The Home Buyers' Real Estate Market Update for Northeast Los Angeles

By: Tracy King Realty   04/08/2014
Keywords: Estate, real

After almost vertical price increases beginning at the first of the year, summer has brought a small lull in the market. We are actually seeing a number of price reductions appearing all across our Los Angeles marketplace, including Northeast Los Angeles real estate (Eagle Rock, Highland Park, Echo Park) and the Westside (Santa Monica, West Los Angeles).

Why? As prices jumped up, more homeowners who had been waiting for the market to "recover" put their homes on the market and our inventory of homes for sale increased from breathtakingly low to just very low. This, coupled with an uptick in mortgage interest rates, caused buyers to step back and think. Properties that came on the market priced to take into account the expected price increase all of a sudden seemed a little overpriced. Only the very best properties are still going in crazy multiple offer bidding wars (best in this case can mean an incredibly well done or well located house, or incredible deal for a house.) Those homeowners who have less than the best are finding that they are not going to be swept along with the buyer stampede as they had hoped.

We are also seeing a couple of interesting trends in how escrows are going. There seems to be an uptick in the number of escrows falling out, and largely over some aspect of buyer remorse. I've heard from escrow officers that they are averaging 30% fallout in the escrows they have. Why? Buyers are hugely afraid of overpaying. At the same time, there is much less willingness on the part of the seller to put up with renegotiating the price over conditions that come up during the inspection period. There is also less and less tolerance for letting contingencies drag on past their due dates.

What to make of these trends? Buyers now have an opportunity to be a little more thoughtful about the home they purchase as long as they are willing to shop in the second tier of homes for sale (the best of the best still go for the most.) But once they go into escrow, buyers need to be more business-like in their behavior and keep up their end of the contract, or they might just be bounced out of escrow by a more business-like seller.

Keywords: Estate, real

Contact Tracy King Realty

Email

Print this page

Other news and updates from Tracy King Realty

12/27/2016

Highland Park, CA Homes and Real Estate - A Look at the Numbers

In Los Angeles real estate circles, everyone is talking about Highland Park. Like other Northeast LA neighborhoods like Silver Lake,


12/21/2016

Glassell Park Real Estate - What the Numbers Tell Us

Real estate in Glassell Park, a hillside neighborhood adjacent to red-hot Mt. Washington and Highland Park - is in high


12/21/2016

Altadena Real Estate - A Look at the Numbers

The real estate market in Altadena, CA is red hot. Homes for sale in Altadena command high prices and never


10/11/2016

Why Buying a Home in Glendale, CA is a Good Idea

Glendale is the third largest city in Los Angeles County. This suburb of the Greater Los Angeles Area is the


10/11/2016

Why Altadena, CA is a Great Place to Buy a Home

Altadena is a charming city located north of Pasadena, CA and south below the hills of the picturesque San Gabriel


09/28/2016

Highland Park: A Look at Real Estate and Architecture

To those monitoring real estate trends in Los Angeles, it’s no surprise at all to know that the NELA district


09/28/2016

Highland Park: The New Echo Park

Echo Park has the reputation of being one of the greatest neighborhoods in LA. It’s more affordable than Silver Lake,


09/28/2016

Glassell Park Real Estate: It's All About Spacious Contemporary Hillside Homes

Glassell Park is a hilly span of land in Northeast Los Angeles and several areas of NELA have been experiencing


07/22/2016

Los Angeles' Mt. Washington: A House Flippers Paradise

The Northeast Los Angeles community of Mt. Washington is one of LA’s hottest real estate markets. Homes for sale in


07/22/2016

Living Life in Historic Highland Park

The Los Angeles community of Highland Park is an in-demand community whose rich history lays the foreground for a unique


06/22/2016

Highland Park: Trendy for Real Estate and Dining

Los Angeles’ most exciting enclave is the chic, trend setting, artistic living Highland Park. And it isn’t just the rising


06/22/2016

Eagle Rock: Trendy for Real Estate and Dining

Eagle Rock is a popular neighborhood based in the hilly region of Northeast Los Angeles. Notarized by a giant rock


04/15/2016

Northeast LA Real Estate: It's All About the Views

Northeast Los Angeles represents one of the oldest areas of LA. But just because the neighborhoods in NELA are old


04/15/2016

Buying an Older Northeast LA Home? Inspections are Vital

Northeast Los Angeles represents one of the oldest areas of LA. But just because the neighborhoods in NELA are old


03/16/2016

Mt. Washington: One of LA's Hot Real Estate Neighborhoods in 2016

Let there be no mistake: Homes for sale in Mt. Washington, a hillside region of Northeast Los Angeles, are in