Home prices in the Los Angeles area continue to rise. This means profits for LA homeowners selling their homes. According to a Zillow report, 2017 took those profits sky-high, making LA residents see some of the best profits in the US.
LA Homeowners had a lot to be thankful for in 2017. Here are just a few statistics to help you understand why LA homeowners saw such profits.
- 40% increase in home values: In the city of LA, values jumped with owners getting $175,000.
- 1% increase in home value county-wide: On average, homeowners in LA County sold their homes for $137,000 more than they originally paid for them.
- 8% increase in home values: This is the national increase in home value, netting homeowners a profit of $38,856.
- 5 of 35: There are 35 large housing markets in the US. Just five of those saw home values increase by six figures. The LA area was one of those markets.
- 20% down payment: Having an average profit of $137,000 allowed most homeowners to be able to pay the needed down payment on a new home in the area.
The average value of homes doesn’t really explain the current real estate landscape. Although home values were up across the entire LA County, some areas were up much higher than others. For instance, these two Westside communities saw a 70% increase in home prices from the time of purchase to the time of sale:
- Bel Air
On the other hand, Downtown LA only saw a 21.5% gain.
In terms of dollars, Bel Air homeowners made the biggest profit. Most sold homes for almost $1 million more.
With more homeowners hanging on to their homes rather than selling, the market in the area is quite competitive. It is not uncommon to see a bidding war and homes on the Westside sell for more than the asking price. That’s why if you are considering buying or selling on the Westside, you should give me a call. I know how to price homes in the area and can help buyers make offers that get accepted.