It seems like just last week we were witness to a bidding war in Atwater Village, and here we are again, right down the street in Glassell Park. This 1,100-square-foot "mid-century modern"—with two bedrooms, two bathrooms, and a two-car garage—went to market for $660,000 back in January, a hundred thousand dollars higher than Zillow's highest estimated price (such guesses tend to be wonky anyway). Let's put aside the question of what qualifies a building as Mid-Century Modern and go to the sale, which closed this past weekend for ... $765,000.
What's more? The house last sold this past July for $350k, $20k below its asking price. So a deep-pocketed flipper bought the place on the cheap, spruced it up, and checked out six months later with a cool $400k profit (less what he put into it, of course).
This sale appears symptomatic of a larger trend in Northeast Los Angeles. In this house's 90065 zip code, average listing price per square foot has jumped 20 percent in two years, from $324 to $407.
It gets crazier—average sale price per square foot has climbed 26 percent in the same period, from $330 to $447.
The same trend is evident in 90042, which includes most of Highland Park and the southern edge of Eagle Rock. Average listing price and average sale price are both up 25 percent, from $321 to $426.
So not only are these properties being listed way higher than they were 24 months ago, but in certain areas (Glassell Park, western Highland Park), the market considers them undervalued by close to 10 percent.
Rising sales price is by no means a phenomenon exclusive to Northeast LA—sales price per square foot has jumped 28 percent in Beverly Hills (90210), and 30 percent in Santa Monica (90401) during the same periods. But these NELA 'hoods caught on in part because they were cheap, and those days seem to be long gone. —Ian Grant
· 3651 Roderick Rd [Redfin]
· Rental Bidding Wars Are Now Breaking Out in Atwater Village [Curbed LA]