We are excited to announce we'll be collaborating with Mark Sauer, from AllOneWealth to provide an economic update with valuable information, industry insight, and professional guidance on the latest key trends.
Mark is the Founder of AllOneWealth, a conscious investing, wealth management firm which melds the worlds of capitalism and social responsibility. His background in finance, blockchain, technology, and impact investing has resulted in his advisory of several impact-oriented enterprises where he aligns founder’s visions with profitable business practices. As well as, thoughtfully guiding individuals, families and institutions when investing for retirement, legacy, and capital expansion.
STATE OF THE MARKET:
As we enter the Summer, buyers are constantly asking us "what's going on with the market? Is now a good time to buy?" And the answer often depends on the buyer, the property and the location. The past two years have seen record appreciation in the hottest sellers market of the past four decades. While stocks are down, Los Angeles real estate is up, although the market is not as hot as it was several months ago.
While each neighborhood is its own hyper local market with unique dynamics, this month the Los Angeles real estate market has softened as a whole. More inventory has come on market and with the rate hikes (even though the past 48 hours have seen rates decrease) buyer appetite is beginning to cool. With the average rate in Los Angeles county, on a 30 year fixed in the mid to high 5% range, buyer's purchasing power is decreasing. That being said, rates are still quite low when compared with rates over the past two decades.
We are seeing less fierce bidding wars than we saw in March, where a hot property could fetch 20 offers "at ask" or above after the first open house. Even though the action is slowing, prices across the board have yet to reflect a softening market. Well priced properties continue to trade for near-record prices, although the market is in its initial stages of plateauing.
Enjoy your long holiday weekend,
Adam
MARK'S TAKE ON THE STATE OF THE ECONOMY:
We’re now entering one of the more severe moments of this year. Market sell off, -5% last week with more losses coming in today. Inflation increasing despite rate hikes and the Fed’s promise of a ‘soft landing’. Energy cost at all-time highs with the national average at the pump now over $5/gallon for the first time ever. And the war in Ukraine showing us our dependence on a global economy for commodities.
Bitcoin, and the entire crypto market, now suffering heavily. The survival of tokens, coins, and other digital currencies will largely depend on utility in the coming months. Heavily speculative aspects of the market will likely continue to suffer massive losses.
Allocation is king during times of systemic fear. Seeking out companies who create true an inherent value for society is always the best route – but now more than ever.
Below is your Monthly Market & Economic Update by the numbers. Interested in learning more about markets, inflation, QE or how you can take advantage of current investment opportunities? Schedule a call with us.
Warmly,
Mark & Adam
