Rebounding Valuations of Los Angeles Real Estate
Rebounding Valuations of Los Angeles Real Estate
In the Greater Los Angeles real estate market, rebounding prices for commercial buildings and beach homes are worthy of mention. We see why. Low interest rates and huge amounts of cash shifting around are fueling higher prices and increased sales volume. Banks have opened up their lending restrictions. And comparing the ROI in real estate to a 2.2%-yield Treasury note, it is obvious Adams.
People who lost money in certain sectors of the investment markets have now become comfortable buying real estate. They are pouring their dollars into favorable locations – like Los Angeles. Two booming sectors here include commercial and luxury real estate.
Los Angeles Office Building Sales
U.S. sales of commercial office building space during 2Q late 36% year-over-year to $225.1 billion. Domestic and international investors have pushed the value of commercial real estate in Los Angeles to the highest level since 2009. Investors are buying up office buildings in major cities around the globe as well. Valuations are based on Price per Square Foot as published by Real Capital Analytics.
L.A. Beach Town Prices for Southern California Homes
At the same time, residential Los Angeles real estate in its Southern California beach towns is some of the Least Affordable in America. Among western Los Angeles beach real estate, Realtor.com lists Malibu homes as those with the nation’s top Median List Price at $3.6 million. Pacific Palisades came in as No.6, Newport Coast at No.8, and Corona Del Mar, California, at No.10.
A limited supply of Los Angeles beach homes creates bidding wars and rising prices. Some of the most expensive Beach properties in the nation are right here in Orange County. Along the waterfront, multiple deals for homes selling for more than $10 million. And buyers are not just from the United States. The National Association of Realtors ® reports that Chinese investors channeled approximately $10 billion into California real estate in 2014.
Who Knows How Long the Rebound Goes?
No one knows the exact impact of the expected certain rise in interest rates will have on the Southern California markets. Landlords may raise rents. Property values may fall. Lenders could face serious consequences if borrowers start struggling to make payments.
Real Estate Agent Los Angeles
For information about current values for Southern California luxury residential beach homes and commercial Los Angeles real estate for sale, call Bob Cumming of Keystone Group Properties at 310-496-8122.
