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Can I Afford To Buy A Property In North Hollywood?

Property prices in certain parts of North Hollywood have increased by as much as 19% over the past year, according to Patch. Prices have risen every month since 2020, which may leave you wondering how you can afford to purchase a home in the region. But experts predict there could be good news coming for North Hollywood property hunters.

More properties for sale

One reason for the high property prices in North Hollywood at present is the lack of houses on the market. People have yearned for security over the past 18 months and moving home has been the last thing on many people’s minds. This has driven prices up substantially. For example, the median cost of starter homes in the Los Angeles-Long Beach-Glendale CA Metropolitan Division has gone up by 19% in a year. It’s a similar story in the Los Angeles Metro, where an increase of almost 18% has been seen. However, there are signs that homeowners are gaining confidence to sell up. A larger market of properties will halt the growing cost of homes and make them more affordable.

Low mortgage rates

If you’re wanting to buy a home in North Hollywood and need to borrow cash to complete your purchase, now’s the time to do it. Mortgage rates are currently at one of their lowest levels, so you’ll benefit from a lower monthly repayment fee. Recent rates for a 15-year mortgage have hovered around 2.18%, while rates on a 30-year mortgage typically come in at below 3%. A mortgage calculator will help you to determine exactly how much you’ll pay each month and it’s always worth checking exactly what type of North Hollywood property you can afford before proceeding further.

Falling prices of construction

The cost of construction materials has sharply risen over the past year, with the cost of lumber peaking at $1,500 in May of this year. This has pushed the price of building a home up. Supply issues and a shortage of workers has also meant the cost of constructing property in North Hollywood has gone up. But now that lumber prices have come crashing down to below $400 per thousand board feet, new constructions in the region, such as District NoHo, will be cheaper to build. In turn, this will make overall house prices lower.

Homes in North Hollywood have risen sharply in price recently. But this growth should soon falter as multiple factors take effect, meaning more people will be able to buy their dream home in the area.

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Author: nohoarts