What's with the huge disparity with LA real estate? (Burbank: 2014, condo)

[Fiona8484]

Originally Posted by jm1982

I've noticed something similar .
One reason could be that less people can afford that extra $200,000 mortgage
Also the thing that is valuable in LA is the land . You could have a bigger house that is less per square foot so it could appear to be a better value than a smaller house
If you look for smaller homes for sale in LA often times the price per square foot will be considerably higher than per square foot versus a larger home .

If you look at homes in Houston for example you can find huge brand new homes for a fraction of the cost ...The land value is the big difference .,

Bingo! I have also arrived at this point as well, less people in LA that can afford that $200k jump. I think you can see this in Culver City and Westchester too.

[Sydney123]

Location, location, location.

[murfslaw]

I would think that if the house were not located on very busy, 4 lane Verdugo Ave. it would be listed for over a million.

[nightlysparrow]

The jumbo and FHA loan limits for Los Angeles County are $625,000, which may play into things.

[thelopez2]

Originally Posted by dylan_505

I've noticed how expensive houses are in LA right now from searching online and seeing that 500k doesn't get you too much these days.

What really shocked me was the huge difference in the quality of the houses between 600k and 800k. In a lot of areas 600k gets you an old, small fixer upper but if you stretch the budget to 800k-850k then you can get a really nice, spacious home in a pretty nice neighborhood.

I know 200k is a lot of money but I'm just surprised that it can get you a much nicer house.

LA has some of the highest construction, labor, and renovation cost in the country. $150sq/ft for a 1,500 sq ft house is not unusual. So a totally updated house should cost $200k more.

[Pennychaser11]

Supply and demand for sure but don't forget low interest rates. If interest rates were higher prices will go down accordingly

[pwright1]

Originally Posted by socal88

LA is really expensive because people keeping moving here to soak up the year-round sunshine. There's a little more than that, but that's the gist of it.

I always hear this but is it really true? I never see the LA area on any list of fastest growing areas. I always here about Dallas, Houston, Seattle, Denver and a few others but never LA. Growth has exploded in those places but you can still afford a nice home or condo in those cities without moving 60 or 70 miles outside of town.

[MordinSolus]

Increasing your budget by 33% gets you a better house?! Stop the presses!

[jm1982]

Originally Posted by pwright1

I always hear this but is it really true? I never see the LA area on any list of fastest growing areas. I always here about Dallas, Houston, Seattle, Denver and a few others but never LA. Growth has exploded in those places but you can still afford a nice home or condo in those cities without moving 60 or 70 miles outside of town.

Yes , many fast growing cities in Texas.
You can look on here to see how much home you can buy in Texas cities.
The unemployment rate is much lower in many Texas cities too.
Rate is 7.5% in L.A

In Austin 2.6%
San Antonio 3.2%
Houston 3.7%

Really huge difference right there in terms of economy. I doubt many in L.A realize this , as you hear a lot of people say stuff like "This is where the jobs are...sure you can buy a cheap place in Texas but where would you work?" Lot's of ignorance.

"Three of the top five fastest growing U.S. cities are in Texas, according to new U.S. Census Bureau data on population growth between 2013 and 2014.
The figures are another sign that young American adults and some Baby Boomers are flocking to cities, choosing an urban life over suburban or rural towns.
New York City still tops the list of top destinations that Americans head to, but Houston, Austin and San Antonio rank in the top five.
Despite the recent downswing in energy jobs, Texas remains a hot bed for tech, education and health care jobs. The Lone Star state has one of the lowest unemployment rates in the country, especially for a large state. It also has lots of affordable real estate, which makes it attractive prospective home buyers."
Link : Fastest growing U.S. cities: Texas is king - May. 27, 2015

If I moved out of state , Texas would probably be high on the list.

[thelopez2]

Originally Posted by pwright1

I always hear this but is it really true? I never see the LA area on any list of fastest growing areas. I always here about Dallas, Houston, Seattle, Denver and a few others but never LA. Growth has exploded in those places but you can still afford a nice home or condo in those cities without moving 60 or 70 miles outside of town.

When a cup is full adding just a drop will cause it to overfill. LA is a full cup. Those other cities are still building new homes and communities because they have plenty of land. Add 3 million to their population and see what happens.