The recession was caused by the bursting of the real estate market bubble in 2007. Although this has already been predicted, the US was just not prepared for the bubble to burst at the time. Unfortunately, because of the massive amount of negative amortization loans that were originated before 2008, hence creating the housing market bubble, people were already expected to default on their loans when they switch to the standard payment at full index (Principal, Interest, Taxes and Insurance) and nationwide alarming number of foreclosures led to the recession. The recession has resulted to a massive lay off as well as the loss of homes because people who got laid off could not afford to pay for monthly amortizations.
Even mortgage companies have gotten a massive financial haircut in acquiring assets through foreclosures. And because the housing market was crashing nobody was buying. Mortgage lenders are left with a huge number of toxic non-performing assets also known as Real Estate Owned Properties (REO). On another hand Mortgage lenders were unable to sell the REO’d properties after acquiring them from foreclosures because of the economic condition of the country. Big banks like Washington Mutual, Lehman Brothers, IndyMac Federal Bank, HSBC Finance Corporation and many others went down under because of extreme amount of losses.
After over a decade of struggle, the after effects of the Great Recession in the US is now subsiding. Together with this, we have seen a continuous upward trend in home prices in metropolitan areas like in Los Angeles, Long Beach and Glendale, California. There was also a dramatic increase in the number of jobs in these metropolitan areas catering to hospitality, services for healthcare, education, service jobs for professionals and businesses as well as in the construction industry. The attributed increase in net gain for all other sectors other than construction came close to five percent in 2015 while the construction industry was responsible for a growth in gain by about four percent. These are all good signs.
As the stability of jobs in Los Angeles County is continuing, it is quite obvious that this is bound to positively impact the market in selling real estate properties in the county in general. We have been seeing a constant increase in construction of residential homes in metropolitan LA. And this is usually attributed to the affordability of the general public to purchase homes that are within a reasonable price based on their level of incomes.
If you have chosen to move to Los Angeles finding a good Real Estate Company or a reputable real estate could have been hard in the past. But now, thanks to websites like Zillow.com and Trulia.com it is now easy finding listings online and you will be connected to the realtor immediately. That is how it starts. If you are selling your property for reasons like the property being underwater there are companies who can take them off of your hands at no commission thus maximizing the amount of money you get out of the sale. Whichever side of this spectrum you are in, you sure will find the home you will love in City of Angels.