People Are Still Moving to Los Angeles and Beverly Hills, CA: Even with Today’s Affordability Challenges
People Are Still Moving to Los Angeles and Beverly Hills, CA: Even with Today’s Affordability Challenges | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert.
Despite the current challenges in affordability, particularly noticeable in dynamic markets like Los Angeles and Beverly Hills, California, people are still actively buying and selling homes. You might be aware that mortgage rates are higher than they have been in recent years and that home prices, especially in sought-after areas like Beverly Hills and the broader Los Angeles region, are on the rise. This is indeed true. The graph below illustrates the current affordability situation compared to previous years.
The National Association of Realtors (NAR) explains the graph's indices: “A value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home.” The black dotted line represents that 100 value on the index. The higher the bar, the more affordable homes are. As indicated by the orange bar, today’s higher mortgage rates and home prices have created a clear challenge. However, this does not imply that the housing market is stagnant, even in premium markets like Los Angeles and Beverly Hills.
NAR's data suggests that nearly 4 million homes will sell this year. Breaking this down:
- 3.96 million homes divided by 365 days = 10,849 houses sell each day.
- 10,849 divided by 24 hours = 452 houses sell per hour.
- 452 divided by 60 minutes = about 8 houses sell each minute.
So, even in the face of affordability issues, over 10,000 homes are selling daily in the United States. This includes high-demand areas like Los Angeles, where the luxury real estate market in neighborhoods such as Beverly Hills remains active. Whether you’re a buyer or seller, there are still opportunities to achieve your real estate goals.
The Role of a Skilled Agent in Los Angeles and Beverly Hills Real Estate
The key to navigating today’s market in Los Angeles and Beverly Hills is partnering with a trusted local real estate agent. Experienced agents understand the nuances of these unique markets and can guide you through the current affordability challenges. They can offer advice tailored to your needs, budget, and preferences, and draw on their experience of what’s working for other buyers and sellers in this area.
In markets like Beverly Hills, where luxury properties and exclusive neighborhoods are the norms, agents can provide invaluable insights into available listings, market trends, and investment opportunities. They might suggest exploring diverse housing types such as condos or townhouses, or considering neighborhoods just outside the core areas to balance affordability concerns.
While it's true that buying a home in Los Angeles and Beverly Hills has become more expensive over the past couple of years, the movement in the real estate market is still vibrant. People are continuing to buy and sell homes, driven by the expertise and advice of skilled local real estate agents. If you’re looking to make a move in these areas, connecting with a knowledgeable professional is a crucial step toward realizing your real estate ambitions.