What is a Home Worth? An Update on the Local Real Estate Market in Northeast Los Angeles

By: Tracy King Realty   06/07/2014
Keywords: Estate, real

According to Corelogic’s National Foreclosure Report, foreclosure inventory is down nationwide and by almost 20% on a year-over-year basis.

What difference does this make to the value of your home, you ask? As the number of homes in distress goes down, the price of homes selling in your neighborhood is more likely to go up. This is one important piece of the housing recovery puzzle.

At the same time, buyers today are very well educated about the local real estate market. Did you know that you can find out what properties are in some stage of the foreclosure process on Zillow.com for free? As with many facts today, this raw information can lead people to some flawed conclusions.

If you look at homes for sale in Eagle Rock, 90041, on Zillow, you see a number of homes in some form of distress -- 82, in fact. These homes are what is called Shadow Inventory (properties that are in some stage of mortgage default.) Since there are only 17 properties currently for sale in 90041, this would seem to indicate that the Shadow Inventory is 4 times the current inventory. Doomsayers might say this means that if all or most of the shadow inventory came onto the market at the same time, it would have the effect of flooding the market with distress sales and would bring prices down. Therefore, they conclude, prices are depressed in Eagle Rock.

That’s kind of like saying if everyone who came to a traffic light suddenly decided to run the red light, we would have a whole lot of accidents and insurance rates would go up. Probably true, if that happened, but the idea of everyone losing their minds at the same moment is unlikely. The likelihood of all or even 10 of the 82 distressed properties coming on the market at the same time is also practically non-existent.

This valuable tool on Zillow can be applied to any neighborhood or city in Los Angeles including real estate in Atwater Village or homes for sale in Pasadena, Glendale and most other booming areas.

But some people like to look at the worst possible outcome. Many buyers are hoping that the housing market will continue to be distressed so that they can still jump in and get “a deal.” Many of these same buyers have been looking for a home off and on for several years and have passed up many “deals.” I have talked to a few of these people and many of their friends who have discussed how Joe Smith should have bought that cute little house on XYZ street last year when he had the chance because now he is going to have to settle for a much smaller house for the same money.

It is very difficult to know how much a home is “worth,” especially when you are a buyer in a multiple offer situation. It’s almost as difficult when you are the only buyer about to make an offer on a house. But ponder this: what would you be thinking about the deal you made on a house if you bought it 2 or 3 years ago?

Too much information can be a bad thing. If you are expecting all this Shadow Inventory to give you the opportunity to get a great deal on a house, you're going to be waiting awhile. The reality of today's real estate market, at least in Eagle Rock, Highland Park, and the surrounding neighborhoods, is that there is low inventory available to buy, there are multiple offers on most homes, and sales prices are typically going over the asking price. Yes, even that house that you think needs a new kitchen is getting multiple offers - because there are buyers who realize that they want to buy a house now, and the longer they wait, the less house they can buy.

Keywords: Estate, real

Contact Tracy King Realty

Email

Print this page

Other news and updates from Tracy King Realty

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


03/16/2016

Glassell Park: An Up and Coming Real Estate Market

Glassell Park is a charming community sandwiched in the middle of Northeast Los Angeles between several other neighborhoods that have


02/15/2016

Simple ways to Update Your Northeast Los Angeles Home for Sale

For artsy and “hot” market neighborhoods like Highland Park, Eagle Rock and Mt. Washington, buyers expect a lot. Updating a


02/12/2016

Selling Your Pasadena, CA Home? Stage it Like a Pro.

Homes in Pasadena, CA never go out of style. Pasadena real estate is always a hot commodity. Why? For many