Real Estate is Up, If Anything

Interest rates are up, there's a war that could expand, there's been banking failures and likely more to come, yet real estate is holding on. Why is that?!

There is absolutely no doubt the first reason is inventory. There just isn't enough. When you have more homes that have sold than are on the market, that's very telling. Santa Monica has 39 homes for sale under $5M right now and 38 sold in the past month. Culver City has 8 for sale and 12 sold in the past month. West Hollywood has 16 active and 22 sold. Pasadena has 94 active and 171 homes sold. There just aren't enough homes compared to the demand. On the flipside, DTLA has 192 for sale and 83 homes sold, so now you know where there are deals to be had.

The second reason prices are still going up is safe haven aspect of real estate. Unlike the volatile stock and crypto markets and low yield treasuries, real estate is very malleable. You can rent out, update, flip, etc. And those who need to park some of their money are putting some of it in real estate.

Lending is going to get worse. If you think this banking thing is over, it's not. Banks will be under more scrutiny, and will be lending less. 10/90 loans will likely be hard to come by. Most conventional banks will want to see at least 20% down for buyers. So anyone holding onto their nice 2.9% loans is likely gonna just stay put. And why put your house on the market when you can just Airbnb the house, rent it out, or add on to it if you need the size?

To Sell Now, You Have to Step It Up

DTLA is a tricky market. First you have to love the city life. You have to love a little grit and the excitement of an ever-evolving area. Think Brooklyn before what it is now. Among brand new skyscrapers and stunning penthouses, you have vintage lofts, the highest concentration of old turn of the century buildings, and a Walkscore of 98. And Union Station where all metro lines meet. There are pop-up art galleries are happening all the time. You have some of the best small restaurants that were born in DTLA, like Sonoratown, Bestia, Factory Kitchen, Maccheroni Republic and Eggslut. And the audience is hip, eclectic, hate "normal" and love community. 

So what to do to sell your place when the real estate market is picking up, but the momentum is still not quite there yet? You have to step it up.

Some things you should be prepping before going on the market

1. Staging. Duh. Especially with open plan lofts, you have to stage it because a lot of people don't seem to know where a bed goes, or where to put a sofa in a rectangle room.

2. When staging, try to go very minimal, neutral, and organic. Meaning light and soft colors like beiges, whites, light browns. Put an-off white throw blanket over a dark sofa. Get a light colored rug to cover up dark floors. Get rid of the polkadots drapes, etc.

3. Declutter. Just hide it away. It's ok to have your cabinets stuffed with things, but please just hide it away. Rent a storage space if you need to.

4. If you can, hide personal photos, religious objects, trophies, wall plaques, suitcases, sporting gear and shoes. 

5. Swap out lighting. No more silver IKEA track lights please. Just pick out something modern, you can get a nice looking pendant on Amazon for under $100. 

6. Ensure windows are cleaned. They should be spotless for showings. It matters in a condo/loft as it's the only outdoor visual one gets in a building, so clean the windows.

7. Update bath and kitchen fixtures. Just spend a couple hundred on a faucet and showerhead. It makes a difference.

Some Amazing Move-in Ready Mills Act Lofts for Sale Right Now

Eastern Columbia Penthouse #1210

2+3, 3320sf

Largest 4-level trophy penthouse! Amazing views, walk out to the pool deck. One owner and finally on the market. - The Agency, Kevin Dees

$3.699M

Eastern Columbia #511

1+2, 1740sf

Spacious and stunningly remodeled corner loft with a Scandi aesthetic. Features a rare private balcony. - Coldwell Banker, Yuri Huxley

$1.475M

Rowan #104

2+2, 1140sf

Fantastic 2-story loft with rare ground level roller door access. Ideal for filming, art studio etc. - Coldwell Banker, Tracy Do

$850K

Textile Loft #901

2+2, 1370sf

Bright and airy corner loft with windows galore. A true historic loft with amazing views. - KW, Peter Buoncore

$795K

Cornell Loft #301

0+1, 800sf

Gorgeous open plan studio loft with tons of natural west-facing light. - The Agency, Alice Cannington

$499K

Cornell Loft #302

1+1, 740sf

Beautifully preserved historic 1 bedroom with massive concrete structural walls. - Coldwell Banker, Yuri Huxley

$459K