Los Angeles is among the popular cities in the US; this has been contributed by several factors including the glamour of Hollywood and the presence of numerous celebrities who call the place home. You should be aware that you’ll always face competition whether you’re looking to buy or sell a property in this city. LA is made up of numerous suburbs and smaller cities, each exhibiting its unique persona. This makes the total population of the area to be approximately 13 million.
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The real estate market in Los Angeles can be termed as a seller’s market. This means the housing demands are greater than the supply; consequently, some of the buyers are normally priced out due to the steep property value. As a result, some of the buyers opt for room sharing as a way of cutting down on the rental costs. You can easily find a reliable person to stay with when you use roommate finder. It can help you save much of your time that you’d have otherwise spent searching for the appropriate person.
For you to fully comprehend the housing market in LA, there are several factors you ought to consider. Here’s an in-depth look at these key indicators in the property market.
The Property Market During the COVID 19 Pandemic
Before the global pandemic of the deadly Coronavirus, the housing marking in LA was somewhat balanced for both sellers and buyers. However, the narrative has seemed to have changed since the virus struck the US, particularly Los Angeles. The stay-at-home measures that were put in place negatively impact the housing market. However, some homes were still receiving multiple offers. The relaxation of these rules made a lot of people rethink and readjust their living conditions with some opting to shift to the suburban parts of the city.
Disparities in Buying Opportunities
According to Redfin, the median house price in LA is around $655,000 in the metro area. This goes to show how the housing market is quite expensive for a good number of buyers. This leaves the people who’re top earners with the capacity to purchase properties in the area. Thus, this situation has ultimately created a disparity among buyers.
Shortage of Housing
Perhaps the largest contributor to the high real estate market prices is the fact that Los Angeles has a shortage of housing. This implies that at any given time, the number of houses is lower compared to those of home buyers or people looking to rent. Only a few sections in LA remains undeveloped. Furthermore, the steep prices have also been escalated by ordinances and zoning laws that govern the city.
Convenience and Affordability
Anyone living in LA knows how awful the traffic can get; therefore, commute time is a very huge consideration when people are choosing a particular neighborhood. Typically, when residents opt to become homeowners, they tend to sacrifice their commute time which makes them move slightly further away from the heart of the city. This is because housing prices on the outskirts are a bit pocket friendly when compared to city center. The novel COVID 19 has also brought its twist to this narrative. Since people were advised to work from home, commuting has ceased to be a top priority for many home buyers and renters. This has enabled many people to go for much larger properties located in the outskirts since they would be making fewer trips to work as time progresses.
The demand for properties with outdoor spaces has never been in greater demand as they are right now. This has been caused by the stay-at-home orders which have made people stay indoors for long periods. Apart from that, homebuyers also prefer larger houses that have backyards and outdoor terraces.
Home Buying and Economic Instability
LA is a city that’s on the list of many people who are looking to change their living environment. However, factors such as high pricing and economic hardship are shifting the goal post of many renters who were looking to cross the bridge to become first-time homeowners. Currently, very few individuals in the low and middle-income tiers can opt to buy a property due to employment instability that has been caused by the pandemic.
Los Angeles is a city that offers many benefits to its dwellers; understanding the real estate landscape in this area can help you make informed decisions concerning renting and owning your own home.