Author Archives: Michael Hiatt

LOS ANGELES MARKET REPORT: HOME SALES IN THE COVID19 ECONOMY

Los Angeles. Day 56 of California’s Stay-In-Place order.

Home sales, by no means business ”as usual,” are getting done and escrows closing.

Changes in health and safety protocols when interacting with the consumer changes daily. April 28 was a first sign of re-opening residential real estate and the vital reconnecting with consumers face to face at a safe social distance, with the Mayor of Los Angeles public announcement that showings of home could take place with mindful, strict protocols.

On technology: The rapid development of virtual showings and open houses are becoming more widely used as a first introduction to a home or income property. Is this a window to the future or a layer to the home buying experience? The real challenge is creating the emotional “home connection.” The current technology and execution seem to be paralleling on-line dating.

Over the year and well into the “stay in place” COVID19 economy, the key one-year home sales numbers in the Los Angeles Metro Area for the one year to period, month of April (2019 v. 2020):

 

2019 Total Units Sold           Total Sales Volume                        Average Sale Price/List Price

672                              $1,213,445,000                                   97%

2020 Total Units Sold (% )   Total Sales Volume (%)                 Average Sale Price/List Price

342 (down -49%)       $700,427,000 (down -42%)             93%

2020 Current Listings For April, 2020 (as of 4/30/2020)

   Active   (Homes)           Accepted Offer (Under Contract)     Pending (to Close Escrow)        

1,748                                       253                                                         331

To our global neighbors, together let’s stay safe and committed to our collective health, to reopening businesses, restoring paths of prosperity and let’s lead and move forward on to a strong global economy

 

Source: The MLS published active and closed sales as of 4/30/2020

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TOP TRENDING LA AREAS IN 2020

Where the best buys can be found in greater Los Angeles
Los Angeles is always on the move. Neighborhoods and unique cultural experiences root themselves with regular frequency. 2019 and 2020 have, and will continue to deliver on the key infrastructure and anchor investments to support the growth and global interests and demands of the Los Angeles Lifestyle. In this list of “top” areas, many adjacent neighborhoods will benefit, as well.
INGLEWOOD: Case in point. No one area will continue to flourish as will Inglewood, for business, residential real estate and tourism like Inglewood,. A destination for new transit lines and commerce, is the start of the “Buy Inglewood” conversation. It is soon to be transformed into LA’s newest Sports and Entertainment hub with the So-Fi Stadium complex and Forum. Travelers coming through one of the world;s busiest and newly renovated airports, LAX, Inglewood is a good first stop to experience the LA lifestyle.
DOWNTOWN LOS ANGELES: The pace of new condo developments, apartments, the LA River/Arts District, shopping and restaurants is almost dizzying. Supply and demand cycles have a great impact on the appreciation and stabilizing of home prices; and purchases tend to be time sensitive. Still however, Downtown LA provides a great value buy as the metropolitan city center., At the end of this latest development boom, values will most likely reflect solid appreciation. and the quintessential vibrant Los Angeles will be best experienced here in DTLA.
PACIFIC PALISADES: A future destination and one of the city’s best coastal living areas, this neighborhood right now is a buy-in. Destined to be one of the most expensive areas by price per square foot, this European and Italian inspired community will continue to resonate to the elite global Buyer. Consider values have been “softening” over the past two quarters, the window of opportunity is now,.
ATWATER VILLAGE/MOUNT WASHINGTON: The cultural heart of this city resides in these neighborhoods. Gentrification here gives way to rediscovery: Artists and families are finding a place where existing bohemian cultures and new generations can co-exist and enrich each other’s lives and experiences.. These areas are transportation hubs to the DTLA city center and the re-vitalized communities to the north and east.
EAST LOS ANGELES: Just to the east of the LA River and Boyle Heights are residential tightly knit neighborhoods that make of east Los Angeles. These are areas that reflect the diversity potential of Los Angeles. Investment in buying and living here will deliver rewards both culturally and financially.
For more residential real estate information and relocation to Los Angeles, contact Michael Hiatt, Broker Associate, Sotheby’s International Realty, at: [email protected]. or visit the Hiatt Homes Group website at www.hiatthomes.us.
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BY NIGHT AND BY DAY, LA The Big City of “Little” Towns

Los Angeles is a city of many smaller cities and independent incorporated areas, and home to over 200 ethnicities: Making Los Angeles a truly global city.
The many cultures represented here and throughout Los Angeles, in fact, have their own cultural hubs in the “little” defined neighborhoods that are a magnet to locals, tourists and foreigners visiting, transitioning and relocating to metropolitan Los Angeles, and providing for an unparalleled world of cultural experiences almost anywhere one may venture in Los Angeles. here.
Spend a day wandering through the shops, markets and restaurants of Thai Town, Little Armenia, Little Ethiopia, Little Tokyo, Filipino Town, The Garden District of Little Osaka, and adjacent to the heart of downtown Los Angeles, China Town; Downtown and Monterey Park, Korea Town, home of the second largest Korean community outside of Seoul, and the many Latin cultural centers including Olivera Street, the celebrated heart of our Mexican heritage.
Stroll, discover and enjoy the LA vibe.
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Why Buy LA, Today

Los Angeles is a vibrant city seemingly in perpetual renaissance with a Global trajectory. Now more than ever, Los Angeles, the city that declared itself as such in April, 1850, is now the 2nd largest metropolis in the United States by population. Los Angeles continues to grow, and people come to live here for the predictable year-round sunshine and active-lifestyle, as well as  almost limitless talent pool in a spectrum of business, finance, entertainment, education, manufacturing, technology and the list goes on.

Beyond a popular national destination, Los Angeles is fast becoming a Global one. There are roughly 200 ethnicities that call Los Angeles home: Truly a city of global diversity.

Homes and real estate are built on the land and “open space” model, as opposed to a vertical, high rise living. Yes, new construction is changing all that, because global cities of the future will be built around the live, work and cultural center with their unique identities.

On a national scale, Los Angeles is ranked about the 6th highest home price and affordability in the US based on price per sq. ft. Globally, Los Angeles is still a real estate secret and a great global value. There is clearly room to grow in home prices and value here.

The US and Los Angeles home buying opportunities are today…. Don’t hesitate: Interest rates are at a low, inventories are rising, and value buys exist in many neighborhoods.

Consider the scale of the today’s LA Renaissance:

  1. Infrastructure Investment of $120 Billion over 40 years for transportation and expand public transportation.
  2. 28 by’28. The Summer Olympic and Paralympic games in 2028 with 28 designated public projects to be completed. LA Stadium a world class sports and entertainment complex to be completed in 2020 and a host to the Super Bowl in 2021.
  3. San Pedro/Long Beach The # 1 Shipping Port in the Western Hemisphere.
  4. LAX. Los Angeles International Airport. #1 Origin and Destination Airport in the US and 4th Biggest Airport in the world with 87.5 Million passengers served in 2018. $14 Billion + ongoing capital improvement projects.

Windows of opportunity come and go as do fluctuating markets. However, the historical rolling market average in Los Angeles residential real estate out-paces inflation, appreciates over time and you live in a city with the reputation of “stars by day,” and sunshine “365 days a year.” Neither is wholly true, but the experience and lifestyle in Los Angeles will deliver on its investment and global reputation.

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Valentine’s Day in LA With Your Furry Friend

One of the best ways to celebrate Valentine’s Day is with a dog. Cuddle a puppy who will love you unconditionally, never let you down, and always give you lots of kisses. Unlike your last ex, you’ll never kick him/her out the door. A dog will never disappoint you! Following are suggestions on how to spend a lovely time in Los Angeles with your favorite furry significant other:

1. Re-watch Lady and the Tramp

February 13-15, 2019 7 pm
El Capitan Theatre Hollywood
Tickets $10
Call 1.800. DISNEY6 to book

2.  Bark and Rock Out to Live Music in Grand Park, Downtown

3. Grand Park Lovers Rock
Featuring DUB CLUB
February 14, 2019
6-11 PM
Grand Park Olive Court (between Grand and Hill)
Free
All Ages and Breeds Welcome

Groove to the soulful vibes of Lovers Rock reggae with LA’s top ranking reggae selectors of DUB CLUB! Bring your own special picnic dinner or enjoy the food trucks.

Click Here for More Information

4.  Find Momo Pup-Up Gallery Launch Pawty

February 19, 2019 6:30 PM to 8:30 PM
Healthy Spot 6320 Topanga Canyon Blvd., #1635, Los Angeles, CA 91367

Andrew Knapp’s photos from his latest book. which features his travel Momo travel across the world with his dog Momo.  Admission is free. Click Here for More Information

5.  Eat at a Dog Friendly Restaurant:

Don’t leave Fido home when it’s time for dinner. A dog’s gotta eat too! And no matter where you’re headed, there are so manyn great sidewalk cafes, brew pubs, coffee shops, or other eateries that will welcome your pup to join you at an outdoor table. Bone appetit!

Best Dog Friendly Restaurants in LA

6.  Meet Up with Herky the Cavalier at Cavology Pup Up!

CAVOLOGY is an accessories brand designed by dog lovers for dog lovers. Inspired by their two Cavaliers, the brand focuses on providing high quality, stylish accessories that caters to active lifestyles of dog parents. Click Here For More Information

7.  Get a “Bow Wow Workout” In

$15.00
Monday, Wednesday & Friday 6:00 pm 
Runyon Canyon (Fuller entrance)

Spend time with your pooch while losing yours!

Click Here For More Information

8.  Pamper your Best Friend at a Doggie Spa:

You know there is nothing better than a massage, facial, mani/pedi or body treatment.  Doesn’t your precious pet deserve the same?

Click Here for LA Pet Pampering

9.  Walk Your Dog On (Oops, I mean Near) The Beach

If you are doggone determined to walk your dog on the beach, check out Rosie’s Dog Beach in Long Beach, one of the only dog friendly beaches in the LA area.  A great alternative is Palisades Park in Santa Monica.

Click Here for More Information

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The Elite Rental Market Claims the New Palisades Village

If you have not already read or heard, some of the priciest rentals in the Westside are right here in our Palisades Village backyard: In addition to the spectacular Palisades Village retail development, there are now being offered, 8-luxury long term (1-year to 18 months) rental apartments along Sunset and Swarthmore. At this writing, two of the six are already rented. Each unit is exquisitely finished and appointed; private/secure terraces and balconies; the services and amenities of a five-star hotel; and a “100 walking score” to the Palisades Village and… ah… the Palisades Village…. New and original. Floor plans range from one to three bedroom (2 plus, den).
One of my colleagues, a well published, local realtor, was quick to publish in the Palisadian Post recently, “I would be very pleasantly surprised if our local market could support a Sunset-facing apartment at more than $30,000 per month, even if it is three bedrooms and baths, unless other services besides direct access from parking below are included.”
Clearly, the self-service side of this realtor’s quote is only eclipsed by the backward perspective and backhand praise of the evolution of the Palisades, the quality the Palisades Village adds to our community, and our Palisades global market position in a Westside and Los Angeles home market story that still delivers market value pricing:
Comparative Luxury Westside Rentals: Based on published entry level rates
Average price per sf
Palisades Village $11.83 per sf/per month
10000 Santa Monica Blvd. New development, Century City $10.69 per sf/per month
301 Ocean Ave, New Development, Santa Monica $10.69 per sf/ per month
1221 Ocean Ave. Santa Monica, Older residence $9.61 per sf/ per month

Consider: Malibu Beach Inn (per night, January rate) $1,049 per night.
(If the rate were $30K/mo., at 1000sf: $30 per sf/per month)

The Rental Principal; Offering price is to vacancy rate, as failure is to success. We will revisit this elite luxury rental conundrum in a year when the Residences at Palisades Village are 100% rented (a professional prediction from your friendly Palisades Luxury Rental Realtor)

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Charting a Course in a Transitional Market: What First Time Sellers Need to Know

Many a seasoned home owner will agonizingly recount the opportunities that were missed through those wicked “Buyer” markets when values tanked and under-water, cash strapped Sellers needed to sell. Even a Southern California homeowner will tell a story or two of rock bottom prices, painful interest rates and market killer, impossible lending practices. “Doom and gloomers” come and go. The intrinsic long-term values and prices of real estate and home ownership remain.

Over the past several years of a Seller’s Market (not to be confused with the current almost 9-year appreciating market), individual home ownership percentages have actually decreased. As one result, there are statistically fewer first time Sellers. The ramifications of this trend is subject for another time along with addressing of the challenges to our real estate industry.

Here are the opportunities, mind sets and strategies to best advantage the transitional market.

A transitional market, first, is an opportune time to make moves and for many first timers Buyers and Seller to invest/move up and/or “get wet.” I know this is contrary to Sell at the peak and Buy at the bottom. For you wunderkind, keep procrastinating.

Given there are Buy and Sell “deals” in every market. If you question that, read on…. Then call me.

Here are the top 5 ways to prosper and profit in a transitional market. The following are meant for Sellers, who are pursuing purchases in a particular market area (i.e. the Westside)

  1. Define your reason for selling and commit to it: Move-up. Down size. Build long term equity. Move out of area altogether. Alternately, consider keeping your home for investment and commit to managing your asset for fun and profit. The “what if” options can offer creative and exciting changes.
  2. Define realistically, “a deal”. Understand the long term value proposition. In the Los Angeles market that is a relatively high percentage scenario, If you are a flipper, however, you may need to look at different market areas for the short term profits; that is your number one consideration. Transitional markets are uncertain and harder to forecast turnaround time tables and realize ROI.
  3. Make your home move-in ready. Maximize the emotional value. Make the investment to sell, even upgrades should be carefully considered. Buyers will value your care and appreciate the better dollar investment.
  4. Hire a professional agent who clearly understands your goals and can develop a plan to move those real estate objectives forward. As important as the sell-side marketing strategy, is the buy-side strategy to purchase. When your listing agent can’t or won’t manage both sides, find another agent, one who is centered on your goals and can deal with the timing and the intricacies to construct a win-win scenario. Your agent is your fiduciary representative and market expert. More than ever, a transitional market will demand and reward the strong agent/client relationship.
  5. Accept and capitalize on the Sell low/Buy low market cycle. If you are selling for upgrade or Selling to free cash to invest,) now is the time to look at buy opportunities. Pursue the upgrade locations. You will sell and buy “horizontally.” Your home has most likely spiked in value and prices have leveled off or beginning to drop. Accept it: Because so has your neighbors and in those homes in “upgrade” locations. Buy location. Set your sights on better locations. Where do you want to live? Where do you want to invest? Marginal locations (busy streets, less desirable neighborhood and street locations, etc.) will take even steeper price drops.

 

While others sit on the sidelines, sell and invest in your future with a contrarian mindset, and a transitional market can be rewarding

 

Connect with me or more strategies on how to Sell and prosper in this transitional market.

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