When you’re buying a condo for sale in Downtown Los Angeles, you might be surprised at the prices you see.
So what really affects home prices in DTLA?
3 Things That Affect Home Prices in DTLA
Three big factors that affect home prices are:
- What’s happening in the housing market
- The condo’s location
- Other condos for sale
What’s Happening in the Housing Market
Real estate market conditions play a huge role in the prices you see when you’re shopping for a new home. Conditions include:
- How many condos are currently for sale in the area
- How quickly buyers are making offers and purchasing condos in the area
- New construction in the same area
When there’s a shortage of housing, buyers tend to fight over what is available – but if there’s a surplus, condos will sit on the market for what seems like ages. That drives prices down, because those sellers still want to sell, which is good for buyers.
The Condo’s Location
Location is exceedingly important in real estate, and it’s even more specific than you might think. One street may be more desirable to buyers than the other (just look at the differences in neighborhoods like Beverly Park and Upper Laurel Canyon, for example) – and that can be due to things like upscale buildings, restaurants and shops, access to highly rated schools, and several other factors.
Other Condos for Sale
When someone lists a condo for sale, his or her real estate agent compares it to other, similar condos in the same location to figure out how much buyers are likely to pay for it. The agent will look at homes that sold and homes that didn’t sell, as well as those that are currently on the market – it’s a way to size up the competition. At the same time, it lets recent history (no more than 6 months in the past) help determine a reasonable sales price for a condo. When every condo on one street sells for between $350,000 and $360,000, and the one you’re looking at has very similar amenities to the rest of them, you can expect the price to be about the same.
Are You Buying a Loft or Condo for Sale in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale