The biggest savings potential comes from buying a home in the most expensive location, the top-tier luxury home category.
When you’re thinking about buying a new home in California, you need to keep in mind the average price per square foot (APSF) in the city, which is $1,000 per square feet, according to the Real Estate Board of Greater Los Angeles (REBO).
That’s higher than the average of $700 per square yard, according the National Association of Realtors.
This is why a $1 million home in Manhattan is more valuable than a $500,000 home in Los Angeles.
With a high-end property like a $2.5 million home, the average home in LA would sell for $1.2 million.
However, if you look at a home that is less than $600,000, the sales potential is lower.
The average home sold for $865,000 last year in Los Angles.
So, to save even more money, you should look at more expensive properties that sell at a lower price per sq foot.
For example, a $3 million home is more affordable in LA than a single-family home in a cheaper neighborhood, which can be $1 to $2 million per square.
If you’re interested in finding a home with more affordability, we recommend you read our LA housing guide, the best LA housing for sale today.