Thinking of buying a home in the Los Angeles area? You may not find a better time. But whether you’re a first-time buyer looking to make your dream of home ownership come true or a seasoned investor scouting for profitable deals in the Southland region, understanding the Los Angeles residential real estate market is your first step to buying in the area.
I don’t want to get all rah-rah about it; Southern California’s residential real estate market has taken a huge hit since its peak in 2006. But for those looking for a long-term investment, there are really three great reasons to buy a house in the Los Angeles market now: prices, prices, and prices. The same is true for people looking for a second home, or savvy investors searching for a good market to enter.
Let’s consider all the positives, starting with… housing prices! If you’re looking for a house to buy and live in for the foreseeable future, prices remain excellent. Headed into the summer of 2011, we are definitely in a buyer’s market. Consider this: the house that was selling for close to $600,000 four or five years ago is now on the market for 60% of that price.
The median house price in Los Angeles is now hovering around $320,000. Even though that price is down about 3% from this time last year, that shouldn’t be a factor for buyers looking to purchase long-term residences. The decline in median value has started to level off after its sharp drop of a few years ago, and organizations such as DataQuick, a real estate tracking and reporting company that takes a no-nonsense approach to the market, are pointing to signs that the market may be heading back to normal.
For the long-term buyer, people planning to hold their properties 15, 20, 30 years or more, small fluctuations in the market shouldn’t matter. You can buy a piece of residential real estate in Los Angeles for a great price and, provided you qualify, get an excellent interest rate on your mortgage.
Investors, or those looking to hold properties for the short term, are in a different position, but there are many positive factors for them as well.
As of mid-June, larger investing groups were vitally responsible for helping keep the California and Los Angeles residential real estate markets churning, according to industry reports.
Larger investor organizations were selling distressed properties faster than their bank counterparts, DSNews.com reported, helping to clear up the surplus of inventory that is essential to stabilizing the housing market.
For mom-and-pop investors looking to work with more seasoned third-party investment groups, this presents an excellent opportunity to enter the market with tons of benefits (good prices, experience, end buyers) and minimal downside.
So whatever your intention in purchasing in the Los Angeles market, now is a perfect time to get started!