REAL ESTATE NEWS (Los Angeles, CA) — Are rent prices going up or down? Staying the same? Let’s take a look. According to the MLS statistics for Downtown L.A. and nearby loft neighborhoods 23, 42 and 1375, rents are rising substantially. Urban L.A. housing is getting more pricey:
There were 61 lofts leased last November 2021. An average of 42 Days On Market (29 days Median). Median rent price $2,700. Average $3,073.
This November of 2022, there were only 55 units leased. They were on the market for an average of 50 days (43 days median). Median rent price $2,975 and average rent $3,510.
While it’s taking a bit longer to find renters, the market is stagnating while lease prices are inflating, with tight rental inventory and significantly higher rent prices than the same period last year. Stagflation is clearly still the name of the game, with a declining economy and higher prices aiming for the moon, with no end in sight.
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When it comes to Downtown L.A. real estate, there is no better place to find out what is going on. This post will reveal everything from cracks to stone cold facts to crazy possibilities. #realestate #market #news #dtla
Southern California Real Estate Market Cracks Affect Downtown Los Angeles
Readers of the L.A. Loft Blog are the most informed buyers, sellers, landlords and tenants. In 2011, we notified the world that the coming wave of foreclosures was probably not going to happen. We informed that the real wave to catch was the beginning of the economic growth cycle, and crazy low real estate prices. We foretold the fact that buying a Downtown Los Angeles loft or condo at that time would virtually like getting a free home. Fortunately, for our buyer clients, it turned out to be true as the average Downtown loft more than doubled from the mid $200,000s to over $600,000 today. The cost of the home has been quickly surpassed by the tremendous equity gained. The average home owner now has a net worth $400,000 higher than that of the average renter.
THE FUTURE OF DOWNTOWN LOS ANGELES REAL ESTATE
Six days ago, the Loft Blog reminded everyone that it is time to spot the changes now occuring, how to spot the canary in the coal mine in order to see what’s coming, and how to take advantage of the dynamics of today’s real estate market.
This week, the Orange County Register reinforced our insight, reporting that Southern California home seekers are placing 9 percent fewer homes into escrow this spring, a dip that caused one analyst to write his “Cracks Appearing” report.
Steve Thomas of ReportsOnHousing wrote: “Noticeable cracks have appeared that illustrate a cooling market”. He goes on to note that it is not suddenly a buyer’s market as there is a lack of available homes below $1 million. A recent count of 13,669 new SoCal escrows is down 1,341 sales contracts in 12 months or 9 percent. That’s also off 5 percent vs. the previous five years.
Supply of available homes is down, while at the same time, it is taking longer for homes to sell.
The bottom line is that the real estate market in general is slowing, with fewer transactions, as buyers and sellers are both more content to stay put where they are. The biggest losers in today’s real estate market are flippers, real estate agents.
Renters are also among the losers, as they will likely feel more and more like frogs in very warm water turning to boiling as the heat rises too slowly to notice unit it’s too late. Because prices are unlikely to fall substantially, but rather likely to meander up, most renters will find themselves increasingly priced out of the market.
SELL REAL ESTATE TO BUY BITCOIN?
Here’s the craziest of possibilities that is actually very likely to come true: Those who sell their home at today’s plateau, use the proceeds to buy cryptocurrency such bitcoin near its bottom in roughly a year, will be likely be able to sell and retire on tens of millions of dollars of gains just a few years later.
Please let us know who is crazy enough and smart enough to do something like this. We’d love to hear more stories from the really amazing readers of the L.A. Loft Blog. And, as always, we are here to help those who have questions.
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