Category: Real Estate News

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California Exodus – Middle Class Moves Out of CA as Homeless Move into Los Angeles

Free camping, lack of law enforcement attract derelict motorhomes and refuse to LA streets

REAL ESTATE NEWS

Californians are leaving. Our golden state once attracted millions from other U.S. states to come here. Now, the middle class and lower middle class move away from California to other states at a much faster pace than residents from other states are moving to CA. #california #exodus

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Nationally, consumer prices are barely moving, with inflation clocking in at just 1.8% for May. But those who live in a major urban area of California have noticed a much bigger hit. In Los Angeles and Orange counties, consumer prices rose 3.1%. Because food, utilities, housing and gasoline are not included in the statistics, the real inflation figure is much higher. | Blog Video | Parody Video

While most local politicians feel snug and smug with an extremist majority. Moderates on the other hand, are increasingly concerned about misallocation of public funds and lack of proper law enforcement, allowing tent cities another blight conditions that erode livability and value for the middle class. Independent contractors, property owners and business owners are particularly concerned, loudly voicing concerns about rent control, minimum wage and other new laws that restrict and constrict employment in the state. They worry about how ultra-high taxes could hasten capital flight from the state and further erode the tax base as the middle and lower middle class flee to lower cost of living in Arizona, Nevada, Texas and Florida. #homeless #dtla

There is no arguing that the state that once attracting vast numbers of Americans has lost some of its gold rush luster and magnetism. While several other states are worse, losing a larger percentage of interstate movers than California, we are no longer in the top 12 inbound U.S. states, according to the American Moving and Storage Association. Here’s the list of states where Americans are moving to (with percentage moving in instead of moving out):

  • Oregon (64 percent)
  • Idaho (63 percent)
  • North Carolina (61 percent)
  • Alaska (60 percent)
  • North Dakota (59 percent)
  • Florida (58.4 percent)
  • Tennessee (58.1 percent)
  • Maine (58 percent)
  • Alabama (57.1 percent)
  • Texas (57 percent)
  • Rhode Island (56 percent)
  • Washington (55 percent)

According to Reason, statewide rent controls, will further depress housing availability. Things will get even worse after lawmakers make good on their promise to provide single-payer healthcare.

California is soon approaching a drop in the housing market, a drop in the stock market and a massive drop in state revenue. The fleeing middle class will no longer be able to support the wealthy and the poor. The only way to prevent dramatic increases in individual tax burdens, bureaucracy and exploding blight of sh!thole cities is to reign in the extremism of California’s government. We will start by ending the dangerous ban on basic police protection. Along with restoring necessary law enforcement, we will stop the out-of-control spending of countless billions on homeless benefits. These two trends must change together in order to stop attracting more and more homelessness and crime to Los Angeles streets. We will know when Los Angeles, California is at its best, happiest, most successful and most attractive state: Wealthy, poor and middle class must follow the same laws. Women and children will be able to walk and shop in comfort and safety.

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Amazing Alta Lofts condominiums obscured by motor-homeless and encroaching tent cities.

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.

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Coronavirus Infects Los Angeles Housing Market – How are Public Health and Real Estate Connected?

Real Estate News

Los Angeles County Home sales and prices tumbled in January as the market reacts to the economic uncertainties of the coronavirus.

Home sales and prices dropped last month in Los Angeles County, and authorities think the worldwide onset of the novel coronavirus may have rattled the market, according to Patch.com. #coronavirus #losangeles

The county’s median home sales price dipped nearly 4 percent from December, the California Association of Realtors reported Wednesday. Statewide, the picture was even worse. California’s median single family home price dropped 6.5%. in a month. #realestate

CAR Chief Economist Leslie Appleton-Young said that the real estate market was rattled at the beginning of the year, like other markets, by the worldwide onset of the novel coronavirus originating in China.

“With interest rates on a declining trend again due to concerns about the impact of the coronavirus, motivated buyers will have an opportunity to stretch their purchasing power in the housing market,” she said. “The economic outlook, however, is less clear than a month ago, before the outbreak of the disease, and we should expect market uncertainties to continue to linger on for the short term.”

In the longer term, the biggest impact to the U.S. may come from the disruption to the world economy as a whole, and global supply chains in particular. South Korean automaker Hyundai has suspended production due to a shortage of parts, while Saudi Arabia has pushed for oil production cuts in light of reduced demand from China.

The California real estate market has been increasingly connected to events in China, as recently reported by the L.A. Loft Blog in articles about financing of OceanWide Plaza and Metropolis new condo projects.

The Real Deal reports on the topic: “The size of China’s economy makes it inevitable that a short-term slowdown will drag on global economic growth, with Asian countries and major trading partners likely to be most affected,” CBRE Greater China analysts stated in a report this week, noting that while improved transport infrastructure in China could contribute to the spread of the virus, advances in surveillance and big data should help efforts to control the outbreak. | BLOG VIDEO

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But if the virus cannot be contained, then all bets are off. China, California and the entire U.S. will suffer.

“A coronavirus pandemic would be even more of a ‘black swan’ than the global financial crisis and Great Recession of 2008-2009,” Moody’s analysts warned in a research report last week, noting that the industrial metals price index has fallen by 7.1 percent since the risks of coronavirus first became apparent.

“It won’t just affect our market — the implications are huge, and we need to brace for the impact,” said Daniel Chang, head of Asia for the Field team at Sotheby’s. Chang recalled how business slowed to a crawl during the SARS outbreak two decades ago, when he worked as a private banker for HSBC.

Panic could end up being the more serious killer. In fact, some statistic infer that Californians are 9,000 times more likely to die of the regular flu than to perish from the recent covid-19 novel coronavirus outbreak.

While the coronavirus may have a bit of a scary effect on LA real estate, the effect is more of a minor catalyst to falling prices. As the LA Loft Blog has reported, the weakness in China, along with local economic pressures toward falling home prices in California had already begun well before the recent outbreak.

Related articles:

https://magazine.realtor/daily-news/2020/02/06/housing-market-is-feeling-effects-of-coronavirus-outbreak

https://therealdeal.com/2020/02/05/inside-the-coronavirus-epidemics-impact-on-us-real-estate/

The smartest people in Los Angeles always have the best questions. Here’s what L.A. Loft Blog readers are thinking and asking:

Q: Where can I find Loft in LA for Short Term? A: There aren’t very many lofts available for short term lease, but there are a few. DETAILS

Q: What is the status of Oceanwide plaza los angeles? A: OceanWide Plaza construction is about 50% complete, but it has been on hold for many months due to a lack of funding from mainland China developers. MORE

Q: Where can I find Mills Act properties in dtla? A: Historic lofts and condos with property tax benefits can be found at www.MillsActLA.com

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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 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.