Kenny Slaught Discusses Market Of Today In California
The housing market on the West coast is white-hot. This means that even older and less fashionable homes cost a fortune. Kenny Slaught says that since 2008, the prices increased steadily. He pointed to the Standard & Poor’s Case-Shiller home price index as a common reference. This reveals that last April, the home prices in Los Angeles reached their peak since October 2007. This is more than just a recovery after the recession since larger metropolitan areas in Southern California are very close to reaching their previous levels. Slaught points to several factors that contributed to this fast increment. They are: low interest rates, job growth, supply and demand. Currently, the mortgage rate for 30 years is fixed and is around 3.5% or less, though they nearly reached 3.1% in November 2012. Thus, many people were more willing to buy. When it comes to employment, Los Angeles County saw a 2.4% increase in the occupied population, while Orange County saw a 3.5% increase. This is a clear factor causing home values to also rise in a very fast-paced manner. Of course, these prices still vary throughout California, but the higher-end homes are still more expensive than everywhere else in the country, except Hawaii. As far as supply and demand goes, the former is lower than the latter. In this situation, an increased number of buyers have to settle for a condominium-style unit as it is priced modestly.
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