by John Huetteman

Created on: August 27, 2009

CITY AND REAL ESTATE GUIDE: LOS ANGELES, CALIFORNIA

BACKGROUND INFORMATION

Los Angeles, founded in 1781 as El Pueblo de Nuestra Seora la Reina de los Angeles de la Porcincula (The Village of Our Lady, the Queen of the Angels of Porziuncola), became a part of Mexico in 1821. At the end of the Mexican-American War and as a part of the Treaty of Guadalupe Hidalgo, California (Los Angeles included) was purchased in 1848 becoming a part of the United States of America. Approximately 2 years later, Los Angeles became an official municipality. Today, the

City of Los Angeles houses 3.8 million residents, however, the metropolitan area of the County of Los Angeles is home to almost 13 million residents that come from all over the world and speak more than 220 languages. The City of Los Angeles also covers approximately 469 square miles of land and 29 square miles of water, is the second largest city in the United States and is the only American city to be bisected by a mountain range. Comprised of many neighborhoods:

Benedict Canyon, Boyle Heights, Brentwood, Century City, Chinatown, City Terrace, Crenshaw, Downtown, Echo Park, Hancock Park, Hollywood, Hollywood Hills, Koreatown, LAX, Leimert Park, Lincoln Heights, Los Feliz, -Wilshire, Miracle Mile, Pico-Union, Silver Lake, South Central, Venice Beach, Vernon, Watts, West Adams, Westchester, Westwood, among many others.

REAL ESTATE BUYER'S MARKET

The Los Angeles real estate market is one that bears the signs of the credit bubble that burst which threw Americans into the recession the country is suffering today. As of Monday, August 24, 2009, there were 5,261 homes for sale in Los Angeles with a median price of $495,000, 8 new homes for sale with a median price of $689,975, and a record 13,859 homes in foreclosure with a median price of $308,849. The real estate market is currently a buyer's market with so many homes facing foreclosure at average prices that date back nearly a decade with 30-year fixed mortgage rates at only 5.382%.

Although the real estate market is currently a buyer's market in the City of Los Angeles, it is important not to be mistaken in thinking that Los Angeles is now a cheap place to live. It is far from cheap. The Cost of Living Index (where 100 is the national average) in Los Angeles rates at 131 meaning it is 31% more expensive to live in Los Angeles than anywhere else in the country. This goes without saying that the median home value is $606,375 and yet the median income is only $42,529 annually. This perhaps explains that only 36.84% of the Angeleno population is homeowners where 60% of the population rent and the remainder remain vacant.

The City of Los Angeles is also not home to many families with children where only 22.7% of the population is families with children and over 50% of the population is single. There is, however, a lot to be desired about life in Los Angeles with 284 sunny days per year and a January average temperature of 50 degrees Fahrenheit, the benefits can certainly outweigh the downfalls.

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