Given the low mortgage rates, 2020 is gearing up to be a great year for the housing market. This is on the heels of several good years for the market; housing prices have increased by 5.1% since June 2015. That’s not to say the market has been in a state of perpetual growth, the growth rate has oscillated significantly over that timeframe; however, all indicators suggest that home ownership is an incredibly profitable investment (provided you can afford it, but that’s why low mortgage rates have been helping the market so much).
According to Zillow, housing prices have increased by 2.3% over the last year (median home value is $696k), and are forecasted to increase by 2.5% over the next year (median home value of $714k). However, there is good news for potential Los Angeles buyers, as Zillow noted that 14.9% of Los Angeles listings experienced a price cut in September of 2019, and there is a decent chance that will occur again this year (particularly if sellers become overzealous based on the data, and insist on overpricing their homes). Further, it appears that single-family rental properties have been the hot commodity over the last 3 years (if you are looking at houses as an investment), with purchases increasing by 30% over that timeframe, and rental values increasing by 3%.
Of particular note is which neighborhoods qualified as the best neighborhoods (because of appreciation projections): Hollywood Hills West, Brentwood, Marina del Rey, Burbank, Highland Park, Glendale, Alhambra, Woodland Hills, Encino, Tarzana, Granada Hills, Sherman Oaks, La Cañada Flintridge, Los Feliz, San Gabriel, South Pasadena, San Pedro, and Reseda.
If a few of those names sound particularly familiar, it is because those are the areas the Chernov Team specializes in; having an agent who specializes in a particular neighborhood can really help maximize your return on investment (“ROI”). At the Chernov Team we understand that knowledge is power, and knowledge of how the local real estate market is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.