March 24, 2018
/ Per Neil
Shekhter, the real estate market, specifically the selling of
homes in the Los Angeles area has never seen as high of prices as
now. Well-known property data leader CoreLogic recently reported
that LA house costs have dramatically increased in February of
2017. They have said that home prices have never in history been
this high in LA and there are good reasons for that.
The average sale price for a house in LA during February was
$580,000 and January's average sale price was $565,000. This is a
considerable increase within the same year, let alone two
consecutive months. The sale price in February is a 10.5 percent
increase compared to the price from one year before. This
realization has raised many eyebrows on the potential in this
market within LA County.
An analyst for CoreLogic,
Andrew LePage, has highlighted his theory that the sudden growth in
the market the past six years has been due to problems with supply
and demand. There are more and more people moving to Southern
California, which means that more homes are in order. When
developers cannot keep up with the demand, then demand rises even
more. With high demand and not enough supply, prices are bound to
skyrocket. This is a perfect example of how business is conducted
in one of the most popular cities in the world.
Specifically, there is a 3.1 percent decrease in houses sold in LA
in contrast to last year. Is this because not enough people are
wanting to buy homes? No, this is most likely due to the
overwhelming number of folks who do not wish to sell their
property. These homeowners know that there is high demand and that
the value for their home is growing every month. So, why sell when
you can hit bank in a few years?
Another common problem for buyers is the increase in interest rates
with the market. Many buyers, especially new ones with a smaller
budget, experience trouble navigating these adjusted mortgage
agreements. Couple this with the other issues buyers are facing,
and the LA County real estate market can be a monster to deal
CoreLogic considered the LA market as ''overvalued,'' on June 2017.
They have good reason to claim this because there is a 10 percent
gap between the current sale prices and the expected prices based
on data gathered over time on income levels of the average buyer.
It is still possible for prices to continue rising because the
median price within Southern California is 14.3 percent lower than
the highest price percentage before the recession hit.
Launching NMS Properties in 1988, Neil
Shekhter assumed the role of CEO in January 1995. The real
estate management company focuses on multi-family and mixed-use
properties in the Greater Los Angeles area and in Santa Monica.
Over the course of 2017, NMS deployed 40 furnished
apartments in Los Angeles, and Neil
Shekhter plans to triple that number in 2018. The company
currently manages some of its properties while testing a pilot
Neil Shekhter - Founder and CEO of NMS Properties
Apartments For Rent In Los Angeles by NMS Residential
Apartments For Rent In Santa Monica by NMS Residential
Contact Information: Gina
Alberts - GAlberts@neilshekhterholdings.com