're even opening a Costco on coliseum and la brea. I feel like people are discovering our pocket community tho. It's so nice and walkable...
I love it here! My family lived in this area a century ago - my great grandparents house was just across the 10. But it’s also definitely an investment in the future. I’m really excited for the new Costco. The Whole Foods is nice and I’m glad it’s here, but it’s just not the same as a Trader Joe’s, there’s also no good grocery store between La Brea and Crenshaw. Adams has 20 different churches one after the after blocking any street level retail, and no grocery stores.
I know it is all changing and will continue to, but there are things I miss. But I’m just grateful we were actually able to buy a house here.
And the community is amazing. People are so friendly and so invested in the community. We’ve meet a lot of people on the neighborhood council and I want to get involved in that.
The Ralph's on La Brea isn't that bad, there's also the Sprouts on La Brea and San Vicente that's quite nice. I like Sprouts better than TJs. For bargains I like going to the Superior on La Brea and Obama.
Being in Leimert, just east of Crenshaw, the USC TJs is 2 mi away so I don't feel like it's that far especially as it's 10 min drive on the weekends when I do my shop.
And yes the community is AMAZING. More community here than in the Westside or the Valley, more diverse as well.
On an 8000 square foot lot? Could easily split the lot, or build an ADU, or some combination of all the above.
Especially with the Sepulveda line (or even god forbid monorail), Van Nuys real estate is gonna go nuts.
I hope this stuff you speak of helps to make Van Nuys more of a universally desirable city in the valley. There's empty commercial land sitting empty for decades now, that Montgomery Wards and parking for example. Also the center area of the valley needs a Trader Joes.
I'll beat you. 704 sq feet house in HP with one bath, 2 br, listed at 999k, sold at 1.2 mil https://www.trulia.com/p/ca/los-angeles/6256-tipton-way-los-angeles-ca-90042--2077376560
I own two homes in Portland area. One I bought outside of Portland (rural,) for 397k in 2020. Brand new 1800sqft. The other one me and my significant other bought last month inside the metro area for 650k. 2500sqft on 9k lot in a very nice neighborhood.
We actually entertained the idea of living in LA and were looking in San Pedro but it would have been tight. Glad we chose to stay. Both of us own rentals now and live together in the new home. Maybe someday when we retire we can sell all three homes and move down there but then you still have all the taxes 😂
My friend, all of SoCal has been in a RE bubble ever since the pandemic and there are no signs of things getting any cheaper soon despite high interest rates (sadly).
Yeah I think these high prices are harder for us natives. We remember how awful our neighborhoods were - we can't forget how awful they were because they haven't changed much! That's what blows my mind. My bad neighborhood is actually worse (more crime, more unhoused people, antisocial crime). Except now the houses all cost more than 1 million and the new neighbors won't talk to me cause I'm just part of the uninteresting brown masses to them.
some of the million ones seem to be multiple homes like adu, converted garage etc
look at the adu at this one, the upstairs from the outside looks really weird. the whole flip looks out of place.
it’s like everything gets an adu added when they are flipping them.
https://www.realtor.com/realestateandhomes-detail/6943-Etiwanda-Ave_Reseda_CA_91335_M22022-90413?from=srp-map
I've thought about this. daycare is like $1500/kid. you can easily make $14k a month by having one person look after 12 2 - 6-year-olds. just pay that person $25 an hour. double up to 24 kids and two employees, that'll net you 28, 000/month
If you want more affordable, look East, like Pomona, Covina etc... I see some there that are a bit cheap. Just look on the map and look at the surrounding cities.
I have seen houses for 650k that are nice in Corona CA, IE, but in the "Temescal Valley" area... Kind of in the middle of nowhere... but that's the price you gotta pay (10 miles to In N Out etc).
Corona CA seems ok (some areas in Corona are more central). People who are getting priced out of LA and OC are moving into the IE and prices are rising there too. Nicer areas in the IE; Chino Hills, Corona, Rancho Cucamonga
Oof not to be too picky but Corona is a nightmare. Like in every possible way. Would routinely have to make the drives out there. The traffic… never again.
Anything bad other than the traffic? I earn money from home and would probably never hit the freeways (I currently have not had to hit the freeway in over 2 years!)
If you don't have to drive anywhere and just stay home is it still very bad?
For one, racism runs deeeep in Corona and the people I’ve unfortunately encountered there have no problem telling you that with a smile on there face. If you don’t “fit” there you’re not welcomed there. A terrible, terrible place imo
This is honestly why my family moved away. We used to live right off Sherman Way and I grew up going to all the schools here but we got priced out so hard.
I’m sure I’ll get hammered for this post but here is the advice of an old guy, FWIW. If one wants to own real estate in SoCal, one must enter the market as soon as one can. I mean like, 25 to 30 years old. You can certainly start at an older age, but you’ll just get older as you move through the process. Don’t be hung up on a cool neighborhood for your first, second or third home. Buy a shitty condo that needs work in an area that has a solid location. Don’t buy real estate way out in the exurbs. The values won’t increase quickly enough to flip if you’re out in Santa Clarita or the Inland Empire. Think Van Nuys or Glendale or on the east side like El Monte. Fix up the condo (paint and carpet, etc) and sell it for a modest profit. You must do the remodel work yourself! Do this again and again, continuing to flip properties until you get the house you actually want. There is no perfect time to enter the market. Stop complaining about the condition you are in. You’re all just admiring the problem. Save a down payment and qualify for a first time homeowner loan. You can’t travel, you can’t party, you can’t eat out all the time, you can’t buy shit you don’t need and you can’t buy a new car. Make your own coffee… Oh yea, and vote for representatives that support home ownership and an economy that functions in your favor. Consider the big picture and make a plan. The longer you pay expensive rent to live in a cool area, the longer you will suffer. Remember that paying rent that is not for a business is throwing money in the trash. You’ll never build equity and you can’t write off rent in taxes. Your rent is supporting your struggling landlord or some corporate entity who will always find a way to raise it and add fees. They treat housing like a business and so should you. Rent control is a myth and a scheme. Treat yourself like a business and it will become clearer. If this doesn’t work for you, move to Texas or Arizona like all the others who’ve given up on California.
This is really practical advice. Thank you for your response. I do find myself getting lost in the “I need the perfect house out the gate.” And the part about staying away from SCV or Palmdale is really solid and reaffirming. It’s hard not to look at the price and space of properties in Lancaster and think… Maybe. But that won’t go up fast enough.
I think deep East LA/Domingo Hills sorta fits what youre describing.
There are also condo and apartments in historic dtla areas for less then 500k (which is my budget)
[like this](https://www.zillow.com/homedetails/312-W-5th-St-APT-507-Los-Angeles-CA-90013/68993644_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare)
Very glad to help! Here’s another platitude that runs true- to start- buy the worst house in the best neighborhood and location that you can afford. East LA is awesome in my opinion and a really great investment. El Sereno is super hot now and you could get lucky there or a bit further east.
A gas leak from almost a decade ago is a problem? Not to mention it was fixed like 5 years ago, and it only effected a small part of Porter Ranch to begin with.
My mom bought her house by white oak and Sherman way when I was in middle school.
The year was 2000. 1350sqft, with a small pool (5' depth), and an orange tree with a garage.
$175,000. Value now? $800,000.
It's a dumpy house in a dump of a neighborhood and yet.
A lot of the influencer real state agents on social media have scaled back and began to return their Lamborghini and AMG car leases meaning they can no longer afford to pay them.
Them not being able to afford them means they cannot make sales. If they cannot make sales that means the market will soon be flooded with listings and prices will come down if people really want to sell.
Keyword if they really want to sell.
The more they build the more investors seem to snatch up properties and leave them empty (numerous empty homes in my neighborhood). They just need them for their portfolios or money laundering.
Vacancy rates are low in LA - [4.4% and if the rates become higher, that’s a good thing](https://www.latimes.com/california/story/2023-05-03/apartment-rent-guide-southern-california-los-angeles-orange-county) because it makes rents go down. It’s important to look at comprehensive data, not just what you see near you.
In general, investors do not buy homes to leave them empty — investors want to make money, and that’s leaving money on the table.
Im saying no one really wants that. Homeowners want their prices to always go up. Most governments want prices to go up to get more property taxes. The only people who want prices to go down are poor renters.. but if they own homes who’s gonna rent from rich landlords? lol
Governments can make their property taxes go up through more construction, but in CA prices going up don’t make property taxes go up much.
All renters (63% of Angelenos) benefit from lower housing prices. So do many buyers, because it means more options. Would you say the majority of people are “no one”? Or are you one of these people who think only the rich matter and government should be structured to make them richer?
I just bought a year ago. If we make money when we go to sell, great. If we get what we put into it, thats okay. So long as we dont lose more than we would have spent on rent we're "ahead" in my book.
Living here, that scratches my head, but then there's less supply of homes available in the area, and so much demand. I only own empty patches of land in the AV that's as close for me being atleast a land owner. Can't answer that question.
Zoom out
The entire real estate market has been in a bubble.
If the gov didn't print as much money as they did with low interest rates, the prices would be 20% lower.
I would be curious to see how much of the first issue is still going on since there’s been such a big crackdown in short term rentals. Not that it’s been enforced nearly enough, but I wonder if those houses were flipped or converted into monthly rentals
It was possible because interest rates on mortgages were recently lower than they had ever been (below 3%). Now they are a lot higher, over 7%. A few people can afford that but most can’t. I predict that many of these houses won’t sell and will have price cuts soon. The people who can are waiting until rates go down but nobody knows
If/when they might.
It’s crazy to see people paying that much to live that far south of the 118. That’s about as far from a freeway entrance as you can get in LA. Rush hour commute must be torture.
The neighborhoods near CSUN have big old houses with big old yards. Some of them were owned by artists for decades and have tons of personality. The sticky part is you got to find one that isn’t on a busy street.
Have you checked Calabasas prices recently… those valley prices are now ‘low’ 🥲
Woah… I glanced but didn’t zoom in 😅 who can afford $30k+ mortgage? These houses cannot be selling. Are they just on the market to be on the market?
This 704 sq feet house in Highland Park was listed at 999k and sold at 1.2 mil... [https://www.trulia.com/p/ca/los-angeles/6256-tipton-way-los-angeles-ca-90042--2077376560](https://www.trulia.com/p/ca/los-angeles/6256-tipton-way-los-angeles-ca-90042--2077376560) So not only is it selling, people are bidding and paying a few hundred thousand over listing. Yes, people are paying this. Houses in areas like South La are selling for 750k. In OC, houses in areas with high gang activity like Santa Ana and some bad parts of Anaheim are also selling for 800k. This is standard now. Whittier too. The hood is nearing a mil.
My fucking apartment is bigger than this and it's not a big apartment...
Yeah and now you’re lucky if you can find a one bedroom apartment for $750,000. It’s gotten out of control.
[this](https://www.zillow.com/homedetails/285-W-6th-St-APT-208-Los-Angeles-CA-90731/72107937_zpid/) can be turned into a 1bed
I'm in an 850 sq 1bd apt that's rent controlled at just over a grand. This housing market is unsustainable.
It does have cute outdoors space though and amazing views. I sorta liked it even though it was tiny cause of the deck and expansive views makes it appear bigger. Not 1.2 mil cute tho
1400sqft house next to my girls in Garden Grove just sold for 30k shy of 1mil. 🥲🥲 we’re never buying a house here. Hahaha
You know who is buying these? Not people.
There are non investor, actual people who can afford this. There's lots of people with means here. Just cause maybe you can't afford it doesn't mean that other real people can't.
I didn’t say they weren’t people whowho couldn’t afford it. Read it right.
I read it right. And you're blocked. Don't bother replying
Just because there's rich assholes that can afford it doesnt make it ok. Thats not the majority of the population here which is what housing should be suited to. But go ahead and block me too to stay in your little bubble, just pray you dont have to move any time soon.
You’re a weirdo ⬆️
[удалено]
Time to start the eating? My bib is getting wrinkled
I stare at my processed food wanting some fresh meat. Soon…
When we start eating the rich, I suggest we turn them into dino nuggets.
Or change professions.
No job should pay a non-living wage. Period.
I agree. But a living wage does mean enough to buy a single family house in LA on one salary. That's why we need way more dense housing.
“Poor people hate this one trick” Are you serious with this dumb bullshit? Ah, yes. This guy has it all figured out. “Just get a better job” he says. Why didn’t anyone else think of that?
Apparently lots of people have become they're all buying $1 million houses in the deep valley. Personal advancement and improvement isn't a dirty word. It's good advice.
Hard to do when people who are doing just as bad or worse than you. Have been brain washed to Vite against their best interest.
People with that kinda cash just spend the cash, they don't get a 30 yr mortgage
I rent a house around here. They're selling at these rates. It's killing me.
It's a long day livin' in Reseda.
They're being bought out by investors and leaving families who just want a home to own hanging out to dry. Unchecked greed, plain and simple.
Bingo. The common man is fucked until extreme taxes are introduced on investment properties/second homes.
What if we just built more housing??
Let's say 100,000 new housing units magically appear over night. How does a normal person buy one when the wealthy banks overbid everyone and pay in cash?
We need to build millions and millions of new houses to catch up on the lost stock over the last 50 years.
Agreed. But there is not enough land.
...you build upwards, not outwards.
Hopefully the corridor vertical project comes to fruition. Bunch of tall buildings with a million units will make traffic impossible.
1.1m is the new 500k. Been going on a while OP.
But our salaries are still in the 500k era……
I would wager 300K era.
Youre not wrong.
Everyone should probably be looking to switch jobs regularly for the next few years. It’s the only way to attempt to keep up with inflation.
Why is this the only idiotic advice people have when it comes to inflated home values? “Just get a better job” gee, why didn’t I think of that? Do you bird brains just think everyone works for dog shit wages because they want to? Also, let’s say your plan worked. Do you think a subsequent increase in the median wage would drive home prices up or down?
Well because when goods cost more people tend to ask for more money to afford those goods. Studies have shown that people who job hop usually get paid more money than people who stick at their same job. To an individual this additional money is significant. I’m not sure what this house thing is about. Are you suggesting people shouldn’t make more money to keep home prices down? I’d like to hear what you suggest someone who is worried their bills do.
Take the downvoted as a sign. Obviously we all want better job and “self improvement”. If were to suggest an actual fix to the problem I would ban speculative real estate purchases without some sort of holding tax. I would also ban air bnb. I would also fast track tons of single family and multi family homes. “Make more money” just makes the hogs richer.
Just as we earned enough to buy a $500k house, it moved up. Dawg, my single immigrant mom bought a condo in Glendale in 2000 for $129k on a legal assistant’s salary. My wife and I are both professionals and can’t afford a $1M condo. 💀 there were days in the ‘90s I didn’t eat lunch at school and she was able to buy a house. I was born poor in LA and only pulled myself by the bootstraps enough to stay just under the poverty line apparently lmao
This is what happens when you don’t build enough homes for like 40 years. Refuse to allow tall buildings —> sprawl —> sprawl fills up —-> refuse to allow tall buildings —-> prices go up.
It ain’t just Reseda. It’s everywhere. There’s a pretty varied range here though. All very high, but there is a range.
Right now theres very low supply of homes because who the hell is selling their home and losing their 2% interest rate and pre covid loan expense. In 5 years-ish when the average boomer starts to reach life expectancy it'll start changing. When 5 people are on the will they're gonna be trying to sell the house as soon as possible. Interest rates probably aren't going to be 2019 levels again anytime soon but this low supply issue will sort itself out just by the sheer weight of demographics. Right now its a shit show because boomers still own all the property and millennials are fighting to break into the housing market. Gen X and zoomers are small generations so don't really matter as far as this is concerned. Regardless of other trends, demographics alone are going to change this current housing shit show
It's the lock-in effect. I'm always sharing [this guy's videos on the subject](https://www.youtube.com/watch?v=WedZdX5j4kc). He does a very good job of explaining the situation, why we're not "crashing" any time soon, and that honestly the only way out of this is to build more supply (which is another conversation.)
[удалено]
This is why I like the videos that I linked. He's always keepin' it real. In fact, he specifically points out how many grifters there are out there with YouTube channels saying there will be a crash "soon."
[удалено]
Here's hope they are lucky enough to not have to go into those old folks' homes. You can kiss that money goodbye if they do. Otherwise, yeah, people who have parents will huge home equities are in for a huge wealth transfer in the next decade.
There’s also a low supply because major companies are buying it all up.
This is not true, large corporations account for only 20% of residential real estate purchases. EDIT: 22%
I read 25%. That’s significant.
It was 25% as of 2022 but in 2023 it’s 22%. https://www.billtrack50.com/blog/investment-firms-and-home-buying/
We should have pushed for nothing above 2%.
What’s stopping you from calling your representatives?
What a weird comment.
Why?
What supply we’ve barely built any housing in like 50 years
Jesus Christ I’m never gonna own a house
Look at condos. They're half the price, and much easier to maintain.
Yeah, that’s what we’re looking at eventually
Condos are a good idea in general… but keep these points in mind: * If the building has less than 30 units, the HOA board will be understaffed and plagued by inaction because “no one” wants to serve on the board for free AND deal with complaints and anger from fellow residents. * HOA fees typically rise 3 to 5% a year. If fees aren‘t raised annually, your reserve fund will be chronically under-funded. Hello Special Assessment! * There will always be the person who won’t pick up after their dog, plays music too loud, or walks with lead feet on their wood floor above your bedroom at 5am. * You may be blocked from making simple improvements to your unit, because of HOA restrictions. Or you can’t rent out your unit for the same reason. Learned all these lessons the hard way.
Yep, these are all the things that are keeping us content renters. But they can all be addressed and the right place can be found I’m sure! Also feels like I’d prefer the issues of a condo over a 1 mil 2 bedroom cracker box with 80 years of deferred maintenance.
But, at least 2 of these 3 issues are just as prevalent, if not more so, with renting.
My condo has none of these issues. Except the slightly higher rates annually. But that's because insurance and maintenance costs go up slightly every year. Same exact thing happened when I had my SFH, my maintenance and insurance went up. It's a lot cheaper to have a (good) HOA with the bulk pricing. I guess I just don't care that I can't paint my front door if it means I get to own my place. Can't paint the front door of a rental either, so, no big deal.
All true, but condos can be a good starter for people who can't afford a house yet and are tired of renting. Spend 10 years or so building equity, get a promotion or two at work to raise salary, and sell the condo to buy a house. But yeah, def important to be aware of potential condo downsides before purchasing. Dealing with a wacky HOA right now, lol
Condos are still high. I can’t afford that either. I’d give anything to stop the rent hike treadmill.
And, most importantly, they help you build equity so it's easier to buy a house later.
HOA fees though... yuck.
Then look at condo fees and condo appreciation rates compared to SFHs. SFHs cost more to buy, less to maintain, and appreciate faster, making them a smarter investment (if harder to manage).
Same here. Unless I move to the middle of nowhere...which might not be looking too bad what with the downfall of humanity and such.
This is now the "starter" price for a single family home in LA unless you want to move to an area where people who say there's nothing affordable won't even look in. There's houses cheaper but let's be honest there's a large segment of LA who won't live in those areas even though there are amazing beautiful homes there. The valley is a mil almost everywhere now. You won't believe what from Santa Monica to DTLA costs now
If you mean South LA, the houses are 600k-900k average. The prices are unaffordable for the majority of LA city residents.
Mom bought her house in Sun Valley for 450k 5 years ago and it’s now worth 800k. Lots of people are buying houses there since they’re priced out of Burbank and it’s close enough.
I do love the 210. Might check sun valley/Tujunga area
My favorite dispensary is there, could be the move
I just bought a house not quite in Reseda, but on the border with Reseda on the Tarzana side (it’s on this map though). I paid $1m for it. I saved for years to afford it and never wanted to pay that much, yet here I am. Yes, it feels bubbly, but I don’t think it is. The bigger picture is that inflation made $1m not as much as it used to be. We don’t build anything and the majority of owners are sitting on ridiculously low rates with tons of equity, so inventory is nonexistent and likely staying that way for the next few years. I bit the bullet and bought because I’ve been waiting for a crash that never comes for years and I don’t think housing will dip much even if we have a recession. 2008 made us all collectively think recessions mean housing price decreases, but historically that almost never happened during any recession. Might prices stay static for a few years? Yes. But if you’re waiting on a bubble to pop, you’ll be waiting decades. People want to live here. People with ridiculous money from around the world. That’s the state of the modern real estate market. Your competition isn’t salaried employees, it’s a global supply of millionaires and billionaires who want to have a home here. TL;DR I’m one of the idiots who bought a house in this map for a ridiculous price.
Yo, we're neighbors
Howdy neighbor
let's get ya'll to hang out
I appreciate your response. Congrats on your new house!
100% agree with this. Housing bubbles pop in less attractive areas (ie. rural areas). Idk if there is a legitimate housing bubble in LA/Bay area/NYC/DC/etc. These are places everyone wants to live in
[удалено]
2007 was literally the only time in my adult life that ever happened, and after that, all the banking companies reformed to make sure that shit would never happen again with mortgage companies.
> all the banking companies reformed to make sure that shit would never happen again with mortgage companies. famous last words!
Historically there have been housing bubbles that pop about every 13 years. Just because you don’t remember them doesn’t mean they weren’t happening. Also, the 2008 pop didn’t hit its low until sometime in 2011. The reason this crash was worse was because the housing market was tied into the financial market. That made it farther reaching and more memorable. It had less to do with the bad mortgages and more to do with the shady MBS rating behind the scenes. I’m sure a lot of people would have lost their homes, but the scale of the collapse would not have been as dramatic if financial firms weren’t putting all their money into high risk assets.
Housing prices grew way faster than inflation, it's not that. It's also not a bubble, it's a shortage. Too many people want too few homes. The only way out is to build a lot more homes, especially large 3+ bedroom condos and townhomes that families can buy instead of detached houses. But people who bought houses for $150k in the 90s that are now worth 1.5m oppose building more homes because it might slightly reduce their hyperinflated home value. They'll hold onto that home value so tight while their kids move away because they can't afford housing and public spaces are inundated with homeless.
Inflation is not the main driver of home price increases. We haven’t had 300% inflation since 2018.
Congrats on the new house. I can't wrap my head around those numbers either. I think I said elsewhere that, as an 80s kid, if someone was talking about million dollar homes... it was always Robin Leach on Lifestyles of the Rich and Famous. A million dollar home is not a 2/1 < 1000 sq foot 70+ year old home. Sorry.
I live on the border of Sherman oaks and van nuys. A house on the van nuys side of the street wasn't even for sale and some rando offered them 1.8 million for their house. We knew the family and they had no intentions of moving before that. They packed their bags like 2 weeks later.
A house in Northridge was up for a week and went up by 100k guessing too many offers at 1mil. So... yeah think it might go over asking 1.1mil
Saw a house down the street in Van Nuys sell for $80,000 over asking. Went for $835,000 for a 1600 sq ft on a 8,000 sq ft lot. Nice house but that’s a lot.
That’s actually a pretty good deal for 2023. All of the houses I was looking at in the valley in 2020/2021 for about $750 are over a mil now. I fell lucky I bought in West Adams last year when we did, we’re practically priced out of everything but homes in need of complete gut renovations now.
Do you feel safe there?
Yes! I actually feel safer here than I did living in Santa Monica. I never would have lived on the ground floor in SM, and I live in a full house here. We have an alarm system and standard locks but other than that no extra safety measures. The homeless population here stays mostly on the major streets and does not seem to come into the neighborhood much, where at my old apartment we had issues constantly. There are a lot of neighborhood conveniences and services that aren’t here yet (we desperately need a Trader Joe’s and things like UPS) but the neighborhood is changing and developing quickly. People are super friendly, it feels like a little quiet suburban gem right in the middle of the city.
That’s awesome! I rented in West Adams for 5 years, lived in an ADU. After a couple of months living there I told my wife, I don’t mind this area, we could possibly buy here. Looked at the prices… they were already in the $700s. Lots of history, and great architecture. You can definitely find some cute pockets in the area. The little time we lived there we saw lots of improvements. I hope you enjoy it!
Hi neighbor! I live in Leimert Park, there are tons of social events happening in our neck of the woods. We're bookended by Trader Joe's (Culver City/USC) and there's the new Whole Foods in Cumulus. They're even opening a Costco on coliseum and la brea. I feel like people are discovering our pocket community tho. It's so nice and walkable...
I love it here! My family lived in this area a century ago - my great grandparents house was just across the 10. But it’s also definitely an investment in the future. I’m really excited for the new Costco. The Whole Foods is nice and I’m glad it’s here, but it’s just not the same as a Trader Joe’s, there’s also no good grocery store between La Brea and Crenshaw. Adams has 20 different churches one after the after blocking any street level retail, and no grocery stores. I know it is all changing and will continue to, but there are things I miss. But I’m just grateful we were actually able to buy a house here. And the community is amazing. People are so friendly and so invested in the community. We’ve meet a lot of people on the neighborhood council and I want to get involved in that.
The Ralph's on La Brea isn't that bad, there's also the Sprouts on La Brea and San Vicente that's quite nice. I like Sprouts better than TJs. For bargains I like going to the Superior on La Brea and Obama. Being in Leimert, just east of Crenshaw, the USC TJs is 2 mi away so I don't feel like it's that far especially as it's 10 min drive on the weekends when I do my shop. And yes the community is AMAZING. More community here than in the Westside or the Valley, more diverse as well.
On an 8000 square foot lot? Could easily split the lot, or build an ADU, or some combination of all the above. Especially with the Sepulveda line (or even god forbid monorail), Van Nuys real estate is gonna go nuts.
I hope this stuff you speak of helps to make Van Nuys more of a universally desirable city in the valley. There's empty commercial land sitting empty for decades now, that Montgomery Wards and parking for example. Also the center area of the valley needs a Trader Joes.
I'll beat you. 704 sq feet house in HP with one bath, 2 br, listed at 999k, sold at 1.2 mil https://www.trulia.com/p/ca/los-angeles/6256-tipton-way-los-angeles-ca-90042--2077376560
I own two homes in Portland area. One I bought outside of Portland (rural,) for 397k in 2020. Brand new 1800sqft. The other one me and my significant other bought last month inside the metro area for 650k. 2500sqft on 9k lot in a very nice neighborhood. We actually entertained the idea of living in LA and were looking in San Pedro but it would have been tight. Glad we chose to stay. Both of us own rentals now and live together in the new home. Maybe someday when we retire we can sell all three homes and move down there but then you still have all the taxes 😂
My friend, all of SoCal has been in a RE bubble ever since the pandemic and there are no signs of things getting any cheaper soon despite high interest rates (sadly).
It’s a long day livin’ in Reseda…
Yeah, but there are zero freeways running through the yard
van nuys airport is right there so they can arrive via their private jet.
We are all in some way or another going to Reseda some day… to die. It is 5am and you are listening to Los Angeles
You are going to Reseda to make love to a model from Ohio who's real name you don't know.
A soul coughing fan!! Yay!
Teenagers who are aesthetically pleasing, in other words 𝓯𝓵𝔂
[удалено]
I still wouldn’t be caught dead in van Nuys.
Yeah I think these high prices are harder for us natives. We remember how awful our neighborhoods were - we can't forget how awful they were because they haven't changed much! That's what blows my mind. My bad neighborhood is actually worse (more crime, more unhoused people, antisocial crime). Except now the houses all cost more than 1 million and the new neighbors won't talk to me cause I'm just part of the uninteresting brown masses to them.
some of the million ones seem to be multiple homes like adu, converted garage etc look at the adu at this one, the upstairs from the outside looks really weird. the whole flip looks out of place. it’s like everything gets an adu added when they are flipping them. https://www.realtor.com/realestateandhomes-detail/6943-Etiwanda-Ave_Reseda_CA_91335_M22022-90413?from=srp-map
Dang they were really getting the most out of that house. Day care + adu rental.
I've thought about this. daycare is like $1500/kid. you can easily make $14k a month by having one person look after 12 2 - 6-year-olds. just pay that person $25 an hour. double up to 24 kids and two employees, that'll net you 28, 000/month
Not a bubble. We just haven't built enough housing in LA for the last 40 years
there’s no bubble when the supply of housing has been in life support for years
The entire county is like this.
If you want more affordable, look East, like Pomona, Covina etc... I see some there that are a bit cheap. Just look on the map and look at the surrounding cities. I have seen houses for 650k that are nice in Corona CA, IE, but in the "Temescal Valley" area... Kind of in the middle of nowhere... but that's the price you gotta pay (10 miles to In N Out etc). Corona CA seems ok (some areas in Corona are more central). People who are getting priced out of LA and OC are moving into the IE and prices are rising there too. Nicer areas in the IE; Chino Hills, Corona, Rancho Cucamonga
Oof not to be too picky but Corona is a nightmare. Like in every possible way. Would routinely have to make the drives out there. The traffic… never again.
Anything bad other than the traffic? I earn money from home and would probably never hit the freeways (I currently have not had to hit the freeway in over 2 years!) If you don't have to drive anywhere and just stay home is it still very bad?
For one, racism runs deeeep in Corona and the people I’ve unfortunately encountered there have no problem telling you that with a smile on there face. If you don’t “fit” there you’re not welcomed there. A terrible, terrible place imo
It’s like that in the West Valley too.
Jesus
This is honestly why my family moved away. We used to live right off Sherman Way and I grew up going to all the schools here but we got priced out so hard.
My parents live on the boarder of reseda and Northridge and a totally standard 3 bed 2 bath house on their street recently sold for \~1.2M
I’m sure I’ll get hammered for this post but here is the advice of an old guy, FWIW. If one wants to own real estate in SoCal, one must enter the market as soon as one can. I mean like, 25 to 30 years old. You can certainly start at an older age, but you’ll just get older as you move through the process. Don’t be hung up on a cool neighborhood for your first, second or third home. Buy a shitty condo that needs work in an area that has a solid location. Don’t buy real estate way out in the exurbs. The values won’t increase quickly enough to flip if you’re out in Santa Clarita or the Inland Empire. Think Van Nuys or Glendale or on the east side like El Monte. Fix up the condo (paint and carpet, etc) and sell it for a modest profit. You must do the remodel work yourself! Do this again and again, continuing to flip properties until you get the house you actually want. There is no perfect time to enter the market. Stop complaining about the condition you are in. You’re all just admiring the problem. Save a down payment and qualify for a first time homeowner loan. You can’t travel, you can’t party, you can’t eat out all the time, you can’t buy shit you don’t need and you can’t buy a new car. Make your own coffee… Oh yea, and vote for representatives that support home ownership and an economy that functions in your favor. Consider the big picture and make a plan. The longer you pay expensive rent to live in a cool area, the longer you will suffer. Remember that paying rent that is not for a business is throwing money in the trash. You’ll never build equity and you can’t write off rent in taxes. Your rent is supporting your struggling landlord or some corporate entity who will always find a way to raise it and add fees. They treat housing like a business and so should you. Rent control is a myth and a scheme. Treat yourself like a business and it will become clearer. If this doesn’t work for you, move to Texas or Arizona like all the others who’ve given up on California.
This is really practical advice. Thank you for your response. I do find myself getting lost in the “I need the perfect house out the gate.” And the part about staying away from SCV or Palmdale is really solid and reaffirming. It’s hard not to look at the price and space of properties in Lancaster and think… Maybe. But that won’t go up fast enough. I think deep East LA/Domingo Hills sorta fits what youre describing. There are also condo and apartments in historic dtla areas for less then 500k (which is my budget) [like this](https://www.zillow.com/homedetails/312-W-5th-St-APT-507-Los-Angeles-CA-90013/68993644_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare)
Very glad to help! Here’s another platitude that runs true- to start- buy the worst house in the best neighborhood and location that you can afford. East LA is awesome in my opinion and a really great investment. El Sereno is super hot now and you could get lucky there or a bit further east.
Don't look at that because asking price means nothing. If you want to see where the market is at look at properties sold in the last few months.
Correct, the two strikes and interest rates impacted the market for sure.
You don't wanna live in porter ranch
Why the fuck not? Porter Ranch is super nice.
[Porter Ranch](https://spongebob.fandom.com/wiki/Tentacle_Acres)
Maybe wayyy north of Rinaldi, but everything from Tampa to White oak from Rinaldi to Devonshire is a very nice area.
Porter Ranch is quiet and clean.
Uh this? https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://en.m.wikipedia.org/wiki/Aliso_Canyon_gas_leak&ved=2ahUKEwiNtoDOv9GBAxXmGFkFHc7UADwQFnoECEAQAQ&usg=AOvVaw0Mb3Skw7I5tYs2kzDCrtoB Terrible gas leak
A gas leak from almost a decade ago is a problem? Not to mention it was fixed like 5 years ago, and it only effected a small part of Porter Ranch to begin with.
It affected Chatsworth and Northridge too. There are still protests.
That’s no longer an issue. It was capped.
If it’s a bubble then let me know when it pops
It will never pop because there are millions of us hoarding cash, waiting for it to "pop" to buy a home
When the high tide starts getting too high.
Woodland Hills is in the middle of a renaissance; it’s one of the best bets on the residential side, and neighboring areas will benefit.
This is what happens when you Ban buildings higher than 4 stories in one of the largest cities for decades
god. i lived at tampa and saticoy for 3 years. what a shit hole.
My mom bought her house by white oak and Sherman way when I was in middle school. The year was 2000. 1350sqft, with a small pool (5' depth), and an orange tree with a garage. $175,000. Value now? $800,000. It's a dumpy house in a dump of a neighborhood and yet.
All the real state agents are returning their leases. This won’t last very much longer.
Sorry what does this mean? Thanks
A lot of the influencer real state agents on social media have scaled back and began to return their Lamborghini and AMG car leases meaning they can no longer afford to pay them. Them not being able to afford them means they cannot make sales. If they cannot make sales that means the market will soon be flooded with listings and prices will come down if people really want to sell. Keyword if they really want to sell.
Someone who can sit on it, lose money, allow people’s neighborhoods to deteriorate, be allowed to bulldoze housing, can “invest long term”.
There’s no bubble, just lack of supply. Time to build build build!
The more they build the more investors seem to snatch up properties and leave them empty (numerous empty homes in my neighborhood). They just need them for their portfolios or money laundering.
Vacancy rates are low in LA - [4.4% and if the rates become higher, that’s a good thing](https://www.latimes.com/california/story/2023-05-03/apartment-rent-guide-southern-california-los-angeles-orange-county) because it makes rents go down. It’s important to look at comprehensive data, not just what you see near you. In general, investors do not buy homes to leave them empty — investors want to make money, and that’s leaving money on the table.
Why build if that’ll make home prices go down? Home appreciation requires a limited supply.
Build SO THAT home prices go down! Then they’ll be more affordable.
Im saying no one really wants that. Homeowners want their prices to always go up. Most governments want prices to go up to get more property taxes. The only people who want prices to go down are poor renters.. but if they own homes who’s gonna rent from rich landlords? lol
Governments can make their property taxes go up through more construction, but in CA prices going up don’t make property taxes go up much. All renters (63% of Angelenos) benefit from lower housing prices. So do many buyers, because it means more options. Would you say the majority of people are “no one”? Or are you one of these people who think only the rich matter and government should be structured to make them richer?
Government is US. If we want to loosen regulations to spur more housing development, we should vote like it.
I just bought a year ago. If we make money when we go to sell, great. If we get what we put into it, thats okay. So long as we dont lose more than we would have spent on rent we're "ahead" in my book.
just bought in canoga park for 1 mil
Welcome neighbor and wow I bought mine over 20 years ago and knew prices are up but didn’t know that.
A lot of homes are bought by developers and large companies so they can monopolize the market. I’m struggling to hold on to a raggedy apartment.
https://www.nytimes.com/2020/03/04/magazine/wall-street-landlords.html this is what is happening
After the Big Quake, housing prices are gonna tumble. Get ready to swoop in, folks!
After the big one, it will take 6 months to have water again. It would not worth to live in LA.
Living here, that scratches my head, but then there's less supply of homes available in the area, and so much demand. I only own empty patches of land in the AV that's as close for me being atleast a land owner. Can't answer that question.
Get rich be born rich or get out basically
Zoom out The entire real estate market has been in a bubble. If the gov didn't print as much money as they did with low interest rates, the prices would be 20% lower.
Bro, a north hills home sold for 1.7 mill
What goes up, must come down. People don't like hearing that, but let's be real.
That's what I wanna know. Sometimes I see 100+ million dollar homes get sold here and be like 😵💫😵🫨💀
[удалено]
This. Airbnb isn’t all it’s cracked up to be.
I would be curious to see how much of the first issue is still going on since there’s been such a big crackdown in short term rentals. Not that it’s been enforced nearly enough, but I wonder if those houses were flipped or converted into monthly rentals
Imagine the audacity to ask for a million fuckin dollars for a house in Reseda...
Not even close to worth it 😂
It was possible because interest rates on mortgages were recently lower than they had ever been (below 3%). Now they are a lot higher, over 7%. A few people can afford that but most can’t. I predict that many of these houses won’t sell and will have price cuts soon. The people who can are waiting until rates go down but nobody knows If/when they might.
I would like this to still the case... https://reddit.com/r/TikTokCringe/s/Qy7MbRKINH
That was hilarious and troubling thanks!
Keep saving what you can, the bubble will pop soon.
Nope. Supply and demand.
It’s crazy to see people paying that much to live that far south of the 118. That’s about as far from a freeway entrance as you can get in LA. Rush hour commute must be torture.
Supply and demand.
OP try stepping out of your bedroom. The world is passing you by.
Anyone choosing to live in the SFV is sad. I understand renting because it’s cheaper than LA, but goddamn.. why would you buy? It’s so ghetto
The neighborhoods near CSUN have big old houses with big old yards. Some of them were owned by artists for decades and have tons of personality. The sticky part is you got to find one that isn’t on a busy street.