Real Estate Market Observations by Endre Barath Beverly Hills Realtor

By
Real Estate Agent with Berkshire Hathaway HomeServices 01238708
https://activerain.com/droplet/52F8

Real Estate Market Observations by Endre Barath, Jr. Beverly Hills Realtor

Periodically I like to share with my readers, my observations about the Los Angeles Real Estate Market.  Most recently I have been asked by a Real Estate Investors as to what I see as the market movers and what I consider the hurdles are in the greater Los Angeles area.

So, when I gave my answer, I thought other Los Angeles Real Estate Investors might benefit from my observations.

www.endrebarath.com

Some of the market movers are the fact that we are still in a low-interest-rate environment, hence this allows novice investors to continue to enter the buyer’s pool when it comes to purchasing Multi-Family Units in the greater Los Angeles.

Seasoned Investors continue to see a trend of rent increases as well as Single Family Home price increases. Hence they conclude that over time they will continue to reap a larger cash flow return from their tenants.

Large developers recognize the influx of Millennials to Los Angeles, particularly to Downtown Los Angeles.  Hence, they have been building and updating many of the tired buildings as well as converting them to Luxury Rental Units and to Luxury Condominium complexes.

Generally speaking, significant trends often happen gradually, seldom do they just happen overnight. The challenge is recognizing the gradual changes as the appear in front of our own eyes and preparing and making the adjustments. I have heard comparisons of Real Estate Shifts to ‘tides’, they are barely noticeable first, but over time you notice that a massive change has taken place.

Since November 2016 there has been a tremendous increase in consumer confidence. This in turn has continued to fuel the local economy and the purchasing of everything from cars to homes on a much larger scale than most of us anticipated.

www.endrebarath.com

Consequently, this activity in turn maintained the already limited or should I say, the shortage of inventory in all price points, which we have been experiencing for the past two and a half years. This high demand and lack of inventory has assured that the price points remained much higher than we anticipated.

If the above factors remain, I anticipate a positive real estate environment for Real Estate Investors in the greater Los Angeles area.

Now let us look at the hurdles and their negative impact on the Los Angeles Real Estate landscape. The most important challenge we face is:  Affordability or should I say the lack of Affordability of homes in Los Angeles.

The second hurdle and third hurdles are interconnected. If the interest rates climb to a significantly higher point and prevent extremely well qualified buyers from getting into their first homes.  That phenomenon in turn will push the lease entry points to an even less affordable price point and over building takes place. The idea of course is to the compensate the shortage, but if it ends up over compensating then  in turn will create a glut of rental properties, which in turn will put pressure on the Real Estate Investors.

www.endrebarath.com

All in all, since there is such a shortage of inventory for lease as well as for sale I do not see any major hurdles for the small Real Estate Investors in the long term, outside of the inability to step into the Los Angeles Real Estate Market.

Now if you are considering Investing in Real Estate in 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.

 

 

 

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate General Information
Location:
California Los Angeles County Los Angeles
Groups:
Posts to Localism
Local Expert
The Ninety-ninth Percentile
Bananatude
ActiveRain MasterMinds
Tags:
endre barath
los angeles investment properties
los angele real estate
los angeles income properties
endre barath berkshire hathaway beverly hills

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,659,317
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

WOW Endre Barath, Jr. if I send you my allowance every week ($20.00) will you invest it for me? Sounds like CA is the place to be . I truly wish I could afford it.

Apr 01, 2017 05:22 PM #1
Rainmaker
2,826,561
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Endre,  The inability to step into the market would definitely be a hurdle. My sense is that our markets are very similar. 

Apr 01, 2017 05:33 PM #2
Rainmaker
941,240
Thomas J. Nelson, Realtor e-Pro, CRS, RCS-D, Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Endre Barath, Jr. this was a great report, observations and I enjoyed the photos. 

Similar observation here in San Diego, CA. I think more of our millennial crowd head up your trendy way though.

Apr 01, 2017 05:37 PM #3
Rainmaker
3,237,291
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Bob "RealMan" Timm  did you make a typo $200k a week did you say?Endre

Apr 01, 2017 05:54 PM #4
Rainmaker
3,237,291
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Kathleen Daniels  indeed there are huge similarities:)Endre

Apr 01, 2017 05:55 PM #5
Rainmaker
2,190,192
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

I heard that Los Angeles is primarily owned by foreign investors, mostly from Asia. We have a lot of Bay area money moving into Sacramento at the moment, too. Not a lot of mom-and-pop investors anymore.

Apr 01, 2017 06:39 PM #6
Rainmaker
3,237,291
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Thomas J. Nelson, Realtor, CRS  interestingly not just from your city but from the entire country the Millennial have taken a liking for DTWLA  aka Down Town Los Angeles:)Endre

Apr 01, 2017 06:43 PM #7
Rainmaker
3,237,291
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents  we go through cycles, when the Japanese were at the top of their game they owned a large per cent of the inventory...then when the Iron Curtain collapsed the Russians owned a large per cent of the inventory... now it is the Chinese...but that is also changing since the cash flow has tightened up....Endre

Apr 01, 2017 06:45 PM #8
Rainmaker
3,248,853
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Endre

With the increase of pricing affordability in many real estate markets is becoming challenging.

Good luck and success.

Lou Ludwig

Apr 01, 2017 07:04 PM #9
Rainmaker
3,237,291
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lou Ludwig  you are absolutely right, Endre

Apr 01, 2017 09:06 PM #10
Rainmaker
4,432,467
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Anyone thinking of buying or selling a home in your market area should call you to be their agent.

Apr 02, 2017 01:34 AM #11
Ambassador
2,799,837
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Endre - Excellent analysis, and I'm struck by how much of it holds true for our market as well, even if at different price levels. Anyone with an interest in Beverly Hills real estate - or anywhere in LA for that matter - would greatly benefit from your astute representation.

Apr 02, 2017 09:20 AM #12
Rainmaker
3,237,291
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gita Bantwal  your support is always appreciated, Endre

Apr 02, 2017 09:48 AM #13
Rainmaker
3,237,291
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dick Greenberg  interesting that your market is so similar in many aspects. Thank you for the kind words, Endre

Apr 02, 2017 09:49 AM #14
Ambassador
2,912,338
Anna Banana Kruchten CRB, CRS
Phoenix Property Shoppe - Phoenix, AZ
602-380-4886

Endre really good market analysis.  The lack of inventory has really put a hitch in the market in your area as well as others.  Thankfully we've got inventory except if a few segments and categoris.  Investors looking to invest in downtown LA would be wise to hire  you for excellent advice and counsel.

Apr 02, 2017 01:28 PM #15
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
3,237,291

Endre Barath, Jr.

Realtor - Los Angeles Home Sales 310.486.1002
Ask me a question
*
*
*
*
Spam prevention