Our neighborhood, DTLA, has been on virtual lockdown for more than 40 days and we can feel the real estate market slow down in a big way. Having some time to analyze the real estate market since the start of Safer at Home mandates, when comparing it to the same period last year using MLS statistics, the info is telling us DTLA condo sellers haven’t quite given up yet.
Hopefully, you and your family are staying safe and feeling healthy. We’ve never seen anything like this before and our future seems a little uncertain at the moment. Watching the news and hearing stories from close friends and family across the country and around the globe there are a few things that come to mind.
Safety – Safety for our loved ones, our BHHS DTLA team, our extended family in the DTLA community and people around the world. We realize that people still need to trade real estate even in crisis and if there is something that we can do to assist you in safer showings or smart marketing for your listing please reach out. We are sanitizing each property we show before clients enter and again once the clients leave to ensure we are taking a proactive approach to safety when essential inspections are required.
Mitigating any risk or losses – If you’ve watched the news over the past few weeks there is a lot of confusion in the global financial markets and our local neighborhoods. In my experience, there are two types of people in times of crisis: those people who are panicking and freaking out OR people like us who keep reaching out and looking to help. We must continue to be that “rock” that our loved ones need in times like these. In politics they say, “as California goes, so goes the country”, and our recovery from Covid-19 will be no exception because we will recover from this.
Getting ready to get back to normal – Unlike the 2008 financial crisis, our economy is steadily underwritten and stimulus packages have been immediately implemented. Unlike the 9/11 tragedy, we are not at war with any foreign enemy. This is a global health issue that has acted as a detour for the entire economy no doubt but it is just that, an unplanned detour.
Our neighborhood, DTLA, has been on virtual lockdown for more than 30 days at the time of this writing and we can feel the real estate market slow down in a big way even though the reported figures haven’t shown it yet. BHHS DTLA had some time to analyze the real estate market since the start of SIP and compare it to the same period last year using MLS statistics and the findings are very telling
Between March 14th and April 13th 2019 there were 29 successful closings of DTLA condos with only 7 sellers pulling their property off the market and failing to sell because of overpricing, poor marketing or the inability to show prospective buyers the unit.
During the same period in 2020, during Covid-19/SIP, we have had 32 closings in 2020 which is a 10% increase year over year but we also show a massive 300%+ increase of properties coming off the market during the same period. Most of the 23 properties that came off the market during this period in 2020 have been not been canceled listings but listings placed on “Hold Do Not Show” status in the MLS. This tells us that these DTLA condo sellers haven’t given up on trading the property, they are just waiting like everybody else for the economy to reopen to forge ahead with their plans.
Although, normal business has paused for many due to Covid-19 and Shelter In Place (SIP), demand was at an all-time high before the crisis. Take this time to get your business ready for the massive rush of consumers heading your way once the economy is re-opened. We are Angelinos who move forward and persevere.