LA Real Estate Trends: Market data and

L.A. REAL ESTATE TRENDS: MARKET DATA AND APPRECIATION RATES

Briana Frazier

Being a socio-culturally rich country and thrives independently due to active commercial engagement from people of different spheres, housing in Los Angeles is a hot cake. There is an increase in the demand for houses, contributing to the expensive accommodation cost in this area.

In November, the Los Angeles Metro housing market had a year-over-year increase of 30% in single-family home sales. Compared to October 2020, sales dropped by 9.2%. The Los Angeles metropolitan region’s median home price remained at $630,000, a slight drip of 0.4% from October, but it is 14.5% higher compared to November of 2019. These statistics and more show that the Los Angeles real estate market is a balanced market where buyers and sellers have a healthy balance.

THERE IS A MODESTY IN THE APPRECIATION RATE OF LA REAL ESTATE The strong demand and tight inventory keep on pushing the prices of houses in LA, resulting in a modest appreciation rate overtime. The modest forecast hovers around 5% for the next year. This is a sure game for any homebuyer and seller, as there is a persistent increase in the value of properties bought and sold in LA. There is a fair share of profits between the buyers and the sellers.

THE RIGHT PLACE TO INVEST IN LOS ANGELES Considering the economically robust nature of California (which is the 6th largest economy in the world) driven by its many tech innovations and opportunities and production activities and more, more people concentrated on this area. The strong market advantage it has over other places makes it a sort of economic hub and the right place to do a real estate investment as there’ll be a competitive market.

WHAT PANDEMIC WILL DO TO LA REAL ESTATE MARKET As the lockdown thrives, a lot of works are taken online. That means many people will not use their offices, restaurants will be shut down, and some workplaces that require physical contacts like gym centers and saloons will be closed. An implication of this is that many people will not be able to realize as much money that is needed to finance personal needs and organizational goals, causing them to cut down on rents of places they are not using and sell-off some properties to earn a living. This will be a massive opportunity for the investors to buy as many properties as possible, amassing much wealth and restricting the flow of income to some point. The housing prices might be in the hands of a rich few, and it may probably be high for the next months if the lockdown persists.

THIS IS THE RIGHT TIME TO INVEST Appreciation values will increase drastically in the next decade as the economy tethers between growth and collapse following the lockdown. People would save up to buy properties, and others would sell to have more and launch new businesses. The tussle between buyers and sellers will increase the cost of houses and other properties.

UNCERTAINTY WILL FAVOR BUYING AND SELLING As a business hub, the lockdown has affected it a great deal. Looking at the prospects, LA’s residents will be uncertain if to sell their properties or hold on to them for a longer time. As the lockdown continues and the need for money increases, people would sell their properties under duress to meet financial needs. There will always be readily available buyers. This may continue as the lockdown lingers and may cause the economy to dwindle, encouraging more homeownership by wealthy investors.

References

https://www.noradarealestate.com/blog/los-angeles-realestate-market/ https://www.lamag.com/lalifeandstyle/real-estate-losangeles-pandemic/ https://www.neighborhoodscout.com/la/covington/realestate