Welcome to the real estate newsletter. Before we get to the heart of the matter, a brief tribute to the Rams, who made housing news by winning the Super Bowl and turning all of LA into “RAMS HOUSE” — or “HAMSHOOSE,” or maybe ” RAMSYWUSE”.
The Hollywood sign’s laughable makeover is a classic example of the maxim, “A good idea poorly executed is a bad idea.”
More than 100 million people watched the Super Bowl on Sunday, making it SoFi Stadium’s biggest night out yet. The 3.1 million square foot complex is stunning, and if you’re curious about the history of the architecture, The Times took a look at who built it and what makes it so special.
In the luxury market, the biggest announcement of the week came in Bel-Air, where a mansion called the Manor is once again looking to make history. After setting the all-time price record when it sold for $119.75 million in 2019 (since surpassed several times), it’s aiming for an even bigger sum this time around: $165 million. .
If it gets its price, the home — built by producer Aaron Spelling and his wife Candy and dubbed Candyland — will tie a buy by Jeff Bezos for the second most expensive home sale in Southern California history.
We don’t check out La Crescenta enough, but every time we do, the little hillside community is worth it. The area’s notable list comes from Red Hot Chili Peppers bassist Flea, who is asking $9.8 million for his compound that includes a house designed by Richard Neutra and a futuristic seven-sided structure. You really need to see the amazing photos on this one.
Now, it’s time for some news you can use if you’re looking to buy a home: Mortgage rates are rising. Costs for 30-year loans hit a two-year high of 3.69% last week, 20% higher than they were at Christmas. This trend could put an end to a booming market fueled in large part by historically low mortgage rates, which have significantly increased the purchasing power of buyers.
Insurance rates are also skyrocketing, especially for homes in California’s fire-prone areas. If you live or are looking to live in such a place, we’ve put together a roadmap for you to follow to help you save on insurance, as several insurers are offering discounts to homeowners who have made security upgrades to their properties. in case of fire.
While keeping up to date with the latest news, visit and like our Facebook page, where you can find real estate stories and updates throughout the week.
SoFi Stadium, explained
SoFi Stadium began allowing fans into the venue last spring, but Sunday’s Super Bowl LVI was in many ways the venue’s true beginning. And what a start it was, writes Carolina A. Miranda.
The 3.1 million square foot, $5 billion arena has plenty of superlatives attached to it. It is the largest stadium in the NFL. It is the first indoor-outdoor stadium in the league. And the steep vertical incline of the stands allows fans to get surprisingly close to the action. Hell, if you’re bathed in cash and can afford one of the shacks on the field, you could very well have a defensive lineman land in your beer.
SoFi is courtesy of a team of more than eight dozen architects and designers led by Lance Evans of HKS, a global architecture firm with offices in Los Angeles. SoFi’s mission was to deliver great experiences “at every price point,” Evans said.
The Manor drives out history
In 2019, The Manor propelled the Southern California luxury real estate market to new heights when it sold for $119.75 million. At the time, it was the most expensive sale ever in LA County.
Now the domain is back up for grabs with an even bigger prize: $165 million.
When someone spends over $100 million on a house, their identity is usually revealed at some point, but the owner of the mansion remains unknown. Records show it was purchased by a California-based limited liability company called 594 Mapleton, but the entity behind the company is a mystery.
Flea lists a hillside gem
Many Stellar Homes dot the hills of La Crescenta, but none quite like Flea’s. The Red Hot Chili Peppers bassist has owned the futuristic speaker for four years, and now he’s buying it for $9.8 million.
That’s more than double what Flea, whose real name is Michael Balzary, paid in 2018. Records show he bought it from artists Lari Pittman and Roy Dowell for $4.25 million and has made a few additions including a swanky cabana, 50 foot long pool. swimming pool and 875 square foot expansion during his stay.
At the center of the 5.7-acre expanse is a swirling seven-sided structure and a small house built in 1953 by famed architect Richard Neutra for his secretary, Dorothy Serulnic. Neutra’s best work combines modernism with Southern California indoor-outdoor living, and that design ethos is on full display here.
Buyers Beware: Mortgage Rates Are Soaring
First-time home buyers, already beset by bidding wars, now face a potential blow: higher mortgage rates.
Costs for 30-year loans hit a more than two-year high of 3.69% in February, rising about 20% just since Christmas. Further hikes are expected as the Federal Reserve, trying to rein in inflation, raises its benchmark rate. It’s a daunting prospect for first-time buyers when affordability is already at its worst since 2018, write Prashant Gopal and Jo Constantz.
The pandemic housing rally is heating up again as the key spring selling season approaches, threatening to push new buyers beyond what they can afford. Their modest incomes put them at a disadvantage when competing with seniors and downsizing single-family homeowners for the same moderately priced homes. Soaring borrowing costs sap their purchasing power, preventing them from bidding high enough to stand a chance.
How to save on home insurance
As fire season lengthens and wildfires increase in intensity, Californians living in fire-prone areas are finding it harder to find affordable home insurance — if they can find coverage at all. , writes Jon Healey.
With that in mind, state officials this week unveiled a “Safer from Wildfires” framework to improve fire safety and reduce casualties. The goal is not just to save lives, but also to reduce premiums and make coverage available in more areas.
The framework sets out a list of upgrades individual homeowners should make and preventative measures local governments and community groups should take. Rather than breaking new ground in fire safety, it draws on best practices outlined by consumer group United Policyholders, the Insurance Institute for Business & Homes Safety, and Cal Fire, among others.
What we read
Fortune has an ominous warning with a headline promising that “the spring 2022 housing market will absolutely crush buyers”. The article cites figures from Zillow that say home inventory will be significantly lower than previous estimates, prompting prognosticators at the home sales website to change their minds about home price growth. Instead of posting slower annual growth, prices will rise even more in 2022 than in 2021, Zillow data shows.
Last year, investors bought 10% of all homes in the Los Angeles area, which wasn’t enough to rank in the top 10 of the top 40 metropolitan areas analyzed by The Washington Post. The Post’s analysis, using data from Redfin, found that investors bought nearly one in seven homes sold in major U.S. metropolitan areas, the most in at least 20 years, black neighborhoods and Southern cities being disproportionately affected. An interactive map of Los Angeles shows investor buying has been rapid (48%) in University Park, home to USC, but also in affluent neighborhoods such as Malibu and Beverly Hills, which have seen a third of homes reclaimed by investors. investors.