How much has Los Angeles real estate dropped since 2006?
Everyone has access to statistics and figures, but I took a “very informal poll” this morning and queried several local Realtors and the consensus is that property values in my market have dropped approximately 10% - 20% and in a few neighborhoods perhaps as high as 25%, a good solid average is close to 20%.
WOW! A Home that was $1,000,000 in 2006 could now be priced at about $800,000 – a $750,000 home is likely to be down to $600,000! Even better news is that the Freddie & Fannie new conforming loan limits are readily available. Previously, a buyer would pay an increased interest rate for loan amounts in excess of $417,000; Los Angeles home buyers now get preferred Freddie & Fannie interest rates up to $729,000! Prices have dropped, rates are still low and larger loan amounts are cheaper to finance.
Phyllis,
This is the question everyone wants to know. How far have we dropped? How much yet to go? I think it's varied quite a bit from neighborhood to neighborhood in L.A. But I think in many neighborhoods, 2008 will still be a difficult year, with no recovery beginning until either late this year or more likely next year.
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Christopher,
Some days I agree with you that prices will decline a bit more, and some days, my phone is ringing and it seems like buyers are ready to leap - but I suppose that this could only be the "spring thing". Thank YOU for visiting my site
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