New price heights for L.A. area homes

I know, I know -- this blog is getting to be just a news clipping service.  But bear with me for yet another article from yesterday's L.A. Times by Andrew Khouri.  Here's the link.  The title is "Home prices in Southern California reach bubble-era highs." Among the other data points is this: L.A. County home prices have risen 9.5% this year to $505,000, which is $25,000 higher than the highest 2007 pre-recession price.  The article also states that economists aren't as worried this time around, since the rise is not driven by risky loans.  Instead, it is driven by an improving economy, historically low interest rates and a shortage of homes for sale.

Do I see prices getting soft and perhaps even dropping a little? Not in the foreseeable future.  I predict another rise in prices in the Spring.  I wish I could foresee more affordability instead.
Photo courtesy of  Brian Chan/Los Angeles Times

Another home sale record

Fleur-de-Lys in Holmby Hills (pictured above) sold this week for a record $120,000,000.  This is the highest sale ever recorded in California.  Here on the (cough) other side of town, 848 N. Avon in Burbank has sold and it broke records, too, at least for me.

This Magnolia Park home got eleven offers in 7 days.  Only a couple offers were at asking price.  Only one was below asking price, and everything else was above list. Three were all cash (but the seller chose buyers who got a loan. More about that below.).  The record-breaker here was that everybody was wonderfully qualified.  There were only a couple down payments below 30% and everybody had high FICOs.

Also, seller Todd got some great letters from the prospective buyers.  One couple even put together a charming video. 

Next, the house was priced at $675,000, which was in line with comparable sales and other factors.  However, it sold for $726,500.  Yes, that’s $51,500 over the asking price.  Did it appraise? Not sure, but the “finalists” were all willing to bring in money to close the gap if it didn’t appraise to value.

Third, we had 213 people at the open house and almost all seemed to be serious buyers.  I usually get quite a turn-out at my open houses, but this was a record for me.

Fourth, it was a three-week escrow.  This is due to the incredible Mark Young and his staff at Prospect Mortgage, and also the courtesy of the buyers.

The escrow process went very well.  The buyers and their wonderful agent, Robert Louis, were completely terrific throughout.  But the most terrific of all was my seller, Todd.   He staged the home beautifully – it doesn’t hurt that he is an art director – and really was extremely thoughtful in picking the buyers from the great offers we had.  Todd did want the highest dollar, of course, and the finalists were so, so close to each other in numbers.  But he also wanted a family that would really make the house a home and love it like he did.  Good on ya, Todd.  Here’s wishing the best of luck to both Todd and buyers Robin and Jay.