Updated about 7 years ago on . Most recent reply
First Time Home Buyer
Hello! First time home buyer in LA here. Looking to buy a 2 br condo in an area with appreciation as the priority. Mainly looking at Toluca Lake/NoHo area (<$550K), but open to others. I'll post a few questions to whoever is willing to answer:
1) Given the high rates right now, with 2 more on the way this year, should I wait till next Spring to buy rather than this fall? How much credence is there to the theory that with the impending interest rate hikes and the slowing sales in LA, prices will likely fall soon?
1a) Lenders say i shouldn't fear the interest rates as a refinancing could be done fairly easily. But I'm more concerned about how the housing prices are inversely related to the interest rate ie. Interest rates going up more --> housing prices falling due to less demand (from presumably less affordability). Is it a scenario currently that I may be buying high knowing that an impending dip is coming?
2) Are there areas other than Toluca Lake/NoHo I should be looking at for better appreciation prospects? I fear that while Toluca Lake/NoHo are decent areas with studios nearby (for hedging of market correction risk), 2 br condos are already at $500K and therefore further upside might be limited. Am I being too conservative?
-Darren