Is buying a property in Los Angeles a good investment?

Let’s talk a bit about Los Angeles the surrounding metro area before we discuss what lies ahead for investors and homebuyers. Los Angeles is home to around four million people. It is the largest city in California and the second-largest in the United States. The L.A. metropolitan area with over 13 million people rivals New York in population as the largest in the country. However, being a huge real estate market is not reason enough to invest here.

The Los Angeles real estate market is considered as one of the premier markets for both investors and homeowners. It is also touted as the nation’s least affordable housing market. If you look at the long-term, it’s always a good investment to buy in Los Angeles. It is said that you will always get your money back or you would make a profit, as Los Angeles has a track record of being a great long term investment.

The real estate appreciation rate in Los Angeles is predicted to remain a bit modest throughout this year. The strong demand and tight inventory keep on pushing the prices higher in LA.  According to several real estate experts, the home values in Los Angeles will continue to rise in 2020, but at a significantly slower rate than the nationwide average. According to Realtor.com's recent housing market report, the Los Angeles-Long Beach-Anaheim would see a 0.7% rise in home values in 2020.

The real estate sales in the region would drop by -6.0%. The home prices are expected to flatten nationwide, increasing by just 0.8%, and buyers will continue to move to affordability, benefiting mid-sized markets. The real estate appreciation rate in Los Angeles in the latest quarter was around 0.66% which equates to an annual appreciation rate of 2.68%. Again, this is a good sign for buyers and investors as the price forecast shows a modest increase. Let us discuss some more housing market trends which make investing in Los Angeles real estate potentially profitable for new investors in the long term.

Los Angeles Housing Market Prices & Trends 2020

We shall now discuss some of the most recent Los Angeles real estate trends & news, and compare it with the past couple of years. We shall mainly discuss median home prices, inventory, economy, growth, and neighborhoods, which will help you understand the way the local real estate market moves in this region. Los Angeles is also one of the hottest real estate markets in the nation. In the past ten years, the annual real estate appreciation rate has amounted to 6.34%, according to NeighborhoodScout.com. This puts Los Angeles in the top 10% nationally for real estate appreciation.

Post a Comment