Living in West LA is a dream to many people. The surf, sun, sand, schools, and shops all come together to make the region the ultimate paradise. And what better way to live in paradise than to own a piece of it?
If you’re thinking of buying a home in Los Angeles (or anywhere along the Southern California coast), it’s important to consider all of the aspects of what you are purchasing. Of course the old saying “location, location, location” still rings true, but market trends, home availability, and budget are also important factors that you can’t ignore.
The time has never been been better to invest in a West LA property. How do you know? Well, to understand the West Los Angeles real estate market, first let’s look at local as well as nationwide trends.
U.S. Real Estate Market Trends
Over the past year, the market has dropped. That means nationwide — and especially in urban areas — it’s becoming a buyer’s market. People have been holding off on buying homes, which in turn has caused home prices to drop as sellers increasingly need to unload their properties.
As rents continue to climb and interest rates continue to plummet, people who might not have been considering buying a home a year ago may now very well qualify for an affordable loan. According to data from Freddie Mac, interest rates fell even further than last year, decreasing from 3.93% to 3.43% on a 30-year, fixed-rate loan. One Chicago-based RedFin agent remarked “I’ve been getting calls from listing agents asking if my clients are still interested in homes they saw several days or weeks ago, letting me know they’ve dropped the price.” This overall stabilization of prices is great news for prospective homebuyers.
And you might not even have to sacrifice space for budget nearly as much as people have in the past. The National Association of Realtors® reported this summer that “…across 40 large U.S. cities, 55 percent of homes for sale last month were affordable for a working-class household and still between two and four bedrooms in size. Homes of this size matter because affording a home that’s big enough to comfortably fit a family is more difficult than affording a studio or a one-bedroom condo.”
2016 California Real Estate Market
California’s healthy labor market in 2016 led to an increase in salaries, which means prospective homebuyers are in a great position to finally find the home of their dreams. Los Angeles real estate values in particular also tend to drop in the summer, which has historically proven to be a great time to find a new home at a good value before demand increases in the fall.
Current Los Angeles Real Estate Statistics
Los Angeles real estate YOY has actually been shown to be more desirable, yet often less expensive than other major metropolitan areas like San Diego or San Francisco. Curbed LA recently reported that LA-area mortgage prices are down as much at 18%, making it an attractive time for buyers to find the home of their dreams. These interest rates, coupled with with increasing job rates in Southern California, prove that it’s a wonderful time to be a buyer in Los Angeles.
Why The West Los Angeles Real Estate Market Is A Buyer’s Market
The West Los Angeles real estate market has historically catered to higher-end clientele looking for luxury Los Angeles real estate. (Everybody has seen the movies — what better place on Earth is there to live than coastal LA?)
While the luxury housing community doesn’t tend to mimic national trends for low- and mid-priced homes, less demand has led to a similar availability of luxury homes in the western part of Los Angeles. Plus, it’s not a stretch to assume that people are always going to want to live in LA. Investing now in a coastal Los Angeles home is likely going to be a pretty safe bet in the long-term, but finding the right agent to make your search as easy as possible is a crucial step in the process.
How To Buy In West Los Angeles Now
If you’re ready to dive into the West Los Angeles real estate market, the first thing you need to do is find an agent that you trust. They must be familiar with the greater LA area and have a finger on the pulse of the market that changes daily. Only you know if you’re ready to invest in paradise, so if you are, feel free to call me: Nathaniel Pitchon-Getzels (CalBRE# 01884947) at (818) 535-5337 for your free expert consultation today.