Information About the Market

My observations:

2017
Prices continue to push the upper limits and the Los Angeles real estate market is strong. Good inventory is on the decline making it more competitive than ever to close a transaction. Many deals are still "all cash" as bank loans have become increasing difficult to obtain with the banks being "income centric" as opposed to "asset centric." Dodd-Frank has had a chilling effect on lending. All the more reason to find professionals that can help you with the financing you require. Investors are also using Air B&B and VRBO to help fill their properties with short-term and perhaps more lucrative tenants. A property that would at one time come onto the market is now being rented out by owners using short-term rentals. This is practice is being effected by local ordinances and it is wise to check out the restrictions before investing.

2016
The Los Angeles market continues to roar along. Rents to are heading higher. Investors seems to undaunted by the high prices and still find Los Angeles to be a good place to invest in real estate. There is pressure from China and greater Asia for property in the US and Los Angeles is close to the top of the list of possible places to invest. Many high-end spec homes that have been years in the making are coming to market putting some pressure on older existing inventory.

2015
The Los Angeles market has really taken off and continues to fly high in 2015. Low interest rates and a continually upward motion to the market has investors and speculators sending many properties into overbid. The “all cash” deal is ever present, making those that need to buy with a loan at a distinct disadvantage. Rentals too have seen a dramatic increase in Los Angeles with affordable housing becoming more and more limited. The question remains what happens when interest rates rise? Is this another bubble just waiting to burst or is the demand for housing and investing in Los Angeles so great, especially with the increase interest from Asian and European buyers, that the pull back, when there is one, will be minimal?

2014
So far in 2014 the larger market seems to be taking stock of the run-up from 2013. The high-end is still setting record prices in Southern California and the market has been fueled by global interest in Los Angeles properties. Increased inventory and the difficulty in getting loans still effect the lower priced properties. With the higher prices of 2013 factored in, it is important to have your property properly priced to get a prompt sale. There is a jump in the number of condo listings with folks interested in making the transition to a single family house before interest rates change. As of April 2014 fixed rates are holding around 4.5 %.

2013
The Los Angeles market made a tremendous upswing in 2013. Low interest rates, investor participation including Wall Street groups, more cash buyers, spec builders and lower inventory all contributed to prices rising in 2013, especially in the highly desirable Westside. Rents are definitely on the rise as well.

2012
The market is still recovering. There are many short sales and foreclosures and properties that are well-priced are getting multiple bids. Financing is still an issue especially on high-end properties and there seems to be more cash buyers in the market right now even though interest rates are at an historic low. Los Angeles rental prices increased in 2012 and seem to be holding. While inventory is down from last year there are still many opportunities.

Holmby Park Realty specializes in Bel Air Real Estate and Holmby Hills Real Estate