Los Angeles property investment market is experiencing slow but steady growth. US real estate faced a slowdown in the recent past but at present the market is rising again and is expected to remain active till 2008. Although the sale of houses has decreased, the prices are still rising in Los Angeles.
Average home price in central Los Angeles remains between $740,000-$760,000. Real estate investment is always a secured investment because the value of the property cannot be zero at any time. On the other hand, the value of the real estate property generally rises with time. So, the general trend always remains in favor of investment.
But there are certain other issues, which are related to the Los Angeles property investment. The overall economic growth in Los Angeles is slow and the employment growth has also been restricted in the recent past.
However, in the coming years the employment opportunity is expected to grow at 0.5-0.8%. The economy of Los Angeles faced a dramatic slow down between 2001 and 2003. But after that shock, the economy started to recover from 2003 onwards. From 2003 till now, the average personal income raised at a rate of almost 5% but with this rise, the inflation rate has also increased quickly in this period.
All these acted in favor of property investment in Los Angeles.
At the same time the real taxable sales are rising and there is no actual fall in the home prices, which is considered as a sign of optimism for the sector. On the other hand, after the dark period in the California real estate sector, the present growth of the property investment sector in Los Angeles has been highly satisfactory. The present appreciation rate of real estate is almost 25% in California and being a part of the state, Los Angeles is also experiencing the same trend of growth in the property investment sector. This growth rate also suggests that the Los Angeles property investment is going through an upward trend.
Last Updated on : 5th July 2016