Community Corner

Realtors: Home Prices to Fall as Rates Increase

Home rates increase faster than buyer incomes, signaling a potential drop in property values in the Los Angeles region, according to real estate researcher Zillow.

When looking to buy property, it’s a pretty safe bet that you’ll be paying a larger sum of money for more square footage.

Location is also a factor, which makes Marina del Rey one of the more expensive places in Los Angeles to buy a home.

The biggest lot for sale in Marina del Rey is located at 929 Dickson St., according to Aol Real Estate.

Find out what's happening in Marina Del Reywith free, real-time updates from Patch.

This 4-bedroom, 2,698-square-foot home with a third-story sun deck sits on 5,347 square feet of land and is selling for $1.75 million.

Home prices are increasing faster than buyer incomes and property values could begin to fall in Los Angeles, Bloomberg Businessweek reported.

Find out what's happening in Marina Del Reywith free, real-time updates from Patch.

Real estate research firm Zillow announced on Tuesday that relative to their median income, buyers in the region paid 48.8 percent more for homes in the fourth quarter of 2012. Compare that to the 44.6 percent more San Diegans paid for their properties.

“The days of historically high levels of housing affordability are numbered,” said Stan Humphries, Zillow chief economist, in a statement. “Current affordability is almost entirely dependent on low interest rates, and there’s no doubt that rates will begin to rise in the next few years.”


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