Los Angeles Market Update: Q4 Real Estate Trends to expect in LA, by Adrian Bates.

By Adrian Bates

Real estate trends to expect in Los Angeles

Released by California Association Realtors in June 2021, Los Angeles the median price is a 23.1 percent gain over last year’s price.

This has placed Los Angeles in the top three most expensive cities in California. As per the report, Los

Angeles has a housing demand and the market is moving fast. The single-family median prices have increased by 31.1 percent to 725,680. This has marked a sales increment of 80.7 year over year.

The condominium median price has increased by 23.1 percent. A sales increment of 148.1 year over year. As published by NeighborhoodScout.com, Los

Angeles has appreciated by 99.05 percent which is equivalent to a 7.13 percent rate annually. For this, it has been placed in the top 10 percent nationally for Real estate appreciation.

Like most economies in the country, Los Angeles’ economy was impacted by the 2020 coronavirus pandemic. The shutdown during the first phase of coronavirus resulted in a 31.5 year-over-year decrease. The Existing Single-family home sales showed a drop of 5.2 percent year over year and the median price increased by 7.9 percent.

Los Angeles has a Monthly Supply Inventory (MSI) of 1.9 months, making it a seller’s market. This is according to statistics released by Realtors.com in May 2021. This supply inventory is not likely to rise soon. For the demand-supply to be at a balance, the supply inventory should be between 5 to 7 months worth of supply.

There’s, therefore, no hope of shifting from the seller’s market any time soon. In a seller’s market there exists a higher number of buyers than the houses available for sale. One of the main reasons for low supply is little to no or few constructions of new homes that have led to fewer homes available for listing. The increased number of home buyers has been caused by the low mortgage rates offered. Most buyers are therefore able to borrow

more from banks or mortgage lenders making home affordability easy despite the hiking prices. Zillow forecast released in June 2021, predicts that Los Angeles home value will appreciate by roughly 18 percent come next year. Prices might also rise by double digits. The rise in price will be a result of the Supply and demand imbalance dynamic. Home pricing is at a higher rate and buyers are offering appealing offers to sellers so as to get the houses available. This is a favorable market phase for sellers. Also due to the pandemic, most sellers are not willing to put their homes with the Multiple Listing Services which is also another factor contributing to the low inventory supply.

The real estate industry has already adopted the new norm of the pandemic. Technologies have taken a part in carrying out most real estate processes and events. Real estate in Los Angeles continues to show improvement despite the fact that the economy was affected by the pandemic. Los Angeles is the largest city in California and The second largest in the United States. It is considered an ideal market for both home sellers and home buyers. It offers great long-term investment opportunities. For these reasons and more, Los Angeles has a good ground to attract anyone who wants to invest especially in real estate. This may be a good time to buy a home In Los Angeles. You don’t have to wait and buy a home later, buy now! Reach out to Eric Lawrence Frazier MBA DRE 01143484/NMLS 461807 or Adrian Bates one of our VIP Agents in LA today and find out more!

ABOUT ADRIAN BATES

Adrian Bates graduated from Cal State University with her B.A. in Psychology (Business Management minor) in 1980. The former aerospace contract negotiator became a real estate sales agent in 1985 and then a broker in 1990. In April of 1995, property sales across America were on a serious downturn, yet a young and determined Adrian Bates opened A-1 Realty in Los Angeles, CA. With her fortitude and divine help from God above, her team two grew into a team of eleven agents by November 1996. To find out more about Adrian, go to https://thepowerisnow. com/adrian-bates-2/

ABOUT THE POWER IS NOW MEDIA, INC.

The Power Is Now Media Inc. is an advocate for the empowerment of the minority communities all around the United States. We engage with various thought leaders to make sure that you are equipped with knowledge about our economy. We have partnered with First Bank to provide you with products and services that will help you prepare better for the future. We are also advocating for first-time home buyers. The Power Is Now Media Inc. can help you make your home ownership dream a reality. Go to www.neverrentagain.com and get started today.

Eric Lawrence Frazier MBA DRE, Vice President and Mortgage Advisor of First Bank, NMLS 461807. President and CEO of The Power Is Now Media Inc. www.thepowerisnow.com

References

https://www.noradarealestate.com/blog/los-angeles-real-estate-market/ https://www.neighborhoodscout.com/ca/los-angeles/real-estate