Why SFRs in SFV prices do not pick up?

[Kevin Lefeuvre]

I am looking at SFR properties to buy in Woodland Hills, Tarzana, Encino, Hidden Hills... You can buy a nice 3BR/2BA or even bigger, remodeled with pool, in the range of 600-800. Which is hardly their 2007 pre-crash peak price. Now compare them to Westchester, Marvista, West LA, NELA, or most South OC cities, they are all some 20-40% above their pre-crash peak price.

Were they over-priced then or under-priced now? If so, Why? 

I asked myself the same question 4 years ago, and thought the difference was the inventory of foreclosures, but that is gone now. 

Thoughts?

[Matt Mason]

Originally posted by @Kevin Lefeuvre:

@Joseph Fang  traffic was already awful in 2006 in SFV.

Moreover, traffic is not any better in the compared neighborhoods (Westchester, Marvista, West LA, NELA). 405 is as bad as 101.

Somebody living in Mar Vista or the Westside in general are not commuting very far at all for the most part.  They usually work in Venice, Century City, Westwood, or Santa Monica - basically 10 minutes away.  For single people or childless couples they usually value time more than a big backyard.

Weather is a major difference too.  You are talking about a 25 degree change or more in the summer.  I've used my air-con 3 days so far in 2017.  Somebody in Woodland Hills has probably been running their A/C 24/7 for the last two months.