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Is There An Inventory Crisis In Westwood?

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The Westwood Little Holmby home at 495 Dalehurst Ave., LA CA 90024 lasted a few weeks on the market before accepting one of the crazy multiple offers on 2/27/14. I think just about every broker in town represented a client that made an offer on this house. Actually I am not exaggerating when I say every broker in town, as there was approximately 50 offers on this house. Yup, I said FIVE ZERO, Fifty. As in, half way to ONE HUNDRED.

Was the home priced too low? Was this a special location? Unique or oversized lot? Was the house amazingly remodeled? Maybe everyone knew about the gold bars locked in the basement vault.....kidding.

Price- Yes, in my opinion it was under priced by a few hundred thousand considering what some recent fixer'ish homes were selling for on less desirable Thayer location and the activity they received at those prices.
Location- Dalehurst is a desirable street in Little Holmby, so the location is above average inside of the Little Holmby neighborhood.
Lot- The topography of the lot was mostly flat. This makes a big difference in desirability if the elevation to the front door from the street has limited stairs and the lot is flat. Many homes in Little Holmby are on knolls or hillsides and could have steep sets of stairs to the front door, detached garages at street level with the house above and tiered backyards. This could be the difference in a achieving a high $1m price to a low $3m price for a fixer property on average.
Remodeled- Nooooope. This house is either a total fixer or a teardown.

This house was not overly special in any one way that deserved an obscene amount of offers, other than being an underpriced fixer in one of the more desirable neighborhoods around. To get 50 offers, even with the under pricing of the home, speaks to the severe lack of inventory around...hence what I believe is still an Inventory Crisis in Westwood. This isn't some secret that was revealed just now. If you have been home shopping around in Westwood or anywhere on the Westside, you may have sensed this. Not being able to find available homes or being outbid on the homes you like. Most neighboring cities are faced with an inventory shortage with their own stories of crazy multiple offer scenarios.  In the Westwood neighborhood Comstock Hills a few months ago, we had another house receive 40+ offers on it in the +/- $1.5 range.  There has been homes with offers in the teens and twenties as well. Most single family homes in Westwood are receiving multiple offers. I would say it's much more typical to face in the neighborhood of +/- 10 offers on a hotter property and 3-5 offers on something more average. Here is another stat for you....In 2013, over 55% of Westwood homes sell in under 30 days with a list price to sales price of 106%.

Pent up demand, low inventory levels, stability and rise in the real estate market, international investors, people's fear of rising interest rates, moving 'cash' from savings/investments to real estate holdings, homeowners holding on to property if they don't have to sell since market is going up, difficulty for homeowners to move up or down in same area because of the lack of inventory to replace their property are all reasons that are contributing to this demand and supply crisis.

Last year Los Angeles county was up approximately 20% in price on average. Most analysts are forecasting a rise in prices for 2014, albeit a more moderate and steady pace compared with historical trends. To create a more neutral buyer/sellers market, we are going to have to see more inventory come on the market and get out of this Inventory Crisis.

495 Dalehurst Ave. closed on 3/12/14 for a whopping 34% OVER the asking price at $2,655,000 |$707 $/sf or $261 $/sf for the lot|. According to the MLS, the home is 5 bedrooms/ 4 baths, 3,755 sq ft of living space on a 10,160 sq ft lot.