Just in case you have had a bit of attention on LA’s robust real estate market and that ugly word “bubble” is floating around in your mind, relax. According to UCLA economist William Wu, writing in the UCLA Anderson Forecast, the LA real estate market started its recovery in 2012 and has increased 27% since then.
Moreover, the Anderson Forecast is predicting another four years of rising prices and a 35% increase in prices before there is any correction.
This isn’t a speculation bubble, per Wu. The increase in home prices is being driven by strong demand and limited supply.
“The reason comes down to a fundamental imbalance: there’s lots of job growth, but because of strict building and environmental regulations, there will be very little increase in the housing supply.
“‘That means you will not expect to see housing more affordable during the next few years,’ said Jerry Nickelsburg, a Senior Economist at UCLA’s Anderson Forecast. ‘In fact, just the opposite.’”
So, there you have it. Don’t sit on the sidelines if you are interested in real estate, whether for a residence or as an investment.
There is, according to the old adage, “No time like the present.”
Do call us for any of your real estate needs.