market – Page 10 – LA Loft Blog

Market and Housing Forecast for #DTLA #RealEstate

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.

japan-real-estate-chart — 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.

In Downtown Los Angeles, the most exciting place on Earth, the housing market will remain tight. To be successful, buyers must beat out all of the many other other buyers to the best deals. Prospective buyers can get free access to bargains, unlisted homes and powerful technology at www.LALoftVIP.com.

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.

2016 is the year to buy according to CNN:
http://money.cnn.com/2015/12/04/real_estate/2016-real-estate/

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.

LOFT & CONDO LISTINGS DOWNTOWN L.A. [MAP]

Downtown and National Real Estate Market Report

Probably the best news for real estate is the recent Foot Traffic Report, which shows that there’s been a real strong demand for housing nationwide all year long. It’s not been that up and down spike during the spring season. And probably even the better news, the October numbers; the last numbers reported, are even better than September numbers.

Normally by the end of the year, the demand for housing seasonally starts to fall off. That didn’t happen; not only is it remaining as strong as it was the month before, it’s actually increasing. That’s gigantic news; demands are strong, people are out there; they’re looking to buy. Most agree that interest rates are going to start going up, and they’re coming off the fence right now. But again, that’s the good news.

Let’s take a little look at the not such good #news for #realestate. When we go to the supply side of it, we can see that year over year, we’re way off the amount of inventory we had last year. So demand is way up; supply is down; that’s going to create a challenge. Now if we look at the month’s supply of homes for sale, we can see that what’s the number always hitting? We’re always aiming at? Six months; six months is a normal market.

Ladies and gentlemen, we haven’t had one month this year over 5.2 months. And the last two months, and three of the last four months, have been under five months inventory. That’s not good; it’s not enough. Now part of the challenge we had, and again this is a good news/bad news scenario, the good news is, the percentage of distressed properties nationwide has dropped dramatically since 2012. From 35 percent in 2012, to 9 percent this time last year, down to 6 percent.

So the number of distressed properties, foreclosures and short sales are dropping like a rock. And that’s good news. The bad news is we’re not replacing that inventory. Those are all houses for sale. We have to find other houses that are nondistressed properties to fill that void, because if we take a look at home prices and last look at the FHFA numbers by region.

We can see across the whole country; if normal appreciation is between three and three and a half percent; that’s a normal average annual appreciation, the vast majority of the country is way over those numbers. The only parts of the country that are not at at least normal appreciation are up in the Northeast; the Mid‐Atlantic and New England. Downtown Los Angeles is at 8% appreciation.

And if prices are going up, we should all feel good that, you know, the market’s getting better; the value of our home is increasing. But we have to realize if those increases happen too quickly, it will start to kill off some of the buyers. Downtown has gone up very quickly of the past few years. Many buyers now cannot qualify to buy in Downtown, or the buyers are finding that the prices per square feet are less competitive with some of the surrounding neighborhoods.

For serious Downtown buyers who are adamant about getting an urban loft or condo, the inventory is simply too low, and the number of buyers is still high as high income buyers and worldwide investors are competing to buy Downtown lofts and condos. The solution for this problem is for buyers to get access to pocket listings, off-market and unlisted properties for sale. Fill out the online form:

<a href="https://laloft.wufoo.com/forms/mt3p9620deynrc/" target="_blank" rel="noopener noreferrer">Fill out my Wufoo form!</a>

Find homes in Downtown Los Angeles:

LOFT & CONDO LISTINGS DOWNTOWN L.A. [MAP]

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Corey Chambers, Realty Source Inc BRE#01889449

Tag: market

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