As we have noted on this blog lately, the rapid pace of the market has slowed on the micro markets of the Westside. Last week, the LA Times published an article talking about the subject on broader Southern California terms. Home prices hit their highest level in nearly seven years this summer, but the gains are slowing down and here is an article outlining some of the reasons why.
Article: Southern California Market Downshifts in August
The sharp increase in home values over the past few years, without wages increasing is making the ability to afford a home in Los Angeles very difficult. Strong investor interest along with international money flooding into the market are a few of the other reasons why it is a struggle for first time homeowners. The frustration for renters is that rents continue to increase while owners are able to take advantage of low interest rates and tax write offs. Check out the informative article below.
Article: The divide between homeowners and renters is growing