I often read reports about real estate so that WEA can advise our clientele appropriately. Most of the available information applies to all market segments and the nation as a whole. However, I recently came across two reports which clearly indicated that, as expensive as Los Angeles seems to be, it is a bargain relative to other metropolitan areas around the country.
The most recent Standard and Poor’s/Case-Shiller 20 City Home Index states that the sale price index increased by 5.4% year-to-year in April following a 5.5% gain in March and that home values are just 9.6% below the historic peak of 2007. Shrinking inventories, a healthy job market, and historically low interest rates have helped maintain strong demand. The number of total listings has decreased by 5.7% from one year ago. Additionally, home prices rose in ALL 20 major housing markets, with Boston, Charlotte, Denver, Dallas, Portland, San Francisco and Seattle reaching record highs. Notice that there was no mention of Los Angeles in these record increases.
The Mark Company tracks West Coast condominium trends, and they recently reported that the average sale price of new condos measured as price per square foot is as follows: San Francisco $1303; Seattle $801; Los Angele $780. The results are similar regarding the sales price of resale condos price per sq ft: San Francisco $1072; Seattle $652; Los Angeles$564.
Given this data, Angelenos should feel very comfortable with our place in the market. Don’t be afraid to buy.