On the same day July 8, 2015 the news reports three significant global market changes. In Russian real estate the ultra wealthy have slowed their buying. Exclusive villas in the shadow of Moscow and neighbors of Vladimir Putin in Rublovka have been affected by the steep devaluation of the rubel and western sanctions against Russia. In China the stock markets have tanked in the past few weeks with the peak of the Shanghai Composite dropping over 25% since June and currency controls by Beijing are for this week not stemming the sell off. Nevertheless the markets in China are still up nearly 74% from mid-2014. Lastly, the Grexit is looking like it may be a reality after the referendum vote unless the last minute swap of Greek finance ministers from the unabashed vocal contrarian opinions of Yanis Varoufakis to the more ECB/IMF friendly Euclid Tsakalotos, an Oxford-educated economist who can hopefully get a a loan done and a refinancing of the Greek debt accomplished in the final hours. The lesson from all this is that money and I mean big money moves and stops moving very quickly. Currently this all bodes very well for American real estate and namely top […]
Monday, September 8, 2014 c.2014 Shane Phillips Read the full post at Better Institutions. Since 1999, Downtown LA Has Built a Fifth of All Housing In Los Angeles. In a city of 470 square miles, Downtown LA is a speck: five square miles, barely one percent of the total area. And yet, since 1999, approximately one-fifth of all residential construction in the city has occurred in this relatively tiny space. And there’s a lot more coming. Downtown makes up one percent of the land area in Los Angeles, but it’s accounted for twenty percent of new residential construction since the Adaptive Reuse Ordinance in 1999. Chart by Shane Phillips. According to the Downtown Center Business Improvement District’s 2014 Market Report, nearly 20,000 units have been built Downtown since the approval of the Adaptive Reuse Ordinance in 1999. Another 20,000 are in the development pipeline, likely to be built in the next 5-10 years. In contrast, data from the California Department of Finance (1, 2) show that the city has added approximately 98,000 new units in the last 15 years. This focused growth has paid off in a big way, as most locals can attest to, and it’s a testament to […]
Innovative apartment buildings are simply not that common. Most developers are looking to either maximize units and square footage within the structure’s footprint or are timid in taking architectural risk on design that may meet community opposition or miss the mark in attracting positive recognition. In Graz, Austria architectural group of Love Architecture and Urbanism designed the balconies of this apartment building “as a simple way to transform the new Ragnitzstrasse 36 apartment block into something more striking.” The building has 15 small apartments and one penthouse apartment and was targeting local medical professionals that work at a nearby hospital. Read the full article in De Zeen.
Understanding Los Angeles real estate is part boots on the ground, part common sense, part historic trends and part looking at the data. Immigration to Los Angeles is the number one factor that affects change and values in neighborhoods. The immigration 30-50 years ago was young people looking for a new life, then overseas nationals and central american immigrants, then Asian, Middle Eastern and Eastern European refugees and peoples looking for a better life. We live in a city that keeps changing. So, it’s not so much love they neighbor as try to understand who the new neighbor is that is moving in and how they will change your area over the next 10 years by either overwhelming the existing residents with a new direction or blend in slowly until the old guard moves on. Either way the place you live in today will change in 10 years so either be a part of the change or consider moving somewhere else…. keep reading… here is the article and data. Adam latimes.com/business/la-fi-adv-bubble-prices-20140304,0,6106375.story March 12, 2014 – Housing prices surpass bubble peak in some Southland ZIP Codes latimes.com / By Andrew Khouri Most are in the San Gabriel Valley or on the Westside, […]
Yes timing in real estate is important and market values do change. Since September 2012 to 2013 the median home price in Los Angeles has increased 50%. Sales on the upper end of the market is probably tilting the median price scale a bit, but nevertheless the market appreciation is real and values have increased.