Numerous buyers on the West Coast realize the prices are higher even for older properties due to inflation. The prices have been slowly growing since 2008, According to the Standard & Poor’s Case-Shiller index, prices for Los Angeles properties reached their highest point this April. This was the highest point registered since October 2007. The biggest cities in Southern California went back to the prices before recession. Kenny Slaught explains this happened due to interest rates, supply and demand, as well as job growth. As of now, mortgages with a fixed rate over a 30 year period are about 3.5%, almost as low as the 3.31% registered in November 2012. The low rates and job growth, like a 2.4% growth in Los Angeles County, show why prices raised so much. While homes in California have various prices, the value of properties here is higher than any other state except for Hawaii. The supply is not able to meet the demand, and new home owner prefer to choose less expensive condos.
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