The Future of Los Angeles Real Estate: 2020 and Beyond
In 2020, the real estate market has seen unprecedented levels of uncertainty, making the future unclear for many people seeking to buy or sell their home in Los Angeles. However, there are several compelling reasons to look at the future of Los Angeles real estate with optimism despite the challenges we have faced this year. With an experienced real estate agent like Teresa Mack, you could secure your own future as a resident or property owner in Los Angeles.
Steady Growth in the Los Angeles Real Estate Market
The Los Angeles real estate market is one of the most lucrative in the world, second only to cities like New York, London, and Hong Kong. While this fact may cause many people to reconsider their chances of being able to afford a home in LA, the reality is that the city experienced a mild drop in property sales and mortgage rates in 2019. Since then, the housing market has begun a slow but steady period of growth, giving buyers time to purchase property as prices remain below the national average.
In spite of 2020’s historic events and changes, Los Angeles real estate has remained balanced, with a healthy combination of buyers and sellers. This is estimated to grow the market and cause property prices to slowly climb over the next 3-5 years. As the market continues to improve, you can rest assured that your property will only grow in value.
A Remote Worker’s Paradise
As the world continues to adjust to life during a global pandemic, a wide variety of professions have made the switch to full-time remote work. While this may not be a permanent change for everyone, many companies are seeing the value of cutting commute times from the workday and encouraging their employees to contribute more from their home offices. Once your home becomes both your living space and your workspace, location and layout become infinitely more important.
Los Angeles is already among the best cities in the world for remote workers thanks to its vibrant culture, beautiful year-round weather, and incredible natural wonders. As people look forward to a future where remote work is a mainstream model, the city will become a haven for remote workers who want to have a home base in a major city that offers access to beaches, hiking, and other outdoor activities as well as easy travel access.
In addition, the sheer number of homes, condos, and multiplexes in LA mean that there is a perfect home office situation for everyone. If you’re in the market for a combined home and workspace in Los Angeles, a real estate agent will consider both your living and working needs to guide you to the perfect property.
House Flipping on the Rise
Los Angeles real estate has seen a rise in house flipping in the past 2 decades, and this trend is projected to continue in 2020 and beyond. In the aftermath of 2019’s property price drops, house flippers are able to purchase properties in need of renovation for a lower price than normal. There are dozens of prime properties still available at these affordable prices, making 2020 the perfect time for investors to purchase homes and condos to rehabilitate.
A house flipper in Los Angeles can restore and resell single-family homes during any time of the year thanks to Southern California’s famously temperate climate. Most house flippers make approximately $100,000 with each sale, which can go through in a matter of weeks with the right real estate agent. As the market continues to grow and prices rise, a newly-renovated home can sell for far more than its original purchase price, making house flipping a profitable side business or full-time career.
Rental Property Investments
Not everyone buys a house in LA. There are thousands of new renters each year, which means that there are thousands of opportunities to create a sustainable source of income through rental property investment. When you purchase a rental property in 2020, you could see a return on your investment for years to come. If you’re interested in becoming a rental property owner, a knowledgeable LA real estate agent can find affordable properties in prime locations.
Best of all, once you own a property, you don’t need to do the work to attract renters alone. A professional real estate agent can help you market your property based on amenities, location and neighborhood, and price. Each improvement you make to your property helps increase its value. This means that your house, condo, or multiplex will be a reliable source of income in the present and a guaranteed asset for your future.
Small Houses, Large Lives
When people think of Los Angeles, they often imagine the multi-million dollar homes sitting in the hills above the city. While these mansions do exist, future LA homeowners are much more likely to purchase smaller properties. Single-family homes with a modest plot of land have been a hallmark of American homeownership for years, but in Los Angeles, these properties offer more than meets the eye.
As a multicultural city with dozens of distinct neighborhoods, LA gives you the option to find a home in a community that’s right for you. In addition, you can have regular access to downtown restaurants and entertainment from the comfort of your chosen neighborhood. In addition, LA has become a home base for people who are constantly on the go. Whether they travel for work or for adventure, these homeowners have consistently purchased smaller homes, which often fit more seamlessly into their busy lives.
Los Angeles is one of the United States’ main international travel hubs, offering residents easy access to East and Southeast Asia, Central and South America, and the Pacific Islands. In the future, Los Angeles property owners will continue to choose smaller homes and condos to attain the flexibility they desire for their lives.
Room to Grow
For many years, Los Angeles has been characterized as the city of youth. Thousands of young, single people move to the city with dreams of working in the many successful entertainment industries on the West Coast. However, in the future, LA will become a more family-centric as people find partners, start families, grow successful careers or start their own companies, and settle down in this one-of-a-kind city. If you are considering purchasing a home in Los Angeles, it’s important to consider your own personal future.
While you may not be ready to add to your family right away, purchasing a home that will allow for future growth gives you the ability to purchase property and put down roots while the housing market’s prices are lower than average. A real estate agent can take your future goals into account and find you a LA home that has room for future partners, children, pets, and business ventures. Best of all, buying property now is the best way to ensure the future wealth and success of your family in Los Angeles.
Plan Your Future By Meeting With a Professional Real Estate Agent!
Start your journey to becoming a Los Angeles homeowner by contacting Teresa Mack, LA’s leading real estate agent. With a dedicated team of professionals and years of qualified experience, Teresa is prepared to help you build your future by finding your perfect home.