Category: Real Estate News

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Chinese Buy Fewer Los Angeles Condos, Hurting Los Angeles Real Estate

Market Update – Home sales are down significantly so far this year compared with 2018, even with lower mortgage rates. #chinese #realestate #dtla

Metropolis Los Angeles condominium complex and money from China
Metropolis Los Angeles condominium complex and money from China

REAL ESTATE NEWS

USA Today reported this week that Chinese home buyers and investors have pulled back sharply from the U.S. real estate market.  Foreign investors purchased $77.9 billion in residential property in the 12 months ending in March, down 36% from the previous 12-month period, the National Association of Realtors said in a recent report.

All told, existing U.S. home sales are down about 3% so far this year from the same period in 2018, NAR figures show.

Even before the start of the Trump Trade War, Beijing had already placed tight limits on how much capital can leave the country after its devaluation of the yuan a few years ago.  The government toughened capital controls more last year as the Chinese economy weakened. Trump’s tariff war is expected to exacerbate this trend.

California is the epicenter of Chinese residential investment in the U.S., with 34% of purchases in the state.

The largest super luxury condo buildings Metropolis and OceanWide Plaza are developed by Chinese-owned companies.  OceanWide construction has been stalled due to a pause in construction capital. A number of units hav been purchased at Metropolis, predominantly by a large percentage of buyers from China, many of them were cash buyers. The China source of buyers has partially dried up.  This can be good news for local Californians who are looking to buy a home –- a larger supply of condos, fewer competitors and a lower price than a year ago.

With China’s limits on cash that can leave the country, Chinese buyers are now searching for lower-priced homes and relying on mortgages more often. The share of their home purchases with mortgages has risen to 46% in the 12 months ending in March, from 37% the prior year, according to NAR. And more of the buyers are middle-class.

New Homes For Sale

Get a free list of luxury condos under construction in Downtown Los Angeles. Fill out the online form:

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

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OceanWide Plaza Los Angeles condominium complex and money from China
OceanWide Plaza Los Angeles condominium complex and money from China

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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Introducing Entar Real Estate

Feeling Pain of Cooling Market, Good Real Estate Agents Create New Company  #Entar

The Problem: Slowing property market combines with new services that eliminate real estate agents. Good for home buyers, bad for agents.
The Problem: Slowing property market combines with new services that eliminate buyer’s agents. Good for home buyers, bad for agents.

Downtown Los Angeles  —  Readers of the L.A. Loft Blog are privy to the behind-the-scenes creation of a new kind of real estate company coming to the area.  As the Los Angeles real estate market cools, homeowners are snug and holding tight to their current residences. While few would ever shed tears for struggling real estate agents, the reality is that there are only about 1/3 as many transactions in Downtown L.A. compared to a few years ago. This results in nearly all real estate agents seeing a serious reduction in their overall finances, with many finding that they need to change their careers.

Real estate professionals also face a longer term issue of increasing technology and less need to use a real estate agent to purchase a property, thanks to iBuyer services that provide innovative ways for home buyers to see properties without the help of a buyer’s agent. Also, services that offer to buy the seller’s home quickly for cash, without the need to take months to market it on the agents’ MLS and elsewhere.

From 1960 to around 1990, the average commission was about 7%. Today, it’s falling toward 5%. Buyer’s agent commissions are about 2.5%, and appear to be headed to 2% or less, while listing agents often get a bit larger percentage of the commission pie at around 3%.

More and more listing agents are keeping all of the commission, offering to share nothing with the buyer’s agent.

This is all ok news for home sellers, but deadly for the careers of traditional real estate agents.   |   VIDEO

Entar Real Estate

The solution for the industry calls for real estate agents to provide more value using the latest technologies along with improved customer service to guarantee home sellers that their home will be sold at a price acceptable to them or the agent will buy it.  This proposal has proven to be the most cost-effective for Downtown Los Angeles condo sellers, getting the urban home sellers more money ($16,760 more on average), a faster sale (44% faster), and a successful sale. The listing agent has a proven system that accomplishes these objectives, reason being that the broker has more than 4,365 buyers in their database looking for a home.

EntarAbout 100 of the best local real estate agents are coming together, combining their best resources to create a new company, called Entar Real Estate. Downtown LA home sellers can take advantage of the newer, more powerful real estate company that guarantees home sellers better results while also guaranteeing to help the real estate agent earn $100,000 more than they made last year.

The new Entar Real Estate official launch date of October 2020 is a while off, but the good news is that the pre-launch is October 2019, and home buyers, sellers, landlords and agents can already get access to many of Entar’s features today from the Corey Chambers Team.  Get free help by getting on the Entar radar — the new Entar Real Estate company interest list. Click the selection that best describes you or your goal:

BUYER   |   SELLER   |   RENTER   |   LANDLORD   |   AGENT

Moving to a bigger space?  Get a free list of lofts over 1,500 Sq Ft.  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

Some good real estate agents are going broke.
Good real estate agents going broke in the cooling L.A. real estate market.

Copyright © This free information provided courtesy L.A. Loft Blog and Entar.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.