If you have buyers in a market who want properties, that’s generally treated as a good thing. Buyers consume properties put up for listing, and properties transfer to new owners who need changes. The transactions also help drive other economies, including everything from services to moving companies to retail to even food suppliers. However, when there is too much demand, it also drives up the value of the limited supply, and California is already famous for a very finite number of properties available for housing.
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Assumption vs Real Market Movement
Now, most people think of real estate in Los Angeles and Southern California, and they assume it works as a local or regional market. However, the reality has been over the last few years that the LA basin market has been very much influenced by foreign buyers as well, notes Steven Taylor LA real estate expert. And, of course, in any market where there is notable demand, there is also price inflation as well. Unfortunately, as many have argued, price inflation in Los Angeles has effectively pushed them out of the market entirely.
Is There a Total Market Priceout?
The stories of “pricing out”, however, have to be taken with some adjustment. When people in Los Angeles say they can’t afford a home they want, the first question a real estate expert is going to ask is, anywhere? Los Angeles is a huge market, probably one of the top 5 biggest real estate markets in the U.S. So, the more likely aspect is that an LA prospective homebuyer is not able to find a home in the particular neighborhood they specifically want. And, that could include more than one location. No argument.
A number of LA areas are priced higher than others. This is a fact. The above said, many LA homebuyers who have found success in Los Angeles have also leveraged up. They have not tried to reach the perfect home in the first jump but instead hop-scotched their way to the ideal home through two or even three others first. It takes longer, but the reward has been worth it and, more importantly, the buyers are able to build up their finances to access more of the LA real estate market as well by doing so.
LA Homebuyers Need to Have a Strategy
Steven Taylor Los Angeles analyses of ongoing market changes can confirm there are buying opportunities in Los Angeles in multiple neighborhoods. Prospective buyers do need to make sure though that they have flexibility versus being limited to varying narrow aspects of the overall market. Additionally, considering the option of leveraging up is a very powerful alternative that can build equity and, from there, further buying power. It’s a longer approach but oftentimes produces better home choice results.