Category: Real Estate News

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California Property Market and Home Prices: Why We Can’t Believe Real Estate Agents

REAL ESTATE NEWS

This Just In — Just got a market prediction from a helpful real estate professional who has supplied useful information to the L.A. Loft Blog over the years. Let’s take a look at what they say, and what points they got wrong: #realestate #market #homeprice

The macroeconomic data is encouraging, as businesses report stronger results and increased optimism. The labor markets continue to heal as well, albeit at a slower pace. Buyers remain enthusiastic, and low rates, which are expected to persist over the near term, are at the root of that trend. There are, however, some signs of a recovery that is gradually subsiding to a more muted pace after an initial resurgence.

Expect More Home Sales and High Prices in 2021: The California Association of Realtors expects sales to continue to improve for the remainder of 2020, and to increase modestly again next year. Buyer demand remains robust, and that has already pushed California’s median price above $700,000. Inventory, however, is expected to remain a challenge that will keep sales growth in the single digits next year.

Fewer Mortgages Now in Forbearance: After more than 4 million households applied for forbearance here in California during the virus panic, those numbers have gradually begun to improve with about 1 million fewer households skipping payments.

More Encouraging Macro Data Last Week: Business optimism increased, inflation eased (so the Fed will be encouraged to continue to accommodate), and interest rates are back to all-time low levels of just 2.87% last week, according to Freddie Mac. Unsurprisingly, buyer demand remains robust in this low-rate environment and California’s weekly showings index is currently 182.3% ahead of the same point in 2019, and mortgage purchase applications were up 24.2% on an annual basis last week.

Weekly Market Data Slowing: After remaining unseasonably strong through September, closed transactions finally began to dip last week. We saw a 18.7% drop here in Southern California. New listings and pending sales were also trending down last week. We typically see a big decline in the fall months, so this is not unexpected.

Serious Delinquencies Rising in California: Despite the relative strength of housing and the recent improvements in forbearance numbers, the number of serious delinquencies and potential foreclosures in California remains a risk over the medium term. According to recent data from the Mortgage Bankers Association, 6.83% of California’s residential mortgages were delinquent by 30 days or more. Foreclosure starts remain minimal due to current moratoria, and many of these homeowners may get current, sell their homes, or otherwise avoid foreclosure. The numbers translate into more than 350,000 homeowners behind on payments here in California.

These numbers are fairly accurate for the suburbs at the moment, but they are not helpful for ailing Downtown Los Angeles, which has seen a significant drop in home values over the last two years. Most suburban single family homes are doing well, but Irvine, along with other areas affected by the pullback of capital from China, have dropped in price for the last two years.

Real estate agents and politicians usually paint overly rosy pictures of their own terms, accomplishments and local real estate market prospects. Zillow says that the typical home in the US is expected to appreciate about 7% in the next year, but homes in these cities are largely expected to appreciate at a lower rate, according to Business Insider. The urban real estate market continues to plummet. As the Loft Blog correctly warned at the beginning of the month, October proved to be a crashy month for the stock market and urban real estate. For DTLA, this decline shall likely continue for at least another year or two. If the public and their elected politicians continue to make bad economic decisions based on fear, panic and hysteria, the U.S. could see long-term stagnation like Europe, and possibly a lost decade, just like Japan already experienced.

The most common fraud perpetuated by real estate agents is overstatement of expected selling price. We’ve seen a recent increase in this behavior, and we expect to see further jumps in fraud and deceit as the economy encounters growing troubles.

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, BRE 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 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.

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Downtown Los Angeles – What’s Really Happening

Why DTLA is Doing Much Worse than Most Imagine #dtla #lockdown #depression

VIDEO 1 | VIDEO 2

By Corey Chambers, Los Angeles. Thanks for visiting. I’m going to share with you some valuable information about this topic.: What’s really happening with downtown Los Angeles. We are here with you live in downtown LA just to fill people in on the situation. What happens to a major metropolitan area when you shut it down, when you impose a lot of limitations and just make it generally less desirable place to live and work. So, you see windows that are still boarded up. You see some shops that used to be extremely popular, and now they are mostly empty, and they’re not going to be able to survive this way. There are places that we’re very, very busy and pay very top rent. This is spring street and fifth, near some very valuable high-end restaurants. High-end loft condominiums are right here across the street.

Lockdown, riots, recession and depression — Panic, hysteria, public unrest, political turmoil and bad decisions: Free enterprise has been decimated. Downtown Los Angeles will not prosper until it is once again clean, safe and free.

The Crocker club looks like it’s probably closed down. You cannot operate some of the most expensive retail locations and then have them like this. It doesn’t work. Even if they come here and they try to make a go of it, temporarily making a half of the money or a third or a fourth of the money, nobody, no businesses can live on that. Most businesses need a hundred percent or very close to a hundred percent of what they normally make to stay in business. When a business starts losing 20, 30, 40% of their revenue or more in this case, in this case, they’re losing 50% of their revenue and that is going to cause most or all of these businesses to go out of business in Downtown Los Angeles, because a business can not survive when they’re losing 20%, 30%, 40%, but they are losing a 50%, 60%, 70, 80% of their revenue under these conditions.

We’re going to take a look at the whole neighborhood here so that you’re going to be able to see exactly what is happening. I’m also going to show you what’s happening with the loss, this again, one of the most popular businesses and downtown Los Angeles, this is one of the most it or haircutting places. And they’re being forced to survive, miraculously on 50% of the business, 20% of the business, that’s not enough. So they’re making a go at it, trying to stay afloat, and that’s not going to work. They’re going to feel, look, most of the businesses are out of business or almost out of the business.

So here we have a very popular upscale loft condominium building right here on Spring Street. And this is how it is. Even the condos are boarded up. They got little peep holes where they can look out the window. You can’t operate an upscale condo like this either. You can’t do that with a business or a condo, so that’s going to have to change. Most likely, things are going to get worse before they get better. The business people here — the entrepreneurs, the people who work hard early in the morning until late at night to run these businesses — they are not being given what they need. Most of them are not going to make it. When they go out of business, it might take them two years, four years, 10 years to come back, and they may go. Most of them will go somewhere else to do that. Then, there’s the park on Spring Street. This is a one of the busiest streets in downtown Los Angeles on a busy day.
And there’s very few people. So people who think this is back to business, but this is not anywhere near close. We’re nowhere near close to being able to cut it. These businesses can’t stay in business. That’s why rents are going down. Commercial real estate is a disaster. Commercial real estate is just imploding. Commercial real estate rents are down. A commercial real estate companies are going to be foreclosing and going out of business, going into bankruptcy like crazy. This french restaurant on Spring Street is one of the most beautiful restaurants and downtown Los Angeles, a beautiful French restaurant. Things were going upscale, very successful. It was very busy. People loved eating here at all hours of the day and night. This is a reopened or partially reopened downtown Los Angeles, and it’s not cutting it. It’s not going to work because, not only do you have to reopen everything fully, you’ve got to add something, some magic as a miracle to make it just to get back to anywhere near where it was.

This is what’s actually happening in downtown Los Angeles — the major leader. Downtown areas are often a force, a predictor of what starts happening in other places, but it’s getting worse instead of better. I’m receiving more calls from sellers who want to sell their place at a loss. Unfortunately this is going to keep accelerating that problem as more and more sellers are going to be selling their downtown real estate at a bigger and bigger loss.

Downtown Los Angeles shall once again prosper after it is once again clean, safe and free.

Corey Chambers, Los Angeles Downtown. As I mentioned earlier, a property information packet is available on any loft condo or a house or a private preview is available upon request. If you have a home you’d like to sell it, you should know that I’ll guarantee the sale of your present home at a price acceptable to you, or I’ll buy it for cash. This guarantee will allow you to buy your next home without worrying about selling your present home and to find out how much you could sell your home for call me at (213) 880-9910. Corey Chambers in downtown Los Angeles. Your home sold guaranteed, or I’ll buy it. Thanks for reading the L.A. Loft Blog.

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FIND OUT HOW MUCH YOUR HOME IS WORTH

Get a free list of recent home sales with sold prices, along with a list of homes currently for sale. 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, BRE 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 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.