Real Estate News – Page 156

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:

The whole subject of Real Estate is a fallen topic

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.

Find out what the home down the street sold for. Get a free list of recently sold lofts, condos or houses in the area. Fill out the online form:

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Is real estate dead? Photo courtesy Wikimedia **Català:** Decay ruin are you dead? Mural per Velluters, València

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.

After financial struggle to build the Downtown plaza megaproject, OceanWide calls it quits

REAL ESTATE NEWS

Downtown Los Angeles has gained substantially by China citizens moving their money into L.A. real estate. That has been changing recently as China begins to go broke, enacting policies of capital controls preventing cash from leaving China for the U.S. China’s economic growth rate just hit a 30-year low as China’s exports are in free-fall. Because China cooks its books so thoroughly, the most accurate assessment of China is its foreign transactions. More accurate books are held by foreign nations that do business with China. Those books show that China’s actual growth is only 1/3 as much as the communist government claims. Even more accurate measurement of China is derived by looking at how it is paying its foreign bills. Last year, we learned that the China-based developers of Downtown’s huge OceanWide Plaza complex were late in paying builder Lendlease, which had to sue OceanWide in court. This week, the LA Loft Blog has learned that OceanWide plaza has been quietly put up for sale because OceanWide has been unable to raise the cash to complete the project. | VIDEO

Chinese conglomerate Oceanwide Holdings appears to be looking for a swift exit from some of the largest real estate markets in the U.S.

The Beijing developer is now trying to sell a portfolio of U.S. projects that includes Oceanwide Center in San Francisco and Oceanwide Plaza in Los Angeles. The report comes approximately eight months after it reportedly resumed construction on its once-stalled, $1B LA megadevelopment, which paused work amid financing issues. Australian multinational Lendlease is the general contractor for the LA project. It turned out that the resumed construction reports were not quite true. The project has been stalled for most of 2018 and 2019.

OceanWide Plaza New Construction Halts

Bloomberg had reported a while back that OceanWide Plaza construction halted as the developer attempted to get more financing: L.A.’s $1 Billion Trophy Tower Halted as China Pulls Back. Oceanwide Plaza has stuck in limbo as developer scurried to find a loan. The subcontractor pressed on with a lawsuit over unpaid work. #losangeles #realestate #market

Construction delays in Los Angeles are common and expected, but the delays are usually only days or weeks at a time, often stemming from the City of Los Angeles big bureaucracy and red tape. The L.A. Loft Blog pointed out that this delay was different. For the OceanWide Plaza and Metropolis projects, China’s slide into money woes was bound to lead to months, perhaps years of sluggish progress. #oceanwide

In an earlier L.A. Loft Blog post, we reported on the delays of the mammoth OceanWide Plaza condominium / hotel / shopping center project that appears to be more serious, and likely rooted in China’s overall economic downturn and resulting monetary problems for associated developers and builders.

Another new luxury tower is also affected: Further along in construction (with three of the four buildings already completed), the super-luxury Metropolis condo complex is also part of the same or similar lawsuit. The U.S. economy is part of the problem. Recently, the Metropolis developer has been holding the line, even reversing its planned price hikes, due to the cooling real estate market of Los Angeles. Recently, a man set several hallway wall paintings on fire in Metropolis, results moderate damage and evacuation of several floors. A suspect has been arrested, likely a homeless man who was possibly acting out of jealousy against the super luxury building. #metropolis #construction #delay #lawsuit

Los Angeles real estate news websites TheRealDeal.com and ConstructionDive.com report that Webcor sues Greenland for millions in alleged unpaid fees. In the suit, San Francisco-based Webcor says China-controlled company Greenland is in breach of contract for $9.8 million.

Major construction firm Webcor filed its claim in the form of a mechanic’s lien. If Webcor is successful, then OceanWide will not be able to complete and sell it’s units without Webcor getting paid first. Check out Vernon Martin’s article with more details about OceanWide Plaza’s troubles

It’s hard to get truthful news from the communist party of China. OceanWide’s pullout is the most accurate measurement of the actual nature of China’s true cash position. At the same time, Downtown Los Angeles has its own money issues. The median price for condos in Downtown LA has dropped by more than 4% over the last 12 months and the number active buyers dropped by 75%. While the DTLA real estate market downturn is not likely the root cause, the local market has certainly reduced the incentive for OceanWide developers to raise their risk exposure.

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Category: Real Estate News

Real Estate is Dead

China Leaves California Real Estate – OceanWide Plaza Quits

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