Update: Meet today’s homebuyers. Seriously.
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(Updates to include a third buyer. They are coming out of the woodwork, folks.)
No, this is not an April Fool’s item. A reader asked who, exactly, is buying houses in today’s market? According to DataQuick, 3,468 homes changed hands in L.A. County last month -- that’s roughly 120 buyers a day. Meet three of them:
Milla writes, ‘I just closed on a house in Highland Park, high up in the hills in a safe neighborhood, a foreclosed property that I got an amazing deal on...’
She continues, ‘I’ve gotten so tired of people (criticizing) the housing market, which, in my estimation as someone who was just out there, is not that bad. I mean, it’s bad and all, but it’s not THAT bad, certainly not as bad as people make it seem. And the idea of two markets -- high and low -- is very real. I went in as a first-time homebuyer, low-income, under the Cal-HFA and Los Angeles Housing Department programs for people like me. These programs are real, very good and allow people the opportunity to buy in L.A. proper, so the idea that housing is so out of reach unless you make six figures is total b.s. I did it with a modest income, a small down payment and very good credit. And I bought a detached, single-family home, a 3/1, on a big lot with a great view for well under half a mill.’
Another buyer speaks -- this from Mommy, in the comment section: ‘Just wanted to say that my husband and I finally made the leap -- we are in escrow on a repo in Long Beach, 90808. Sales price is $429,900 -- others in that neighborhood (Lakewood Village) are from mid-500s to $900k (though much larger and better updated). We’re putting down 10%, and will be financing at 6%. We’re buying because we took a giant hit on our taxes this year not owning a home, and the mortgage payment will be pretty close to what we pay for rent.’
From a third buyer, Perks: ‘My wife and I closed at the end of February on our new house in the San Fernando Valley. We purchased our bank-owned fixer for $375k, a comfy $225k less than the house sold for 18 months earlier and after many months sitting on the market. After a month of sweat, equity and an extra $20k in cosmetics work, the house looks spectacular and we’re almost ready to move in. With six-figure incomes and excellent FICO scores, we could have easily qualified for a bigger house and a bigger mortgage, but I know better than to be strapped to a house I have to scrape to afford while it continues to lose value. In our case, our house payment is less than our current rent, and we’re in a bigger place with a bigger yard in a nicer neighborhood than where we have been renting.’
So there you have it -- real buyers. Yes, Virginia, there is a housing market.
Your thoughts? Comments? Do me one favor: don’t write in demanding more details on the above transactions. These people have opened themselves up to all manner of criticism and second-guessing, which it seems to me is above and beyond the call of duty. E-mail story tips to peter.viles@latimes.com.
Photo Credit: The view from Milla’s new deck, from millatimes.com.