With a white-hot housing market, many West Coast buyers find that they need to pay impressively high prices for older, less modern homes. Kenny Slaught points out that costs have been increasing since 2008, reference, the Standard & Poor’s Case-Shiller home price index notes that Los Angeles home prices rose to their highest point since October 2007 during April of this year. Having grown well beyond mere recession recovery, Southern California’s sprawling metropolitan areas are closing in on their previous peaks. Slaught says the turnaround results from a number of factors, which include interest rates, job growth and supply and demand. As current 30-year, fixed-rate mortgages hover around 3.5% or less with the record low of 3.31 percent hit in November 2012, many are enticed to buy. These historically low rates are coupled with strong employment numbers, such as a 2.4% gain in Los Angeles County and a 3.5% rise in Orange County, making it clear exactly why values have appreciated in such an extraordinarily rapidly-paced manner. And while home prices vary considerably statewide, the inflated asking price of higher-end homes outpaces that of all states except Hawaii. The demand for housing is overwhelming the slim supply available, with many first-time buyers forced to opt for condominium-style units: available and within a more modest price range.
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