While you may be dreaming of owning your own sunny property, buying a home in the Los Angeles area can be daunting. High prices and fluctuations in Southern California’s real estate market create a tricky decision. However, it’s important to prevent certain myths from holding you back. Misinformation spreads quickly in competitive real estate environments, so you should take the time to dispel myth from fact.
The following are some common real estate myths circulating around the region. If you want to buy house in LA, be sure to inform yourself of these misconceptions and learn the truth. Only then can you make a logical decision.
High median home value indicates a housing bubble
Real estate prices in Los Angeles continue to increase and you may hear the term “housing bubble” thrown around quite often. This concept basically means that housing demand spikes and prices go up. The figurative bubble bursts when housing supply continues to grow to meet demand, but the demand suddenly drops or stagnates. Some people fear that this is going to happen in Los Angeles. However, a growing medium home price does not always indicate a bubble. Other factors such as economic growth and general demand in the area can also drive up prices. So, it’s important to prevent an upward trend from deterring you from buying.
You won’t have time to get pre-qualified for a loan
Demand in the Los Angeles real estate market is high, which can lead buyers to make swift decisions. However, moving too quickly can leave you in trouble later. This is often the case when buyers make offers before they are qualified for a loan. While you might think skipping the loan application process will save time, you won’t actually know how much you can afford. And in LA, this can leave you with a higher price tag than you anticipated. Generally, it’s best to get pre-approved for a loan, so you can shop within your budget and put in offers quickly.
Renting is often the best decision in a competitive market
When looking at the home search in front of you, it can be tempting to put off your buying dreams and continue renting instead. This may be a wise choice for some people. But that is not always the case. One of the best ways to decide whether to rent or buy is to consider how long you plan to live in LA. If you’ll be staying for one or two years, or aren’t sure whether you want to settle, it might be best to rent. However, if you plan to stay for five years or more, buying can be a great investment. If the market continues to grow, the value of your home may increase and benefit your finances in the future.
The Los Angeles area doesn’t have high and low real estate seasons
Los Angeles tends to have pretty ideal weather, but the sunshine doesn’t necessarily dictate the real estate seasons. Most of the time, the market gets a boost during the late spring and early summer, with more homes going on the market between April and June. And with school out for summer, more families may be moving during this time. While the seasons might not determine your buying schedule, it can be helpful to keep this peak time in mind.
You can save time by searching without a real estate agent
Another way people attempt to cut time is to jump into the market without a real estate agent. While you don’t necessarily need an agent to buy a home, it can be particularly helpful in a market like Los Angeles. An agent has knowledge of market trends, local neighborhoods, and general buying best practices. Your agent will offer several buying alternatives, so you can consider different towns and home types. While it might not guarantee a shorter buying process, hiring an agent will ensure that you move through the market correctly and efficiently.
No matter where you are buying, the local market is likely full of rumors. By working with a qualified agent and doing your research, you can dispel these myths and make informed decisions. The effort will be well work it when you are living in a home you love and can afford.
