LOS ANGELES—Encouraged by low interest rates and pent-up demand, the West continued its slow journey toward recovery in 2012. The Golden State is still attractive to residents and businesses, even though the combination of Proposition 30 and higher federal taxes makes some ask, “Should I stay or should I go?”

In Los Angeles, cheap debt is exerting upward pressure on multifamily sales prices as investors become willing to pay more for apartment assets here. Han Widjaja Chen, SVP of Lee & Associates’ investment-services group here, says, “As the multifamily investment market trends upward, more sellers are ready to transact at market price.”

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