This is crazy, but I've heard more homeowners and renters wish for a bubble lately. Yes, even homeowners. (Note: these are the same folks who bought in the crash and will do it again every time--I know I would).
When things crashed, there were many jumping ship, and just as many were clamoring to scoop up one, two or more properties. It sounds like crazy speculation but really, it's logic. These same properties at the crash were selling for crazy low prices such as $200-400k. Previously they sold for double those numbers. When you know that demand for these homes were there at double the price, why wouldn't you buy that property when it's half the price?
That's the past, and with no real bubble in sight for the next 2-3 years, prices are high. Some say it's unsustainably high, but that's all relative. Our friends in NY and London and SF are laughing at LA prices because they are so "low." In fact, folks from these cities are buying a second home in LA.
So what hope is there when inventory is low and prices are high and you want an investment property or a first home because renting sucks?
Two things:
1. You have to take advantage of the still very low interest rates
2. You have to give up the fantasy of buying a 3+2 in Silverlake or a 2000sf loft in DTLA for $600k.
Hot areas that are half dumpy but cleaning up:
1. Frogtown
2. Atwater Village
3. Glassell Park
4. El Sereno
5. West Adams
6. Leimert Park
7. Lincoln Heights
8. Garvanza
9. Hermon
Areas that people say are hot but will probably take 10+ years to see ROI:
1. Boyle Heights
2. East LA
3. Inglewood
4. Compton
5. Cypress Park (Some parts)
Areas that are so hot, it's over:
1. Echo Park
2. Mt. Washington
3. Montecito Heights
4. Highland Park
