Migration Patterns and how they affect Sellers and Buyers of the Los Angeles Real Estate Market.
Lately I have been reading quite a few articles about Migration Patterns in the United States. Needless to say the headlines made me ponder. That in turn made me do some research as to the patterns.
Not surprisingly as I suspected many people are moving for three reasons: The number one reason for relocating is the belief in the concept that “the grass is greener somewhere else than where they are currently living” this of course is broken down into two groups, one who group consists of believer in “Succeeding” at the new location. This Opportunity will give them the platform they were looking at to succeed; hence they are willing to Relocate to the new place. Then again there is the other group, who are of the belief that they cannot afford the lifestyle where they are currently living and choose a new location in the hope and expectation that they will succeed and achieve their goals. Therefore, they are ready to Relocate as well. The two groups are similar but diametrically opposite. One is beginning their search to Success the other has not achieved that goal and is considering trying it again some where else.
As a greater Los Angeles Relocation Realtor, I have been a proponent of watching Real Estate Trends. The better we can scientifically guess at what the trends will be like, the better we can advise our buyers and sellers in their long term as well as short term Real Estate buying and selling strategies. Needless to say these guesses need to be based on facts, statistics, which in turn permit educated decision by the buyers and sellers of Real Estate in the greater Los Angeles area.
My research has been focused on the number of Building Permits that are being pulled by small developers, large developers and mega developers in Los Angeles.
The first place I look at is the Mega High-rise buildings that are anywhere from one to five years away from coming on line from Santa Monica to Downtown Los Angeles. It is a safe bet that these Mega Developers have done some serious research of Migration Trends as well as Demographics of the area. Clearly they have the most to gain or lose, when a Luxury High Rise from start to finish could be in the hundreds of millions of dollars. In case you are wondering there are over 120 projects in the greater Los Angeles area such as Santa Monica, Marina Del Rey, Culver City and Beverly Hills to name a few. Needless to say there are more sections of Los Angeles to name. The important take away is, that the majority of these developments are Luxury High-rise Condominiums.
The second place I look for is the medium sized developers who do anywhere from six to ten Single Family Residential Developments in the Hollywood Hills, Beverly Hills, Malibu and Bel Air to name a few. These are the Developers who build homes that will sell for five million to hundreds of million dollars once they are finished. This depends on the magnitude of the home’s living square feet and the size of the land and of course the location. Needless to say there are hundreds of these being in various stages of the entitlement process as well as in the construction phase.
I also monitor the Consumer Confidence figures and the best way to gage that is the small developers who are more cautious since they risk their own, their family’s and friends’ life savings to succeed. They are not out in droves but every property that is a teardown or fixer there are usually 20-30 offers on them. Clearly this is a sign that the small developers are also confident hence are stepping into the building phase as well.
Needless to say another aspect I look for is what the Moving Companies have to say. This is also a great gage of what is happening in my particular State. I understand other states will be having inward migration from California, due to our cost of living increases, as well as those who came and decided that it is too much of a challenge to succeed in California.
Migration Patterns monitored by Atlas Van Lines
So with that said look at where California fits in the US Migration Picture. I loved that when you click on a State these numbers will come up:
Migration Patterns
CALIFORNIA
|
Year |
Inbound / Outbound |
|
2015 |
8,076 |
6,897 |
|
2014 |
7,599 |
6,368 |
|
2013 |
7,716 |
6,789 |
|
2012 |
6,918 |
5,960 |
|
2011 |
7,803 |
6,758 |
|
2010 |
7,160 |
6,529 |
|
2009 |
6,526 |
6,188 |
|
2008 |
7,705 |
6,834 |
|
2007 |
8,530 |
8,064 |
|
2006 |
8,485 |
9,407 |
Check out the link and see what your state is like. Needless to say I like what I am seeing. BTW this does not include the fact that the greater Los Angeles is also affected by World Migration. (clearly the subject of another post). In the meantime, if you are considering to Relocate to the greater Los Angeles area please reach out to me directly.
If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002(m) or homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com. I am a Pet Friendly Realtor and I contribute a portion of my commission to local animal rescue organizations
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