Los Angeles housing prices shattered records in 2017, surpassing prices that lead up to the 2007 mortgage crisis prices.
So Are We In A Real Estate Bubble?
Experts don’t think so. CoreLogic, a company that tracks real estate, released a report stating that prices across Southern California, when adjusted for inflation, are still 13 percent below their pre-recession peak. AND…they are predicting that Los Angeles County prices will increase another 6.4% before the end of the year. The difference between now and 2007 is that prices are being fueled by a lack of supply not risky lending practices.
If you have been sitting on the sidelines thinking prices are going to come down you may have missed your chance. In March, there were fewer homes for sale in all six Southland counties than there were the same month a year earlier, with declines ranging from 2.8% to 18.3%. Almost every new listing receives multiple offers and sells over the asking price. Los Angeles countywide median sale price is $585,000. Southern California’s median home price jumped 8.4% in March from a year earlier, setting a new all-time high.
If you are thinking of getting into the market as a buyer make sure all your ducks are in a row BEFORE you even start to look at homes. Talk to a lender and know how much you can afford and be prepared to compete with other buyers. Sellers are asking buyers to forgo some contingencies including the appraisal so discuss what all this means with your Realtor. This is a competitive market and if your offer is not packaged properly you will lose out in multiple offers every time. Find a Realtor you trust and listen to her suggestions. CONTACT US and we will tell you how we help our buyers get their dream home in this seller’s market.
For More Information Check Out Ultimate Home Buyer’s Guide below