Dr. Housing Bubble 09/05/2014

[Crewleader]

Hipster neighborhoods and the flippers that love them: Eagle Rock housing and sprucing up small spaces for hefty price tags.

Rinse and repeat. That seems to be the mantra some flippers are adhering to in certain SoCal neighborhoods. Some zip codes seem to attract flippers like flies to a bright light. Eagle Rock is one of those markets. Nestled between Glendale and Pasadena, Eagle Rock seems to be a siren call for hipsters. What I find interesting in these hipster hoods is that they try to pitch a frugal eco-friendly lifestyle yet carry a massive mortgage. Okay, you are growing tomatoes and radishes but now have a mortgage on a $700,000 crap shack. Seems like cognitive dissonance especially when you are getting such a tiny living space. Hipsters seem to be buying it up but the market is now cooling off. Apparently living in a closet and having a tiny garden isn’t so appealing when you look at the underlying price tag.

Eagle Rock fun

I’ve gotten a few e-mails from those in the housing industry talking about how hot Eagle Rock has become. A sort of center of hipster wishes and aspirations. It is an odd pitch when you are telling your prospective buyers to enjoy more “earthly” desires yet slap on a price tag as if they were buying an Italian Villa. Only in SoCal does it cost a lot to live as if you were broke.

I think smart sellers are realizing that something is turning in the market and are trying to capitalize while the getting is good. Take a look at this pad:



1727 N Avenue 45, Los Angeles, CA 90041

http://www.doctorhousingbubble.com/eagle-rock-hipster-cities-flippers-in-socal/

[Demeter]

1. California is a state of mind

and not a healthy one, unfortunately.

[Adsos Letter]

2. Housing prices in SoCal are whacked, I agree. Still, there seems to be a bit more to this one...

Just judging from Google Earth, it appears to have a good sized yard and detached garage.

Still...$700,000...

[Crewleader]

3. more pictures

https://www.redfin.com/CA/Los-Angeles/1727-N-Avenue-45-90041/home/7079706?utm_source=google&utm_term=%2B1727+%2Bavenue+%2B45&utm_campaign=1000618_Google_Search_NB_Los_Angeles_Buyer_listings_Beta&utm_medium=ppc&utm_content=51270080180

[Adsos Letter]

4. I agree, there's no way I'd even consider paying $700,000 for that property...

...still, it has more going for it than some of the other listings highlighted recently.

My youngest daughter lives in Los Gatos (admittedly a high dollar part of California) and pays $2,100 per month rent for 600 sq. ft. in a sub-divided Victorian.

The neighborhood is beautiful, as is the general area, but...Holy Cow!

[Crewleader]

5. Hi Adsos_Letter