Buying or selling either commercial or residential property is a complex process, especially in the Los Angeles area. There are many factors to consider when preparing to move forward with this important decision, including how you can minimize your financial risks and reduce the chance of complications. It may be beneficial to look at expectations for real estate trends in the LA-metro area and throughout California for 2019.
In order to determine what both buyers and sellers should expect this year, industry experts looked at trends over the last few years, ages of buyers and other economic factors. Understanding trends and preparing before you list or buy can help you have realistic expectations as you navigate this potentially complex process. Buying or selling property is a major financial and legal transaction, and in a market like LA, you may find it beneficial to have support from the very beginning.
Still a sellers’ market?
The LA area is a unique market. For about 10 years, it has been very friendly for sellers. After the recovery from the most recent recession, buyers often found themselves facing fierce competition and bidding wars to secure the property they wanted. However, this trend could be reversing or slowing, and it may be helpful for you to understand the following facts and predictions for 2019:
- Prices for residential properties have been leveling off recently, and sales have slowed as well.
- Families now looking for homes in Los Angeles may no longer be willing to financially overextend themselves simply to get a better house or live in a specific area.
- Sales may be down because the price of real estate in the area is too high for many prospective buyers.
- Another reason that selling a home in 2019 could be more difficult is the rising interest rates.
While selling a home in 2019 could be more difficult than in years past in LA, it is possible. It is in your interests to know what to expect and how to avoid problems, no matter what your goals may be.
In addition to successfully completing the sale or purchase process, you will also find it beneficial to know how to protect yourself against issues such as fraud, insurance complications and other issues that could threaten your financial interests. It might be useful to discuss your concerns with an experienced real estate attorney before you move forward or sign any contract.