Is Real Estate Different In The Westside?

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There is talk about how homes in the Westside aren’t as affected by current conditions in the housing market. And I tend to agree. I think many folks do. Well, professor Stephen Cauley, who is the director of research at the Richard S. Ziman Center for Real Estate at the UCLA Anderson School of Management recently spoke about the Westside housing market.

He actually noted that property was too cheap on the Westside because it should be compared to cities around the globe, like London and Paris rather than say, Chicago. (Interesting). But before you get bent out of shape, see what else he had to say. Here’s a bit for you to read:

Los Angeles is being viewed in the wrong frame of reference regarding property values, and rather than comparing it to cities in Ohio or to Chicago, it should be compared with international cities such as London, Paris and Madrid, said Cauley.

The Westside is more insulated from the ups and downs than Orange County, but what happens to the economy does affect us, he said.

Cauley said he sees the long run for Los Angeles and the Westside becoming international over the next ten to 15 years, bringing major change to the Westside.

There will be a feedback effect from high home prices, said Cauley, asking where engineers and scientists will live.

California is becoming like a Third World country, balanced between the well-to-do and the uneducated, low-income individuals, Cauley said.

The state has major fiscal problems with an adverse impact on growth, resulting in the need for public services for an increasing fraction of the population and a decrease in people paying taxes, said Cauley.

Interest rates are key in determining the health of the economy and real estate in the near to medium term, and interest rates are likely to “go up a whole bunch before they go down,” Cauley said.

California sees a bigger financial problem with tax rates going up, and what happens to interest rates determines what happens to the economy and real estate values, according to Cauley.

You can read more in this Argonaut article.

And here are a few new on the market Playa del Rey condos for you.

8600 Tuscany Ave., #404/1 bd, 2 bth/$419,000

7740 Redlands St., #G3095/2 bd, 2 bth/$430,000

8515 Falmouth Ave., #212/2 bd, 1.75 bth/$569,000

  • http://terrafirmala.com Christopher

    This is absolutely true. In fact, I recently documented this exact fact in regards to foreclosures on my blog: TerraFirmaLA.com

    Check it out, you’ll see the numbers to back up the fact that real estate performs differently on the Westside than in the rest of Los Angeles.

  • http://terrafirmala.com Christopher

    Here’s the URL to the post I talked about in my comments above:

    http://terrafirmala.com/2008/01/tons-of-la-foreclosures-except-on.html

  • http://losangeles.redfin.com/blog Christina Chan

    Thanks for your post, Christopher. It seems some of the news reports don’t differentiate the differences in neighborhoods when it comes to the real estate market.

  • http://terrafirmala.com/2008/02/affordable-west-hollywood-condo.html Christopher

    So true, Christina. L.A. is a city of neighborhoods. And when it comes to real estate, each neighborhood really is its own story. It’s another reason I love this blog, because you guys really hone in on real estate on a neighborhood level.