HOME PRICES DROP (Downtown Los Angeles, CA) — February urban L.A. home values are down significantly from a year ago, with fewer properties sold, taking longer to sell, selling at lower prices, and less total home sales. The median price dropped by a significant 14.2%. Each property took 18% longer to sell, according to the MLS agents multiple listing service for Downtown and nearby loft neighborhood areas 23, 42 and 1375, comparing last month to the same period of the previous year. Compare February: #marketreport
2020: 37 properties sold; 73 average days on market; $620,000 median price; $26 million total volume
2021: 35 properties sold; 89 average days on market; $532,000 median price; $22 million total volume
READER QUESTIONS
Q: DTLA Building Report, ShyBury Grand – Investment Report, Lawsuit. Request: How many of the units are rented vs being owned by private residences. — Teri A: Thank you for your request. SB Grand has a high renter ratio, likely around 60% or more renters. The HOA has approved a large renovation project for the building. No record found regarding current litigation, but there may be undisclosed litigation. The building exterior will be repainted, lobby and hallways completely redone, rooftop painted and new furniture installed. Building is currently undergoing cosmetic facelift with no special assessment or increase in HOA dues expected. Call for more details 213-880-9910.
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The Wall Street Journal recently reported that we’re at the end of a long walk off a short pier of high budget deficits, into an ocean of inflation — skyrocketing prices for food, gas and housing. Historically, this leads to high consumer prices that crush the economy. The cause? We’re suffering from novel economic oppression — government-induced depression and stagnation. Until free enterprise is restored, we shall continue to see a spastic dichotomy of extreme home prices in suburban developments, along with rapidly falling home prices in sinking major metropolitan centers.
Economic depression, which forces prices down, serves as the primary force masking serious inflation. A better word for this masked inflation is stagflation. In 2020, we entered a worse depression than the Great Depression of 1929. In terms of stock market crashes, unemployment spike and drop in GDP gross domestic product, we’ve dwarfed every adverse economic event in U.S. history. The only reason that the stock market is not in total shambles is because stock prices rise temporarily from direct government overspending, direct fed injections, deficit spending and inflation. The stock market is temporarily disconnected from fundamentals. In fact, Bloomberg calls the situation “the biggest financial bubble in history.” The crashy volatility of 2020 reveals the tremendous strains. This includes crushing downward forces that are being exerted on the markets by the government-caused demolition of Main Street and destruction of the middle class, compounded by the most deep, pervasive and persistent mass hysteria in modern history.
Free enterprise is the goose that lays the golden eggs. Our goose is being cooked. The government has diverted more resources away from small and medium sized businesses than ever before in history. In doing so, they have emptied the pockets of more middle class Americans than ever before. The unintended consequences have already begun to play out in a series of cascading crises, atrocities and crimes against humanity.
Panic causes more harm than good. In extended panic mode, people cause far more danger and damage than they avoid. The economic damage of lockdown, depression and price inflation rapidly trickles down to the struggling and poor. The United Nations has repeatedly warned that the most vulnerable and tragic victims of hysteria and lockdown are the hundreds of millions of children worldwide who are pushed closer toward starvation.
The U.S. and western world is in a quagmire and conundrum of choosing between capitulating to the worse economic depression in history or the illusory boom of unlimited money printing — certain runaway price inflation à la the Weimar Republic. History begs to remind us of the repercussions: When money becomes worthless, holocaust easily follows.
The basic components of home builders, the 2×4, more than tripled in price in 2020. According to Barron’s, the home price surge says inflation is real. The FRED M1 Money Stock chart confirms it: Inflation Monster Has Been Released. Hyperinflation is here. Bond holders beware. The keys to surviving inflation, stagnation and their resulting atrocities? The tried-and-true survival basket filled with cash, low personal debt, assets such as real estate, precious metals, stocks, along with the 11-year proven vaccine against the diseased dollar: cryptocurrencies.
For now, the U.S. chooses the wrong route — banana republic style edicts, censorship, propaganda and cover-up. Deceptive tactics cannot immunize us from economic reality. Only truth, light, capitulation and work ethic can overcome the most imposing of obstacles.
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