Los Angeles Real Estate Prices Continue Record Breaking Climb
The Los Angeles real estate market has continued its surge in prices, despite general concerns about the economy’s overall health. Los Angeles County’s median sale price rose to $635,000.00 in July, a 2.8% increase from the preceding month and a 5% jump since July of 2018. Since breaking the $600,000.00 threshold in May of 2018, prices have continued to climb, due at least in part to declining interest rates.
The continuing growth of the Los Angeles real estate market is welcome news in light of overall concerns about the economy. While many economists and journalists have opined on an upcoming recession, the general economy appears to remain healthy, with unemployment remaining at record lows of 3.7% and the Dow Jones Industrial Average up about 11% since the beginning of the year. The Federal Reserve’s recent decision to cut the target interest rate, as well as the expectation that it will cut rates again, has likely been a major contributor to the real estate market’s continued growth, with low interest rates providing buyers with more buying power.
While the future of the economy remains, and always is, uncertain, many expect that the Federal Reserve will further cut the target interest rate in its upcoming September meeting. This, in turn, will continue to increase the borrowing power of buyers, which will likely continue to drive an upward trend in real estate prices. This is good news for both buyers and sellers – sellers can continue to expect appreciation in property value, whereas buyers may be able to secure “more for their money” with the reduced cost of borrowing.
For more information on how Esquire Real Estate Brokerage, Inc. can help you in the Los Angeles real estate market, feel free to give us a call at 213-973-9439 or send us an email at firstname.lastname@example.org.