Stagflation Causes Higher Prices and Fewer Transactions

Supply and demand are out of sync, and builders can’t swing hammers fast enough to keep up.

Stagflation in the context of the housing market describes a combination of high inflation of the price for properties, and economic stagnation as reflected by a slow growth rate of properties for sale. The high demand for properties at any price is keeping inventory moving quickly — too quickly to allow new home builders and existing home sellers to fill the demand.

Though homebuilders continue to respond to the elevated demand, the number of homes being completed continues stagnate due to persistent supply chain problems, as reported by Bloomberg. “For want of a nail, the battle was lost,” as the saying goes, and so goes our economy. This stagflation is a headache for buyers and builders alike, but it’s a boon for sellers of existing homes. Demand is not going away; it’s a painful patch for our economy. Stagflation is a period when slow economic growth and joblessness coincide with rising inflation. As oil and gas hit record prices, Google searches for the term “stagflation” have spiked.#stagflation #newhomes

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The Fed tries to use interest rates to steer the economy time will tell if it’s working.

Copyright © This free information is provided courtesy of L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. EAC22060702KT 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 are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.

Los Angeles Real Estate Market – OceanWide Plaza Limbo, Leaving LA., California Exodus

Scary Real Estate Market in Downton LA as Home Prices Drop  #dtla

California Real Estate Market - Middle-class residents leaving the state
California Real Estate Market #news  – Middle-class residents leaving the state

Local news has reported a trend that is hard to ignore:  more people are now leaving California than are moving in.  Last year OC 20,104 leave than move in. Thats the 10th worse net outmigration among big counties in the U.S.  Los Angeles county saw 98,608 people leave.  For wealthy Californians, the results are mixed as the rich move in and out of the state in similar numbers.

OceanWide Plaza New Construction Halts

Bloomberg reports that OceanWide Plaza construction is halted as the developer attempts to get more financing: L.A.’s $1 Billion Trophy Tower Halted as China Pulls Back.  Oceanwide Plaza is stuck in limbo as developer seeks loan, as the subcontractor wants to press on with a lawsuit over unpaid work.  #losangeles #realestate #market   |   VIDEO

The pace of new home sales in Downtown has slowed, giving prospective new home buyers a break.   |   NEW HOMES INTEREST LIST

Leaving California:  The Exodus from the Golden State – video from a resident who moved out of the state many years ago:   |   VIDEO

The number of foreclosures and auctions has begun to tick up recently. Get a free list of distressed homes for sale in Los Angeles.  Fill out the online form:

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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.