The Case Shiller index shows the housing values in Los Angeles had a monthly increase of .6%, and a year over year increase of 7.1%. Historically, over the past 42 years property values in the Los Angeles region appreciated 4.99% annually, including the massive drop during the 2008 housing/economic crisis.
I’ve had some major discussions lately with other real estate professionals that are positive there will be a big drop in values soon. My take is they are speculating without any facts, except the values have gone up over the past 7 years, and they appear high.
As I’ve conveyed numerous times throughout the decades, it’s all about supply and demand. No matter how the affordability is affected by rising interest rates, and values of housing, or new tax laws, we only need to look at inventory levels to determine the direction of housing values.
As you can see in the chart of San Fernando Valley inventory levels over the past 3 years, inventory is at historically low levels, and less than the last two years, where values appreciated at a substantial rate.
Also the real estate market is like a ocean liner compared to the stock market that can react like a speed boat. It takes a long time for the real estate market to change direction. We can see well ahead of a change in the market, or drop in values… you just need to know where to look.
Keep your eye on my blogs, or participate in the Outwest Marketing Real Estate Education Meetings that I chair, and you’ll know way before the general population on when there is a change in the inventory levels that will precipitate a change in the local real estate market.
If you are in the Los Angeles area, have any questions or real estate sales or financing needs, feel free in contacting me.
Ron Henderson GRI, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – California Association of Mortgage Professionals
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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