The Los Angeles real estate market is still shaking off COVID but feeling a boost from the historically low interest rates. Property values are still appreciating because of supply and demand. In this report card, you can see how only a fraction of the needed housing to cover the new household formations are being constructed. That will contribute to appreciation going forward.
The unemployment rate is high due to COVID shutdowns. The affordability index is still supplying motivation to buyers that still have a solid vocation, business and income.
Observe the historical appreciation. A minimum of 4% to 5% appreciation should be expected going forward. The higher forecasted appreciation levels are due to the existing supply & demand mismatch. When annual compounding is calculated, future values will continue to generate strong equity.
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 (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
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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