Downtown L.A. home prices continue to rapidly recover
REAL ESTATE NEWS — The preceding two months delivered dramatic news — a sudden leap in Downtown L.A. residential property prices. Does December corroborate the giant leap in urban L.A. home prices depicted in our October and November reports?
2020: 29 sold, Average Days on Market 88, Median sold price $550,000, $607,668 Avg
2021: 45 sold, Average Days on Market 57, Median sold price $630,000, $723,544 Avg
Last month saw 55% more Downtown homes sold, average home sold 65% faster, for $115,876 higher sold price on average, based real estate professional Multiple Listing Service for Downtown and nearby loft neighborhoods MLS areas 23, 42 and 1375. We can clearly see that December has corroborated the substantial recovery that the Loft Blog reported in October and November of 2021. | HOW MUCH IS MY HOME WORTH?
Downtown Los Angeles urban home values recover and rise as global real estate industry falters.
ASK COREY CHAMBERS
Q: Do you think the suburban areas will follow suit but by that I mean start to slow? It seems inventory is a big factor keeping the process high out there. That and I suppose the anticipated slow tapering?
A: Yes, suburban areas are already cooling. That’s why real estate website company Zillow nearly went bankrupt by trying to buy and flip real estate, losing hundreds of millions.
Loft Blog readers should know that we have witnessed a largely socialist economy for several years now, so there is no longer any way to forecast real estate markets (or most other national markets) because a handful of politicians now have too great of an effect on national markets, with the most radical Federal Reserve manipulation ever, along with massive federal government helicopter money. This government interference obscures our perception of what is really the Greater Depression of the 2020s. While today’s punch-bowl policy devastates the dollar, there are things we can do to take advantage of the situation. Inflation and stagnation are affecting the global real estate market today, and they also affect the way that we must think about investing.
Americans are beginning to hear about more and more big real estate companies going bust or in trouble. Last month, it was giant mainland China real estate companies Evergrande and Fantasia Holdings Group Inc. Today, struggling Kaisa Group in China, and Zillow iBuyer program in the U.S. are in hot water due to poor investment decisions amid cooling of global real estate markets. Communist China has been contaminating the U.S. property market for several years. Ghostly zombie real estate megaproject OceanWide Plaza, for example, decays in Downtown Los Angeles like a graveyard of dreams, reportedly up to a $2.3 billion boondoggle.
Urban investors and prospective inner city home buyers must be aware that local real estate markets vary widely from national and global markets. The Loft Blog recently reported that DTLA property prices rose solidly for the last two months over the same period last year. While the safest suburbs boomed during the virus panic, the roles have reversed this season. Downtown LA now leads the way forward while the national and global markets hit some snags. This could be alleviated somewhat by lifting of some US travel restrictions expected within days, but these world travelers are likely to put further upward pressure on prices of luxury coastal properties, further pushing an already bifurcated U.S. real estate market into richer and richer / poorer and poorer, shrinking an already dwindling middle class.
Downtown Los Angeles inventory is loose around Skid Row, yet tightening up a bit in the cleaner areas. Nation-wide inventory is expected to loosen from Zillow’s dump of thousands of homes, as other large real estate players tighten their belts. Fortune expects real estate to cool in 2022, but inflation will continue to artificially prop up most asset prices, including real estate. Ownership of valuable investments becomes even more important during hard times, giving investors tools to instantly improve their cash positions while profiting from increasing rents. The stock market also benefits from stagflation because equity investments are boosted as traditional employment becomes less desirable in a bubbly market of stagflation.
REAL ESTATE IS DUMB
Gold has traditionally been the most notable hedge against inflation, but that hedge industry has been partly moving to new technologies. Gold investors, along with blockchain cryptocurrency Bitcoin and Ethereum hodlers, benefit from asset inflation caused by dollar demise. Cryptocurrencies have the added advantage of rapidly increasing technological implementation by private industries to increase efficiencies and profits from increased payment options and powerful smart contracts. With an increase in value of more than 8.9 million percent since 2010, Bitcoin has proven among the most profitable technological store-of-wealth investments in history. Providing a cornucopia of new DeFi decentralized financial arrangements, agreements and terms between buyers, sellers and investors, Ethereum allows direct writing of these smart contracts into automatically executable lines of code on its blockchain. This has forged Ethereum into the #2 cryptocurrency, on a trajectory that could capture the #1 spot of technology and investments. As much as the Loft Blog loves real estate, we must acknowledge the breakthrough truth spoken by Real Vision founder, investor Raoul Pal, who boldly announced that all other investments are “dumb” compared to Bitcoin. Like other tech-savvy investors, Pal has added Ethereum to his focus. It’s hard to say which is more dumb moving forward: investing in real estate or paying skyrocketing rents in a new era of runaway inflation. | COMMENT
The Loft Blog made similarly bold suggestions in recent years, proven right to the tune of millions of dollars for those who sold property to buy Bitcoin. Interestingly, we’ve learned that the most profitable guidance or suggestions are usually the most ignored, because very high reward entails higher perception of risk. In reality, cryptocurrency investments have thus proven 8.9 million percent safer than the U.S. Dollar, and blockchain investments have likewise trounced real estate investments by meteoric margins. Compared to crypto investments, real estate is dumb. Bitcoin has skyrocketed over real estate by about 4.5 million percent.
Cryptocurrency Coin Creation
Q: Can you please step me thru the stages required to create a coin, and the cost involved? thank you
A: Thank you for your question about blockchain-related investment technologies, our favorite topic lately. Notable investor Raoul Pal recently called all other investments “dumb” compared to Bitcoin. Previously, it required a team of programmers, developers, coders and engineers to create your own blockchain cryptocurrency coin from scratch. They had to compile source code, install libraries, navigate Linux, configure code, build catalogs and perform regression tests. Today, it is simply a matter of ordering from a team that has done most of that technical stuff for you. Simply fill out a short form, and receive a software-based coin wallet, comprehensive mining support and hosting services, along with documentation and technical support by phone, text and email. The Entar blockchain team has created a system called YourOwnCoin to vastly simplify the creation and hosting of blockchain cryptocurrencies, so that most anyone can create, mine, send and receive their own crypto coin that has largely the same parameters as Bitcoin. The cost is $49 per month for the YourOwnCoin package, hosting and support. The Entar YourOwnCoin order form is at: https://laloft.wufoo.com/forms/rry21u207yf1pu/
Q: Are there any lofts for sale approved for FHA financing?
A: Yes, but not very many. Many people don’t know that they might be able to put zero down to 5% down on a loft for sale. You can get a free list of FHA / VA approved lofts and condos for sale. REQUEST A LIST
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