Greater Los Angeles News
Los Angeles housing market returns to pre-recession levels18 Mar 2013 11:54 AM
After a few years of relative stagnancy, the Los Angeles real estate market is showing several positive signs. Increased consumer optimism, an improving job market and a shrinking supply have all contributed to positive gains in recent months, according to LA Observed.
Although all sectors of the city's housing market have shown signs of improvement, high-end homes appear to have made the biggest strides in recent months. According to Fox Business, luxury homes have returned to their pre-recession peaks for a number of reasons. The aforementioned return of consumer optimism is likely the leading factor, but a limited supply, a reduction in new construction and an infusion of foreign buyers have also helped buoy the luxury market.
All told, the end of 2012 proved to be one of the strongest periods in recent Los Angeles housing market history. The median price of a home in the area leapt 7.7 percent between November 2011 and November 2012, according to NBC. The improvements to the southern California housing market - San Diego also posted a nearly 8 percent year-over-year increase, according to the source - have helped the state as a whole counteract some of the damage it experienced during the recession.
Indeed, by almost any metric, the current housing market appears on par with the pre-recession peak. According to Zillow, property values in Los Angeles have risen nearly 10 percent in the last year, making 2012 one of the strongest years in recent memory. Additionally, a shrinking inventory of for-sale homes has stepped up demand, causing many potential buyers to bid against each other, the Daily News reports.