Is it a good time to buy a house? Yes! It is a great time to buy a house in the Los Angeles area.
Why is it a good time to buy?
- Prices are rising. Home values in Los Angeles are no longer “bouncing along the bottom” of the real estate cycle and sales prices have risen dramatically in all areas, especially those in the most desirable areas of the Eastside. Silver Lake, Echo Park, Atwater Village, Los Feliz, Highland Park, Eagle Rock, Mt. Washington and every other neighborhood in NELA (NorthEast Los Angeles) all saw huge home price increases last year - if you are a homeowner in NELA your property is likely to be worth 20% more than it was a year ago. 2014 has seen a continuation of this trend - prices are still going up.
- Interest rates are still low. Interest rates on 30-year fixed rate home loans remain well under 5%. Mortgage interest rates have been so low for so long people are beginning to think this is “normal.” Nothing could be further from the truth! The less-than-5% rate on a 30-year-fixed-rate mortgage is an unbelievable opportunity we are unlikely to see again in our lifetimes.
So, what does it all mean if I am considering buying a home in Los Angeles in 2014? Do not wait! Real estate and money will be more expensive next year...
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