The New Year is here, and we at Sunset Park Realtors could not be more excited and ready for the greatness that is sure to come. Home prices are projected to rise 9.4% in the Los Angeles area, as upscale neighborhoods like Bel Air and Newport Beach lead the way into stabilization. The widespread devastation from the foreclosure crisis was not experienced anywhere else as strongly as in the greater Los Angeles area. However, the improving trend in home sales along with the help of lower priced distressed properties has helped the area. Couple that with another round of lower priced foreclosed homes about to hit the market and the statewide tax credit, and we will see the Southland’s recovery beginning strongly this next year.
The bottom of the housing market in California is in the rear-view mirror, part in parcel to the special $10,000 state tax credit for home buyers who purchased a property after May 1, 2010. This government aid enabled the housing market to begin it’s recovery, assisting a slumping market that hasn’t seen home prices as low as they got in decades. Despite the expired federal tax credit, home sales are expected to continue on a stronger pace. This doesn’t mean they’ll be exactly steady, however, low mortgage rates and distressed property sales are projected to sustain a recovery in the state’s markets.
Thankfully, home sales have improved over the last two years, but still have a long way to go to get through the tough economic environment. While some believe consumer confidence is still down and the tax credit only provided an artificial boost to the housing market, sustaining no real change, many see 2011 full of hope and increased prosperity. Here at Sunset Park Realtors, we believe, through research and experience, that the Southern California housing market is on it’s way out of the hole. The last obstacle us Southern Californians have to grapple is the unemployment rate, which for now seems to be holding steady. Even with this obstacle, however, sales are improving and the forecast for 2011 is positive.
Sunset Park Realtors looks forward to assisting new and past clients this coming year with all things related real estate!