Comments on: Real Homes of Genius: Santa Monica 735 square foot home for $649,000. And they say the housing bubble is over? Figuring out real estate values by looking at comparable lease rates. http://www.doctorhousingbubble.com/santa-monica-housing-rent-buy-price-metrics-valuing-real-estate-in-westside-los-angeles/ How I Learned to Love Southern California and Forget the Housing Bubble Thu, 09 Feb 2012 03:22:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Nameless is wrong http://www.doctorhousingbubble.com/santa-monica-housing-rent-buy-price-metrics-valuing-real-estate-in-westside-los-angeles/#comment-86580 Nameless is wrong Wed, 20 Apr 2011 00:10:11 +0000 http://www.doctorhousingbubble.com/?p=3236#comment-86580 Property taxes and maintenance will erase that "savings" real fast. Also, assuming someone has 130K cash to put down on a house just because their annual income is 170k is ridiculous. Most of their income is probably being eaten by the enormous rent they are paying to live somewhere nice before trying to buy. Property taxes and maintenance will erase that “savings” real fast. Also, assuming someone has 130K cash to put down on a house just because their annual income is 170k is ridiculous. Most of their income is probably being eaten by the enormous rent they are paying to live somewhere nice before trying to buy.

]]> By: Mario http://www.doctorhousingbubble.com/santa-monica-housing-rent-buy-price-metrics-valuing-real-estate-in-westside-los-angeles/#comment-49622 Mario Fri, 04 Jun 2010 23:09:41 +0000 http://www.doctorhousingbubble.com/?p=3236#comment-49622 We are seeking a three bed room one and a half bath home with around 6,500 sq ft of lot and at least 1600 sq ft house. Preferrably in the sunset district. Any suggestions? Anywhere between cloverfield and 27th. Pico and ocean park. We are seeking a three bed room one and a half bath home with around 6,500 sq ft of lot and at least 1600 sq ft house. Preferrably in the sunset district. Any suggestions? Anywhere between cloverfield and 27th. Pico and ocean park.

]]> By: LAer http://www.doctorhousingbubble.com/santa-monica-housing-rent-buy-price-metrics-valuing-real-estate-in-westside-los-angeles/#comment-48661 LAer Mon, 03 May 2010 08:06:15 +0000 http://www.doctorhousingbubble.com/?p=3236#comment-48661 @nicole - I feel your pain. I lived on the WS for years and not only saw purchase prices but also rents going up incredibly. Here's my take on it - trustfunders and kept men and women buy up properties irrespective of price. Most property owners in LA have owned for decades and can since their properties are paid off, can price at whatever they want to price at since they don't feel they are losing anything. I moved away from LA and last year tried to move back, only to find that even with 12% unemployment, purchase AND rental prices were still sky-high, even higher than classic bubble eras 2007 and 2008 (it was still a massive bubble in 08 in LA). I really don't know how these prices can continue down there. Overall housing inventory is way up do to unused buildings being converted to condos and smaller apartment buildings torn down and replaced with huge multiunit buildings. I also know people who bought before 2002 in nice areas of LA and they all bought for $250K - $500K (the $500K was Bev Hills). Nice houses, not brand new but with that old LA Spanish-style charm. SInce central LA prices were higher to begin with, most properties were probably done with ARM and Alt-A's. You will see those foreclosing this year and into the next two or three years. Coupled with high unemployment in LA and with many businesses leaving LA, you will start to see prices coming down in that timeframe. If you find you are not able to buy in Santa Monica, there are a lot of other really nice parts of LA that you could consider. I know a lot of people on these boards have some snobbery about non-Santa Monica parts of LA, but in reality, almost everything from the beach to downtown and between the hills and the 10 is gentrified to the hilt - nice areas abound! Hell, even the Valley has some nice tree-lined suburbia if that's what you're looking for. I just hope you don't get caught up in "Ineedahousenow" syndrome. I know plenty of couples who did that and are paying $5000/month mortgage to live in a 2/2 in a marginal neighborhood. Be good to yourself and just don't do what they did. One more thing, Santa Monica might have some well-heeled Asian buyers but I really doubt it's a driving force in the market. My family is from Asia and when they think of buying "prestige properties" in the USA they tend toward the McMansiony Newport Beach type and not the quaint Santa Monica small lot, charming house type. @nicole – I feel your pain. I lived on the WS for years and not only saw purchase prices but also rents going up incredibly. Here’s my take on it – trustfunders and kept men and women buy up properties irrespective of price. Most property owners in LA have owned for decades and can since their properties are paid off, can price at whatever they want to price at since they don’t feel they are losing anything. I moved away from LA and last year tried to move back, only to find that even with 12% unemployment, purchase AND rental prices were still sky-high, even higher than classic bubble eras 2007 and 2008 (it was still a massive bubble in 08 in LA).

I really don’t know how these prices can continue down there. Overall housing inventory is way up do to unused buildings being converted to condos and smaller apartment buildings torn down and replaced with huge multiunit buildings.

I also know people who bought before 2002 in nice areas of LA and they all bought for $250K – $500K (the $500K was Bev Hills). Nice houses, not brand new but with that old LA Spanish-style charm.

SInce central LA prices were higher to begin with, most properties were probably done with ARM and Alt-A’s. You will see those foreclosing this year and into the next two or three years. Coupled with high unemployment in LA and with many businesses leaving LA, you will start to see prices coming down in that timeframe.

If you find you are not able to buy in Santa Monica, there are a lot of other really nice parts of LA that you could consider. I know a lot of people on these boards have some snobbery about non-Santa Monica parts of LA, but in reality, almost everything from the beach to downtown and between the hills and the 10 is gentrified to the hilt – nice areas abound! Hell, even the Valley has some nice tree-lined suburbia if that’s what you’re looking for. I just hope you don’t get caught up in “Ineedahousenow” syndrome. I know plenty of couples who did that and are paying $5000/month mortgage to live in a 2/2 in a marginal neighborhood. Be good to yourself and just don’t do what they did.

One more thing, Santa Monica might have some well-heeled Asian buyers but I really doubt it’s a driving force in the market. My family is from Asia and when they think of buying “prestige properties” in the USA they tend toward the McMansiony Newport Beach type and not the quaint Santa Monica small lot, charming house type.

]]> By: Steve Sailer http://www.doctorhousingbubble.com/santa-monica-housing-rent-buy-price-metrics-valuing-real-estate-in-westside-los-angeles/#comment-48512 Steve Sailer Sun, 02 May 2010 12:18:14 +0000 http://www.doctorhousingbubble.com/?p=3236#comment-48512 Thanks D1 Thanks D1

]]> By: jrs http://www.doctorhousingbubble.com/santa-monica-housing-rent-buy-price-metrics-valuing-real-estate-in-westside-los-angeles/#comment-48476 jrs Sun, 02 May 2010 06:55:53 +0000 http://www.doctorhousingbubble.com/?p=3236#comment-48476 "I don’t recall reading in my history books that USSR sufferred from terrific schools, great restaurants and shopping, high value houses, vibrant tourism, wonderful climate, etc. " On the other hand at least the USSR might have been affordable ... “I don’t recall reading in my history books that USSR sufferred from terrific schools, great restaurants and shopping, high value houses, vibrant tourism, wonderful climate, etc. ”

On the other hand at least the USSR might have been affordable …

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