Reflections on the economic and housing outlook on Thanksgiving evening in the Greater Los Angeles area.
Now that we are here and another Thanksgiving day is almost in the books, as we are relaxing after being with friends and family I thought it would be timely to start looking ahead to some observations about the Greater Los Angeles real estate market.
Before I do that, I need to preface my comments with the fact that there are many people in the economic sector, billionaire investors and small to large investors who are bullish on the Real Estate and Economic outlook for 2014.
I will keep my observations to the greater Los Angeles real estate market, since that is the market with which I am most familiar. Overall, the housing market has improved in the past year and I expect it to continue into 2014. I still have concerns that the economic recovery is fragile and the employment numbers (or should I say the unemployment numbers) will have a large impact on homeownership.
The Federal Reserve’s interest rate increase will have a detrimental impact to the affordability index on West Los Angeles and vicinity for first time home buyers, i.e., eliminating many buyers who are on the cusp of being able to step into the Los Angeles real estate market.
Equally challenging to home sales will be the long-term effects of the mortgage finance reform, the mortgage interest deduction changes and the affordable health care act. These factors will impact the real estate market even here in Los Angeles.
One thing is for sure - people still will need to sell and buy homes. Hence the housing inventory will also have an impact as to what the home prices will be like in 2014. Up to this point, we have seen price increases from the low of 5% to the high of 68% depending which part of greater Los Angeles you were looking at. World-wide Investors are still seeing values and opportunities in the Los Angeles real estate Market, a clear indication that the real estate activity will continue in a positive direction for 2014.
I hope this blog will help you in making some of your decisions about buying or selling a home. Should you need more specific details and advice, please does not hesitate to reach out to me directly for a “no obligation consultation”.
If you are considering buying or selling a luxury home, an ultra luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 or homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com. I am a pet friendly realtor and I contribute a portion of my commissions to local animal rescue organizations.
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