California’s housing market has been on a slight decline this year, leaning toward what could be considered a buyer’s market. In addition, real estate interest rates have also taken a dip, making mortgages more affordable than in previous years. What this means for you, the LA home buyer, is that there has never been a better time to purchase real estate in LA. You could possibly even look at homes in a higher price range than you originally expected and come out with lower payments. But aside from the market, here are a few other things you can expect.
Recent reports show that LA currently has plenty of sellers without enough buyers to move the properties. While this is expected to pick up some time later this year, experts have some ideas as to why it happened. First of all, the millennial rush to own their own homes seems to have slowed down in the past couple of years. Whatever the reason for that, they believe it has created a smaller pool of buyers. Secondly, recent predictions have indicated that we might be on the cusp of another recession, which has frightened some people into delaying home-buying plans.
The current market slump may sound discouraging, but it actually gives the buyer an enormous amount of leverage. Sellers are looking to unload their properties, but they can’t find enough buyers to do it quickly. This means mortgage companies also have less business than usual, and the interest rates are plummeting. They are practically scrambling to find willing buyers. If you’re in the market to buy house Los Angeles, now could be the perfect time to do so. After all, property values are likely to start increasing again soon.
The median selling price for a home in Los Angeles is $618,000, which is slightly higher than it was last year. However, the median family income for the area is about $65,000. For residents who fall into that category, LA home prices can be a bit of a stretch. But with the falling interest rates and low number of buyers on the market, shoppers now have a lot of bargaining power. At the current interest rate of about 4.5 percent and a 20 percent down payment, the monthly mortgage on a median-priced home would be about $2,500.
You can find several reasons to decide to purchase a fixer-upper in LA. For one thing, even though the market has taken a dip, it’s still a little high for some families. Buying a home that needs some work could save you a lot of money. The other reason to buy a fixer-upper, though, is to rent it out or flip it. The average cost to rent a two-bedroom unit in LA is $1,760, but can climb closer to $3,000 in more affluent areas. Of course, that’s not the only way to make money with rentals. Many people also rent out rooms or entire homes on sites such as Airbnb. Either way, you could easily cover the cost of your mortgage and come out ahead in the long run.
California may be known as the Golden State because of the gold rush, but the sunshine and golden poppy fields make it true to its name. It’s a shame to waste time indoors with all the beautiful weather, and most Californians don’t. At last count, more than 40,000 swimming pools are in the LA area, with acres of immaculate landscaping to surround them. In other words, owning property in the area probably means you’ll need to become familiar with the best landscapers LA.
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