Tech Companies Continue to Buy Up Playa Vista Retail Space
The Los Angeles Real Estate Market is ranked at the 10th hottest market in the US
(by Realtor.com)
Some of the others on the list are cities the size of Long Beach. Yuba, CA has a population under 100,000 for the entire county. Here’s the list. You be the judge.
- San Francisco, CA
- San Jose, CA
- Dallas, TX
- Vallejo, CA
- San Diego, CA
- Sacramento, CA
- Nashville, TN
- Stockton, CA
- Denver, CO
- Los Angeles, CA
- Santa Rosa, CA
- Oxnard, CA
- Palm Bay, FL
- Yuba City, CA
- Modesto, CA
- Detroit, MI
- Midland, TX
- Santa Cruz, CA
- Tampa, FL
- Fort Wayne, IN
Listings in these markets are viewed two to five times more often than the national average, and houses move 30 to 50 days more quickly than the rest of the U.S. They have also seen days on market drop by a combined average of 7% year over year. – Realtor.com
The Los Angeles Market is very different East of La Brea and different again East of the 101, and so forth. If we were to rank just the Westside of LA, it would undoubtedly be right at the top.
Since 2012, Los Angeles home prices have increased from a mean average of $350,000 to $637,000, which is above the 2007 high.
Homes are commonly selling before their first open house or during that first showing. The inventory is so low that just finding good properties is a test of stamina.
While economists commonly have a hard time agreeing on much, there doesn’t seem to be much debate over the current market climate on the Westside of LA, and in particular, Silicon Beach. There is a massive growth of the footprint of technology companies.
As an example, and also evidence that the trend will continue, Google has just purchased enough land and announced plans to lease enough office space to eventually house 6000 employees in Playa Vista. That would mean adding 6000 additional families needing residential space.
This is only a continuation of a two-decade trend. Tech companies love the synergy available in Los Angeles with the entertainment industry and dozens of major colleges and universities.
Will any of this momentum find a limit and another bust following the boom? All markets eventually find their top. Los Angeles real estate is famous for the cyclical pattern. The Los Angeles’s Westside market is unlikely to avoid it. However, each new boom generally finds a new crest many percentage points above the previous peak. Currently homes in the most prestigious neighborhoods are well above 2007 levels, but there are many homes that are just now hitting those numbers.
When you use a sophisticated mortgage counselor like Bill Rayman, he can help guide you to wise decisions based on your plans and your personal risk characteristics. Call Bill Rayman today to discuss your mortgage needs: 424.354.5325
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