Los Angeles luxury home owners are finally feeling the effects of the housing recovery with home prices that continue to rise. In 2013, home prices rose sharply around Southern California, helping those with negative equity back to a more stable place. Negative equity situations occur when a home owner owes more than their home is worth.
Experts say that more than 215,000 home owners in Los Angeles and Orange counties moved out of negative equity situations in 2013. During the third quarter, 13.2 percent of Los Angeles-area home owners were still underwater, down from 25.9 percent during the same period in 2012. Rising home prices are credited with helping home owners move out of the red.
Real estate analysts say that it’s exceptional news that the Souther California real estate market is moving in the right direction and it’s doing so at a quick pace. Underwater mortgages nearly crippled the housing market during the economic downturn, with many home owners falling into foreclosure because they simply could not afford their mortgages.
But now that home prices have risen back to their pre-recession levels, confidence has returned for both home owners and buyers around Southern California. During the spring and summer buying periods, people came off the sidelines like they hadn’t in years, hoping to break into the bustling real estate market. The intense demand coupled with a relatively short supply helped push prices higher, giving home owners their equity back.
For many, this gave them the opportunity to list their homes for sale and even turn a profit in many cases. This was especially true for the Los Angeles luxury real estate market where international buyers and investors flocked to the marketplace. Bidding wars were commonplace during the busy spring and summer buying periods, with many people frantic to take advantage of historically low interest rates.
Since the spring time, affordability has declined, which has caused the market to cool. Experts at DataQuick, a real estate information company, say that the median price of a Southern California home was about 22 percent higher in October than it was the previous year. Real estate experts point out that prices are still below their peak in many places, and that about 43 percent of underwater home owners still owe more than their home is worth.
This is true in parts of Los Angeles where some owners owe more than double their home’s present value, and also in the Inland Empire, which was hit particularly hard during the economic downturn and housing crisis. Places like Riverside and San Bernardino counties still have the largest percentage of underwater home owners out of everywhere in Southern California.
There are so many reasons to consider becoming a Pacific Palisades luxury home owner. For more information about Pacific Palisades luxury real estate, please contact our expert team of luxury property agents. We would love the opportunity to assist you.
Homes in Pacific Palisades, California between $6,000,000 and $8,000,000
$6,199,000 : 1015 CHAUTAUQUA, Pacific Palisades7 beds, 7 baths
$6,735,000 : 15515 VIA DE LAS OLAS, Pacific Palisades4 beds, 5 baths
$6,900,000 : 1012 RIVAS, Pacific Palisades4 beds, 3 baths
$6,995,000 : 1466 SAN REMO Drive, Pacific Palisades4 beds, 5 baths
$6,995,000 : 15301 WHITFIELD Avenue, Pacific Palisades5 beds, 6 baths
See all City of Pacific Palisades Luxury Homes For Sale.
(all data current as of 10/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.