Coronavirus Real Estate Market 2020: Correcting the Chaos

Commercial real estate crashes and burns in Los Angeles and worldwide.

PROPERTY MARKET NEWS (LOS ANGELES, CA) — Downtown Los Angeles saw a drop of $35,000 in value for the average condo in March as compared to same month last year. Will things get worse for sellers before they get better? Yes, because things are bad for buyers — namely fear, job loss and reduced incomes. #coronavirus #realestate #market #2020

Inman says that a ‘Surge’ in real estate activity may be coming after the pandemic ends. Well, that headline takes the cake in obvious. Real Estate has gone beyond “dead” into whatever is worse than dead — perhaps real estate hell. Unfortunately, almost the entire economy is near death as we begin to sort out the mess and attempt to recover from the most extreme form of world panic. A surge in real estate is obviously coming eventually because it has been all but illegal to do any real estate in Los Angeles recently. When you’re at zero, any activity is a surge. | Blog Video

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The fact is that real estate deals are crumbling in Los Angeles and all over the world, and the surge will be initially wiped out as it is occurring while the economy gets worse in many ways. The economy cannot turn off and on like a light switch. It takes a great deal of time to re-hire, re-activate restore and re-tune the economy. There is no central economy computer; there are 382 million individuals in the U.S. playing different rolls, many of whom just lost their jobs. Most homeowners, companies and investors plan on spending less money this year and next. The main switch that will be thrown is a lightbulb letting us know that the worst depression in history has just begun.

As “America Opens Again“, it is opening to a vastly reduced market with vastly reduced opportunities in most regards, because it is currently a shrinking market. Huge vehicles simply cannot stop and turn on a dime — and the U.S. economy is the biggest of the big. That being said, the readers of the LA Loft Blog are interested in knowing and thinking about the new opportunities that do exist, as well as the new ways of doing things.

Real estate is slow in more ways than one. Most real estate decisions take 3 months to 2 years to play out. Real estate must crash for at least another 6 months before any possibility of a rebound may take place. Because of the unusual severity and gravity of the shutdown on an economy that is not designed for such a ruinous course, the economy will have many hiccoughs and glitches before real estate can have any significant surge. Panic, fear, paralysis, capitulation, defaults, foreclosures, short sales, downsizing must all come first before real estate may have any meaningful surge. When real estate comes back, it won’t be business as usual. Corona-panic has hastened the death of the traditional real estate agent, in favor of technology-driven teams. Stay-at-home jobs shall be more of the norm for many.

Commercial real estate is in the most serious trouble. Commercial real estate deals were down worldwide nearly 43 percent in March year over year, according to data from research firm Preqin. North America was essentially the same with a 44 percent drop. Not only are many stores not able to pay their rent this month, part of the demand for stores and offices has permanently evaporated. Commercial real estate investors are going broke, but worse — many have dimming hope for a bright future.

With the local MLS Multiple Listing Service physically blocking in-person open house dates while attempting to initiate new virtual tour integration, Los Angeles real estate professionals were hoping for a virtual rescue. Unfortunately, virtual real estate is largely a flop at the moment because the market is down close to zero, plus the experience of visiting a property cannot be replicated by a virtual tour. The virtual tour does not show the surrounding neighborhood, does not reveal the squeaky floors, does not hint at the odors, does not show true natural light etc. The demand for virtual tours is relatively low right now. In the future, when the real estate market comes back, virtual will have an important role to play — particularly in weeding out unacceptable properties without the need for a visit.

As in many industries today, real estate professionals and investors have essentially gone on an extended stay-at-home vacation. Would-be home buyers and sellers are waiting it out. The deals that are going through have seen significantly higher concessions by the seller. Sellers are paying more of the buyer’s closing costs, sellers are paying more for repairs and sellers are reducing prices.

For those thinking years further into the future, the federal government could decide that it needs to inflate its way out of a $30+ trillion hole, which would launch home prices and interest rates into the atmosphere. The growth and adoption of digital blockchain currencies will also contribute to skyrocketing prices as the US Dollar follows foreign currencies into the toilet. That is all likely to happen in a few years, after prices have finished collapsing first.

In the mean time, the opportunities lie in downsizing, selling properties that are over-burdensome, fixing the mess, helping to bail out those in trouble, and investing in bargains as more sellers realize that there will be no miraculous economic recovery, no instant real estate recovery, and that many must sell at a lower and lower price. Many are unaware that the cooling process began in the tent-littered Downtown Los Angeles property market several years ago, as DTLA (and the nearby loft neighborhoods) real estate peaked in summer of 2018. If it gets cleaned up, Downtown could be among the first to rebound.

CHANCES OF GOLD

DISTANCE AND ECONOMIZE — All things internet, along with new cost-saving technologies are the key places to put our time and money today.

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Real estate to surge after Los Angeles cleans up its act

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.

UPDATE 5/20/2020:

Funeral home directors now explain the widespread fraud of “covid-19” deaths in straight-forward, plain New York english: https://youtu.be/g5f_6ltv7oI

Coronavirus Property Entry Advisory and Declaration

Today, we’re seeing a dangerous shortage of critical thinking and a perilous lack of investigative reporting about health and economics. The L.A. Loft Blog pledges to help protect the unhealthy and the healthy by providing the whole truth: ALL JOBS ARE ESSENTIAL. #coronavirus #update #realestate

The California Association of Realtors® has provided this advisory for those who are looking at real estate for sale and for lease. Here’s exactly what it says:


1. RISKS OF EXPOSURE: The Coronavirus (COVID-19) pandemic is a worldwide risk to human health. COVID-19 is highly contagious and has a mortality rate many times greater than the flu. COVID-19 can spread easily and exponentially. While people of all ages are at risk of catching COVID-19, persons especially at risk are those with compromised immune systems and the elderly. Persons over 65 of age may be at particular risk. 2. “STAY HOME ORDERS”: In order to reduce the spread of COVID-19, the State of California, as well as many California cities and counties have issued “Safer at Home” or “Shelter in Place” orders, with exceptions for essential activities. 3. REAL ESTATE SALES ACTIVITIES AS ESSENTIAL SERVICES: Under Federal and State guidelines, activities required to facilitate a real estate transaction have been deemed essential activities. Nevertheless, designation of some real estate activities as essential activities does not make them free from COVID-19 risks. All persons must still practice “social distancing” and take all steps necessary to protect themselves and others. Finally, some county and city orders are more restrictive than Federal and State guidelines and may take precedence over Federal and State guidelines. 4. REPRESENTATION AND AGREEMENT: By signing below, you make the following representations and agree as follows:A. You are either: (1) The seller, landlord, tenant, or occupant, voluntarily allowing someone to enter the Property for viewing, walk-through, inspections, or otherwise facilitating the real estate transaction; or (2) A prospective or actual buyer, tenant, real estate agent, or other person whose services facilitate the completion of a real estate transaction and are voluntarily entering the Property for the purpose of viewing, inspecting, or performing an activity or providing a services in furtherance of a real estate transaction. B. You understand that showing and visiting properties may be dangerous or unsafe and could expose you or others to Coronavirus or COVID-19. C. If applicable, you understand that your showing or visiting activities are part of an exception to Federal and State “Safer at Home” or “Shelter in Place” orders and that you are conducting those activities at your own risk. D. You understand that if you engage in any activities in violation of the law, including Federal, State, county or city orders, you areacting against the advice of Broker. E. You agree to take all reasonable and necessary precautions to protect yourself and others from the spread of COVID-19, including, but not limited to the following:(1) You are aware of and agree to follow all Federal, State, and local laws and orders, including Stay Home, Safer at Home, Shelter in Place orders, even though such laws and orders may be changing rapidly. (2) You agree and understand that it is your responsibility to exercise care to protect yourself, such as assessing your own risks, which may include age, underlying health conditions, recent travel, possible exposure to COVID-19, doctor’s recommendations, and State or Federal recommendations.(3) You represent that (i) to the best of your knowledge, you are not currently afflicted with, and have not knowingly, within the last 14 days, been in contact with someone afflicted with COVID-19, and (ii) you are not experiencing a fever, or signs of respiratory illness such as cough, shortness of breath or difficulty breathing, or other COVID-19 symptoms. (4) You believe that you are not likely to transmit or contract COVID-19. (5) When visiting or allowing someone to visit the Property, and if available, you agree to wash your hands with soap and water or use handsanitizer, and to wear rubber gloves, a protective face mask, and protective shoe coverings. Remember to not touch your eyes, nose or mouth.(6) You agree to practice social distancing by keeping at least 6 feet between yourself and others. Do not gather in groups, and do not touch surfaces or items in the Property. If you believe it necessary to touch surfaces or items in the Property, consider the risks of doing so. You are reminded that wearing protective gloves, face masks, shoe coverings, and washing and sanitizing hand are steps you can take to protect yourself and others. (7) After showing the Property, sellers, landlords, and occupants should clean and disinfect the Property, paying attention to any areas that maybe commonly touched, such as door knobs, handles and counter tops.(8) After viewing the Property, visitors should discard any gloves, masks or shoe coverings worn during the visit and wash their hands with soap and water for at least twenty seconds. 5. AGREEMENT, DECLARATION AND ASSUMPTION OF RISK: By signing below, you are declaring the foregoing is true, that you agree to take all recommended and reasonable actions to protect yourself and others from exposure to COVID-19, and that you assume the risk, as applicable, of entering the Property, or allowing someone to enter the Property. You understand and agree that no one, including but not limited to real estate brokers and agents, can guarantee that you will not be exposed to or contract COVID-19.


Commentary by the L.A. Loft Blog: | Video Blog

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We are reading claims that the Covid-19 mortality rate is many times greater than the flu. This contradicts top epidemiologists who say that SARS-CoV-2 is comparable to seasonal flu. We must immediately strive to learn the whole truth. Next, we must ask: How many will suffer and perish due to the current economic shutdown? Could panic be worse than a pandemic?

Corruption and poverty kill millions. Throughout history, panic and economic collapse have killed hundreds of millions of healthy individuals. Today, we are all at risk of panic-induced poverty and economic collapse that would affect the health and well-being of every man, woman and child. The International Monetary Fund has warned of “humanity’s darkest hour” if we fail on epidemiology and economics. To protect the unhealthy and the healthy, social distancing and other effective measures absolutely must be promptly taken in ways that preserve freedom and free enterprise so that Californians will have the resources that we need to survive next year, the next 10 years and beyond. California real estate professionals have declared their job essential. Yes, but not only real estate. History has proven that ALL JOBS ARE ESSENTIAL.

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LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

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Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking
IMF warns of “humanity’s darkest hour” if we fail on epidemiology and economics.

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.