Real Estate Price Predictions in Los Angeles City (El Monte, Montebello: section 8, for sale)

[greggd]

So its pretty clear now that real estate in the outskirts like lancaster, antelope valley, riverside etc have become seen an increase in foreclosures, increase in listings, price reduction, and increase in section 8 rentals.

The big question is what do you think will happen to real estate prices in the city of los angeles, west los angeles, beverly hills, even parts of Malibu and the entire west side including the south bay? Will a ripple run through these areas as well.

I wonder how many homeowners there are in the more expensive/1-5+ million parts of Los Angeles that bought a home with no intention of keeping it for more than 5-10 years and used an ARM loan to pull the deal. If housing prices in the west side dip a bit, will we see a flood to the market of homeowners cashing out early to avoid a bigger dip? A Stable economy/market has alot to do with one's perception of the future.

[LALady]

My opinion - Prices will increase or remain stable in areas like Bev Hills, Malibu, Pacific Palisades, Encino (south of Ventura). I base my opinion of the decrease in living standards in the rest of LA - Apartments and condos are being built so close the almost touch. Single family homes are being torn down or having four plexes built next to them. The few areas that remain 'nice' with large yards and few apartment/condos will retain their value. People with money will pay to avoid living like bees in a beehive.

[abstrak_tokatl]

east L.A. is going to go up in price. aka it already has.

[Rats]

I think prices of homes in the hilly areas and good school districts will stay the same, while those in the beaches and valleys will decrease. I don't think we will see much of an increase except for Echo Park and surrounding areas including East LA. Places like Hacienda Heights, La Habra Heights, Montebello, and South El Monte look like great candidates for gentrification as well.

[PureHapa]

There won't be a "ripple" effect - the areas are completely different. The areas you mentioned had been over-developed with new cookie-cutter developments of aggressively-sold and financed homes, mostly for first-time homeowners, many of whom were stretched to buy a home anywhere.

West L.A., Bev Hills, South Bay saw no such developments - there's no more land to build on in these areas. These are the some of the most desirable areas to live in the world. Home prices are holding steady and even continuing to go up in some neighborhoods due to continuing demand.

Home prices at the beaches will not go down. My gosh - everyone and their uncle and their dog wants to live here, LOL. I live a block from the beach so I know. (Location, location, location.)

[JackSparrow]

Conservatively, my only property went up 5% last year (being generous, it's closer to 6.5%, but who's counting).

While that may not seem like a huge BOOM in real estate. Many, many places have gone down in value. I guess if you spend the extra money, and buy in a good area, it's not so much of a big deal.

Now, where are those foreclosing homes in some of the nicer areas? Oh yeah, that's right there are none. Dam. Oh well, guess I'll have to pay full price for my next place, and likewise have it go up in value. As the previous poster stated: Location, location, location.

~

I'll save my speculations on why the areas you mentioned went down the drain, and why there's so many foreclosures. Mostly, it's as stated above- people moving to a location they can't afford, but thought it would be cheaper because it's so far away, and hey, they saved $100,000 on a house, etc., but it'd fall on deaf ears anyway.

[IamInShape]

I work in real estate. Prices will decline everywhere including the high end. Those that still believe there home will retain its value are in for harsh reality in the future. Values in California are unsustainable. I am also an investor---real estate in Los Angeles is way over valued and needs a BIG correction.

[JackSparrow]

Originally Posted by IamInShape

I work in real estate. Prices will decline everywhere including the high end. Those that still believe there home will retain its value are in for harsh reality in the future. Values in California are unsustainable. I am also an investor---real estate in Los Angeles is way over valued and needs a BIG correction.

Right. And you are still human. So you make your guesses, and I'll make mine. My guess is this: "Long term, real estate never goes down."

Opinions are like [you], everyone has one, and most stink.

[davidt1]

There aren't that many houses for sale in my area that I am aware of, and the ones I have seen are crappy -- many with brown lawns; some appear unoccupied; many are on busy main streets. My wild guess is that most are foreclosed or investment properties. As long as there are demands, prices will remain stable. That appear to be the case in established parts of the city. Many sellers are still dreaming of 2005 prices for their houses. Thus, their properties remain on the market for a long time. The current market definitely works in favor of buyers, and will remain so for at least five years. If you are buying, just remember that a property is worth what are you willing to pay, not what the sellers want, and certainly not what the NAR wants you to believe.

[JackSparrow]

Originally Posted by davidt1

There aren't that many houses for sale in my area that I am aware of, and the ones I have seen are crappy -- many with brown lawns; some appear unoccupied; many are on busy main streets. My wild guess is that most are foreclosed or investment properties. As long as there are demands, prices will remain stable. That appear to be the case in established parts of the city. Many sellers are still dreaming of 2005 prices for their houses. Thus, their properties remain on the market for a long time. The current market definitely works in favor of buyers, and will remain so for at least five years. If you are buying, just remember that a property is worth what are you willing to pay, not what the sellers want, and certainly not what the NAR wants you to believe.

Thats a simplified statement saying that property is only worth what you are willing to pay. If that were the case, anyone with half a brain would have stopped buying real estate in LA years ago.

Property is worth what CONSUMERS are willing to pay. Not individuals. The NAR is invisible (irrelevant?) as far as I am concerned... well, in LA anyway... ok, AFAIAC