In several SoCal neighborhoods, housing prices have rocketed past even the ludicrous heights of the housing bubble days, like the economic crisis never even touched them, says the LA Times. (LA County rents surpassed pre-recession highs quite a while ago.) As the short supply of lower-priced housing dwindles, some areas are more expensive than ever—no surprise, many are in the San Gabriel Valley, where overseas (often cash) buyers are ubiquitous, and most of the rest are in the Westside tech zone, where even a crappy little shack has the stones to ask millions. Since there are pretty much only high-priced houses for sale, the upswing mostly affects that high end, but it could still have a larger effect throughout Los Angeles: "As buyers get priced out of prime areas, they may look to adjacent neighborhoods — juicing demand there and pushing up prices." So where exactly are these robust, increasingly pricey neighborhoods that you probably can't afford?
The most dramatic increases were noted in already-upscale neighborhoods, especially those where international buyers dominate the market, seeking either a place to live or a solid investment. In Arcadia's 91007, last quarter's median sale price for an existing house (a staggering $1.33 million) was 30.5 percent higher than it was at its previous bubble peak in 2007. In nearby 91006, prices were 23.7 percent higher. In the Arcadia-adjacent, traditionally middle- and working-class Walnut and Temple City, and in sections of San Gabriel and East San Gabriel, housing prices have also soared beyond their bubble peaks, though not as dramatically. (Maybe the "spillover" is already in effect?) San Marino, which has always been pricey, is also seeing higher-than-bubble sales prices.
In the Westside areas of Palms, Mar Vista, Culver City and Venice, the price jump is led by Venice, which had a median price in the fourth quarter of 2013 of $1.34 million; that's a 3 percent hike from mid-bubble highs. The outlier on the list was Los Feliz, but really, with awesome views and a good location for entertainment folk, the sharp upward trajectory there isn't that shocking.
· Housing prices surpass bubble peak in some Southland ZIP Codes [LAT]