1100 Wilshire Blvd is in the news again today, at the top of the charts of the L.A. Loft Blog home search. The highly respected building yesterday had public notices taped to its outer walls.
The notice is about the removal of the parking requirements. The L.A. Loft Blog is not sure what it means, although we have heard that the excellent guest parking is somewhat less excellent now that Chase bank is in control of it, and that guests may not be able to park overnight.
Sitting atop 17 floors of highrise parking, 1100 Wilshire still beats nearly every other building in parking. In fact, even some of the smaller units come with 2 assigned premium covered parking spaces, such as unit #3603 currently for lease and, with its jetliner views, is an awesome bargain with utilities included as well:
Speaking of public notices, prospective loft renters can find unadvertised bargains with the L.A. Loft 3-Hour Tour buyers can find bargains by looking at distress sales, foreclosures, REO, bank owned, company owned, 3rd party owned and other distressed properties. Fill out the online form:
In a recent real estate poll, fewer buyers said that now was a good time to buy, while more sellers felt that now was the best time to sell. This marks a notable shift in the market. Is now best time to buy, sell or rent a loft, condo or apartment in Downtown Los Angeles?
The L.A. Loft Blog, the authority in Downtown real estate, was the first to report in 2011 that the buying wave was coming. Those who purchased in 2011/2012 gained an incredible amount of wealth in the form of home equity. The average Downtown homeowner who purchased at that time gained several hundred thousand dollars of equity within just a few years. This is an incredible transfer of wealth. Today is a very different story.
U.S. to Follow Japan’s Economic Model
Today, the L.A. Loft Blog is the first to announce that this is the beginning of a NORMAL market. Normal can be difficult to understand, so here is what that means: There will be no dramatic transfer of wealth any time soon. Prices will likely remain largely stable over the next several years. While would-be buyers may feel that the market is making them feel nervous, the reality is that many buyers normally feel scared in a normal real estate market because it is such a major purchase, and because the buying process is a major life event for most. For 2016/2017, buyers can expect a good return on their investment, which, for Downtown, means to expect an above-average gain. Sellers can expect normal results of their sale. Seller who wait for several years will be rewarded.
As for those would-be buyers who are waiting for a big price drop before they buy — they will likely be disappointed. And as for sellers who believe they can cash in now before the next big price drop, they will do OK, but selling now is not going to lead them to a winning euphoria. In fact, we will likely see several unexpected small run-ups in prices before we ever see a huge drop in prices again. Our economy has been following Japan’s model recently. Since the U.S. is following Japan’s lead in economics lately, Japan’s recent market could be our best glimpse in to the future of our real estate market. This model shows a coming large run-up in metropolitan home prices.
Renters are still flooding into Downtown as DTLA has surpassed a half million jobs, and could be headed to one million jobs if the economy remains on the right track for a while.
The biggest discrepancy in CNN’s article is interest rates. The U.S. seems to be following Japan’s ultra-long-term experiment on government-instituted super-low interest rates. That has resulted in a stagnant economy, but surprisingly buoyant real estate prices. When investors can’t get results from other investments, they will turn to real estate.
Here is the real #1 reason to buy for those who find that they like living in Downtown Los Angeles:
Following the L.A. Loft Blog’s NORMAL market call, there is an abnormally high rental demand in DTLA. Despite dozens of new rental developments popping up, everything is pretty much full — the coming Garey Building recently reported 94% filled to capacity while under construction — before it even showed any model apartments for rent.
Look for rents to go UP, UP and UP! As for rent prices in Downtown L.A., the sky is the limit.
Of course, all this talk about economics, the dismal science, puts even fewer people in the mood to buy, and even more in the mood to sell. Find out how much your Downtown home is worth at www.LALoftPrice.com.
REAL ESTATE NEWS
