OUTLOOK -- June 9

On a recent tour of the burn zone (note that passes were still required as of June 10), one couldn't help but notice just how far the area has progressed since those horrible days of January. While we were all struck dumb by the staggering pictures of smoldering and charred structures, the vast majority of the burn zone has now been cleared almost entirely of burnt-out structures. In fact, there is an eerie sense of peace in the neighborhood; it is not just quiet, but the views are expansive and unobstructed by homes and buildings – I’ve heard it described as farmland. What is especially discombobulating is that certain pockets and streets are utterly untouched, with landscaping, trees and houses standing as they were on January 6. 

Advice to owners (updated): with the area opening up and lots increasingly cleared, the market may be poised for a bit of a refresher, insofar as there may be buyers in the woodworks that were waiting to actually go for a “look-see”.  As shocking as a tour may be, I have no doubt that actually being in the neighborhood will remind people of the stunning beauty of the surrounding area, however tragic the conditions are at the moment. 

If you are an owner, please do not list at 50% over market, only to have to engage in multiple six-figure price reductions. If you want to sell, ask for 25% over comps (adjusted for your lot) and test the market. For help with pricing, with no obligation to list, please reach out to us for a market analysis.

Advice to buyers/ developers: there may be a temporary bump in interest due to the area being open again, so assume that outside buyers may bring competition. Even though six-figure price reductions continue to pop up every week, assume that well-priced lots will sell – especially if current neighboring owners have the capital to combine lots. At this point, that is your likely competition (though not in all sub-markets). 

Keep in mind that the number of true view lots (a true view being a view from the back yard) is finite, as are AAA lots in the Huntington (and not all lots are AAA; Toyopa, for example, is the worst street in the Huntington). Everything else though is up for grabs, and you should have more leverage as a buyer.

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Information provided is sourced from third-party databases and sites deemed to be reliable. Merkle Tree and Pali Land make no guarantees as to the accuracy of this information. Please consult your legal, tax, and real estate advisers before making major decisions regarding any real property.