A fed study showed moderate growth in September through early weeks in October even among growing energy costs and the economic fear that creates. More to the point though, in real estate it appears that some sellers of high-end homes are finding out that it takes more time to sell homes that only celebrities and friends of Bill Gates could afford. Although, sales continue to rise agents like myself are working harder to get these higher priced homes sold. Believe me, I’m okay with that.
Having said (typed?) that, homes that are considered mid-level with prices at or below $500,000, are selling very quickly and at full asking price. So prices are going up, big houses are on the market longer, rents are getting more expensive…. Hold On! Wait a minute… According to the associated press, renting is better in Southern California because rents are stable and at a “mild” level. As an example, they say, the average rent in a Los Angeles apartment complex is a comfortable $1440 per month. Which according to my numbers is an increase of 6% since last year. (yup that’s holding steady all right)
Of course, there was no talk of what kind of apartments these rents represent and whether these numbers where polled from rent controlled areas of Los Angeles or why renting at 1440 is considered mild when many folks could buy a house with that payment.
** Note, since I bashed (lightly) the associated press for not disclosing their poll source I thought I would share that my 6% increase figure includes all of the CITY of Los Angeles and figures only complexes with more than 4 units of 2 or more bedrooms and 1+ bathrooms (these are the most common). Not being a mathematician, There is a margin of error there but (I think) only because larger complexes tend not to increase rents year over year like their smaller counterparts and in rent controlled areas the annual increase allowed is usually less than 3%. Take my best guesses with a grain of salt and go out and buy a house already!