Everything in Los Angeles is a pretty dichotomy, and real estate in Los Angeles is no different. We’re on the top of the national buyout list, our employment is about 10%, and we’re literally going to break down as a city and state, so it should be easy to pick a good low-cost deal in Los Angeles? Wrong .... for several reasons that support one thing ... incredible demand. Let's look at some of the best.
o Industry. In Los Angeles, there are strong regional industries, among which are entertainment and protection. We may have high unemployment, but our main industries are not at risk, as in other parts of the country. The entertainment industry is pretty attractive for people following their dreams.
o Weather - the best weather in the US is debating in Los Angeles. This is a very attractive moment for people and is a significant part of local demand. Our 300 days of sunshine at 70 degrees will make people come here for a long time.
o Profitable job opportunities - Los Angeles is a financial metropolis and offers more unique business opportunities, profitable jobs and investments than any other place within 2000 miles. It is to such an extent that it almost begets itself. The household income of $ 125,000 is fairly average, and this high import supports demand and the price level of our housing.
Culture - Los Angeles culture, for good or bad, is largely based on image. There is often a lot of material behind this, but at the end of the day you are the one you perceive. Car, clothes, house, neighborhood, etc. It seems rather small, but its like this, and the culture of the hips requires impressive things that support the high demand for homes here.
o Cheap money - let's face it, we can bypass the flow financially as a nation, but mortgage money is now ridiculously cheap. A 30-year loan of 5.75% is a gift. For those old timers who did business in the 70s or 80s, this is too good. And while new loan recommendations may attract 33% of potential borrowers, low rates still create high demand for housing.
With all these aspects at work when redeemed for pike, this is very different from what they say in Las Vegas. We have a great demand for these houses. Of course, demand is significantly less than 2-3 years ago, but it is still very thriving. Of course, we have a lot of inventory, and our sales prices are falling, but real estate is moving. Deals end. Banks do not need to undermine the market to move their foreclosures. They can sell and sell their property at or just below the market.
To counter this, take a look at real estate in Las Vegas. Demand is very, very low. Their industry (tourism / gambling) is bad for these times. If banks want to sell their repurchase rights, they have to cut the market down by 5% or 10% or even up to 20% in order to sell their property. This is a massage. Houses are sold at 20% below the cost of construction, assuming that you get land for free!
For all these reasons, the demand for real estate in Los Angeles is still strong. Yes, it is smaller than it was, and yes, it is lower where we would like it. However, demand is still more than enough to sell 1200-1500 square feet of a 2-bedroom house with 1 bathroom for 700,000 - 800,000 dollars, and this is perceived as a good deal. Often, real estate brokers forget to explain macroeconomics to their clients.
