SoFi Stadium Opens to Fans While Billionaires Fly Into Space
As we settled into summer and back into fall over the months of July-September, there was plenty happening around our city and country. Finally, after a year’s delay, fans were allowed into Sofi Stadium to cheer on their respective NFL teams, the LA Rams and the LA Chargers. This 5.5-billion-dollar venue did not disappoint as its cutting edge design, plentiful amenities, and the 70,000 sq ft Oculus jumbo screen by Samsung, provide an incredible, one of a kind live experience.
As fans packed their way into the stadium, a few of the world’s richest people, Elon Musk, CEO of both Tesla and Space X, and Jeff Bezos, founder of Amazon, packed themselves into a rocket propelled capsule and were jettisoned into space. Bezos’ flight was automated departing from the Texas desert near El Paso, and 11 minutes. Musk’s flight lifted off from Cape Canaveral, FL and lasted three days with a splash down into the Atlantic Ocean. With Bezos alone having spent 5.5 billion dollars for an 11-minute trip to space, many critics are questioning given the extraordinary impact that money could have in the world, was that a good use of it?
One thing that isn’t being debated is the strength of the current real estate. In the third quarter of 2021, 50,313 homes sold in Southern California, which was a .1% drop over the same period in 2020 and 4.7% lower than the second quarter of this year. For Q3 in Ladera Heights, 72 homes came onto the market and 11 sold. Here is what the numbers look like year over year.
Ladera Heights Market Update Q3 2021
In looking at the year over year numbers, we see the Number of Homes Sold dropped from 14 in 2020 to 11 in 2021, a 15.32% decrease. Another indicator that was down year over year was Days on Market, going from 47 in 2020, to 19 in 2021, a 59.57% decrease. Conversely, there were several numbers that were up year over year. Average Sales Price was up 15.32% going from $1,423,214in 2020 to $1,641,181. Average Sold $/SqFt was also up going from $589.61 in 2020 to $619.93, an 5.14% increase. Lastly, List Price to Sales Price was down 1%, going from 97% in 2020 to 96% in 2021. In summary, these numbers show us that fewer homes sold year over year most likely to the increase in prices, and yet, they sold for more money is less time. This is very indicative to the two markets in comparing the year over year numbers.
The Road Ahead
With less than 75 days remaining in 2021, we are already looking to 2022. For the last two and half months of this year, we will see a continuation of the market we experienced over the last quarter. Threats of increasing rates next year have many buyers finally getting off the fence to take advantage of the historically low cost of borrowing money. This in my opinion is more important, even so, than the price you pay for a home you truly desire. If you’re going to be in the property for at least 7 years, affordable mortgage in place allowing for monthly principal pay down in addition to long-term appreciation through owning real estate, the price you paid today won’t seem as relevant years from now. If you currently own a home in Inglewood, now would be a great opportunity to pull some of that equity off the table and put it to work in a cash-flowing investment property. If you are looking to sell, now is a great time as both prices and demand are high in Ladera Heights and interest rates are still near historic lows.