LA Condo Sales Hit 20-Year Low
Key Questions
Why have LA condo sales hit a 20-year low?
High interest rates, rising HOA fees, and increasing insurance costs for aging buildings are driving the decline. Condo prices have fallen 4.5-5%, creating additional sales hurdles, particularly impacting Long Beach owners.
How are rising HOA fees and insurance affecting LA condo market?
Aging buildings are causing HOA fees and insurance premiums to rise, reinforcing financial pressures on owners. This contributes to low sales volumes and challenges in the market.
What insurance requirements do California HOAs face, and should they seek multiple bids?
California law requires HOAs to maintain property and liability insurance, though coverage levels vary across associations. Competitive bidding for insurance makes sense in many cases to manage costs, but it is not always necessary.
LA condo sales at 20-year low, prices down 4.5-5% amid high rates, rising HOA fees/insurance for aging buildings. Hits Long Beach owners; reinforces insurance/fee pressures, Fannie tweaks, sales hurdles.