From the foamy blue waves of the Pacific Ocean to the rolling hills of Griffith Park to the star-studded movie studios of Hollywood and beyond, Los Angeles has long beckoned to dreamers and doers. With a population of nearly 4 million and rapidly increasing home prices, the City of Angels has developed a reputation as a renter’s haven. According to Curbed, 64% of Angelenos rent rather than own a house.
Still, homeownership remains a priority for many who call Los Angeles home. For those who are thinking about buying their first home in this West Coast wonderland, it’s important to consider the pros and cons of buying in a buyer’s market versus a seller’s market. A buyer’s market is referred to as a real estate market that favors the buyer because the number of houses for sale exceeds the demand. This is an optimal time to buy a house because you have a higher chance of getting a good deal and are better able to negotiate a lower price. Because competition is low, houses sit on the market for extended periods of time. This makes it easier for you to find a house within your price point. A seller’s market is the inverse. Buyers have a harder time finding homes in this environment because of the limited housing supply. It’s an ideal setting for sellers as they can raise prices because of the high demand.
For several years after the recession, Los Angeles was considered a seller’s market. But according to recent research, as well as insights from realtors, it is now a more flat market. The Los Angeles Times found that home prices had dropped by nearly 3% between June 2018 and June 2019. According to the article, “While data shows a roughly flat market, [Christopher] Thornberg said buyers can be slow to respond to changes in mortgage rates or to change their perception that prices are bound to decline. By year’s end, he predicted, sales would be up and price growth will have accelerated to around 4%.” However, recent reports from Zillow (cataloged in Curbed) indicate that homes are staying on the market longer, and fewer are selling above asking price. This creates ample opportunity for would-be buyers who want to buy into the market.
In short, if you’re looking to buy in Los Angeles, there may be no time like the present. If you’re looking to buy a home in the Los Angeles area, one of the most difficult first steps is simply narrowing down which neighborhood you prefer to live in. Do you like downtown or the suburbs? Are you a Westsider or Eastsider at heart? Would you prefer to be near the heart of Rodeo Drive or the grit and glamour of Sunset Boulevard?
If you’re looking to buy a house in the Beverly Hills area, contact Rochelle Maize to find out what types of homes are currently on the market in the area. With years of experience in Beverly Hills real estate, Rochelle can help you find a house that matches your style and needs.