Looking Ahead to 2023: What Homebuyers in Los Angeles and Beverly Hills Should Know
Looking Ahead to 2023: What Homebuyers in Los Angeles and Beverly Hills Should Know | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
The topic of home prices has been a hotly debated issue in the United States over the past year. Some have predicted a significant drop in prices, similar to the market crash of 2008, while others have forecasted a slight appreciation or depreciation, depending on the region. As we approach the spring real estate market, experts are continuing to provide their projections for home prices in 2023 and beyond.
For Los Angeles and Beverly Hills, two of the most expensive and desirable housing markets in the country, the outlook appears positive. According to Selma Hepp, Chief Economist at CoreLogic, the continued shortage of available homes for sale is likely to keep price declines modest, with projected peak-to-trough declines topping out at around 3%. Additionally, Pulsenomics, which surveys a panel of over 100 economists, investment strategists, and housing market analysts, predicts steady appreciation for the next five years.
Despite the positive projections for these two high-end markets, homebuyers may still be wondering if they should make a move this spring. Here are three reasons why buying a home in Los Angeles or Beverly Hills is still a wise investment:
- Escaping the cycle of rising rents: Over the past few decades, the median price of rent has consistently risen. By purchasing a home, you can avoid this cycle and lock in your monthly housing payment.
- Hedge against inflation: Homeownership is one of the best hedges against inflation. With a fixed-rate mortgage, your housing payment is secured and won’t rise like it would with a rental property.
- Wealth-building: Homeownership is a powerful wealth-building tool. The average net worth of a homeowner in the United States is significantly higher than that of a renter.
In summary, while slight price depreciation is projected for the housing market in 2023, followed by steady appreciation, buying a home in Los Angeles or Beverly Hills is still a wise investment. With the help of an expert in the field, homebuyers can make informed decisions based on the latest projections and data.