People are surprised to hear that Los Angeles County is the most unaffordable location in the entire United States when it comes to renting.
Continue reading “Los Angeles County is becoming a renter’s paradise: Building permits for multi-unit properties in Los Angeles soars to meet renting demand.”
The Arts District, just east of downtown LA has become one of the hottest real estate markets in Los Angeles. About 30 years ago, artists who were being priced out of areas like Santa Monica, Silverlake and other artsy areas of LA found that the old factory lofts in the district were reasonably priced and would make good artists lofts. Now it is a trendy up and coming area. RENTV has produced a film of the area. If you have interest in this part of Los Angeles, spend a few minutes watching this video.
The housing market continues to face a few trends in 2013. Low inventory, higher leverage because of low interest rates, and high demand from investors. Take for example the share of foreclosure re-sale properties that are being sold. In Southern California, the peak was reached in 2009 at 58.3 percent of all sales. Today foreclosure re-sales make up only 15 percent of all sales. This of course is one reason why the median home price has soared in the last year. With such high demand and low inventory, investors are able to poach high quality properties since coming in with an all cash position is much better than relying on a mortgage which most typical buyers will use. Also, the shadow inventory is being slowly leaked out since there is little reason to flood the market and depress prices. Banks have figured out that frenzied buying and record breaking low inventory is a good recipe for causing prices to jump up. Does distressed inventory even matter in Los Angeles anymore?
Los Angeles Distressed Inventory
One interesting point in all of this is that people now somehow think that there are no foreclosures or that somehow the housing market is back to the days of 2005 and 2006. Let us look at foreclosures in Los Angeles County:
Over 17,000 properties are in some stage of foreclosure in the county. Is this high? Well let us take a look at the non-distressed inventory that is listed in the MLS: