I’m 35 And Want to Buy a House in LA: What Do I Do?

Buying a house in LA

Here’s an interesting fact: in 1980, about two-thirds of Californians who were ages 35 to 45 owned a home. By 2021, only about 40% of Californians in this age group were homeowners. The average age that people become homeowners in California is 49, the highest of any stage. However, if you lived in Arizona, you’d have a 50% chance of being a homeowner by age 35. 

If you’re 35 and want to own your own home in Los Angeles, you need to be creative in order to escape becoming a negative statistic. Fortunately, there are a number of steps you can take to become a homeowner at 35.

First Steps: Build Your Credit

Your credit score will impact the types of loans and interest rates that you can get. Older adults tend to have higher credit scores than younger people, but there is no hard and fast rule that says you can’t build your credit score at age 35. You will want to achieve a credit score of 700 or better before you enter the mortgage loan process. 

Is this fair? Of course not. But it’s the reality; however, an experienced mortgage loan broker can offer you a choice of loan program which can fit your budget, goals and needs.

Second Steps: Establish a Budget

RentCafe reported that the average apartment rent in Los Angeles was $2,742 as of August 2023. At about 7.1% interest, a 30-year fixed rate mortgage for $350,000 would have a monthly payment of about $2,359. 

There aren’t millions of homes in Los Angeles County selling for under $350,000, but there are a number of smaller homes, townhomes, and condos available for modest purchase prices. You may also be able to find them in up and coming, desirable neighborhoods. 

Third Steps: Get Pre-approved

You have probably heard about houses selling for more than  their list price, and also about people buying homes with cash-only offers. You can avoid disappointments when you’re ready to make an offer to buy a home by getting pre-approved for a mortgage.

Next Steps: Work with a knowledgeable real estate professional

It seems easy to look at houses online. Nearly every home search website has a mortgage calculator built-in, and it will also show you pricing history for the home you could be interested in. However, there are many aspects of buying a home which aren’t usually covered by online advice sites and mortgage companies. 

You’ll get the best deal and find the home that’s right for you by working with a human expert. Fortunately, California Platinum Realty and California Platinum Loans have you covered. 

Sources:

RentCafe. “Los Angeles CA Rental Market Trends.” url: https://www.rentcafe.com/average-rent-market-trends/us/ca/los-angeles/

Wagner, David. “Homeownership Rates Are Plummeting For Younger Californians (And No, It’s Not About Delayed Marriage),” LAist, 8 May 2023, url: https://laist.com/news/housing-homelessness/housing-homeownership-home-buying-rates-young-california-terner-center-berkeley-study

Yale, Aly J. “Your Credit Score Affects Your Mortgage Rate—Here’s How to Improve It.” Wall Street Journal BuySide, 22 February 2023, url: https://www.wsj.com/buyside/personal-finance/mortgage-rates-by-credit-score-287bb3d8

Get The Inside Scoop On How To Leverage Median Sales and Listing Home Prices

Just Listed

Year-over-year home sales average price. Month-to-month median listing price average. Median listing price per square foot. Los Angeles’ real estate market is one of the most complex in the U.S. and it’s full of statistics.

Each one of these statistics tells a different story, but some are more important than others. Our staff at California Platinum Loans and California Platinum Realty have seen the market change and grow over time. We thought that now would be a good time to create an overview of real estate stats and what they mean.  

Median Vs. Average Price Figures

Median refers to a number that’s midway between the highest and lowest halves of a set of numbers. Median isn’t the same as average. How does that work?

Let’s look at five different homes offered for sale at these prices: $160,000, 180,000, $200,000, $250,000, and $1 million.

If we’re calculating the median price, one price is in the middle, dividing the two lower prices from the two higher ones. The median sales price of this group of homes is $200,000.

If we wanted to calculate the average sales price among this group, we would add all five prices together, then divide by the number in the series: 5. The average sales price among the group is $358,000.

Houses Selling For Above Listing Price

We can often see articles about homes selling for several thousand dollars above their listing price. But Realtor.com statistics show that this isn’t the case for every home that sells in the L.A. area. If it were, the median listing price would be lower than the median sold home price and it isn’t.

In June 2023, Realtor.com reported that the median sold price for approximately 7,000 homes in Los Angeles was $925,600. That means there were about 3,500 homes in the area that sold for less than $925,600 in the past year, and about 3,500 homes that sold for more. At the same time, the median listing price was $1.2 million.

Looking At The Rental Market

As of June 2023, the median rent in Los Angeles was $2,900 according to Zillow Rental Manager. With about 12,000 homes for rent throughout the area, that means that half of these homes rented for less than $2,900, and half for more. Last year at this time, the median rent in L.A. was $200 higher: $3,100. While Zillow lists very few listings at the lower end of the scale, there are over 2,200 rentals for $5,000 and above in the Los Angeles market. 

There are a lot of opportunities in the L.A. real estate market. Talk to us at California Platinum Loans to discover the opportunities that are right for you.

Sources

Realtor.com “Los Angeles Real Estate Overview,” 24 June 2023, url: https://www.realtor.com/realestateandhomes-search/Los-Angeles_CA/overview

Zillow Rental Manager. “Los Angeles, CA Rental Market.” 24 June 2023, url: https://www.zillow.com/rental-manager/market-trends/los-angeles-ca/

3 Secrets of Being A Smart Buyer in LA’s Home-Buying Market

Los angeles houses

We work with many buyers at California Platinum Realty and California Platinum Loans, and we’re confident in saying there’s no “one size fits all” or “one right way to buy a house” in LA. At the same time, there are still some ways that every home buyer in the LA market can be smarter and get everything they want in a home, mortgage, and buying experience.

Find an up-an-coming neighborhood

The Los Angeles Times maps over 270 neighborhoods, but there are actually over 400, and potentially more than 500 Los Angeles neighborhoods. Add in over 80 incorporated cities in Los Angeles County and there are many choices of neighborhood in addition to the best-known neighborhoods that command the highest prices.

An up-and-coming neighborhood is also called a transitional neighborhood. This can mean that it’s transitioning from multi-family housing to single-family housing, or that the people moving into the area have changed and property values are rising. Some transitional neighborhoods in LA include Palms, Mar Vista, and Playa Vista/Playa del Rey. These neighborhoods are near beaches, the Marina, and Venice/Santa Monica, but you’ll find other transitional neighborhoods throughout the county.

Set a timeline and stick to it: with help

You’ve probably already learned that getting pre-approved for a mortgage gives you an important advantage when making home-buying offers. According to Curbed, buying a home in Los Angeles can take anywhere from 1 day to three years. 

If you’re not making an essential move for work or other reasons, choose the time of year that you’d prefer to move and work backward. If you’d like to move during the summer so your family can adjust to a new neighborhood or school, your six-month timeline should start in January. It’s important to have your tax returns, income records, and other information in order before you start your home buying process. When it comes time to look for a home, set aside at least three months so you can get the best idea of your options and the location that’s right for you.

Work with experts who care about you and know the market

For most people, buying a house is the single largest financial transaction they will ever make. Our team at California Platinum Loans and California Platinum Realty has helped many people through the home buying and selling process. 

We are experts in Los Angeles real estate, and we know the market in many desirable (and transitional) neighborhoods. Combined with connections with mortgage lenders and a variety of loan programs, you will shorten your home buying timeline and gain many advantages by working with us.

Sources

Chiland, Elijah. “The Los Angeles Home Buying Guide,” Curbed, 21 January 2020, url: https://la.curbed.com/2018/4/27/17245204/los-angeles-real-estate-buy-house-guide

Los Angeles Times Data Desk, “Mapping LA: Neighborhoods,” LA Times, url: https://maps.latimes.com/neighborhoods/neighborhood/list/