Just a few years ago, the real estate market in the United States was taking a beating. People were rapidly losing value in their homes. Those days are but distant memories for those who live in Los Angeles and some of its surrounding suburbs. The median price for a home in the Los Angeles area is now just under one million dollars.
This nearly one million dollar per home price tag is just part of the story. Median home prices in some of the more desirable locations within the Greater Los Angeles Area such as Pasadena are as much as three million dollars.
The average time that a home is on the market is declining. In some parts of Los Angeles, the average time on the market is 19 days. Most houses in the Los Angeles vicinity are also selling for over the asking price. In areas like Pasadena, two-thirds of the homes sold for more than the price listed.
Those who analyze the real estate market believe that there are two reasons for this rapid increase in prices. First of all, there is scarcity in the market. Some of the more sought after home locations have only a handful of listings available. When a home does come up on the market, the bidding war begins.
Another reason for the price rise is the allure of LA. People still believe that Los Angeles is one of the best places to live. They believe it is a place where the action happens, and they desire to be a part of it.