HOUSINGNEWS REPORT
LOS ANGELES SPOTLIGHT
and price growth in the higher end of the Los Angeles market is grounded in more long-term structural changes rather than cyclical market fluctuations that are more fickle in nature. He cited as an example the higher paying jobs coming to Silicon Beach, loosely encompassing the west side of Los Angeles, including Playa Vista, Playa Del Ray, Westchester, Santa Monica, Venice and also spreading into surrounding areas such as Marina Del Ray and Hermosa Beach. “Silicon Beach … is having a huge impact on high-end jobs and is transforming a lot of neighborhoods in West Los Angeles,” said Bartlett, explaining that the Silicon Beach ripple effect is continuing to spread to more cities and neighborhoods as buyers chase affordability. “You are starting to see
some of those adjacent neighborhoods keyed up in terms of price appreciation … but if something is a good a product and priced right, it’s going to sell because of the lack of inventory. “My Realtor is telling me North Redondo Beach is the hottest neighborhood in the South Bay,” Bartlett continued, adding that neighborhoods like North Redondo Beach are still relatively affordable and have good schools. “They are where buyers are moving to and gentrifying these areas.” Median home prices in the 90278 zip code representing North Redondo Beach were $903,000 in 2016, up 5 percent from 2015, according to ATTOM Data Solutions. That was a discount compared to the $1,249,500 median
sales price in the coastal 90277 zip code of Redondo Beach, although prices in 90277 also continued to rise in 2016, up 4 percent. For homes priced above $750,000, the median price per square foot in Los Angeles County was $613 for homes sold in February 2017, a new all-time high and 19 percent above the pre- recession peak of $517 per square foot in March 2008. Conversely, Bartlett cautioned that neighborhoods in the “lowest tier of prices” and not as close to well-paying jobs or good schools are experiencing more of a cyclical real estate boom that could be more susceptible to a correction.
LA County NODs Below Pre-Recession Levels YoY Pct Change Notices of Default
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Bruce Bartlett Managing partner, Sequoia Real Estate Partners in Westwood Village jobs and is transforming a lot of neighborhoods in West Los Angeles. … You are starting to see some of those adjacent neighborhoods keyed up in terms of price appreciation.” Silicon Beach … is having a huge impact on high-end
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ATTOM Data Solutions • P16
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