Buy Now or Wait? Key Questions for Homebuyers in Los Angeles and Beverly Hills
Buy Now or Wait? Key Questions for Homebuyers in Los Angeles and Beverly Hills
Deciding whether to buy a home now or wait can be one of the toughest choices in today’s real estate market, especially in high-demand areas like Los Angeles and Beverly Hills. With fluctuating mortgage rates, local market dynamics, and other factors, it’s important to ask yourself a few key questions before making your move. Here’s a breakdown to help you make an informed decision.
1. Should I Hold Out for Even Lower Mortgage Rates?
It’s tempting to wait for mortgage rates to drop further, but there’s a catch: if rates go down, buyer demand often increases. This could lead to increased competition and higher home prices, especially in hot markets like Beverly Hillsand Los Angeles, where luxury homes are always in high demand.
Greg McBride, Chief Financial Analyst at Bankrate, explains:
“A further drop in mortgage rates could bring a surge of demand that makes it tougher to actually buy a house.”
In competitive neighborhoods like Bel-Air, Brentwood, and Hollywood Hills, waiting for lower rates might mean getting outbid by other buyers. Timing is crucial, and acting sooner rather than later could prevent future price hikes and fierce competition.
2. Is It Better To Wait Until After the Election?
Historically, home prices tend to rise after presidential elections. According to national data, prices increased after 7 of the last 8 elections. In Los Angeles and Beverly Hills, where the luxury real estate market is resilient, the post-election period could bring even higher prices.
For instance, if you're eyeing high-end areas like Trousdale Estates or Malibu, delaying your purchase until after the election could mean paying significantly more. History shows that waiting could lead to higher costs, especially when demand surges in response to economic and political changes.
3. Do I Plan To Live There for a While?
If you’re planning to stay in your new home for several years, buying now can be a smart long-term investment. CoreLogic reports that the average homeowner gained about $25,000 in equity over the past year. In a city like Los Angeles, where home values have been consistently appreciating, locking in your property today means you’ll likely see solid returns on your investment in the coming years.
For buyers looking at properties in Santa Monica, Venice, or Pacific Palisades, where home values continue to rise, buying now means you’ll start building equity sooner. This could help you accumulate wealth and provide you with more financial options down the road.
The Bottom Line
Whether you’re purchasing a luxury estate in Beverly Hills or a modern home in Los Feliz, the decision to buy now or wait is a personal one. However, based on historical trends, mortgage rates, and the competitive nature of the Los Angeles real estate market, buying sooner could save you from increased prices and competition.
Let’s connect and discuss your goals to ensure you make the best decision for your future in the Los Angeles and Beverly Hills real estate markets.