Why Buying Now in Los Angeles and Beverly Hills, CA, May Be Worth It in the Long Run
Why Buying Now in Los Angeles and Beverly Hills, CA, May Be Worth It in the Long Run | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
Should you buy a home now or wait? It’s a question many are grappling with, especially in luxury real estate markets like Los Angeles and Beverly Hills. While your decision depends on a variety of personal factors, one key aspect to consider is the potential for building equity. In the long run, the equity gained from homeownership can significantly enhance your financial standing, particularly in high-demand areas like Bel-Air, Brentwood, and Beverly Hills.
Start Building Equity Right Away
When you buy a home, you begin building equity immediately, and in markets like Los Angeles, where real estate consistently appreciates over time, that equity can add up quickly. Even with more moderate price appreciation, homeowners in neighborhoods like Hollywood Hills and Pacific Palisades stand to gain significantly.
According to Fannie Mae’s Home Price Expectations Survey, over 100 economists and real estate experts forecast steady home price growth over the next five years, both nationally and in prime areas like Beverly Hills. This trend is expected to continue through at least 2028. While prices may vary depending on the local market, homes in high-demand areas such as Trousdale Estates or Westwood are expected to rise consistently.
The Equity at Stake in Los Angeles and Beverly Hills
Owning a home in Beverly Hills or Los Angeles not only offers the prestige of living in a world-class city, but also the opportunity to grow significant wealth over time. If you were to buy a property valued at $2 million in Beverly Hills, for instance, you could potentially see hundreds of thousands of dollars in equity growth over the next five years, based on projected appreciation rates. Even modest price growth in luxury markets can result in substantial wealth accumulation due to the higher value of homes.
Let’s break it down. If you bought a $2.5 million home at the beginning of this year in Beverly Hills Flats, and home prices increase as experts predict, you could gain over $500,000 in equity within five years. For buyers in exclusive communities like Malibu or Brentwood, these numbers are even more significant, making a compelling case for why buying now, while prices and interest rates remain favorable, could be a smart move.
Why Now Is a Good Time to Buy in LA and Beverly Hills
Rising home prices may seem daunting, but once you own, that growth works in your favor. With Los Angeles and Beverly Hills being some of the most sought-after real estate markets in the country, buying now allows you to lock in today’s prices before they continue climbing. And, with mortgage rates recently dipping, now is an even more opportune time to buy. In a market where demand consistently outweighs supply, properties in neighborhoods like West LA and Santa Monica will only become more valuable over time.
Plus, homeownership offers stability in volatile markets. While rent prices continue to rise across Los Angeles, owning a home in Beverly Hills or Mar Vista means you’re investing in your future and growing your wealth with every mortgage payment.
Working with a Real Estate Professional in Los Angeles
Navigating the Los Angeles and Beverly Hills real estate markets requires local expertise. Whether you're looking at homes in Sunset Strip, Hollywood Hills, or Beverly Grove, having a real estate professional by your side will ensure you stay informed and make smart decisions. As The Mortgage Reports explains:
“Given the intricacies of the current market, it’s more important than ever to stay informed and up to date about housing market conditions. Whether you’re looking to buy or sell in 2024, having a professional guide you through the process can make all the difference.”
A knowledgeable agent will provide you with up-to-date information on the local market, guide you through the buying process, and help you weigh your options—especially if you’re trying to time the market right for the highest return on investment.
Bottom Line
The decision to buy now or wait is personal, but in luxury markets like Los Angeles and Beverly Hills, where home values are expected to keep rising, buying now can set you up for long-term equity gains. With the right guidance, you can make a sound decision that will benefit you in the years to come. Let’s connect and discuss the opportunities available to you in this dynamic market.
Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value
