Housing Prices in Los Angeles

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Just to put housing prices in Los Angeles in perspective, we bought our small 1000 sq foot town house condo a year and a half ago. I just found out this week that our neighbors sold their comparable unit for 30% more than we paid for ours. It boggles my mind.

Of course, the urge is to cash in on the place, but then what? We love it in Los Angeles so we’re not ready to leave to cheaper pastures. Even with the equity we have, we still wouldn’t be able to afford a nicer place than we have unless we move out to the boondocks. Not to mention that rent on a unit like ours is more than we are paying in monthly mortgage fees. Instead, we plan to continue riding the housing wave and hope that if the bubble bursts (which I hope it doesn’t), it won’t burst 30%.

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7 responses

  1. Avatar for vern
    vern September 26th, 2005

    I resent that "boondocks" comment; you're equity would more than likely buy a house outright where I live, and I don't consider Phoenix to be "boondocks"...

  2. Avatar for Haacked
    Haacked September 26th, 2005

    Heh heh. By "Boondocks" I meant places like Temecula. Areas just outside of the greater Los Angeles area.

  3. Avatar for baus
    baus September 27th, 2005

    The way I look at it is that the equity provides a buffer if housing prices fall and you need to sell for some reason. The worst thing in the world is to owe more on your house then it is worth.

    In Tahoe we've seen 70+% in two years and probably close to 150% in 5. It is crazy. If some steam comes out of the market which is very possible in my opinion you will be safe.

  4. Avatar for Sergei Shelukhin
    Sergei Shelukhin September 27th, 2005

    Dude, you haven't been to Moscow :)

    I moved to this one bedroom flat and I have papers for it, it was bought for ~$18500 years ago.

    It's $50000 now, and local sources say housing prices here are about to rise once again.

    From my ex-gf's experience, a year ago you could rent a one room flat for $150/month easily, now you are lucky if you find one for $300.

  5. Avatar for vern
    vern September 27th, 2005

    Temecula? Damn! That would be one HELL of a drive! My brother lives in Temecula, and he has a 1.5-2 hour commute to San Diego! I can'e imagine trying to go north!

    Besides, Temecula isn't too great a place to buy anyway; they have PLENTY of restrictions, and with the casino right there, the property values are going to be in a constant state of flux for years to come, and never when you are ready.

    Not too sure where in LA you need to be, but have you considered out 14? Acton is boondock-ish, but has great prices (last I checked) and is close enough to Valencia to make it tolerable.

  6. Avatar for Haacked
    Haacked September 27th, 2005

    Well considering I work from my house, it wouldn't be much of a drive...for me. My wife would hate it because she works downtown.


  7. Avatar for jj
    jj May 5th, 2007

    I bought a condo in the valley and it went up 30% in a year and a half... but like you said, if you sell then what do you do ?