It is no secret that Los Angeles has been undergoing a real estate boom: the latest Zillow “Real Estate Market Report” puts the median price for Los Angeles and O.C. home at $604,400, a rise of 6 percent compared with last year. Meanwhile, the New York Times California Today edition this morning cites a new report from data company CoreLogic of $1 million homes in the state in the first part of the year have risen, while sales for less than $500,000 were at an all-time low.
The good news is is that is that while the market is at a high point, it is also quite stable. A case in point is this Q&A with Robert Sulentic, chief executive of Fortune 500 CBRE Group over at LAtimes, a nice overview of the state of affairs that hits all the main points of why LA’s market position is stable and confident. Reason one: Los Angeles, unlike SF and San Jose, has strong job growth. Secondly, a city with historic neighbourhoods, scenic mountains and beaches, Los Angeles is also quite expansive, making it an attractive place to tech industry that’s feeling the lack of office space in Silicon Valley. LA’s emissions program is another big draw, particularly for millennials that are looking to move to a cleaner and more environmentally friendly city.
Sulentic goes on to say that he expects that the economy will sustain growth into next year and describes the market at its most organized that he had ever seen in his long career: “The industry is capitalized and managed more transparently and thoughtfully than it has been historically, with less easy money floating around. Banks got smarter, equity sources got smarter and developers got smarter and more conservative. Compared to 25 years ago, the business is more transparent, professional and institutional. That makes a crash less likely.” And, might we add, the interest rates are low, so this remains a great time to become a home owner. The market will prove challenging to navigate without guidance, so do reach out if you are thinking of buying or selling- we are just a message (or a phone call) away.