Few real estate markets are as exciting or as interesting as the one here in LA. Not only are many homes filled with rich histories or owned by celebrities, but the luxury homes here can often have some of the most fabulous amenities in the country. And to add to that ‘interesting’ factor, a new trend has shown up – bidding wars and all-cash offers.
Here at Suzanne Dranow we’ve already seen firsthand just how much people are willing to fight for the home that they want. The big factor driving things forward is simple – inventory levels for the LA market are lower than ever, and that’s especially true in the case of the luxury home market. This sudden shortage of homes being listed means that people are now ready to pay larger prices for the home that they want.
Recent data does still suggest that another housing bubble burst isn’t likely to occur any time soon. This is because today’s current inflating prices aren’t driven by speculation or by high-risk loans. Instead, it’s just a matter of supply and demand. Values have already increased dramatically and it’s expected that they’ll rise by as much as 35% over the next 4 years.
That means two things. The first is that buying a home is trickier than ever, with bidding wars occurring on an almost regular basis and cash offers trying to help persuade sellers to accept an offer quickly.
The second is that this could be a great time to invest in luxury homes and properties in the area. New developments from the Palladium Residences to Millennium Hollywood are offering chances to purchase homes in the area which could turn into valuable properties later. It’s an exciting time in the LA real estate market, and one that’s well worth taking a look at more closely.