City of Angels, I’ve Never Loved You More
I know it’s hard to pull away from watching the news as the numbers tick up daily, but I take comfort in seeing our local officials take appropriate action and neighbors, once strangers, coming together like never before to stop the spread by staying apart. It warms my heart to see that we’re rallying to keep our beloved mom n’ pop eateries afloat with our orders while others dust off sewing machines to stitch desperately needed masks for our frontline workers. I’ve always loved my birthplace L.A., but never as much as I do now.
Over the past several weeks I’ve received many messages from clients about the state of the real estate market. What’s happening now is unprecedented, so I can only go by what I’ve learned over the past 15 years as a real estate broker on the Eastside of Los Angeles. Prior to Gov. Newsom’s “Safe at Home” order, 2020 was gearing up to be one of my biggest years. January and February, traditionally the slowest time of the year, were my busiest – ever. Most of my clients were battling 10-15 offers for most homes. Rates were close to historic lows and averaging around 3.5%.
In short, there were no underlying issues in the local market. The conditions we’re currently experiencing is a direct result of the pandemic. But this should not be a reason to panic about real estate. The conditions now are nowhere like 2008-2009 when the market collapsed due to over-leveraged banks and consumers, many who had little skin in the game with 0% down loans. Since 2011, the majority of buyers have had to traverse the lending gauntlet with 20% down, exemplary credit, work history and bountiful savings. In the past 4 years I’ve had the most clients come in with 50% to all-cash for their purchases. This is nothing like 2008-2009.
In the past 7 days in Burbank, Glendale, Pasadena, NELA, Silver Lake, Atwater and Los Feliz there have been 49 new listings up to $2M, 22 new accepted contracts and 21 pending sales days away from closing. The demand is still very high, spurred by very low rates and astute buyers who know that there are less buyers to compete with at the moment. Our current situation is an event, and as hard as it will be for us collectively, it too shall pass. So don’t worry about what this means for the home you own or the home you want to plant roots in. From everything that I can see, you’re safe.
Focus instead on what you can control. Love those you’re journeying with at-home. How lucky are we to get to spend all this time with our kids and/or partners when so many on the frontlines, from custodians to grocery store cashiers and doctors don’t have that option. Love your friends and family from a distance by periodically checking in. Do what you can to ensure our most vulnerable have the needed basics. How can we fall even more in love with L.A.? By being a blessing so we might become a peaceful harbor in this storm. We will get through this together ❤️