Tag: Real Estate News

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Real Estate Set to Collapse Due to Coronavirus

REAL ESTATE NEWS: CORONAVIRUS UPDATE LOS ANGELES, CA

April Fools Day may turn out to be no joke in 2020. Real Estate billionaire Tom Barrack says that commercial real estate is set to fall apart beginning April 1 unless the federal government takes unprecedented actions to stop it by loosening regulations and setting free the purse strings. Due to the current shut down of most businesses that rely on crowds, many of the owners of these stores, restaurants, entertainment venues, travel and many other companies do not have the money to pay rent that is due tomorrow. Barrack expects this to immediately impact the commercial real estate market (which is, in fact, already feeling the impact due to bleak expectations), then quickly spread to other industries. #coronavirus #dtla

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While Barrack is focused on commercial real estate, the residential property market is very much connected, thus shall feel the effects. Lofts and condos around Downtown Los Angeles have already fallen by 3%-7% in the last year, even before the Coronavirus and massive stock market crash. Home prices are expected to fall again in 2020, which has already begun in January and February. #realestate #california | Blog Video

Los Angeles Convention Center Turned Into Federal Field Hospital

While Downtown Los Angeles has achieved significant success in slowing the spread of the virus by social distancing, most feel the economic effects as 60% of Los Angeles residents have experienced reduced incomes, according to Loyola Marymount University’s Center for the Study of Los Angeles. The Convention Center has been turned into a federal field hospital.

Critics such as economist Peter Schiff, Jeff Berwick, notable medical doctors like former Representative Ron Paul and Senators Rand Paul warn that the coronavirus covid-19 reporting by the government, along with coverage by the mainstream media has been overblown or fabricated as cover for a mismanaged economy and bigger-than-ever, super massive bank bailout at the expense of middle-class Americans.

For DTLA real estate, the crisis come at a bad time. The L.A, Loft Blog has already reported declines in Los Angeles real estate, and has additional bad news to report. We will present a full report on the Corona Crash effects on residential real estate in the coming days.

Find out what your neighbor’s loft sold for. Get a free list of recently sold homes in Downtown Los Angeles or anywhere in California. Fill out the online form:

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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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DTLA Falling

Homeless encampments and crime grow after businesses close in Los Angeles

REAL ESTATE NEWS

After 20 years of uplifting renaissance, Downtown Los Angeles may be hitting a plateau, or worse — slipping into a sh!thole abyss. With more vacant commercial locations, dropping home prices and unfinished construction now a plague of the city center, DTLA sees exploding tent cities, trash and crime. #losangeles #realestate #homeprices

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Has Downtown stopped rising? Another indication may be that the once-popular DTLA Rising website has dropped in popularity, and now has been completely down for a number of days.

Downtown loft and condo prices have dropped 3% to 7% over the last 12 months. That is for sold prices, so the L.A. Loft Blog asked a big question in a recent post: “Are rents falling in Downtown Los Angeles? Below is a long answer to that question. | VIDEO

Because homeless citizens are not receiving the level of law enforcement service that they need, homeless are being neglected and victimized by crime at a growing rate. The overall crime rate in Downtown is 38% higher than the national average. For every 100,000 people, there are 9.72 daily crimes that occur in Downtown. Crimes against homeless people increased by 24% in 2019. The Los Angeles Police Department policy now tends to ignore most petty crimes involving homeless, which increases the chances of more serious crimes in the future. Additionally, LAPD usually fails to promptly dispatch police units to help prevent crime when citizens call to report potentially dangerous situations. A recent report of a man wielding an 18 inch machete at Elysian Park took more than 45 minutes for police arrival on the scene.

Pit bull threats are up. Several small dogs and people have been injured in Downtown and Lincoln Heights over the last two years. Leashless packs of pit bulls now regularly roam downtown parks from the Arts District to the lawn of LAPD headquarters, attacking other dogs, causing canine screams of pain, as permanently injured human victims watch in horror. More recently, a homeless couple living in a motorhome in Lincoln Heights near Downtown Los Angeles asked that the owner of a small dog to go away to avoid the pit bull, strongly suggesting that he cross the street. When the local resident suggested that the aggressive pittbull should be wearing a muzzle, the homeless man threatened to feed the small dog to the pit bull “for breakfast”.

DOWNTOWN LOS ANGELES RENT PRICES: UP OR DOWN?

Downtown rents are stable. Rent prices stayed about the same as last year. That’s good news for renters, but real estate investors profits are now beginning to get squeezed. More have moved into lofts, condos and apartments for lease as 472 rentals have been filled in the last six months, up by 22 over the same period in the previous year. That increase is tiny, however, compared to the large number of new rentals that have been constructed. The average price per square foot dropped by 18 cents, whereas landlords and investors were hoping for an increase. It look about 3 days longer to rent out each place, which costs landlords about $275 more to rent out each place on average.

As 24% of Californians have seriously considered moving out of the state, Jon Coupal of the Howard Jarvis Taxpayers Association says that Californians are nearing another California tax revolt.

It’s certainly not all bad news; Row DTLA shopping center is booming, as are many other businesses. The new Apple store under construction on Broadway is achieving slow, steady progress. At least Downtown has not experienced any kind of major exodus. Downtown residents are staying put longer. More people moved into Downtown in the more recent 6 months than in the same period the previous year. If and when L.A. Downtowners and Californians decide to gain control of the tent city trouble, conquer crime and figure out how to deliver more effective government at a lower cost, then Downtown L.A. will continue to thrive with an extremely bright future.

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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.