Is It the Right Time to Buy a Home in Los Angeles?February 12th, 2021 by Administrator
Do you dream to have your own home in a beautiful place like Los Angeles? If yes, Encino is one of the amazing places in LA to live in with your family as it provides you with an amicable and vibrant environment where you can live your life at your own pace rather than being lost in the hustle-bustle of the big-city crowd. However, when it comes to buying a new home, it is natural that your mind questions the state of the housing market in a particular place. After all, it is critical to know how much you can afford and at what prices and rates houses are available in the market.
So, today, we will talk about the current state of the housing market in Los Angeles (in 2021).
Los Angeles Real Estate Market Overview
Undeniably, the pandemic slowed the real estate market for a while. Fortunately, the negative impact started fading by the end of 2020. According to C.A.R.’s December 2020 Resale Housing Report, a year-over-year increase of 31.6% is recorded in the sale of single-family homes in Los Angeles.
Now, the question is what are the predictions for Los Angeles Real Estate Market in 2021?
Since 2012, the median home price has increased in Los Angeles by around 99% – from $399,000 to $794,935, as per Zillow. Similar data is revealed by NeighborhoodScout.com as they recorded the growth of 94.32% in Los Angeles real estate in the past ten years.
This means Los Angeles real estate market is experiencing an annual appreciation of 6.87%. In fact, during the last year, Los Angeles’s property annual appreciation rate was estimated to be 7%.
By observing this trend, experts inferred that prices of LA homes will increase by 10.5% in the next 12 months. The current median home value in LA is holding at $794,935 and is predicted to reach $878K by November this year.
LA Housing Market Experts forecasted that Los Angeles is going to experience a shortage of supply and an increase in demand for housing, which will increase the prices in 2021.
Besides, low mortgage rates will further strengthen the real estate market and continue to grow the value of homes in LA. As a result, the trend of higher prices is appealing the LA home sellers.
So, will buyers benefit from investing in a home in LA?
While buying a house in a market where home prices are increasing might seem like an expensive option, it also points toward the fact that you are investing in a healthy market where the value of your house will be high. Due to low mortgage rates and ease of restrictions, most buyers think that it is a very good time to buy a home in Los Angeles. As soon as more houses will be listed, the prices are also expected to go down a bit.
https://gittarealestate.com/However, to get the exact overview of the real estate market of Los Angeles and see if it is the best time to invest in the Encino or other neighborhood housing market, it is always best to seek the expert advice of local and qualified professional real estate agent.