Monday Market Watch 4/30/2018

Updates from DTLA Real Estate and Finance for April 30th, 2018.

Student Debt Makes Home Buying Virtually Impossible

Student loan debt has become a major barrier to home ownership across the U.S.

83% of those 22-35 blame student debt for not owning a home.

45 million Americans carry student debt with the average borrower owing $30K and 20% owing $100K. Loan payments eat up income, push down credit scores and generally make home ownership impossible.

It is expected that 40% will default on these loans by 2023. Home ownership, the primary source of US wealth, will be out-of-the-question for these Americans.

Mortgage Rates Rise for the 3rd Straight Week

Mortgage rates increased for the third consecutive this week jumping 11 basis points (.11%). They are now at a level not seen since August 22, 2013.

Mortgage applications were at similar levels from the previous week and 11% higher than a year ago.

The refinance share of mortgage activity decreased to 37.2 percent of total applications, the lowest level since September 2008.

Rent Control Headed to November Ballot

California voters will decide if the Costa-Hawkins Rental Housing Act is repealed. Costa-Hawkins excludes buildings built after 1995 from rent control. That allows landlords to bypass rent control laws on these buildings.

If repealed, local municipalities would be able to create their own rent control measures.

Dodger Stadium Aerial Tram Proposed

Plans were submitted to LA for an aerial tram from Union Station to Dodger stadium. The $125 Million project was submitted by Drew McCourt’s company – son of former Dodgers owner Frank McCourt.

Estimates put the ridership cost at less than standard stadium parking; Dodger Dog not included!

Mayor Garcetti called it a “bold idea to ease congestion”.

5 Million in Street Improvements for Little Tokyo

3.1 Million from the California Active Transportation Program (ATP) and $2.2 Million from Proposition C will be dedicated to the area bounded by Temple, Fourth, Main and Alameda.

The plaza by the Japanese American Museum will be widened, cracked sidewalks repaired, new crosswalks, new traffic signals, 104 new trees, improved lighting, new curb ramps, signage installed and a host of other changes will improve accessibility and pedestrian activity.

Councilman Huizar’s DTLA Forward program is spearheading the project. He says it will prepare the community for the future.

Echo Park / Silver Lake Sales Report (March ’18)

SILVER LAKE – 20 sales for $18.807 M | Highest Sale $2.275 M | Average sale $1.413 M
ECHO PARK – 21 sales for $17.962 M  | Highest Sale $1.875 M  | Average sale $855,333