When will it happen again? According to a recent Fortune Magazine article, U.S. real estate is 25% to 60% overvalued. To find out if that is correct, there are signs to watch out for. Professors at Harvard tells us How to Use Real Estate Trends to Predict the Next Housing Bubble.
Here are the observations by the L.A. Loft Blog from our years of experience of talking to thousands of homeowners, buyers, sellers, renters and landlords about Downtown Los Angeles market:
We are in a “normal” real estate market, which seems boring to some and scary to others. Appreciation in Los Angeles is running around 6%, while nationwide average annual real estate value incease is usually around 3%.
Based on the numbers and previous crashes, Downtown Los Angeles is not yet due for a major #realestate #crash. In fact, a major upswing is more likely than a big crash in the next few years. But much more likely is one of these: a normal healthy market, mediocre boring or stagnant market with stable prices. Also, during the last housing crash in 2009, Downtown L.A. was one of the very last neighborhoods to drop in price, and then it was among the very first neighborhoods to shoot back up in value. How’s that for a strong local real estate market!
While a few loft condo units have not increased in price in the past year, the average went up almost 8%. One Little Tokyo Loft in DTLA sold just over a year ago for a little more than $300,000 and then, after significant restoration, it recently re-sold for a whopping $940,000!!!!!!!!! PHOTOS
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Copyright © 2016 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, seller 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.