HOME PRICES DROP (Downtown Los Angeles, CA) — February urban L.A. home values are down significantly from a year ago, with fewer properties sold, taking longer to sell, selling at lower prices, and less total home sales. The median price dropped by a significant 14.2%. Each property took 18% longer to sell, according to the MLS agents multiple listing service for Downtown and nearby loft neighborhood areas 23, 42 and 1375, comparing last month to the same period of the previous year. Compare February: #marketreport
2020: 37 properties sold; 73 average days on market; $620,000 median price; $26 million total volume
2021: 35 properties sold; 89 average days on market; $532,000 median price; $22 million total volume
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Q: DTLA Building Report, ShyBury Grand – Investment Report, Lawsuit. Request: How many of the units are rented vs being owned by private residences. — Teri A: Thank you for your request. SB Grand has a high renter ratio, likely around 60% or more renters. The HOA has approved a large renovation project for the building. No record found regarding current litigation, but there may be undisclosed litigation. The building exterior will be repainted, lobby and hallways completely redone, rooftop painted and new furniture installed. Building is currently undergoing cosmetic facelift with no special assessment or increase in HOA dues expected. Call for more details 213-880-9910.
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Pandemic price increases abound on Amazon.com, according to Financial Times.
Essential items see sustained significant price increases on Amazon in 2021, with some products jumping up many times their original price. Analysis by the US Public Interest Research Group studied 750 essential items sold on Amazon’s marketplace, comparing their pre-panic prices to what customers paid for them at the end of 2020.
Of 750 items, the prices of 409 increased by more than 20%, while 136 had more than doubled. Patio heaters, suddenly a must-have during winter lockdowns, saw the most significant percentage increase. One model skyrocketed from $150 to $699 — a 366% jump. | Blog Video
Home Prices Plateau
Despite massive federal spending, money printing and quantitative easing, some experts expect home prices to see a smaller rise this year than in 2020.
Southern California home prices and sales rose in December from a year earlier, continuing a so-called “pandemic housing boom” driven by rock-bottom mortgage rates and people needing more space to cope with lockdown.
The 6-county region’s median sales price jumped 10.1% from December 2019 to $600,000 last month, according to data released Friday from real estate firm DQNews. Sales rose 29% from a year earlier.
Real estate agents and other housing experts say the pandemic had supercharged the market. People with higher incomes who are most likely to buy a home in the first place have been relatively unscathed by the economic downturn. And some are looking for more space as some workplaces remain closed. Mortgage interest rates dropped to record lows, in part because of a Federal Reserve policy designed to stimulate the economy. Government -controlled mortgage company Freddie Mac reported the average rate for a 30-year fixed mortgage was 2.77% this week, down from 3.6% a year earlier. The drop has lured more buyers into a market in which they’ve found few homes for sale, prompting bidding wars on the most attractive homes.
Like gold, stocks and bitcoin, real estate provides a hedge against inflation. In Los Angeles County, the median price rose 11.4% from a year earlier to $700,000, while sales climbed 26%.
The upswing in the for-sale market is in stark contrast to the rental market, where struggling tenants have disproportionately been hit by job losses. The contrast shows how the coronavirus panic has exacerbated economic disparities in California, and in the U.S. at large.
Many low-income renters are behind on rent and worry they’ll eventually face eviction during a pandemic that has killed more than 400,000 Americans. The average rent in Los Angeles has also fallen as vacancies rise, in part because some higher-income renters are choosing to buy for the first time.
Stagflation, the collapsing economy with higher prices, best explains the crazy combination of up, down and stagnant prices. While it is true that some suburban neighorbhood prices went up in 2020 because families and office workers were locked down, forced to stay home more, the prices increases reflect a temporary need for more suburban style safety and more square footage due to temporary overuse of residences, not because of a long-term increase in value. Based on true accounts from actual real estate professionals in Los Angles, reports of a “pandemic real estate boom” are as overblown as other pro-pandemic propaganda that we are being forced fed by politicians and biased media. Most home values are stagnating or falling nationwide. Most urban home prices have been tumbling for several years. Commercial real estate has fallen off a cliff, as investors like Ben Mallah sell loser hotels in favor of safer properties anchored by major national brands.
Shorting oil is the money-making play as a new presidential administration confirms plans to reduce oil demand considerably by extending lockdowns and increasing regulations.
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