REAL ESTATE NEWS (Los Angeles, CA) — What’s happening now with the L.A. urban property market? More stagflation! The numbers are in, and they show continuing economic stagnation and price inflation, with fewer buyers, fewer transactions, yet selling faster, with higher prices for urban homes:
2021: Listings 59; Days on Market average / median 55 / 34; Price med / avg $575,000 / $644,978
2022: Listings 42; Days on Market average / median 33 / 21; Price med / avg $629,500 / $778,675
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DTLA sold home property values statistics show that inflation is still the name of the game.
Demand for new homes has grown, driving up home prices up to 18% over the last few years. It’s been years since home prices have increased that much. The current expectation is that home prices will continue to rise, but at a much slower pace. Somewhere between 2% and 12% for the coming year, 2022, is what national lenders are projecting. With a ten percent swing in projections, it’s clear there is not a consensus of what the rate of U.S. home price growth will look like in 2022. When discussing home prices, remember that local and national markets and prices vary substantially. Inner city real estate often does the exact opposite of suburban or rural real estate. When the safest suburban neighborhoods shot up during the virus hysteria, urban home prices dropped. Take a look at what the Downtown Los Angeles real estate market is doing recently in the November DTLA Real Estate Market Report.
There’s a consensus in the real estate industry that price growth will continue to decelerate as the current growth rate simply isn’t sustainable long term. One school of thought says that interest rates will start moving back up, which will cool demand for homes. Since rates can’t go much lower, that seems like a safe bet, according to Fortune Magazine. With an expected reduction in demand due to the higher interest rates, inflation caused by fed spending and radical Federal Reserve money printing may be the only forces keeping home prices from falling. Nobody can predict how long this stagflation will last before the inevitable economic recession of the Greater Depression of the 2020s occurs. #entarispowerful #homeprices2022. Share your experience buying or selling your home here.
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