Los Angeles Is Becoming A Hot Bed For Investors

Online, April 4, 2013 (Newswire.com) - It seems that times are better in the stock market, and residential housing market seems to be following that same trend. U.S. home prices rose 9.7 percent in January from a year earlier, the biggest increase since 2006, a real estate data analysis firm reported. Last year ended on a positive note for Southern California with a 27 percent year-over-year increase in median price and with January 2013 median price of $369,188, 34.3 percent higher than the January 2012 median price.

Southern California was among the best performing regions in the country. Home prices have been on the rise as inventory has tightened significantly and interest rates have remained low. Investors have scooped up many low-priced and bank-owned properties to rent or flip. Foreclosures have made up a declining share of homes sold. With the inventories getting smaller you are seeing multiple offers on properties, in some cases as many as 20 on a single listing. You're also seeing a trend where offers being made 10 to 15 percent over the listing price. With interest rates at 3.63 percent, it makes it easier for to first time buyer to try their hand at investing. It is a good time once again in real estate and if you have the capitol to freely invest, it's a great time to be in real estate.

Southern California contains a wide variety of ethnic and socioeconomic groups. Gentrification has had a huge effect in some the community's at large. Some of the cities that you see that trend are Culver City, Inglewood, Ladera Heights, Baldwin Hills and View Park to name a few. The positive effects are that the lower income community's are being restored, in some cases to their original form. These cities are flourishing with new restaurants, bars, movie theatre's and stores of all sorts. In some instances new malls are built. The malls that already exist in these communities are revitalized and remodeled to modernized standards to look like new. This has also given the small businesses that were able to maintain and stay open in a dreary economy a chance to prosper and reap some of the benefits of their new budding community. This allows the investor, in some cases, to get a maximum return on their investment. Which is why investors are so eager to invest in Southern California making Los Angeles a hot bed for investors.

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