Tag: real estate prices

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A Nickel Now Worth 17 Cents! — What That Means for Real Estate Prices

Save every nickel! Precious metals, and even ordinary metals skyrocket in value due to inflation.

Don’t spend you nickels! They’re now worth 17 cents each. That’s right. Runaway inflation has big and growing consequences for just about everything of value. After a recent attempt by some investors to corner a segment of the metals commodities market, during the Russian war on Ukraine, the price of the metal nickel shot up so much that a coin that was once 5 cents is now worth more than triple that amount — just from the exploding value of the metal contents. Thus, banks are now losing money by supplying nickels. They’re losing 12 cents on every nickel coin that they dispense.

This teaches us a lesson about inflation and war. Russia controls about 20% of world nickel production, and it’s now threatened, along with oil and many other commodities. Home building materials are also under pressure, as is just about everything else.

Billionaire Elon Musk has joined Warren Buffet in trying to guide the masses in the right direction so that we can continue to buy Teslas. Musk recently posted tips on hedging against inflation, tweeting it’s “generally better to own physical things like a home or stock in companies you think make good products,” rather than keeping much money in cash.

Inflation is hitting women, children and minorities the hardest, and there’s no relief in sight. Virus hysteria, government over-spending and war make inflation worse. Biden plans to respond by continuing to blame covid and Putin for inflation. Because the current government has no serious plans to reduce inflation, and the Federal Reserve will likely fail to taper its ponzi scheme monetary policy, it is up to each American citizen to protect our private assets against inflation and increasing government confiscation, and to take advantage of rapidly rising prices for just about everything from food to real estate. The good news for Loft Blog readers is that condos have long been excellent hedges against inflation, and owning a loft is much easier than trying to store a half million dollars worth of nickels.

Get a free list of the best investments during times of stagflation. Fill out the online form:

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Real estate as a hedge against inflation — easier than storing millions of nickels.

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.

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Stagflation and Real Estate Prices Part 3

REAL ESTATE NEWS

Governments and countries spending more and more money while productivity decreases leads to higher consumer prices concurrent with diminished economic activity. This inflation with stagnation is called stagflation, and it certainly has an effect on real estate and most other industries. Overspending, radical Fed monetary policy, exploding social programs, pandemics and wars all contribute to the factors that cause stagflation. The U.S. dollar today is only worth about three cents as compared to its original value in 1792, when an entire typical large family of eight would likely be fed a big meal for under a buck. As proven by all fiat currencies throughout history, the U.S. Dollar will eventually be worth virtually nothing.

For real estate, stagflation has been playing out in historic high home prices, especially on the coasts, sunbelt, upscale neighborhoods and the cleaner, safer suburbs with good schools. Gritty urban centers like Downtown Los Angeles are seeing just the opposite, especially near homeless populations like Skid Row, where some condos like Little Tokyo Lofts are seeing some historically very low prices. One unit, a nice Little Tokyo Loft with a balcony was recently lowered to just $355,000 yet did not receive one offer. Other lofts, especially lofts with views, are doing quite well, and growing. Nice new condos in the safest neighborhoods, such as 388 Cordova in Pasadena, have no problem selling fast for around $1 million.

Now that the virus panic is subsiding, and many small businesses are still struggling or permanently closed, most areas of real estate are seeing some cooling, but the average home price is not dropping. Low interest rates and inflation are now the main driver of pricing economics. Unfortunately, inflation can only give a false veneer of growth. A dollar that is falling in value cannot grow anything except higher costs, and perhaps some false perceptions of prosperity. Because good money drives out bad, the fall of the dollar coincides with dramatic 8.9 million percent rise of blockchain cryptocurrencies.

Gauges of future inflation are surging, as gold and bond prices shoot up, according to Bloomberg. Reported signs of economic recovery are unfortunately only a mirage, a false picture being painted by runaway inflation. GDP is dropping, stock prices are in a volatile spasm of tizzy, to be followed by an impending cycle of hopelessness. Consumer confidence has been slipping, business confidence has been declining, while most American home prices continue to rise. These contradicting realities of inflation — more money, more depression and more volatility — paint today’s picture of stagflation’s warping, distorting, destabilizing effect on home prices and the entire economy.

Get a free list of the best investments during stagflation. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.