price increases

There are currently 35 blog entries related to this category.

The LA Times on Wednesday was all raves about LA-area real estate markets where prices have now surpassed their previous bubble-era heights. (See the Times story here.) Money quote:

Across the region, home prices remain far below their peaks despite an explosive run-up in the first half of 2013. But nominal prices in some affluent neighborhoods have entered uncharted waters.... Sales have tumbled overall, but they continue to climb in wealthy communities.

That sounded familiar, until we got deeper into the story – and Manhattan Beach got no mention at all.

Which cities made the cut?

Arcadia. Mar Vista. Temple City. Irvine. (Pictured.) And 8 more.

Only Venice popped off the page as a coastal market widely known to be hot. The buzz around "Silicon…

Are we in one of those markets now?

Twice recently we've seen listings raise their prices and make deals shortly thereafter.

First we saw this happen at 438 S. Meadows, a big Mediterranean (well, they say "Spanish") that sold this week for $2.595M.

This one listed in October 2013 for $2.500M and had a deal within about 6 weeks.

But that deal stayed in "backup offer" status for months, meaning the sellers were soliciting new offers just in case the first one didn't pan out.

Come February, the property officially came back on market. This is a solid, newer house, so we inferred that it was probably not a problem with the property, but with the buyers – perhaps a contingency for selling their own property did not pan out. (We've not tried to pry into the…

This year is full of stories of short-term holds resold for a profit. It's a classic rising-market (bubble?) phenomenon.

One of the boldest is the newest listing to hit the market, 88 Manhattan Ave.

This is a 3br/4ba, 2150 sq. ft. detached TH with a mid-90s build date and much more recent updates that gave it a modern feel.

This one traded back in May 2012 for $1.925M, and is back now offered to the public at $2.650M. That's a markup of $725K and 38% over the acquisition price about 18 months ago.

Interestingly, the same property was offered three times during the slow years of 2009-2011 at prices ranging from $1.899M down to $1.799M. It never could sell. The 2012 sale was arranged off-market.

What matters, of course, is not the history, but the current…

We're starting to see quite a few homes bought and put up for resale within the year. It may not always be profiteering or a fix-and-flip situation, but quick resales are benefiting from the quick uptick in prices in MB.

Ordinarily, if you were to buy a property to remodel and resell, you'd need to get it close to, or under, market price, do the work and resell at such a price as to mark a solid profit. Indeed, some say the profit is all made in the acquisition price.

Then there's 309 18th St.

Not so long ago, this Spring, 309 18th drew multiple bidders, finding one who just cleared the field with a monster offer.

To wipe out the competition, the buyers paid $2.459M in March, against an asking price of $2.099M. That was an overbid of $360K (+17%).

And this…