Builders call new-home market ‘unhealthy and unsustainable’

Forced to slow down construction as buyer demand plummets, builders predict lower home starts through 2023.

Single-family home starts dropped in September and were down 5.6% since the beginning of the year, the Commerce Department reported this week. Multifamily construction has dropped 13.2%.

Builders are blaming rapidly rising mortgage rates, ongoing supply chain disruptions, and affordability challenges for the rapid pullback in the new-home market. “High mortgage rates approaching 7% have significantly weakened demand, particularly for first-time and first-generation prospective home buyers,” says National Association of Home Builders chairman Jerry Konter. “This situation is unhealthy and unsustainable".

Can you believe this was the most expensive townhome sold this week in Porter Ranch?!

Here is the most expensive townhome sold this week in Porter Ranch.

Asking price: $699,998

Selling price: $699,000

This home has 3 bed/3 bath, 1,603 sq. ft. of living space, and is on a 3,045 sq. ft. lot.

The townhome is in the guard-gated community of Northridge Estates. They have a community pool, spa, tennis courts, and playground for the residences.

See why this Glendale home is the most unique property for sale this week!

This is the most unique home for sale in Glendale.

Asking price: $5,638,000

This tri-level home has 5 bed/4 bath, 6,056 sq. ft. of living space, and is on an 8,348 sq. ft. lot.

The home features an indoor pool, spa, sauna, BBQ area, and theater with a kitchen.

There is an expansive open deck with unobstructed views of DTLA.

Text me for more info at 818-445-7953.

View the cheapest home sold this week in Sun Valley!

Here is the cheapest home sold this week in Sun Valley.

Asking price: $599,000

Selling price: $550,000

This small cottage has 1 bed/1 bath, 513 sq. ft. of living space, and is on a 9,401 sq. ft. lot.

The property has a large lot with fruit trees and is zoned for horses.

Mortgage demand plummets to lowest level in 25 years

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Source: Forbes

Size up this week's cheapest home sold in Noho! Thoughts?!

Here is the cheapest home sold this week in North Hollywood.

Asking price: $899,000

Selling price: $850,000

This home has 2 bed/2 bath, 1,250 sq. ft. of living space, and is on a 6,623 sq. ft. lot.

The home features a remodeled kitchen, double pane windows, an enclosed patio, and original refinished hardwood flooring.

Does your house earn $123 a day?

If you own a home in Southern California, it’s probably increasing in value every single day. But how much? The New York Times analyzed the last decade of single-family home prices and found that homes in San Jose had a net daily value increase of $266, the highest of any metro area in the country.

Unsurprisingly, California cities took the top four spots on the list with San Francisco ranking second at $208, Anaheim ranking third at $146, and L.A. ranking fourth at $123.

See this fully renovated home that just sold in Mid-City, Los Angeles!

Here is the cheapest home sold this week in Mid-City LA.

Asking price: $795,000

Selling price: $775,000

This home has 3 bed/2 bath, 1,265 sq. ft. of living space, and is on a 2,000 sq. ft. lot.

The fully renovated home has a new kitchen, bathrooms, windows, flooring, mini-split AC, electrical, plumbing, etc.

It is close to Midtown Crossing shopping center and just minutes from K-Town, DTLA, West Hollywood, and Beverly Hills.

Get ready for a ton of multi-units to hit the LA market

I have reached out to a ton of multi-unit property owners to see if they are interested in selling. The #1 response I get from the owner is that they can’t sell because their tenant stopped paying rent, they refuse to vacate the property, and the owner is not allowed to evict them. No one wants to buy a property where you have to take over that type of situation.

Looks like changes are coming soon.

Los Angeles County will move forward with a plan to lift its pandemic-era eviction moratorium and other renter protections by the end of the year, according to a 3-2 vote Tuesday by the Board of Supervisors.

The county’s moratorium, which took effect in March 2020, has protected tenants against evictions for nuisance, unauthorized occupants, and not providing entry to landlords.

With the eviction moratorium coming to an end, I’m predicting a huge increase in multi-unit properties hitting the market in 2023.

Newhall’s cheapest home sold this week is a perfect starter home! LOOK!

Here is the cheapest home sold this week in Newhall.

Asking price: $599,900

Selling price: $625,000

This starter home has 2 bed/1 bath, 900 sq. ft. of living space, and is on a 5,454 sq. ft. lot.

The home has hardwood floors throughout, stainless steel appliances in the kitchen, and a newly remodeled bathroom.

43.4% of sellers have reduced their asking price

The share of Realtors who have seen home sellers reduce their price to attract buyers increased for the fifth consecutive month to 43.4%.

The share of buyers expecting lower prices also has more than doubled from 32% in April 2022 to 78% in September 2022.

Source: Latest California Association of Realtors monthly member sentiment survey

Would you pay $800k for this Highland Park home?!

Here is the cheapest home sold this week in Highland Park.

Asking price: $799,500

Selling price: $800,000

This 2-story home has 3 bed/2 bath and 1,066 sq. ft. of living space.

The home features new paint, updated flooring, and original wood stairs.

The Warehouse style garage includes an attached storage or workshop room, high ceilings, and an original oil pit for at-home car repairs.

A bowling alley and screening room and salon... OH MY! "The Manor" could be yours for $165M!

This is the most expensive home for sale in all of Los Angeles right now!

Asking price: $165,000,000

This gated, private home has 14 bed/27 bath, 56,500 sq. ft. of living space, and is on 4.68 acres.

"The Manor" features a bowling alley, beauty salon, library, screening room, billiards room, gym, wine cellar, and more.

The resort-like grounds have a caliber pool, spa, tennis court, vast lawns, and formal gardens.

Text me if you want a tour at 818-445-7953.

LA home prices in July slipped 4.3% from June

Price corrections are coming to housing markets across the United States, Black Knight said following July’s home price decline from June.

San Jose, California saw the most significant pullback, with the average home price now down 10% in recent months, followed by:

Seattle, Washington (-7.7%)

San Francisco (-7.4%)

San Diego (-5.6%),

Los Angeles (-4.3%)

Denver, Colorado (-4.2%).

Source: Black Knight, a software, data and analytics company.