Is it a smart time to buy a house in Los Angeles or continue renting?
The housing market of Los Angeles – 2020
It’s difficult to argue the Los Angeles housing market isn’t sky-high. Where can you go if you’re on top? And who earns enough to buy in this town anyway? This article is focusing on the Eastside of Los Angeles housing market, and what I have seen the past year. Full disclosure, I’m an active full-time Real Estate Advisor practicing on the Eastside of Los Angeles. Every day my clients ask me, “when is the market going to crash?” The short answer is, “the L.A. housing market is not going to crash.” We will see a price adjustment. Fewer buyers and more inventory will cause more buyer options so by osmosis value will adjust down. How far south no one can predict with certainty. A real estate market adjustment between 5-10% in 2020 seems reasonable and likely.
How do I determine real estate value in Los Angeles looking forward towards the end of 2019 and 2020?
If you’re planning to buy a home in Los Angeles this is a reasonable question to be asking. Looking backward to 2018 or earlier isn’t going to help you get a pulse on future real estate value in Los Angeles. But I’ve got good news for all future homebuyers. The market is shifting to favor buyers which means you’ll make out like a bandit! How do I know? Well, call it a mixed bag of intuition and my gut.
In 2016 – 2018 everything that listed on the MLS with windows and a door seemed to be selling in multiple offers. Heck, even if the front door was missing it still sold. Unless a property had a double murder-suicide story a noisy school or freeway across the street, or …. it sold no questions asked. This isn’t the case anymore. The end of June and the beginning of July have shown signs that the housing market is slowing down. My homebuyer clients are more reluctant to pull the trigger. My listing open houses are slower than usual and sitting on the market longer. Of course, the bright and shiny super special homes with tons of value or landmark history, or breathtaking views still sell immediately if priced correctly.
What about the sales statistics or market matrics?
Here is where things get really interesting. If we look at the sold property data of June 1st – 30th 2018 vs June 1st – 30th 2019 the Highland Park CA market value is still climbing higher going up! In 2018 we had 20 single family homes sell with Avg (DOM) days on market 35. In 2019 32 properties sold with 26 days on market. What is that telling you? We sold more homes in less time. Does that sound like a real estate crash?
Highland Park Los Angeles housing market 2020 conclusion:
Either the Highland Park housing market is continuing to climb higher or we’re right now at the beginning of the inevitable shift to the historical buyers market. Not even our trusted mortgage advisors can give us a clear snapshot of what to expect in 2020. Time will tell and it’s ultimately up to the home buyers. If less prospective buyers write offers, demand will lessen, and the value will depreciate. It’s that simple.
The Shelhamer Real Estate Group is a real estate brokerage working with homebuyers and sellers on the Eastside of Los Angeles including, Highland Park, El Sereno, Mount Washington, South Pasadena, Glassell Park, Eagle Rock, Echo Park, Silverlake, Los Feliz, and the Hollywood Hills East.
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