$1M+ homes now dominate the Los Angeles Region
According to the LA Times, homes worth $1M+ now dominate communities from Altadena to South LA, with communities like Burbank getting called out as being part of the trend. The convergence of low interest rates, low inventory, ample buyers and Covid provided the fuel for a huge surge in prices. According to many industry analysts they are predicting a slow down in prices and buyer demand for the fall real estate market and interest rates are projected to stay low for the foreseeable future. The question I get often is "when are all the foreclosures from COVID going to hit the market?". While forbearance will end soon, the reality is that many underwater owners were given assistance in refinancing their loans and delinquent amounts were added to the loan. Regardless, the consensus is that the majority of households in the forbearance program will not need to sell as a distressed sale due to the increase in equity from price increases over the last few years. What will affect prices is if we have a lot of inventory hit the market at the same time, in which case keep an eye on price reductions, as that will be an indicator of a slow down.
If you are thinking about selling, give me a call to discuss the market and develop a plan to sell your property.
