Should You Buy Luxury LA Real Estate Amid Covid-19?
I have received calls daily ever since the quarantine was put in place people asking if the market will crash and if it is a good time to buy real estate.
The answer is I don’t know its a bit too early to tell. What has happened is that there has been a minor adjustment in price point, and I believe we will see a few more changes in the coming months. The truth is that with interest rates where they are, it is a great time to buy. If you plan to buy and hold, I also don’t believe the Federal Reserve will be able to increase the interest rate for some time.
That would be catastrophic for the economy. With the amount of money we have printed, and with the amount of money of our stimulus package and the additional ones that will be needed, we will have a significant jump in inflation. Once this circus is over, we will have to put millions of people back to work. Many small, medium, and large businesses will not be able to weather this coronavirus storm, and the ones who survive will have to test the water before they start to hire at their prior capacity.
What Comes Next for Los Angeles Real Estate Market?
We most definitely will see a surge in foreclosures in residential, commercial, and income property. The biggest hit will be commercial and income property. We won’t see the real impact until the quarantine is all over, and landlords are allowed to file unlawful detainers. It seems that the state or federal government would need to assist the landlords and help them get back to financial health. It appears to be a logical move to avoid a crash in the segment.
Will Rent Go Up or Down?
In general, rental rates will remain lower, and I believe the state or federal government will have to role out a middle-class version of section 8. To help all people in need to get back on their feet. It will take years to make us whole. Small, medium businesses have to flourish once again and start to hire; they are the number one employer of America.
2020 Los Angeles CA Real Estate Market Summary
So is it a good time to buy. My response would be yes. Please take advantage of the low-interest rates, lock it in for a long as you can get. Rent it out if needed, there was a time that you couldn’t break even now you can. Buy and hold.
If you decide to buy get help from the top real estate agent in Los Angeles, Luis Pezzini has been on the forefront of LA’s luxury property market for years, call Pezzini Luxury Homes at +1-310-275-2076 and get advice and information you need today.