International Buyers Heating Up the Los Angeles Real Estate Market
International real estate buyers find Los Angeles a hot market for property. In 2017, the Los Angeles area ranks #1 in the United States for property investments according to LA Times Reporter Roger Vincent:
“The L.A. area ranked No. 1 in North America in a survey of global real estate investors who have a combined total of $1.7 trillion to spend on property in 2017. Top choice cities for investment in other regions were London and Sydney, Australia.
Overall, offices are the preferred category of real estate to buy, with warehouse distribution centers and multifamily residential buildings close behind. Shopping centers, hotels and industrial properties ranked lower in investor interest.” (Read more of Vincent’s report here: http://www.latimes.com/business/la-fi-global-investors-20170317-story.html)
The value of rents is much higher than other international cities, and property prices are much lower when compared to former regional favorite, San Francisco.
“The Westside, where those those and other big sales took place, is the L.A. area’s core market for investment, according to CBRE, in part because it consistently commands the highest rents in the region.”
Zillow seems to agree with the valuable housing market in the LA region. Their year-end report (2016) showed gains in home values.
“The total value of all homes is $2.5 trillion, a 6.4 percent change from last year, or [a gain of] $154 billion,” according to a statement from Zillow spokeswoman Lauren Braun.
“Homes in the glitzy Los Angeles metro, America’s most valuable housing market and home to ultra-wealthy enclaves including Beverly Hills and Malibu, have … more than double the combined wealth of America’s 50 richest citizens,” according to the Zillow report.
Hancock Park real estate agent Sheri Bienstock told us that the market is also bringing quick home sales in this unique area of the city. Her clients are getting top dollar for their homes in Hancock Park, Miracle Mile and Larchmont Village; even more than their asking price in some cases.
With the positive outlook for Los Angeles real estate, the trend appears to favor investors and sellers of properties in the Southern California region.