It is not easy to make a solid forecast of the housing market even under the most predictable steady conditions. It becomes even more challenging given the current scenarios such as dropping oil prices, rising interest rates, China's collapsing economy and a volatile stock market.
According to a recent report on The Hollywood Reporter, it is not safe to describe the market as stable. In a previous interview by THR Aaron Kirman, the president of John Aaroe Group's International Estates Division regarding the effect of the current global economic conditions on the real estate market of L.A., he said it is too early to tell if there is any major impact. Kirman said, "It's a little too soon to see a major impact, but people are definitely talking about it, and that makes an impact."
He continued, "I do have one client who told me last week that he had suffered some big losses in the stock market and needed to sit on the sidelines for a while." The Realtor works with many Chinese clients and had been expecting to take a hit but instead has "actually gotten more business lately, not less," he said. "The really wealthy Chinese have already pulled their money out of China and see the U.S. as a much safer market to invest in."
Also according to The Hollywood Reporter, Tami Pardee of Pardee Properties believed that "L.A. is still a good value" if compared to markets like San Francisco and New York. She further said that the demand is still high for properties that are located near the beach or in the tech sector. She notes, however, that homes are in the market for a longer time because buyers are more demanding. Lastly she reminded everyone that prices always go down during election years.
