Even the Fixers are Overpriced

Los Angeles, California - Torcora has been taking steps to acquire not only rental properties but also under valued assets. As part of our adventure to find a “fixer,” we found them consistently over valued. In fact the asking prices have risen a solid 20% over the last 18 months in some of the pockets we are searching.

2019 One Year Update: Had we purchased a single unit residence of this type up to $1 million, our results would be negative.

“LA home prices are overvalued,” notes Elijah C from Curbed. Los Angeles has long been well known as a top 5 most expensive urban area to live in. However, many real estate data trackers report that sales prices are 10 precent above where long term trends suggests they should be. Especially when mapped against the salaries of typical buyers.

“Prices are just so darn high… proceed with caution,” says CoreLogic’s chief economist.

By some calculations, Los Angeles area homes have been overvalued since June of 2017, when sale prices in the region hit an all-time high. Many attribute it to the historically low interest rates. We do expect prices to plateau, hopefully soon, when interest rates rise to a rate that potential buyers are wary of high prices and when they are no longer getting a “deal” on their loans.