Low SoCal inventory has homebuyers writing love letters to sellers, entering bidding wars

Los Angeles /
Apr.April 26, 2017 12:00 PM

As Southern California’s real estate prices continue to climb and inventory remains low, homebuyers are getting increasingly creative in their quest to close deals.

Some are penning letters to sellers describing how much they want the home, while others are bidding more than $100,000 over ask before the open house, the Los Angeles Times reported.

Buyer Elizabeth Rodriguez and her husband said they wrote “love letters” to sellers describing how much they wanted to buy their homes and even offered $102,000 above the $798,000 list price for one Spanish-style home in Mount Washington. Even still, they lost out on the property to another bidder. All in all, they bid on 11 homes before finally securing a Glassell Park pad for way above its asking price.

Dean Baker, co-director of the Center for Economic and Policy Research, said he’s concerned about the spike in home prices at the lower-end of the market but said the rise differs from the overheated days of the market before the housing crash in 2008.

Home prices rose at a faster pace than rents during the housing bubble, indicating reckless lending and not economic fundamentals, he told the Times. Now, prices and rents in Southern California are largely rising in tandem.

“It really is a shortage of housing,” Baker said. [LAT] — Subrina Hudson


Related Articles

arrow_forward_ios
Combined Properties Chairman Ronald Haft, AECOM Capital CEO Warren Wachsberger and Pendry West Hollywood
AECOM JV lands $500M loan on boutique hotel-condo
AECOM JV lands $500M loan on boutique hotel-condo
Renderings of the Little Tokyo Service Center (KoningEizenberg) 
$275M approved for LA affordable housing projects
$275M approved for LA affordable housing projects
Josh Zegen and rendering of 21555 Oxnard Street (iStock, Google Maps)
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
Madison Realty Capital provides $34M loan-on-loan for Warner Center redevelopment
Brookfield CEO Brian Kingston and 725 South Figueroa Street (Google Maps)
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
Interest rate drops spur loan requests from multifamily borrowers (Credit: iStock)
Multifamily owners rush to refinance their mortgages
Multifamily owners rush to refinance their mortgages
Best of TRD 2019 promo
Coming soon: The Real Deal’s Best of 2019
Coming soon: The Real Deal’s Best of 2019
2201 Rosecrans Ave in El Segundo
Continental snags $55M refi on El Segundo office portfolio
Continental snags $55M refi on El Segundo office portfolio
From left: Gavin Newsom and David Chiu (Credit: Getty Images and iStock)
Will rent control dent the multifamily market? Lenders, investors weigh in
Will rent control dent the multifamily market? Lenders, investors weigh in
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...