Curbed LA reports that the average home in Southern California is going for a massive $600,000, which is back down from $615,000 after winter sales proved less successful. Statewide incomes are failing to keep up with these major housing prices, making homeownership unattainable and adding on to the unlikelihood of a sale.
The report goes on to say that the home price “drop-off” is misleading, having just crossed the threshold of an all-time high last summer. In fact, home prices in LA County are up $10,000 in just one month, with a 1.7 percent lift between March and April 2019. Even though there has been a 12 percent increase in purchases within that same timeframe, the report calls the overall number of sales “underwhelming.” LA Curbed cites that the actual total of homes sold year-over-year is down 15 percent.
With a slow trickle of affluent house hunters, homeowners are left holding out for the right offer. As a result, home prices are expected to stagnate. With many buyers being priced out of homeownership, there’s been a major upswing in residents looking to rent single-family units across LA County. So the good news? Renting out your property may prove to be a more realistic, longer-lasting source of income than a sale.
Despite the seemingly quick potential for a huge payout, it’s a solid time to rent out your property and turn it into an investment. As mortgage interest rates soar and vacancy rates plummet across LA County, the renter’s market is absolutely saturated. With a great many Californians desperate for housing, especially with the looming threat of wildfires, it’s simply a matter of finding who is most qualified to live in your home. Your investment property will be overrun with applicants.
To be fair, it’s not a perfect renter’s market, either. A combination of natural disasters, a shortage of units, and an overall lack of affordability have led to statewide rent caps. The goal is to ensure that California’s lower-income citizens are not at risk of eviction or homelessness. Recent legislation has extended the rent caps to single-family units and attempts to prevent price gauging are becoming swift and harsh.
The best thing to do as a homeowner? While home sales are at a standstill in LA County, work with a property manager to assess your property’s rent value. Real Property Management California Coast will combine our professional expertise with California’s local laws to get you the best return on your investment. We’ll help you improve, maintain, and market your property so you can make the most out of it until your final sale. We’ll also handle the overwhelming pile of applications and all aspects of tenant relationships once you approve a rental. Contact us today to get started on building a worthwhile investment.
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