As we enter the full swing of summer, we wanted to take a moment and reflect. The year has brought some unexpected changes to the economy and to the world stage. It has also been a remarkable year for Los Angeles real estate with record breaking sales. More than anything, this year has been remarkably gratifying as we have helped many of our clients far surpass their real estate investment goals and find their dream homes.
As always, thank you for your continued support!
Mark, the Founder of AllOneWealth, and I, are excited to provide an economic update with valuable information, industry insight, and professional guidance on the latest key trends.
Interested in learning more about markets, inflation, QE or how you can take advantage of current investment opportunities? Schedule a call with us.
Warmly,
Adam & Mark
STATE OF THE MARKET:
The Summer thus far has the Los Angeles real estate market stabilizing. Property values have plateaued and we are seeing more frequent price drops as sellers are looking to cash in on their gains over the past couple years. Although interest rates were recently hiked 75 basis points, mortgage rates have actually gone down slightly. Mortgage demand has decreased to pre-pandemic levels and sales volume is going down also. As the market cools, we are seeing fewer bidding wars and the pendulum in certain neighborhoods is swinging towards the buyer’s side. Malibu in particular is fully a buyers market.
If we have learned from the past six recessions, other than the crash of ‘08, property value has gone up slightly as the economy contracts. Owning property remains one of the best hedges for inflation, and demand for Westside property in Los Angeles is perennially high, offering homeowners some peace of mind.
We will continue to monitor the market and keep you up to date on trends as they develop.
Enjoy your weekends!
Adam
MARK'S TAKE ON THE STATE OF THE ECONOMY:
Cautiously optimistic.
A week of massive gains for the stock market incentivized by improving economic data, a 75 basis point federal funds rate bump, and positive remarks by Fed Chairman, Jerome Powell.
The market still has a long way to go, with mixed market data, but this recent promising shift in trend will certainly spur some optimism. While the conversation of a deep ‘recession’ seems to be lightening. I remain optimistic – but I would caution that we’re not quite out of the woods just yet.
All the best,
Mark
