Tag: Stagflation and Real Estate Prices

REAL ESTATE NEWS

LOS ANGELES, CA — We are witnessing the Greater Depression of the 2020s, but this time, it’s different. We can’t see it. It’s cloaked in a heavy veil of virus hysteria and historically radical fed policy, otherwise known as massive money printing. The stock market has already crashed, but, that too is disguised by the Fed’s frantic focus on punchbowl policies.

Basic awareness of stagflation has hit an all-time high. While the 2008 financial crisis generated the most curiosity about possibilities of inflation and stagnation, today’s economy is a demonstration of the real-world effects of actual stagflation.

The beginning of runaway inflation appears as disrupted markets, supply chain delays, and product shortages. Industrial output is down. For real estate, home prices shoot up above the norm. For Downtown Los Angeles in particular, the three year funk has ended. Downtown L.A. home prices shot up dramatically in the last two months after falling for an extended time. The jump has primarily affected the properties in the upper echelon of price, quality and neighborhood safety. Lofts near to Skid Row, such as Little Tokyo lofts, are just a bit behind in enjoying a new recovery, an artificial recovery lifted by inflation, yet stunted by stagnation.

THE OPPORTUNITIES

The good news is that most assets, including real estate, are safe havens against inflation because a weak dollar drives up home prices. Other assets gain as well: gold, commodities, stocks; farm land, art, collectibles etc. It has proven even more true for the reigning royalty of ROI, blockchain cryptocurrency technologies. Bitcoin and ethereum have produced far more gains than any other asset, as they create new efficiencies, gain trust and benefit richly from dollar collapse.

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. 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.