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Is it a smart time to buy a house in Los Angeles or continue renting?

The housing market of Los Angeles – 2020

It’s difficult to argue the Los Angeles housing market isn’t sky-high. Where can you go if you’re on top? And who earns enough to buy in this town anyway? This article is focusing on the Eastside of Los Angeles housing market, and what I have seen the past year. Full disclosure, I’m an active full-time Real Estate Advisor practicing on the Eastside of Los Angeles. Every day my clients ask me, “when is the market going to crash?” The short answer is, “the L.A. housing market is not going to crash.” We will see a price adjustment. Fewer buyers and more inventory will cause more buyer options so by osmosis value will adjust down. How far south no one can predict with certainty. A real estate market adjustment between 5-10% in 2020 seems reasonable and likely.

How do I determine real estate value in Los Angeles looking forward towards the end of 2019 and 2020?

If you’re planning to buy a home in Los Angeles this is a reasonable question to be asking. Looking backward to 2018 or earlier isn’t going to help you get a pulse on future real estate value in Los Angeles. But I’ve got good news for all future homebuyers. The market is shifting to favor buyers which means you’ll make out like a bandit! How do I know? Well, call it a mixed bag of intuition and my gut.

In 2016 – 2018 everything that listed on the MLS with windows and a door seemed to be selling in multiple offers. Heck, even if the front door was missing it still sold. Unless a property had a double murder-suicide story a noisy school or freeway across the street, or …. it sold no questions asked. This isn’t the case anymore. The end of June and the beginning of July have shown signs that the housing market is slowing down. My homebuyer clients are more reluctant to pull the trigger. My listing open houses are slower than usual and sitting on the market longer. Of course, the bright and shiny super special homes with tons of value or landmark history, or breathtaking views still sell immediately if priced correctly.

What about the sales statistics or market matrics?

Here is where things get really interesting. If we look at the sold property data of June 1st – 30th 2018 vs June 1st – 30th 2019 the Highland Park CA market value is still climbing higher going up! In 2018 we had 20 single family homes sell with Avg (DOM) days on market 35. In 2019 32 properties sold with 26 days on market. What is that telling you? We sold more homes in less time. Does that sound like a real estate crash?

Real estate metrics Highland Park sold homes June 2018
Real estate metrics Highland Park sold homes June 2019

Highland Park Los Angeles housing market 2020 conclusion:

Either the Highland Park housing market is continuing to climb higher or we’re right now at the beginning of the inevitable shift to the historical buyers market. Not even our trusted mortgage advisors can give us a clear snapshot of what to expect in 2020. Time will tell and it’s ultimately up to the home buyers. If less prospective buyers write offers, demand will lessen, and the value will depreciate. It’s that simple.

Sell my Highland Park home

The Shelhamer Real Estate Group is a real estate brokerage working with homebuyers and sellers on the Eastside of Los Angeles including, Highland Park, El Sereno, Mount Washington, South Pasadena, Glassell Park, Eagle Rock, Echo Park, Silverlake, Los Feliz, and the Hollywood Hills East.

©2019 Finance of America Mortgage LLC is licensed nationwide | Equal Housing Opportunity | NMLS ID #1071 (www.nmlsconsumeraccess.org) | 300 Welsh Road, Building 5, Horsham, PA 19044 | (800) 355-5626 | AZ Mortgage Banker License #0910184 | Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act | Georgia Residential Mortgage Licensee #15499 | Kansas Licensed Mortgage Company | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker — NYS Banking Department | Rhode Island Licensed Lender | Massachusetts Lender/Broker License MC1071. For licensing information go to:www.nmlsconsumeraccess.org. Questions, comments, concerns? Send to customerrelations@financeofamerica.com

This is not a commitment to lend. Prices, guidelines, and minimum requirements are subject to change without notice. Some products may not be available in all states. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision. Any materials were not provided by HUD or FHA. It has not been approved by FHA or any Government Agency. A preapproval is not a loan approval, rate lock, guarantee or commitment to lend. An underwriter must review and approve a complete loan application after you are preapproved in order to obtain financing.

David Clark - 805.280.1425​

I’m David Clark, a Californian, real estate advisor REALTOR®, and writer for the Shelhamer Real Estate Group located in Northeast Los Angeles California, the fastest growing real estate market in Los Angeles County. Connect with me for further information about this article, and to add and optimize the value in your property. Look for me on Instagram: @sellingnortheastla

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Mls Disclaimer:

Based on information from the / Association of REALTORS® (alternatively, from the /MLS) as of [date the AOR/MLS data was obtained]. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information

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The Shelhamer Real Estate Group

361 N Avenue 57

Los Angeles, CA 90042-3403

 

Call: 310-913-9477

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THE SHELHAMER GROUP   |    DRE: 01950995

Glenn Shelhamer is a licensed real estate broker DRE: 01950995 in the state of California and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. To reach The Shelhamer Real Estate Group’s office manage please call (310) 913-9477.

©2019 Finance of America Mortgage LLC is licensed nationwide | Equal Housing Opportunity | NMLS ID #1071 (www.nmlsconsumeraccess.org) | 300 Welsh Road, Building 5, Horsham, PA 19044 | (800) 355-5626 | AZ Mortgage Banker License #0910184 | Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act | Georgia Residential Mortgage Licensee #15499 | Kansas Licensed Mortgage Company | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker — NYS Banking Department | Rhode Island Licensed Lender | Massachusetts Lender/Broker License MC1071. For licensing information go to: www.nmlsconsumeraccess.org. Questions, comments, concerns? Send to customerrelations@financeofamerica.com

This is not a commitment to lend. Prices, guidelines and minimum requirements are subject to change without notice. Some products may not be available in all states. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision. Any materials were not provided by HUD or FHA. It has not been approved by FHA or any Government Agency. A preapproval is not a loan approval, rate lock, guarantee or commitment to lend. An underwriter must review and approve a complete loan application after you are preapproved in order to obtain financing.

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