My CNN Interview on LA Real EstateGet my take on what’s happening in LA real estate and what’s coming next. 🏠
My CNN Interview on LA Real Estate
I’m thrilled to share that I was recently interviewed by CNN to discuss the state of the housing market in 2024. The article dives into how the market has slowed dramatically, particularly in Los Angeles, which has seen the lowest turnover among major metro areas. Several factors are at play here, including changes in the entertainment industry, elevated interest rates, and homeowners hesitant to sell due to their locked-in low mortgage rates. Housing affordability is at an all-time low, especially for first-time home buyers entering the market, as wages have not kept pace with home prices, making it increasingly difficult for many potential buyers.
Here are some of the main factors affecting the LA housing market:
Entertainment Industry Slowdown: Streaming service models and lasting impacts from industry strikes have significantly slowed content creation, impacting employment in LA.
"Lock-in Effect": Homeowners with low mortgage rates are reluctant to sell, reducing available inventory.
High Interest Rates: Elevated mortgage rates are deterring potential buyers, further slowing the market.
Inflation Impact: With rising costs across the board, many buyers are feeling the pinch, as high inflation makes it harder to save for a home and manage expenses.
Election Uncertainty: The upcoming election is adding to market hesitation, as political uncertainty often causes buyers and sellers to wait before making big decisions.
Affordability at an All-Time Low: First-time buyers are struggling as wages haven’t kept pace with home prices, making it harder to enter the market.
My Take
In my experience, the LA market isn’t entirely slowing. I’m still dealing with homes that receive multiple offers and sell within 1 to 2 weeks, especially in certain areas and price points. While the market is slower than normal, with low inventory and reduced demand, it’s more flat than collapsing. One of the key factors to watch is interest rates. If rates continue to fall, we could see a significant shift in buyer activity, as many who have been waiting on the sidelines may finally re-enter the market. Lower interest rates would make homes more affordable, which could drive demand and lead to a resurgence in sales. Next year could be a pivotal moment for the market, as falling rates may create the perfect opportunity for buyers to jump back in. However, the fate of the entertainment industry remains an important factor, especially for the local LA market.
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