Speculation on the housing market in LA for the next 2 years? (Los Angeles: real estate, to rent)

[kchui1028]

I am thinking of moving down to LA and buy a condo there next year. I own a biz so proximity to employments is not a problem for me. I'm more concerned over the pricing of the housing market in LA by next year.

My most desirable location to buy a condo would be in Hollywood Hills. Do you think the price for a condo there is reasonable (300k - 500k) right now? Or is it still expensive/normal/low in this recession?

Would you speculate the housing market in LA, (more specificly, Hollywood Hills) to jump in the next few years when the recession is over?

[JohnG72]

What makes you think the depression will be over in the next few years?

[kchui1028]

Originally Posted by JohnG72

What makes you think the depression will be over in the next few years?

that's why i said speculating the housing price, i know nothing is certain.

[CapnHawk]

Don't look for housing prices to change much in the next 3-5 years.

[nmnita]

Let's face it, this is a gamble and no one has the crystal ball. My guess (all it is of course) prices have about bottomed out, but will they come back fast, probably not. If you buy now, you will be able to take advantage of the super low interest rates. Will you make a killing if you decide to sell in less than 5 or so years, probably not.

Nita

[user_id]

I think Los Angeles is still overvalued, the only thing that makes the current prices at all workable is the very low mortgage rates. But even with the low mortgages rates its still usually cheaper to rent, that is your monthly PITI will be greater than the rent for a similar property.

Personally, I would not even think of it in terms of whether the market is going to go up or down. Instead I would compare the costs of ownership to the costs of renting. When the cost of ownership is equal to or less than renting, then ownership can make sense.

Also, moving to a new area and buying is usually a bad idea regardless. The transaction costs to sell/buy real estate are rather high, so if change your mind it will be costly.