According to a recent article in the LA Times, Los Angeles is ranked number one in North America for property buying. This is based on a CBRE Group survey of global real estate investors with a combined total of $1.7 trillion to spend on property in 2017. And globally, it ranks among other top choices including London, England and Sydney, Australia.
Also noted is that LA was the top choice for the second year in a row, according to the survey of investment fund managers, insurance companies and operators of pension and sovereign wealth funds.
In addition, forty percent of investors said they intend to spend more this year than they did last year, while only 16% said they would spend less.
In a related story, Southern California home prices have jumped again as short supply has been fueling bidding wars. Home prices in February posted the largest increase in more than a year, as buyers looked to outbid one another for a reduced selection of homes for sale. The median price for new and resale homes hit $460,000 last month, up $5,000 from January, which is also 7% higher than it was in February 2016.
Finally, in his Daily Wealth email newsletter, Dr. Steve Sjuggerud shared this compelling chart from Stansberry Research to conclude that there is no bubble in real estate – not even in Los Angeles.
According to the chart, the median price of a house in LA, adjusted for inflation soared in the mid-2000s… and then crashed. But as you can see, that’s not the case today in Los Angeles.
So what does it all mean? One early conclusion is that the place to start your North American real-estate investment search might just be Los Angeles.
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