REAL ESTATE NEWS
Compared to the brisk real estate market of two years ago, real estate in Los Angeles and many other U.S. markets has fallen down and in critical condition. Fewer people are moving, as most prefer to stay put while prices are at all time highs, and many economists feel that a recession is looming. While real estate will never die permanently, the industry is already seeing a world-wide slowdown, which could turn into a panic-stricken sell-off when the next big recession hits. #realestateisdead
Most local real estate agents are going broke, with some even joining the ranks of the homeless. The number of real estate transactions in and around the lofty neighborhoods of Downtown Los Angeles and Lincoln Heights has fallen by 75% in the last year. Home prices are down more than 4%. Prospective home buyers say that they are in no hurry, content to wait for many months or years before making a home purchase. VIDEO
Even the billionaires are diving for cover. The developer of some of of the largest developments in California, OceanWide Holdings, has run into financial issues, deciding to call it quits and to unload many of its properties, including the half-finished OceanWide Plaza in Downtown Los Angeles. The flat-fee brokerage Purplebricks announced a withdrawal from the United States in July, two months after closing its operations in Australia.
Some chart watchers say that the recent political drama has been designed to keep our eyes off of the real news. The real numbers show a weak market that may soon bring a repeat of 2007. San Francisco is seeing drops in the real estate market. The San Jose area saw a decline of 22.2% from last year. Manhattan has been crashing for three years.
Some markets are up. Sales people and the real estate industry continue to put their best spin on things, but the numbers are clear. Nation-wide sales of previously owned single-family homes and attached properties both fell from October to November, according to recent data by the Greater San Diego Association of Realtors.
Single-family home sales fell 13% from 1,890 in October to 1,644 in November, while the number of attached properties sold dipped by 24.1% – from 980 in October to 744 last month. Sales of both property types continue to trend down from the housing market’s 2019 high water mark in May.
Those who are spending big bucks on renting the same place for many years should be aware that renters are usually the biggest losers of all because they stand virtually no chance of getting any of their money back. With time, home owners find positive long-term returns even when they purchase at the top of the market.
Google Trends shows that the very topic of real estate appears quite lifeless:
Real estate prices in Downtown Los Angeles and many other areas are facing substantial downward pressure. This already unstable situation has a major risk of colliding with a major recessionary down cycle sooner rather than later. We are in no way saying that real estate is completely dead or permanently dead. There are always bright spots and a bright future for golden California real estate, especially if the state gets a handle on high taxes and homeless issues. At the moment, the financial gurus agree that we face an uncertain global economic outlook. The numbers show that now may be among the most lucrative time to sell before real estate gets hit with a big global recession wallop.
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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.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.
Is real estate dead or alive? Are we going to have a recession to knock real estate down?