LA Housing Prices Are Rising — And The Housing Shortage Is To Blame
The Southern California housing market is hot — some might say too hot. Home prices have risen by double digits every month for the last 11 months.
In June, the median L.A. County home price rose to almost $800,000.
HousingWire.com analyst Logan Mohtashami told KPCC's AirTalk that it's not higher demand driving home prices up but our housing shortage.
"The shortage of a home is creating people — or forcing people — to bid higher than what they want. And they can do it. Because they make money," said Mohtashami.
Mohtashami says this creates "extremely unhealthy price growth."
Beverly Hills real estate broker Taunee English said buyers gain an edge if they waive contingencies, such as relying on getting a loan to finance the purchase.
"They want to go for a loan because the interest rates are so low, but if they have to they can cash out some stock and buy the property, then finance it later on," said English.
Those willing to waive appraisal and inspection contingencies are also more likely to close on a new home in this real estate market.