The new “L.A. Land” blog published by the LA Times has an article about Santa Monica sticker shock as prices for a single famly home have now gone past $5 million.
Comments on the article range from “the bubble is going to burst” to how overvalued property is north of Montana. Frankly, I think if I had the cash I would live there in a heartbeat. Trade in heat, smog, crime and low quality schools for paradise? One comment by Windu seems to sum up why people choose to live in the Montana neighborhood of Santa Monica:
“As much as some are praying for Westside home prices to tank, it’s just not happening. And frankly, I’m not sure it will. Pop over to the Homicide Report and check out the link to Michael Quick’s map of L.A. homicides. Out of the hundreds of death markers shown, there only 4 to the west of the longitude represented by LaCienega Blvd., all the way from the 101 to Palos Verdes. For some areas east of that line, there are so many black markers it looks like someone spilled ink on the map. And south of Sunset, north of LAX? The number drops to 2.
The fact is that the Westside sells peace of mind to affluent families with kids, plus cachet, beach proximity, and a lack of Valley smog and heat. And for many, disgustingly, the relative lack of diversity is a plus. I personally know well-off Brentwood parents who think their newlywed kids are slumming it by buying in Hancock Park. As the middle class is priced out of L.A. leaving a clogged and stagnant hourglass of haves and have-nots, the demand for the best of Westside real estate may actually increase.
After all, those six-percenter real estate agents who doubled their income during the boom are movin’ on up (I know two that have just moved into the $1.8M+ mansions in PDR’s One Westbluff development). And the large law firms in town have just raised first-year salaries to $160,000 (not including bonuses).”
Here in Van Nuys 
My family moved to Santa Monica is 1969…one and a half blocks north of Montana. The house was a nice but not extravagant two bedroom, 1 1/2 bath and, according to my dad, cost a little under 100K…quite an investment in those days. While we were there, we added another room, a den, and a pool. My parents sold the place sometime in the early 80s for over 300K, and, at the time, that seemed like an enormous profit. Since then, it’s been completely transformed…a second story added, etc. I’ve driven by it a few times and, with the exception of a unique window in the front bedroom, I can’t recognize it. Needless to say, it’s worth millions.
Interestingly enoough, we moved from a modest home in Mill Valley in Marin County. You can imagine what that place is worth now!
BTW, I, like you, am in Van Nuys these days. My husband and I bought our little tract home about six years ago, and it has almost tripled in value! Real estate! It’s crazy!
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