Kenny Slaught Discusses Market Of Today In California

Numerous people looking to buy a home on the West Coast are learning that prices for older, less trendy houses have grown. Kenny Slaught explains that the prices have been increasing since 2008. As per the Standard & Poor’s Case-Shiller home price index, the costs of Los Angeles homes reached their highest point earlier this year. The same number was recorded back in October 2007. Cities in Southern California overcame recession and regained their previous values. Slaught explains that some of the factors that contributed to this are interest rates, job increase and supply and demand. A 30-year, fixed-rate mortgages stays at about less than 3.5%, with a record low of 3.31% being recorded in November 2012. These factors convinced people to buy a home. The unusually low rates, along with the job market increase, like a 2.4% growth in Los Angeles County and 3.5% rise in Orange County, explain the higher values. Home costs vary from state to state, but the inflation of luxury homes is only higher in the state of Hawaii. The supply cannot meet with the demand, and many new buyers had to settle on less expensive, more convenient condominium-style units.

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