Looking to buy or sell a home?
Whether you are a Los Angeles homeowner thinking about selling your home, or you are considering moving to the LA area, it’s crucial to understand what’s going on with the real estate market.
Paying attention to the particular trends of the Los Angeles real estate market in 2017 can mean a better deal if you’re buying and more bucks if you’re selling. Keep these trends in mind as you move forward with your next home.
Los Angeles Real Estate Market: 2017 Trends and Growth
1. Rising but steady home prices in all neighborhoods.
This is the biggest trend of this year’s Los Angeles real estate market. In fact, home prices in LA are at a current record high, and houses are getting snapped up sometimes in less than a month.
The median home value for an LA residence is at a ten-year peak of $550,000. This price accelerated in recent months and is likely to keep on climbing. The surge in pricing is not specific to LA alone; most of Southern California is experiencing growth in median home prices.
However, despite expected continued growth, LA residents will likely see a slower acceleration in prices. Compared to last year’s growth of 7.3% in home prices, 2017 is forecast to experience a little over 1% in growth.
2. Homeowners now outnumber renters.
Los Angeles has historically been home to one of the lowest percentages of homeownership in the nation. This is not going to remain the norm for 2017, as the percentage of homeowners continues to increase and outnumber that of renters.
However, homeownership percentages are just over fifty percent. As rising home prices level, this comparison may flip to favor renters.
3. Fears of a housing bubble may be unjustified.
LA’s surging home prices have had many residents worrying that this city will join others forecast to enter a housing bubble in the near future.
However, these fears are more or less groundless when it comes to the Los Angeles real estate market. The fact that home prices are now beginning to level despite experiencing smaller growth may give the market and economy time to adjust, effectively eliminating all possibilities of a housing bubble.
4. Mortgage rates are climbing.
While this is not new news, 2017 is definitely the year in which housing markets across the nation will experience significant spikes in mortgage rates.
While this may keep a lot of potential buyers out of the market, it may also compel a lot of people to jump in and claim a mortgage before rates get even steeper. The housing market may experience a small boom in this respect.
Climbing mortgage rates, however, may also lead to a higher percentage of renting in the LA area, as prospective homeowners consider more financially feasible options.
Reading the Los Angeles Real Estate Market
Many homeowners and buyers are skeptical of the real estate market and its forecasts. After all, the market is extremely variable, and its trends depend on political as well as economic climate.
However, paying attention to trends of real estate markets can help you in your decision to buy or sell a home. Those looking to enter the LA real estate market scene should keep in mind the slow leveling of home prices and climbing mortgage rates as they move forward.
Now that you have a solid understanding of the LA market trends, we can help you navigate the LA market. Regardless of its trends or your status as a buyer or seller, Powerhouse Real Estate can maximize your real estate experience.