It will become more expensive to buy your little piece of heaven this year, as lower-than-ever inventory in the City of the Angels continues to be the big story at the beginning of 2016. And with the lack of inventory in Los Angeles comes the inevitable rise in prices. All-cash offers and bidding wars are still the rule in every sought-after neighborhood and price range, especially if properties are correctly priced. But according to the highly respected UCLA Anderson School Real Estate Forecast, our market is not in a bubble. "L.A.'s housing market, despite becoming more expensive and unaffordable, is not in a bubble," UCLA economist William Yu wrote. "The current rise in home prices seems to be driven by rising effective demand and limited supply, not by speculation. Therefore, the housing bubble burst we experienced several years ago is unlikely to haunt us this year or next, and the smart money will continue to invest here." Moreover, the forecast states that Los Angeles is in the middle of its rebound and can be expected to experience price increases for at least another four years, with values increasing 35%. Obviously the global economy and the current uncertainty about the U.S. elections could play havoc with the predictions, but on the whole, relative to other parts of the country and world, L.A. looks like a pretty darn good investment. Take a closer look at our Los Angeles market in the Agency's Q4-15 Report.
Award winners!
The entertainment industry's award season brings added interest to homes of past winners. One of my own listings sold in the fall, and garnered a great deal of attention: the former home of Katharine Hepburn, subsequently owned by Boris Karloff. The Great Kate still holds the record for the most Oscars ever won (four for best actress). The remarkably authentic 1930's hacienda (just under 5,000 square feet) stands on approximately one usable acre in the foothills above the city of Beverly Hills.
Bar reportedly built by Boris Karloff.
The property is hedged for privacy and features thick masonry walls, the ubiquitous movie star swimming pool and a rose garden purportedly planted by Karloff, who enjoyed floriculture. I was fortunate enough to meet his daughter, Sara Karloff at the house once. She had very fond memories of spending part of her youth in such a romantic and beautiful place. Her father built the bar in the house. Legend has it that several actor friends of Karloff (who created the onscreen Frankenstein monster) asked to be buried in the garden, where they had spent many happy times. To my knowledge none ever were. And of course, had I known that I would have been required to disclose it to the new owners which, in retrospect, might have increased the value. The property sold in multiple offers for slightly more than the asking price of $7,395,000.
Charlton Heston’s former home in the Coldwater Canyon area of Los Angeles.
The home of the late Charlton Heston, Oscar-winning best actor of 1959, sold in mid-January close to the asking price of $12,249,000. The buyer is reported to be Luc Besson, the prolific writer/director of the classic "La Femme Nikita" and more recently "Lucy," starring Scarlett Johansson. The 2.9-acre estate in Coldwater Canyon/Beverly Hills has spectacular mountain and canyon views and a great midcentury 5,100-square-feet residence (total square footage of all structures is 9,667 square feet) designed in 1958 by noted architect William S. Beckett. The glass-walled home, beautifully sited for the views, is fitted out with terrazzo floors, a two-story library and a gigantic master suite, befitting the star who embodied Moses, Ben-Hur and other larger-than-life characters. The estate also features a tennis court with a viewing pavilion and a three-story art studio/guest house. The Hollywood neighborhood itself has made a comeback of epic proportions, starting with the opening of the Hollywood and Highland shopping center in 2001. Luxury condominiums abound in the area, including the Residences at the W Hotel, and the Broadway Hollywood lofts on Vine Street near Hollywood Boulevard. Other developments include the enormous and controversial Millennium Hollywood mixed-use development, the Palladium Residences, adjacent to the world famous concert and event venue, and smaller projects like Fountain+Gower, built by Metro Investments in conjunction with P. Joseph Development. All are within an easy stroll (over stars commemorating Hepburn and Heston on the Hollywood Walk of Fame) of the Dolby Theater, where the Academy Awards take place again this year. So purchasers of luxury condos can walk where legends have and (hopefully) always will. So let's give a cheer to the winners, and plan a shopping trip for a new home in the starriest part of Los Angeles, and, in fact, the world!
About Edward Fitz
With a career spanning over 20 years, Edward Fitz has established his reputation selling significant, unique homes in some of Los Angeles’ most prestigious neighborhoods. As a result, he has consistently placed in the top 1% of Realtors nationally, and in 2015 was #171 on the Wall Street Journal/Real Trends Top 1,000 Real Estate Professionals list, ranked among the best of the best in the U.S. Edward has represented properties for and sold houses to a number of internationally famous personalities, with faces that can be seen on screens both large and small. Born and raised in Portland, Ore., (of which he is still a huge fan) Edward attended Lewis and Clark College, studying history and music/voice performance. He lived in New York City for a time, and moved to Los Angeles about 25 years ago. In 2013, Ed became a partner at The Agency.
This article originally appeared on MarketWatch.