It is difficult, if not impossible, to find property in Los Angeles that is in the exact right location and within your budget. The LA market is among the most expensive in the country, but the market could be shifting soon. If you have been hoping to buy, your chance may be coming in the near future.
You may find it difficult to think of LA as a true buyers market. After all, homes are typically eight times more than the median income. However, there are more homes currently on the market. More homes means less competition among buyers, and that, in turn, means that homes will likely not sell above asking price. It may soon be a prime opportunity to make a purchase if that is what you have been hoping to do.
What does this mean for you?
At the beginning of 2019, there were over 21,000 homes for sale in the LA-metro area. This is 30 percent higher than the number on the market during the same time the previous year. In fact, there are currently more homes on the market than at any point since 2016. As a buyer, having more options is a positive thing.
Shopping in a buyers market may give you a false sense of confidence. Even with home prices stable or dropping, it is still in your interests to proceed thoughtfully and carefully. Risk management is crucial for all property buyers, no matter what type of marking they are buying in. Consider the following:
- Fewer homes in LA are selling above asking price, which is a positive sign for a buyer.
- Sellers may be more likely to accept a lower offer, but that does not necessarily mean you are getting a great deal.
- Even with more houses to choose from, buyers still would be wise to carefully think through any important decisions they make.
Protecting your interests is crucial during the home buying process. A thorough inspection of the house and careful review of the contract is prudent, no matter the market or the price of the home.
Don't buy problems when buying a home
Things may be looking up for LA-area home buyers, but you will find it beneficial to make sure you are not getting ahead of yourself and rushing through the purchase process. It is smart to think about things such as underlying problems with the home, resale value, insurance and more. Working with an experienced real estate attorney can help you understand risks and decrease the chance of future complications.