As the Chinese economy plummets, the U.S. starts off 2016 on the wrong foot as American stocks kick off 2016 with 400-point plunge. Now is the time to think about the economics of Downtown real estate and what that means for buying and selling Downtown properties.
We’ve experienced unusually quick growth of price values in Downtown Los Angeles over the past 4 years. The L.A. Loft Blog, the authority of Downtown real estate, was the first to help this process by discussing the huge gains that buyers would be receiving in return for their foresight. Homeowners, home buyers and the L.A. Loft Blog have prospered. Now that we are in nearly the reverse situation, many are concerned that home prices may drop in the near future. Will Downtown condo and loft values drop soon? We will continue to benefit by taking time to see future possibilities.
First of all, there is no reason to expect a quick decline of Downtown real estate prices any time soon. Prices usually drop the most sharply immediately after the public displays unsubstantiated confidence. China is the most excellent example of unsubstantiated confidence. Many Chinese falsely believed (and even some American financial journalists believed) that China’s economy could only improve and could not drop sharply because the “communist government controls would take action to prevent a steep decline”. This type of thinking is not only wrong, but also causes a huge bubble that will burst from any substantial catalyst. China is today getting its big recession that was destined to come. The L.A. Loft Blog reminds everyone that up and down cycles will always happen, and the long term trend for real estate is always upward.
The long term trend for Downtown real estate is up, way up! The L.A. Loft Blog is in the enviable position of seeing and hearing what home buyers and sellers are thinking and doing every day. A large percentage of would-be homebuyers have remained cautious due to the home value drops of 2007-2010. Prospective home buyers have largely remained cautious through the upswing from 2011 to today. In the past year, Downtown home values increased another 8%. This caution, combined with rapid growth and rennaisance of Downtown, has created a very positive stability in Downtown home prices.
Downtown Los Angeles has many advantages over other American neighborhoods. DTLA has received billions of dollars of improvements over the the past few years in the form of new Metro transportation, new residences, new shops, restaurants, hotels, entertainment and updated office buildings. Downtown was among the last neighborhoods to go down in value in 2009, and was then among the first American neighborhoods to quickly start rapidly gaining value just a couple years later. In fact, Downtown is so different from the rest of the country, that listening to the mainstream news has proven to be counterproductive to taking advantage of Downtown real estate. The national news and even the local news did not report promptly on the superior real estate performance of Downtown L.A. We can always count on the government and mainstream media to let us down when it comes to understanding the Downtown Los Angeles real estate market. Even the Downtown News failed to fully communicate the economic turnaround that was already happening for DTLA at the beginning of 2012.
Downtown is today receiving a tremendous amount of positive physical pressure for upward home prices due to its remarkable urban turn-around, billions of dollars of new investments and infrastructure, massive influx of professionals and wealthy residents, and then add the trillions of dollars of federal quantitative easing to the mix. Because we still have a healthy amount of pessimism and caution, the pressure on Downtown home prices remains balanced and upward.
After several years of rapid growth, and while things are so rosy for Downtown, now is precisely the time to start thinking about and to begin to prepare for the next big downturn in home values. We are unlikely to have a huge drop in Downtown prices for decades, but we can have softening at any time. Potential home buyers should be moderate and conservative in purchasing what they can afford, and potential home sellers should consider selling in the next few years while prices are up. An 8% price increase pressure seems to be sticking. Because Downtown has above average prospects for growth, DTLA homeowners should only be selling today if they need the money, if they need to move or if they have other excellent prospects for investing their money. All Downtown homeowners should keep on top of the real value of their home with a free online home evaluation.
Local Real Estate Agent Guarantees to Sell Your Downtown Condo or Buy it for Cash Downtown
Los Angeles – Every month, thousands of homeowners are faced with the stressful dilemma of whether to buy first or sell first. You see, if you buy before selling, you could run the risk of owning two homes. Or, just as bad, if you sell first, you could end up homeless. It’s what insiders in the industry call the Real Estate Catch 22, and it’s an extremely anxious position to find yourself in. This financial and emotional tightrope is one you usually have to walk alone because most agents have no way of helping you with this predicament. But one local realtor is using a unique Guaranteed Sale Program which solves this dilemma. This program guarantees the sale of your present home before you take possession of your new one. If your home doesn’t sell in 120 days, they will buy it from you themselves for the previously agreed price ensuring that you never get caught in the Real Estate Catch 22. Before you hire any professional, you should research the market to find out who can do the best job for you. When interviewing agents, find out what kind of guarantee they are willing to give you with respect to the selling of your home. Unfortunately, you’ll find that most agents simply cannot make such a guarantee. To help you learn more about this program and how it can make your move less stressful, a FREE special report has been prepared entitled “How to Avoid Getting Stuck with Two Homes”. To hear a brief recorded message about how to order your FREE copy of this report call toll-free 1- 800-791-4541 and enter 1022. You can call any time, 24 hours a day, 7 days a week. Get your free special report NOW to find out how to guarantee the cash sale of your home.
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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.