Most people know that real estate in California is on an upswing, but they might wonder why this is the case. Although many areas have seen unusual growth in the last few years, the rate of this appreciation is much higher in Los Angeles and the surrounding counties. There are several factors that have contributed to the upswing in the Los Angeles housing market, including low mortgage rates, the need for more space, and the great living conditions in this area. Whether you’re looking to buy or sell, a highly qualified real estate agent will be able to help you make the most of the situation.
Basics About the Los Angeles Housing Market
Currently, the housing market in LA is very active, and homes are sold quickly. Depending on the month you list a property, it might already be gone 30-40 days later. What’s more, real estate is a great investment because it is appreciating much more quickly than other types of assets. For example, homes in the Los Angeles area have gone up around 15.9 percent in the past year alone, which means that homeowners and property investors have made a great return on their money.
There are many different reasons why people are so eager to purchase a home in this area. Not only is the climate mild and pleasant all year round, but LA also offers a host of cultural options. It is a hub for business and entertainment alike, and many highly qualified people move there to pursue careers and professional opportunities that are unique to LA. What’s more, there are numerous different neighborhoods to choose from, all of which offer something unique. Whether you’d like a home in a quiet area with a community feel or a small condo in the middle of town, everything is available here.
Low Mortgage Rates
In the past few years, mortgage rates have sunk lower and lower. This means that the same amount of money can buy a much bigger house, and your repayment will be much lower than it would be if rates were higher. Currently, you can expect to pay around 2.9% for a 30-year fixed mortgage in California, and a 5-year adjustable one can cost you just 2.45%. For most people, these low rates are seen as a good thing, and they are racing to take advantage of such a good deal.
Of course, your individual credit score and financial situation will affect the exact rate you’re offered. Your realtor can give you more advice about how to demonstrate to potential lenders that you will be a good choice and that you can reliably pay back what you owe. For example, they might tell you to increase your deposit until it is of a decent size, check your credit history to make sure it’s accurate and there are no issues, and make sure your current debt is manageable. By starting to work on your creditworthiness months or even years before you’re looking to buy, you’ll give yourself the biggest chance of securing a great deal.
Buyers Want More Space
During the Coronavirus crisis, many people realized that their current housing no longer meets their needs. When spending every day at home, you notice the issues with your house, and for a number of owners, the biggest problem was a lack of space. For this reason, many locals have decided to upgrade to a larger home and are therefore looking to sell their smaller, possibly more central, dwelling. This is good for the market because it allows younger professionals to snap up the smaller homes that have now become available.
Similarly, it’s great for many of Los Angeles’ most popular neighborhoods, especially quiet ones that are removed from the hustle and bustle of downtown. Homes in these areas are now much easier to sell, as a whole new generation of families are looking for a place. If you have a piece of real estate to sell in an area such as View Park, you shouldn’t hesitate to get in touch with your local agent. They will help you to value your property and get it on the market. You might be surprised at how much people are willing to pay and how quickly it gets snapped up.
The Quality of Life Is Great
There is no denying that the quality of life in California is great. Unlike in many other parts of the US, there is no harsh, taxing winter, so you can enjoy mild weather and sunshine year-round. What’s more, the beach is close by no matter where in Los Angeles you live, which is great for days out and spending time with the family. When it comes to enjoying nature, going hiking, or visiting national parks, no other area beats California. Similarly, there are a myriad of options for enjoying cultural activities, nights out, and entertainment. Alll these are reasons why many people choose to set up their home in our state.
In addition to the great quality of life and free time options, California has also evolved as a hub for creating and growing a business. People looking to achieve success in their careers or a high salary should either move to New York City or to California. These two areas abound with opportunities, but only the latter can offer both great weather year-round and the chance to further your career. For this reason, more and more young professionals are setting up their life here, which pushes up the prices of real estate.
There Is a Perennial Shortage
Because of the hundreds of thousands of jobs that have been created in California in the past years, people are moving to the area in droves. However, the housing market hasn’t been able to keep up with the demand. There is a strong imbalance between supply and demand, as the population grows but the construction of new homes stalls.
A primary reason for this issue is that property taxes are capped, so the government has had to find alternative ways of making money. One of these is charging high developer fees, which discourages construction in the local area. This has caused the perennial shortage we are seeing now. But while it is an issue for many people, it doesn’t have to be for you. If you’re a seller, you’re in a great position, as there will most likely be many people willing to pay top dollar for your home. As a buyer, you will need to work slightly harder, but your real estate agent can make sure you find exactly what you’re looking for.
Get the Inside Track
Knowing more about the Los Angeles real estate market is important, whether you’d like to buy a property or sell one. Currently, there is a high turnaround, and homes are appreciating much faster than usual. This is due to a number of factors, including low mortgage rates, people’s needs changing, and the great quality of life you can find in California.
To take full advantage of the current market conditions, you should team up with a highly experienced real estate agent who can help you navigate the ups and downs of selling or buying a home. A great realtor will provide you guidance and advice, and they will ensure that you receive the best outcome possible. Get in touch with Teresa Mack today to find out more about how her services could help you get a better deal.