When it comes to real estate, and in particular buying your first home, the prevailing rule of thumb is if you can, you should. We have all heard a real estate agent say, “Now is the time to buy!” but to be honest, that has always been the case (with the exception of 2008). This rule is magnified in Southern California where buying a single family residence will immediately begin rising in value.
Touched upon in an earlier blog post, Los Angeles is seeing some unprecedented growth among its population, and real estate development is struggling to keep up. The LA Times did a study on San Diego homes, a city where unemployment is down and wages are going up but homes are not easy to come by. This past year a vast majority of new development was for rent, not for sale. They are making a push for new development of condo units and townhouses with streamlined permit processes and lowering parking restrictions, amongst other things.
You can, and should, expect similar actions to take place in Los Angeles. Average home prices in Los Angeles went up 7.5% in October alone, which drives home the point: if you buy a house in Los Angeles, it can go up in value every month. Thus putting more weight behind ‘If you can, you should’ because being stuck on the other side of home ownership just means houses will continue to get more expensive.