Have you been browsing through the Los Angeles real estate market, unsure where to start? Buying or selling a home anywhere is tricky and even more so in LA. We have some insider tips on the LA market that can help you take that first step.
LA Is Everything
The City of Angels is a bustling urban center, a bastion of diversity, a glamorous show business center, and a paradise for coffee-lovers, oenophiles, fitness buffs, and foodies alike. It’s also crowded in places and sometimes snarled in traffic. In just a short drive, you can be sunning at the beach, lost in the mountains, trekking through the desert, or dancing in a downtown nightclub. You can also find yourself surrounded by concrete jungle.
What It Means
Whether you’re looking to buy or sell property in LA, you need a professional with experience in the local market to help you take advantage of all the amazing things LA has to offer while avoiding the downsides of the big city.
Housing Is Valuable
Compared to the rest of the country, property values in LA are high. In 2016, for example, the average home on the Los Angeles real estate market was worth $553 per square foot. Houses appreciate faster here than in other parts of the country. The average homeowner in LA has almost double the equity of a homeowner in New York.
What It Means
If you’re in the market to buy, you shouldn’t hesitate when you find the right place. Once you own, you’re on the receiving end of property appreciation. And if you’ve been holding on to some property for a while, it might be worth talking to a real estate expert to see how much value your property has gained.
Housing Is Still Below Peak
If you’re worried that appreciation will stop or that LA is in a real estate bubble set to burst, don’t. Despite unprecedented growth, the market is still well under the peak it reached before the mortgage crisis of the late 2000s.
What It Means
There’s no need to panic about housing bubbles. In 2007, housing prices reached an all-time high and then crashed; but that was because of terrible lending practices from the banks. Today’s high prices are due to short supply, which indicates a healthy market and marks the difference between a bubble and a desirable location.
Prices Aren’t All High
If you’ve just done a cursory check of the LA market and been put off by high prices, look again. You shouldn’t assume that everything is out of your reach. A real estate professional can help you adjust your expectations and then find something that works for you within your budget.
What It Means
Don’t assume you can’t afford anything until you’ve talked to an expert. After all, that’s what they’re here for! You can get a deal on property in LA. You just have to know where to look.
Renters Are Everywhere
Recent surveys show that around 33% of people in LA rent, and that’s just people making over $100,000 a year. High-income renting is common in the area, and many younger professionals find it a preferable way to live.
What It Means
If you’re looking at property as an investment, you can’t do better than buying to rent. There are plenty of people looking for places with a good location and amenities, and they are willing to pay for them, too.
How to Access the Los Angeles Real Estate Market
Whether you find the Los Angeles market intriguing, inviting, or intimidating, get in touch with Teresa Mack. With the right insights and advice, you can successfully make the most of real estate in the City of Angels.
