LA Home Prices Hit Historic High
If you’ve been on the fence about selling your Longwood Highland home, now is the time to hop off.
We are experiencing historic times in our housing market, a time when both buyers and sellers are winning. For buyers, mortgage interest rates are still at all-time lows (though we expect this to change soon), which makes higher home prices easier to swallow. And sellers, of course, are rejoicing at the fantastic prices their homes are fetching.
Publicly recorded sales data shows us that home+ prices in Los Angeles are up by $83,000 over last year, which is a 13% increase! The median sale price is now averaging over $700,000, which is the highest we’ve seen since the recession. This is a range of $480,000 for a one-bedroom to $1.25 Million for a four-bedroom, and there’s of course more variability depending on the part of town. To put this $700,000 price tag in perspective, consider how in 2012 the median sale price dipped below $360,000. Those were some very, very fortunate buyers!
This phenomenon is not limited to Longwood Highlands or even LA. All across the country we are seeing historically high home prices. The uptick here in LA, however, is on the higher end of the spectrum; a 13% rise in home prices in just 12 months is extraordinary! As a Longwood Highlands homeowner, you are presented with a once-in-a-cycle opportunity to enjoy some serious gains (especially if you purchased when prices were at an all-time low 4 or 5 years ago).
Is this trend concerning? We don’t think so, but admittedly it will be a relief when prices normalize a bit. No one wants to experience another housing bubble! While we all love these low interest rates, they are one of the contributors to the higher housing pricing. Low rates drive up demand, and demand drives up price (especially when supply is low, as it has been). The good news for housing is that rates are about to correct. The Federal Reserve is increasing rates, and they are also going up naturally. The other reason we are reasonably sure prices will stabilize is because new housing construction is up. Obviously space is limited here in Calabasas, but as more inventory pops up across the country (and in Southern California), prices here in our cozy community will fall.
So, now is the time to sell! If you’ve been considering selling but wanted to wait until the stars align, I am telling you, my friend, they are aligned! Call my office today and I’ll be happy to sit down with you and estimate how much you could receive for your home.