The supply and demand laws are in effect, but prices vary between Los Angeles neighborhoods. Clearly, homeowners should investigate their options now.
The Real Deal, Los Angeles’ real estate news site, reported in early 2017 that Northeast LA’s Glassell Park neighborhood has the fastest growing per-square-foot median price for all of Los Angeles County. Home sellers in the hilly neighborhood adjoining Glendale, Eagle Rock, and Mount Washington, experienced a 23.5% price increase in 2016 over 2015.
Which is nothing less than extraordinary. This dramatic spike in the value of Glassell Park real estate is due in part to the increased values in adjoining neighborhoods – home prices in Eagle Rock have surpassed affordability for many homebuyers – and also due to the prevalence of interesting vintage properties.
But to be clear, it’s all about supply and demand. So buyers looking at homes for sale in Mt. Washington, Highland Park, Garvanza, Hermon and other parts of NELA are likely to see price increases as well. It’s a seller’s market.
A seller’s market is technically defined as how quickly homes sell. More specifically, it comes down to inventory: looking at the number of homes for sale and the number of homes just sold in one month. Assuming all homes are equally attractive, the number of months it would take to sell all the listed homes at that moment is the “months of inventory.” If that number is four months or less, it’s a seller’s market; at six months or more, it’s a buyer’s market. In between those two is a “neutral market.”
Overall the growth rate in median home prices for Los Angeles County rose 7% last year (November 2015 to November 2016). Barring a major, national financial disruption, the sales price increases overall are on track to maintain this pace in 2017. “Northeast LA neighborhoods have grown consistently in recent years,” says The Real Deal (“Median home prices grow in LA, skyrocket in Glassell Park,” 1/16/2017). “Glassell Park is at the top this year because many people have already been priced out of nearby Eagle Rock and Highland Park.”
But every home, every street and every neighborhood is different. A change in school district ratings can attract some buyers and deter others. Two existing homes that look alike from the street might have differences inside that alter their value (for example, a major fixer due to structural or other issues would sell for less than a cosmetic fixer-upper or one with a smartly renovated interior). The bottom line is a home seller is advised to speak to a professional Realtor to learn of their options relative to what buyers are looking for.
Tracy King is a Realtor who works in Glassell Park as well as most other NELA neighborhoods, backed up by an expert and passionate team and her quarter century of experience with homes and home sellers. Contact the team to discuss selling and buying.
Licensed and certified listing agent Tracy King has achieved and honors in recognition for her performance selling real estate in the communities of Northeast Los Angeles. When selling real estate, it makes good sense to hire an agent who posses demonstrable success at selling homes and exceeding expectations in both service the final sales price. If you are looking to sell - or purchase - a home in Northeast Los Angeles, please call Tracy King today at 323.274.2148.