I find it amazing how black & white the current real estate market is in Los Angeles. In recent months foreign and local investors have poured mass amounts of money into the Luxury Market with closings such as the $80 Million dollar "Spelling Manor" to the 22yr old Formula One heiress and luxury homes across LA county receiving an increase in showings and multiple offers once again offering a sense of the recent recession moving into days past.
YET.....Just a few short miles away from any trendy LA botuique area with luxury homes selling in today's market, there is another family struggling to keep their home or even worse, losing their home in a short sale or foreclosre being forced back into the rental market, starting over from scratch, with hopes of rebuilding their financial futures.
Today, at the foreclosure auctions on the courthouse steps, I watched a home go back to the bank that was owned by a couple since it was built in 1956. Original owners! An elderly couple just lost the home they reaised generations of their family in to a bank who I later found out was owed less than $20,000! How dare they?! You mean to tell me with all the loan modifications and short sale/foreclosures costing our banks billions in losses, the powers that be couldn't somehow make it possible for these poor people to keep the house they had 95% equity in?
The reality for most Los Angeleans is that prices are moving sideways, or even still downward in some markets with many home owners who owe far more than their homes are worth and many others who could never obtain financing if they applied today!
While the elite few who choose to enjoy in home movie theaters, closets you could get lost in, outdoor pavillions, and seemingly endless views of Southern California beaches, mountains, and city scapes are out shopping and making cash offers in full force! Prices of homes $1 million plus have risen .7% since February according to Zillow while properties under $1 million have dropped more 1.5%.
Normally these two sectors of the housing market move together in the same direction while today they seem to be going their separate ways. The highs & the lows, the rich & the poor.....Is this a Bipolar real estate market?