Main Content

Real Estate Investors Begin Selling Off Properties in Los Angeles as Market Reaches Cap

The Real Deal

Everything Real Estate in the San Fernando Valley
FridayJuly 30, 2021
Real Estate Investors Begin Selling Off Properties in Los Angeles as Market Reaches Cap

According to a report released by on July 30, 2021, investors are causing a home inventory shortage in 62% of the nation’s largest metropolitans; scooping up homes that appear to be good deals in the hopes of flipping them for a profit as record-low inventories push the median price of homes higher. While this may look like market manipulation, it does not rise to that level.

In a nutshell, these ultra-wealthy investors are capable of moving the market vis-à-vis supply. This isn’t always for the worst, as investors are actually increasing inventory in markets where they are dumping off properties; this is happening in 38% of the nation’s largest markets. The markets that are benefiting from this tactic the most appears to be Atlanta, Georgia and Dallas, Texas, and Los Angeles, California.

Given the recent news that the rate of appreciation for homes are dwindling in certain markets, it makes sense that investors are reevaluating which investment properties are worth holding onto for an extended period. All indicators suggest that Los Angeles, California is reaching the maximum value the market will bear, and prudent investors have been selling their properties to reap the benefits of an inflated market.

At the Chernov Team we understand knowledge is power, and knowledge of how the ultra-wealthy perceive their home investments in inflated markets 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.

More Blog Posts

To Love
MondayNovember 29, 2021

Despite the appearance of the Omnicron variation of COVID-19, some sense of normalcy is returning to the world arou...

Read Full Post
WednesdayNovember 24, 2021

Since COVID-19 landed on our shores nearly two years ago, the housing market has bucked all expectations and thriv...

Read Full Post
FridayNovember 19, 2021

We have repeatedly noted that the housing market is set to become less lucrative than it has been over the last yea...

Read Full Post
MondayNovember 1, 2021

It appears the COVID-19-related surge in the housing market is nearing its end. The cost of homes has reached it’...

Read Full Post