Downtown L.A. Home Prices: Why do homes in Downtown Los Angeles cost over $600,000 on average, while homes in Chicago cost less than $300,000?
Supply and demand are the primary drivers of prices. There are many reasons why so many people want to live in Southern California neighborhoods:
#1 Nice weather; #2 Jobs / Economy; #3 Many things to do; #4 Better Schools; #5 Better Neighbors; #6 Overall growth / Improvement in the neighborhoods. The #7 reason is that SoCal home prices go up faster and steeper than other parts of the USA, making for a much better long-term return on investment. #dtla #investment
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Downtown L.A. Homes Sell For More Money, Faster Than One Year Ago
REAL ESTATE NEWS — Downtown Los Angeles continues to beat most real estate markets in both growth and stability. Compare recent prices, along with days on market, and we can see that prices continue to rise at a desirable pace, while homes sell at a brisk pace. Check out the market report:
In the most recent market (the last 6 months), Downtown L.A. homes sold at a median price of $619,500 with 42 days on market. #dtla #realestatenews
For the same 6 month period a year ago, the median price for Downtown LA (MLS areas 23,42) was $589,250. with 55 days on market.
This shows a value growth of $30,250 in 12 months with properties selling 13 days faster.
DTLA has also proven to be superior in down markets, slower to decline in price and faster to recover in price. While Downtown Los Angeles definitely has its ups and downs, it has proven to be safer than most neighborhoods as a financial investment.
Get a free list of Downtown Top 10 Best Investment Property Listings. Fill out the online form:
Congratulations to JB on getting an amazing loft in Downtown Los Angeles!
For helping buyers, sellers, renters and landlords in Downtown Los Angeles, 2016 was a remarkable year. It brought the best December ever in my DTLA real estate career, and foretells of a very bright 2017 for Downtown Los Angeles. It has been so very fortunate to work with such powerfully bright and earnestly thoughtful people. Thank you to my amazing clients of 2016: Adam, Jeff, Joan, Derick, Jamica, Jim, Julie, Marie-Elizabeth, Nicole, Sandy, Jennifer, John, Alex, Ed, Lee, Lauren, Chris, Elizabeth, Jim, Julie, Noush, Terry and Monica. See some of their lofts and condos https://www.wevideo.com/hub#view/805546194 and see what sold most recently in Downtown L.A.
Downtown buyer review:Corey was very helpful in understanding the DTLA loft inventory and comps. As a local, he knows a lot about this area. Communication was fast and clear, no issues with reply time. He was on time for meetings and there were no issues or delays in person. — JB
2016 DTLA Real Estate Market Report: In Downtown Los Angeles, fewer homes sold, and they took longer to sell in 2016, but prices increased. The 2nd half of 2016 saw 38 fewer homes sold in Downtown LA compared to the same period of 2015. Average days on the market increased from 59 in 2015 to 69 in 2016. Downtown L.A. home prices increased from $621,852 to $657,214.
New Lofts Interest List – Get a free list of new lofts and condos in Downtown Los Angeles. Fill out the online form:
Find out what the loft down the street sold for. Get a FREE list of recent condo sales in Downtown Los Angeles. Did you know that up to 45% of Downtown lofts sold in the last three years were off-market, unlisted and other pocket listings not on the MLS? To receive a detailed listing of all recent home sales and all active listings in your area, visit http://www.lacondoinfo.com/gold_findout.asp, CLICK HERE or fill out the form on this page.
*Seller and Corey must agree on price and date of possession. Realty Source Inc BRE#01889449
P.S. Your Referrals Help The Kids! $125 donation goes to help the extraordinary kids in need at Childrens Hospital Los Angeles on every home we sell this year. Help us help Childrens. Who do you know considering making a move that would benefit from the services we provide? Call me at 213-880-9910 with their contact info, or have them contact me. You can also visit http://www.ReferralsHelpKids.com. Thank you in advance!
Downtown Los Angeles is today experiencing one of the largest influxes of residents in American history. During the renaissance and revitalization of Downtown from 2000 to 2015, the Downtown population has tripled from around 25,000 to more than 75,000. And it’s no wonder why: The renewal of DTLA has created more than 500,000 jobs, one of the highest ratios of available jobs per resident in the world.
The bigger reason is quality of life, as Downtown LA now has more amazing restaurants within walking distance than residents will ever have time to experience. There’s more concert halls, theaters and art gallery venues and events than we can ever hope to take in… and more choices of fun bars, pubs and other entertainment opportunities than most can imagine. Downtown L.A. also has more amazing lofts with historic and industrial character than another city in the sunny climate Southern California.
While so many are moving into Downtown, some home owners find that now is the time to sell during a strong market with higher home values and prices so that they can lock in their gains. Find out what the loft down the street sold for. Fill out my online form.
In one of the cleanest, quietest parts of Downtown Los Angeles, with plenty of restaurants, shops and transportation nearby, the Higgins Building is a beautiful historic live/work loft condominium building.
Residents enjoy all of the original marble in the lobby and hallways, and the units have large windows and original flooring mix of concrete and historic tile. But there is a down side. Even though they have substantial savings from the Mills Act status, Higgins lofts have experienced a recent sell-off and minor glut. The reason — a substantial HOA Home Owner’s Association assessment is in the works.
Several years ago, the HOA sued the developer for construction defects and placed some catch nets to stop the crumbling building facade from falling onto pedestrians walking on the sidewalk. The homeowners did not get enough money to pay for everything.
The L.A. Loft Blog has recently learned that the unfortunate home owners will get stuck paying millions of dollars to replace the decayed decorated coating on the outside of the building. Every homeowner may soon be required to pay as much as $25,000 or more to make up for the shortfall of funds. It is not clear exactly how the homeowners will finance the big cash outlay.
As a result, home prices at Higgins have been comparatively stagnant as compared to many other Downtown buildings. A 650 sq ft interior unit that sold for $377,000 (without parking) less than 2 years ago will only sell for around $387,000 today. Not too bad — but compare that to a Molino loft with a view that sold in the Arts District for around $550,000 that will sell for more than $680,000 in today’s real estate market. While they are not qualified for Mills Act tax savings, the Molino lofts makes up for it with low HOA dues, convenient parking and a rooftop pool deck. The Molino lofts building can expect to see further increase involve after the new hip shopping center opens across the street, adding highly desirable retail to the immediate industrial neighborhood. The Higgins Building does have its benefits however in the form of Mills Act savings, and some sellers are actually paying the assessments so that the buyer might be spared a major unexpected expense.
Get a list of Mills Act lofts. Fill out the online form:
Probably the best news for real estate is the recent Foot Traffic Report, which shows that there’s been a real strong demand for housing nationwide all year long. It’s not been that up and down spike during the spring season. And probably even the better news, the October numbers; the last numbers reported, are even better than September numbers.
Normally by the end of the year, the demand for housing seasonally starts to fall off. That didn’t happen; not only is it remaining as strong as it was the month before, it’s actually increasing. That’s gigantic news; demands are strong, people are out there; they’re looking to buy. Most agree that interest rates are going to start going up, and they’re coming off the fence right now. But again, that’s the good news.
Let’s take a little look at the not such good #news for #realestate. When we go to the supply side of it, we can see that year over year, we’re way off the amount of inventory we had last year. So demand is way up; supply is down; that’s going to create a challenge. Now if we look at the month’s supply of homes for sale, we can see that what’s the number always hitting? We’re always aiming at? Six months; six months is a normal market.
Ladies and gentlemen, we haven’t had one month this year over 5.2 months. And the last two months, and three of the last four months, have been under five months inventory. That’s not good; it’s not enough. Now part of the challenge we had, and again this is a good news/bad news scenario, the good news is, the percentage of distressed properties nationwide has dropped dramatically since 2012. From 35 percent in 2012, to 9 percent this time last year, down to 6 percent.
So the number of distressed properties, foreclosures and short sales are dropping like a rock. And that’s good news. The bad news is we’re not replacing that inventory. Those are all houses for sale. We have to find other houses that are nondistressed properties to fill that void, because if we take a look at home prices and last look at the FHFA numbers by region.
We can see across the whole country; if normal appreciation is between three and three and a half percent; that’s a normal average annual appreciation, the vast majority of the country is way over those numbers. The only parts of the country that are not at at least normal appreciation are up in the Northeast; the Mid‐Atlantic and New England. Downtown Los Angeles is at 8% appreciation.
And if prices are going up, we should all feel good that, you know, the market’s getting better; the value of our home is increasing. But we have to realize if those increases happen too quickly, it will start to kill off some of the buyers. Downtown has gone up very quickly of the past few years. Many buyers now cannot qualify to buy in Downtown, or the buyers are finding that the prices per square feet are less competitive with some of the surrounding neighborhoods.
For serious Downtown buyers who are adamant about getting an urban loft or condo, the inventory is simply too low, and the number of buyers is still high as high income buyers and worldwide investors are competing to buy Downtown lofts and condos. The solution for this problem is for buyers to get access to pocket listings, off-market and unlisted properties for sale. Fill out the online form:
Those who are thinking of buying or selling a loft or condo in Downtown LA often start by trying to determine today’s selling prices and market values of properties. Sellers wonder if their property will sell for more or possibly less than the price that nearby properties sold for. How about the current asking price of properties? Are the sellers asking too much or will the properties sell for more than the seller is asking for?
When it comes to DTLA home prices, the biggest problem for both sellers and buyers is that it is relatively easy to find the asking price of properties on the internet, but usually difficult to find the sold prices. Real estate professionals actually use the prices of comparable recently sold properties to determine today’s value and potential selling price of real estate. The asking price (or list price) is very often too low or too high, although occasionally just right.
Los Angeles home prices have seen strong gains of the past several years. Downtown prices of course outperformed the rest of Los Angeles County, Orange County and across the U.S.
National figures are not as impressive recently. Sales of nationwide previously owned homes dropped recently.
The National Association of Realtors reported that pending sales fell last month.
Downtown LA provides the happiest story because local homeowners gained an average $48,711 in home value since last year. The naysayers who said a year ago that Downtown prices were “too high” have again been proven wrong. Downtown has yet again out-performed the surrounding area and the nation. Downtown Los Angeles home prices rose significantly in the 12 months over the previous year.
Los Angeles home prices have seen strong gains over the past several years. Downtown prices of course outperformed the rest of Los Angeles County, as well as Orange County and across the entire U.S.
National figures are not as impressive recently. Sales of previously owned homes dropped nationwide. The National Association of Realtors reported that pending sales also fell last month.
But Downtown Los Angeles is happier news because local homeowners gained an average $48,711 in home value since last year. The naysayers who said a year ago that Downtown prices were “too high” and that they were a bubble about to burst have again been proven wrong. Downtown has yet again out-performed the surrounding area and the entire nation, with home prices rising significantly over the 12 months of the previous year.
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Based on information from the Association of REALTORS®/Multiple Listing as of [date the AOR/MLS data was obtained] and /or other sources. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
*seller and Corey must agree on price and time of possession – details and conditions visit coreychambers.com