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Are you familiar with this sale, Miss Pip? Was there anything exceptional about this property? Looking at the photos it looked about as garden-variety as a house possibly could to me.
But the property was under contract right around Valentines Day.
Any slowdown from Covid-19 won't be extremely apparent til 30 days or so after consumers became more cautious.
People are WAY more likely to push the brakes on initiating a purchase by making an offer than they are to reneg on a contract.
This wasn't my primary residence. This was a rental I bought back in 1978 or so for 17K and rented all those years. It was all capital gain minus the 17K basis. The Fed capital gain on anything over 480K is 20%, Cali Capital gain rate is 12.3% and the new Medicare tax is 3.8%. Capital gains taxes of 36% on a roughly $700K gain is roughly $250K less the usual deductions of commissions, fees and renovation costs which knocked it down to roughly $200K
ahh. you boomers are lucky with those killer house prices.
17k adjusted for inflation is $70k, and there is no such thing as a 70k house today.
Still, glass half full, 500k over 40 years is a great return on 70k in today's dollars.
Anyone thinking about taking advantage of a "slowdown" in the RE market in Los Angeles due to Coronavirus better think again. No Corona downturn around here. Real estate is selling gangbusters in this area of Los Angeles with multiple offers coming in on nearly everything and properties being overbid on in a desperate effort to get into home ownership. Check out this property: typical 3+2.75 Spanish stucco with detached garage 1650 sq.ft. listed for $885,000
SOLD for $1,270,000--nearly $400,000 ABOVE asking price. Stories like this are common around here. Take a peak at what these lucky homeowners pocketed:
LOL...you do realize the lockdown just started? I live in LA to, and I can tell you after the 1992 riots, and the 1994 Northridge quake, the 2008 recession prices dropped.
As usual people with money aren't as affected as many others in times of crisis. If they can afford a million for a house I don't think current events plays that much of a factor in their decision making. They make good money regardless of source and probably view money as nothing but a tool. Sometimes a lot of tools have to come out of the box to get the job done.
Don't lump everyone together.
The OP is short sighted, rents will drop and so will home prices.
Jobs other than the food and beverage, retail, etc. are now having layoffs here in CA. I'm sure other places as well.
They're not going to pay people who really can't work from home more than a month or two of their salary. Teachers for example, you don't need as many teachers, won't need teaching assistants, cafeteria workers, etc. There will be layoffs.
People who do have a lot of money, usually have it because they manage it. They will wait until prices drop to buy.
Prices most certainly will drop. I would wait at least a month. People are losing jobs, unemployment is skyrocketing and we haven't even peeked yet with virus in this country. Buckle up, the ride is long and bumpy ahead in my opinion.
Give it a month. There will be a slowdown, guaranteed. Everyone with investable wealth is 20-25% poorer than a month ago. Hollywood is completely on hold.
LOL...you do realize the lockdown just started? I live in LA to, and I can tell you after the 1992 riots, and the 1994 Northridge quake, the 2008 recession prices dropped.
Do some critical thinking.
As one poster said, give it a month.
Doesn't matter when it was listed, only when it sold, and you'll notice the sell date was March 20 when we were right in the thick of the Corona.
Doomsayers are forgetting one thing: LA is such a hot market and inventory is so low that the foreigners who brings millions of $$$'s in cash to this country will want to invest it in the only tangible asset that won't lose its value: real estate.
Considering California likely not to reopen in any capacity till mid May, i expect real estate prices to drop like a hammer. Millions are people will be deciding mortgage or food come April and we all know what they will pick. I am thinking almost all lenders will be offering minimum 6 months payment suspension as otherwise foreclosure rate will be crazy. I am in socal and even those that recently went in to escrow failed out as appraisal either came very low or banks are cutting it even further. Basically we are in to long term meltdown
I don't see any evidence of 20% fatality rate due to coronavirus. Where did that figure come from?
I can guess where he pulled that figure from.
Hospitalization rates may approach 20%, but certainly not the death rate.
EDIT: I just heard on the news that we already have about 600 people hospitalized with the coronavirus in southeast Michigan...and the hospitals were near capacity when this started.
Last edited by jackmichigan; 03-25-2020 at 01:33 PM..
Hospitalization rates may approach 20%, but certainly not the death rate.
Any death not resulting from car accident is now assumed to be from COVID-19. Yes i know it's stupid but that probably would explain the number.
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Stories like this are common around here. Take a peak at what these lucky homeowners pocketed:
