Even when purchasing less luxurious properties, buyers from the West coast find they need to pay more than they would like to. The housing market here is very active and Kenny Slaught explains why the costs have been increasing constantly since 2008. The Standard & Poor’s Case-Shiller home price index, a common reference, shows that in April the cost of a house in Southern California reached the highest possible point after the recession, which can be compared to the former asking price. Slaught points to several factors, including the low and fixed interest rate for 30-year mortgages. These rates were kept under 3.5%, though at the end of 2012 they reached 3.31%, the lowest point, which encouraged many to take the plunge. On the other hand, the employment rates also grew rapidly: 2.4% in Los Angeles County and 3.5% in Orange County, alone. It’s important to note that the price tag for a house varies across California and that the higher-end properties have the most inflated numbers compared to the rest of the country when ignoring Hawaii. Currently, the demand for housing is very high but there aren’t many available properties, thus some of those purchasing will choose a condominium-style unit because it has a more modest price.
Read more: https://finance.yahoo.com/news/kenny-slaught-provides-insight-changing-034500364.html