Real Estate News: Home Prices Plummet in Downtown L.A.
As the property market sinks throughout Downtown and Greater Los Angeles, loft and condo buyers and sellers often receive information that is three months to a year late. For those who wish to take advantage of better market timing, the LA Loft Blog provides the fastest, most actionable real estate market updates for Downtown Los Angeles and surrounding loft communities. August 2019 showed a dramatic drop in prices, a worsening of the real estate market in nearly every way. The numbers provide confirmation that Downtown Los Angeles is now a buyer’s market.
PROPERTY MARKET ALERT: DTLA PRICES DOWN SHARPLY IN AUGUST
Aug 2019 Year-Over-Year Market Change – (Downtown and Nearby)
Total of completed transactions: Down 28%
Average Sold Price: Down 3.8% (Dropped by $27,369)
Median Sold Price: Down 7% from $692,500 to $647,000 (Dropped by $45,500) #losangeles #realestate #bubble
Taking longer to sell: Average days on market grew from 62 to 82 days (20 days longer on market) Properties selling 32% slower than same period previous year.
The market is diminishing some fortunes, while creating other opportunities.
Two Deadly Mistakes for Sellers to Avoid in a Buyer’s Market
One example of a struggling property is a large live/work condominium unit for sale in Los Angeles. The stylish industrial loft with rare character and natural light has been viewed by a substantial number of buyers. Several of the buyers have decided to purchase other properties that present a greater value. All buyers, along with just as many real estate professionals have concluded that the asking price is significantly too high, and that the presentation needs improvement. The unit appears smaller than its true grandeur because it is constricted by an added dark bedroom, long narrow entryway, and clutter. For the price, the unit is slightly insufficient in maintenance, cleanliness and polish, including the kitchens and bathrooms. | VIDEO
The main issues that need to be corrected are:
1. Asking price is too high
2. Tenants are creating poor presentation / reduction of value
Top national professional real estate coaches have been consulted by local loft specialist real estate professionals to ensure that the property and market have been analyzed thoroughly. The group has concluded that high asking price, along with occupancy by current tenants are the primary obstacles to a successful sale. The L.A. Loft Blog expects prices to continue to fall — financially hurting sellers while opening up more possibilities for home buyers.
Several local loft specialists have concluded that the asking price is much too high for the type of loft unit in its current state. The unit presents a rare opportunity for a creative, visionary buyer who is willing to patiently negotiate in order to get an amazing large loft and a very low price per square foot.
Local Real Estate Market: Prices continue to drop. Home value decrease has been accelerating.
Several Los Angeles loft specialists with dozens of years of experienced have warned: Sellers who choose a wait and see strategy during a falling market risk future price drops being outpaced by falling market prices, causing a much lower final sale amount.
The local real estate market economic downturn has been accelerating. August median price is down significantly year-over-year. Downtown Los Angeles and Nearby median sold price is down 7% for that period from 2018.
There are several ways to attract a higher selling price. The two key actions for sellers to achieve a successful sale in today’s Los Angeles housing market:
1. Set the asking price slightly below the comps.
2. Increase the perceived value by presenting the property fixed up, vacant and professionally staged.
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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.