Why Buying Now Is Worth It: A 2024 Real Estate Outlook for Los Angeles and Beverly Hills, CA
Why Buying Now Is Worth It: A 2024 Real Estate Outlook for Los Angeles and Beverly Hills, CA | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
If you're considering whether to buy a home now or wait, it’s essential to understand how much equity you could gain over time. This question is particularly relevant in dynamic real estate markets like Los Angeles and Beverly Hills, where high-end properties appreciate significantly. While some buyers hesitate due to fluctuating mortgage rates or waiting for the “perfect” market conditions, it's important to factor in how home price appreciation could impact your wealth-building goals in the next few years.
Expert Predictions: Home Prices Are Expected to Climb
Experts forecast steady home price growth across the nation, and this trend applies strongly to luxury markets like Beverly Hills and Los Angeles. According to projections, the average home price is expected to increase by 4.73% in 2024, followed by additional growth each year through 2029. Although these figures represent national estimates, the growth rate in high-demand regions such as the Westside of Los Angeles and Beverly Hills could be even higher due to their unique allure and luxury real estate profile.
Even a moderate appreciation in home values can lead to significant equity gains over time. For example, let’s take a closer look at what these price projections could mean for buyers in these prestigious neighborhoods.
Projected Home Price Growth for the Next Five Years
- 2024: +4.73%
- 2025: +3.11%
- 2026: +3.29%
- 2027: +3.75%
- 2028: +3.88%
This appreciation can add up fast, especially in areas where property values are already high. In markets like Beverly Hills, the “Platinum Triangle” (Beverly Hills, Holmby Hills, and Bel-Air), or luxury neighborhoods in Los Angeles, home prices can climb even faster due to scarcity, demand, and the area's luxury appeal.
How Much Equity Could You Gain?
According to recent forecasts, if you buy a home now for $450,000, you could potentially gain more than $90,000 in equity in just five years. In luxury markets like Beverly Hills or the Hollywood Hills, where average prices far exceed this example, the potential for equity growth is exponentially higher.
For example, a luxury home purchased for $5 million today could appreciate by hundreds of thousands of dollars over the next five years, based on current growth rates. This wealth-building opportunity makes buying now a strong consideration, particularly for those who are looking at high-end properties as a long-term investment.
The Beverly Hills & Los Angeles Perspective
In regions like Los Angeles and Beverly Hills, the local real estate market remains highly competitive. Beverly Hills, for instance, boasts some of the most expensive real estate in the world, with ultra-luxury properties in demand from both domestic and international buyers. Whether it’s a multi-million-dollar estate in Holmby Hills or a modern luxury condominium in Century City, real estate investments here tend to grow faster than the national average.
Areas like Pacific Palisades, Malibu, and Bel-Air are particularly sought after, and properties that might have seemed expensive a few years ago are likely to see further price growth over the coming decade. The continued desirability of these areas—due to their prestigious schools, proximity to world-class dining, entertainment, and the overall allure of the Southern California lifestyle—fuels ongoing appreciation in home values.
Should You Wait or Buy Now?
If you decide to wait, you risk losing out on the equity growth that could accumulate as home prices rise. Particularly in luxury real estate markets like Los Angeles and Beverly Hills, delays could mean paying significantly more for the same property a few years down the line. Alternatively, buying now locks in today’s price, allowing you to start building equity sooner.
In addition, mortgage rates fluctuate over time. If rates go up, your purchasing power could diminish, making it more challenging to secure the home of your dreams within your budget. By purchasing now, you hedge against future rate increases while taking advantage of rising home values.
Final Thoughts
Whether you're looking at a luxury estate in Beverly Hills or a stylish modern home in West Los Angeles, buying now offers clear benefits. The anticipated appreciation in home prices over the next five years presents a significant opportunity to grow your wealth. If you're ready to explore the real estate market, contact us for expert guidance on buying or investing in Los Angeles luxury properties.
The key takeaway is simple: Don’t miss out on the equity you could gain by waiting. If you're ready to start building wealth through real estate, now is the time to act.
Let's chat about your real estate goals and how you can capitalize on today's market conditions in Beverly Hills and West LA. Reach out today, and let’s make your real estate dreams a reality! 🏡
Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value