Realtors: Home Prices to Fall as Rates Increase

When looking to buy property, it’s a pretty safe bet that you’ll be paying a larger sum of money for more square footage.

Location is also a factor, which makes Venice one of the more expensive places in Los Angeles to buy a home.

The biggest lot for sale in Venice is located at 1221 Preston Way, according to Aol Real Estate.

This 5-bedroom, 4,977-square-foot, three-story sits on 10,890 square feet of land — a quarter acre — and is selling for just under $2.5 million.

Home prices are increasing faster than buyer incomes and property values could begin to fall in Los Angeles, Bloomberg Businessweek reported.

Real estate research firm Zillow announced on Tuesday that relative to their median income, buyers in the region paid 48.8 percent more for homes in the fourth quarter of 2012. Compare that to the 44.6 percent more San Diegans paid for their properties.

“The days of historically high levels of housing affordability are numbered,” said Stan Humphries, Zillow chief economist, in a statement. “Current affordability is almost entirely dependent on low interest rates, and there’s no doubt that rates will begin to rise in the next few years.”