Because of a very active real estate market, most buyers are forced to spend much more money even when choosing a less modern property. Kenny Slaught explains the situation by making a reference to the Standard & Poor’s Case-Shiller home price index. He says that the Los Angeles market didn’t only recover after a recession, but it nearly reached their previous peaks, as prices increased steadily since 2008. He adds that there are 2 main factors for the current situation. One of them is the fixed interest rate for mortgages taken for a period of 30 years. The rate was kept under 3.5% though in November 2012, it hit 3.1% – the lowest point. On the other hand, in Los Angeles County there’s been an increase in employment by 2.4% while in Orange County 3.5% more people found a job. These aspects led many to want to buy a home, leading to increased prices as well. Of course, depending on location across California, the asking price for higher-end properties are well inflated compared to the rest of the country, but Hawaii. While the demand is high, the supply is low. In this situation, those who want to buy, have to consider condominium-style units for their modest price range.
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