Introduction To Los Angeles Real Estate

Los Angeles may not appear to be the best location for a few things and reasons, namely because the unemployment rate is in the double digits at 12% and as a result foreclosure rates put the city at the top of the national list. The state isn't in a great place financially either which makes some outsiders feel that they should be able to get a cheap home in the area but this is untrue and not feasible because demand in the city of Los Angeles is incredibly high for its own special reasons.

The weather of the city is highly desired by most people and has been declared one of the best in the country. The warmth is highly sought after since 300 out of the 365 days of the year feature sunshine and temperatures at 70 degrees.

Culture in the city of Los Angeles is everywhere. The image that you give to people is highly part of the local culture. Some individuals consider this to be bad while others say it is a good thing. Some things that people look at are the clothes people wear, car they drive, and the house that they reside in. The high culture causes the demand for impressive homes to be there as well.

Industry in the city of Los Angeles is highly focused on the defense and entertainment areas. The industries are flourishing, even if the unemployment rate for the city is higher than desired. Many people who hope to get their foot in the door of the entertainment industry move to Los Angeles.

The job opportunities in Los Angeles are plentiful. People who wish to work can get involved in business and other investments as well. There are so many different opportunities condensed in the area. Income levels for each household average about $125,000 which can be considered high compared to the rest of the nation. These income levels fit in with the housing prices and demand in the area too.

The final, but definitely not weakest, selling point for Los Angeles is cheap money in the form of low APR mortgages. The going rate is about 4.75% for a 30 year mortgage. Getting a loan at this rate is incredible and was unheard of many years ago during both the 1970's and 1980's when rates were much higher than now. Don't be scared off by the fact that many people are unable to qualify for loans due to tighter restrictions by lenders.

There is no way to hide the fact that demand has been down compared to many years ago because all areas are getting hit by the foreclosure crisis. However, the city of Los Angeles is faring far better than cities such as Phoenix which have higher foreclosure rates. The difference is that people still want to move to Los Angeles. Los Angeles still thrives with homes getting both bought and sold and prices still being competitive on the market.

The state of Los Angeles's real estate market can be evaluated further by comparing it to somewhere such as Los Vegas where demand is incredibly low. The demand for homes in the area is not there and industries which thrive are also suffering such as gambling and tourism. Foreclosures are selling at rates that are up to 20% off of their fair market value just to get sold. This isn't the case in the city of Los Angeles.

The demand is still so high in Los Angeles that a home is able to sell in the range of $700,000-$800,000 with only 2 bedrooms and 1 bathroom with a size of about 1,200-1,500 square feet. This is considered a good deal for the city.