Home Prices Surge in 2023

The latest CoreLogic Home Price Index (HPI) report paints a picture of robust growth in the U.S. single-family home market. In September, an increase of 4.5%, marking the third consecutive month of acceleration and the most significant surge since early 2023. This trend is remarkable, as home prices have steadily climbed for 140 consecutive months, soaring by an impressive 42% since the pandemic's onset. Furthermore, in just this year, home prices have surged by 6% since January.

Looking ahead, CoreLogic projects that this upward trajectory in annual home price growth will persist, however more modestly, through January 2024, before gradually easing to 2.6% in September 2024. The real estate landscape remains dynamic and full of potential for both buyers and sellers.

Real Estate, Path to Build Wealth

Americans resoundingly view real estate as the ultimate path to wealth, with multiple surveys echoing this sentiment. While the statistics may vary slightly across surveys, the consensus remains steadfast: real estate reigns supreme as the premier long-term investment choice.

What's behind the impressive growth in the net worth of homeowners? the Survey of Consumer Finances (SCF) report puts it: “. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.” The average homeowner's wealth has increased significantly, while renters' net worth remains much lower at around $6,300. Your home equity builds up value over time, which can dramatically improve your overall wealth. It's like having a valuable savings account that grows with your home's value.

As a recent article in The Ascent:

“Whether your net worth increased in recent years or not, there are steps you can take to boost that number in the coming years. . . buying a home can be a great way to grow your net worth, since home values tend to rise over time.”

As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), states:

“. . . when deciding to rent vs buy, one must calculate the total cost of homeownership (maintenance, utilities, commuting, etc.) and the total financial benefit. Based on new Fed data . . . the median net worth of homeowners was $396,200 vs renters at $10,400. There is no question about the wealth gains that homeownership provides.”

Reasons to Sell Your Home

Are you considering selling your home? There are compelling reasons to act now. First, the current inventory is low, creating a favorable seller environment. Additionally, as the holiday season approaches, people tend to get busy and delay their real estate plans until after the festivities.

By selling now, you gain a competitive edge over other homeowners who might wait until the holidays are over. Also, it's important to note that those actively searching for homes right now are serious buyers.

Today's homeowners are in a prime position with record equity levels, averaging nearly $290,000 per mortgage holder, as per CoreLogic. Your home's equity is the key to unlocking your dream home and covering a significant portion, if not all, of your dream home's down payment.

A recent article from Investopedia puts it well:

“. . . if your house is up for sale in the winter and someone is looking at it, chances are that person is serious and ready to buy. Anyone shopping for a new home between Thanksgiving and New Year’s will likely be a serious buyer. Putting your home on the market this time of year and attracting a serious buyer can often result in a quicker sale.”

Reasons To Buy A Home

There are good reasons to choose buying over renting. First, when you buy a home, its value increases over time. Plus, as you pay your mortgage, you build something called "equity," like a savings account for your home. This makes your overall financial worth grow. While there may be occasional price fluctuations and economic dips, you consistently come ahead in the long run.

On the other hand, the rents are going up year after year. Rent prices have been steadily increasing for decades. So, buying a home can be a smart move to avoid those never-ending rent hikes and build your financial future.

Your housing payments are an investment, and it's up to you to choose where your money goes. Opting for homeownership means investing in yourself and your future. When you rent, that money is gone forever.

How is the Local Market Doing?

Per Rocket Mortgage sales data: Los Angeles, the real estate market, has a competitiveness score of 56 out of 100; homes receive an average of 3 offers and 42 days on the market before going into escrow and pending. Last month, the median sale price in Los Angeles County soared to $983K, a 2.4% increase from the previous year. Over the past year, home values have surged by as much as 15.9%, making Los Angeles an enticing investment. The median home listing price is on track to surpass $1 million, signaling a remarkable 30% increase in just 5 years.

Santa Monica-90401,90402,90403,90404,90405

In September 2023, the prices of homes in Santa Monica saw a 5.1% increase compared to the previous year. This includes all of Santa Monica's condo and home sales data.

West Los Angles-90025

In the 90025 area of West Los Angeles, homes have sold for 3.6% more than their selling prices a year ago.

Westwood-90024

In Westwood's 90024 area, homes have sold for an impressive 10.3% more than their prices just a year ago.

Brentwood-90049

In Brentwood's 90049 area, homes have experienced a remarkable 13.4% increase in selling prices compared to the previous year. This area typically has a substantial concentration of condominiums, and the data considers condo and home averages.

Our data encompasses a broad geographical scope. If you're looking for precise information tailored to specific neighborhoods and zip codes, we encourage you to contact us for customized data. Whether you're exploring homes north of Wilshire or south of the freeway, it's essential to note that data can vary significantly, even within the same city. We can pinpoint specific areas and provide the most up-to-date and accurate data. We want you to know that your unique real estate needs matter to us; we're here to deliver your insights.

Whether you're looking to sell or buy, we're here to support you every step of the journey. Contact us today for a complimentary consultation.

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