What’s Happening in LA Real Estate?
It’s been a month or two since the last market update. Really, things haven’t changed that drastically. Sales are up, but so are foreclosures. Just as it has been for the past several months, for every step forward, there has been at least one step back.
Thanks to the extended and expanded home buyer incentive, home sales were up again in November, 14.7% over what they were a year ago. Home prices were up 1.85% from October. November is normally one of the slowest months of the year for home sales, so these improvements are signs of new life in the real estate market. It’s not just pre-owned homes that are being sold in higher numbers; new home sales are also up.
There has also been an increase in the number of new homes being ordered and built. Architects and contractors are seeing more work than they have in the past year. Although there hasn’t been a huge increase, there is some work to go around. New homes being built to order are one of the best signs of real estate recovery, and this slow improvement is proof that things are starting to get back on track.
Of course, with these improvements, there have also been some increased problems. Foreclosures are up, again. Despite the new Obama plan to turn temporary modifications permanent. While banks are still doing better about preventing foreclosures, they are still significantly more common than they have ever been before. Until lender find a way to alter their payment agreements and do anything possible to reduce the number of homes entering into foreclosure, the market will not be able to right itself.
There is going to be a lot to watch as we enter into 2010. The real estate market is improving, and the demand for homes is higher than it has been in a long while. With the home buyer tax incentive, and other new programs meant to help keep homeowners in their homes, the market is on the road to recovery. It will be interesting to see how the year ends up, and how the new year begins.