Los Angeles, the city of bright lights and big names, is continuing to thrive and grow, which has seamlessly paralleled the city’s climbing housing market. As Relator.com recently revealed in their article Top 10 Hot Housing Markets to Watch in 2015, Los Angeles is the nation’s favorite for this year’s predicted household growth and volume of home sales.
Though Los Angeles is still recovering from the recession, there remains plenty of luxurious residences ready for move-in, which is why the city has been ranked as one of the least affordable in the nation. But that still hasn’t stopped L.A. residences from their lust with luxury home-buying.
It’s only upward bound for the Los Angeles housing market. In a recent housing update, Relator.com predicted that home sales in the Los Angeles are forecasted to grow by 6% in 2015 alone. According to Stan Humphries, Zillow’s chief economist, we are expecting to see home values rise by 2.5% or more in 2015. That being said, it is most definitely time to buy- not rent homes. Due to the deficit in the housing market from the recession, many have turned to the renting option, but this isn’t necessarily the smartest option for the 2015 housing market. Humphries predicts that rent prices will climb about 3.5% this year and will only continue escalating into 2016. As a result of this steep ascent in rent prices, first time buyers are expected to take a huge leap of faith in homeownership within the next year or so. The security of a fixed mortgage has never looked this attractive to the younger buyers as it does now. Predictions show that by the end of 2015, people who are 35 and younger will comprise the majority of the nation’s home-buying market- making 2015 the absolute best time to buy!
Younger people aren’t the only buyers who will be prominently showcased in the 2015 market. With the housing market about to boom in Los Angeles, many foreign buyers will continue flooding the housing market in even greater percentages than ever before. Though there has been a strengthening of the US dollar, the allure of the Los Angeles housing market is still very present in the eyes of foreign buyers. For this reason, there is an even more significant incentive to buy now.
Keep your eye on the housing market in 2015- it’s going to be a great year.