Kenny Slaught Discusses The Current Real Estate Market In California

On the West Coast, many property seekers need to pay a lot for their homes, even if these are older and less fashionable. The housing market is very active and according to Kenny Slaught the prices rose steadily since 2008. The common reference is the Standard & Poor’s Case-Shiller home price index that shows that Los Angeles home price tags reached their highest point in April. This is not just a recession recovery for larger metropolitan areas in Southern California are near their former peaks. According to Slaught, there are several factors influencing this reality: interest rates, job growth, as well as supply and demand. At the time, the fixed-rate mortgage for a period of 30 years, was around 3.5% or less. The record low was hit in November of 2012 when the rate was 3.31%, a number that enticed people to buy. In the Los Angeles County employment rose 2.4% while in Orange County the employment rate grew 3.5%. Having such numbers is easy to understand why the values of the houses increased at such speed. The price of a house still varies across California, however, the inflated asking price is second only to Hawaii. The demand for houses is higher than the supply and first-time buyers have to settle for condominiums as they’re priced more modestly.

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