Whether looking for commercial or residential property, Los Angeles is a great option for purchasing property for personal use or for investment purposes. With prices continuing to rise and inventory so low, however, finding a property that is both affordable and available for purchase has become increasingly more difficult. Nonetheless, Los Angeles continues to be at the top of the list of investor choices and top economists expect real estate prices to continue to increase in Los Angeles well into the next few years.
Los Angeles Tops the List of Investor Choices
According to a recent industry survey conducted by commercial property firm CBRE, which polled real estate investors about their top investment picks, Los Angeles is one of the top three markets for new property purchases and spending. Not surprisingly, New York City joined L.A. at the top of the list, with Dallas-Fort Worth rounding out the top three. Other cities that ranked high on the list were Atlanta, Denver and Seattle, with 65 percent of respondents saying they plan to purchase properties this year. The most attractive type of investment property among respondents was apartments, followed by industrial properties and offices.
Inventory Levels Continue to Be an Issue in Los Angeles
If you are interested in purchasing a home in Los Angeles, the lower-than-ever inventory levels within the market may make it difficult for you to find the home you are looking for. Furthermore, due to the lack of inventory in Los Angeles, prices also continue to increase, resulting in an increase in all-cash offers and bidding wars. Nonetheless, the UCLA Anderson School of Real Estate Forecast indicates that the Los Angeles housing market is not on a bubble. This is because the increase in home prices has been primarily driven by demand and limited supply rather than speculation.
While the Los Angeles housing market may not be in a bubble, it is definitely becoming increasingly expensive and unaffordable. Despite these facts, the forecast has found that Los Angeles is in the middle of a rebound and will likely continue to experience price increases for at least another four years. Ultimately, home values are expected to increase by another 35 percent, but these predictions could be severely altered by the global economy and U.S. elections.
Given these facts, it is easy to see why many investors still consider Los Angeles to be a safe place to invest their money. Of course, Los Angeles is not just a great place for investors to purchase real estate. Los Angeles and the surrounding area also offers an idyllic place to call home. With the beautiful scenery, great weather and lovely homes, you can’t go wrong with a home in L.A.
If you are interested in purchasing a home in Los Angeles or elsewhere in Southern California, contact our team of professional real estate experts. We specialize in luxury homes in the most exclusive communities and neighborhoods in Los Angeles.
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(all data current as of 8/17/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.