Welcome again to the Actual Property e-newsletter. This week, we bought an professional to say six magic phrases that many Angelenos have been ready to listen to for a protracted, very long time: “It’s turning right into a purchaser’s market.”
The phrase was uttered in response to July housing knowledge, which as soon as once more noticed Southern California residence gross sales plummeting and costs getting cheaper and cheaper.
To be clear: we’re nonetheless nowhere near a market reset, and it’s laborious to say if costs will ever return to the place they as soon as had been. The pandemic pushed the market to dizzying peaks, and nobody’s predicting a crash after years of record-breaking gross sales. However the previous few months really feel like the beginning of a brand new period — a spring flower rising from the snow.
To correctly discover the altering market, we checked in with sellers, a lot of whom are merely taking their ball and going residence. Houses that after noticed bidding wars are actually languishing in the marketplace, and lots of would-be sellers are deciding to not listing their properties till the market takes off once more.
Have in mind, these traits are more-or-less restricted to the common housing market. All bets are off on the luxurious aspect, and this week noticed two high-profile sellers shoot for astronomical sums.
The primary is Ben Affleck, who’s asking $30 million for his Pacific Palisades bachelor pad. It’s an bold worth contemplating he paid simply $19 million for the golf course property 4 years in the past and hasn’t made many modifications.
The Oscar-winning actor has little use for the 13,000-square-foot mansion anymore. He just lately married Jennifer Lopez, and the pair are in search of one thing a bit larger.
In the meantime, the world’s sixth-richest man, Larry Ellison, is eyeing a fair larger fortune for his oceanfront compound in Florida’s North Palm Seashore: $145 million. The ask is much more bold than Affleck’s, since Ellison paid simply $80 million for the property a yr in the past.
The tech mogul, whose internet value hovers round $110 billion today, set the Sunshine State file when he moved to a close-by residence earlier this yr, paying $173 million for a somehow-even-more-impressive place.
Lastly comes an replace from Downtown L.A.’s 6th Avenue, however this time, it has nothing to do with the newly well-known sixth Avenue Bridge. Along with the viral new viaduct, the road can be getting an $800-million studio full with 16 soundstages to serve the leisure business.
With streaming rising, the demand for soundstages is at an all-time excessive, and a number of builders round L.A. County want to fill the necessity.
As at all times, whereas catching up on the most recent, go to and like our Fb web page, the place you will discover actual property tales and updates all through the week.
SoCal residence costs dropped in July
A on the market signal stands in entrance of a home, on Oct. 6, 2020.
(Steven Senne / Related Press)
In current months, rising mortgage rates of interest have put the brakes on a once-hot housing market in Southern California and throughout the nation, writes Andrew Khouri.
With would-be consumers selecting to take a seat on the sidelines, gross sales are plunging and owners are slashing their asking costs to shut a deal. Now, there are indicators general residence values could also be headed down as properly.
“It’s turning right into a purchaser’s market,” mentioned Keith Hernandez, an actual property agent with Realty One Group Synergy in Whittier.
Few, if any, economists predict a crash in values just like 2008, however a rising variety of specialists say general residence values are more likely to decline within the close to future.
Sellers go on strike
Kevin Chen normally flips houses to promote, however with the market slowing he’s now selecting to lease out his property. (Irfan Khan / Los Angeles Occasions)
(Irfan Khan/Los Angeles Occasions)
Because the housing market has slowed throughout Southern California and the nation, sellers have needed to regulate their expectations, writes Andrew Khouri.
Houses that will have obtained dozens of gives at the start of the yr get only a few today. Different properties obtain none, forcing house owners to slash their asking worth and relinquish goals of file earnings.
Now, some would-be sellers are calling it quits altogether . These choices primarily cap how excessive stock can climb, with broad implications for present owners and future consumers.
“It places a ground on residence values if folks determine to not listing their houses,” mentioned Ralph McLaughlin, chief economist with actual property knowledge agency Kukun, noting fewer houses to select from helps maintain costs from plunging.
Actor gives $30-million bachelor pad
The half-acre property features a traditional-style residence and guesthouse that mix for seven bedrooms and 9 bogs.
(Google Earth)
Ben Affleck is providing up his bachelor pad in Pacific Palisades, itemizing a traditional-style mansion alongside the hyperlinks of Riviera Nation Membership for $30 million.
If the actor will get his worth, it’ll be the third-priciest sale within the coastal group up to now this yr. The 2022 crown at present belongs to Maroon 5 frontman Adam Levine, who unloaded his three-acre compound for $51 million in Could.
Affleck has little use for the 13,000-square-foot showplace today, which he picked up for $19 million in 2018. He since married Jennifer Lopez, and the pair have been touring a handful of luxurious mansions across the Westside.
Billionaire shoots for $145 million
The 6.5-acre unfold is the biggest oceanfront property at present in the marketplace in South Florida.
(Daniel Petroni)
Tech billionaire Larry Ellison is chasing historical past in South Florida, itemizing his prized property in North Palm Seashore for $145 million — a major bounce from the $80 million he paid for it final yr.
If he will get his worth, it’ll be one of many largest residential gross sales ever within the Sunshine Shine. The Oracle co-founder set the file himself earlier this yr when he paid $173 million for a fair bigger place a couple of miles down the coast.
Ellison — whom Forbes lists as the sixth-richest individual on the earth with a internet value of $110 billion — collects prized actual property like youngsters accumulate baseball playing cards. He’s been probably the most lively in Malibu, the place he spent the previous few a long time scooping up dozens of oceanfront houses in Carbon Seashore and past, racking up a tab that has soared into the a whole lot of tens of millions.
His trophy property in North Palm Seashore gives an nearly unprecedented quantity of house alongside the ocean with 563 toes of water frontage. At 6.5 acres, it’s the biggest oceanfront property at present in the marketplace in South Florida.
New studio deliberate for Downtown L.A.
Rendering of inside of East Finish Studios ADLA Campus displaying elevated pedestrian terraces.
(Grimshaw)
With film and tv manufacturing surging, a warehouse property close to the newly well-known sixth Avenue bridge in downtown Los Angeles is ready to be became an $800-million studio to serve the leisure business, writes Roger Vincent.
East Finish Studios will submit an software to town Monday to construct a studio on 15 acres at sixth and Alameda streets the place streaming providers and different leisure creators might make TV exhibits and films.
With 16 soundstages, East Finish Studios’ ADLA Campus could be one of many bigger studio initiatives within the pipeline for Los Angeles County, the place a number of builders are dashing so as to add new services to fulfill demand.
Present soundstages within the county have been nearly totally rented for years, which might make it laborious for brand new productions to search out locations to work, mentioned Paul Audley, president of FilmLA, the nonprofit that handles movie permits within the area.
“We’ve seen streaming rising at a mean charge of 35% a yr,” he mentioned. “Even when that backs off, which some folks are actually predicting, we nonetheless don’t have sufficient stage house to cope with that.”
What we’re studying
The New York Occasions discovered a troubling story in Maryland, the place a Black professor had his home appraised at $472,000. When he eliminated household pictures and had a white colleague stand in because the proprietor, the second appraisal shot as much as $750,000. Now, he’s suing.
KQED profiled California’s YIGBY motion — also called Sure in God’s Yard — through which church buildings are trying to construct reasonably priced housing on their abundance of undeveloped land. Nonetheless, as a consequence of excessive building prices, forms and NIMBY neighbors, the efforts have been removed from profitable.
Welcome again to the Actual Property e-newsletter. This week, we bought an professional to say six magic phrases that many Angelenos have been ready to listen to for a protracted, very long time: “It’s turning right into a purchaser’s market.”
The phrase was uttered in response to July housing knowledge, which as soon as once more noticed Southern California residence gross sales plummeting and costs getting cheaper and cheaper.
To be clear: we’re nonetheless nowhere near a market reset, and it’s laborious to say if costs will ever return to the place they as soon as had been. The pandemic pushed the market to dizzying peaks, and nobody’s predicting a crash after years of record-breaking gross sales. However the previous few months really feel like the beginning of a brand new period — a spring flower rising from the snow.
To correctly discover the altering market, we checked in with sellers, a lot of whom are merely taking their ball and going residence. Houses that after noticed bidding wars are actually languishing in the marketplace, and lots of would-be sellers are deciding to not listing their properties till the market takes off once more.
Have in mind, these traits are more-or-less restricted to the common housing market. All bets are off on the luxurious aspect, and this week noticed two high-profile sellers shoot for astronomical sums.
The primary is Ben Affleck, who’s asking $30 million for his Pacific Palisades bachelor pad. It’s an bold worth contemplating he paid simply $19 million for the golf course property 4 years in the past and hasn’t made many modifications.
The Oscar-winning actor has little use for the 13,000-square-foot mansion anymore. He just lately married Jennifer Lopez, and the pair are in search of one thing a bit larger.
In the meantime, the world’s sixth-richest man, Larry Ellison, is eyeing a fair larger fortune for his oceanfront compound in Florida’s North Palm Seashore: $145 million. The ask is much more bold than Affleck’s, since Ellison paid simply $80 million for the property a yr in the past.
The tech mogul, whose internet value hovers round $110 billion today, set the Sunshine State file when he moved to a close-by residence earlier this yr, paying $173 million for a somehow-even-more-impressive place.
Lastly comes an replace from Downtown L.A.’s 6th Avenue, however this time, it has nothing to do with the newly well-known sixth Avenue Bridge. Along with the viral new viaduct, the road can be getting an $800-million studio full with 16 soundstages to serve the leisure business.
With streaming rising, the demand for soundstages is at an all-time excessive, and a number of builders round L.A. County want to fill the necessity.
As at all times, whereas catching up on the most recent, go to and like our Fb web page, the place you will discover actual property tales and updates all through the week.
SoCal residence costs dropped in July
A on the market signal stands in entrance of a home, on Oct. 6, 2020.
(Steven Senne / Related Press)
In current months, rising mortgage rates of interest have put the brakes on a once-hot housing market in Southern California and throughout the nation, writes Andrew Khouri.
With would-be consumers selecting to take a seat on the sidelines, gross sales are plunging and owners are slashing their asking costs to shut a deal. Now, there are indicators general residence values could also be headed down as properly.
“It’s turning right into a purchaser’s market,” mentioned Keith Hernandez, an actual property agent with Realty One Group Synergy in Whittier.
Few, if any, economists predict a crash in values just like 2008, however a rising variety of specialists say general residence values are more likely to decline within the close to future.
Sellers go on strike
Kevin Chen normally flips houses to promote, however with the market slowing he’s now selecting to lease out his property. (Irfan Khan / Los Angeles Occasions)
(Irfan Khan/Los Angeles Occasions)
Because the housing market has slowed throughout Southern California and the nation, sellers have needed to regulate their expectations, writes Andrew Khouri.
Houses that will have obtained dozens of gives at the start of the yr get only a few today. Different properties obtain none, forcing house owners to slash their asking worth and relinquish goals of file earnings.
Now, some would-be sellers are calling it quits altogether . These choices primarily cap how excessive stock can climb, with broad implications for present owners and future consumers.
“It places a ground on residence values if folks determine to not listing their houses,” mentioned Ralph McLaughlin, chief economist with actual property knowledge agency Kukun, noting fewer houses to select from helps maintain costs from plunging.
Actor gives $30-million bachelor pad
The half-acre property features a traditional-style residence and guesthouse that mix for seven bedrooms and 9 bogs.
(Google Earth)
Ben Affleck is providing up his bachelor pad in Pacific Palisades, itemizing a traditional-style mansion alongside the hyperlinks of Riviera Nation Membership for $30 million.
If the actor will get his worth, it’ll be the third-priciest sale within the coastal group up to now this yr. The 2022 crown at present belongs to Maroon 5 frontman Adam Levine, who unloaded his three-acre compound for $51 million in Could.
Affleck has little use for the 13,000-square-foot showplace today, which he picked up for $19 million in 2018. He since married Jennifer Lopez, and the pair have been touring a handful of luxurious mansions across the Westside.
Billionaire shoots for $145 million
The 6.5-acre unfold is the biggest oceanfront property at present in the marketplace in South Florida.
(Daniel Petroni)
Tech billionaire Larry Ellison is chasing historical past in South Florida, itemizing his prized property in North Palm Seashore for $145 million — a major bounce from the $80 million he paid for it final yr.
If he will get his worth, it’ll be one of many largest residential gross sales ever within the Sunshine Shine. The Oracle co-founder set the file himself earlier this yr when he paid $173 million for a fair bigger place a couple of miles down the coast.
Ellison — whom Forbes lists as the sixth-richest individual on the earth with a internet value of $110 billion — collects prized actual property like youngsters accumulate baseball playing cards. He’s been probably the most lively in Malibu, the place he spent the previous few a long time scooping up dozens of oceanfront houses in Carbon Seashore and past, racking up a tab that has soared into the a whole lot of tens of millions.
His trophy property in North Palm Seashore gives an nearly unprecedented quantity of house alongside the ocean with 563 toes of water frontage. At 6.5 acres, it’s the biggest oceanfront property at present in the marketplace in South Florida.
New studio deliberate for Downtown L.A.
Rendering of inside of East Finish Studios ADLA Campus displaying elevated pedestrian terraces.
(Grimshaw)
With film and tv manufacturing surging, a warehouse property close to the newly well-known sixth Avenue bridge in downtown Los Angeles is ready to be became an $800-million studio to serve the leisure business, writes Roger Vincent.
East Finish Studios will submit an software to town Monday to construct a studio on 15 acres at sixth and Alameda streets the place streaming providers and different leisure creators might make TV exhibits and films.
With 16 soundstages, East Finish Studios’ ADLA Campus could be one of many bigger studio initiatives within the pipeline for Los Angeles County, the place a number of builders are dashing so as to add new services to fulfill demand.
Present soundstages within the county have been nearly totally rented for years, which might make it laborious for brand new productions to search out locations to work, mentioned Paul Audley, president of FilmLA, the nonprofit that handles movie permits within the area.
“We’ve seen streaming rising at a mean charge of 35% a yr,” he mentioned. “Even when that backs off, which some folks are actually predicting, we nonetheless don’t have sufficient stage house to cope with that.”
What we’re studying
The New York Occasions discovered a troubling story in Maryland, the place a Black professor had his home appraised at $472,000. When he eliminated household pictures and had a white colleague stand in because the proprietor, the second appraisal shot as much as $750,000. Now, he’s suing.
KQED profiled California’s YIGBY motion — also called Sure in God’s Yard — through which church buildings are trying to construct reasonably priced housing on their abundance of undeveloped land. Nonetheless, as a consequence of excessive building prices, forms and NIMBY neighbors, the efforts have been removed from profitable.
