The Real Estate Santa Monica Market Prediction in the Year 2016

The real estate price in the Los Angeles is skyrocketing day by day. In fact, if millionaires are there, they can make huge investment and book profits. The commercial and residential properties are popping up every now and then. But then, if the credit rating is low, there is foreclosure or bankruptcy, you will be in trouble. The price tags over the properties in Santa Monica are spinning out of control and so the buyers cannot afford it. Even the cheaper locations in Los Angeles like the San Fernando Valley, can see the rents climbing up very high. The rise in the prices in percentage is 7.4% which is unbelievable. Real Estate Santa Monica is seeing a great boom and the prices are rising.

The Real Estate Market in the Current Year

As per the latest market report, the asking rent this year has risen up by 7.8% and that comes around to $1,873 per month. The price of the median home in Los Angeles is a real shocker. The family house in Los Angeles has increased by 5.2% in contrast to the median homes that were hovering around 2.9%. It seems that Los Angeles wishes people to rent the homes rather than buying them.

The Apartments in Los Angeles

Apartments in the Los Angeles are the new market for the real estate agents. The apartment vacancy rate has fallen up to 2.7%. The Downtown LA region is the hot developmental neighborhood and around 5200 rental properties have come up online. Among this, 2700 solely belongs to the Downtown region. There are 15,000 plots or units which are under construction and will be constructed by 2017 or 2018.

What Is The Real Estate Scenario In The San Fernando Valley?

In the San Fernando Valley, the rents are to an average of 7.4%. The asking rent price on an average here is 15.1% which comes around to $1438. In the other areas of the Valley, there is slight increase in the rent. Some areas seeing 6-7% increase in the rates include Pasadena, Burbank, Glendale where the prices are increasing by $2,016 every month. North Hollywood, Sherman Oaks is witnessing a very sharp rise in the prices. The overall rise is 9.5%, coming around to $1503 per month. In the entire 12 months, 980 rental units have been added. The year 2016 will see an increase in the number of rental apartments and around 3000 new apartments will be added by the end of the year 2016.

The Central Los Angeles

Areas like Hollywood, Downtown and Mid-Wilshire are the parts of the central Los Angeles. The rent in the central Los Angeles seems to increase by 6.2%. The Downtown rent will be up only by 5.3% or so. The vacancy rate in the Downtown would be 3.7% when compared to the Hollywood’s 2.6%.

When you talk about Los Angeles property market, it is hitting the records and rising up to the level of craziness. It is the increasing rental prices in the Santa Monica that is discouraging people from renting an apartment or home. Prior to entering into any real estate deal, it is important to gain a complete knowledge about the same. To collect more information on the same, you can visit the official website Whit Prouty: Coldwell Banker.

About the Author:

The author of this article has an extensive knowledge in the field of Real Estate Los Angeles.