3 Top Trends to Be Seen in the LA Real Estate Market in 2022January 15th, 2022 by Administrator
Los Angeles is a prime location on the West Coast where every year, a large number of people come looking for a luxury lifestyle and accomplishing their dreams. With that being said, many people also dream of a life outside of Los Angeles or need to relocate from LA for work, marriage, or some opportunity. No matter whether you are planning to buy, sell or invest in the LA real estate, you must know what’s going on in the LA housing market that can influence your decision, timing, and ROI.
So, let us walk you through some of the latest trends in the Los Angeles real estate market.
Housing Affordability: Low and Slow-paced Mortgage Rates
Experts are predicting that mortgage interest rates will increase as we move ahead in 2022, but the speed at which mortgage rates increase will be very low. This trend shows that 2022 is an attractive time to buy a home.
The anticipated mortgage rate is 4 percent in 2022, which is still an excellent rate when it comes to securing a mortgage.
The availability of low rates will also encourage current homeowners to move to a larger house. However, the Covid-19 pandemic isn’t over and its emerging variants are making the situation uncertain.
Housing Inventory: Limited supply and higher price and negotiations
It was surprising to see how a pandemic and unemployment crisis led to an increase in LA county home sales. While some factors were pointing towards the lack of means or mobility to buy a home, other factors created a seller’s market where there were more buyers than homes in LA.
The Month’s Supply of Inventory (MSI) for the LA metropolitan area was recorded 1.9 months in the third quarter of 2021 as compared to LA County MSI 2, California MSI 3, and national MSI 5.7.
Hence, the limited housing inventory in the LA metro area than the rest of the nation will continue to drive the home prices upward in 2022. However, we can expect a drop in bidding wars over houses for sale this year. But competition for desirable and median-priced homes will remain the same.
Home Space Expansion: More buyers looking for larger homes
After spending two years in the pandemic, people are valuing homes with larger space available to roam around, exercise, and live life more comfortably. Many of us have realized that we need more space to grow, move, and spend quality time doing cooking, gardening, interior decorating, and other home-based hobbies.
As a result, this year, more buyers are expected to favor larger homes over one-bedroom apartments and condos. Therefore, the increased demand for homes in LA that can live up to the expectations of 24/7 work and exciting home life continues to be a great indicator of the trend – larger homes will be more desirable.
Are you thinking about buying or selling a home in LA? Connect with a local real estate agent to get a picture of how the LA real estate market is doing and to find the best deal for you.