Is now a good time to buy or sell a house in Los Angeles?
This article is specifically for those who live in Los Angeles since the real estate conditions vary from state to state. People wonder whether now is a good time to buy or sell a house in Los Angeles. Actually, the JLL real estate market statistics and trends for LA show that, during the last ten years or so, this state has offered a poor market for people who have low credit rating and who are unable to afford homes.
Homes are astronomically expensive. On the other hand, Los Angeles has become a magnificent market for the hugely rich who can afford these high prices. Colliers International specializes in providing real estate reports of the LA area. Their data show that luxury apartments and properties are aplenty. Architects are designing residential homes and commercial property all the time and construction groups are regularly setting them up. So if you’re looking to sell or buy homes to the enormously rich in Los Angeles you’ve got a constant market. Any time.
Other real estate reports that focus on the LA area, such as the PropertyShark Los Angeles Report 2014, report that the 2007 recession drove interest rates down and caused a housing bubble, but since early 2012, the interest rate has begun to slightly, but steadily, grow and the housing market has stabilized. The median sale price of properties has begun to grow, too. Experts predict that you can reasonably expect that average interest rates in Los Angeles will continue to steadily increase and to eventually stabilize between 6 and 8 percent.
So is it a good time for you to buy or sell a house now in Los Angeles?
For prospective buyers living in LA, now is a good time to buy because the cost of borrowing money is relatively minimal, and will likely only increase in the near future as the Federal Reserve plans to plateau interest rates the coming year.
For homeowners living in LA, now is a good time to refinance due to low-interest rates – especially if you want to make the most of these interest rates while they are low – and/ or to sell your home for another (i.e. trade-off). For buyers and sellers, in short, the market seems good because of its increasing home values. Of course, for many in the Los Angeles market, these rising prices are precisely those that will make most attractive homes beyond their reach. But there are areas and houses that you may still want to try for. And if you consult a broker, he will show you ways that you are unaware of for procuring a loan even when your bank turns you down. There are many different types of mortgages and levels of interest out there. A skilled broker will help you.
How can you know how to predict the real estate market in Los Angeles?
Many people ask us when they should buy or sell property, and we can refer you to lots of so-called experts who will give you an opinion on either side of the coin. The truth is that no one knows for sure when you should buy or sell real estate in Los Angeles. If they would know, they would be millionaires – or, more likely, billionaires. So if anyone gives you an answer that veers towards certainty, know that he or she is lying.
How can you predict market trends in Los Angeles based on figures?
You can roughly estimate the state of the real estate market in Los Angeles by using historical figures. So, for instance, if there has been a downturn in the past, know that this will likely continue.
There is also the reliable thirty year mortgage predictions that can be applied. Essentially, if any of the following occur, know that you’re in for a rough housing market in LA this year:
- Falling inflation rates
- Weaker-than-expected economic data
- War, disaster and calamity
You can rely on these conditions because interest rates rise, sometimes astronomically, during these events, and people will be less apt to sell or buy houses.
What about the season? Should I buy or sell a house in Los Angeles now?
Experts who deal with real estate in LA note that property prices in Los Angeles tend to hike in the summer and decrease in the spring. This is because there is almost always an uptick in median sales prices during the summer months, followed by a decrease during the transition to winter months, followed again by an increase during the summer due to the fact that the Los Angeles Unified School District’s summer break starts in June and ends in September. Parents prefer to move during the long summer break rather than dislocate their children during the year. For the same reason, the winter vacation during December may also be a good time – if you’re living in LA – for you to sell or buy your home.
The bottom line…
Are you wondering whether now is a good time to buy or sell a house in Los Angeles? Here is the advice: Buy during late winter and spring. Sell during the summer months. It is impossible to predict what the future will bring, but right now the market is flush, and new homes are rising every day for those who can afford them. Experts advise that you make the most of these opportunities before interest rates grow beyond proportion.
What do we suggest for people who cannot afford these prices and who are shunned by the banks?
Unfortunately, many people can expect to be turned down, and may have to work all the harder to land a loan. But, there are other options. A qualified broker will point you in the right direction.