Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?
This is your opportunity to ask questions. No question too simple or too silly.
Culture war topics are accepted, and proposals for a better intro post are appreciated.
Jump in the discussion.
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Notes -
On number 1, I don't think less immigration will have anything to do with LA home prices. Illegal immigrants (and most legal immigrants for that matter) are not purchasing multimillion dollar homes in Los Angeles.
On number 2, I do think house prices are still adjusting to higher interest rates and that means prices still have further to fall. The problem is this doesn't apply to all geographies; California in particular is its own fucked-up brand of real estate. Rent control, the continuation of Prop 13, and horrendous inability to build new housing in CA skew the market so badly, higher or lower interest rates seem almost a non-factor. Now with that said, if you think a recession is likely in the next few years, which I think is a real possibility, I would expect mortgage rates to fall as the fed cuts rates. So while you may not see home prices fall, you can end up with a 4 or 5% mortgage rate instead of a 6 or 7% one.
My prediction: home prices in CA stay flat or fall very slightly. Buyers are priced out due to price leaving a smaller pool of buyers able to afford homes. However, the demand for LA real estate is so strong, even this limited pool of buyers will keep prices propped up. That, coupled with the low tax rates caused by Prop 13 (and the downstream effect of homeowner's not needing to sell due to low tax rates and thus limiting the supply) keeps prices steady. I do think tariffs and the chaos of the Trump admin may cause economic damage leading to rate cuts, so you may be able to snag a cheaper mortgage.
But who knows. California real estate is insane and we're living in a wild political time. If you have the money today, I wouldn't necessarily try to time the market. Just buy the house you can afford in the area you want to live in. Or rent. Renting in CA is an awesome deal compared to anywhere else in the US.
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