I received an inquiry from a buyer who has been trying to buy a home for two years. They are in a very competitive price range, have made several offers, and have either lost out to higher offers or cash buyers.
LA Homebuyers continue to be disappointed. This is the reality of what it’s like to be a Los Angeles home buyer in a specific price range. Each community is different. In Glendale, Burbank, La Crescenta, Eagle Rock, and Altadena, anything under $750,000 is unbelievably competitive. The La Canada, Pasadena, South Pasadena, and Toluca Lake real estate market’s threshold is $1,500,000. Not to indicate that it is a buyer’s market in the more expensive price ranges because it’s not. It is a strong seller’s market, but “affordable” starter housing is anything but.
This buyer searched for listings on one of the real estate websites. Many of these sites have out-of-date information, but that’s another blog post. The listing seemed to be just what she was looking for: size, location, and price. I checked the MLS, which indicated the listing was in escrow. When I checked the property history in the MLS, it noted that the listing was input, and five minutes later, it was marked as a “backup offer” (meaning in escrow). I called the listing agent, who told me the buyer knew the seller; the buyer offered $35,000 over the asking price. The seller decided to sell to them rather than exposing the home to the market and perhaps getting more money.
LA Homebuyers who continue to be disappointed, take note: Unfortunately, it is a seller’s market, and the home seller can do what they want. And each home seller is different. In these competitive price ranges, expect to compete with 15 or more other buyers (often many more).