Los Angeles has never been an undesirable community in which to live or work, but recent developments and growth are contributing to it becoming an even more exciting place to be. Although the center of the technology world has long been considered to be in Silicon Valley, Los Angeles is making a run for its money with the influx of new businesses, entrepreneurs and investors coming into the city. Because of this and other reasons, more and more home buyers are looking to the Los Angeles region to work, live and play.
According to Altos Research, a California-based real estate analytics company, the average home in Los Angeles is selling at a pace of about 60 days, which is year-over-year much faster than January numbers in the past five years. Days on market is an incredibly important figure to determine overall strength of the local housing market as it shows the demand for homes and presence of buyers on the prowl for a new home.
The growing downtown sector of the technology industry isn’t necessarily a replica of the Silicon Valley industry, as it still has a unique LA flair to it. While skewed toward e-commerce, there is also a lot of fashion-centered technology companies sprouting up covering the entire sector.
“There definitely is tons going on: lots of new start-ups and co-working spaces and nightlife and restaurants opening all the time,” developer Kai Powell told the Los Angeles Times. “For people who are excited by that kind of thing, I don’t think there’s any other place.”
Higher mortgage rates are not deterring buyers
Luxury home buyers are often able to get a mortgage for a good rate, and as of recently they’ve been playing an even bigger role in the housing market. According to the Mortgage Bankers Association, mortgage rates jumped to the highest averages of the year the week ending March 6. Total mortgage applications fell 1.3 percent from the previous week on a seasonally adjusted basis, which was largely due to the 3 percent fall of refinancing applications.
Home purchase applications increased 2 percent in the first full week of March, which came to a 2 percent higher year-over-year level as well. This rate increase was majorly influenced by high-end buyers who, on average, purchased a loan of $294,000. According to MBA data, this was the highest ever average recorded.
“The record high average loan size indicates that the strength of the market remains at the high end,” says Michael Fratantoni, MBA’s chief economist. “We have not yet seen an influx of first-time home buyers.”
The 30-year fixed-rate mortgage ended the first full week of March at 4.01 percent, which was a slight uptick over the previous week’s mortgage rate of 3.96 percent. It was also the first time in weeks that the rate slid past the 4 percent mark.
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(all data current as of 8/17/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.