Trying to sell a house fast felt like an exercise in frustration in the not-to-distant past. Although Los Angeles has been in a sellers’ market for a few years now, since the COVID-19 crisis the housing market in Los Angeles has gone crazy, and this has never been a better time if you are a home seller.
Nearly Everyone Who Has Sold Recently Received Multiple Offers
Multiple offers are the dream scenario for most homeowners. Other areas of the country can be slow, hardly receiving a single offer per home. However, homes are flying off the market like hotcakes in Los Angeles. Right now, many of those who have been listing their homes at market price are receiving multiple offers the same day. Thus, bidding wars often ensue, further inflating closing prices. Overall, few homes have sold at their listing price; many of them close at least 5% above asking. Some investors, who purchased homes within the past few years, have seen gains in excess of 25% on their investment.
Property Appreciation Exploded Last Year, and It Looks Even More Promising for the Future
Several contributing factors seem to be in play here, increasing the average home price in Los Angeles by over 10%. Last year was one of the fastest-appreciating years on record in the area. What does that mean for today’s homeowners? Anyone who was already an owner has seen their equity take off over the previous 12 months.
Demand Has Been at Record Heights, Yet Inventory Remains Low
Such unprecedented demand took the market by storm after the nation’s lockdowns were lifted. Since then, inventory still hasn’t caught up. Bidding wars have become increasingly common. Home buyers have begun to waive all contingencies as common practice. Homeowners looking to sell a property quickly can find less discerning buyers. Even if the homes don’t appraise, investors are still snatching them up.
Rates Are Lower Than Ever
How has the Fed’s monetary policy been affecting the markets? Money supply has shot up at a faster pace than any other time in history, creating more new dollars in a shorter span than ever before. These low rates have made homeownership attainable for many average Americans. Plus, on top of how easy it has made buying, sellers have seen their property values skyrocket. Overall, the Los Angeles housing market has seen at least a 10% year-over-year increase in final closing prices. Not to mention, there’s still a burgeoning demand, thanks to such low inventory.
Selling Your Los Angeles Home
If you have been thinking about selling, now would be the time. It’s tough to imagine this combination of factors hitting at the same time again.