Three percent may not sound like much, but let’s take it to some real numbers so you understand what this means in dollars and cents. If a property was worth $600,000 in 2013, then it was worth $618,000, average, in 2014. It a loft was worth $800,000 in 2013, then within a year, the value went up $24,000 to $824,000.
What does that mean? If you’re sitting on the sidelines and want to buy in DTLA – don’t. Prices are ticking up, and while the average may show a 3% increase, I can tell you first-hand about clients who’ve sold and made a 333% profit on their original down payment in 2 years. Another client sold their unit within a year-and-a-half and they had a $125,000 profit to help them move on to their next home. It all depends on the building, the unit, and if it’s a nice unit, it will go into multiple offers.
My last 4 listings in DTLA — all within the last 6 months — all went into multiple offers. The last DTLA offer I wrote — 2 days ago — had 3 offers and this is in the $800,000 range.
So here’s some advice for those of you looking to make your DTLA move this year: if you like the unit, make an offer immediately. If you like the unit and there are multiple offers, write at list price or more.
For you statistical types, here are the numbers for you to crunch: