Industrial Live Work Space, Los Angeles House Inflation Rate, Stagflation and Real Estate Prices

REAL ESTATE NEWS

L.A. single family residence home prices went up while inner city condo prices fell in 2020. Real estate markets and the shifting economy are inexorably linked.

Real estate is one of the best hedges against inflation because inflation exerts upward pressure on home prices. We’re now entering a period of stagflation because a significant number of Americans are convinced that shutting down much of the economy can reduce viruses. It cannot. Colds and flu-like illness have always been with us, and shall be for the foreseeable future. Panic, hysteria, exaggeration and overreaction have always caused more harm than good. Shutting down jobs can only reduce wealth, decrease GDP and diminish resources needed for vital needs such as health care, food and housing. In addition to reduced real wealth, stagflation is also composed of money printing and quantitative easing. The federal reserve and federal government have committed themselves to unlimited money printing and unlimited quantitative easing. Their promise of unlimited money supply is a promise of runaway inflation. The dollar has already been crashing in relation to bitcoin dramatically for 11 years. Paper products and building materials have shot up dramatically. Stagflation is a combination of this inflation with the reduction of economic output — reduction of wealth. We’ve been promised more money and less wealth. That’s the stagflation that is now being delivered. How does this affect home prices? | Blog Video

New suburban home prices went up sharply in 2020 because the money supply was dramatically increased at the same time that the public was told to stay safer at home. Home owners were temporarily able to afford increases in the comforts of the single family home: home improvement, add-ons, expansion, new swimming pools, new home theaters, new landscaping, new computers along with more expensive homes. At the same time, most big city urban areas declined in perceived safety, desirability and price. These two trends are expected to continue, but most suburban homes are likely plateau in price around 2021 because the home improvement phase has already been accomplished, going “back to school” is going back in fashion, home prices are relatively high in comparison to GDP, and the overall economy shall face new crises as massive unwinding sets in for many industries. While big cities shall continue to bear the brunt, suburbs shall also begin to feel a financial squeeze as commercial real estate, travel, touring, restaurant, retail and other locked down industries realize exploding debt, failures, insolvencies and liquidations.

Q: Where can I find industrial live work space? A: Find lots of information about industrial live work space on the Loft Blog, including prices for sale and for lease.

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, BRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.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.

Hyperinflation and Home Prices

REAL ESTATE NEWS

The Wall Street Journal recently reported that we’re at the end of a long walk off a short pier of high budget deficits, into an ocean of inflation — skyrocketing prices for food, gas and housing. Historically, this leads to high consumer prices that crush the economy. The cause? We’re suffering from novel economic oppression — government-induced depression and stagnation. Until free enterprise is restored, we shall continue to see a spastic dichotomy of extreme home prices in suburban developments, along with rapidly falling home prices in sinking major metropolitan centers.

Economic depression, which forces prices down, serves as the primary force masking serious inflation. A better word for this masked inflation is stagflation. In 2020, we entered a worse depression than the Great Depression of 1929. In terms of stock market crashes, unemployment spike and drop in GDP gross domestic product, we’ve dwarfed every adverse economic event in U.S. history. The only reason that the stock market is not in total shambles is because stock prices rise temporarily from direct government overspending, direct fed injections, deficit spending and inflation. The stock market is temporarily disconnected from fundamentals. In fact, Bloomberg calls the situation “the biggest financial bubble in history.” The crashy volatility of 2020 reveals the tremendous strains. This includes crushing downward forces that are being exerted on the markets by the government-caused demolition of Main Street and destruction of the middle class, compounded by the most deep, pervasive and persistent mass hysteria in modern history.

Free enterprise is the goose that lays the golden eggs. Our goose is being cooked. The government has diverted more resources away from small and medium sized businesses than ever before in history. In doing so, they have emptied the pockets of more middle class Americans than ever before. The unintended consequences have already begun to play out in a series of cascading crises, atrocities and crimes against humanity.

Panic causes more harm than good. In extended panic mode, people cause far more danger and damage than they avoid. The economic damage of lockdown, depression and price inflation rapidly trickles down to the struggling and poor. The United Nations has repeatedly warned that the most vulnerable and tragic victims of hysteria and lockdown are the hundreds of millions of children worldwide who are pushed closer toward starvation.

The U.S. and western world is in a quagmire and conundrum of choosing between capitulating to the worse economic depression in history or the illusory boom of unlimited money printing — certain runaway price inflation à la the Weimar Republic. History begs to remind us of the repercussions: When money becomes worthless, holocaust easily follows.

The basic components of home builders, the 2×4, more than tripled in price in 2020. According to Barron’s, the home price surge says inflation is real. The FRED M1 Money Stock chart confirms it: Inflation Monster Has Been Released. Hyperinflation is here. Bond holders beware. The keys to surviving inflation, stagnation and their resulting atrocities? The tried-and-true survival basket filled with cash, low personal debt, assets such as real estate, precious metals, stocks, along with the 11-year proven vaccine against the diseased dollar: cryptocurrencies.

For now, the U.S. chooses the wrong route — banana republic style edicts, censorship, propaganda and cover-up. Deceptive tactics cannot immunize us from economic reality. Only truth, light, capitulation and work ethic can overcome the most imposing of obstacles.

Find out how much the home down the street sold for. Get a free list of recently sold Los Angeles home prices, along with a list of homes actively for sale. Fill out the online form:

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Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, BRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.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.