The Following Article is from the Summer 2007 Newsletter
Generally real estate values fluctuate as a whole by city, state or region. That has changed here on the Westside! Values are varying from neighborhood to neighborhood in Los Angeles.
Proximity to the ocean, large-scale new construction projects and major traffic congestion are common variables for this change in value. The values on the Westside have been up over the last two years, while values in many of the neighborhoods in the San Fernando Valley have been down. Mid city in Los Angeles is up in value. The values in the eastern end of L.A. County and the desert communities are down. In the South bay some neighborhoods are up while other neighborhoods are down. This depends primarily on their proximity to the ocean.
Sellers in neighborhoods that are in close proximity to new housing developments are slugging it out with developers to entice buyers. Developers are very aggressive with incentives for new buyers, that the average homeowner can’t afford to offer. This is especially true if these sellers purchased in the last few years.
Buyers are also making decisions based on proximity to work and play. They want to avoid their cars more now than ever. Going from Santa Monica to Beverly Hills at the wrong time of day can take 60-90 minutes. Santa Monica has been one of the hottest markets in the country over the last fifteen years. Recently, 90402 was rated as one of the top zip codes in America. The reason? It is an end destination with little cross traffic. It is bordered on the west by the Pacific Ocean and on the north by the Santa Monica Mountains. There is no land to develop on a large scale. If you want to build a new house on the Westside you will have to tear one down, and the air quality is better than most other cities in L.A. county.
The major distinction that impacts most of the above determinants is the concentration of wealth on the Westside over the last ten to fifteen years. More people can choose to live close to the ocean, in less congested areas where the air quality and climate are better. As an example, we are seeing more people buy the house next door, rather than move. They can have larger yards with a guesthouse and pool. Every time this occurs there is one fewer home in the local housing pool further driving up demand and prices. So, there you have it, whether intentional or not you have the good fortune of owning real estate in your current Westside neighborhood and you have invested in some of the most expensive real estate in the world!