REAL ESTATE NEWS
Will the recent stock market crash affect real estate? Yes, and weakening real estate has already affected the stock market. Many are unaware that the Downtown Los Angeles property market has been dropping in price and sales quantity for nearly 2 years now, as have many other local real estate markets across the U.S. American real estate caught the Coronavirus on January 21, 2020.
This week, it seems as though the economy is grinding to a sudden halt. Los Angeles Metro trains are virtually empty. Home buyers are evaporating. The L.A. Loft Blog provides analysis results stating that current real estate transactions have only about a 70% to 80% chance of success. Experienced Los Angeles real estate professionals say that the failure rate could quickly escalate to as much as a 93% chance of cancellation based on their 2008/2009 stock market crash experience, when 100% of transactions fell out of escrow for some Downtown Los Angeles real estate agents.
For the astute of means, such as Warren Buffett, significant market fear communicates that it’s time to get greedy. Jeff Berwick made 811% in profit in the crash. All markets offer opportunities for those who are motivated enough to learn, recognize and act on them. The biggest crashes on Wall Street or Main Street can bring the biggest opportunities for the most shrewd, especially for the cash-rich. They’re able to swoop in on bargain prices to gain all of the margin that the mainstream investors miss. If an economic crash is extra “bad”, it allows more buyers to come in and begin buying homes that they otherwise could not afford.
Many other types of opportunities exist in a crashing market. For renters who are paying high monthly rent, just about any time to buy is better than renting if they are planning on staying a while. Rent is a 100% loss to the renter that pays the landlords mortgage, while owning is almost always gaining equity for the home buyer. #crash #stock #realestate
Some stocks and businesses do well during economic downturns. Defensive stocks include:
Hasbro (HAS)
Ross Stores (ROST)
Walmart (WMT)
Amgen (AMGN)
Anheuser Busch Inbev (BUD)
H&R Block (HRB)
Dollar Tree (DLTR)
Other companies that can do well during recessions include film, theater and video game companies, along with other low-priced, economy products and services. Cigarettes, wine and chocolate can keep selling well, as do consumer staples like groceries, cleaning products, hygiene and cosmetics. Funeral services keep right on humming along. For real estate, the most economical properties, along with some super luxury homes continue doing well. Economical home renovators can stay busy. | Blog Video
Crashes and recessions are perfect opportunities to consult with financial advisors, spot inefficiencies, reduce costs, identify upcoming opportunities, reorganize, forge stronger plans, snap up bargains, prepare for new markets and lay the groundwork for bigger and better ventures.
The Alta loft that is the home of the L.A. Loft Blog was planned during a recession, then purchased at the bottom of a recession, helping to provide excellent long-term stability through all kinds of economic cycles. “We invested heavily in unique systems to really help buyers and sellers during challenging times,” says Los Angeles broker Corey Chambers, “That’s how we’re able to provide worried home sellers a guarantee that their home will sell at a price acceptable to them, or we’ll buy their home for cash.” That guarantee is especially helpful for move-up buyers to buy their new home without worrying about selling their current home.
Loft buildings that perform well during crashes and recessions include the Higgins Building, Alta Lofts and the Elleven lofts.
Home buyers and sellers can get free information on how to save thousands and reduce risks at www.ChambersGuarantee.com
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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.