Housing prices are rising in Los Angeles County, but most homes still aren’t worth as much as they were before the recession hit, according to a new report from real estate data and listings website Trulia.
Trulia compared the estimated values of homes as of March 1 to the peak estimated value of those houses before December 1, 2007, which it counted as the beginning of the recession. It found that just over one-third—or 37 percent—of homes countywide surpassed their pre-recession values. (That’s just above the national average of 34.2 percent.)
The report also breaks down recovery data by zip code, revealing where values peaked and where they still have a long way to go to “recover.” Trulia considered a home to have recovered if its value now exceeds its pre-recession peak.
In Culver City (zip code 90232), for example, 100 percent of all homes have recovered, while in North Hollywood (zip code 91606), that figure is just 17 percent.
Homeowners whose properties haven’t recaptured their precession values should consider holding on, Geoff McIntosh, president of the California Association of Realtors, told KPCC. He predicts housing prices will keep climbing, because there’s not enough supply and “a lot of pent-up demand.”
But KPCC also spoke with Trulia Chief Economist Ralph McLaughlin, and he said that because modest recovery rates around LA are linked to slow income growth, “prices can’t rise that much faster.”
“At some point, people won’t be able to afford those homes," he said.