Los Angeles Real Estate Forecast: Fall 2016
What Does the Rest of the Year have in Store for the Greater Los Angeles Area Real Estate Market?
Throughout the last two decades, the Greater Los Angeles Area has gone through some notable economic changes. The city has more than 500,000 well-paying manufacturing jobs while gaining thousands of tourism-related jobs – for much less pay. The healthcare industry is growing, but with what seem like regular government and budget cuts, pay and stability are still a subject of stress for many in the field. Los Angeles has also grown, so much so that the Greater Los Angeles Area is now home to more than 17 million people. With such growth and so many changes that are continuing to take place in regard to the city’s economy and stability, it is no wonder that so many people are Leary of making that jump into purchasing a piece of real estate.
Home prices in Los Angeles continue to rise, partly due to the fact that vacant space in the city is scarce and therefore becoming more and more valuable. Real estate prices have increased approximately 30% over the past three years and are expected to continue to rise.
Where in the Los Angeles Area have Real Estate Prices Increased the Most?
Real estate prices in Los Angeles have increased the most in areas that are closest to the main hubs of the city. These include West Hollywood, Venice, Beverly Hills, Malibu, and Manhattan Beach.
Where in the Los Angeles Area have Real Estate Prices Increased the Least?
Everywhere in Los Angeles has experienced some sort of increase when it comes to the price of real estate. However, areas that are located a little bit further out from the heart of the city are still considered to be more affordable and have experienced a much lower increase in real estate prices. These areas include Torrance, Riverside, and San Bernardino.
What to Expect: LA’s Real Estate Forecast
Due to the fact that home prices are expected to continue to rise over the next few years, due to the fact that they are already too high for many to properly afford, the risk of mortgages defaulting is high. This makes mortgages a tricky and difficult investment, especially for first-time homeowners and those who are looking to increase their loans.
Over the next few years, it is expected that real estate development in throughout the Greater Los Angeles area will bring a notable amount of housing to the area – primarily in communities that are further away from the city center. This development, however, is not expected to lower the price of houses in the area, but merely try to keep up with the demand it. Many of these developments will be in the style of condominiums, allowing for some development in areas that are already low on vacant land. Estimated developments include approximately 100,000 new apartments in Los Angeles County, and about 30,000 new apartments and homes in San Bernardino.