Latest Real Estate Data for Home Buyers in Los Angeles

Why Buying a Home in Los Angeles Now Can Be a Smart Move

Inventory levels are up. Recent data from Realtor.com shows an 11.6% increase in the number of homes listed for sale in September compared to last year. Unlike the usual seasonal dip in listings, September saw a rise in new properties hitting the market, as highlighted in the green circle on the graph.

If you’re on the fence about buying a home now versus waiting, you’re not alone. Many potential buyers wonder if it’s better to hold off until conditions improve. But waiting might cost you more in the long run, particularly when you consider how home prices are expected to increase and the equity you could build over time. Here’s a breakdown of why buying now is worth considering.

Senior Economist at Realtor.com sheds light on the unexpected surge in listings:

“This sharp increase is largely due to the decline in mortgage rates in mid-August, enticing homeowners to sell.”

As mortgage rates dipped at the end of summer, it encouraged more homeowners to enter the market, seizing the opportunity to make their move.

1. Home Prices Are Forecasted to Rise

Experts predict that home prices will increase steadily over the next five years. Even this moderate growth rate means that waiting to buy could result in higher prices down the line, making homeownership more expensive if you choose to delay.

2- Mortgage Rates are Coming Down

As mortgage rates continue to drop, prospective home buyers might feel more encouraged to proceed with their purchase. This week, the average rate for a 30-year fixed mortgage fell to 6.09%, more than 150 basis points lower than earlier in the year.

“Mortgage rates continued declining towards the 6% mark, reviving purchase and refinance demand for many consumers,” says Sam Khater, Freddie Mac’s chief economist.

The Federal Reserve’s recent decision to cut its short-term benchmark rate has kept mortgage rates in the spotlight. “While mortgage rates do not directly follow moves by the Federal Reserve, this first cut in over four years will have an impact on the housing market,” Khater explains. “Declining mortgage rates over the last several weeks indicate this cut was mostly baked in, but we expect rates to fall further, sparking more housing activity.”

Khater’s insights are already reflected in the market. According to the Mortgage Bankers Association, mortgage applications for home purchases rose 5% as rates reached their lowest levels in nearly two years. “Home buyers are seeing improving affordability conditions, sparked by lower rates and slower home price growth,” adds Joel Kan, an economist with the Mortgage Bankers Association.

3. Potential Equity Gains Are Significant

Life events like births, deaths, marriages, and divorces often drive relocation needs, creating a continuous demand for housing. In a strong economy like Los Angeles, these factors, combined with the city’s appeal to diverse industries such as tech, music, and Hollywood, attract people from all over the world. This influx contributes to rising home prices and sustained market growth, making property in LA increasingly valuable.

4. The Cost of Waiting

Buying a home provides a sense of accomplishment, a connection to the community, and the opportunity to build equity. With that equity, you can invest in a vacation home, help pay for college, or purchase additional investment properties. Waiting to buy means missing out on these opportunities and building wealth for someone else, like your landlord. If you’re one of those buyers waiting for interest rates to drop back to the 2-3% levels seen during the pandemic, it’s time to rethink. Those rates are unlikely to return, and waiting could mean missing out on current opportunities to build equity and secure your future. Now is the time to act rather than wait.

5. Why Buy Real Estate in Los Angeles Now?

The real estate market often ebbs and flows; why buy in Los Angeles now; inventory is up, mortgage rates are down, and buyers have more options. Plus, it’s a great time to negotiate prices, making current market conditions highly favorable for buyers. The long-term trend has shown consistent growth in property values. Investing in a home now means taking advantage of today’s prices before they rise further. Plus, as you build equity, you create a financial cushion that can benefit you in the future, whether you decide to sell, refinance, or leverage that equity for other investments.

Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), emphasizes the improved conditions for buyers:

“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices.”

6- Buying versus Renting

NAR Chief Economist Lawrence Yun. “A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.” While home prices are rising, rental prices are climbing even faster. In over half of the nation’s largest metros, buying a starter home is often more affordable than renting, as highlighted in a new realtor.com report. Buying can provide stability, long-term savings, and an opportunity to build wealth.

Conclusion: Don't Miss Out on Growing Your Wealth

The forecasted price appreciation and potential equity gains make a strong case for buying a home sooner rather than later. While it’s natural to hesitate, especially in uncertain times, the data suggests that those who act now will likely see their investment pay off in the years to come. If you’re ready to take the next step, reach out to a trusted real estate agent who can guide you through the process and help you secure a home that meets your needs and budget.