One of the economic aftershocks that stubbornly remains more than two years after the COVID-19 pandemic began is the simultaneous spike in residential real estate prices and rents, and the plummeting inventory of available housing. In fact, between March 2020 and February 2022, the Los Angeles-Long Beach-Anaheim metropolitan area’s median single-family home value spiked 31.4 percent to $936,546, according to Zillow.com’s median home value and market rent reports.
Whether the immediate causes of the expensive market for single-family homes are snarled supply chains, historically low interest rates, or a higher demand for larger houses with more space for an office as a by-product of more flexible remote work arrangements, the market has had a significant impact on clients in the divorces we handle. In some instances, I have witnessed house sellers receiving between 30 and 40 bids during their first (and only) weekend on the market, while in other cases I have engaged in heated court battles over how high or (how low!) to price houses in this difficult-to-gauge market.Continue reading