Market Conditions in 90049>Question Details

Todd, Home Buyer in Los Angeles, CA

Is there going to be a downturn in West Los Angeles and when? Specifically Brentwood, Palisades, etc.

Asked by Todd, Los Angeles, CA Thu Jul 24, 2008

So far it doesn't seem like prices have fallen that much on the west side. Are there really that many people that can afford a $1.5 million home?

Help the community by answering this question:

Answers

11
Hi Todd,

Brentwood and West Los Angeles are still going strong, although, Palisades has experienced some adjusment. The average sales price in June of 2008 was $1,464,000 compared to June of 2007, which was $1,735,000 which is about 15.62% reduction in price level. There were 18 properties that sold in the Palisades in June 2008.

I can send you some properties to look at in your price range to review - sellers are more apt to accept a lower offer if their house has been on the market for several months.

Yona Bello
Prudential
Yona@YonaBello.com
Web Reference: http://www.YonaBello.com
1 vote Thank Flag Link Fri Jul 25, 2008
Hi there Todd, it does not look like it. All the really great neighborhoods still command a stong demand and the prices are holding up. But there are some that are prime to sell so there are some really great buys out there. You just need to be out there looking.

If you would like to receive property updates automatically please let me know

Kind Regards
Michael Barron
Realtor/MBA
First Team Real Estate
(714) 552-6817
michael-barron@sbcglobal.net
1 vote Thank Flag Link Thu Jul 24, 2008
Hello Todd,

In LA, especially on the Westside, Brentwood, Palisades and Venice/Santa Monica, single family homes are still up (prices). Volume/the number of sales is down. Their just doesn't seem to be a shortage of people that can afford these homes. Condo prices (in most areas have dropped slightly. You can never know for sure, but if home prices don't fall in any areas, I would would bet on West LA, Brentwood and Palisades (and other Westside areas surviving and staying strong.

Best,

Monique
1 vote Thank Flag Link Thu Jul 24, 2008
This area is in very high demand, especially right now. We actually have a huge shortage of inventory for our buyers and home prices have increased steadily for nearly 5 months straight. Do you have an agent you are working with? To get these deals, you really are going to need an agent as they are getting swooped up very quickly. This area holds it's property values very well due to the great location, jobs, shopping, and amazing weather "this is a very desired area". Feel free to search all the current listings on my site anytime. If you have any questions or would like to schedule appointment to view the homes, feel free to contact me anytime as I work and live in this area and have a great deal of knowledge of the local area.

Have a great day,
Heather Paul, Realtor
Coldwell Banker
(310)586-0364 or (424)625-1037
0 votes Thank Flag Link Fri Apr 29, 2011
Thank you for your question about whether or not there will be an economic downturn in West Los Angeles. Property values in affluent desirable areas are affected less by downturns economic conditions. West Los Angeles is an affluent desirable place to live. Therefore, prices should remain flat in West Los Angeles, specifically Brentwood, Palisades, etc...

There is a third wave of foreclosures starting and a pending 'double dip' in the market but the Westside is going to be all right.
0 votes Thank Flag Link Thu Aug 5, 2010
Absolutely. As a market in the Los Angeles communities , we are at a point property values have stabilized. More people have jobs compared a several years ago. The stock market is back up over 2000 points compared to two years ago. This economy, more specifically the southern california market has really improved. Therefore, a 1.5 million dollar home now is attainable even with lending limitations.

Ikem Chukumerije
Broker/Owner/Notary
Westside Premier Estates
Brokerage | Financing | Investments
Tel: 323.350.8297 | Toll: 800.783.1421 | Fax: 310.496.0511
Email: ikem@MillionDollarLiving.com | Web: http://www.MillionDollarLiving.com
0 votes Thank Flag Link Sat May 22, 2010
It may not be the most widespread measure of housing prices, but if you want to follow a powerful driver, look at rents.
Specifically, it’s the rents Americans pay on condos, apartments or houses that are about the same size, and share the same neighborhood as a comparable purchase, that in the end determine what your house is worth.
That brings us to an interesting study by Deutsche Bank. Its Real Estate Investment Trust research team first established a benchmark for a "normal" ratio of rents to ownership costs — what it calls ATMP, or after-tax mortgage payment — for 53 U.S. cities. In recent reports, Deutsche Bank demonstrates how steady or even falling rents have pulled down housing prices, to the point where in many markets it costs about the same amount to own as to lease.
In normal times, people won’t pay too much more to own a house than to lease it. The surest sign that prices have fully adjusted arrives when the ratio of what people pay in rent versus what owners spend on the same property returns to its historic average. The DB research also offers convincing evidence that the wrenching adjustment in housing prices is finished for much of the nation, with a bit more pain to come in selected areas.
What does that mean for future prices? Given the DB analysis, it’s likely that prices will fall another 5% or so nationwide. In California’s San Bernardino and Riverside Counties, it now costs 10% less to own than to rent; in Los Angeles County, it's about even.
As for Brentwood and Palisades, a lack of inventory plus own-to-rent value comparisons tells us that the market has stabilized. For the first time in over 4 years, with the tax credits and low interest rates, it's more affordable to own a home than to rent a comparable one.
Best,
Deborah Bremner
REALTOR, 00588885
(D) 818.564.6591
TheBremnerGroup@gmail.com
Blogging at: http://TheBremnerGroup.com/blog
0 votes Thank Flag Link Fri May 14, 2010
It is amazing how much money there is in this town. Yes, a ridiculous number of people can afford to spend millions on their home purchase. And the demand for homes on the Westside has always been high. Why?
We have the best weather. Why do you think homes in the San Fernando Valley are so much cheaper? It's 90-100 degrees in the Summer, when Brentwood has temperature in the 70s.
Look at the 405 freeway from the Sunset Blvd. overpass during the morning rush hour commute. You will see thousands of cars driving in from the north and south into Brentwood, Santa Monica and the Palisades. Unbelievable demand to be here keeps prices higher than other areas. Don't expect prices to fall anytime soon. They may dip a bit but the demand keeps them fairly steady.
Joseph Montemarano
310-500-1353
0 votes Thank Flag Link Thu Apr 15, 2010
Dear Todd,
I don't think property values will drop further in the best areas of Los Angeles. As a matter of fact, we have seen a stabilization in many areas. My advice is to purchase in the very best area, that your budget can afford, those are the areas that maintain their value.
0 votes Thank Flag Link Mon Apr 12, 2010
The luxury real estate market is really holding it's own. It's still very strong in Brentwood, 90049 and other high end areas. Most of our clients are buyers with over a $1.5 million budget specifically looking in Brentwood, Pacific Palisades, and Beverly Hills. Real Estate here on the Westside is still very active. We run into multiple offers often. For more up to date Real Estate information feel free to call us or email us.

Solomon Team
SoldbySolomon@gmail.com
(310) 979-3798
0 votes Thank Flag Link Mon Apr 12, 2010
zip 90049
7/25/2008 Trulia shows 43 foreclosures. Be patient, housing prices will decline more. Just keep an eye on the financial markets. More and more trouble in the financial markets means more trouble for housing.
0 votes Thank Flag Link Fri Jul 25, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer