NEWS — Vancans Group | Los Angeles Real Estate

LA's Most Expensive and Least Expensive Neighborhoods

Navigating the real estate landscape in Los Angeles can be quite the venture, especially when it comes to finding the most upscale neighborhoods.  A recent study by American Home Field delves into the realm of property prices per square foot, shedding light on the crème de la crème of LA's residential areas.

The illustrious Bel Air, an ultra-exclusive gated community, claims the top spot, boasting an average property cost of $1,318 per square foot.  On the flip side, the South Park neighborhood emerges as the least expensive in Los Angeles, with an average square foot cost of $419. 

Most Expensive LA Neighborhoods (per sq ft)

  1. Bel Air: $1,138

  2. Beverly Crest: $1,310

  3. Venice: $1,213

  4. Hollywood Hills West: $1,209

  5. Cheviot Hills: $1,145

Least Expensive LA Neighborhoods (per sq ft)

  1. South Park: $419

  2. Historic South Central: $425

  3. Central Alameda: $427

  4. Pico-Union: $453

  5. Vermont Knolls: $456

My Top Picks for Appreciation in 2024 for First-Time Home Buyers

  1. East San Fernando Valley 

  2. Northeast LA

  3. The Eastside

  4. Glendale

  5. Altadena

What to look for when finding the next hot neighborhood?

Los Angeles is a sprawling labyrinth of neighborhoods and cities.  I'm commonly asked, "Will the market appreciate in LA this year?" It's akin to asking about the nationwide real estate trends in America. LA mirrors the diversity of the entire country, featuring a broad spectrum of price points, property types, and regions, each experiencing appreciation in distinct ways.

Within every neighborhood, there are standout streets and exclusive pockets that command higher premiums than others. The key is strategic buying, enabling you to ride the wave of appreciation as different neighborhoods transform. 

There's no magic formula to pinpoint the next 'Hot Neighborhood.'  While stats and analytics offer insights, I delve deeper, observing shifts in demographics, the rise of trendy spots, and the surge in houses being flipped. 

LA is a dynamic landscape in constant flux, and my recommendations for the next hot spot evolve over time with the city's transformation.  Remember, LA is still a relatively young city, and I'm thrilled to witness its ongoing metamorphosis.  Invest wisely, and the city rewards you with appreciation like no other in the U.S.!

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6 Data-Backed Real Estate Predictions for 2024

2024 brings a mixed bag of real estate predictions, and as a potential homebuyer or seller, it's crucial to stay informed.   Affordability remains the main concern as homebuyers look at ways to keep their mortgage payments down through house hacking and buying fixers.  According to Zillow, here's a concise breakdown of what to expect.
 

1. Inventory Improves in Specific Markets

  • Economists anticipate improvement in inventory, countering past shocks.

  • Life events are a driving force for moves.

  • Expect (slightly) more choices for buyers and increased sales volume.

2. Stabilization of Home Buying Costs

  • Affordability remains a concern, but Zillow predicts home values to hold steady with a minimal national decline.

  • Mortgage rates are expected to remain steady, potentially leading to a leveling off of home buying costs.  The Fed has signaled potential rate cuts later in the year.

  • Wage growth offers a silver lining, reducing the share of income spent on mortgages.

3. Opting Out in Expensive Markets

  • Affordability challenges may lead to delayed home purchases in expensive markets.

  • Single-family home rentals become attractive alternatives, meeting the demand for amenities and privacy.

  • Homeowners may become landlords, increasing the availability of single-family homes for rent.

4. The Rise of "House Hacking"

  • Millennials and Gen Z prioritize the opportunity to generate income from their homes.

  • "House hacking" gains popularity, with a significant percentage of younger buyers viewing rental income as crucial for homeownership dreams.

  • YouTube searches for "house hacking" hit a peak, reflecting the growing interest in this trend.

  • Check out my VIDEO on what "house hacking" is.  Be very aware of local regulations on short and long-term rentals before considering this strategy.  

  • Many cities don't allow ADUs for short-term rentals.

5. Competition for Fixer-Uppers

  • Limited inventory leads to a willingness to overlook flaws in homes.

  • Buyers seek sweat equity, competing with flippers for fixer-uppers.

  • Despite higher costs, the demand for these properties remains strong.

6. Downtown Rental Rebound

  • Suburban rents outpacing urban rents, but a rebound is expected in downtown areas.

  • Proximity to office hubs and post-pandemic amenities drive rental demand in urban markets.

  • A surge in multifamily construction in 2023 provides renters with more options and potential concessions from landlords.

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Home Sales Rise at the Fastest Pace in 2 Years

According to Redfin in December, pending home sales surged by a whopping 4%, marking the most significant jump in over two years.   Homebuyers emerged in full force, lured by the largest monthly decline in mortgage rates since 2008. 

Sellers joined the action, though not as aggressively, with new listings rising by 0.1%—reaching the highest level since September 2022.  Prices experienced a remarkable 4% spike, the most significant increase in over a year, as buyers engaged in fierce competition for the still-limited pool of available homes.

I’m seeing increased bidding wars in certain areas as prospective buyers, initially browsing during higher rate periods, are now getting serious about making their move. I recently attended an open house last weekend, and the line out the door brought back memories of the pandemic days with 20 to 30 offers! This is just the beginning of a wave of pent-up buyer demand flooding back into the market.

Ready to make your move in the real estate market? Shoot me an email or text if you're a buyer and want to discuss the first steps.  If you’re a seller, inventory remains low and now is a great time to put a plan in place for the Spring selling season.  

Check out my short 90-second VIDEO reviewing this topic. 

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Where Are Interest Rates Heading for 2024? 🏡

Where are interest rates going in 2024?   Rumors are floating that rates should be coming down which could open up doors for a lot of buyers that have been sitting on the sidelines.

Let’s take a look at 2023.  What a wild ride it was.  We started with rates in the low 6’s and ended up hitting 8% this past fall.  We saw a nice tumble of rates leading into the end of the year and currently are sitting just below 7%.

So if you’re a buyer and you’re waiting for rates to come down or house prices to drop, I would re-evaluate your strategy.  Here in Los Angeles, we still have an inventory shortage and I don’t anticipate that changing anytime soon.  Also as rates come down it will only mean a wave of competition and bidding wars.   This will propel home prices up even more.  

I get it house prices are high and interest rates are high.  If you’re a buyer and feel stuck in this situation, please send me a private message so we can explore all of your options and come up with the best strategy for you to buy a home!  

The market is moving at all times.  If you’re a buyer, seller or investor please call me with any questions!  I have my pulse on the market with what’s happening today.  Headlines are yesterday’s news.

#losangelesrealestate #losangeles #losangelesrealtor #losangelesrealestateagent #agentsofcompass #compasscalifornia #losangeleshousingmarket #LArealtor #vancansgroup


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The Mortgage News We’ve All Been Waiting For! 🏡

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Interest Rates Are Finally Coming Down

In October, interest rates peaked around 8%.  As of today the 30 year fixed mortgage is hovering around 6.64%.  According to Business Insider mortgage rates are falling at their fastest pace since 2008.  

As a buyer this is much needed relief as affordability has been strained for some time now.   CNBC reports that the Fed is projected to cut rates 3 more times in 2024.  Inflation has eased and the stock market is roaring to new highs.    

As buyers start to digest this news we should see more and more buyers enter the market.  In 2024, I predict a wave of pent up buyers to re-enter the market.  This will bring back a lot of competition in the market.   I also expect a slight bump in inventory.  There's also a lot of sellers that have been locked into their homes with interest rates in the 2's and 3's.  Sellers will begin to digest that selling in 2024 and picking up a new mortgage in the 5's and 6's is a lot easier to digest.  
 

So What Does This Mean For 2024?
  • More Buyers and more sellers.
  • Buyer demand will outweigh any inventory bump.
  • Buyer demand will be slower in the first half of the year as buyers will remain cautious.  Buyer demand will increase as interest rates go lower.
  • Appreciation in the Los Angeles Market for 2024 as a whole will increase.   Some neighborhoods and price points will decline.  

How to Strategize
  • As a buyer, I don't recommend trying to time the market with interest rates.  Get out there sooner than later as it will be harder and harder to land a home as the year progresses.  Look for homes that are overpriced and sitting on the market with bad photos.  The light cosmetic fixer is where the deals are right now.  Let's hop on a call to discuss best lenders and negotiation tactics!  There are deals out there right now that will appreciate this coming year.
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  • As a seller, inventory is still historically low but it's still a whacky market.  Pricing and the marketing of your home is more important than ever.  I'm seeing great homes sit on the market due to poor pricing strategies, low quality marketing images and no preparation.  Sellers should paint, do minor upgrades and stage their homes.   Check out our concierge services.  We front you money up front to remodel your home, no fees or questions asked.  It's money in your bank to spend as you like!
Concierge Services

Happy Holidays!

Interested in buying or selling now or in the future? Maybe you're just curious about the process?  Let's hop on a CALL when the time is right for you!  I'm a no pressure agent.
 
Jeremiah Vancans
Real Estate Agent
Vancans Group | Compass
jeremiah@vancansgroup.com
vancansgroup.com
310-363-1416
DRE: 01944484
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Just Listed in Silverlake Area for under $1M

1179 N Madison Just Listed marketingcenter--
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The Four Pillars of Selling a Home: Inside the Process

We were able to secure 12 offers and sell this home for $350k over list price.

1701 N Avenue 56

3 bed / 2 bath / 1578 sf
Listed for $1,275,000
Sold for $1,625,000

INTRO

Selling a home can be an overwhelming and emotional process. There are a lot of factors that go into determining the price and finding the right buyer. But with the right mindset, strategy, and execution, you can sell your home for a great price and fast. In this article, we will focus on the four pillars of listing a home: pricing, preparation, marketing, and negotiation.



PRICING

The first pillar, pricing, is one of the most important aspects of selling a home. When pricing a home, it's essential to strike the right balance between profitability and attractiveness to potential buyers. You don't want to price too high and discourage buyers, nor do you want to price too low and lose out on potential profits. The key is to find comparable homes in your area and price your house accordingly. Thus, it stands out to prospective buyers. You want your home to look like a bargain compared to similar homes that have recently sold.



PREPARATION

The second pillar is preparation. Before putting your home on the market, make sure it is in the best possible condition. This includes decluttering, minor renovations, painting, and staging. You want to show your home in the best possible way hence, impress the buyers. Your goal should be to paint a picture of what type of homeownership experience the buyer can have in this space.



MARKETING

The third pillar is an important one which is marketing. Once you've set your price and have prepared your home to showcase, you need to make it known. You'll want to take high-quality pictures of your home as well as a video that showcases the house and its surrounding neighborhood. A multi-channel marketing strategy (online and offline) will allow you to reach a larger audience including social media, flyers, print ads, email blasts, and local publications. Paid ads (Google PPC, Instagram, Facebook, and YouTube) are also effective in generating traffic and interest.

  • VIDEO - Shoot a professional video, use drones and shoot footage of the house as well as the surrounding neighborhood that spotlights the lifestyle in this area.


  • FLOOR PLANS - Studies show that 51% of buyers say that floor plans were helpful in their decision making process. 1 in 5 buyers will pass on listings online if they don’t have a floor plan. 1 in 10 buyers won’t even arrange a showing without seeing a floor plan.



  • REDFIN HOT HOME - I always aim to make my listings Hot Homes on Redfin. It’s 80% more likely for a hot home to sell in the first two weeks of listing. It comes down to pricing it right and getting the right amount of views and saves for the Redfin Algorithm to tag as a hot home

  • ZILLOW SAVES - Zillow Saves is a key performance indicator on how well your listing is being perceived online. I shoot for a 10% views-to-saves ratio. In my experience, homes with 10% saves tend to sell faster and significantly higher than list price.

  • PAID ADS - I always have a budget set aside for paid advertisements online. By targeting buyers on Instagram, Facebook and Google, I’m able to attract a wider audience of dormant buyers. These are buyers that may not be actiively looking on real estate sites but will still consider buying if “the right one comes along”.

  • FLYERS - We passed out 1000 high-quality flyers to the neighborhood prior to our open houses. Sometimes a neighbor knows someone who wants to move into their neighborhood.


NEGOTIATION

The fourth and final pillar of the listing process is negotiation. In some ways, this pillar is an umbrella of all that has come before it. A top negotiator plans ahead, keeps their cool under pressure, listens intently, communicates effectively, and knows what they can and cannot concede. At this point, as all the other steps have been completed, the house is no longer yours but you want to ensure it sells at the highest rate that is possible under the current market conditions.




CONCLUSION

Selling a home is ultimately a combination of planning, strategy, and execution. By keeping in mind the four pillars of listing a home: pricing, preparation, marketing, and negotiation you are well on your way to selling your home effectively. Remember, there are loads of other good buyers out there so you need to take action and make sure your home stands out. By following these guidelines, your home will be set up to sell for a better price and relatively quickly.

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Just Listed in Highland Park for $1,275,000

N Avenue 56 VG blog post marketingcenter--
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Just Listed - Magnolia Park Mid Century

Copy of San Fernando Open House marketingcenter--
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The 17 Offer Home

Let's visit my friend's who bought this incredible Highland Park compound. This house ended up receiving 17 offers. We had to get aggressive with our terms in order to land this one-of-a-kind property. This involved removing some contingencies and being able to close quickly. It takes an excellent and dependable lender to really make offers like this work.

List Price: $1.1M

Offer Price: $1.363M

We offered $363k over list price to land this one in 2021. This house last sold in 2011 for $479k. I wonder what will it be worth in 2031?

#highlandpark #90042 #realestateagent #realtor #hgtv #firsttimehomebuyer #northeastla #vancansgroup #compass #compasscalifornia

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