Downtown L.A. Homes Sell For More Money, Faster Than One Year Ago
REAL ESTATE NEWS — Downtown Los Angeles continues to beat most real estate markets in both growth and stability. Compare recent prices, along with days on market, and we can see that prices continue to rise at a desirable pace, while homes sell at a brisk pace. Check out the market report:
In the most recent market (the last 6 months), Downtown L.A. homes sold at a median price of $619,500 with 42 days on market. #dtla #realestatenews
For the same 6 month period a year ago, the median price for Downtown LA (MLS areas 23,42) was $589,250. with 55 days on market.
This shows a value growth of $30,250 in 12 months with properties selling 13 days faster.
DTLA has also proven to be superior in down markets, slower to decline in price and faster to recover in price. While Downtown Los Angeles definitely has its ups and downs, it has proven to be safer than most neighborhoods as a financial investment.
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The average recently sold Downtown L.A. condominium price is $664,976.
REAL ESTATE NEWS AND MARKET REPORT: At the end of 2015, there were many DTLA lofts listed in the $300,000s. In 2017, there will be almost none. Next year, the starter home lofts will begin in the $400,000s, except for a few tiny studio-size condos. Today, Downtown has many opportunities for those who are looking for a bargain price. Some of those bargains include the distressed lofts at the Higgins Building, the awesome historic Mills Act lofts in the clean, pretty area between the Historic Core and Civic Center neighborhoods. Active, motivated buyers are taking advantage and getting a steal this season while some potential buyers are either scared from the election or dormant for the winter holiday season. Meanwhile, massive expansion of Downtown infrastructure and huge influx of residents continues to place strong upward price pressure. Investment gurus Jim Cramer and others have stated their analysis that prices and interest rates are likely to rise in 2017 and the coming years. The Wall Street Journal has also just weighed in with its forecast of rising prices.
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. — Warren Buffett
The greedy are still raking in the dough in DTLA. Prospective Downtowners and investors can today take advantage of several issues that are temporarily depressing prices. There have recently and currently been a cluster of minor economic panics in Downtown LA. Some sellers have reduced their asking prices of lofts in the Higgins Building due to a new assessment. The prices were reduced some time ago, and some home sellers are giving money to buyers, so buyers are today getting Higgins lofts for up to $50,000 less than they would otherwise cost. The same holds true for units at Evo, Luma and Elleven buildings, as some buyers and sellers are afraid of the HOA lawsuit against the developer, combined with huge new condos being built nearby. These also allow buyers to pick up one of these soft lofts for easily $50,000 below what the prices will be once the dust settles.
Get access to all of the bargain lofts and condos for sale. For a free list of foreclosures, bank owned and other distressed Downtown properties, fill out the online form:
Market Report: Los Angeles Home Prices Have Room to Grow
Real Estate publication Keeping Current Matters, Zillow-sponsored Pulsenomics real estate industry panel and NAR the National Association of Realtors have concurred with each other to dispute some industry pundits who claim that residential home values have risen too quickly and that current levels are on the verge of another housing bubble.
Panelists surveyed by Zillow said they expected home values to end 2016 up 4.5 percent year-over-year, on average, and for the median U.S. home value to exceed its pre-recession peak by November 2017. A majority of panelists with an opinion said markets in the middle of the country were likely to regain popularity compared to coastal markets in coming years as cost-conscious employers start creating more jobs in Middle America.
A marked shift in fortunes between coastal America and Middle America since the housing recovery began – rapid growth in the former, stagnation in the latter – is likely to eventually reverse as cost-conscious companies look for cheaper places to grow, according to a panel of more than 100 experts.
The Q3 Zillow Home Price Expectations Survey, sponsored by Zillow and administered by Pulsenomics LLC, asked a panel of 113 economic and real estate experts nationwide to offer their expectations for home value growth through 2020. The survey also asked the experts to share their views and expectations on changing dynamics in the middle of the country versus the coasts and in urban versus suburban communities.
The L.A. Loft Blog would change the word “Definitely” to the word “Probably” to give a more accurate depiction of statistical likelihood. Market cycles are never definite; just ask former Fed Chairs Alan Greenspan and Ben Bernanke. The L.A. Loft Blog agrees that there will likely be no major downturn in home prices over the next several years because we have not experienced extended record high prices recently like we had preceding the great depression and great recession. In fact, we have more of a Japanese and European style of prolonged artificially low interest rates. That is more likely to cause overall economic stagnation, which does not require a dramatic drop in real estate prices. Additionally, Downtown Los Angeles outperformed the rest of the country for many years because of DTLA’s unique, dramatic renewal and transformation from blight to luxury. In the current market, it’s all about finding the best deal.
The good news is that it is easy and free to get access to special deals such as pocket listings and other unlisted bargains for sale. Get Downtown LA Pocket Listings Information in your email. Fill out the online form:
Downtown Los Angeles home prices have stabilized in a normal upward trend for the last couple of years.
The average recent sold home price in DTLA is $724,049 according to MLS statistics. The Arts District stands out with an average recently sold price above $945,000. The average Downtown loft owner has now gained about $300,000 of equity in the last 4 years. Owning a Downtown L.A. home has been recently more profitable than the average full time job in the U.S.