The State of Real Estate in NE Los Angeles

Let’s dive in to how the Northeast Los Angeles real estate market is looking these days:

Increased Interest Rates

Interest rates moved up over the summer and have settled into about 1-1.5% over what they were in the earlier part of 2013. FHA loans have become more expensive as fees for their Mortgage Insurance Premium has risen to balance the number of defaulting loans they are meant to insure, plus the MIP now stays in place for the life of the loan. Why would anyone choose an FHA loan today? Because they will lend to someone with a lower credit score than any conventional lender will. More loan products have come into the marketplace including low or no-documentation loans, but you will pay a premium for them. Again, as interest rates average 4.5 to 5% today, it is still a long way from the 13.4% of 30 years ago!

Inventory

The number of single-family homes for sale in Northeast Los Angeles has settled back a little from the increase of the summer in Eagle Rock and moved up in the rest of Northeast. Eagle Rock averages in the low 20s, Highland Park surged up into the 50s, while Glassell Park (including Mt. Washington real estate) is around 70. As more has come onto the market, more have opened and closed escrow as well. The market has been very active even though it seemed that most of Los Angeles went on vacation in August.

Average Sales Price

The average price for sold homes has continued to move up in spite of the rise in interest rates. In Eagle Rock, the market is strong with an increase of 5.3% in August compared to July, and 17 % over August of 2012. In 90042 (Highland Park area) zip code, a similar increase occurred. In 90065, prices leveled off slightly, though the year over year price increased by 28%! Highland park real estate will continue to heat up.

What Does This Mean For You?

It is still the best time to sell your home that we’ve seen in the last several years. Since the inventory is more than was available in the spring, buyers are very concerned about value. There doesn’t appear to be any speculation or indication that prices will surge up soon. Therefore, buyers fear that they could overpay for a home now. A well-priced home in great condition generally sells quickly, but if there is any question about the location or amenities (yard, updates, schools), there is much more resistance to paying top dollar.

Northeast LA New Construction: Glassell Park

There has been quite the surge in new construction hitting the Northeast Los Angeles real estate market lately, particularly in Glassell Park.  Glassell Park real estate continues to be popular with home seekers who love the area and the views but are priced out of the costlier Eagle Rock real estate market.

Glassell Park, which is boxed between Glendale, Eagle Rock, Atwater Village and Elysian Valley has seen a resurgence of interest after Eagle Rock began to gentrify seven or eight years ago. Because it is a hilly neighborhood, many homes in the area have spectacular views.

First we saw a development of four homes by 4site Real Estate, designed by Holz Architecture, located in the hills of Glassell Park at 4239-4243 Scandia Way.  Featuring panoramic views, vaulted ceilings, and walls of glass, these modern homes started at $889,000 and went up to $959,000.  As of Fall of 2013, three have sold and the fourth is currently in escrow.

Next to hit the market is the latest from Heyday (who were behind the Rock Row project in Eagle Rock).  Peak Place is a development of 6 fee-simple single-family homes located at 3510 N Fletcher in Glassell Park.  Each home has 3 bedrooms, 2 baths and is about 1,900 sq. ft. in size, with a private courtyard for its outdoor space.  These homes have achieved the LEED Gold status with their sustainable features, from tankless water heaters to high efficiency furnaces.  As of Fall 2013, asking prices range from $625,000 to $640,000.

And soon to come is the North East Los Angeles Union development, which is currently under construction.  This is a development of 52 modern homes located on Eagle Rock Boulevard in Glassell Park.  With a range of floor plans, from 2 bedrooms to 4 bedrooms, the asking prices will range from the upper-$400s to the low-$600s.