Los Angeles Market Update – August 2014

Los-Angeles-skyline



The Los Angeles real estate market has shown it’s resilience over the last 2 years.  Year over year since 2012, the LA market has seen double-digit gains in home price increases.  That’s astounding considering the local real estate bust that occurred less than a decade ago.

Making the nations top 100 largest housing markets, Los Angeles , has shown some slowing down in price increases month over month since early this year (2014).  Price “run-up’s” in 2012 & 2013 were due to the lack of inventory levels as real estate investors rushed to buy up condos, townhouses, single family forclosures , and any other types of real estate that they could get their hands on.

Now that we are starting to see the market begin to slow down back to normal longer term gain levels, it’s thought that other macro and micro economic factors will begin to contribute more to the Los Angeles housing market prices in the near term.  Factors such as jobs, consumer price index, economic growth, unemployment, ect, will have a large impact for the next several years.  Good thing LA has seen solid job-grown over the last six months.  If this trend continues along with increasing income growth, the Los Angeles housing market should continue it’s upward price increase trend.