REAL ESTATE NEWS (Los Angeles) — Downtown L.A. (DTLA) and its surrounding areas have continued to serve as vibrant hubs for the city’s real estate market. In this blog post, we take a closer look at the dynamics of loft sales in Downtown LA and nearby loft neighborhoods for the month of June 2023 compared to the same period last year, based on MLS data for areas 23, 42, and 1375. Home prices are down and market activity is down.
Volume of Sales
Starting off with the total number of lofts sold, the June 2023 data shows a decrease in sales volume compared to June 2022. This past month, the DTLA loft market saw 34 sales, down from the 64 sales recorded in the same month last year. While such shifts can be influenced by multiple factors, this decline suggests a tightening of the market.
Sales Price (SP) and List Price (LP)
When considering the selling prices, we can observe an interesting trend. In June 2023, the lowest recorded sale price was $280,000, with the highest reaching $1,700,000. The average selling price (SP) was recorded as $688,103. In comparison, June 2022 showed a larger price range with the lowest sale price at $250,000, and the highest soaring up to $3,200,000. Interestingly, the average SP last year was significantly higher at $779,021.
On the other hand, when we look at the List Price (LP), in June 2023 the range was between $285,000 and $1,890,000, with an average LP of $715,485. This contrasts with June 2022 when the LP ranged from $229,000 to $3,375,000, with an average LP of $783,066.
Square Footage and Price Per Square Foot
Focusing on the average price per square foot, June 2023 recorded an average price of $669.30/sq ft., slightly lower than the $739.27/sq ft. of June 2022. The average square footage remained roughly the same, with 1,025 sq ft. in June 2023 compared to 1,055 sq ft. the previous year.
DOM and Average % of List Price Received on Solds Statistics
It’s also noteworthy to look at the Days on Market (DOM) and the average % of List Price received on sold properties. The majority of properties sold in June 2023 were on the market for 0-30 days (50%) and fetched 97.17% of their listing price. Meanwhile, in June 2022, a whopping 71.88% of properties sold within 0-30 days, garnering 100.45% of their listing price, indicating a hotter market in 2022 compared to 2023.
Total Sales Volume
Lastly, it’s worth mentioning the total sales volume. In June 2023, this figure was approximately $23,395,512, down from a much higher volume of $49,857,388 recorded in June 2022. This decrease correlates with the reduction in the number of lofts sold, indicating less market activity this year.
In conclusion, the Downtown Los Angeles loft market in June 2023 showed signs of slowing down compared to the same period last year. The decrease in sales, lower selling prices, and a reduced percentage of the list price received all suggest a cooling of the market. The real estate market in the area has been down for more than 6 months. Whether this shift continues or the market rebounds will undoubtedly be something to keep an eye on in the upcoming months.
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A: I don’t recommend applying for a rental property online without first seeing the property and the owner/manager/agent. Legitimate property owners usually offer a viewing first, while scammers prefer to force a payment or an application first.
There’s a small chance it could be legitimate. You might want to try requesting a viewing, and try contacting the owner’s email and asking for their contact info. Then, I can verify the contact info for you if you’d like.
It is generally not recommended to complete an application, pay or provide personal information online without first visiting the property and meeting with the landlord or property manager. Often, scammers will insist on rushing through the process, avoiding in-person meetings, or avoiding showing the property.
Online applications can be legitimate, but they should only be filled out after you’ve had a chance to tour the property and confirm the legitimacy of the listing. Direct interaction with the landlord or property manager, seeing the property first-hand, and not rushing through the rental process are crucial steps in avoiding scams.
Additionally, if a rental seems too good to be true, or the rental process seems too easy or fast, those could be red flags. As always, caution and due diligence are important when navigating the rental market.
They are also failing to provide contact information in all of the listings and web pages, another major red flag. Legit owners/managers/agents usually try to provide contact info whenever possible.
A legitimate landlord or rental agency will typically provide a way to contact them directly, whether that’s through a phone number, an email address, or even a physical office location. The total absence of contact information is indeed a red flag and could be indicative of a scam or an indication of poor service.
Without a way to directly reach out to the individual or organization, it becomes much more challenging to verify the legitimacy of the listing or to ask questions about the property or the rental process. It also makes it more difficult to arrange a viewing of the property.
This, combined with the online application before a viewing, should definitely raise suspicions. It’s essential to approach this kind of situation with caution and to consider looking at other properties where the landlord or rental agency is more transparent and communicative. For Craigslist listings with multiple red flags, click to flag the listing in the middle top of the Craigslist property page.
For the property in question, our research indicated that the home was available for lease by legit owners, but they were attempting to minimize the number of non-serious inquiries. They had the price a bit low because they like to receive plenty of applications so that they may be choosy for just the right tenant. That may or may not be a wise business decision, costly for the many applicants, who must waste $35 to $40 each for lots of applications and credit reports. It may also be costly for the landlord as far as missing many good renters who did not apply due to a lack of contact information, lack of communication and missing offer to view the property for Craigslist users.
The search for a new home can be both exciting and overwhelming, particularly in the digital age. While the internet provides an abundance of resources and opportunities to find your perfect place, it also opens the door for scammers and less scrupulous landlords looking to take advantage of eager renters. In this guide, we’ll share some essential tips on how to spot a fake property rental listing.
1. It’s Too Good to be True
One of the most common red flags is when a listing seems too good to be true. Scammers often entice potential victims with rental rates that are significantly lower than other comparable listings in the area. They may also list amenities or features that are uncharacteristically luxurious for the rental price. If the deal appears too good to pass up, it’s a signal to be cautious. Research similar properties in the area to get a feel for average rental rates and what they offer.
2. Lack of Contact Information
Legitimate landlords, property managers, or rental agencies will typically provide ample contact information, like a phone number, email address, or physical office location. However, scammers tend to avoid sharing this information to make it more difficult for potential renters to reach out or verify their legitimacy. If a listing does not include contact information, or if the contact information provided doesn’t match what you find through independent research, consider it a significant red flag.
3. Application Before Viewing
While online applications have become increasingly common in the rental process, legitimate landlords or rental agencies will typically arrange an in-person viewing of the property before asking you to fill out an application. If a listing insists that you complete an online application – which often includes sensitive personal information – before you’ve even seen the property, be wary. This can be a tactic used by scammers to collect your personal information.
4. Pressure to Act Quickly
Scammers frequently create a sense of urgency to push potential renters into making hasty decisions. If the landlord or property manager is pressuring you to sign a lease, pay a deposit, or hand over personal information immediately, without allowing you time to thoroughly consider your decision, it could be a scam. A legitimate landlord understands the importance of this decision and will give you time to think it through.
5. Upfront Payments
Beware of listings that require an upfront payment before you’ve signed a lease or even seen the property. Scammers often ask potential renters to wire money, pay with a gift card, or use other untraceable methods to secure the property. No legitimate landlord or rental agency would require payment before a contract is signed and they have demonstrated their legitimacy.
6. No In-Person Meeting
In today’s digital world, it might not be uncommon for some conversations with landlords or property managers to take place over email or phone. However, they should always be willing and able to meet in person, especially before signing a lease agreement. If the person you’re communicating with makes consistent excuses to avoid meeting or showing the property, it’s a strong indication of a scam.
7. Poor Grammar and Spelling
While a few typos shouldn’t necessarily discredit a listing, noticeable patterns of poor grammar, spelling errors, or unprofessional language can be an indicator of a scam. Professional property managers or landlords will typically ensure their listings are well-written and error-free to attract serious inquiries.
8. Trust Your Gut
Finally, don’t underestimate the power of intuition. If something doesn’t feel right about a listing, the communication with the landlord, or the rental process – trust your gut. There are plenty of legitimate rentals out there, so don’t feel compelled to settle for a situation that makes you uncomfortable.
Remember, finding a new home should be an exciting new chapter, not a cause for
stress or financial loss. By being informed and vigilant, you can protect yourself against rental scams. When in doubt, take a step back and evaluate the situation. Ask questions, do your research, and don’t rush into any agreements without fully understanding the terms.
9. Conduct a Reverse Image Search
In an attempt to make the listing seem legitimate, scammers might use images taken from other legitimate listings. If the images seem unusually professional, or the property seems too perfect, conduct a reverse image search on Google to see if the images appear elsewhere online. This could help you determine if the listing is a potential scam.
10. Verify Ownership
If you have the opportunity, it can be beneficial to verify the ownership of the property. This could be done through local property tax records or registries, many of which are available online. If the name of the person or company you’ve been communicating with doesn’t match the owner on record, proceed with caution.
11. Use Trusted Platforms
Where you find the listing can also provide clues about its legitimacy. While scammers can target any platform, some websites have strict processes for verifying listings and landlords. If possible, use trusted platforms and always read reviews if they are available.
12. Professional Help
Finally, consider getting professional help if you’re uncertain. Real estate agents, legal consultants, or experienced friends can provide valuable advice and potentially spot red flags that you may have overlooked.
We did some advanced research using special premium person identification, property records search and verification report services (included with the Top Level Tour). It turned out that this L.A. property was legit, but had already received several acceptable applications. So, it ultimately did not offer very good odds for Emily anyway.
Stay vigilant and informed as you embark on your property rental journey. By keeping these tips in mind, you can ensure that you’re well-prepared to spot and avoid potential rental scams. Happy house hunting!
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