Deutsche Bank predicts US recession in 2023

13 years ago, when many of the homes on the market were bank-owned, I remember looking up for my clients which bank owned the property I was about to show them. The one name that kept coming up was "Deutsche Bank". I could not believe how many foreclosures they were stuck with at that time. Since they know a thing or two about recessions, I advise you to take their opinion into consideration.

"We no longer see the Fed achieving a soft landing," Deutsche Bank economists led by Matthew Luzzetti said in the analyst note. "Instead, we anticipate that a more aggressive tightening of monetary policy will push the economy into a recession."

This Echo Park Spanish bungalow sold WAY OVER the asking price! Take a look.

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

Asking price: $899,000

Sold price: $1,255,000 ($356,000 over the asking price)

This renovated Spanish bungalow has 2 bed/2 bath, 828 sq. ft. of living space, and is on a 4,280 sq. ft. lot.

The property is close to hiking trails, the LA River bike path, and the historic “hidden stairs".

Fewer buyers searching for a home

In Los Angeles County, the median price increased last month to $781,050, up from $773,490 in February and $689,440 a year ago — a year-to- year increase of 13.3%.

While sales remained solid, there are signs that imply a market slowdown could be forth coming in the second half of 2022. A quarterly report released by National Association of Home Builders suggests that fewer buyers were trying to find a home to buy in the first quarter of this year. The share of prospective buyers who were actively searching declined to 46% in Q122, back to pre-pandemic levels after reaching a recent peak of 61% in Q221.

For those who had not been successful in finding a home, the share who plan to give up their home search until next year or later rose for the third straight quarter to 25% in Q122, after bottoming out at 20% in Q221.

Higher mortgage rates and double-digit growth in home prices are slowing down the housing demand momentum and the effect may become evident very soon.

Source: California Association of Realtors.

Loft for sale in the unique, Art Deco Eastern Columbia Building in DTLA!

This is the most unique property for sale this week in DTLA.

Asking price: $1,399,000

This live/work loft has 1 bed/2 bath, and 1,540 sq. ft. of living space.

The loft is located in The Art Deco Eastern Columbia Building, built in 1930 and was originally a department store.

Johnny Depp could be your neighbor. He bought 5 penthouses in 2007, totaling a combined 11,500 square feet.

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

Fan of "Gone With The Wind"?! Then this might be the home for you!

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

"Hot Home” alert in Sun Valley.

Asking price: $1,995,000

This "Gone with the Wind" inspired home has 5 bed/5 bath, 5,359 sq. ft. of living space, and is on over an acre of flat land.

The entertainer's backyard has a covered patio, swimming pool, spa, and a large barn that is approximately 2,400 sq. ft.

“Frankly, my dear, I don't give a damn.”

5 offers per home sold

On average, there were nearly five offers for every home sold in February, higher than in recent months, according to the February 2022 REALTORS® Confidence Index Survey. Real estate professionals who were surveyed reported more than five offers, on average, in Massachusetts, Georgia, Texas, Colorado, Utah, Washington, and California.

Nationwide, 48% of buyers’ offers were above the list price, according to NAR’s data. On average, those offers were about 2.9% above the list price; on the median-priced home, that would be about $10,000 over the asking price. However, 13% of the offers were 10% above the list price.

Real estate pros report that in general their buyers typically lose two homes before succeeding on the third try, according to the study.

Homes are selling quickly under the intense competition. Eighty-four percent of listings were on the market for less than a month.

“Competition could intensify in 2022 before waning in 2023 as home buyers compete to lock in at the current rates,” Gay Cororaton, a research economist for NAR, writes on the association’s blog. “Mortgage rates may rise more steeply in 2023.”

Source: “February 2022 REALTORS® Confidence Index Survey: Buyer Competition Intensifies to 5 Offers Per Home Sold,” National Association of REALTORS® Economists’ Outlook blog (March 18, 2022)