So I would like to know what people want to read about and talk about. Have you bought something already? In Santa Monica or elsewhere? Want to see more south side or north side properties?
I have read some commentary on Calculated Risk that the upcoming conforming jumbo loan limit reduction won't have much if any effect on the overall housing market. But I still think that may be a more important issue for pricey "entry level" westside areas such as 90405, Mar Vista, Culver City, etc. All those areas have a lot of houses in the $750-950k range. The loan limit decrease will force people to either put another $100k down or else take a true jumbo loan (with its higher rate and higher down payment requirements). I don't think this will have a huge impact but I think it may impact things on the margin.
90405, Mar Vista, Culver City... that is exactly where we are looking to buy in the next 6 months. I would love it if you would comment on this "entry level" market instead of the $2 million homes N of Montana. We will be using a UCLA MOP loan.
ReplyDeleteBut don't you know everyone on the westside pays all cash for $2mm+ homes!? Why care about anything else?
ReplyDeleteOk, kidding aside, what areas of Mar Vista and Culver City specifically? I am familiar with Culver City but not Mar Vista. Both areas seem to have major problems if you don't get really picky about location. In Culver City there is the fact that you can hear the freaking 405 freeway almost anywhere in the 90230 zip code (west of Overland). Lots of cute streets and starter houses but for $600k-$750k I am not willing to think about putting up with a constant freeway whoosh in the distance. However, 90230 is the zip code with the better elementary school...Once you get into 90232 you are closer to downtown Culver City but there has been very little on the market in that zip code and when something does come on they want $800k-$950k. Big premium to pay for the location and although you are still out of the LAUSD district, you are in the worse elementary school district but paying a higher property price. And for that kind of money it almost seems worth it to hold off and buy in 90405. So Culver City is tough but the right property at the right price seems to make sense.
Mar Vista...I don't know it too well but its southern location makes me think of all the damn traffic you have to navigate to get there. LAUSD so schools not great. If you are too far north then you have SM airport noise to deal with...there isn't really a downtown or anything to walk to. It isn't that "cheap" for what it is. Maybe I'm too negative. Give me some sample properties to look at.
90405 - Really lovely in some areas but very tricky because of so much traffic (11th, 14th, 20th, Pearl, etc). Then there are the damn jets taking off all the time. Ugh. To avoid all those things you are going to be paying north of $1mm so certainly pricey.
For all of these areas I can't help thinking that the conforming loan limit change will have an impact - especially in CC and Mar Vista.
What is a UCLA MOP loan?
Thank you for the thoughtful reply! We rent a small house in Venice now -- we deliberately chose to stay in LAUSD so our kid could go to a new LAUSD language immersion charter elementary school. The problem is middle school and high school -- important when thinking about buying a place, even though it seems a long way off.
ReplyDeleteA UCLA MOP loan is a subsidized faculty loan used for recruitment and retention in this expensive market. http://www.ucop.edu/olp/products.html
There are no fees or points, you can put only 10% down and do a 40 year loan if you want. It is a variable rate but always below market rate.
Mar Vista has a commercial strip along Venice Blvd which is gentrifying (Curious Palate, Venice Grind coffee shop) and a lively weekend farmer's market. We are mostly interested in it and Palms because it is more affordable than Venice, 90405, or downtown Culver City. Would love Ocean Park or Sunset Park but it's out of our league, as is most of Mar Vista hill (S and E of the airport). And I need to be near the 405 so I can commute to my job in the Valley.
We are very worried about getting in over our heads buying an $800k+ home. We are first time home buyers. Stable income and total job security and no debt -- but we are scared about losing our down payment instantly as house prices decline. We have held off buying (first thought about it in 2005)since the bubble market seemed crazy but are ready to settle down and have saved up a down payment.
I can't remember how much Westside Bubble covered Mar Vista but maybe search through some of his old posts. I still really can't speak for the area as I have not been through open houses there and I have not considered buying there personally. As for being worried about getting in over your head...it sounds like you have everything together and I would advise you to move ahead with purpose. Figure out what you can afford comfortably ahead of time and then discount a bit from there. Shit can always happen. But at this point if you have a proper down payment and a stable job then get out there and go to a ton of open houses and be patient and then buy something that suits you. If you don't mind a little 405 noise then I think the 90230 area of Culver City might work well since there is a decent amount of inventory and much of it just sits and keeps reducing price. Snag something. If you are going to live there for 5+ years then who cares if prices drop a little more?
ReplyDeleteWarChest you should cover the 90066 area which is true Mar Vista. I got my brother and his wife to buy a 2+2 1100 sq ft house north of Palms Blvd on Appleton Way 8 years ago for $382k and Realtors routinely knock on his door offering him $900k+. The best entry level west side area by far imo.
ReplyDeleteThere is also 90066 south of Venice, West of Centinela and North of Culver. It is farther behind Mar Vista in terms of transitioning, but it is generally safe and quiet and is improving and has plenty of room to go. The lots can be small and there will almost certainly be a semi-junked car or a shiteau within eye-sight, but there is slowly starting to be some new life in the area. Some streets feel like nothing has happened and nobody has moved since the 60's when everyone there worked for Hughes. Fixed houses are in the 6's to 8's, junkers in the 5's to 6's. Can walk to the theaters/restaurants/stores on Mindanao and Maxella. More hip restaurants/bars like Firepit, A-Frame and Alibi Room are in the area. Short is a decent elementary school, and there are two good charters nearby. Close to Venice but without the RV/junkie set. Good freeway access with the 90 and 405 close. Much easier access to Century City or Culver City than from SM. Easy LAX access anytime of day. Obviously not as cool as Venice or nice as SM, but far more accessible than both.
ReplyDeleteHere are two sort of common, perhaps reasonable places in that area (the first seems high to me by about $75K maybe $100K):
ReplyDeletehttp://www.redfin.com/CA/Los-Angeles/4307-Lyceum-Ave-90066/home/6725322
http://www.redfin.com/CA/Los-Angeles/12481-Gilmore-Ave-90066/home/6732470
And a shiteau:
http://www.redfin.com/CA/Los-Angeles/12720-Gilmore-Ave-90066/home/6732197
And a junker:
http://www.redfin.com/CA/Los-Angeles/12846-Bonaparte-Ave-90066/home/6732035
WarChest: I know this is outside your comfort area, but how would I do research on all the different neighborhoods of Burbank? I've combed through the CityData forums and Redfin comments. Where else can I look?
ReplyDelete