Annual Real Estate Report — Downtown Los Angeles Cools
Real Estate NEWS
The numbers for 2019 are in, and they show that Downtown Los Angeles real estate dropped down in many ways in the last 12 months. The number of real estate transactions fell by 16.9% in 2019 as compared to the previous year. The median home price fell by $20,000. The overall market is sluggish, as most homes took 32% longer to sell. How much will local area prices drop in 2020? #realestate #market #dtla #2019 #2020
HOME PRICES FALL
IT’S OFFICIAL: The year-long figures confirm the L.A. Loft Blog’s earlier warning and report of a real estate recession. These numbers include Downtown and the surrounding loft neighborhoods, including Lincoln Heights ( MLS areas 23, 42 and 1375 ). The median price dropped by 3% in 2019. | VIDEO
Based on all of the numbers, including statistics toward the end of 2019, the L.A. Loft Blog forecasts the median area home price to drop by an additional 4% in 2020.
Find out how much the home down the street sold for. Get a free list of recent home sales in your area. Fill out the online form:
China-funded development of super luxury Metropolis condo highrise with Indigo hotel
REAL ESTATE NEWS
The LA Loft Blog recently reported that Chinese companies are pulling out of Downtown Los Angeles as real estate developer Greenland decides not to complete the last building in the Metropolis condo complex. As other expensive projects are shelved amid construction non-payment lawsuits, mainland China cannot hide its economic woes. OceanWide Plaza megaproject sits uncompleted while financially strapped Mainland China developer quietly seeks a buy-out.
Bloomberg reported recently that Los Angeles condo sales have cooled as Chinese capital stays at home. The #realestate market in downtown Los Angeles is taking a hit as #chinese cash dries up. Condo sales plunged 31% in the third quarter from a year earlier. Chinese and other foreign buyers had made more than 25% of the purchases in downtown Los Angeles in recent years, but tightened restrictions on capital flowing out of China have recently hampered the market. As the trade war between the U.S. and China approaches its second anniversary, Beijing is making it tougher to shift money abroad, imposing capital controls to help stabilize its currency. That’s weighed on the real estate market in cities including #losangeles, New York City, San Francisco and Vancouver.
California Condos Cooling
Bloomberg reports confirm earlier Loft Blog articles on Downtown L.A. condo prices having fallen from a peak in early 2018. Restaurants, shopping, entertainment and transportation infrastructure has attracted nearly 50,000 new residents since 2000. Tens of thousands of new homes have been built, while thousands of new apartment and condos are still under construction. This includes thousands of new luxury high-rise units. These expensive upscale condos are suffering the most as mainland China is hit hard by communist capital controls, tariff battles and economic uncertainty. Investors and other prospective home buyers don’t like the value of today’s relatively high Downtown condo prices.
China’s Fake Economy
The South China Morning Post reported that China is proving to be mired in significant inaccurate financial reporting. China’s economic census has uncovered bunches of fake data. As China’s cash has dried, corporate has borrowing soared. Local Chinese officials of Guanghan and other areas have been found to have gone to extraordinary lengths to manipulate raw data to obscure the real financial health of the economy. They reported growth of 9% while the real growth was likely closer to 0%.
American’s and other financial connections have access to some of the true data, which gets easier to see as the financial tide goes down to reveal the naked truth of financial struggles.
CNBC reports that China’s corporate borrowing has shot up while cash flows deteriorate. China’s cash flows have deteriorated quickly, and new orders continue to fall. Shadow banking is making a resurgence as the CPC Communist Party of China attempts new crackdowns on bankers. China’s cash flows have rapidly deteriorated recently as fourth quarter 2019 late payables and deliverables skyrocketed to the worst levels ever recorded. China’s woes are likely to worsen before the get better because new orders continue to fall. Corporate borrowing has risen to unprecedented rates as business loan applications in China shot to an all-time high, with more than 30% of manufacturing, retail, services and real estate developers needing to borrow money.
China’s communist dictator always has plenty of lowly individuals to pin the blame on. Several bankers have been sentenced to death recently.
Trade War Affecting China, Reviving Trend of Shadow Banking
Borrowing rose in every sector this quarter. China saw overall export orders fall in the second half of 2019, as American tariffs on Chinese goods took effect. With the U.S. and China entering a trade truce this December, the President Trump’s Phase One China deal is expected to help reduce China’s economic freefall.
Mainland stocks tumble as China cut tariffs on over 850 products
CNBC reports that mainland Chinese stocks have been tumbling. The Shanghai Composite is down more than 10% since February 2018, and down more than 25% from its peak in May 2015. China just announced a few days ago that it will lower import tariffs on over 850 products as part of the Phase One trade deal talks. The trade war armistice may be too little too late for China. The communist-backed semiconductor fund has announced plans to reduce holdings in some tech firms, according to a Reuters report. Tech stocks, then broader stocks have just dropped.
Find out how much your home is worth. Get a free list of recently sold homes in your area. Fill out the online form:
