Los Angeles’ real estate market is ever-changing in coherence with the global market. These market changes are caused by several factors such as government-regulated market adjustments, natural disasters, pandemics, to name a few. These continuous changes cause several buyers and sellers to make poor and uninformed decisions because of misinformation or a lack of information altogether.
The process of buying or selling a house is not a piece of cake. Most buyers and sellers dread this daunting process, the reason why they make use of real estate agents. However, it is not advisable to hire the services of an agent without carrying out research yourself. It would be best if you get acquainted with some market technicalities before approaching any real estate deal. Let’s dive into some of these technicalities!
Demand for Housing
The COVID 19 pandemic changed the perspective from which we view life. It changed our perspective on a lot of things, one of the most prominent being housing. The demand for comfortable housing in LA is rapidly rising, and prices are at an all-time high. Now more than ever, there is a dire need for convenient housing. This is because approximately 70 to 80% of our lives were spent indoors during the pandemic. Also, the emergence of remote work and the numerous restrictions against public gatherings forced LA residents to secure convenient housing. The ripple effect of this increase in demand was an increase in the prices of LA houses.
According to the California Association of Realtors, half of the homes sold in 2021 were priced at a $760,000 median price. This is 22.1 percent higher from 2020 but is slightly lower than June’s median, which was $766,000, indicating a fluctuating increase in the prices of homes during the post-pandemic era. Both buyers and sellers can take advantage of these high prices. For example, buying a house made more sense in June than it did in July. For sellers, July was the time to sell their property at a higher price and maximize profits.
There is also an increase in the demand for more spacious houses as people look to make their home offices more convenient and comfortable. This caused a rise in the demand for single-family homes over condominiums. However, the demand for condominiums is still pretty high because they are easier to manage and have minimal maintenance fees. In the end, we’ll have to wait to see what the future holds.
After discussing the above post-pandemic trends, it is safe to conclude that the market has undergone significant changes that might last a bit longer because of the emergence of new COVID strains, such as the Delta strain. However, there is something for everyone in today’s market. If you are a home buyer, it is advisable to monitor the market and purchase a home now because these prices are unlikely to reduce drastically. Home sellers can also make the most out of the sale of their homes and maximize profits during this flourishing period.