Home sales in Los Angeles slowed down at the end of the year, causing rippling concern throughout the market that it could be the precursor of a recession. However, Brett Miller, a real estate agent at Nourmand & Associates, says that concerns are greatly exaggerated. Instead, he points to the strong and diverse economy and conservative lending practices to support an healthy housing market, rather than one on the brink of a bust or bubble.

“The previous crash was fueled by a wave of risky lending. Borrowed money being used for down payments, lenders didn’t require proof of income, etc. I believe the risk of a crash from over borrowing is minimal for obvious reasons such as tightening lending standards and qualifications,” Miller tells GlobeSt.com. “Today, the local economy is diverse and despite concerns over trade wars with China economic indicators remain strong and positive. Economists do expect an economic down turn in 2020 as interest rates rise and stimulus from President Trumps tax cuts and increased federal spending fade. That doesn’t have to lead to a housing bust.”

Despite the slow down in home sales in Los Angeles, Miller says that there remains strong demand for housing and homeownership. He expects that demand will remain healthy due to the shortage of housing. “With extra economic activity spawned by housing construction and household formation, there is upward price pressure and the US economy as a whole is booming and we could be looking at an even longer run of economic prosperity,” he explains. “The shortage of housing and new construction units means prices still prevail in California for 2019.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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