The Los Angeles housing market has been drastically impacted by the pandemic, with the median home value being the direct result. According to the latest research on real estate trends, the market could be stalling. A total recovery of around 110,000 annual home sales is expected to occur in the years after 2025, when end-user demand in Los Angeles County is reinforced by a large confluence of baby boomers and first-time homebuyers who are attracted by the recovery of employment. The introduction of coronavirus has changed the rental landscape across the country, and Los Angeles is no exception.
Along with the rest of the state, home prices in Los Angeles soared during the Millennium Boom, then fell below average price levels during the financial crisis and have been rising out of the rubble ever since. Real estate in Los Angeles has performed so well for investors in recent history that the world is taking notice. Current trends in the Los Angeles housing market seem to be gaining momentum, and those entering now may be happy to have done so. Thanks to lower loan costs, increased demand, and a clear lack of inventory, housing in the Los Angeles County housing market has appreciated at a dizzying pace.
The Century 21 Realty Masters area agent told the Los Angeles Times: “I have buyers who are now paralyzed. Most of the current trends in the Los Angeles County housing market are the result of COVID-19 and its impact on the housing market. Even in the face of historic appreciation, the Los Angeles housing market seems poised to benefit smart investors in the coming years. Real estate in Los Angeles came to a screeching halt as unemployment soared and people were less inclined to spend their money. The housing market is showing signs of being affected by rising levels of inflation and mortgage rates as the year progresses. Los Angeles has taken a big step forward with a Pilot Program that gives 1,000 selected residents guaranteed monthly income.
This could be a game changer for those looking to purchase a home in this area. It's difficult to predict what will happen with home prices in Los Angeles over time. However, it's clear that there are many factors at play that could influence prices in both directions. With an influx of baby boomers and first-time homebuyers expected to enter the market soon, it's likely that prices will continue to rise. But with inflation and mortgage rates on the rise as well, it's possible that prices could start to level off or even decrease.
